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 town of Lee may appropriate in each fiscal year an amount not exceeding one-twelfth of one-half 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 Lee's Liability Insurance Fund; provided, however, that no such appropriation may be made in any fiscal year when the aggregate amount in said fund equals or exceeds one-half of one percent of such equalized valuation. Any interest earned on the amount appropriated to said fund shall be added to and become part of said fund.
The treasurer of said town shall be the custodian and administrator of said fund and may deposit or invest said fund in such manner as may be lawful under the provisions of section fifty-four of said chapter forty-four for the investment of municipal trust funds.
Said treasurer shall pay from the amount in said fund, including the interest thereon, said amounts as the board of selectmen of said town shall determine, upon the favorable recommendation of the town counsel, to be necessary from time to time to settle 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. Not more than ten thousand dollars may be expended for any claim under this act without appropriation. Said treasurer shall, subject to appropriation, pay from the amount in 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. Any amount in said fund which is not paid out by said town treasurer in accordance with this act which remains in said fund at the end of a fiscal year shall be added to said fund to be paid out by said town treasurer in subsequent years in accordance with this act.
SECTION 2. This act shall take effect upon its passage.