AN ACT ESTABLISHING A LIABILITY INSURANCE FUND IN THE TOWN OF ROCKPORT.
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, rule or regulation to the contrary, the town of Rockport 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 Town of Rockport
Liability Insurance Fund. Any interest earned on the amount appropriated to
said fund shall be added to and become part of said fund.
The trust fund agent who shall be the town treasurer, shall
be the custodian and administrator of said fund.
Said trust fund agent shall pay from the amount in said fund including the
interest thereon, for properly authorized settlements of
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.
Said trust fund agent shall, subject to appropriation, pay from the amount of
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.
SECTION 2. Upon recommendation of the board of selectmen and approval
of the town meeting of said
town, 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 board of selectmen, regulations
and guidelines concerning disbursements from the combined fund may be
SECTION 3. This act shall take effect upon its passage.