S T A T E   O F   N E W   Y O R K
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                                  8517

                          I N  A S S E M B L Y

                            January 21, 2014
                               ___________

Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
  tee on Mental Health

AN ACT to amend the mental hygiene law, in relation to community  mental
  health  reinvestment  services;  to  amend  the  state finance law, in
  relation to the community mental health reinvestment account;  and  to
  repeal  certain  provisions  of  the  mental hygiene law and the state
  finance law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section  1.03  of  the mental hygiene law is amended by
adding a new subdivision 59 to read as follows:
  59. "COMMUNITY MENTAL HEALTH REINVESTMENT  SERVICES"  SHALL  MEAN  THE
FOLLOWING  PERSON-CENTERED  AND EVIDENCE-BASED SERVICES FOR PERSONS WITH
SERIOUS MENTAL ILLNESS, INCLUDING CHILDREN AND  ADOLESCENTS  AND  ADULTS
WITH  SERIOUS  EMOTIONAL  DISTURBANCES  AND  CO-OCCURRING  DISORDERS, AS
DEFINED ELSEWHERE IN THIS CHAPTER:
  (A) EMERGENCY AND CRISIS SERVICES  PROVIDED  IN  A  PROGRAM  LICENSED,
CERTIFIED, OPERATED, OR FUNDED BY THE OFFICE;
  (B) CASE MANAGEMENT AND INTENSIVE CASE MANAGEMENT SERVICES;
  (C)  OUTPATIENT  SERVICES WHICH PROVIDE AN ADEQUATE LEVEL OF TREATMENT
AND REHABILITATION TO PERSONS LIVING WITH MENTAL ILLNESS PROVIDED  IN  A
PROGRAM LICENSED, CERTIFIED, OPERATED OR FUNDED BY THE OFFICE;
  (D)  RESIDENTIAL  SERVICES, OTHER THAN INPATIENT SERVICES, PROVIDED IN
PROGRAMS LICENSED, CERTIFIED, OPERATED OR FUNDED BY  THE  OFFICE,  WHICH
MAY  INCLUDE,  BUT ARE NOT LIMITED TO, COMMUNITY RESIDENCES, RESIDENTIAL
CARE  CENTERS  FOR  ADULTS,  FAMILY  CARE  HOMES,  CRISIS  RESIDENCE  OR
SUPPORTED HOUSING;
  (E)  COMMUNITY  SUPPORT SERVICES AS DEFINED IN SUBDIVISION THIRTEEN OF
SECTION 41.03 OF THIS CHAPTER;
  (F) OTHER SUPPORT SERVICES, INCLUDING, BUT NOT LIMITED TO, PSYCHIATRIC
REHABILITATION,  CLIENT   ADVOCACY,   SUPPORTED   EMPLOYMENT,   CONSUMER
SELF-HELP,  FAMILY  SUPPORT,  PEER  SUPPORT  AND  VOCATIONAL TRAINING AS
APPROVED BY THE OFFICE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13425-07-4
              

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  (G) SERVICES FOR  SPECIAL  POPULATIONS  INCLUDING  THOSE  LIVING  WITH
MENTAL  ILLNESSES  AND HOMELESSNESS, CO-OCCURRING SUBSTANCE ABUSE DISOR-
DERS, AND/OR PHYSICAL DISABILITIES THAT MAY IMPEDE RECOVERY FROM  MENTAL
ILLNESS, PROVIDED BY PROGRAMS LICENSED, CERTIFIED, OPERATED OR FUNDED BY
THE OFFICE; AND
  (H) ANY OTHER SERVICES THAT MEET THE NEEDS OF CHILDREN AND ADOLESCENTS
AND  ADULTS PROVIDED BY PROGRAMS LICENSED, CERTIFIED, OPERATED OR FUNDED
BY THE OFFICE.
  S 2. Subdivision (a) of section 7.15 of the  mental  hygiene  law,  as
amended  by  section  3  of part I of chapter 58 of the laws of 2005, is
amended to read as follows:
  (a) The commissioner shall plan, promote, establish, develop,  coordi-
nate, evaluate, and conduct programs and services of prevention, diagno-
sis,   examination,   care,  treatment,  rehabilitation,  training,  and
research for the benefit  of  the  mentally  ill.  Such  programs  shall
include but not be limited to in-patient, out-patient, partial hospital-
ization,  day  care,  emergency, rehabilitative, COMMUNITY MENTAL HEALTH
REINVESTMENT SERVICES PURSUANT TO SECTION 41.55  OF  THIS  CHAPTER,  and
other  appropriate  treatments  and  services.  He or she shall take all
actions that are  necessary,  desirable,  or  proper  to  implement  the
purposes of this chapter and to carry out the purposes and objectives of
the  department  within the amounts made available therefor by appropri-
ation, grant, gift, devise,  bequest,  or  allocation  from  the  mental
health  services  fund  established  under section ninety-seven-f of the
state finance law.
  S 3. Subdivision (a) of section 41.13 of the  mental  hygiene  law  is
amended by adding a new paragraph 17 to read as follows:
  17.  THE  OFFICE  OF  MENTAL HEALTH SHALL ALSO BE RESPONSIBLE FOR SUCH
PROGRAM DEVELOPMENT RELATING TO  COMMUNITY  MENTAL  HEALTH  REINVESTMENT
SERVICES  IN  AREAS WHERE THE RESPONSIBLE LOCAL GOVERNMENT UNIT DOES NOT
RECEIVE A GRANT OF STATE AID SPECIFICALLY FOR  THE  PURPOSE  OF  FUNDING
COMMUNITY MENTAL HEALTH REINVESTMENT SERVICES PURSUANT TO THIS CHAPTER.
  S  4.  Section  41.55  of the mental hygiene law is REPEALED and a new
section 41.55 is added to read as follows:
S 41.55 COMMUNITY MENTAL HEALTH REINVESTMENT PROGRAM.
  (A) COMMUNITY MENTAL HEALTH REINVESTMENT FUNDS SHALL BE ANNUALLY ALLO-
CATED BY THE COMMISSIONER BASED UPON THE FOLLOWING CRITERIA:
  (1) THE EFFICIENCY AND EFFECTIVENESS OF THE USE OF FUNDING WITHIN  THE
LOCAL  GOVERNMENTAL  UNIT  FOR  THE DELIVERY OF SERVICES TO PERSONS WITH
SERIOUS MENTAL ILLNESS IN ORDER TO ASSURE THAT RESOURCES ARE MADE AVAIL-
ABLE TO FUND MENTAL HEALTH  SERVICES  TO  PERSONS  DISCHARGED  INTO  THE
COMMUNITY; AND
  (2)  OTHER  RELEVANT  FACTORS THAT REQUIRE THE MAINTENANCE OF EXISTING
MENTAL  HEALTH  SERVICES  AND  THE  DEVELOPMENT  OF  NEW  MENTAL  HEALTH
SERVICES.
  (B)  AMOUNTS  PROVIDED  PURSUANT TO THIS SECTION SHALL ONLY BE USED TO
FUND COMMUNITY MENTAL HEALTH REINVESTMENT SERVICES, MENTAL HEALTH  WORK-
FORCE  RELATED  ACTIVITIES,  INCLUDING  RECRUITMENT AND RETENTION INITI-
ATIVES AND TRAINING PROGRAMS, AND OTHER GENERAL PROGRAMMATIC  ACTIVITIES
TO  HELP  ENSURE  A  STABLE  MENTAL HEALTH SYSTEM. SUCH GRANTS AND OTHER
FUNDS SHALL NOT BE USED FOR CAPITAL COSTS ASSOCIATED WITH  THE  DEVELOP-
MENT OF COMMUNITY MENTAL HEALTH REINVESTMENT SERVICES.
  (C)  PRIOR  TO  ENTERING  INTO CONTRACTS FOR THE PROVISION OF SERVICES
FUNDED PURSUANT TO SUBDIVISION (B) OF THIS SECTION, THE OFFICE OF MENTAL
HEALTH AND ANY  LOCAL  GOVERNMENTAL  UNIT  RECEIVING  SUCH  FUNDS  SHALL
CONSIDER THE FOLLOWING:

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  (1)  THE SERVICE NEEDS OF PERSONS WITH SERIOUS MENTAL ILLNESS, INCLUD-
ING CHILDREN AND ADOLESCENTS WITH SERIOUS EMOTIONAL DISTURBANCES, IN THE
GEOGRAPHICAL AREA IN WHICH  THE  COMMUNITY  MENTAL  HEALTH  REINVESTMENT
PROGRAM OPERATES;
  (2)  THE  CAPACITY OF THE PROGRAM TO MEET IDENTIFIED SERVICE NEEDS AND
SPECIFIED PERFORMANCE STANDARDS RELATED TO ACCESS, ADMISSION,  REFERRAL,
AND SERVICE COORDINATION AND DELIVERY;
  (3)  THE EXTENT TO WHICH COMMUNITY MENTAL HEALTH REINVESTMENT SERVICES
AUTHORIZED BY THE CONTRACT ARE CONSISTENT AND INTEGRATED WITH  THE  PLAN
PREPARED  AND  APPROVED  PURSUANT  TO  SECTION 41.16 OF THIS ARTICLE AND
OTHER APPLICABLE PROVISIONS OF THIS ARTICLE; AND
  (4) THE RELIABILITY AND CAPABILITY  OF  THE  PROVIDER,  INCLUDING  ITS
EXPERTISE,  PRIOR EXPERIENCE, FINANCIAL RESPONSIBILITY, RECORD OF ADHER-
ENCE TO LAW, RECORD OF PROVIDING QUALITY CARE AND SERVICES, AND  ABILITY
TO DELIVER APPROPRIATE SERVICES IN A COST-EFFECTIVE AND EFFICIENT MANNER
TO  PERSONS WITH SERIOUS MENTAL ILLNESS.  THE COMMISSIONER IS AUTHORIZED
TO PROMULGATE REGULATIONS TO ESTABLISH MINIMUM  CONTRACTUAL  OBLIGATIONS
IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
  (D)  THE  COMMISSIONER IS AUTHORIZED AND EMPOWERED TO MAKE INSPECTIONS
AND EXAMINE RECORDS OF A LOCAL GOVERNMENTAL  UNIT  RECEIVING  STATE  AID
UNDER THIS SECTION OR A PROVIDER OF SERVICES FUNDED PURSUANT TO SUBDIVI-
SION  (B)  OF  THIS SECTION. SUCH EXAMINATION SHALL INCLUDE ALL MEDICAL,
SERVICE AND FINANCIAL RECORDS, RECEIPTS, DISBURSEMENTS, CONTRACTS, LOANS
AND OTHER MONEYS RELATING TO THE FINANCIAL OPERATION OF THE PROVIDER.
  (E) THE AMOUNT OF COMMUNITY MENTAL HEALTH REINVESTMENT FUNDS  FOR  THE
OFFICE  OF  MENTAL  HEALTH  SHALL BE DETERMINED IN THE ANNUAL BUDGET AND
SHALL INCLUDE THE AMOUNT OF ACTUAL STATE OPERATIONS GENERAL FUND  APPRO-
PRIATION  REDUCTIONS,  INCLUDING PERSONAL SERVICE SAVINGS AND OTHER THAN
PERSONAL SERVICE SAVINGS DIRECTLY ATTRIBUTED TO  EACH  CHILD  AND  ADULT
NON-GERIATRIC  INPATIENT BED CLOSURE. FOR THE PURPOSES OF THIS SECTION A
BED SHALL BE CONSIDERED TO BE CLOSED UPON THE ELIMINATION OF FUNDING FOR
SUCH BEDS IN THE EXECUTIVE BUDGET. THE  APPROPRIATION  REDUCTIONS  AS  A
RESULT  OF  INPATIENT  BED  CLOSURES  SHALL  BE NO LESS THAN ONE HUNDRED
PERCENT AND SHALL BE NO LESS THAN ONE HUNDRED TEN  THOUSAND  DOLLARS  OF
THE CALCULATED VALUE OF SAVINGS PER BED ON A FULL ANNUAL BASIS, AS ANNU-
ALLY  CALCULATED  AND  RECOMMENDED  BY  THE COMMISSIONER, SUBJECT TO THE
APPROVAL OF THE DIRECTOR OF THE BUDGET, IN THE EXECUTIVE BUDGET  REQUEST
PRIOR TO THE FISCAL YEAR FOR WHICH THE EXECUTIVE BUDGET IS BEING SUBMIT-
TED.    THE  METHODOLOGIES USED TO CALCULATE THE PER BED CLOSURE SAVINGS
SHALL BE DEVELOPED BY THE COMMISSIONER AND THE DIRECTOR OF  THE  BUDGET.
IN NO EVENT SHALL THE FULL ANNUAL VALUE OF COMMUNITY MENTAL HEALTH REIN-
VESTMENT  PROGRAMS  ATTRIBUTABLE TO BEDS CLOSED AS A RESULT OF NET INPA-
TIENT CENSUS DECLINE EXCEED THE TWELVE MONTH  VALUE  OF  THE  OFFICE  OF
MENTAL  HEALTH  STATE  OPERATIONS GENERAL FUND REDUCTIONS RESULTING FROM
SUCH CENSUS DECLINE. SUCH REINVESTMENT AMOUNT SHALL BE MADE AVAILABLE IN
THE SAME PROPORTION BY WHICH THE OFFICE OF MENTAL HEALTH'S  STATE  OPER-
ATIONS  GENERAL FUND APPROPRIATIONS ARE REDUCED EACH YEAR AS A RESULT OF
CHILD AND ADULT NON-GERIATRIC  INPATIENT  BED  CLOSURES  DUE  TO  CENSUS
DECLINE.
  (F) ADDITIONAL REINVESTMENT AMOUNTS SHALL BE MADE AVAILABLE FOR APPRO-
PRIATION IN THE EXECUTIVE BUDGET BASED UPON STATE OPERATION GENERAL FUND
APPROPRIATIONS  DIRECTLY  ATTRIBUTED  TO  THE  CO-LOCATION OR CLOSURE OF
PSYCHIATRIC CENTERS MADE PURSUANT TO LAW.  SUCH  AMOUNT  SHALL  BE  MADE
AVAILABLE  AT  THE  SAME PROPORTION BY WHICH THE OFFICE OF MENTAL HEALTH
STATE OPERATIONS GENERAL FUND APPROPRIATIONS ARE REDUCED EACH YEAR AS  A
RESULT OF FACILITY CO-LOCATIONS AND CLOSURES.

A. 8517                             4

  (G)  THE  ANNUAL  COMMUNITY  MENTAL  HEALTH REINVESTMENT APPROPRIATION
SHALL REFLECT THE AMOUNT OF STATE OPERATIONS GENERAL FUND  APPROPRIATION
REDUCTIONS  RESULTING  FROM  SUBDIVISIONS  (E)  AND (F) OF THIS SECTION.
WITHIN ANY FISCAL YEAR WHERE APPROPRIATION INCREASES ARE RECOMMENDED FOR
THE  COMMUNITY  MENTAL HEALTH REINVESTMENT PROGRAM, INSOFAR AS PROJECTED
INPATIENT CENSUS DECLINE OR FACILITY CO-LOCATIONS  OR  CLOSURES  DO  NOT
OCCUR  AS  ESTIMATED,  AND  STATE OPERATIONS GENERAL FUND SAVINGS DO NOT
RESULT, THEN THE REINVESTMENT APPROPRIATIONS SHALL BE MADE AVAILABLE, AS
NEEDED, FOR TRANSFER FROM THE OFFICE OF MENTAL HEALTH  GENERAL  FUND-AID
TO  LOCALITIES ACCOUNT TO THE OFFICE OF MENTAL HEALTH GENERAL FUND-STATE
PURPOSES ACCOUNT TO PAY FOR ANY NECESSARY INPATIENT EXPENSES. THE  TOTAL
COMMUNITY MENTAL HEALTH REINVESTMENT APPROPRIATION ALSO MAY INCLUDE SUCH
ADDITIONAL  APPROPRIATIONS,  AS  SHALL  BE  DETERMINED  TO BE NEEDED AND
APPROVED BY THE LEGISLATURE, TO FUND ALL THE PROVISIONS OF THIS SECTION.
  (H) AMOUNTS MADE AVAILABLE TO THE COMMUNITY MENTAL HEALTH REINVESTMENT
PROGRAM OF THE OFFICE OF MENTAL HEALTH SHALL BE SUBJECT TO ANNUAL APPRO-
PRIATIONS THEREFOR. UP TO FIFTEEN PERCENT OF THE AMOUNTS SO APPROPRIATED
SHALL BE MADE AVAILABLE FOR STAFF TRAINING,  STAFFING  AT  STATE  MENTAL
HEALTH  FACILITIES  OR TO AID IN WORKFORCE TRANSITION AND AT LEAST SEVEN
PERCENT OF THE REMAINING FUNDS  MAY  BE  ALLOCATED  FOR  STATE  OPERATED
COMMUNITY SERVICES PURSUANT TO THIS SECTION.
  (I)  FOR  PURPOSES OF THIS SECTION, THE TERM "STATE OPERATIONS GENERAL
FUND" SHALL MEAN THE OFFICE OF MENTAL HEALTH  STATE  OPERATIONS  GENERAL
FUND   APPROPRIATIONS   BEFORE  ANY  OFFSET  FROM  THE  SPECIAL  REVENUE
FUNDS-OTHER MISCELLANEOUS SPECIAL REVENUE FUND OR MENTAL HYGIENE PATIENT
INCOME ACCOUNT.
  (J) NO PROVISION IN THIS SECTION SHALL CREATE OR BE DEEMED  TO  CREATE
ANY  RIGHT,  INTEREST  OR  ENTITLEMENT TO SERVICES OR FUNDS THAT ARE THE
SUBJECT OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN WHICH  ADDED
THIS SECTION, OR TO ANY OTHER SERVICES OR FUNDS, WHETHER TO INDIVIDUALS,
LOCALITIES, PROVIDERS OR OTHERS, INDIVIDUALLY OR COLLECTIVELY.
  (K)  ALL  APPROPRIATIONS  FOR  COMMUNITY  MENTAL  HEALTH  REINVESTMENT
SERVICES SHALL BE ADJUSTED IN THE FOLLOWING FISCAL YEAR TO  REFLECT  THE
VARIANCE BETWEEN THE INITIAL AND REVISED ESTIMATES OF CENSUS DECLINE.
  S  5.  Section  97-dddd of the state finance law is REPEALED and a new
section 97-dddd is added to read as follows:
  S 97-DDDD. COMMUNITY MENTAL HEALTH REINVESTMENT ACCOUNT. 1.  THERE  IS
HEREBY  CREATED  IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMIS-
SIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE SPECIAL REVENUE FUND TO
BE KNOWN AS THE COMMUNITY MENTAL HEALTH REINVESTMENT ACCOUNT.
  2. THE COMMISSIONER OF THE OFFICE OF MENTAL HEALTH  SHALL  NOTIFY  THE
DIRECTOR  OF THE BUDGET WHEN THE NUMBER OF CHILDREN'S PSYCHIATRIC CENTER
BEDS OR ADULT, NON-GERIATRIC PSYCHIATRIC CENTER BEDS CLOSED IN  ANY  ONE
YEAR  EXCEEDS THE NUMBER OF BEDS PROJECTED TO BE CLOSED BY THE OFFICE OF
MENTAL HEALTH IN THE EXECUTIVE BUDGET  REQUEST  SUBMITTED  IN  THE  YEAR
PRIOR TO THE FISCAL YEAR FOR WHICH THE EXECUTIVE BUDGET IS BEING SUBMIT-
TED.  NOTWITHSTANDING  ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY
THE DIRECTOR OF THE BUDGET SHALL THEN  TRANSFER  THE  AMOUNT  OF  ACTUAL
STATE   OPERATIONS  GENERAL  FUND  APPROPRIATION  REDUCTIONS,  INCLUDING
PERSONAL SERVICE AND NONPERSONAL SERVICE,  DIRECTLY  ATTRIBUTED  TO  THE
CLOSURE  OF  SUCH  BEDS,  TO THE STATE COMPTROLLER WHO SHALL THEN CREDIT
SUCH APPROPRIATION REDUCTIONS TO THE COMMUNITY MENTAL  HEALTH  REINVEST-
MENT  ACCOUNT. THE PER BED APPROPRIATION REDUCTION SHALL BE NO LESS THAN
ONE HUNDRED PERCENT AND SHALL BE NO LESS THAN ONE HUNDRED  TEN  THOUSAND
DOLLARS OF THE CALCULATED VALUE OF SAVINGS ON A FULL ANNUAL BASIS.

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  3. MONEYS OF THIS ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE,
SHALL  BE  AVAILABLE  TO THE OFFICE OF MENTAL HEALTH FOR DISBURSEMENT TO
LOCAL GOVERNMENTS AND NOT-FOR-PROFIT OPERATED MENTAL HEALTH AGENCIES FOR
SERVICES AND EXPENSES OF COMMUNITY SERVICES REINVESTMENT.
  S 6. This act shall take effect immediately.