SF 3886

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/17/2024 09:37am

A bill for an act
relating to taxation; aid to local governments and private ambulance services;
establishing a onetime aid program for certain licensed ambulance services;
requiring reports; appropriating money.

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

Section 1. new text begin EMERGENCY AMBULANCE SERVICE AID.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Ambulance service" has the meaning given in Minnesota Statutes, section 144E.001,
subdivision 3.
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new text begin (c) "Board" means the Emergency Medical Services Regulatory Board.
new text end

new text begin (d) "Capital expenses" means expenses that are incurred by a licensed ambulance service
provider for the purchase, improvement, or maintenance of long-term assets to improve the
efficiency or capability of the ambulance services, with an expected useful life of greater
than five years.
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new text begin (e) "Commissioner" means the commissioner of revenue.
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new text begin (f) "EMS responses" means the number of responses reported to the board by a licensed
ambulance service provider via the Minnesota state ambulance reporting system during
calendar year 2022.
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new text begin (g) "Licensed ambulance service provider" means a natural person, partnership,
association, corporation, Tribal government, or unit of government which possesses an
ambulance service license under Minnesota Statutes, chapter 144E.
new text end

new text begin (h) "Operational expenses" means costs related to personnel expenses, supplies and
equipment, fuel, vehicle maintenance, travel, education, fundraising, and expenses associated
with obtaining advanced life support intercepts.
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new text begin (i) "Primary service area" has the meaning given in Minnesota Statutes, section 144E.001,
subdivision 10.
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new text begin (j) "Response density" means the quotient of a licensed ambulance service provider's
EMS responses divided by the square mileage of the licensed ambulance service provider's
primary service area.
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new text begin (k) "Unit of government" means a county, a statutory or home rule charter city, or a
township.
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new text begin Subd. 2. new text end

new text begin Excluded services. new text end

new text begin The commissioner must exclude EMS responses by
specialized life support as described in Minnesota Statutes, section 144E.101, subdivision
9, when calculating EMS responses, response density, and aid payments under this section.
new text end

new text begin Subd. 3. new text end

new text begin Multiple licenses. new text end

new text begin When a licensed ambulance service provider, a licensed
ambulance service provider's parent company, a subsidiary of the licensed ambulance service
provider, or a subsidiary of the licensed ambulance service provider's parent company
collectively: (1) hold one or more licenses; and (2) are mainly located within the metropolitan
counties listed in Minnesota Statutes, section 473.121, subdivision 4, or at least partially
within the city of Duluth, Mankato, Moorhead, Rochester, or St. Cloud, the commissioner
must treat all such related licensed ambulance service providers as a single licensed
ambulance service provider and the sum of the square mileages of the primary service areas
as a single primary service area for the purposes of calculating EMS responses, response
density, and aid payments under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin Except as otherwise required under subdivision 6, paragraphs (c)
and (d), a licensed ambulance service provider is eligible for aid under this section if the
licensed ambulance service provider:
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new text begin (1) possessed a license in calendar year 2022;
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new text begin (2) continues to operate under the license for aids payable in 2024; and
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new text begin (3) completes the requirements under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) An eligible licensed ambulance service provider may
apply to the commissioner, in the form and manner determined by the commissioner, for
aid under this section. Applications must be submitted by September 16, 2024. The
commissioner may require an eligible licensed ambulance service provider to submit any
information necessary, including financial statements, to make the calculations under
subdivision 6. An eligible licensed ambulance service provider who applies for aid under
this section must provide a copy of the application to the executive director of the board by
September 16, 2024.
new text end

new text begin (b) The commissioner and the executive director of the board must establish a process
for verifying the data submitted with applications under this section.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner calculations. new text end

new text begin (a) Prior to determining an aid payment amount
for eligible licensed ambulance service providers, the commissioner must make the
calculations in paragraphs (b) to (d).
new text end

new text begin (b) In addition to meeting the criteria in subdivision 4, a licensed ambulance service
provider is eligible for aid according to the calculations under this paragraph unless the
licensed ambulance service provider: (1) is mainly located within the metropolitan counties
listed in Minnesota Statutes, section 473.121, subdivision 4, or at least partially within the
city of Duluth, Mankato, Moorhead, Rochester, or St. Cloud; and (2) has a response density
of greater than 30 responses per square mile. For each eligible service provider, the
commissioner must determine the amount equal to dividing 20 percent of the amount
appropriated for aid payments under this section equally among all eligible licensed
ambulance service providers.
new text end

new text begin (c) In addition to meeting the criteria in subdivision 4, a licensed ambulance service
provider is eligible for aid according to the calculations under this paragraph only if the
licensed ambulance service provider has a response density of 30 responses per square mile
or fewer. For each eligible licensed ambulance service provider, the commissioner must
determine the amount equal to the product of: 40 percent of the amount appropriated for
aid payments under this section; multiplied by each eligible licensed ambulance service
provider's primary service area square mileage divided by the total square mileage of all
eligible licensed ambulance service providers' primary service areas. For purposes of this
paragraph, the square mileage of an eligible licensed ambulance service provider's primary
service area is equal to the lesser of the number of square miles in the primary service area,
or 1,200.
new text end

new text begin (d) In addition to meeting the criteria in subdivision 4, a licensed ambulance service
provider is eligible for aid according to the calculations under this paragraph only if the
licensed ambulance service provider has a response density of 30 responses per square mile
or fewer. For each eligible licensed ambulance service provider, the commissioner must
determine the amount equal to the product of: 40 percent of the amount appropriated for
aid payments under this section; multiplied by the number of points determined under clauses
(1) to (4) for each eligible licensed ambulance service provider divided by the total points
determined under clauses (1) to (4) for all eligible licensed ambulance service providers.
For calculations under this paragraph, the commissioner must determine points for an eligible
licensed ambulance service provider as follows:
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new text begin (1) for EMS response one to EMS response 500, an eligible licensed ambulance service
provider is awarded ten points for each EMS response;
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new text begin (2) for EMS response 501 to EMS response 1,500, an eligible licensed ambulance service
provider is awarded five points for each EMS response;
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new text begin (3) for EMS response 1,501 to EMS response 2,500, an eligible licensed ambulance
service provider is awarded zero points for each EMS response; and
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new text begin (4) for EMS response 2,501 and each subsequent EMS response, an eligible licensed
ambulance service provider's points are reduced by two points for each EMS response,
except an eligible licensed ambulance service provider's total awarded points must not be
reduced below zero.
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new text begin Subd. 7. new text end

new text begin Aid amount. new text end

new text begin The commissioner must make an aid payment to each eligible
licensed ambulance service provider in the amount equal to the sum of the amounts calculated
in subdivision 6, paragraphs (b) to (d).
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new text begin Subd. 8. new text end

new text begin Eligible uses. new text end

new text begin A licensed ambulance service provider must spend aid received
under this section on operational expenses and capital expenses incurred to provide
ambulance services within the licensed ambulance service provider's primary service area
that is located in Minnesota.
new text end

new text begin Subd. 9. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must certify the aid amount to each
licensed ambulance service provider by December 1, 2024.
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new text begin (b) The commissioner must make the full aid payment to each eligible licensed ambulance
service provider by December 26, 2024.
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new text begin (c) Any funds not spent on or encumbered for eligible uses by December 31, 2025, must
be returned to the commissioner.
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new text begin Subd. 10. new text end

new text begin Report. new text end

new text begin By February 15, 2026, each licensed ambulance service provider that
receives aid under this section must submit a report to the commissioner and to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxes
and property taxes. The report must include the amount of aid that each licensed ambulance
service provider received, the amount of aid that was spent on or encumbered for operational
expenses, the amount of aid that was spent on or encumbered for capital expenses, and
documentation sufficient to establish that awarded aid was spent on or encumbered for
eligible uses as defined in subdivision 8. The commissioner may request financial statements
or other information necessary to verify that aid was spent on eligible uses.
new text end

new text begin Subd. 11. new text end

new text begin Appropriation. new text end

new text begin (a) An amount sufficient to make aid payments under this
section is appropriated from the general fund to the commissioner of revenue in fiscal year
2025, provided the total does not exceed $120,000,000.
new text end

new text begin (b) Of the amount in paragraph (a), the commissioner may retain up to $60,000 for
administrative costs related to aid under this section.
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new text begin (c) This is a onetime appropriation.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024.
new text end