Section 111. Self-dealing among members of the governing boards of charitable institutions

a. Any charitable  institution  which  receives  any  payment from the New York city charitable institutions budget shall
  pass and implement by-laws which will:
    1. Require disclosure to the agency responsible for the administration
  of charitable institutions budget and approval by  such  agency  of  the
  material  terms  of  any  contract  or  transaction, direct or indirect,
  between an institution and  any  member  of  its  governing  board,  any
  partnership  of  which he or she is a member or any corporation in which
  he or she holds ten per cent or more of the outstanding common stock.
    2. Preclude any member of the governing board of any institution  from
  sharing,  participating  or  benefiting,  directly or indirectly, in the
  proceeds from any contract  or  transaction  entered  into  between  the
  institution and any third party unless such participation or benefit has
  been  approved  in  advance by the agency and the governing board of the
  institution has  approved  the  transaction  by  a  two-thirds  majority
  excluding the vote of member to be benefited.
    3.  Require each member of its governing board to submit to the agency
  each year a disclosure statement  including  such  member's  name,  home
  address,  principal  occupation  and  business interests from which such
  member or such member's spouse or domestic partner received income equal
  to or greater than ten per cent of their aggregate gross  income  during
  the previous year.
    b.  At the discretion of the agency, any payment or any portion of any
  payment may be withheld from any institution which has  failed  to  pass
  and implement such by-laws.