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into economic development zone from another municipality and the municipality, from which the business is relocating approves of such relocation or where such shift in operations is from a business incubator facility operated by a municipality or by a public or private notfor-profit entity which provides space and business support services to newly established firms; or (iv) the joint decertification by the commissioner, the commissioner of labor, and the local economic development zone certification officer so as to revoke the certification of business enterprises for benefits referred to in section nine hundred sixty-six of this article with respect to an economic development

upon finding that (1) the business enterprise made material misrepresentations of fact on its application for certification, or the business terprise failed to disclose facts in its application for certification that would constitute grounds for not issuing a certification; ., (2) the business enterprise has failed to construct, expand, rehabilitate or operate its facility substantially in accordance with the

representations contained in its application for certification; (3) the business enterprise has failed to create new employment or prevent a loss of ployment in the economic development zone; (4) the business enterprise has failed to submit the annual report or other information to the local economic development

certification officer when due; or (5) the business enterprise has committed substantial violations of laws for the protection of workers including all federal, state and local labor laws, rules or regulations; said regulations shall provide that whenever any business enterprise is decertified with respect to an economic development zone: (A) the date determined to be the earliest event constituting grounds for revoking certification shall be the effective date of decertification; (B) its certified single enterprise, if any, decertified; and (C) the commissioner shall notify the commissioner of taxation and finance that such decertification has occurred, and such notification should include the effective date of such decertification and the zone to which such decertification applies;

§ 2. This act shall take effect immediately.

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AN ACT to adjust certain employment preparation education aid payments

to the Freeport Union Free School district
Became a law July 31, 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 Assem-
bly, do enact as follows:
Section 1. Notwithstanding any

inconsistent provision of law, employment preparation education aid payments made to the Freeport Únion Free School district during the period from July, 1988 through June, 1991 which had been based on incorrect data being filed with the state education department, which contained excess payments of which the district has been notified, and for which a recovery must be made by the state through aid deductions from future aid payments, shall be reduced through aid reductions totaling the excess, by deducting $312, 127.21 from payments due for the 1991-92 school year and the remainder by deducting thirty percent of monies overpaid in fiscal

year 1991 from payments due for the 1992-93 school year, thirty percent of monies overpaid in fiscal year 1991 from payments due for the 1993-94 school year, the remaining forty percent of monies overpaid in fiscal year 1991' from payments due for the 1994-95 school year, fifty percent of monies overpaid in fiscal year 1990 from payments'due for the 1995-96 school year and the remaining fifty percent of the monies overpaid

in the fiscal year 1990 from payments due for the 1996-97 school year starting with the second payment due in each school year, provided, however, that such overpayments shall be deducted from any moneys due the school district if the district does not continue to operate an employment preparation education program that is large enough to support the recovery of overpayments, as provided herein.

§ 2. This act shall take effect immediately,

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AN ACT to amend the public health law, in relation to the professional medical conduct program and establishing a physician discipline pro

evaluation panel and providing for the repeal of certain provisions upon the expiration thereof Became a law July 31, 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. Subdivision 7 of section 230 of the public health law, as amended by chapter 606 of the laws of 1991, is amended to read follows:

7. The board, by its committees on professional conduct, shall conduct disciplinary proceedings as prescribed in this section and shall assist in other professional conduct matters as prescribed by the chairperson. In this section the term "licensee" shall mean physician, including a physician practicing under a limited permit, physician's assistant and specialist's assistant. A committee on professional conduct, notice to the licensee and after affording the licensee, the office of professional medical conduct, and their attorneys an opportunity to be heard, shall have the authority, to direct a licensee to submit to a medical or psychiatric examination when the committee has reason to believe the licensee may be impaired by alcohol, drugs, physical disability or mental disability. The committee, with the advice of the licensee and the office, of professional medical conduct, shall designate the physician who will conduct the examination. The results of the examination shall be provided by the examining physician to the committee, the licensee, and the office of professional medical conduct. The licensee may

alsó obtain a physician to conduct an examination the results of which shall be provided to the committee and the office of professional medical conduct.

§ 2. Paragraph (8) of subdivision 10 of section 230 of the public health law, as amended by chapter 606 of the laws of 1991, is amended to read as follows:

(8) Results of hearing. The committee shall make (1) findings of fact, (?) conclusions concerning the charges sustained or dismissed, (3) and [in the event any of the charges have been sustained] a determination regarding charges sustained or dismissed, and in the event any of the charges have been sustained of the penalty to be imposed or appropriate action to be taken and the reasons for the determination. For the committee to

make conclusion sustaining charge, or determining a penalty or the appropriate action to be taken, two members of the committee must vote for such a conclusion or determination. The committee shall issue an order based on its determination.

§ 3. Subdivision 12 of section 230 of the public health law, as amended by chapter 37 of the laws of 1992, is amended to read follows:

12. Summary action. Whenever the commissioner, after an investigation and a recommendation by a committee on professional conduct of the state board for professional medical conduct, based upon a determination that a licensee is causing, engaging in or maintaining a condition or activity, which in the commissioner's opinion constitutes an imminent danger to the health of the people, and that it therefore appears to be prejudicial to the interests of the people to delay action until an opportunity for a hearing can be provided in accordance with the prehearing and hearing provisions of this section, the commissioner may order the licensee, by written notice, to discontinue such dangerous condition

or activity or take certain action immediately and for a period of ninety days from the date of service of the order. Within ten days from the date of service of the said order, the state board for professional medical conduct shall commence and regularly schedule

such hearing proceedings as required by this section of the public health law, provided, however, that the hearing shall be completed within ninety days of

of the date of service of the order. To the extent that the issue EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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of imminent danger can be proven without the attorney representing the office of professional medical conduct putting in its entire case, the committee of the board shall first determine whether by a preponderance of the evidence the licensee is causing, engaging in or maintaining a condition or activity which constitutes an imminent danger to the health of the people. The attorney representing the office of professional medical conduct shall have the burden of going forward and proving by a preponderance of the evidence that the licensee's condition, activity or practice constitutes an imminent danger to the health of the people. The licensee shall have opportunity to be heard and to present proof, When both the office and the licensee have completed their cases with respect to the question of imminent danger, the committee shall promptly make a recommendation to the commissioner the issue of imminent danger and determine whether the summary, order should be left in effect, modified or vacated, and continue the hearing all the remaining charges, if any, in accordance with paragraph (f) of subdivision ten of this section. Within ten days of the committee's recommendation, the commissioner shall determine whether or not to adopt the committee's recommendations, in whole or in part, and shall leave in effect, modify

vacate his summary order. The state board for professional medical conduct shall make every reasonable effort to avoid any delay in completing and determining such proceedings. If, at the conclusion of the hearing, (a) the hearing committee of the board finds the licensee guilty of one or more of the charges which are the basis for the summary order, (b) the hearing committee determines that the summary order continue, and (c) the ninety day term of the order has not expired, the summary order shall remain in full force and effect until a final decision has been rendered by the committee [has been rendered] or, if review is sought, by the administrative review board.

§ 4. Paragraph.(a) of subdivision 18 of section 230 of the public health law, as amended by chapter 37 of the laws of 1992, is amended to read as follows:

(a) The director shall have the authority to monitor physicians, physician's assistants and specialist's assistants who have been placed

probation pursuant to a determination of professional misconduct by the board. During such period of probation, the director, or his or her designee, as provided in the order of the board, and after consultation with the executive secretary, (i) may review the professional performance of the licensee by randomly selecting office records, patient records and hospital charts, (ii) may require periodic visits by the licensee to a member of the staté board for professional medical conduct or an employee of the office of professional medical conduct, (iii) may require thé

licensee to obtain an appropriate monitor, approved by the director, to monitor the licensee's practice, .(iv) may require an

audit of the licensee's billings for services rendered during probation, (v) may require the licensee to submit on a random basis to tests for the presence of alcohol or drugs, (vi) may require the licensee to obtain additional training prior to completion of the probation, (vii), may require the licensee to work in a supervised setting, (viii) may require, as a condition of the licensee's continued practice, that the licensee undergo therapy and/or treatment approved and monitored by the director, (ix) may require that the licensee comply with the requirements of the penalty imposed, and (x) may impose upon the licensee such additional requirements as reasonably relate to the misconduct found are necessary to protect the health of the people pursuant to regulation. The director is authorized to delegate some or all of the foregoing responsibilities to designated county medical societies and district osteopathic societies.

§ 5. Paragraph (b) of subdivision 18 of section 230 of the public health law,, as amended by chapter 37 of the laws of 1992, is amended to read as follows:

(b) Any health care provider licensed pursuant to this chapter or the education law, hospital licensed pursuant to article twenty-eight of this chapter or medical school that participates in a monitoring or remediation program pursuant to this subdivision and subdivision seventeen of this section shall not be liable for the negligence of the monitored licensee in providing medical

pursuant to a monitoring program. However, this paragraph does not diminish the participating provider's, hospital's or school''s liability for failure

to exercise reasonable

care in properly carrying out its responsibilities under the program. The monitored licensee shall be required to maintain medical

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malpractice insurance coverage with limits no less than two million dollars per occurrence and six million dollars per policy year.

§ 6. (a). A physician discipline process evaluation panel is hereby created in the department of health to assess the physician discipline system. The panel shall consist of seven members appointed by the governor and may include no more than two members who are physicians and member who is an attorney. The panel members shall serve as individuals and not as representatives of any organization, institution, agency, or group The members of the panel shall receive no compensation for their services as panel members, but each shall be allowed their necessary and actual

expenses. The panel members shall not participate in or review pending matters, but may review final determinations, not subject to review by the review board, to assess the quality of work and whether the decisions are in the public interest. The panel shall assess the overall goals and objectives of physician discipline in New York state; how well the goals are being met; and whether and to what degree the process serves to minimize or deter misconduct. The panel may consult with medical and specialty societies, consumer organizations, other governmental organizations, state organizations, federal organizations and other states in its analysis and deliberations. The panel shall issue report of its findings and recommendations to the governor and the legislature by June 1, 1995.

(b) The members of the panel shall, with respect to their duties as members, be deemed to be state employees for the

purposes of section seventeen of the public officers law.

§ 7. This act shall take effect immediately; provided, however, that section six of this act shall expire and be deemed repealed January 31, 1994.

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AN ACT in relation to directing the commissioner of mental health to

report on the feasibility of providing inpatient and outpatient mental
health services through a public benefit corporation
Became a law July 31, 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 Assen-
bly, do enact as follows:

Section 1. The commissioner of mental health is directed to submit a report to the governor, the speaker of the assembly and the temporary president of the senate before January, 1, 1993 on the feasibility of providing inpatient and outpatient mental health services through a public benefit corporation. This report shall consider alternative and innovative methods of financing and structuring mental health services that

are currently being provided by ştate employees, with the goal of maintaining existing service capacity through utilization of the existing state work force under the current terms and conditions of employment. This report shall consider the feasibility of alternative methods of providing these state-operated mental health services, particularly for those state-operated psychiatric centers that provide a continuum of services, including intermediate and long-term care, acute care and outpatient services. This report shall address the following issues:

the possible advantages and disadvantages to the creation of a public benefit corporation to provide mental health services that

were formally provided by a state-operated program; the current role of existing state-operated inpatient and outpatient programs;

the expected need for inpatient and outpatient services in the area;, the availability of federal financial participation, particularly through the medical assistance program; the effect on salary and benefits for employees, particularly relating to the New York state employees retirement system; the role of collective bargaining agreements and agents under any alterEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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native system; the effect on employees' status if they returned to state system;

the need for any bonding authority or guarantees of state subsidies to guarantee the fiscal integrity of any alternative entities.

§ 2. This act shall take effect immediately.

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AN ACT to amend the education law, in relation to making certain

technical and housekeeping amendments
Became a law July 31, 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 Assem-
bly, do enact as follows:

Section 1. Subdivision 27 of section 1709 of the education law, as amended by chapter 269 of the laws of 1974, is amended to read follows:

27. To contract with any person, corporation or other school district for the conveyance of pupils residing within the district, when authorized to do so under subdivision nineteen of section two thousand [fifteen] twenty-one of this chapter, by vote of the inhabitants of the district entitled to vote, or to contract for the operation, maintenance and garaging of motor vehicles owned by the district, in accordance with such rules and regulations as such board of education may establish, consistent with the regulations of the commissioner [of education), Upon authorization by a school district meeting, every such contract of transportation may be made for period not exceeding five years, notwithstanding any provision of any other law inconsistent herewith.

§ 2. Subdivision il of section 1950 of the education law, as added by chapter 334 of the laws of 1972 and such section as renumbered by chapter 378 of the laws of 1972, is amended to read as follows:

[11.) 12. Nomination of a person to be elected to a board of cooperative educational services shall be made by a component district in writing to the clerk of the board of cooperative educational services at least fourteen days prior to the date of the annual meeting; and the clerk shall immediately forward notice of the name and residence address of each person so nominated to every component district by certified mail.

§ 3. Section 2102 of the education law, as separately amended by chapters 191 and 582 of the laws of 1985, is amended to read as follows:

§ 2102. Qualifications of officers. Every school district officer must be able to read and write and must be a qualified voter of the district; and each member of a board of education of a union free school district, common school district or a central school district shall have been a resident of the school district, or in the case of a person qualified by subdivision three of [seciton) section twenty hundred twelve of this chapter to vote in a district election, a resident of the district or reservation, for at least one year prior to the election.

Notwithstanding the provisions of any other general or special law to the contrary, a school district treasurer, collector or clerk need not be of the school district to hold such office in such district.

§ 4. Section 2503-a of the education law, as added by chapter 892 of the laws of 1965, is amended to read as follows:

§ 2503-a. Powers of boards of education to ban fraternities, sororities and other secret societies. 1. In its discretion,

the board of education of each school district, may adopt rules and regulations to abolish and/or prohibit any fraternity, sorority or other secret society in any secondary school under its jurisdiction.

[1 (a)] 2. Prior to the adoption and promulgation of a rule or regulation in accordance with the provisions of subdivision one of this section by any board of education of a school district, the board of education of the school district must find that the fraternity, sorority of secret society group has by virtue of its activities caused or created a disruption of or interference with the academic processes of any secondary school within its jurisdiction or caused or created any interference

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