Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Any city or town which accepts the provisions of this act, is hereby authorized, subject to the approval of the commissioner of revenue, to design and designate a place on its municipal tax bills, or the motor vehicle excise tax bill, whereby the taxpayer of said city or town can voluntarily checkoff, donate, and pledge an amount not less than one dollar or such other designated amount which shall increase the amount otherwise due, and to establish a city or town scholarship fund, the purpose of said fund shall be to provide educational financial aid to deserving city and town residents. Said fund shall be under the jurisdiction of the city or town treasurer or the board of selectmen acting for and in behalf of the city or town, and all monies which are collected as a result of the voluntary checkoff shall be transferred to the principal of said fund, and the city or town treasurer shall be the custodian of the fund and may deposit the proceeds in a bank or invest the same in such securities as are legal for the investment of funds of savings banks under the laws of the commonwealth or in federal savings and loan associations situated in the commonwealth. In any city or town establishing a scholarship fund, there shall be a scholarship committee to consist of the superintendent of schools, or his designee, and no fewer than five residents of the city or town appointed to a three-year term by the board of selectmen.