SF 3886

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/18/2024 08:36am

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.
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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 provided within a primary service
area during calendar year 2023 by the licensed ambulance service provider designated to
serve the primary service area as reported by the provider to the board via the Minnesota
state ambulance reporting system.
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new text begin (g) "Licensed ambulance service provider" or "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.
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new text begin (h) "Metropolitan county" means a metropolitan county listed in Minnesota Statutes,
section 473.121, subdivision 4.
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new text begin (i) "Multiple license holder" means 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 that
collectively holds more than one license.
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new text begin (j) "Nonexcluded license" means a license that is not excluded under subdivision 3 from
receiving aid under this section.
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new text begin (k) "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 (l) "Primary service area" has the meaning given in Minnesota Statutes, section 144E.001,
subdivision 10.
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new text begin (m) "Response density" means the quotient of EMS responses divided by the square
mileage of the primary service area.
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new text begin (n) "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, in coordination with the executive
director of the board, must exclude EMS responses by a specialized life support service as
described in Minnesota Statutes, section 144E.101, subdivision 9, when calculating EMS
responses, response density, and aid payments under this section.
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new text begin Subd. 3. new text end

new text begin Certain multiple license holders excluded. new text end

new text begin (a) Except as provided under
paragraph (b), all licenses held by a multiple license holder are ineligible for aid payments
under this section if any license held by a multiple license holder is designated to serve a
primary service area, any portion of which is located within the cities of Duluth, Mankato,
Moorhead, Rochester, or St. Cloud, or a metropolitan county.
new text end

new text begin (b) For a multiple license holder affiliated with a private, nonprofit adult hospital that
is located in Hennepin County and designated by the commissioner of health as a level I
trauma hospital, only the licenses held by the multiple license holder and located entirely
within one or more metropolitan counties are ineligible for 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 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 nonexcluded license in calendar year 2022;
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new text begin (2) continues to operate under the nonexcluded license during calendar year 2024; and
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new text begin (3) completes the requirements under subdivision 5.
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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.
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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. By September 20,
2024, for each eligible licensed ambulance service provider that applies for aid under
paragraph (a), the executive director of the board must certify the following information to
the commissioner:
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new text begin (1) EMS responses by primary service area reported for calendar year 2023;
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new text begin (2) EMS responses by primary service area reported for calendar year 2023 that were
provided by a specialized life support service;
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new text begin (3) information necessary to determine the location of each primary service area, including
municipalities served; and
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new text begin (4) the square mileage of each primary service area as of January 1, 2024.
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, in coordination with
the executive director of the board, must make the calculations in paragraphs (b) to (d).
new text end

new text begin (b) 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 who possess at least one nonexcluded license. Eligible licensed
ambulance service providers who possess only one nonexcluded license do not qualify for
a payment under this paragraph if the nonexcluded license has a response density greater
than 30.
new text end

new text begin (c) For each nonexcluded license with a response density less than or equal to 30 held
by an 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 quotient of the square mileage of the primary service
area served under the nonexcluded license divided by the total square mileage of all primary
service areas served under nonexcluded licenses.
new text end

new text begin (d) For each nonexcluded license with a response density less than or equal to 30 held
by an 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 quotient of the number of points determined under
clauses (1) to (4) for each nonexcluded license with a response density less than or equal
to 30 divided by the total points determined under clauses (1) to (4) for all nonexcluded
licenses with a response density less than or equal to 30 held by eligible licensed ambulance
service providers. For calculations under this paragraph, the commissioner must determine
points as follows:
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new text begin (1) for EMS response one to EMS response 500, a nonexcluded license 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, a nonexcluded license 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, a nonexcluded license 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, a nonexcluded license's
points are reduced by two points for each EMS response, except a nonexcluded license'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), for each nonexcluded license held by the eligible
licensed ambulance service.
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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.
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new text begin Subd. 9. new text end

new text begin Administration. new text end

new text begin (a) The commissioner, in coordination with the executive
director of the board, must certify the aid amount to each licensed ambulance service provider
by December 1, 2024.
new text end

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 and cancel to the general fund.
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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, the executive
director of the board, and 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
executive director of the board may request financial statements or other information
necessary to verify that aid was spent on eligible uses.
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new text begin Subd. 11. new text end

new text begin Appropriation. new text end

new text begin (a) $24,000,000 in fiscal year 2025 is appropriated from the
general fund to the commissioner of revenue for aid payments under this section.
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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.
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