N.Y. General Municipal Law § 103-a: Ground for cancellation of contract by municipal corporations and fire districts

§ 103-a. Ground for cancellation of contract by municipal corporations

and fire districts. A clause shall be inserted in all specifications or

contracts made or awarded by a municipal corporation or any public

department, agency or official thereof on or after the first day of

July, nineteen hundred fifty-nine or by a fire district or any agency or

official thereof on or after the first day of September, nineteen

hundred sixty, for work or services performed or to be performed, or

goods sold or to be sold, to provide that upon the refusal of a person,

when called before a grand jury, head of a state department, temporary

state commission or other state agency, the organized crime task force

in the department of law, head of a city department, or other city

agency, which is empowered to compel the attendance of witnesses and

examine them under oath, to testify in an investigation concerning any

transaction or contract had with the state, any political subdivision

thereof, a public authority or with any public department, agency or

official of the state or of any political subdivision thereof or of a

public authority, to sign a waiver of immunity against subsequent

criminal prosecution or to answer any relevant question concerning such

transaction or contract,

(a) such person, and any firm, partnership or corporation of which he

is a member, partner, director or officer shall be disqualified from

thereafter selling to or submitting bids to or receiving awards from or

entering into any contracts with any municipal corporation or fire

district, or any public department, agency or official thereof, for

goods, work or services, for a period of five years after such refusal,

and to provide also that

(b) any and all contracts made with any municipal corporation or any

public department, agency or official thereof on or after the first day

of July, nineteen hundred fifty-nine or with any fire district or any

agency or official thereof on or after the first day of September,

nineteen hundred sixty, by such person, and by any firm, partnership, or

corporation of which he is a member, partner, director or officer may be

cancelled or terminated by the municipal corporation or fire district

without incurring any penalty or damages on account of such cancellation

or termination, but any monies owing by the municipal corporation or

fire district for goods delivered or work done prior to the cancellation

or termination shall be paid.

The provisions of this section as in force and effect prior to the

first day of September, nineteen hundred sixty, shall apply to

specifications or contracts made or awarded by a municipal corporation

on or after the first day of July, nineteen hundred fifty-nine, but

prior to the first day of September, nineteen hundred sixty.