Bill exempting HHS service contractors from PSC regulation advances

Contractors providing case management and coordination services for the state Department of Health and Human Services would be exempt from Public Service Commission motor carrier regulations under a bill advanced from general file March 29.

An opinion issued by the attorney general in August revealed that service contractors, which receive lump sum compensation, were subject to PSC regulation because they provide transportation services. The opinion also stated that service contractors could not qualify under an existing exemption for escort services, which involve an attendant or caregiver accompanying a minor or a person who is physically, mentally or developmentally disabled and unable to travel or wait without assistance or supervision.

LB112, introduced by Lincoln Sen. Colby Coash, originally created an exemption for comprehensive services transport, which it defined as transportation provided by a person with an HHS comprehensive services contract or subcontract.

Coash said the intent of the bill is to allow HHS contract providers to continue offering transportation as a part of their overall care.

A Transportation and Telecommunications Committee amendment, adopted 32-0, replaced the bill. The amendment 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 amendment also would rename escort services as attended services and extend the exemption to motor carriers with a subcontract with HHS or any agency organized under the Nebraska Community Aging Services Act.

Lawmakers voted 31-0 to advance LB112 from general file.