SECTION 1. (a) Notwithstanding section 53 of chapter 44 of the General Laws or any other general or special law to the contrary, the city of New Bedford shall establish in the city treasury an Arts, Culture and Tourism Promotion Fund. Receipts constituting a portion of the total local room occupancy tax received by the city pursuant to section 3A of chapter 64G of the General Laws shall be deposited into the fund in accordance with subsection (b) as well as any grants, gifts or donations made to the city of New Bedford in furtherance of the purposes of this act.

(b) The city shall annually deposit not more than 50 per cent of the local room occupancy tax revenue into the Arts, Culture and Tourism Promotion Fund.  In the first year after the establishment of the fund, not more than $100,000 shall be deposited into the fund and future allocations shall be adjusted annually in proportion to the prior year’s average consumer price index, as measured by the Bureau of Labor Statistics all items index.  All interest earned from the fund shall be treated as general fund revenue of the city of New Bedford.

(c) Upon the recommendation of the mayor of the city of New Bedford and upon the majority vote of the city council, the city may appropriate money into the fund to promote the city’s artistic and cultural assets and to attract tourists to the city.  All funds appropriated to the fund shall be utilized only for these purposes.  The city shall not use proceeds of the fund to pay personnel costs in the city’s tourism and marketing department.  The city’s chief financial officer shall forward to the mayor and city council a report of the fund on the cash basis not later than 90 days after the end of the fiscal year.

SECTION 2. This act shall take effect upon its passage.