(i) Retain counsel to represent it in legal matters that affect the board; and

(ii) Contract for the payment of a reasonable fee to the counsel.

(2) Funds for these fees shall be included in the annual budget.

(b) (1) Each county board may pay all or part of the counsel fees for the defense of a county board member who is involved in litigation because of his service and in his official capacity on that board.

(2) Payments made under paragraph (1) of this subsection are a valid educational expense.

(c) (1) In any suit or claim brought against a principal, teacher, school security guard, or other agent or employee of a county board by a parent or other claimant with respect to an action taken by the agent or employee, the board shall provide for counsel for that individual if:

(i) The action was taken in the performance of his duties, within the scope of his employment, and without malice; and

(ii) The board determines that he was acting within his authorized official capacity in the incident.

(2) The counsel required by this section may be provided through the office of the county attorney or city solicitor.

(3) This subsection does not require a county board to provide or reimburse the cost of counsel to a plaintiff or claimant in a suit or claim against a county board or its members, agents, or employees.