Section 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-six 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.