N.Y. Public Authorities Law § 2876: Disqualification to contract with public authority

§ 2876. Disqualification to contract with public authority. Any person

who, 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 a public department,

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

or of a public authority, refuses to sign a waiver of immunity against

subsequent criminal prosecution or to answer any relevant questions

concerning such transaction or contract, 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 any official of any public authority created by the state

or any political subdivision, for goods, work or services, for a period

of five years after such refusal or until a disqualification shall be

removed pursuant to the provisions of section twenty-eight hundred

seventy-seven of this title.

It shall be the duty of the officer conducting the investigation

before the grand jury, the head of a state department, the chairman of

the temporary state commission or other state agency, the organized

crime task force in the department of law, the head of a city department

or other city agency before which the refusal occurs to send notice of

such refusal, together with the names of any firm, partnership or

corporation of which the person so refusing is known to be a member,

partner, officer or director, to the commissioner of transportation of

the state of New York, or the commissioner of general services as the

case may be, and the appropriate departments, agencies and officials of

the state, political subdivisions thereof or public authorities with

whom the persons so refusing and any firm, partnership or corporation of

which he is a member, partner, director or officer, is known to have a

contract. However, when such refusal occurs before a body other than a

grand jury, notice of refusal shall not be sent for a period of ten days

after such refusal occurs. Prior to the expiration of this ten day

period, any person, firm, partnership or corporation which has become

liable to the cancellation or termination of a contract or

disqualification to contract on account of such refusal may commence a

special proceeding at a special term of the supreme court, held within

the judicial district in which the refusal occurred, for an order

determining whether the questions in response to which the refusal

occurred were relevant and material to the inquiry. Upon the

commencement of such proceeding, the sending of such notice of refusal

to answer shall be subject to order of the court in which the proceeding

was brought in a manner and on such terms as the court may deem just. If

a proceeding is not brought within ten days, notice of refusal shall

thereupon be sent as provided herein.