SECTION 1. (a) Notwithstanding any general law or special law to the contrary, any receipt of funds for settlement of claims for actual or potential pollution to a town or district water supply, may be classified as a trust fund and invested in accordance with the prudent investor rule as defined in sections 3, 4, 5, 8, 9 and 10 of chapter 203C of the General Laws. Such classification shall be by a majority vote of the voters at the next annual town or district meeting subsequent to the receipt of the funds.
(b) Nothing in this act shall prevent the pooling of multiple settlements for different pollution causes into a single or common trust fund and nothing herein shall prevent that trust fund from being used to abate all pollution causes.
SECTION 2. (a) If a municipality or district has voted for trust fund status of any receipts as provided in section 1, at each annual town or district meeting thereafter, the elected officials of the town or district shall report to the voters on the status of the pollution causing the trust fund to be established.
(b) If at any subsequent annual town or district meeting the town or district reports that all pollution for which the trust was established to abate has been eliminated or all the funds in the trust fund have been appropriated for that purpose, then the trust shall be dissolved and any funds remaining in the trust shall be paid to the treasurer of the town or district for deposit into the town's or district's general fund.
SECTION 3: If a town or district has adopted trust-fund-like-treatment of any historical receipts, then voters shall affirm that trust fund status at the next annual meeting, pursuant to this act. Failure to obtain voter approval shall cause the funds to be reverted to the general fund of the town or district.
SECTION 4: If a town or district adopts trust fund treatment hereunder, it shall also develop a written investment policy; provided, however, that if the funds are in excess of $100,000, the town or district shall engage an external investment manager to manage the funds.
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