Exemption from PSC regulation for HHS service contractors amended, advanced

Contractors providing transportation services for the state Department of Health and Human Services would be exempt from PSC motor carrier regulations under a bill advanced from select file April 12.

As amended during general file, LB112, introduced by Lincoln Sen. Colby Coash, would create two exemptions from PSC regulation for residential care transportation services and supported transportation services that meet HHS safety requirements.

Residential care transportation services would be defined as transportation services provided as part of an HHS services contract or subcontract to a minor or a person who is physically, mentally or developmentally disabled and resides in a residential home facility or HHS-regulated facility.

Supported transportation services would include transportation services offered to a minor and their family member or a person who is physically, mentally or developmentally disabled by a person who is required to assist and supervise the passenger. Such services must be part of an HHS services contract or subcontract, and drivers must meet training, reporting and age requirements.

The bill also would rename escort services as attended services and extend the exemption for attended services to motor carriers with a subcontract with HHS or any agency organized under the Nebraska Community Aging Services Act.

Coash offered an amendment to add an exemption for licensed care transportation services, which would include transportation provided by licensed child-caring agencies, child-placing agencies or child care facilities to a client or family member when the person providing the transportation also assists and supervises the passenger. Licensed care transportation services would be incidental to social services provided by the agency or facility to the passenger.

His amendment also would require motor carriers providing licensed care transportation services to meet PSC minimum driver standards, equipment standards and insurance requirements, which would be consistent with HHS requirements for attended services, residential care transportation services and supported transportation services.

Coash said the amendment would ensure that HHS service contractors are exempt from PSC motor carrier regulation, which was the case before an August 2010 opinion issued by the attorney general. Failing to adopt the amended bill could cost the state and service providers $18 million, he said.

Lawmakers adopted Coash’s amendment 37-0 and advanced LB112 from select file on a voice vote.