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 to the contrary, the city of Beverly 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 City of Beverly Liability Insurance Fund. Any interest earned on the amount appropriated to said fund shall be included to and become part of said fund.
The commissioners of trust funds shall be the custodian and administrator of said fund.
Said commissioners of trust funds shall pay from the amount in said fund, including the interest thereon, such amounts as the mayor and board of aldermen for said city determines to be necessary from time to time to settle claims against said city and to cover costs of defending said city against such claims including without limitation the costs of employing legal counsel, court costs and filing fees. Said commissioners of trust funds shall, subject to appropriation, pay from the amount in the fund, including the interest thereon, such amounts as the mayor and board of aldermen shall determine are necessary to effect insurance to protect said city against some or all of such claims.
SECTION 2. Upon recommendation of the mayor and approval of the board of aldermen, 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 mayor and approval of the board of aldermen, regulations and guidelines concerning disbursement from the combined fund may be established.
SECTION 3. This act shall take effect upon its passage.