HF 586

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:39am

A bill for an act
relating to transportation; defining volunteer driver; making technical and
conforming corrections; amending Minnesota Statutes 2020, sections 65B.15,
subdivision 1; 65B.43, subdivision 12; 65B.472, subdivision 1; 174.29, subdivision
1; 174.30, subdivisions 1, 10; 221.031, subdivision 3b; 256B.0625, subdivision
17.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 65B.15, subdivision 1, is amended to read:

Subdivision 1.

Grounds and notice.

No cancellation or reduction in the limits of liability
of coverage during the policy period of any policy shall be effective unless notice thereof
is given and unless based on one or more reasons stated in the policy which shall be limited
to the following:

1. nonpayment of premium; or

2. the policy was obtained through a material misrepresentation; or

3. any insured made a false or fraudulent claim or knowingly aided or abetted another
in the presentation of such a claim; or

4. the named insured failed to disclose fully motor vehicle accidents and moving traffic
violations of the named insured for the preceding 36 months if called for in the written
application; or

5. the named insured failed to disclose in the written application any requested information
necessary for the acceptance or proper rating of the risk; or

6. the named insured knowingly failed to give any required written notice of loss or
notice of lawsuit commenced against the named insured, or, when requested, refused to
cooperate in the investigation of a claim or defense of a lawsuit; or

7. the named insured or any other operator who either resides in the same household, or
customarily operates an automobile insured under such policy, unless the other operator is
identified as a named insured in another policy as an insured:

(a) has, within the 36 months prior to the notice of cancellation, had that person's driver's
license under suspension or revocation because the person committed a moving traffic
violation or because the person refused to be tested under section 169A.20, subdivision 1;
or

(b) is or becomes subject to epilepsy or heart attacks, and such individual does not
produce a written opinion from a physician testifying to that person's medical ability to
operate a motor vehicle safely, such opinion to be based upon a reasonable medical
probability; or

(c) has an accident record, conviction record (criminal or traffic), physical condition or
mental condition, any one or all of which are such that the person's operation of an automobile
might endanger the public safety; or

(d) has been convicted, or forfeited bail, during the 24 months immediately preceding
the notice of cancellation for criminal negligence in the use or operation of an automobile,
or assault arising out of the operation of a motor vehicle, or operating a motor vehicle while
in an intoxicated condition or while under the influence of drugs; or leaving the scene of
an accident without stopping to report; or making false statements in an application for a
driver's license, or theft or unlawful taking of a motor vehicle; or

(e) has been convicted of, or forfeited bail for, one or more violations within the 18
months immediately preceding the notice of cancellation, of any law, ordinance, or rule
which justify a revocation of a driver's license; or

8. the insured automobile is:

(a) so mechanically defective that its operation might endanger public safety; or

(b) used in carrying passengers for hire or compensation, provided however that the use
of an automobile for a car pool new text begin or a private passenger vehicle used by a volunteer driver as
defined under section 65B.472, subdivision 1, paragraph (h), new text end shall not be considered use of
an automobile for hire or compensation; or

(c) used in the business of transportation of flammables or explosives; or

(d) an authorized emergency vehicle; or

(e) subject to an inspection law and has not been inspected or, if inspected, has failed
to qualify within the period specified under such inspection law; or

(f) substantially changed in type or condition during the policy period, increasing the
risk substantially, such as conversion to a commercial type vehicle, a dragster, sports car
or so as to give clear evidence of a use other than the original use.

Sec. 2.

Minnesota Statutes 2020, section 65B.43, subdivision 12, is amended to read:

Subd. 12.

Commercial vehicle.

"Commercial vehicle" means:

(a) any motor vehicle used as a common carrier,

(b) any motor vehicle, other than a passenger vehicle defined in section 168.002,
subdivision 24, which has a curb weight in excess of 5,500 pounds apart from cargo capacity,
or

(c) any motor vehicle while used in the for-hire transportation of property.

Commercial vehicle does not include a "commuter van," which for purposes of this
chapter shall mean a motor vehicle having a capacity of seven to 16 persons which is used
principally to provide prearranged transportation of persons to or from their place of
employment or to or from a transit stop authorized by a local transit authority which vehicle
is to be operated by a person who does not drive the vehicle as a principal occupation but
is driving it only to or from the principal place of employment, to or from a transit stop
authorized by a local transit authority new text begin , new text end or for personal use as permitted by the owner of the
vehicle new text begin , or a private passenger vehicle driven by a volunteer driver new text end .

Sec. 3.

Minnesota Statutes 2020, section 65B.472, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless a different meaning is expressly made applicable,
the terms defined in paragraphs (b) through (g) have the meanings given them for the
purposes of this chapter.

(b) A "digital network" means any online-enabled application, software, website, or
system offered or utilized by a transportation network company that enables the
prearrangement of rides with transportation network company drivers.

(c) A "personal vehicle" means a vehicle that is used by a transportation network company
driver in connection with providing a prearranged ride and is:

(1) owned, leased, or otherwise authorized for use by the transportation network company
driver; and

(2) not a taxicab, limousine, deleted text begin or deleted text end for-hire vehicle new text begin , or a private passenger vehicle driven
by a volunteer driver new text end .

(d) A "prearranged ride" means the provision of transportation by a driver to a rider,
beginning when a driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company, continuing while the driver transports a
requesting rider, and ending when the last requesting rider departs from the personal vehicle.
A prearranged ride does not include transportation provided using a taxicab, limousine, or
other for-hire vehicle.

(e) A "transportation network company" means a corporation, partnership, sole
proprietorship, or other entity that is operating in Minnesota that uses a digital network to
connect transportation network company riders to transportation network company drivers
who provide prearranged rides.

(f) A "transportation network company driver" or "driver" means an individual who:

(1) receives connections to potential riders and related services from a transportation
network company in exchange for payment of a fee to the transportation network company;
and

(2) uses a personal vehicle to provide a prearranged ride to riders upon connection
through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.

(g) A "transportation network company rider" or "rider" means an individual or persons
who use a transportation network company's digital network to connect with a transportation
network driver who provides prearranged rides to the rider in the driver's personal vehicle
between points chosen by the rider.

new text begin (h) A "volunteer driver" means an individual who transports persons or goods on behalf
of a nonprofit entity or governmental unit in a private passenger vehicle and receives no
compensation for services provided other than the reimbursement of actual expenses.
new text end

Sec. 4.

Minnesota Statutes 2020, section 174.29, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For the purpose of sections 174.29 and 174.30 "special
transportation service" means motor vehicle transportation provided on a regular basis by
a public or private entity or person that is designed exclusively or primarily to serve
individuals who are elderly or disabled and who are unable to use regular means of
transportation but do not require ambulance service, as defined in section 144E.001,
subdivision 3. Special transportation service includes but is not limited to service provided
by specially equipped buses, vans, taxis, and volunteers driving private automobiles new text begin , as
defined in section 65B.472 new text end . Special transportation service also means those nonemergency
medical transportation services under section 256B.0625, subdivision 17, that are subject
to the operating standards for special transportation service under sections 174.29 to 174.30
and Minnesota Rules, chapter 8840.

Sec. 5.

Minnesota Statutes 2020, section 174.30, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

(a) The operating standards for special transportation
service adopted under this section do not apply to special transportation provided by:

(1) a public transit provider receiving financial assistance under sections 174.24 or
473.371 to 473.449;

(2) a volunteer driver new text begin , as defined in section 65B.472, new text end using a private automobile;

(3) a school bus as defined in section 169.011, subdivision 71; or

(4) an emergency ambulance regulated under chapter 144.

(b) The operating standards adopted under this section only apply to providers of special
transportation service who receive grants or other financial assistance from either the state
or the federal government, or both, to provide or assist in providing that service; except that
the operating standards adopted under this section do not apply to any nursing home licensed
under section 144A.02, to any board and care facility licensed under section 144.50, or to
any day training and habilitation services, day care, or group home facility licensed under
sections 245A.01 to 245A.19 unless the facility or program provides transportation to
nonresidents on a regular basis and the facility receives reimbursement, other than per diem
payments, for that service under rules promulgated by the commissioner of human services.

(c) Notwithstanding paragraph (b), the operating standards adopted under this section
do not apply to any vendor of services licensed under chapter 245D that provides
transportation services to consumers or residents of other vendors licensed under chapter
245D and transports 15 or fewer persons, including consumers or residents and the driver.

Sec. 6.

Minnesota Statutes 2020, section 174.30, subdivision 10, is amended to read:

Subd. 10.

Background studies.

(a) Providers of special transportation service regulated
under this section must initiate background studies in accordance with chapter 245C on the
following individuals:

(1) each person with a direct or indirect ownership interest of five percent or higher in
the transportation service provider;

(2) each controlling individual as defined under section 245A.02;

(3) managerial officials as defined in section 245A.02;

(4) each driver employed by the transportation service provider;

(5) each individual employed by the transportation service provider to assist a passenger
during transport; and

(6) all employees of the transportation service agency who provide administrative support,
including those who:

(i) may have face-to-face contact with or access to passengers, their personal property,
or their private data;

(ii) perform any scheduling or dispatching tasks; or

(iii) perform any billing activities.

(b) The transportation service provider must initiate the background studies required
under paragraph (a) using the online NETStudy system operated by the commissioner of
human services.

(c) The transportation service provider shall not permit any individual to provide any
service or function listed in paragraph (a) until the transportation service provider has
received notification from the commissioner of human services indicating that the individual:

(1) is not disqualified under chapter 245C; or

(2) is disqualified, but has received a set-aside of that disqualification according to
sections 245C.22 and 245C.23 related to that transportation service provider.

(d) When a local or contracted agency is authorizing a ride under section 256B.0625,
subdivision 17, by a volunteer driver, new text begin as defined in section 65B.472, new text end and the agency
authorizing the ride has reason to believe the volunteer driver has a history that would
disqualify the individual or that may pose a risk to the health or safety of passengers, the
agency may initiate a background study to be completed according to chapter 245C using
the commissioner of human services' online NETStudy system, or through contacting the
Department of Human Services background study division for assistance. The agency that
initiates the background study under this paragraph shall be responsible for providing the
volunteer driver with the privacy notice required under section 245C.05, subdivision 2c,
and payment for the background study required under section 245C.10, subdivision 11,
before the background study is completed.

Sec. 7.

Minnesota Statutes 2020, section 221.031, subdivision 3b, is amended to read:

Subd. 3b.

Passenger transportation; exemptions.

(a) A person who transports
passengers for hire in intrastate commerce, who is not made subject to the rules adopted in
section 221.0314 by any other provision of this section, must comply with the rules for
hours of service of drivers while transporting employees of an employer who is directly or
indirectly paying the cost of the transportation.

(b) This subdivision does not apply to:

(1) a local transit commission;

(2) a transit authority created by law; or

(3) persons providing transportation:

(i) in a school bus as defined in section 169.011, subdivision 71;

(ii) in a Head Start bus as defined in section 169.011, subdivision 34;

(iii) in a commuter van;

(iv) in an authorized emergency vehicle as defined in section 169.011, subdivision 3;

(v) in special transportation service certified by the commissioner under section 174.30;

(vi) that is special transportation service as defined in section 174.29, subdivision 1,
when provided by a volunteer driver new text begin , as defined in section 65B.472, new text end operating a private
passenger vehicle as defined in section 169.011, subdivision 52;

(vii) in a limousine the service of which is licensed by the commissioner under section
221.84; or

(viii) in a taxicab, if the fare for the transportation is determined by a meter inside the
taxicab that measures the distance traveled and displays the fare accumulated.

Sec. 8.

Minnesota Statutes 2020, section 256B.0625, subdivision 17, is amended to read:

Subd. 17.

Transportation costs.

(a) "Nonemergency medical transportation service"
means motor vehicle transportation provided by a public or private person that serves
Minnesota health care program beneficiaries who do not require emergency ambulance
service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.

(b) Medical assistance covers medical transportation costs incurred solely for obtaining
emergency medical care or transportation costs incurred by eligible persons in obtaining
emergency or nonemergency medical care when paid directly to an ambulance company,
nonemergency medical transportation company, or other recognized providers of
transportation services. Medical transportation must be provided by:

(1) nonemergency medical transportation providers who meet the requirements of this
subdivision;

(2) ambulances, as defined in section 144E.001, subdivision 2;

(3) taxicabs that meet the requirements of this subdivision;

(4) public transit, as defined in section 174.22, subdivision 7; or

(5) not-for-hire vehicles, including volunteer drivers new text begin , as defined in section 65B.472 new text end .

(c) Medical assistance covers nonemergency medical transportation provided by
nonemergency medical transportation providers enrolled in the Minnesota health care
programs. All nonemergency medical transportation providers must comply with the
operating standards for special transportation service as defined in sections 174.29 to 174.30
and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the
commissioner and reported on the claim as the individual who provided the service. All
nonemergency medical transportation providers shall bill for nonemergency medical
transportation services in accordance with Minnesota health care programs criteria. Publicly
operated transit systems, volunteers, and not-for-hire vehicles are exempt from the
requirements outlined in this paragraph.

(d) An organization may be terminated, denied, or suspended from enrollment if:

(1) the provider has not initiated background studies on the individuals specified in
section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or

(2) the provider has initiated background studies on the individuals specified in section
174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:

(i) the commissioner has sent the provider a notice that the individual has been
disqualified under section 245C.14; and

(ii) the individual has not received a disqualification set-aside specific to the special
transportation services provider under sections 245C.22 and 245C.23.

(e) The administrative agency of nonemergency medical transportation must:

(1) adhere to the policies defined by the commissioner in consultation with the
Nonemergency Medical Transportation Advisory Committee;

(2) pay nonemergency medical transportation providers for services provided to
Minnesota health care programs beneficiaries to obtain covered medical services;

(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
trips, and number of trips by mode; and

(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single
administrative structure assessment tool that meets the technical requirements established
by the commissioner, reconciles trip information with claims being submitted by providers,
and ensures prompt payment for nonemergency medical transportation services.

(f) Until the commissioner implements the single administrative structure and delivery
system under subdivision 18e, clients shall obtain their level-of-service certificate from the
commissioner or an entity approved by the commissioner that does not dispatch rides for
clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7).

(g) The commissioner may use an order by the recipient's attending physician, advanced
practice registered nurse, or a medical or mental health professional to certify that the
recipient requires nonemergency medical transportation services. Nonemergency medical
transportation providers shall perform driver-assisted services for eligible individuals, when
appropriate. Driver-assisted service includes passenger pickup at and return to the individual's
residence or place of business, assistance with admittance of the individual to the medical
facility, and assistance in passenger securement or in securing of wheelchairs, child seats,
or stretchers in the vehicle.

Nonemergency medical transportation providers must take clients to the health care
provider using the most direct route, and must not exceed 30 miles for a trip to a primary
care provider or 60 miles for a trip to a specialty care provider, unless the client receives
authorization from the local agency.

Nonemergency medical transportation providers may not bill for separate base rates for
the continuation of a trip beyond the original destination. Nonemergency medical
transportation providers must maintain trip logs, which include pickup and drop-off times,
signed by the medical provider or client, whichever is deemed most appropriate, attesting
to mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
services.

(h) The administrative agency shall use the level of service process established by the
commissioner in consultation with the Nonemergency Medical Transportation Advisory
Committee to determine the client's most appropriate mode of transportation. If public transit
or a certified transportation provider is not available to provide the appropriate service mode
for the client, the client may receive a onetime service upgrade.

(i) The covered modes of transportation are:

(1) client reimbursement, which includes client mileage reimbursement provided to
clients who have their own transportation, or to family or an acquaintance who provides
transportation to the client;

(2) volunteer transport, which includes transportation by volunteers using their own
vehicle;

(3) unassisted transport, which includes transportation provided to a client by a taxicab
or public transit. If a taxicab or public transit is not available, the client can receive
transportation from another nonemergency medical transportation provider;

(4) assisted transport, which includes transport provided to clients who require assistance
by a nonemergency medical transportation provider;

(5) lift-equipped/ramp transport, which includes transport provided to a client who is
dependent on a device and requires a nonemergency medical transportation provider with
a vehicle containing a lift or ramp;

(6) protected transport, which includes transport provided to a client who has received
a prescreening that has deemed other forms of transportation inappropriate and who requires
a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety
locks, a video recorder, and a transparent thermoplastic partition between the passenger and
the vehicle driver; and (ii) who is certified as a protected transport provider; and

(7) stretcher transport, which includes transport for a client in a prone or supine position
and requires a nonemergency medical transportation provider with a vehicle that can transport
a client in a prone or supine position.

(j) The local agency shall be the single administrative agency and shall administer and
reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the
commissioner has developed, made available, and funded the web-based single administrative
structure, assessment tool, and level of need assessment under subdivision 18e. The local
agency's financial obligation is limited to funds provided by the state or federal government.

(k) The commissioner shall:

(1) in consultation with the Nonemergency Medical Transportation Advisory Committee,
verify that the mode and use of nonemergency medical transportation is appropriate;

(2) verify that the client is going to an approved medical appointment; and

(3) investigate all complaints and appeals.

(l) The administrative agency shall pay for the services provided in this subdivision and
seek reimbursement from the commissioner, if appropriate. As vendors of medical care,
local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.

(m) Payments for nonemergency medical transportation must be paid based on the client's
assessed mode under paragraph (h), not the type of vehicle used to provide the service. The
medical assistance reimbursement rates for nonemergency medical transportation services
that are payable by or on behalf of the commissioner for nonemergency medical
transportation services are:

(1) $0.22 per mile for client reimbursement;

(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer
transport;

(3) equivalent to the standard fare for unassisted transport when provided by public
transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
medical transportation provider;

(4) $13 for the base rate and $1.30 per mile for assisted transport;

(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;

(6) $75 for the base rate and $2.40 per mile for protected transport; and

(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for
an additional attendant if deemed medically necessary.

(n) The base rate for nonemergency medical transportation services in areas defined
under RUCA to be super rural is equal to 111.3 percent of the respective base rate in
paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation
services in areas defined under RUCA to be rural or super rural areas is:

(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7); and

(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7).

(o) For purposes of reimbursement rates for nonemergency medical transportation
services under paragraphs (m) and (n), the zip code of the recipient's place of residence
shall determine whether the urban, rural, or super rural reimbursement rate applies.

(p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means
a census-tract based classification system under which a geographical area is determined
to be urban, rural, or super rural.

(q) The commissioner, when determining reimbursement rates for nonemergency medical
transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed
under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2).