N.Y. Mental Hyg. Law § 41.18

§ 41.18 Local services plan; state aid.\n (a) A local services plan is a plan for the rendition of local\nservices. Such a plan must have been developed by the local\ngovernmental unit with the involvement of consumers, consumer groups,\nvoluntary agencies and other providers of services, in accordance with\nthe regulations of the commissioner and must be approved by the\ncommissioner in order to be eligible for state aid. A local services\nplan shall contain a comprehensive proposal for annual and intermediate\nrange plans and expenditures by the local governmental unit and by\nvoluntary agencies pursuant to contract with such local governmental\nunit. A local services plan shall contain provisions to assure that\nthere is planning and coordination with the delivery of community\nsupport services to mentally ill persons, in accordance with section\n41.47 of this article. An annual plan must be supported by specific\nbudgets.\n (b) (i) Local governments shall be granted state aid, in accordance\nwith the provisions of this subdivision, for approved net operating\ncosts pursuant to an approved local services plan at the rate of fifty\npercent of the amount incurred during the local fiscal year by such\nlocal governments and by voluntary agencies pursuant to contract with\nsuch local governments; provided, however, that a local government\nhaving a population of less than two hundred thousand shall be granted\nstate aid at the rate of seventy-five percent for the first one hundred\nthousand dollars of its approved net operating costs. Notwithstanding\nthe foregoing, local governments shall be granted state aid of one\nhundred percent of the net operating costs expended by such local\ngovernments and by voluntary agencies pursuant to contract with such\nlocal governments for services to people with developmental disabilities\nwho were patients in a state facility for a continuous period of five or\nmore years following the first day of January, nineteen hundred\nsixty-nine, provided that such services are rendered in accordance with\nan approved local services plan. Such one hundred percent state aid for\nservices to such persons shall be also provided to a voluntary agency\npursuant to a direct contract between such agency and an office of the\ndepartment whenever such services provided pursuant to such direct\ncontract are rendered in accordance with an approved local services plan\nfor servicing such clients. For purposes of determining whether a person\nhas been a patient in such a facility for a continuous period of five\nyears or more, if a person who has been discharged or released from such\na facility is thereafter returned to such a facility within ninety days\nof the discharge or release, the period of time between such discharge\nor release and such return shall not constitute an interruption of, and\nshall be counted as part of, the continuous period.\n (ii) Notwithstanding the foregoing, local governments shall be granted\nstate aid of one hundred percent of the net operating costs expended by\nsuch localities and by voluntary agencies pursuant to contract with such\nlocal governments for approved demonstration projects, not to exceed\nthree years, for the purpose of conducting alcoholism and alcohol abuse\npreventive, rehabilitative and treatment services; provided, however,\nthat the commissioner of alcoholism and substance abuse services may\nextend the demonstration project for one additional year if it is\ndetermined that such extension is necessary and would serve the public\ninterest.\n (iii) Notwithstanding the foregoing, local governments and voluntary\nagencies shall be granted state aid of one hundred percent of the net\noperating costs expended by such localities and by voluntary agencies\npursuant to contracts with such local governments or with the office of\nalcoholism and substance abuse services for alcohol crisis centers,\nchemical dependency programs for youth, residential services for\nrecovering alcoholics and substance abusers and for alcoholism AIDS\ncoordinators. Such state aid may also be granted to programs transferred\nfrom the task force on integrated projects for youth and chemical\ndependency. Such state aid shall also be granted for non-residential\nservices determined to be necessary to serve the public interest by the\ncommissioner of alcoholism and substance abuse services provided by\nlocal governments having a population of one hundred twenty-five\nthousand or less as determined by the last preceding federal census, or\nby voluntary agencies pursuant to contracts with such local governments.\n (iv) The commissioner shall file a written explanation for action\ntaken pursuant to paragraphs (ii) and (iii) of this subdivision with the\ndirector of the division of the budget, the chairman of the senate\nfinance committee and the chairman of the assembly ways and means\ncommittee. Such one hundred percent state aid for approved demonstration\nprojects, alcohol crisis centers, chemical dependency programs for\nyouth, and non-residential rural alcoholism programs, shall also be\nprovided to a voluntary agency pursuant to a direct contract between\nsuch agency and the office of alcoholism and substance abuse services\nwhenever such services provided pursuant to such direct contract are\nrendered in accordance with an approved local services plan for\nalcoholism and alcohol abuse preventive, rehabilitative and treatment\nservices. Upon completion of the approved demonstration project under\nparagraph (ii) of this subdivision such program shall be eligible for\ntransitional funding so that the percentage of local contribution for\nsuch project does not exceed twenty percent of the cost of such project\nduring the first year of transition, thirty-five percent of such costs\nduring the second year of transition, or fifty percent of such costs\nduring the third year of transition.\n For purposes of this section, "chemical dependency program for youth"\nshall mean a voluntary drug free setting for persons between the ages of\ntwelve and eighteen certified by the office of alcoholism and substance\nabuse services.\n (v) Notwithstanding the foregoing, local governments and voluntary\nagencies may be granted state aid of up to one hundred percent of the\nnet operating costs expended by such localities and by voluntary\nagencies pursuant to contracts with the office of mental health for\nprograms transferred from the task force on integrated projects for\nyouth and chemical dependency established pursuant to chapter eight\nhundred twelve of the laws of nineteen hundred eighty-seven. Such aid\nmay include funds transferred from such task force to the office of\nmental health.\n (c) Local governments and voluntary agencies shall be granted state\naid for capital costs pursuant to an approved local services plan at a\nrate not to exceed fifty percent of the amount eligible for state aid;\nprovided, however, that state aid for capital costs for that portion of\na general hospital which provides inpatient psychiatric services to the\nmentally ill pursuant to an approved local services plan shall be\nreimbursed at the rate of thirty-three and one-third percent.\n (d) The liability of the state in any state fiscal year for state aid\npursuant to this section shall exclude chemical dependence services,\nwhich are subject to article twenty-five of this chapter, and shall be\nlimited to the amounts appropriated for such state aid by the\nlegislature for such state fiscal year.\n (e) In order to qualify for the state aid available as described in\nsubdivisions (b) and (c) of this section, a local services plan must\ninclude provisions for the development of appropriate residential\naccommodations, consistent with the present and anticipated needs of the\nmentally disabled with the jurisdiction of the local governmental unit.\n (f) No voluntary agency receiving state funds pursuant to this article\nshall expend any state moneys except for value received and shall not\nmake any charitable contribution of state funds or use any state funds\nto pay above market value for any goods or services, except as\nauthorized by the offices of the department.\n