N.Y. State Finance Law § 138: State contracts not to be assigned without consent

§ 138. State contracts not to be assigned without consent. A clause

shall be inserted in all specifications or contracts hereafter made or

awarded by the state, or any public department or official thereof,

prohibiting any contractor, to whom any contract shall be let, granted

or awarded, as required by law, from assigning, transferring, conveying,

sub-letting or otherwise disposing of the same, or of his right, title

or interest therein, or his power to execute such contract to any other

person, company or corporation, without the previous consent in writing

of the department or official awarding the same.

If any contractor, to whom any contract is hereafter let, granted or

awarded, as required by law, by the state, or by any public department

or official thereof, shall, without the previous written consent

specified in the first paragraph of this section, assign, transfer,

convey, sublet or otherwise dispose of the same, or his right, title or

interest therein, or his power to execute such contract, to any other

person, company or other corporation, the state, public department or

official, as the case may be, which let, made, granted or awarded said

contract, shall revoke and annul such contract, and the state, public

department or officer, as the case may be, shall be relieved and

discharged from any and all liability and obligations growing out of

said contract to such contract, and to the person, company, or

corporation to whom he shall assign, transfer, convey, sublet or

otherwise dispose of the same, and said contractor, and his assignee,

transferee, or sub-lessee, shall forfeit and lose all moneys,

theretofore earned under said contract except so much as may be required

to pay his employees; provided that nothing herein contained shall be

construed to hinder, prevent or affect an assignment by such contract

for the benefit of his creditors, made pursuant to the statutes of this

state.

Notwithstanding the provisions of this section, the commissioner of

general services and state agencies may, with concurrence of the office

of state comptroller when the original contract was subject to the

office of state comptroller approval, waive prior written consent of an

assignment, transfer, conveyance, sublease or other disposition of

contracts or monies under a contract let pursuant to article eleven of

this chapter. Such waiver may be granted under circumstances where the

contractor verifies to the commissioner of general services or state

agency, as applicable, that the assignment, transfer, conveyance,

sublease or other disposition is due to but not necessarily limited to,

a reorganization, merger or consolidation of the contractor's business

entity or enterprise. The commissioner of general services and state

agencies retain the right, as provided herein, to accept or reject an

assignment, transfer, conveyance, sublease or other disposition by the

contractor.