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H 4293

Zoning

2025-2026 Regular Session Introduced by Thomas Beach and 6 co-sponsors

Hopkinton would create an Economic Development Special Revenue Fund using local meals tax receipts to fund economic development projects, operations, and administration.

Member(s) request name added as sponsor: White, Kilmartin, Edgerton, Beach
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Bill Summary · H 4293

Summary — H.4293 (House) — “An Act establishing an economic development special revenue account for the town of Hopkinton”

Status: Introduced July 17, 2025 (sponsor: Rep. James C. Arena‑DeRosa). Bill received local approval; committee hearings and floor actions listed (hearing scheduled 07/29/2025; subsequent readings and actions through October 2025).

Purpose

Authorize the town of Hopkinton to create a dedicated special revenue fund — the Economic Development Special Revenue Fund — to receive and manage the town’s local meals tax receipts for the purpose of supporting economic development activities, projects, operations and administration.

Key provisions

  • Authority to establish fund
    • Hopkinton shall establish in the town treasury a special revenue account named the Economic Development Special Revenue Fund (notwithstanding section 53 of chapter 44 or other laws to the contrary).
  • Funding source and timing
    • Beginning with the fiscal year starting July 1, 2026 and for each fiscal year thereafter, the amount of the local meals tax collected by Hopkinton under subsections (b) and (c) of section 2 of chapter 64L shall be credited to this fund.
  • Permitted uses
    • Money in the fund may be used to support economic development projects, activities, operations and administration intended to stimulate growth, attract/retain businesses, and improve infrastructure.
  • Appropriation
    • Funds are subject to further appropriation by a majority vote of the town meeting.
  • Interest
    • Any interest earned on amounts on deposit in the fund shall be credited to the town’s general fund.
  • Preservation of state distributions
    • The act does not affect amounts the town receives from the state Local Aid Fund.
  • Revocation / closure mechanics
    • If the town revokes acceptance of the local meals tax (by majority vote under section 4B of chapter 4), the town must then vote by a 2/3 town‑meeting vote whether the special fund shall cease:
    • If 2/3 vote to cease: all unexpended/uncommitted balances are credited to the general fund on the first day of the calendar quarter following 30 days after the vote.
    • If 2/3 vote not to cease: the fund continues and balances remain subject to appropriation by majority vote of town meeting.
    • The town may also close the fund directly by a 2/3 town‑meeting vote; that vote must (i) declare the fund ceased, (ii) direct immediate transfer of all unexpended/uncommitted balances to the general fund, and (iii) direct that future local meals tax receipts be credited to the general fund.
  • Reporting
    • The town treasurer must provide an annual financial report (publicly posted by October 1 each year) while the fund exists. The report must show: (i) fund revenues; (ii) fund receipts; (iii) amounts of grants made from the fund; (iv) amounts and recipients of loans made from the fund; and (v) the year‑end fund balance.
  • Effective date
    • The act takes effect upon passage.

Who is affected

  • Town of Hopkinton: gives the town authority to reserve its local meals tax receipts for economic development rather than general appropriation.
  • Local taxpayers/restaurant patrons: the local meals tax remains in place but receipts are routed into a dedicated fund.
  • Town meeting voters: appropriation, revocation, and closure actions require specified majority or supermajority votes.
  • Town administration (treasurer, economic development offices): responsible for fund accounting, reporting, and program administration.

Fiscal and operational impact (summary)

  • Redirects local meals tax receipts (beginning FY 2027 if FY starts July 1, 2026) into a restricted-use fund, potentially increasing dedicated resources for economic development projects while reducing the portion of the general fund available for other municipal purposes (interest still flows to the general fund).
  • Requires ongoing annual public reporting by the treasurer to increase transparency of expenditures, grants, and loans made from the fund.

Procedural / timeline notes

  • Applies to receipts starting with the fiscal year that begins July 1, 2026.
  • Annual report due publicly by October 1 each year while the fund exists.
  • Multiple town‑meeting action thresholds: majority for appropriations, majority (section 4B) to revoke local meals tax acceptance, and 2/3 to close the fund or to decide that the fund ceases after revocation.

Other

  • This is local legislation specific to the town of Hopkinton. The bill explicitly preserves state Local Aid Fund distributions and specifies treatment of fund interest. Related file: HD 4921 (replaces).

Compiled from official sources — confirm details with the bill’s official record.

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