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SECTION 41.18
Local services plan; state aid
Mental Hygiene (MHY) CHAPTER 27, TITLE E, ARTICLE 41
§ 41.18 Local services plan; state aid.

(a) A local services plan is a plan for the rendition of local
services. Such a plan must have been developed by the local
governmental unit with the involvement of consumers, consumer groups,
voluntary agencies and other providers of services, in accordance with
the regulations of the commissioner and must be approved by the
commissioner in order to be eligible for state aid. A local services
plan shall contain a comprehensive proposal for annual and intermediate
range plans and expenditures by the local governmental unit and by
voluntary agencies pursuant to contract with such local governmental
unit. A local services plan shall contain provisions to assure that
there is planning and coordination with the delivery of community
support services to mentally ill persons, in accordance with section
41.47 of this article. An annual plan must be supported by specific
budgets.

(b) (i) Local governments shall be granted state aid, in accordance
with the provisions of this subdivision, for approved net operating
costs pursuant to an approved local services plan at the rate of fifty
percent of the amount incurred during the local fiscal year by such
local governments and by voluntary agencies pursuant to contract with
such local governments; provided, however, that a local government
having a population of less than two hundred thousand shall be granted
state aid at the rate of seventy-five percent for the first one hundred
thousand dollars of its approved net operating costs. Notwithstanding
the foregoing, local governments shall be granted state aid of one
hundred percent of the net operating costs expended by such local
governments and by voluntary agencies pursuant to contract with such
local governments for services to mentally retarded or developmentally
disabled persons who were patients in a state facility for a continuous
period of five or more years following the first day of January,
nineteen hundred sixty-nine, provided that such services are rendered in
accordance with an approved local services plan. Such one hundred
percent state aid for services to such persons shall be also provided to
a voluntary agency pursuant to a direct contract between such agency and
an office of the department whenever such services provided pursuant to
such direct contract are rendered in accordance with an approved local
services plan for servicing such clients. For purposes of determining
whether a person has been a patient in such a facility for a continuous
period of five years or more, if a person who has been discharged or
released from such a facility is thereafter returned to such a facility
within ninety days of the discharge or release, the period of time
between such discharge or release and such return shall not constitute
an interruption of, and shall be counted as part of, the continuous
period.

(ii) Notwithstanding the foregoing, local governments shall be granted
state aid of one hundred percent of the net operating costs expended by
such localities and by voluntary agencies pursuant to contract with such
local governments for approved demonstration projects, not to exceed
three years, for the purpose of conducting alcoholism and alcohol abuse
preventive, rehabilitative and treatment services; provided, however,
that the commissioner of alcoholism and substance abuse services may
extend the demonstration project for one additional year if it is
determined that such extension is necessary and would serve the public
interest.

(iii) Notwithstanding the foregoing, local governments and voluntary
agencies shall be granted state aid of one hundred percent of the net
operating costs expended by such localities and by voluntary agencies
pursuant to contracts with such local governments or with the office of
alcoholism and substance abuse services for alcohol crisis centers,
chemical dependency programs for youth, residential services for
recovering alcoholics and substance abusers and for alcoholism AIDS
coordinators. Such state aid may also be granted to programs transferred
from the task force on integrated projects for youth and chemical
dependency. Such state aid shall also be granted for non-residential
services determined to be necessary to serve the public interest by the
commissioner of alcoholism and substance abuse services provided by
local governments having a population of one hundred twenty-five
thousand or less as determined by the last preceding federal census, or
by voluntary agencies pursuant to contracts with such local governments.

(iv) The commissioner shall file a written explanation for action
taken pursuant to paragraphs (ii) and (iii) of this subdivision with the
director of the division of the budget, the chairman of the senate
finance committee and the chairman of the assembly ways and means
committee. Such one hundred percent state aid for approved demonstration
projects, alcohol crisis centers, chemical dependency programs for
youth, and non-residential rural alcoholism programs, shall also be
provided to a voluntary agency pursuant to a direct contract between
such agency and the office of alcoholism and substance abuse services
whenever such services provided pursuant to such direct contract are
rendered in accordance with an approved local services plan for
alcoholism and alcohol abuse preventive, rehabilitative and treatment
services. Upon completion of the approved demonstration project under
paragraph (ii) of this subdivision such program shall be eligible for
transitional funding so that the percentage of local contribution for
such project does not exceed twenty percent of the cost of such project
during the first year of transition, thirty-five percent of such costs
during the second year of transition, or fifty percent of such costs
during the third year of transition.

For purposes of this section, "chemical dependency program for youth"
shall mean a voluntary drug free setting for persons between the ages of
twelve and eighteen certified by the office of alcoholism and substance
abuse services.

(v) Notwithstanding the foregoing, local governments and voluntary
agencies may be granted state aid of up to one hundred percent of the
net operating costs expended by such localities and by voluntary
agencies pursuant to contracts with the office of mental health for
programs transferred from the task force on integrated projects for
youth and chemical dependency established pursuant to chapter eight
hundred twelve of the laws of nineteen hundred eighty-seven. Such aid
may include funds transferred from such task force to the office of
mental health.

(c) Local governments and voluntary agencies shall be granted state
aid for capital costs pursuant to an approved local services plan at a
rate not to exceed fifty percent of the amount eligible for state aid;
provided, however, that state aid for capital costs for that portion of
a general hospital which provides inpatient psychiatric services to the
mentally ill pursuant to an approved local services plan shall be
reimbursed at the rate of thirty-three and one-third percent.

(d) The liability of the state in any state fiscal year for state aid
pursuant to this section shall exclude chemical dependence services,
which are subject to article twenty-five of this chapter, and shall be
limited to the amounts appropriated for such state aid by the
legislature for such state fiscal year.

(e) In order to qualify for the state aid available as described in
subdivisions (b) and (c) of this section, a local services plan must
include provisions for the development of appropriate residential
accommodations, consistent with the present and anticipated needs of the
mentally disabled with the jurisdiction of the local governmental unit.

(f) No voluntary agency receiving state funds pursuant to this article
shall expend any state moneys except for value received and shall not
make any charitable contribution of state funds or use any state funds
to pay above market value for any goods or services, except as
authorized by the offices of the department.