Enacts into law major components of legislation necessary to implement the health and mental hygiene budget for the 2010-11 state fiscal plan; repealer

Summary of provisions

Part A - Clarify that facility directors who act as representative payees may use funds for care and treatment consistent with federal law and regulations.

The bill would clarify that State Facility Directors who act as federally-appointed representative payees may continue to use funds for the cost of a resident's care and treatment, consistent with federal law and regulations. This bill would clarify that the application of funds for a person's care and treatment by a facility director who acts as a representative payee for such person is not a violation of the director's fiduciary obligation under Mental Hygiene Law §33.07(e). Facility directors who act as representative payees must still comply with applicable federal law and regulations.

Clarifying this authority will avoid potential costs estimated at $70 million annually. The amendments provide enhanced transparency and establish additional parameters for the use of funds.

Part B - Extend the Unmet Needs reporting requirement submission date.

This bill would extend the requirement that the Office of Mental Health (OMH) submit a report on unmet mental health needs for traditionally underserved populations from October 2010 to October 2011.

Extending this requirement represents a savings of approximately $700,000 in 2010-11.

Part C - Extend the Community Mental Health Support and Workforce Reinvestment Program and reduce and convert inpatient OMH wards.

This bill would authorize the closure or restructuring of inpatient capacity in OMH adult psychiatric facilities.

Restructuring OMH inpatient facilities will generate $9 million of net savings in 2010-11.

Part D - Recover Exempt Income.

This bill would clarify the Office of Mental Health's authority with regard to the recovery of overpayments made to certain community residences and family based treatment programs.

Clarifying this authority will result in the recovery of $4.5 million of overpayments in 2010-11.

Part E - Eliminate enriched county funding.

This bill would implement last year's budget agreement to eliminate enriched funding for mental hygiene services in five Unified Services counties effective July, 2010.

This will achieve savings already assumed in the Financial Plan totaling $2.087 million in 2010-11, fully annualizing at $2.78 million in 2011-12.

Part F - One-year deferral of human services cost-of-living adjustment.

This bill would defer the Human Services Cost-of-Living Adjustment (COLA) for 2010-11 and extend the adjustment for an additional year, through March 31, 2014.

This is the second consecutive year that no COLA will be provided, but it avoids a 2.1 percent cut in funding to the not-for-profit sector that would otherwise be required pursuant to the current methodology.

Part G - Update the disproportionate share hospital (DSH) base year.

This bill would update the DSH base year from 2000 to 2008 for payments made by OMH and OASAS to certain hospitals.

Updating the base year will result in $3.5 million in savings.

Part H - Authorize a transfer of funds from OMH to DOH.

This bill would authorize the transfer of funds from OMH to DOH to increase Medicaid payments for managed care organizations, to provide equivalent fees per an ambulatory patient group (APG) methodology. This language is intended to increase payments to managed ~are organizations to ensure the continued availability of clinic mental health services, and has no net Financial Plan Impact.

Part I - Extend the authorization for the Quick Draw Game.

This bill would extend the authorization for the Division of the Lottery to operate the Quick Draw Lottery game through June 25, 2010. The Lottery's authorization to operate Quick Draw currently expires on June 18, 2010.

This bill is necessary to continue the existence of Quick Draw - the extension would preserve $ 2 million in revenue to support education.

Part J - Extend the authorization for the Lofts Law.

This bill would extend the interim dwellings or "Lofts Law" provisions for residences in buildings previously zoned for commercial use in New York City until June 25, 2010.

Part K - Authorize a transfer to the Office of the Welfare Inspector General's (OWIG) administrative reimbursement account.

This bill would authorize the transfer of $360,000 from special revenue Federal funds to Office of the Welfare Inspector General's (OWIG) administrative reimbursement account. This transfer would support OWIG's necessary operating expenses.

Part L - Clarify the State's authority to withhold payments to districts for past due youth facility reimbursement.

This bill would clarify the State's authority to withhold payments to local social services districts for past due youth facility

reimbursement, and authorize the transfer of up to $69 million from the Youth Facility Per Diem account to the General Fund.

The transfer from the Youth Facility Per Diem account to the General Fund will generate $69 million in revenue.

Statement in support

Enactment of these provisions will maintain continuity in State services and financial management in the absence of an enacted 2010-11 Budget.

Budgetary implications

Enactment of this bill is necessary to ensure the fiscal stability of the State.

Effective date

Immediately.