§ 2876. Disqualification to contract with public authority. Any person
who, 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 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 questions
concerning such transaction or contract, 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 any official of any public authority created by the state
or any political subdivision, 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 twenty-eight hundred
seventy-seven of this title.

It shall be the duty of the officer conducting the investigation
before the grand jury, the head of a state department, the chairman of
the temporary state commission or other state agency, the organized
crime task force in the department of law, the head of a city department
or other city agency 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 commissioner of transportation of
the state of New York, or the commissioner of general services as the
case may be, and the appropriate departments, agencies and officials of
the state, political subdivisions thereof or public authorities with
whom the persons 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.