NY A08517

Establishes "community mental health reinvestment services" definition including emergency/crisis services, case management, outpatient treatment, residential services, and support services for persons with serious mental illness and co-occurring disorders.

Creates a Community Mental Health Reinvestment Program with funds allocated annually by the commissioner based on efficiency of service delivery and factors requiring maintenance and development of mental health services.

Restricts reinvestment funds to community mental health services, workforce activities including recruitment and training, and general programmatic activities, but prohibits use for capital costs.

Requires Office of Mental Health and local government units to consider service needs, program capacity, integration with existing plans, and provider reliability before entering service contracts.

Ties reinvestment funding amounts to actual state appropriation reductions from inpatient psychiatric bed closures and facility co-locations, with minimum savings of $110,000 per closed bed on annual basis.

Authorizes the commissioner to inspect records of local governments and service providers receiving funds under this section, including medical, financial, and operational records.

Creates a Community Mental Health Reinvestment Account in the state finance law to receive and disburse funds attributable to bed closures and facility reductions to local governments and not-for-profit mental health agencies.