STATE OF NEW YORK
________________________________________________________________________
898--A
Cal. No. 247
2017-2018 Regular Sessions
IN SENATE
January 5, 2017
___________
Introduced by Sens. AMEDORE, AKSHAR, FUNKE, HELMING, MURPHY, O'MARA,
ORTT, PHILLIPS, RANZENHOFER, RITCHIE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Alcoholism
and Drug Abuse -- recommitted to the Committee on Alcoholism and Drug
Abuse in accordance with Senate Rule 6, sec. 8 -- reported favorably
from said committee, ordered to first and second report, ordered to a
third reading, amended and ordered reprinted, retaining its place in
the order of third reading
AN ACT to amend the mental hygiene law, in relation to authorizing the
office of alcoholism and substance abuse services to provide funding
to substance use disorder and/or compulsive gambling programs operated
by for profit agencies
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 25.01 of the mental hygiene law, as added by chap-
2 ter 471 of the laws of 1980, paragraphs 1, 2, 3 and 4 as amended and
3 paragraphs 5, 6, 7 and 8 of subdivision (a) as added by section 3 of
4 part G of chapter 56 of the laws of 2013, is amended to read as follows:
5 § 25.01 Definitions.
6 [(a)] As used [herein] in this article:
7 [1.] (a) "Local governmental unit" shall have the same meaning as that
8 contained in article forty-one of this chapter.
9 [2.] (b) "Operating expenses" shall mean expenditures approved by the
10 office and incurred for the maintenance and operation of substance use
11 disorder and/or compulsive gambling programs, including but not limited
12 to expenditures for treatment, administration, personnel, and contractu-
13 al services. Operating expenses do not include capital costs and debt
14 service unless such expenses are expenditures submitted by a voluntary
15 agency or local government unit and are related to the rent, financing
16 or refinancing of the design, construction, acquisition, reconstruction,
17 rehabilitation or improvement of a substance use disorder and/or compul-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03835-03-8
S. 898--A 2
1 sive gambling program facility pursuant to the mental hygiene facilities
2 finance program through the dormitory authority of the state of New York
3 (DASNY; successor to the Facilities Development Corporation), or other-
4 wise approved by the office.
5 [3.] (c) "Debt service" shall mean amounts, subject to the approval of
6 the office, required to be paid to amortize obligations including prin-
7 cipal and interest, assumed by or on behalf of a voluntary agency or a
8 program operated by a local governmental unit.
9 [4.] (d) "Capital costs" shall mean the costs of a program operated by
10 a local governmental unit [or], a voluntary agency, or other business
11 entity with respect to the acquisition of real property estates, inter-
12 ests, and cooperative interests in realty, their design, construction,
13 reconstruction, rehabilitation and improvement, original furnishings and
14 equipment, site development, and appurtenances of a facility.
15 [5.] (e) "State aid" shall mean financial support provided through
16 appropriations of the office to support the provision of substance use
17 disorder treatment, compulsive gambling, prevention or other authorized
18 services, with the exclusion of appropriations for the purpose of
19 medical assistance.
20 [6.] (f) "Voluntary agency contributions" shall mean revenue sources
21 of voluntary agencies exclusive of state aid and local tax levy.
22 [7.] (g) "Approved net operating cost" shall mean the remainder of
23 total operating expenses approved by the office, less all sources of
24 revenue, including voluntary agency contributions and local tax levy.
25 [8.] (h) "Voluntary agency" shall mean a corporation organized or
26 existing pursuant to the not-for-profit corporation law for the purpose
27 of providing substance use disorder, treatment, compulsive gambling,
28 prevention or other authorized services.
29 (i) "Other business entity" shall mean any corporation, association,
30 partnership, limited liability company, limited liability partnership,
31 or other legal entity, that is not also a voluntary agency, and provide
32 substance use disorder treatment, compulsive gambling, prevention, or
33 other authorized services.
34 § 2. Subdivision (a) of section 25.03 of the mental hygiene law, as
35 amended by section 4 of part G of chapter 56 of the laws of 2013, is
36 amended to read as follows:
37 (a) In accordance with the provisions of this article, and within
38 appropriations made available, the office may provide state aid to a
39 program operated by a local governmental unit or voluntary agency up to
40 one hundred per centum of the approved net operating costs of such
41 program operated by a local governmental unit or voluntary agency, and
42 state aid may also be granted to a program operated by a local govern-
43 mental unit [or], a voluntary agency, or other business entity for capi-
44 tal costs associated with the provision of services at a rate of up to
45 one hundred percent of approved capital costs. Such state aid shall not
46 be granted unless and until such program operated by a local govern-
47 mental unit [or], voluntary agency, or other business entity is in
48 compliance with all regulations promulgated by the commissioner regard-
49 ing the financing of capital projects. Such state aid for approved net
50 operating costs shall be made available by way of advance or reimburse-
51 ment, through either contracts entered into between the office and such
52 voluntary agency or by distribution of such state aid to local govern-
53 mental units through a grant process pursuant to section 25.11 of this
54 article.
S. 898--A 3
1 § 3. Section 25.05 of the mental hygiene law, as amended by section 5
2 of part G of chapter 56 of the laws of 2013, is amended to read as
3 follows:
4 § 25.05 Reimbursement from other sources.
5 The office shall not provide a voluntary agency [or], a program oper-
6 ated by a local governmental unit, or other business entity with finan-
7 cial support for obligations incurred by or on behalf of such program or
8 agency for substance use disorder and/or compulsive gambling services
9 for which reimbursement is or may be claimed under any provision of law
10 other than this article.
11 § 4. Section 25.07 of the mental hygiene law, as amended by section 7
12 of part G of chapter 56 of the laws of 2013, is amended to read as
13 follows:
14 § 25.07 Non-substitution.
15 A voluntary agency [or], a program operated by a local governmental
16 unit, or other business entity shall not substitute state monies for
17 cash contributions, federal aid otherwise committed to or intended for
18 use in such program or by such agency, revenues derived from the opera-
19 tion of such program or agency, or the other resources available for use
20 in the operation of the program or agency.
21 § 5. Section 25.09 of the mental hygiene law, as amended by section 8
22 of part G of chapter 56 of the laws of 2013, is amended to read as
23 follows:
24 § 25.09 Administrative costs.
25 Subject to the approval of the director of the budget, the office
26 shall establish a limit on the amount of financial support which may be
27 advanced or reimbursed to a voluntary agency [or], a program operated by
28 a local governmental unit, or other business entity for the adminis-
29 tration of a program.
30 § 6. This act shall take effect immediately.