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NO. 3. AN ACT RELATING TO THE VERMONT VETERANS' HOME.

(H.543)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. VERMONT VETERANS' HOME; PAYMENT RATES

Notwithstanding any other provision of law, beginning on April 1, 1999, or such other later date as will assure the receipt of federal matching funds, payment rates for Medicaid services provided to Vermonters in the Vermont Veterans' Home shall be determined retrospectively by the division of rate setting based on the reasonable and necessary budgeted costs of providing those services. The secretary of human services may adopt emergency rules to implement the provisions of this section.

Sec. 2. CONTRACTS; INDEMNIFICATION CLAUSE

The following language may be included in any contract for the management of the Vermont Veterans' Home:

Indemnification of Contractor. Whereas the Contractor has undertaken the temporary management of the facilities of the Veterans' Home at the specific request of the state due to deficiencies identified by the state in the current operation of such facilities, the state shall indemnify, defend and hold harmless the Contractor and its officers and employees, including their successors and assigns, from any liability and any claims, suits, judgments or damages which arise out of conditions or deficiencies which existed at the Home prior to the date of this contract. It is expressly intended that the state indemnify and hold harmless the Contractor for all events or circumstances relating to the operation of such facilities or the conduct of business of the facilities that occurred or existed prior to the date of this contract, regardless of whether the claim with respect to such events or circumstances is asserted or arose before or after the date of this contract and regardless of whether or not the contractor provided service to the claimant (or the claimant's heirs, administrators, executors or assigns) after the date of this contract. The state's indemnification of the Contractor shall not apply to any liability, suits, claims or judgments arising primarily as a result of the Contractor's acts or omissions in the performance of this contract.

Sec. 3. EFFECTIVE DATE

This act shall be effective from the date of passage and shall be repealed on July 1, 2000.

Approved: April 6, 1999