SECTION 1. (a) Notwithstanding section 53 of chapter 44 of the General Laws or any other general or special law to the contrary, the town of Conway may establish a special fund for the deposit of any proceeds from the annual festival of the hills, any state, federal or other grants and any local appropriations for such purpose. Interest earned on the fund shall be treated as general fund revenue for the town. Any balance remaining at the end of the fiscal year shall carry over to the next fiscal year and thereafter if not then expended for the purposes set forth in this act.

(b) Proceeds from the fund shall be used at the discretion of the festival of the hills committee of the town of Conway without further appropriation: (1) to pay all expenses for the festival of the hills event in the town of Conway; (2) thereafter a portion or all of the remaining net balance in the fund in any given year may be expended at the discretion of the festival of the hills committee as scholarship grants to graduating high school seniors in the town of Conway to further their education or training; provided that, no funds received pursuant to local appropriation shall be used for scholarship purposes; and (3) any remaining balance to be used for the purposes set forth above.

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