S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8022
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2017
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Alcoholism and Drug Abuse
 
 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:
 
   Section 1. Section 25.01 of the mental hygiene law, as added by  chap-
 ter  471  of  the  laws of 1980, paragraphs 1, 2, 3 and 4 as amended and
 paragraphs 5, 6, 7 and 8 of subdivision (a) as added  by  section  3  of
 part G of chapter 56 of the laws of 2013, is amended to read as follows:
 § 25.01 Definitions.
   [(a)] As used [herein] IN THIS ARTICLE:
   1. "Local  governmental  unit"  shall  have  the  same meaning as that
 contained in article forty-one of this chapter.
   2. "Operating expenses" shall mean expenditures approved by the office
 and incurred for the maintenance and operation of substance use disorder
 and/or compulsive  gambling  programs,  including  but  not  limited  to
 expenditures  for  treatment, administration, personnel, and contractual
 services. Operating expenses do  not  include  capital  costs  and  debt
 service unless such expenses are related to the rent, financing or refi-
 nancing  of the design, construction, acquisition, reconstruction, reha-
 bilitation or improvement of a substance use disorder and/or  compulsive
 gambling  program  facility  pursuant  to  the mental hygiene facilities
 finance program through the dormitory authority [of  the  state  of  New
 York]  (DASNY;  successor to the Facilities Development Corporation), or
 otherwise approved by the office.
   3. "Debt service" shall mean amounts, subject to the approval  of  the
 office,  required to be paid to amortize obligations including principal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03835-01-7
              

 A. 8022                             2
 
 and interest, assumed by or on behalf of [a voluntary] AN  agency  or  a
 program operated by a local governmental unit.
   4. "Capital  costs"  shall  mean  the costs of a program operated by a
 local governmental unit or [a voluntary] AN agency with respect  to  the
 acquisition  of real property estates, interests, and cooperative inter-
 ests in realty, their design,  construction,  reconstruction,  rehabili-
 tation  and improvement, original furnishings and equipment, site devel-
 opment, and appurtenances of a facility.
   5. "State aid" shall mean financial support provided through appropri-
 ations of the office to support the provision of substance use  disorder
 treatment, compulsive gambling, prevention or other authorized services,
 with  the exclusion of appropriations for the purpose of medical assist-
 ance.
   6. ["Voluntary  agency]  "AGENCY  contributions"  shall  mean  revenue
 sources  of  [voluntary]  agencies  exclusive of state aid and local tax
 levy.
   7. "Approved net operating cost" shall mean  the  remainder  of  total
 operating  expenses approved by the office, less all sources of revenue,
 including [voluntary] agency contributions and local tax levy.
   8. ["Voluntary agency"] "AGENCY" shall mean a corporation organized or
 existing pursuant to the not-for-profit corporation law for the  purpose
 of,  OR ANY BUSINESS ENTITY providing substance use disorder, treatment,
 compulsive gambling, prevention or other authorized services.
   § 2. Section 25.03 of the mental hygiene law, as  amended  by  chapter
 223  of the laws of 1992, subdivisions (a) and (b) as amended and subdi-
 vision (d) as added by section 4 of part G of chapter 56 of the laws  of
 2013, is amended to read as follows:
 § 25.03 Financial support and disbursement of funds.
   (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] AN agency
 up to one hundred per centum of the approved net operating costs of such
 program operated by a local governmental unit or [voluntary] AN  agency,
 and  state  aid  may  also  be  granted to a program operated by a local
 governmental unit or [a voluntary] AN agency for capital  costs  associ-
 ated  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] AN agency is in compliance with all regulations  promulgated
 by  the  commissioner  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 process
 pursuant to section 25.11 of this article.
   (b) Financial support by the office shall be subject to  the  approval
 of the director of the budget and within available appropriations.
   (c)  All  federal  financial  assistance  granted  or allocated to the
 office by the United States shall only be paid  out  on  the  audit  and
 warrant of the comptroller on the certificate of the commissioner or his
 authorized representative.
   (d) Nothing in this section shall be construed to require the state to
 increase  such  state  aid  should  a  local governmental unit choose to
 remove any portion of its local tax levy support  of  [voluntary]  agen-
 cies, although the state may choose to do so to address an urgent public

 A. 8022                             3
 
 need,  or  conversely, may choose to reduce its state aid up to the same
 percentage as the reduction in local tax levy.
   §  3. Section 25.05 of the mental hygiene law, as amended by section 5
 of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
 follows:
 § 25.05 Reimbursement from other sources.
   The  office  shall  not  provide  [a voluntary] AN agency or a program
 operated by a local governmental unit with financial support  for  obli-
 gations incurred by or on behalf of such program or agency for substance
 use disorder and/or compulsive gambling services for which reimbursement
 is or may be claimed under any provision of law other than this article.
   §  4. Section 25.07 of the mental hygiene law, as amended by section 7
 of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
 follows:
 § 25.07 Non-substitution.
   [A  voluntary] AN agency or a program operated by a local governmental
 unit shall not substitute state monies for cash  contributions,  federal
 aid  otherwise  committed  to  or intended for use in such program or by
 such agency, revenues derived from the  operation  of  such  program  or
 agency, or the other resources available for use in the operation of the
 program or agency.
   §  5. Section 25.09 of the mental hygiene law, as amended by section 8
 of part G of chapter 56 of the laws of  2013,  is  amended  to  read  as
 follows:
 § 25.09 Administrative costs.
   Subject  to  the  approval  of  the director of the budget, the office
 shall establish a limit on the amount of financial support which may  be
 advanced  or reimbursed to [a voluntary] AN agency or a program operated
 by a local governmental unit for the administration of a program.
   § 6. This act shall take effect immediately.