S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1269
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2025
                                ___________
 
 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
 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.
   §  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03376-01-5
 A. 1269                             2
              

 
   (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.