1.  Fund established.  The Municipal Shoreline Protection Legal Fund, referred to in this section as "the fund," is established within the department to provide financial assistance to municipalities that have incurred or expect to incur legal costs in pursuing shoreland zoning violations. The fund consists of money received from any public or private source, including, but not limited to, any monetary penalties deposited in the fund in accordance with section 480‑R, subsection 1. The fund must be held separate and apart from all other money, funds and accounts. Interest earned by the fund must be credited to the fund. Any unexpended balances remaining in the fund at the end of any fiscal year do not lapse and must be carried forward to the next fiscal year.  

2.  Administration; use of money in fund.  The department shall administer the fund. In accordance with rules adopted by the department pursuant to subsection 4, the department shall use money in the fund to provide financial assistance to municipalities that have incurred or expect to incur legal costs in pursuing shoreland zoning violations. The department may use money in the fund to cover the department's actual costs incurred in administering the fund.  

3.  Reimbursement.  In accordance with rules adopted by the department pursuant to subsection 4, a municipality that receives financial assistance from the fund under subsection 2 may be required to reimburse the fund following the settlement or final adjudication of the legal claim for which the financial assistance was received.  

4.  Rules.  The department shall adopt rules necessary for the implementation and administration of the fund, including, but not limited to, rules establishing standards for the provision of financial assistance from the fund to a municipality pursuant to subsection 2 and rules establishing standards for municipal reimbursement of financial assistance received from the fund pursuant to subsection 3. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.