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SECTION 41.03
Definitions
Mental Hygiene (MHY) CHAPTER 27, TITLE E, ARTICLE 41
§ 41.03 Definitions.

When used in this article:

1. "local government" means a county, except a county within the city
of New York, and the city of New York.

2. "charter government" means a local government which has its charter
under article IX of the constitution and the municipal home rule law;
and includes the city of New York.

3. "local services" includes services for individuals with mental
illness or developmental disabilities whose conditions, including but
not limited to cerebral palsy and epilepsy, are associated with mental
disabilities, and those suffering from alcoholism, alcohol abuse,
substance abuse or substance dependence, which are provided by a local
government or by a voluntary agency pursuant to a contract with a local
governmental unit or the office of mental health.

4. "local facility" means a facility offering local services and
includes a community mental health and developmental disabilities
facility as defined in section three of the facilities development
corporation act and, for the purposes of this article, a mental hygiene
facility, as defined in said section, to be made available for use in
providing local services under lease, sublease, license or permit from
the facilities development corporation to one or more local governmental
units or to a voluntary agency at the request of a commissioner of an
office in the department.

5. "local governmental unit" means the unit of local government given
authority in accordance with this chapter by local government to provide
local services.

6. "board" means a community services board for services to
individuals with mental illness and developmental disabilities, those
suffering from alcoholism, alcohol abuse, substance abuse or substance
dependence.

7. "director" means the director of community services, who is the
chief executive officer of a local governmental unit, by whatever title
known.

8. "capital costs" means the costs of a local government, a voluntary
agency, or the facilities development corporation with respect to the
acquisition of real property estates, interests, and cooperative
interests in realty, their design, construction, reconstruction,
rehabilitation and improvement, original furnishings and equipment, site
development, and appurtenances of a local facility. Capital costs do not
include any of the foregoing costs paid under provisions of law other
than this chapter.

9. (a) "operating costs" means expenditures, excluding capital costs,
incurred in the operation and maintenance of the community mental
health, developmental disabilities, and alcoholism services board and of
local facilities in accordance with this article and the regulations of
the commissioner, by a local government or by a voluntary agency
pursuant to a contract with a local governmental unit.

(b) Subject to the regulations of the commissioner, operating costs
shall include that part of rental costs paid to those community mental
health, developmental disabilities, alcoholism, or substance abuse
services companies, which represents interest accrued after January
first, nineteen hundred eighty-one and is paid on obligations incurred
by such companies, organized pursuant to article seventy-five of this
chapter and which participated in mortgage financing in accordance with
chapter one thousand thirty-four of the laws of nineteen hundred
sixty-nine, (ii) rentals paid to the facilities development corporation,
(iii) salaries of or per diem compensation to board members, (iv) costs
for which state aid or reimbursement is claimed under provisions of law
other than this article.

(c) Operating costs may include interest incurred on any obligation
which is necessarily related to the efficient and economic delivery of
approved services to persons with alcoholism, substance abuse addiction,
mental illness or developmental disabilities, subject to the
commissioner's certification of the reasonableness of the interest
expense. Interest as authorized by this subdivision shall only include
reasonable and competitive rates of interest incurred in accordance with
regulations promulgated by the commissioner.

(d) Subject to the regulations of the commissioner, operating costs
shall include rent incurred, or depreciation and interest expenditures
incurred, in connection with the design, construction, acquisition,
reconstruction, rehabilitation or improvement of a local facility;
provided that where the rent, financing or refinancing of the design,
construction, acquisition, reconstruction, rehabilitation or improvement
of a local facility is through the facilities development corporation,
operating costs shall include the debt service to be paid to amortize
obligations, including principal and interest, issued by the New York
state medical care facilities finance agency to finance or refinance the
capital costs of such facilities.

10. "net operating costs" means operating costs from which have been
deducted the following:

(a) revenues for operating costs received from other state agencies or
another local government pursuant to an agreement to purchase local
services.

(b) other income realized in the operation of a specified program,
except for income realized by a voluntary not-for-profit agency from
industrial contracts entered into pursuant to its operation of a
sheltered workshop from which have been deducted the expenses of such
workshop incurred in producing such income and which are claimed for
state aid.

(c) federal aid received for operating costs.

(d) fees received from patients or on their behalf from private and
public health insurance and medical aid programs.

11. "voluntary agency" means a corporation organized or existing
pursuant to the not-for-profit corporation law for the purpose of
providing local services.

12. "local services plan" means the plan of local services which is
submitted by a local governmental unit and approved by the commissioner
pursuant to section 41.18 of this article.

13. "community support services" means clinical, social,
rehabilitative and other mental health services, programs and related
administrative activities designed to enhance the community living
skills and prevent the unnecessary hospitalization of the seriously
impaired, chronically mentally ill population, who are eligible to
receive services pursuant to section 41.47 of this article.