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ther the health and welfare of the employee so long as the purpose

and amount of such loan are disclosed to and approved by the board of directors of such agency. Such disclosure shall be filed with the secretary of the corporation and entered in the minutes of the meeting, and, if approved by such board, such disclosure shall also be forwarded in writing to the commissioner. A loan made in violation of this section shall be a violation of the duty to the not-for-profit corporation of the directors or officers authorizing it or participating in it, but the obligation of the borrower with respect to the loan shall not be

affected thereby.

(c) (1) No contract or other transaction between a not-for-profit corporation which is certified as a provider of services pursuant to

this article and one or more of its employees who receive an annual salary in excess of thirty thousand dollars, or between a not-for-profit corporation and any other corporation, firm, association or other entity in which one or more of such persons are directors or officers of the board or corporation, or employee who receives an annual salary in excess of thirty thousand dollars, or have

indirect

direct substantial financial interest,

shall be either void or voidable for this reason alone :

a. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship officership financial interest are disclosed in good faith or known to the board or committee, and the board or committee authorizes such contract or transaction by a vote sufficient for such purpose without counting the vote or votes of such interested person; or

b. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership financial interest are disclosed in good faith or known to the members entitled to vote thereon, if any, and such contract transaction is authorized by vote of such members.

(2) If such good faith disclosure of the material facts as to the person's interest in the contract or transaction and as to any such common directorship, officership financial interest, is made to the directors or members, or known to the board

committee members authorizing such contract or transaction, as provided in paragraph one of this subdivision, the contract or transaction may not be voided by the corporation for the reasons set forth in paragraph one of this subdivision. If there was no such disclosure or knowledge the

corporation may, void the contract or transaction unless the party or parties thereto shall establish affirmatively that the contract transaction was fair and reasonable

to the corporation

at the time it was authorized by the board, a committee or the members.

§ 2. Section 21.15 of the mental hygiene law, as added by chapter 232 of the laws of 1991, is amended to read as follows: § 21. 15 Improper expenditure of moneys.

(a) No provider of service subject to certification, inspection, licensing or treatment standards of the division of alcoholism and alcohol abuse shall make any charitable contribution of any state moneys, medical assistance payments or social security or supplemental security

any interest or other income earned thereon, except as authorized by the director. Provided, however, the provisions of this section shall not apply to receipts or donations from private or nongovernmental sources and any interest or other income earned thereon.

(b) No loans, other than through the purchase of bonds, debentures, or similar obligations of the type customarily sold in public offerings, or through ordinary deposit of funds in a bank, shall be made by a not-forprof it corporation which is subject to certification, inspection, licensing or treatment standards of the division of alcoholism and alco: hol abuse to its employee who receives an annual salary in

of thirty thousand dollars, or to any other corporation, firm, association or other entity in which such employee is a director or officer ployee or holds direct or indirect substantial financial interest, except a loan by one corporation incorporated as a type B corporation pursuant to the not-for-prof it corporation law to another type B corporation, or a loan for a temporary or emergency purpose which will further the health and welfare of the employee so long as the purpose and amount of such loan are disclosed to and approved by the board of directors of such agency. Such disclosure shall be filed with the secretary EXPLANATION-Matter in italics is new; matter

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of the corporation and entered in the minutes of the meeting, and, if approved by such board, such disclosure shall also be forwarded in writing to the director. A loan made in violation of this section shall be a violation of the duty to the not-for-profit corporation of the directors or officers authorizing it or participating in it, but the obligation of the borrower with respect to the loan shall not be affected thereby.

(c) (1) No contract or other transaction between a not-for-profit corporation which is subject to certification, inspection, licensing treatment standards of the division of alcoholism and alcohol abuse pursuant to this article and one or more of its employees who receive annual

salary in excess of thirty thousand dollars, or between a notfor-profit corporation and any other corporation, firm, association other entity in which one or more of such persons are directors or of: ficers of the board or corporation, or employee who receives an annual salary in excess of thirty thousand dollars, or have an indirect or direct substantial financial interest, shall be either void or voidable for this reason alone:

a. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership or financial interest are disclosed in good faith or known to the board or committee, and the board or committee authorizes such contract or transaction by a vote sufficient for such purpose without counting the vote or votes of such interested person; or

b. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership or financial interest are disclosed in good faith or known to the members entitled to vote thereon, if any, and such contract transaction is authorized by vote of such members.

(2) If such good faith disclosure of the material facts as to the person's interest in the contract or transaction and as to any such com

directorship, officership financial interest, is made to the directors or members, or known to the board committee

members authorizing such contract or transaction, as provided in paragraph one of this subdivision, the contract or transaction may not be voided by the corporation for the reasons set forth in paragraph one of this subdivision. If there was no such disclosure or knowledge the corporation may void the contract or transaction unless the party or parties thereto shall establish affirmatively that the contract transaction was fair and reasonable

to the corporation at the time it was authorized by the board, a committee or the members.

§ 3. Section 23. 15 of the mental hygiene law, as added by chapter 232 of the laws of 1991, is amended to read as follows: § 23. 15 Improper expenditure of moneys.

(a) No provider of service approved pursuant to this article shall make any charitable contribution of any state moneys, medical assistance payments or supplemental security income or any interest or other income earned thereon, except as authorized by the director. Provided, however, the provisions of this section shall not apply to receipts or donations from private or non-governmental sources and any interest or other income earned thereon.

(b) No loans, other than through the purchase of bonds, debentures, or similar obligations of the type customarily sold in public offerings, or through ordinary deposit of funds in a bank, shall be made by a not-forprofit corporation which is a provider of services approved pursuant to this article to its employee who receives an annual salary in excess of thirty thousand dollars, or to any other corporation, firm, association

other entity in which such employee is a director or officer or employee or holds a direct or indirect substantial financial interest, except

a loan by one corporation incorporated as a type B corporation pursuant to the not-for-profit corporation law to another

type B, corporation, or a loan for a temporary or emergency, purpose which will fur; ther the health and welfare of the employee so long as the

purpose and amount of such loan are disclosed to and approved by the board of directors of such agency. Such disclosure shall be filed with the secretary of the corporation and entered in the minutes of the meeting, and, if approved by such board, such disclosure shall also be forwarded in writing to the director. A loan made in violation of this section shall be a violation of the duty, to the not-for-profit corporation of the directors or officers authorizing it or participating in it, but the obligation of the borrower with respect to the loan shall not be affected thereby.

(c) (1) No contract or other transaction between a not-for-profit corporation which is a provider of services approved pursuant to this arti

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cle and one or more of its employees who receive an annual salary in excess of thirty thousand dollars, or between a not-for-profit corporation and any other corporation, firm, association or other entity in which one or more of such persons are directors or officers of the board corporation, employee who receives an annual salary in excess of thirty thousand dollars, or have

indirect

direct substantial financial interest,

shall be either void or voidable for this reason alone;

a. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership financial interest are disclosed in good faith or known to the board or committee, and the board or committee authorizes such contract or transaction by a vote sufficient for such purpose without counting the vote or votes of such interested person; or

b. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership financial interest are disclosed in good faith or known to the members entitled to vote thereon, if any, and such contract transaction authorized by vote of such members.

(2) If such good faith disclosure of the material facts as to the person's interest in the contract or transaction and as to any such comnon directorship, officership financial interest, is made to the directors or members, or known to the board committee

members authorizing such contract or transaction, as provided in paragraph one of this subdivision, the contract or transaction may be voided by the corporation for the set forth in paragraph

of

this subdivision. If there was no such disclosure or knowledge the corporation may void the contract or transaction unless the party or parties thereto shall establish affirmatively, that the contract or transaction was fair and reasonable

to the corporation at the time it was authorized by the board, a committee or the members.

§. 4. Section 31. 31 of the mental hygiene law, as added by chapter 232 of the laws of 1991, is amended to read as follows: § 31. 31 Improper expenditure of moneys.

(a) No provider of services licensed pursuant to this article shall make any charitable contribution of state moneys, medical assistance payments social security or supplemental security income or any interest or other income earned thereon, except authorized by the commissioner. Provided, however, the provisions of this section shall not apply to receipts or donations from private non-governmental sources and any interest or other income earned thereon.

(b) No loans, other than through the purchase of bonds, debentures, or similar obligations of the type customarily sold in public offerings, or through ordinary deposit of funds in a bank, shall be nade by a not-forprofit corporation which is licensed as a provider of services pursuant to this article to its employee who receives an annual salary in excess of thirty thousand dollars, or to any other corporation, firm, association or other entity in which such employee is a director or officer or employee or holds a direct or indirect substantial financial

interest, except a loan by one corporation incorporated as a type B corporation pursuant to the not-for-profit corporation law to another type B corporation, or a loan for a temporary or emergency purpose which will further the health and welfare of the employee so long as the purpose and amount of such loan are disclosed to and approved by the board of directors of such agency. Such disclosure shall be filed with the secretary of the corporation

and entered in the minutes of the meeting, and, if approved by such board, such disclosure shall also be forwarded in writing to the commissioner. A loan made in violation of this section shall be a violation of the duty to the not-for-profit corporation of the directors

officers authorizing it or participating in it, but the obligat ion of the borrower with respect to the loan shall not be af fected thereby

(0)(1) No contract or other transaction between a not-for-profit corporation which is licensed as a provider of services pursuant to this article and one or more of its employees who receive an annual salary in excess of thirty thousand dollars, or between a not-for-profit corporation and any other corporation, firm, association or other entity in which one or more of such persons are directors or officers of the board or corporation, or employee who receives an annual salary in excess of EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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thirty thousand dollars, or have an indirect

direct substantial financial interest,

be either void or voidable for this reason alone:

a. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership or financial interest are disclosed in good faith or known to the board or committee, and the board or committee authorizes such contract or transaction by a vote sufficient for such purpose without counting the vote or votes of such interested person; or

b. If the material facts as to such person's interest in such contract or transaction and as to any such common directorship, officership, or financial interest are disclosed in good faith or known to the members entitled to vote thereon, if any, and such contract transaction is authorized by vote of such members.

(2) If such good faith disclosure of the material facts as to the person's interest in the contract or transaction and as to any such com

directorship, officership financial interest, is made to the directors or members, or known to the board or committee or members authorizing such contract or transaction, as provided in paragraph one of this subdivision, the contract or transaction may not be voided by the corporation for

the reasons set forth in paragraph one of this subdivision. If there was no such disclosure or knowledge the corporation may . void the contract or transaction unless the party or parties thereto shall establish affirmatively, that the contract transaction fair and reasonable

to the corporation at the time it was authorized by the board, a committee or the members.

5 5. This act shall take effect on the sixtieth day after it shall have become a law.

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CHAPTER 554

AN ACT to authorize the apportionment of certain state transportation

aid to the Warwick Valley central school district Became a law July 24, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Notwithstanding any contrary provision of law, rule or regulation, the education department is authorized to apportion 1992-1993 transportation aid to the Warwick Valley, central school district for transportation expenses incurred from September 5, 1991 through January 13, 1992 for special education student transportation to a school outside the fifty mile limit which had not been included in transportation contracts due to required administrative delays in approving placement in such school. The Warwick Valley central school district is hereby authorized

to reimburse providers of the transportation for which aid has been apportioned pursuant to this act.

§ 2. This act shall take effect immediately.

CHAPTER 555

AN ACT regarding sertaörk fandsepabaltz ftudentserfy the state university Became a law July 24, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present. The People of the State of New York, represented in Senate and Assenbly, do enact as follows:

Section 1. Notwithstanding the provisions of any other law, rule or regulation to the contrary, the state of New York shall not require the

Startu! 's reaso:

repayment of funds that amount to the sum of two hundred fifty dollars or less paid to students at the State University of New York at New Paltz, for which such payment made available as a result of an emergency situation on December 29, 1991, caused by PCB contamination, for property loss or the loss of use of such property.

§ 2. This act shall take effect immediately.

was

CHAPTER 556

i to the ich der ? to the meebers aphone ded to

AN ACT to amend the highway law, in relation to the establishment of the

New York staté scenic byways program

of this orpora parties Sactia

Became a law July 24, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present.

it was

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

t shall

Section 1. The highway law is amended by adding a new article 12-C to read as follows:

ARTICLE XII-C

NEW YORK STATE SCENIC BYWAYS PROGRAM

rec

Section 349-aa. Statement of intent.

349-bb. New York state scenic byways program.
349-cc. New York state scenic byways advisory board.

349-dd. Components.
§ 349-aa. Statement of intent. The legislature hereby finds that cer-
ta in portions of the state highway system are notable for their scenic,
historic, recreational, cultural and archeological value and worthy of
designation as scenic byways to provide special consideration of their
unique features and special role in the highway system.

The legislature further finds that the public interest would be served
by the formation of a coordinated scenic byways program to enhance
reation, preserve and protect scenic, historic, recreational, cultural
and archeological resources, encourage

economic development through tourism, improve the transportation system, and educate residents and visitors of the history and culture of this state.

The legislature further finds that several programs administered by parious agencies of state government exist to assess scenic quality of highway corridors, to maintain state highways and rights-of-way, and to plan for recreation to promote economic development through tourism.

The legislature further finds that several not-for-profit organizations exist to encourage public participation in the enhancement of designated highway, routes, and to coordinate and promote tourism along such designated highway routes.

It is therefore the intent of the legislature to establish a scenic byways program in the department of transportation to guide and coordinate the activities of state agencies, local governments and not-forprofit organizations in order to create comprehensive

program

that will better serve the public interest;

§ 349-bb. New York state scenic byways program. 1. The commissioner shall establish within the department a program to be known as the New York state scenic byways program (here inafter referred to as scenic byways program or program to encourage and coordinate state actions and EXPLANATION—Matter in italics is new; matter in brackets [] is old law

to be omitted.

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