§ 103-a. Ground for cancellation of contract by municipal corporations
and fire districts. A clause shall be inserted in all specifications or
contracts made or awarded by a municipal corporation or any public
department, agency or official thereof on or after the first day of
July, nineteen hundred fifty-nine or by a fire district or any agency or
official thereof on or after the first day of September, nineteen
hundred sixty, for work or services performed or to be performed, or
goods sold or to be sold, to provide that upon the refusal of a person,
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 any public department, agency or
official of the state or of any political subdivision thereof or of a
public authority, to sign a waiver of immunity against subsequent
criminal prosecution or to answer any relevant question concerning such
transaction or contract,

(a) such person, 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 municipal corporation or fire
district, or any public department, agency or official thereof, for
goods, work or services, for a period of five years after such refusal,
and to provide also that

(b) any and all contracts made with any municipal corporation or any
public department, agency or official thereof on or after the first day
of July, nineteen hundred fifty-nine or with any fire district or any
agency or official thereof on or after the first day of September,
nineteen hundred sixty, by such person, and by any firm, partnership, or
corporation of which he is a member, partner, director or officer may be
cancelled or terminated by the municipal corporation or fire district
without incurring any penalty or damages on account of such cancellation
or termination, but any monies owing by the municipal corporation or
fire district for goods delivered or work done prior to the cancellation
or termination shall be paid.

The provisions of this section as in force and effect prior to the
first day of September, nineteen hundred sixty, shall apply to
specifications or contracts made or awarded by a municipal corporation
on or after the first day of July, nineteen hundred fifty-nine, but
prior to the first day of September, nineteen hundred sixty.