STATE OF NEW YORK
________________________________________________________________________
1269
2025-2026 Regular Sessions
IN ASSEMBLY
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:
1 Section 1. Subdivision (a) of section 25.03 of the mental hygiene law,
2 as amended by section 4 of part G of chapter 56 of the laws of 2013, is
3 amended to read as follows:
4 (a) In accordance with the provisions of this article, and within
5 appropriations made available, the office may provide state aid to a
6 program operated by a local governmental unit or voluntary agency [up to
7 one hundred per centum of the approved net operating costs of such
8 program] based on a payment for services model developed by the office
9 for programs operated by a local governmental unit or voluntary agency,
10 and state aid may also be granted to a program operated by a local
11 governmental unit or a voluntary agency for capital costs associated
12 with the provision of services at a rate of up to one hundred percent of
13 approved capital costs. Such state aid shall not be granted unless and
14 until such program operated by a local governmental unit or voluntary
15 agency is in compliance with all regulations promulgated by the commis-
16 sioner regarding the financing of capital projects. Such state aid [for
17 approved net operating costs] shall be made available by way of advance
18 or reimbursement, through either contracts entered into between the
19 office and such voluntary agency or by distribution of such state aid to
20 local governmental units through [a grant] the process pursuant to
21 section 25.11 of this article.
22 § 2. Subdivisions (a) and (b) of section 25.11 of the mental hygiene
23 law, as added by section 9 of part G of chapter 56 of the laws of 2013,
24 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
1 (a) Local governmental units shall be granted state aid by a state aid
2 funding authorization letter issued by the office [for approved net
3 operating costs] based on a payment for services model developed by the
4 office for voluntary agencies [to support the base amount of state aid
5 provided to such voluntary agencies for the prior year] provided that
6 the local governmental unit has approved and submitted budgets for the
7 voluntary agencies to the office. The voluntary agency budgets shall
8 identify the nature of the services to be provided which must be
9 consistent with the local services plan submitted by the local govern-
10 mental unit pursuant to article forty-one of this chapter, the areas to
11 be served and include a description of the voluntary agency contrib-
12 utions and local governmental unit funding provided. The local govern-
13 mental unit shall enter into contracts with the voluntary agencies
14 receiving such state aid. Such contracts shall include funding require-
15 ments set by the office including but not limited to responsibilities of
16 voluntary agencies relating to work scopes, program performance and
17 operations, [application of program income, prohibited use of funds,]
18 recordkeeping and audit obligations. Upon designation by the office,
19 local governmental units shall notify voluntary agencies as to the
20 source of funding received by such voluntary agencies.
21 (b) State aid made available to a local governmental unit [for
22 approved net operating costs] based on a payment for services model
23 developed by the office for a program operated by a voluntary agency or
24 a local governmental unit may be reduced where a review of such volun-
25 tary agency's prior year's budget and/or performance indicates[: (1)]
26 that the program operated by a local governmental unit or voluntary
27 agency has failed to meet minimum performance standards and requirements
28 of the office including, but not limited to, maintaining service utili-
29 zation rates and productivity standards as set by the office provided
30 however, that upon determination that the program is not meeting the
31 minimum standards and requirements, the office shall notify such program
32 operated by a local governmental unit or voluntary agency of their defi-
33 ciencies, and if appropriate, a corrective action plan that includes
34 specific actions to address any deficiencies and a timetable for imple-
35 mentation shall be developed. State aid may be reduced if a corrective
36 action plan is not approved by the office or is not implemented in a
37 timely and satisfactory manner[;
38 (2) that the voluntary agency has had an increase in voluntary agency
39 contributions that reduces the approved net operating costs necessary,
40 except where the office has approved an alternative use of such volun-
41 tary agency contributions or such voluntary agency contributions are
42 necessary to ensure financial viability].
43 § 3. This act shall take effect on the one hundred eightieth day and
44 shall apply to program budgets developed on or after such date.
