Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Notwithstanding any general or special law to the contrary, the town of Blackstone may establish a Capital Investment Fund for safekeeping and investment of a portion of the proceeds received by the town from the American National Power Company, in this act called ANP, pursuant to a payment in lieu of taxes agreement, entered into between the town and ANP on April 2, 1998, in this act called the PILOT agreement.

SECTION 2. The town shall deposit with the town treasurer 90 per cent of all proceeds received by the town from ANP through the PILOT agreement to be held in the Capital Investment Fund, in this act called the fund. Interest on funds so deposited and held shall remain with and become part of the fund and may be expended as part of the fund in accordance with this act. The remaining proceeds received by the town from ANP shall be deposited in the General Fund of the town.

SECTION 3. The town treasurer shall be the custodian of the fund and may deposit the proceeds in national banks or invest the proceeds by deposit in savings banks, cooperative banks or trust companies organized under the laws of the commonwealth, or invest the proceeds in such securities that 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.

SECTION 4. Monies contained in the fund may be appropriated by two-thirds vote at an annual or special town meeting. Monies in the fund may be appropriated for any purpose for which the town may incur debt under sections 7 and 8 of chapter 44 of the General Laws, excluding those purposes provided for in clauses (1) and (2) of section 8 of said chapter 44, and to pay the debt service for those purposes. Monies in the fund may be transferred into a stabilization fund established by the town under section 5B of chapter 40 of the General Laws by a two-thirds vote at an annual or special town meeting. Monies may be transferred from such a stabilization fund to the Capital Investment Fund by a two-thirds vote at an annual or special town meeting.

SECTION 5. Funds deposited in the fund may be expended for emergency purposes by vote of the board of selectmen and with written approval of the director of accounts of the department of revenue under section 31 of chapter 44 of the General Laws.

SECTION 6. The capital outlay committee shall operate in an advisory capacity to the town meeting. It shall consider matters relating to appropriations from the fund. It shall make recommendations to the town or to any board, committee or official of the town, relative to such matters, shall establish policies relative to the funding of capital projects of the town, and shall set priorities and schedules for such capital projects.

SECTION 7. This act shall take effect upon its passage.