S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8313
 
                             I N  S E N A T E
 
                             February 11, 2022
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Alcoholism  and  Substance
   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

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

                                                            LBD14360-01-2
 S. 8313                             2

 operating costs] BASED ON A PAYMENT FOR SERVICES MODEL DEVELOPED BY  THE
 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.