S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4438--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced  by M. of A. STECK -- read once and referred to the Committee
   on Alcoholism and Drug Abuse -- recommitted to the Committee on  Alco-
   holism  and  Drug  Abuse in accordance with Assembly Rule 3, sec. 2 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 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
 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 compliance with all regulations promulgated by the commis-
 sioner 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]  THE process pursuant to
 section 25.11 of this article.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06656-02-4
 A. 4438--A                          2
              

 
   § 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
 OFFICE  for  voluntary agencies [to support the base amount of state aid
 provided to such voluntary agencies for the prior  year]  provided  that
 the  local  governmental unit has approved and submitted budgets for the
 voluntary agencies 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  govern-
 mental  unit pursuant to article forty-one of this chapter, the areas to
 be served and include a description of  the  voluntary  agency  contrib-
 utions  and  local governmental unit funding provided. The local govern-
 mental unit shall enter  into  contracts  with  the  voluntary  agencies
 receiving  such state aid. Such contracts shall include funding require-
 ments 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 voluntary 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 for a program operated by a voluntary agency  or
 a  local  governmental unit may be reduced where a review of such volun-
 tary 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  utili-
 zation  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
 operated by a local governmental unit or voluntary agency of their defi-
 ciencies,  and  if  appropriate,  a corrective action plan that includes
 specific actions to address any deficiencies and a timetable for  imple-
 mentation  shall  be developed. State aid may be reduced if a corrective
 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 on the one hundred eightieth day and
 shall apply to program budgets developed on or after such date.