ALTHOUGH THE NEW YORK STATE JUVENILE JUSTICE REFORM ACT OF 1976 STIPULATES LONGER AND MORE RESTRICTIVE INSTITUTIONAL PLACEMENTS FOR JUVENILE OFFENDERS, THE LAW ALSO CONTAINS ENLIGHTENED PROVISIONS MANDATING MENTAL HEALTH SERVICES TO ADJUDICATED FELONS. SUCH SERVICES INCLUDE PSYCHOLOGICAL ASSESSMENT AND TESTING AND PSYCHIATRIC INTERVIEWING. THE LAW REQUIRES THE STATE DEPARTMENT OF MENTAL HYGIENE TO PROVIDE RESTRICTIVE PLACEMENTS FOR MENTALLY ILL JUVENILE FELONS. THE PROVISIONS OF THE LAW, HOWEVER, ONLY APPLY TO A LIMITED CLASS OF SERIOUS OFFENDERS, AND NEGLECT THOSE NEEDY YOUTHS WHO COMMIT LESS OFFENSIVE CRIMES. RESEARCH INDICATES THAT STATUS OFFENDERS MAY BE IN GREATER NEED OF MENTAL HEALTH SERVICES AND HAVE A GREATER RECIDIVISM RATE THAN FELONS. THE OPERATION OF THE NEW YORK LAW IS SHOWN IN THE EXAMPLE OF THE PSYCHIATRIC CLINIC OF THE ERIE COUNTY FAMILY COURT. THE FACILITY PROVIDES PSYCHIATRIC AND PSYCHOLOGICAL EVALUATION OF PERSONS REFERRED BY THE COURT AFTER ADJUDICATION, AND ASSISTS IN ARRIVING AT THE BEST DISPOSITIONAL ALTERNATIVE. THE CLINIC ALSO PROVIDES OFFENDERS' 'CRIME OF OMMISSION', OR SHOULD APPLY THE PERSONNEL, AND CONDUCTS RESEARCH INTO THE PERSONALITY OF JUVENILE OFFENDERS AND THEIR TREATMENT NEEDS. RECOMMENDATIONS ARE OFFERED FOR A MODEL HEALTH SERVICES ORGANIZATION, WHICH LIKE THE ERIE CLINIC, WOULD BE A COMPONENT OF THE COURT AND NOT A MERE ANCILLIARY. FOOTNOTES ARE PROVIDED. (TWK)