N.Y. Public Authorities Law § 2875: Ground for cancellation of contract by public authority

§ 2875. Ground for cancellation of contract by public authority. A

clause shall be inserted in all specifications or contracts hereafter

made or awarded by any public authority or by any official of any public

authority created by the state or any political subdivision, for work or

services performed or to be performed or goods sold or to be sold, to

provide that upon the refusal by 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 public authority 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 public authority or official

thereof, since the effective date of this law, 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 public

authority without incurring any penalty or damages on account of such

cancellation or termination, but any monies owing by the public

authority for goods delivered or work done prior to the cancellation or

termination shall be paid.