Section 813.1 sets forth the Background and Intent of this new Part.

§ 813.2 indicates to whom this Part is applicable.

§ 813.3 sets forth the legal basis for the provisions in this Part.

§ 813.4 defines terms applicable to this Part.

§ 813.5 reviews the requirements for application for a state aid grant, or for a letter of understanding and intent to refinance a state aid grant via a DASNY loan.

§ 813.6 sets forth the requirements for a DASNY loan pursuant to the Facilities Development Corporation Act.

§ 813.7 Liens of the Office explains the mutual rights and obligations of the Office and eligible providers regarding security for a state aid grant or DASNY loan.

§ 814.8 Standard severability clause.

1. Statutory Authority:

(a) Section 19.07(e) of the Mental Hygiene Law authorizes the Commissioner (“Commissioner”) of the Office to adopt standards including necessary rules and regulations pertaining to chemical dependence services.

(b) Section 19.09(b) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations necessary and proper to implement any matter under his or her jurisdiction.

(c) Section 19.40 of the Mental Hygiene Law authorizes the Commissioner to issue operating certificates for the provision of chemical dependence services.

(d) Section 32.01 of the Mental Hygiene Law authorizes the Commissioner to adopt any regulation reasonably necessary to implement and effectively exercise the powers and perform the duties conferred by Article 32 of the Mental Hygiene Law.

(e) Section 32.07(a) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations to effectuate the provisions and purposes of Article 32 of the Mental Hygiene Law.

(f) Article 25 of the Mental Hygiene Law authorizes the Office, subject to the approval of the Office of the Budget (DOB), to provide state aid funding to programs or local agencies for the provision of addiction services and expenses related to the capital costs of such programs upon such terms and conditions as the Office deems appropriate.

(g) The Facilities Development Corporation Act (Chapter 359 of the Laws of 1968), authorizes the commissioner to promulgate regulations regarding financing or refinancing by voluntary agencies of treatment facilities with proceeds realized from the sale of tax exempt bonds and notes issued by the Medical Care Facilities Finance Agency and provided to the Facilities Development Corporation (FDC) for such purposes.

(h) Section five (5) of the Facilities Development Corporation Act authorizes The Dormitory Authority of the State of New York (“DASNY”), created pursuant to chapter 392 of the Laws of 1973 as successor to the Facilities Development Corporation, to issue negotiable bonds and notes to provide funds for the financing or refinancing of capital improvements to mental hygiene facilities.

2. Legislative Objectives: The legislature has authorized OASAS to provide state aid financing for certain capital improvements to facilities operated by certain certified providers. The Office may also make available to eligible providers a means of financing major capital projects through participation in a Dormitory Authority of the State of New York (DASNY) bond program. This rule was approved for advancement by the BHSAC on September 20, 2016.

3. Needs and Benefits: OASAS is proposing to repeal Part 321 and 1055 because they are old regulations applicable to the two Divisions (DAAA and DSAS) which were consolidated into OASAS. The provisions of both, plus updates, are consolidated into a new Part 813. This regulation reviews the requirements for securing state aid for capital improvements to facilities owned or leased by certified providers. This rule adds an option for providers to secure initial private financing to be refinanced through participation in the Dormitory Authority program of tax exempt bonds (previously Facilities Development Corporation), which has been an option since 1968.

4. Costs: No additional administrative costs to the agency are anticipated; no additional costs to programs/providers are anticipated.

5. Paperwork: The proposed regulation will not require increased paperwork.

6. Local Government Mandates: There are no new local government mandates.

7. Duplication: This proposed rule does not duplicate, overlap, or conflict with any State or federal statute or rule.

8. Alternatives: Continue with outdated regulations that are not consistent with current standards.

9. Federal Standards: This regulation does not conflict with federal standards.

10. Compliance Schedule: This rulemaking will be effective upon publication of a Notice of Adoption in the State Register.

OASAS has determined that the rule will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments. This rulemaking proposal has been reviewed and approved (September 20, 2016) by the Behavioral Health Services Advisory Council consisting of affected OASAS providers of all sizes from diverse municipalities, and including local governments. The proposal is supported by providers because it centralizes existing requirements for accessing state aid and DASNY bond funds for financing and refinancing capital improvements. The rule does not change any existing procedures or requirements for funding; it only consolidates those procedures into one regulation in the Part 800 series.

The proposed rule is posted on the agency website; agency review process involves input from trade organizations representing providers in diverse geographic locations.

OASAS has determined that the rule will not impose any adverse impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas. This rulemaking proposal has been reviewed and approved by the Behavioral Health Services Advisory Council (September 20, 2016) consisting of affected OASAS providers of all sizes from diverse municipalities, and including local governments. The proposal is supported by providers because it centralizes existing requirements for accessing state aid and DASNY bond funds for financing and refinancing capital improvements. The rule does not change any existing procedures or requirements for funding; it only consolidates those procedures into one regulation in the Part 800 series.

The proposed rule is posted on the agency website; agency review process involves input from trade organizations representing providers in diverse geographic locations.

A Job Impact Statement (JIS) is not being submitted with this notice because it is evident from the subject matter of the regulation that it will have no impact on jobs and employment opportunities.