N.Y. PBA Law § 2875

§ 2875. Ground for cancellation of contract by public authority. A\nclause shall be inserted in all specifications or contracts hereafter\nmade or awarded by any public authority or by any official of any public\nauthority created by the state or any political subdivision, for work or\nservices performed or to be performed or goods sold or to be sold, to\nprovide that upon the refusal by a person, when called before a grand\njury, head of a state department, temporary state commission or other\nstate agency, the organized crime task force in the department of law,\nhead of a city department, or other city agency, which is empowered to\ncompel the attendance of witnesses and examine them under oath, to\ntestify in an investigation concerning any transaction or contract had\nwith the state, any political subdivision thereof, a public authority or\nwith any public department, agency or official of the state or of any\npolitical subdivision thereof or of a public authority, to sign a waiver\nof immunity against subsequent criminal prosecution or to answer any\nrelevant question concerning such transaction or contract,\n (a) such person, and any firm, partnership or corporation of which he\nis a member, partner, director or officer shall be disqualified from\nthereafter selling to or submitting bids to or receiving awards from or\nentering into any contracts with any public authority or official\nthereof, for goods, work or services, for a period of five years after\nsuch refusal, and to provide also that\n (b) any and all contracts made with any public authority or official\nthereof, since the effective date of this law, by such person and by any\nfirm, partnership or corporation of which he is a member, partner,\ndirector or officer may be cancelled or terminated by the public\nauthority without incurring any penalty or damages on account of such\ncancellation or termination, but any monies owing by the public\nauthority for goods delivered or work done prior to the cancellation or\ntermination shall be paid.\n