§ 2875. Ground for cancellation of contract by public authority. A
clause shall be inserted in all specifications or contracts hereafter
made or awarded by any public authority or by any official of any public
authority created by the state or any political subdivision, for work or
services performed or to be performed or goods sold or to be sold, to
provide that upon the refusal by 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 public authority 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 public authority or official
thereof, since the effective date of this law, 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 public
authority without incurring any penalty or damages on account of such
cancellation or termination, but any monies owing by the public
authority for goods delivered or work done prior to the cancellation or
termination shall be paid.