Section 26.00. Funding of chemical dependence services and compulsive gambling services

(a) With respect to the provision of state aid for chemical dependence
  services as defined in subdivisions forty-five and fifty-five of section
  1.03  of  this  chapter  and,  for  chemical  dependence  services   and
  compulsive  gambling services, further subject to approval by the office
  of  alcoholism  and  substance  abuse  services  pursuant   to   article
  thirty-two  of  this  chapter,  within appropriations made therefor, the
  commissioner of the office of alcoholism and  substance  abuse  services
  shall  make  grants  for  approved net operating and/or capital costs in
  accordance with this section.
    (b) In  the  course  of  providing  such  state  aid,  the  office  of
  alcoholism  and  substance  abuse  services  shall approve operating and
  capital costs for chemical dependence services and  compulsive  gambling
  services  on  such  terms  and  in  such  manner  as the office may deem
  appropriate.
    (c) Financial support made under this section shall be subject to  the
  approval of the director of the budget.
    (d)  For  the  purposes  of this section, the definitions contained in
  section 41.03 of this chapter shall apply.
    (e) For the purposes of this section, "state aid" shall  mean  funding
  provided   through  appropriations  of  the  office  of  alcoholism  and
  substance abuse services, with the exclusion of appropriations  for  the
  purpose of medical assistance.
    (f)  For the purposes of this section, "voluntary contributions" shall
  be defined  in  regulation,  and  the  commissioner  of  the  office  of
  alcoholism  and  substance  abuse services is hereby authorized to issue
  such regulations.
    (g) For the purposes of this section, "approved  net  operating  cost"
  shall mean the remainder of total operating costs approved by the office
  of alcoholism and substance abuse services, less all sources of revenue,
  including  voluntary  contributions  not  otherwise restricted by law or
  applied as permitted under paragraph two  of  subdivision  (h)  of  this
  section  other  than state aid or local tax levy contributed pursuant to
  this article or article twenty-five or forty-one of this chapter.
    (h) Alcoholism or substance abuse treatment services  funded  pursuant
  to  article  twenty-five  or  forty-one of this chapter under a contract
  with either the state or a  local  government,  upon  conversion  to  an
  operating  certificate  for  chemical  dependence services in accordance
  with  this  chapter,  shall  be  eligible  for  reimbursement  for   the
  continuation of such services as follows:
    1.  state  aid may be made available to support the same proportion of
  approved net operating costs as were financed by  state  aid  under  the
  contract in place prior to the conversion;
    2.  voluntary  contributions in excess of amounts at conversion may be
  used to satisfy any increase in local funding necessary  to  receive  an
  increase in state aid above amounts provided prior to conversion;
    3. nothing in this subdivision shall be construed to require the state
  to  increase  such  state aid should a local government choose to remove
  its local tax levy support of a certified program,  although  the  state
  may choose to do so to address an urgent public need, or conversely, may
  reduce  its  state  aid by the same percentage as the reduction in local
  tax levy; and
    4. none of the provisions within this subdivision shall  be  construed
  to apply to the expansion of programs beyond the services in place as of
  the   date   of  the  conversion  to  a  chemical  dependence  operating
  certificate.

    (i) State aid for the creation or  expansion  of  chemical  dependence
  services and compulsive gambling services may be reimbursed at a rate of
  up to one hundred percent of approved net operating cost.
    (j)  In addition to support of approved net operating costs, state aid
  may be granted to a local government or a voluntary agency  for  capital
  costs  associated with the provision of chemical dependence services and
  compulsive gambling services at a rate of up to one hundred  percent  of
  approved  capital  costs. Such state aid shall not be granted unless and
  until such local government or voluntary agency is  in  compliance  with
  all  regulations promulgated by the commissioner regarding the financing
  of capital projects.