Section 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.