SECTION 1. For the purpose of this act the following words shall have the following meanings:-

“Bank”, a national bank, trust company or banking company.

“Employee”, a person employed by the University of Massachusetts at Amherst and a member of the collective bargaining units represented by the unions.

“Employer”, the University of Massachusetts at Amherst.

“Labor-Management Workplace Education Program” or “program”, the joint labor and management educational partnership between the University of Massachusetts at Amherst and the employee unions.

“Union”, the American Federation of State, County and Municipal Employees Council 93 and its affiliated local American Federation of State, County and Municipal Employees Local 1776; the Massachusetts Teachers Association and its affiliated associations, the University Staff Association, and the Professional Staff Union, Unit B.

SECTION 2. (a) There shall be at the University of Massachusetts at Amherst a trust fund to be known as the Labor-Management Workplace and Education Trust Fund, hereinafter referred to as the “fund,” to support the operations and activities of the University of Massachusetts Labor-Management Workplace Education Program.

(b) The fund shall be overseen by a board of trustees, hereinafter referred to as the “board,” which shall consist of 6 members: 3 of whom shall be selected by the employer and 3 of whom shall be selected by the union; provided however, that no 2 union board members shall be from the same union. The board shall be co-chaired by 2 of the trustees, 1 selected by the employer trustees and 1 selected by the union trustees. The trustees shall be responsible for depositing all contributions, including, but not limited to, employer contributions, donations, funds, stocks, share certificates, bonds, securities and all other obligations in a bank selected by the board in compliance with section 34 of chapter 29 of the General Laws.

(c) The trustees shall use all funds exclusively in support of the program; provided, that the board may make appropriations necessary to administer the fund, including the employment of administrative, legal, accounting, expert, consultative and clerical assistance, the purchase or lease of buildings or land, and the purchase or lease of materials, supplies, and equipment the trustees determine necessary in the performance of their duties. The trustees shall serve without compensation but may be reimbursed for all reasonable and necessary expenses which they may incur in the performance of their duties.

(d) The trustees shall keep true and accurate books of accounts and records of all transactions of the fund and shall cause said books to be audited by a certified public accountant each fiscal year. The accountant shall be made available to the employer and the union and shall submit a final audit in writing to the trustees. Any employee or beneficiary shall be permitted to inspect the books and records maintained by the trustees; provided, that the request is at a reasonable time and place as determined by a majority of the trustees and that the inspection does not interfere with the operation of the fund.

(e) If a civil action is brought against a trustee the trustee shall be indemnified for all expenses incurred in the defense of the action and shall be indemnified for damages if the claim arose out of acts performed by the trustee while acting within the scope of the trustee’s official duties; provided, however, that a trustee shall not be indemnified for expenses incurred in the defense of an action, or damages awarded in an action, in which there is shown to be a breach of fiduciary duty, an act of willful dishonesty or an intentional violation of law by the trustee. Such indemnification shall be paid from amounts held in the fund.