S T A T E   O F   N E W   Y O R K
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                                  7446

                            I N  S E N A T E

                               May 2, 2016
                               ___________

Introduced  by  Sen. AMEDORE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Alcoholism and Drug Abuse

AN ACT to amend the mental hygiene law, in relation to  authorizing  the
  office  of  alcoholism and substance abuse services to provide funding
  to substance use disorder and/or compulsive gambling programs operated
  by for profit agencies

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

  Section  1. Section 25.01 of the mental hygiene law, as added by chap-
ter 471 of the laws of 1980, paragraphs 1, 2, 3 and  4  as  amended  and
paragraphs  5,  6,  7  and 8 of subdivision (a) as added by section 3 of
part G of chapter 56 of the laws of 2013, is amended to read as follows:
S 25.01 Definitions.
  [(a)] As used [herein] IN THIS ARTICLE:
  1. "Local governmental unit" shall  have  the  same  meaning  as  that
contained in article forty-one of this chapter.
  2. "Operating expenses" shall mean expenditures approved by the office
and incurred for the maintenance and operation of substance use disorder
and/or  compulsive  gambling  programs,  including  but  not  limited to
expenditures for treatment, administration, personnel,  and  contractual
services.  Operating  expenses  do  not  include  capital costs and debt
service unless such expenses are related to the rent, financing or refi-
nancing of the design, construction, acquisition, reconstruction,  reha-
bilitation  or improvement of a substance use disorder and/or compulsive
gambling program facility pursuant  to  the  mental  hygiene  facilities
finance  program  through  the  dormitory authority [of the state of New
York] (DASNY; successor to the Facilities Development  Corporation),  or
otherwise approved by the office.
  3. "Debt  service"  shall mean amounts, subject to the approval of the
office, required to be paid to amortize obligations including  principal
and  interest,  assumed  by or on behalf of [a voluntary] AN agency or a
program operated by a local governmental unit.
  4. "Capital costs" shall mean the costs of a  program  operated  by  a
local  governmental  unit or [a voluntary] AN agency with respect to the

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

                                                           LBD15162-01-6

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acquisition of real property estates, interests, and cooperative  inter-
ests  in  realty,  their design, construction, reconstruction, rehabili-
tation and improvement, original furnishings and equipment, site  devel-
opment, and appurtenances of a facility.
  5. "State aid" shall mean financial support provided through appropri-
ations  of the office to support the provision of substance use disorder
treatment, compulsive gambling, prevention or other authorized services,
with the exclusion of appropriations for the purpose of medical  assist-
ance.
  6.  ["Voluntary  agency]  "AGENCY  contributions"  shall  mean revenue
sources of [voluntary] agencies exclusive of state  aid  and  local  tax
levy.
  7.  "Approved  net  operating  cost" shall mean the remainder of total
operating expenses approved by the office, less all sources of  revenue,
including [voluntary] agency contributions and local tax levy.
  8. ["Voluntary agency"] "AGENCY" shall mean a corporation organized or
existing  pursuant to the not-for-profit corporation law for the purpose
of, OR ANY BUSINESS ENTITY providing substance use disorder,  treatment,
compulsive gambling, prevention or other authorized services.
  S  2.  Section  25.03 of the mental hygiene law, as amended by chapter
223 of the laws of 1992, subdivisions (a) and (b) as amended and  subdi-
vision  (d) as added by section 4 of part G of chapter 56 of the laws of
2013, is amended to read as follows:
S 25.03 Financial support and disbursement of funds.
  (a) In accordance with the provisions  of  this  article,  and  within
appropriations  made  available,  the  office may provide state aid to a
program operated by a local governmental unit or [voluntary]  AN  agency
up to one hundred per centum of the approved net operating costs of such
program  operated by a local governmental unit or [voluntary] AN agency,
and state aid may also be granted to  a  program  operated  by  a  local
governmental  unit  or [a voluntary] AN agency for capital costs associ-
ated with the provision of services at a  rate  of  up  to  one  hundred
percent  of  approved capital costs. Such state aid shall not be granted
unless and until such program operated by a local governmental  unit  or
[voluntary]  AN agency is in compliance with all regulations promulgated
by the commissioner regarding the financing of  capital  projects.  Such
state  aid  for  approved net operating costs shall be made available by
way of advance or reimbursement, through either contracts  entered  into
between  the  office  and  such [voluntary] agency or by distribution of
such state aid to local  governmental  units  through  a  grant  process
pursuant to section 25.11 of this article.
  (b)  Financial  support by the office shall be subject to the approval
of the director of the budget and within available appropriations.
  (c) All federal financial  assistance  granted  or  allocated  to  the
office  by  the  United  States  shall only be paid out on the audit and
warrant of the comptroller on the certificate of the commissioner or his
authorized representative.
  (d) Nothing in this section shall be construed to require the state to
increase such state aid should  a  local  governmental  unit  choose  to
remove  any  portion  of its local tax levy support of [voluntary] agen-
cies, although the state may choose to do so to address an urgent public
need, or conversely, may choose to reduce its state aid up to  the  same
percentage as the reduction in local tax levy.
  S  3. Section 25.05 of the mental hygiene law, as amended by section 5
of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
follows:

S. 7446                             3

S 25.05 Reimbursement from other sources.
  The  office  shall  not  provide  [a voluntary] AN agency or a program
operated by a local governmental unit with financial support  for  obli-
gations incurred by or on behalf of such program or agency for substance
use disorder and/or compulsive gambling services for which reimbursement
is or may be claimed under any provision of law other than this article.
  S  4. Section 25.07 of the mental hygiene law, as amended by section 7
of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
follows:
S 25.07 Non-substitution.
  [A  voluntary] AN agency or a program operated by a local governmental
unit shall not substitute state monies for cash  contributions,  federal
aid  otherwise  committed  to  or intended for use in such program or by
such agency, revenues derived from the  operation  of  such  program  or
agency, or the other resources available for use in the operation of the
program or agency.
  S  5. Section 25.09 of the mental hygiene law, as amended by section 8
of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
follows:
S 25.09 Administrative costs.
  Subject  to  the  approval  of  the director of the budget, the office
shall establish a limit on the amount of financial support which may  be
advanced  or reimbursed to [a voluntary] AN agency or a program operated
by a local governmental unit for the administration of a program.
  S 6. This act shall take effect immediately.