§ 120-v. Contracts for disposal of sewage outside the state. A public
corporation or improvement district in this state may contract for the
disposal of its sewage with a municipality, public corporation or
improvement district located in another state upon such terms and
conditions as may be agreed upon except that no condition shall be
imposed whereby a public corporation or improvement district in this
state shall be required to extend its sewer mains outside the state. The
term "public corporation" as used in this section shall mean a public
corporation as defined in section three of the general corporation law;
provided, however, that for the purposes of this section there shall be
included a corporation which, except for its location outside the state,
would be a public corporation within such definition. Nothing herein
shall be construed to alter or abridge the powers and duties of the
state department of health concerning sewage disposal matters.