1.1                          A bill for an act 
  1.2             relating to health; providing for municipal 
  1.3             cooperative services agreements for the provision of 
  1.4             ambulance services; amending Minnesota Statutes 2002, 
  1.5             section 144E.07, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 144E.07, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 6.  [MUNICIPALITIES; COOPERATIVE SERVICES 
  1.10  AGREEMENTS.] (a) A municipality that meets the eligibility 
  1.11  requirements of paragraph (f) may apply to the board for 
  1.12  approval of a cooperative services agreement between the 
  1.13  municipality and the ambulance service whose primary service 
  1.14  area includes the municipality.  The cooperative services 
  1.15  agreement must provide the terms and conditions under which the 
  1.16  municipality will provide ambulance service, including: 
  1.17     (1) the types of ambulance service under section 144E.101, 
  1.18  subdivision 5, to be provided by the municipality; 
  1.19     (2) the geographic boundaries within which the municipality 
  1.20  will provide ambulance services; and 
  1.21     (3) the manner in which the municipality will compensate 
  1.22  the ambulance service. 
  1.23     (b) The municipality shall be the primary provider of 
  1.24  ambulance service within the geographic area specified in the 
  1.25  cooperative services agreement. 
  2.1      (c) The board must approve a cooperative services agreement 
  2.2   within 60 days of application if the municipality satisfies the 
  2.3   requirements of paragraph (f).  Failure to notify the 
  2.4   municipality of the status of an application within 60 days is 
  2.5   deemed approval of the cooperative services agreement. 
  2.6      (d) An ambulance service whose primary service area 
  2.7   includes a municipality that is requesting a cooperative 
  2.8   services agreement must negotiate in good faith with the 
  2.9   municipality.  An ambulance service is not acting in good faith 
  2.10  if it fails to enter into negotiations within 60 days of 
  2.11  receiving a request from a municipality for a cooperative 
  2.12  services agreement or if it refuses to enter a cooperative 
  2.13  services agreement under the following conditions: 
  2.14     (1) the average estimated response times of the 
  2.15  municipality to an emergency call within the geographic area set 
  2.16  forth in the proposed cooperative services agreement is the same 
  2.17  as or less than the average response time of the ambulance 
  2.18  service to calls in that geographic area; and 
  2.19     (2) if the proposed cooperative services agreement is 
  2.20  entered, it would remain economically feasible for the ambulance 
  2.21  service to continue to provide the same level and quality of 
  2.22  service in response to emergency calls within those portions of 
  2.23  its designated primary service area outside the geographic area 
  2.24  set forth in the proposed cooperative services agreement.  An 
  2.25  ambulance service may not assert that providing service would 
  2.26  not be economically feasible solely because the ambulance 
  2.27  service will not earn the same level of profits as it would if 
  2.28  the proposed cooperative services agreement is not entered. 
  2.29     (e) Upon the request of the municipality that is requesting 
  2.30  a cooperative services agreement and that meets the requirements 
  2.31  of paragraph (f), the board shall determine whether an ambulance 
  2.32  service is negotiating in good faith according to paragraph 
  2.33  (d).  If the board finds that an ambulance service refuses to 
  2.34  negotiate the terms of a cooperative services agreement in good 
  2.35  faith according to paragraph (d), the board may issue a 
  2.36  correction order according to section 144E.31.  If the ambulance 
  3.1   service fails to comply with the correction order, the board may 
  3.2   place conditions on the ambulance service's license to withdraw 
  3.3   the geographic area specified in the municipality's proposed 
  3.4   cooperative services agreement from the ambulance service's 
  3.5   primary service area and may designate the municipality as the 
  3.6   ambulance service for that geographic area. 
  3.7      (f) A municipality may enter into a cooperative services 
  3.8   agreement under this subdivision if the municipality: 
  3.9      (1) is located within the metropolitan area, as defined 
  3.10  under section 403.02; and 
  3.11     (2) complies with or demonstrates the ability to comply 
  3.12  with sections 144E.101, 144E.123, 144E.125, 144E.127, and 
  3.13  144E.265 and rules adopted by the board under section 144E.16, 
  3.14  subdivision 4, clauses (2) to (15). 
  3.15     (g) An ambulance service that enters into a cooperative 
  3.16  services agreement with a municipality is not liable for damages 
  3.17  caused by the municipality in providing ambulance services 
  3.18  within the geographic area specified in the cooperative services 
  3.19  agreement. 
  3.20     (h) If a primary service area is to be redesignated, the 
  3.21  board shall first offer the opportunity to be designated as the 
  3.22  ambulance service for the primary service area to a municipality 
  3.23  that is located in the primary service area and that is eligible 
  3.24  under paragraph (f), clause (2). 
  3.25     (i) This subdivision does not apply to a municipality that 
  3.26  is a licensed ambulance service designated to serve a primary 
  3.27  service area on or before the effective date of this act.