S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5371
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Alcoholism  and  Substance
   Use Disorders
 
 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06656-01-3
 S. 5371                             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, 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, 2024  and  shall  apply  to
 program budgets developed on or after such date.