N.Y. State Finance Law § 139-c: Removal of disqualification of public contractors by petition

§ 139-c. Removal of disqualification of public contractors by

petition. 1. Any firm, partnership or corporation which has become

subject to the cancellation or termination of a contract or

disqualification to contract on account of the refusal of a member,

partner, director or officer thereof to waive immunity when called to

testify, as provided in sections one hundred thirty-nine-a and one

hundred thirty-nine-b of this article, may, upon ten days' notice to the

attorney general and to the officer who conducted the investigation

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

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

crime task force in the department of law in which the refusal occurred,

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 discontinuing the disqualification. The petition shall set forth

grounds, including that the cooperation by petitioner with the grand

jury or other body which conducted the investigation at the time of the

refusal was such, and the amount and degree of control and financial

interest, if any, in the petitioning firm, partnership or corporation by

the member, partner, officer or director who refused to waive immunity

is such, that it will not be in the public interest to cancel or

terminate petitioner's contracts or to continue the disqualification, as

provided in sections one hundred thirty-nine-a and one hundred

thirty-nine-b of this article.

A copy of the petition and accompanying papers shall be served with

the notices to be given pursuant to this subdivision.

1-a. Any firm, partnership, or corporation which has become subject to

the cancellation or termination of a contract or disqualification to

contract on account of conviction of a crime defined in article two

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

as provided in sections one hundred thirty-nine-a and one hundred

thirty-nine-b of this article, may, upon thirty days' notice to the

district attorney who conducted the action that led to the conviction,

and the office of the state comptroller commence a special proceeding at

a special term of the supreme court held within the judicial district in

which the conviction was obtained for an order discontinuing such

disqualification. The petition shall set forth the grounds, including

that the firm, partnership, or corporation has taken sufficient actions

to remove from responsibility officers and employees who engaged in the

actions that formed the basis of the conviction, that the firm,

partnership, or corporation has taken appropriate and sufficient actions

to ensure that the actions that formed the basis of the conviction are

unlikely to recur, and that it will not be in the public interest to

cancel or terminate petitioner's contracts or to continue the

disqualification, as provided in sections one hundred thirty-nine-a and

one hundred thirty-nine-b of this article; provided further, at any time

after such cancellation or disqualification any such firm, partnership

or corporation may apply to the supreme court, upon notice as provided

herein for an immediate termination of disqualification upon a reversal

of the conviction upon which the debarment was imposed.

2. Upon the filing of such petition the court may stay as to

petitioner, pending a decision upon the petition, the cancellation or

termination of any contracts resulting from such refusal upon such terms

as to notice or otherwise as may be just.

3. At least two days prior to the return day, the officer who

conducted the investigation before the grand jury or other body and the

attorney general may file answers to the petition or move for judgment

dismissing the petition as a matter of law. On or before the return day

the petitioner may file a reply to the answer.

4. Upon the return day the court may, upon the petition and answer and

other papers filed, forthwith render such judgment as the case requires,

or if a triable issue of fact is duly raised, it shall forthwith be

tried before a court sitting without a jury or before a referee. The

provisions of statute or rule governing references in an action shall

apply to a reference under this subdivision.

5. The court shall render judgment dismissing the petition on the

merits or discontinuing the disqualification upon the ground that the

public interest would be served by its discontinuance, and granting such

other relief as to the cancellation or termination of contracts as may

be appropriate, but without costs to petitioner.