Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Notwithstanding the provisions of any general or special law, rule or regulation to the contrary, the town of Rockport may appropriate in each fiscal year an amount not exceeding one-twentieth of one percent of its equalized valuation as defined in section one of chapter forty-four of the General Laws to establish and maintain a special fund to be known as the Town of Rockport Liability Insurance Fund. Any interest earned on the amount appropriated to said fund shall be added to and become part of said fund.
The trust fund agent who shall be the town treasurer, shall be the custodian and administrator of said fund.
Said trust fund agent shall pay from the amount in said fund including the interest thereon, for properly authorized settlements of claims against the said town and to cover the costs of defending said town against such claims including without limitation the costs of employing legal counsel, court costs and filing fees. Said trust fund agent shall, subject to appropriation, pay from the amount of the fund, including the interest thereon, such amounts as the board of selectmen of said town shall determine are necessary to effect insurance to protect said town against some or all of such claims.
SECTION 2. Upon recommendation of the board of selectmen and approval of the town meeting of said town, the fund established in section one may be combined with the funds established pursuant to sections thirteen and thirteen A of chapter forty of the General Laws and such resulting fund may be used for all purposes set forth in said sections thirteen and thirteen A; provided, however, that no monies from the combined fund shall be used to restore municipal buildings damaged or destroyed by fire. Upon recommendation of the board of selectmen, regulations and guidelines concerning disbursements from the combined fund may be established.
SECTION 3. This act shall take effect upon its passage.