S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9831
 
                           I N  A S S E M B L Y
 
                              April 19, 2022
                                ___________
 
 Introduced  by M. of A. STECK -- read once and referred to the Committee
   on Alcoholism and Drug Abuse
 
 AN ACT to amend the mental hygiene  law,  in  relation  to  funding  for
   services of the office of addiction services and supports
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision (a) of section 25.03 of the mental hygiene law,
 as amended by section 4 of part G of chapter 56 of the laws of 2013,  is
 amended to read as follows:
   (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 agency [up to
 one  hundred  per  centum  of  the  approved net operating costs of such
 program] BASED ON A PAYMENT FOR SERVICES MODEL DEVELOPED BY THE  OFFICE,
 IN CONSULTATION WITH OPERATORS OF FUNDED PROGRAMS, FOR PROGRAMS operated
 by a local governmental unit or voluntary agency, and state aid may also
 be  granted  to  a  program  operated  by a local governmental unit or a
 voluntary agency for capital costs  associated  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 agency is in  compli-
 ance  with all regulations promulgated by the commissioner regarding the
 financing of capital projects. Such state aid [for approved net  operat-
 ing  costs]  shall be made available by way of advance or reimbursement,
 through either contracts entered into between the office and such volun-
 tary agency or by distribution of such state aid to  local  governmental
 units  through  [a  grant] THE process pursuant to section 25.11 of this
 article.
   § 2. Subdivisions (a) and (b) of section 25.11 of the  mental  hygiene
 law,  as added by section 9 of part G of chapter 56 of the laws of 2013,
 are amended to read as follows:
   (a) Local governmental units shall be granted state aid by a state aid
 funding authorization letter issued by  the  office  [for  approved  net
 operating  costs] BASED ON A PAYMENT FOR SERVICES MODEL DEVELOPED BY THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14360-01-2
 A. 9831                             2
 
 OFFICE, IN CONSULTATION WITH OPERATORS OF FUNDED PROGRAMS, for voluntary
 agencies [to support the base amount  of  state  aid  provided  to  such
 voluntary  agencies  for the prior year] provided that the local govern-
 mental  unit  has approved and submitted budgets for the voluntary agen-
 cies to the office. The voluntary  agency  budgets  shall  identify  the
 nature  of the services to be provided which must be consistent with the
 local services plan submitted by the local governmental unit pursuant to
 article forty-one of this chapter, the areas to be served and include  a
 description of the voluntary agency contributions and local governmental
 unit  funding  provided.  The  local  governmental unit shall enter into
 contracts with the voluntary agencies receiving  such  state  aid.  Such
 contracts shall include funding requirements set by the office including
 but  not  limited  to responsibilities of voluntary agencies relating to
 work scopes, program performance and operations, [application of program
 income, prohibited use of funds,] recordkeeping and  audit  obligations.
 Upon  designation  by  the office, local governmental units shall notify
 voluntary agencies as to the source of funding received by  such  volun-
 tary agencies.
   (b)  State  aid  made  available  to  a  local  governmental unit [for
 approved net operating costs] BASED ON  A  PAYMENT  FOR  SERVICES  MODEL
 DEVELOPED  BY  THE  OFFICE,  IN  CONSULTATION  WITH  OPERATORS OF FUNDED
 PROGRAMS for a program operated by a voluntary agency or a local govern-
 mental unit may be reduced where a review  of  such  voluntary  agency's
 prior  year's  budget  and/or  performance  indicates[:    (1)] that the
 program operated by a local governmental unit or  voluntary  agency  has
 failed  to  meet  minimum  performance standards and requirements of the
 office including, but not limited to,  maintaining  service  utilization
 rates  and productivity standards as set by the office provided however,
 that upon determination that the program  is  not  meeting  the  minimum
 standards  and  requirements, the office shall notify such program oper-
 ated by a local governmental unit or voluntary agency of their deficien-
 cies, and if appropriate, a corrective action plan that includes specif-
 ic  actions  to  address  any   deficiencies   and   a   timetable   for
 implementation shall be developed. State aid may be reduced if a correc-
 tive  action plan is not approved by the office or is not implemented in
 a timely and satisfactory manner[;
   (2) that the voluntary agency has had an increase in voluntary  agency
 contributions  that  reduces the approved net operating costs necessary,
 except where the office has approved an alternative use of  such  volun-
 tary  agency  contributions  or  such voluntary agency contributions are
 necessary to ensure financial viability].
   § 3. This act shall take effect January 1, 2023  and  shall  apply  to
 program budgets developed on or after such date.