April 21, 2022
The bill (discussed below) was just introduced by Assemblyman Steck and is a ‘same as’ version of a bill sponsored by Senator Harckham. Please review and share your thoughts/concerns/opinions at your earliest convenience. If you think the bill could be improved in some way, please share your ideas. Thank you!Lauri
S8313 HARCKHAM Same as A 9831 Steck
Amd §§25.03 & 25.11, Ment Hyg L
Relates to funding for services of the office of addiction services and supports.
STATE OF NEW YORK ________________________________________________________________________ 8313 IN SENATE February 11, 2022 ___________ Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Alcoholism and Substance Abuse AN ACT to amend the mental hygiene law, in relation to funding for services of the office of addiction services and supports The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 25.03 of the mental hygiene law, 2 as amended by section 4 of part G of chapter 56 of the laws of 2013, is 3 amended to read as follows: 4 (a) In accordance with the provisions of this article, and within 5 appropriations made available, the office may provide state aid to a 6 program operated by a local governmental unit or voluntary agency [
up to7 one hundred per centum of the approved net operating costs of such8 program] based on a payment for services model developed by the office, 9 in consultation with operators of funded programs, for programs operated 10 by a local governmental unit or voluntary agency, and state aid may also 11 be granted to a program operated by a local governmental unit or a 12 voluntary agency for capital costs associated with the provision of 13 services at a rate of up to one hundred percent of approved capital 14 costs. Such state aid shall not be granted unless and until such program 15 operated by a local governmental unit or voluntary agency is in compli- 16 ance with all regulations promulgated by the commissioner regarding the 17 financing of capital projects. Such state aid [ for approved net operat-18 ing costs] shall be made available by way of advance or reimbursement, 19 through either contracts entered into between the office and such volun- 20 tary agency or by distribution of such state aid to local governmental 21 units through [ a grant] the process pursuant to section 25.11 of this 22 article. 23 § 2. Subdivisions (a) and (b) of section 25.11 of the mental hygiene 24 law, as added by section 9 of part G of chapter 56 of the laws of 2013, 25 are amended to read as follows: 26 (a) Local governmental units shall be granted state aid by a state aid 27 funding authorization letter issued by the office [ for approved netEXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14360-01-2
S. 8313 2 1
operating costs] based on a payment for services model developed by the 2 office, in consultation with operators of funded programs, for voluntary 3 agencies [ to support the base amount of state aid provided to such4 voluntary agencies for the prior year] provided that the local govern- 5 mental unit has approved and submitted budgets for the voluntary agen- 6 cies to the office. The voluntary agency budgets shall identify the 7 nature of the services to be provided which must be consistent with the 8 local services plan submitted by the local governmental unit pursuant to 9 article forty-one of this chapter, the areas to be served and include a 10 description of the voluntary agency contributions and local governmental 11 unit funding provided. The local governmental unit shall enter into 12 contracts with the voluntary agencies receiving such state aid. Such 13 contracts shall include funding requirements set by the office including 14 but not limited to responsibilities of voluntary agencies relating to 15 work scopes, program performance and operations, [ application of program16 income, prohibited use of funds,] recordkeeping and audit obligations. 17 Upon designation by the office, local governmental units shall notify 18 voluntary agencies as to the source of funding received by such volun- 19 tary agencies. 20 (b) State aid made available to a local governmental unit [ for21 approved net operating costs] based on a payment for services model 22 developed by the office, in consultation with operators of funded 23 programs for a program operated by a voluntary agency or a local govern- 24 mental unit may be reduced where a review of such voluntary agency's 25 prior year's budget and/or performance indicates[ : (1)] that the 26 program operated by a local governmental unit or voluntary agency has 27 failed to meet minimum performance standards and requirements of the 28 office including, but not limited to, maintaining service utilization 29 rates and productivity standards as set by the office provided however, 30 that upon determination that the program is not meeting the minimum 31 standards and requirements, the office shall notify such program oper- 32 ated by a local governmental unit or voluntary agency of their deficien- 33 cies, and if appropriate, a corrective action plan that includes specif- 34 ic actions to address any deficiencies and a timetable for 35 implementation shall be developed. State aid may be reduced if a correc- 36 tive action plan is not approved by the office or is not implemented in 37 a timely and satisfactory manner[ ;38 (2) that the voluntary agency has had an increase in voluntary agency39 contributions that reduces the approved net operating costs necessary,40 except where the office has approved an alternative use of such volun-41 tary agency contributions or such voluntary agency contributions are42 necessary to ensure financial viability]. 43 § 3. This act shall take effect January 1, 2023 and shall apply to 44 program budgets developed on or after such date.
NEW YORK STATE SENATE
INTRODUCER’S MEMORANDUM IN SUPPORT
submitted in accordance with Senate Rule VI. Sec 1
BILL NUMBER: S8313 SPONSOR: HARCKHAM TITLE OF BILL: An act to amend the mental hygiene law, in relation to funding for services of the office of addiction services and supports PURPOSE: Relates to funding for services of the office of addiction services and supports SUMMARY OF PROVISIONS: Section 1 & 2 amends section 25.03 of the mental hygiene law and section 25.11 of the mental hygiene law to provide that OASAS may provide state aid to a program operated by a local governmental unit or voluntary agency based on a payment for services model developed by the office, in consultation with operators of funded programs. Section 3 states the effective date. JUSTIFICATION: The Office of Addiction Services and Supports (OASAS) provides services to over 680,000 individuals through approximately 1,700 substance use disorder prevention, treatment, and recovery programs statewide. For over a decade while overdose deaths continued to increase, OASAS's fund- ing remained flat, and woefully inadequate to address the needs of New Yorkers. Recently the comptroller released a report highlighting how the agency is behind in their certification and recertification reviews of providers. Currently, OASAS provides state aid to providers based on a reimburse- ment model that allows up to one hundred of the approved net operating costs of such programs. Providers who experience a decrease in individ- ual intake see a decrease in funding for the following year. This model is antiquated and penalizes providers who have been forced to lower intake to adhere to changing COVID regulations and have struggled to retain adequate staff to operate at pre COVID levels. We could eliminate the need for these certifications, and free up OASAS's valuable resources to refocus their efforts on delivering the best care possible. By changing OASAS's payment methodology from funding net deficits, to payer for service we can ensure that the care being provided is in line with best practices, and provide incentives for innovation and creativity. LEGISLATIVE HISTORY: This is a new bill. FISCAL IMPLICATIONS: Fiscal note not attached. EFFECTIVE DATE: This act shall take effect January 1, 2023 and shall apply to program budgets developed on or after such date.