SF 3205

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 05/18/2016 07:43pm

A bill for an act
relating to transportation; amending certain regulations and penalties governing
special transportation service providers; setting requirements for nonemergency
medical transportation providers related to background studies; amending
Minnesota Statutes 2014, section 174.30, subdivisions 1, 4a, 8, by adding a
subdivision; Minnesota Statutes 2015 Supplement, sections 174.30, subdivisions
4, 10; 256B.0625, subdivision 17.

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

Section 1.

Minnesota Statutes 2014, 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 deleted text begin common carrier operating on fixed routes and schedules deleted text end new text begin public transit provider
receiving financial assistance under sections 174.24 or 473.371 to 473.449 new text end ;

(2) a volunteer driver 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. 2.

Minnesota Statutes 2014, section 174.30, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For purposes of this section, unless the context clearly
indicates otherwise, "disqualified" means an individual disqualified under chapter 245C
who has not received a disqualification set-aside under sections 245C.22 and 245C.23
specific to that special transportation service provider.
new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 174.30, subdivision 4, is
amended to read:

Subd. 4.

Vehicle and equipment inspection; rules; decal; complaint contact
information; restrictions on name of service.

(a) The commissioner shall inspect or
provide for the inspection of vehicles at least annually. In addition to scheduled annual
inspections and reinspections scheduled for the purpose of verifying that deficiencies have
been corrected, unannounced inspections of any vehicle may be conducted.

(b) On determining that a vehicle or vehicle equipment is in a condition that is likely
to cause an accident or breakdown, the commissioner shall require the vehicle to be taken
out of service immediately. The commissioner shall require that vehicles and equipment
not meeting standards be repaired and brought into conformance with the standards
and shall require written evidence of compliance from the operator before allowing the
operator to return the vehicle to service. new text begin The commissioner may prohibit a vehicle from
being placed in or returned to service under a certificate of compliance until the vehicle
fully complies with all of the requirements in Minnesota Rules, chapter 8840.
new text end

(c) The commissioner shall provide in the rules procedures for inspecting vehicles,
removing unsafe vehicles from service, determining and requiring compliance, and
reviewing driver qualifications.

(d) The commissioner shall design a distinctive decal to be issued to special
transportation service providers with a current certificate of compliance under this section.
A decal is valid for one year from the last day of the month in which it is issued. A person
who is subject to the operating standards adopted under this section may not provide
special transportation service in a vehicle that does not conspicuously display a decal
issued by the commissioner.

(e) All special transportation service providers shall pay an annual fee of $45
to obtain a decal. Providers of ambulance service, as defined in section 144E.001,
subdivision 3, are exempt from the annual fee. Fees collected under this paragraph must
be deposited in the trunk highway fund, and are appropriated to the commissioner to pay
for costs related to administering the special transportation service program.

(f) Special transportation service providers shall prominently display in each vehicle
all contact information for the submission of complaints regarding the transportation
services provided to that individual. All vehicles providing service under section
473.386 shall display contact information for the Metropolitan Council. All other special
transportation service vehicles shall display contact information for the commissioner of
transportation.

(g) Nonemergency medical transportation providers must comply with Minnesota
Rules, part 8840.5450, except that a provider may use the phrase "nonemergency medical
transportation" in its name or in advertisements or information describing the service.

Sec. 4.

Minnesota Statutes 2014, section 174.30, subdivision 4a, is amended to read:

Subd. 4a.

Certification of special transportation provider.

new text begin (a) The commissioner
may refuse to issue a certificate of compliance if an individual specified in subdivision 10,
paragraph (a), clauses (1) to (3), is disqualified.
new text end

new text begin (b) new text end The commissioner shall annually evaluate or provide for the evaluation of each
provider of special transportation service regulated under this section and certify that the
provider is in compliance with the standards under this section.

Sec. 5.

Minnesota Statutes 2014, section 174.30, subdivision 8, is amended to read:

Subd. 8.

Administrative penalties new text begin ; loss of certificate of compliance new text end .

new text begin (a) new text end The
commissioner may issue an order requiring violations of this section and the operating
standards adopted under this section to be corrected and assessing monetary penalties
of up to $1,000 for all violations identified during a single inspection, investigation,
or audit. Section 221.036 applies to administrative penalty orders issued under this
section or section 174.315. The commissioner shall suspend, without a hearing, a special
transportation service provider's certificate of compliance for failure to pay, or make
satisfactory arrangements to pay, an administrative penalty when due.

new text begin (b) If the commissioner determines that an individual subject to background studies
under subdivision 10, paragraph (a), is disqualified, the commissioner must issue a written
notice ordering the special transportation service provider to immediately cease permitting
the individual to perform services or functions listed in subdivision 10, paragraph (a). The
written notice must include a warning that failure to comply with the order may result in
the suspension or revocation of the provider's certificate of compliance under this section.
new text end

new text begin (c) The commissioner may suspend or revoke a provider's certificate of compliance
upon determining that, following receipt by a provider of written notice under paragraph
(b), the individual has continued to perform services or functions listed in subdivision 10,
paragraph (a), for the provider. A provider whose certificate is suspended or revoked may
appeal the commissioner's action in a contested case proceeding under chapter 14.
new text end

new text begin (d) new text end Penalties collected under this section must be deposited in the state treasury
and credited to the trunk highway fund.

Sec. 6.

Minnesota Statutes 2015 Supplement, 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 new text begin , subdivision 5a new text end ;

(3) managerial officials as defined in section 245A.02 new text begin , subdivision 5a new text end ;

(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 new text begin or function new text end 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
deleted text begin section deleted text end new text begin sections 245C.22 and new text end 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, 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 2015 Supplement, 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, common carrier, 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;

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

(5) not-for-hire vehicles, including volunteer drivers.

(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.

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

new text begin (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
new text end

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

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

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

deleted text begin (d) deleted text end new text begin (e) new text end 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.

deleted text begin (e) deleted text end new text begin (f) new text end 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 deleted text begin (h) deleted text end new text begin (i) new text end , clauses (4), (5),
(6), and (7).

deleted text begin (f) deleted text end new text begin (g) new text end 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 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.

deleted text begin (g) deleted text end new text begin (h) new text end 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.

deleted text begin (h) deleted text end new text begin (i) new text end The covered modes of transportation, which may not be implemented without
a new rate structure, 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.

deleted text begin (i) deleted text end new text begin (j) new text end The local agency shall be the single administrative agency and shall administer
and reimburse for modes defined in paragraph deleted text begin (h) deleted text end new text begin (i) new text end according to paragraphs deleted text begin (l) deleted text end new text begin (m) new text end and
deleted text begin (m) deleted text end new text begin (n) new text end 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.

deleted text begin (j) deleted text end new text begin (k) new text end 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.

deleted text begin (k) deleted text end new text begin (l) new text end 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.

deleted text begin (l) deleted text end new text begin (m) new text end Payments for nonemergency medical transportation must be paid based
on the client's assessed mode under paragraph deleted text begin (g) deleted text end new text begin (h) new text end , 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.

deleted text begin (m) deleted text end new text begin (n) new text end 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 deleted text begin (l) deleted text end new text begin (m) new text end , 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 deleted text begin (l) deleted text end new text begin (m) new text end , 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 deleted text begin (l) deleted text end new text begin (m) new text end , clauses (1) to (7).

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

deleted text begin (o) deleted text end new text begin (p) new text end 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.