S T A T E O F N E W Y O R K
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11644
I N A S S E M B L Y
July 29, 2026
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Introduced by COMMITTEE ON RULES -- (at request of 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 requiring
contractors with the office of alcoholism and substance abuse services
maintain an operating reserve
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision (a) of section 25.01 of the
mental hygiene law, as amended by section 3 of part G of chapter 56 of
the laws of 2013, is amended to read as follows:
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, AND THE MAINTENANCE OF AN OPERATING RESERVE TO BE USED TO
ADDRESS FINANCIAL ISSUES THAT OCCUR DURING A CONTRACT YEAR. Operating
expenses do not include capital costs and debt service unless such
expenses are related to the rent, financing or refinancing of the
design, construction, acquisition, reconstruction, rehabilitation 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.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16187-01-6