§ 139-a. Ground for cancellation of contract by state. A clause shall
be inserted in all specifications or contracts hereafter made or awarded
by the state or any public department, agency or official thereof, for
work or services performed or to be performed, or goods sold or to be
sold, to provide that: (a) upon the refusal by a person, when called
before a grand jury, head of a state department, temporary state
commission or other state agency, or the organized crime task force in
the department of law, 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; or (b) upon the conviction of
any person of a crime defined in article two hundred or four hundred
ninety-six or section 195.20 of the penal law,

(i) 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 the state or any public department,
agency or official thereof, for goods, work or services, for a period of
five years after such refusal, a period of five years upon a conviction
of a misdemeanor defined in article two hundred or article four hundred
ninety-six or an attempt to commit a violation of section 195.20 of the
penal law, provided that in the event such conviction is the result of a
plea agreement resulting in a plea to such charge in lieu of a plea or
conviction of a felony defined in section 195.20, article two hundred or
article four hundred ninety-six of the penal law, all parties to such
agreement may agree that the period of such bar may be for a period of
up to ten years from the date of conviction, or upon conviction of a
felony defined in article two hundred or four hundred ninety-six or
section 195.20 of the penal law, for life, any convicted firm,
partnership or corporation is disqualified for its existence and to
provide also that

(ii) any and all contracts made with the state or any public
department, agency 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 state without incurring any penalty or damages on
account of such cancellation or termination, but any monies owing by the
state for goods delivered or work done prior to the cancellation or
termination shall be paid.