N.Y. State Finance Law § 139-b: Disqualification to contract with state

§ 139-b. Disqualification to contract with state. 1. Any person who,

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

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

force in the department of law, 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 question concerning such transaction or contract, and any firm,

partnership or corporation of which any such person 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 the state or any public department, agency or

official thereof, 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 one hundred thirty-nine-c of this

article.

It shall be the duty of the officer conducting the investigation

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

temporary state commission or other state agency, or the organized crime

task force in the department of law 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 state commissioner of

transportation, except in the event the investigation concerns a public

building transaction or contract said notice shall be sent to the state

commissioner of general services, and the appropriate departments,

agencies and officials of the state, political subdivisions thereof or

public authorities with whom the person 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.

2. Any person who stands convicted of a felony defined in article two

hundred or four hundred ninety-six or section 195.20 of the penal law,

and any firm, partnership or corporation that stands convicted of such

crime shall be disqualified from thereafter selling to or submitting

bids to or receiving awards from or entering into any contracts with the

state or any public department, agency or official thereof, for goods,

work or services. In the event a person or firm, partnership or

corporation is so convicted, the office responsible for prosecuting such

offense shall send notice of such conviction to the state commissioner

of general services, and to the office of the state comptroller and such

appropriate departments, agencies and officials of the state, political

subdivisions thereof or public authorities with whom the person or the

firm, partnership or corporation is known to have a contract.