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Minnesota Legislature

Office of the Revisor of Statutes

HF 2377

as introduced - 91st Legislature (2019 - 2020) Posted on 03/13/2019 04:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2019

Current Version - as introduced

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A bill for an act
relating to automobile insurance; clarifying that volunteer drivers receiving funding
from the public transit participation program are not for hire; amending Minnesota
Statutes 2018, sections 65B.15, subdivision 1; 65B.43, subdivision 12, by adding
a subdivision; 65B.47, subdivision 1a; 65B.472, subdivision 1; 256B.0625,
subdivision 17.

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

Section 1.

Minnesota Statutes 2018, 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:

deleted text begin 1.deleted text endnew text begin (1)new text end nonpayment of premium; or

deleted text begin 2.deleted text endnew text begin (2)new text end the policy was obtained through a material misrepresentation; or

deleted text begin 3.deleted text endnew text begin (3)new text end any insured made a false or fraudulent claim or knowingly aided or abetted another
in the presentation of such a claim; or

deleted text begin 4.deleted text endnew text begin (4)new text end 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

deleted text begin 5.deleted text endnew text begin (5)new text end the named insured failed to disclose in the written application any requested
information necessary for the acceptance or proper rating of the risk; or

deleted text begin 6.deleted text endnew text begin (6)new text end 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

deleted text begin 7.deleted text endnew text begin (7)new text end 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

deleted text begin 8.deleted text endnew text begin (8)new text end 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, deleted text beginprovided howeverdeleted text endnew text begin exceptnew text end that
the use of an automobile for a car pool deleted text beginshalldeleted text endnew text begin or by a public transit participation program
(PTPP) volunteer driver is
new text end not deleted text beginbedeleted text end 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 2018, section 65B.43, subdivision 12, is amended to read:


Subd. 12.

Commercial vehicle.

new text begin(a) new text end"Commercial vehicle" means:

deleted text begin (a)deleted text endnew text begin (1)new text end any motor vehicle used as a common carrierdeleted text begin,deleted text endnew text begin;
new text end

deleted text begin (b)deleted text endnew text begin (2)new text end 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 capacitydeleted text begin,deleted text endnew text begin;new text end
or

deleted text begin (c)deleted text endnew text begin (3)new text end any motor vehicle while used in the for-hire transportation of property.

new text begin (b) new text endCommercial 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 or for personal use as permitted by the owner of the
vehicle.

new text begin (c) Commercial vehicle does not include a vehicle when used by a PTPP volunteer driver
while providing transportation services.
new text end

Sec. 3.

Minnesota Statutes 2018, section 65B.43, is amended by adding a subdivision to
read:


new text begin Subd. 21. new text end

new text begin PTPP volunteer driver. new text end

new text begin "Public transit participation program volunteer driver"
or "PTPP volunteer driver" means an individual who:
new text end

new text begin (1) provides transportation services for another individual on behalf of an organization
receiving funding under section 174.24;
new text end

new text begin (2) owns, leases, or is otherwise authorized to personally use a vehicle for transportation
services; and
new text end

new text begin (3) receives no compensation for the transportation services other than reimbursement
of expenses, including but not limited to mileage reimbursement.
new text end

Sec. 4.

Minnesota Statutes 2018, section 65B.47, subdivision 1a, is amended to read:


Subd. 1a.

Exemptions.

Subdivision 1 does not apply to:

(1) a commuter van;

(2) a vehicle being used to transport children as part of a family or group family day
care program;

(3) a vehicle being used to transport children to school or to a school-sponsored activity;

(4) a bus while it is in operation within the state of Minnesota as to any Minnesota
resident who is an insured as defined in section 65B.43, subdivision 5;

(5) a passenger in a taxi; deleted text beginor
deleted text end

(6) a taxi driver, provided that this clause applies only to policies issued or renewed on
or after September 1, 1996, and prior to September 1, 1997deleted text begin.deleted text endnew text begin; or
new text end

new text begin (7) a PTPP volunteer driver.
new text end

Sec. 5.

Minnesota Statutes 2018, 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) deleted text beginAdeleted text end "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) deleted text beginAdeleted text end "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, or for-hire vehicle.

(d) deleted text beginAdeleted text end "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) deleted text beginAdeleted text end "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) deleted text beginAdeleted text end "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.

new text begin Transportation network company driver or driver does not include a PTPP volunteer driver.
new text end

(g) deleted text beginAdeleted text end "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.

Sec. 6.

Minnesota Statutes 2018, 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 driversnew text begin and PTPP volunteer drivers, as
defined in section 65B.43, subdivision 21
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 in consultation with the Minnesota Department of
Transportation. 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 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).