New York Laws
Article 9 - Contracts
139-B - Disqualification to Contract With State.

§ 139-b. Disqualification to contract with state. 1. Any person who,
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 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 question concerning such transaction or contract, and any firm,
partnership or corporation of which any such person 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 or until a disqualification shall be removed
pursuant to the provisions of section one hundred thirty-nine-c of this
article.

It shall be the duty of the officer conducting the investigation
before the grand jury, the head of a state department, the chair of the
temporary state commission or other state agency, or the organized crime
task force in the department of law 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 state commissioner of
transportation, except in the event the investigation concerns a public
building transaction or contract said notice shall be sent to the state
commissioner of general services, and the appropriate departments,
agencies and officials of the state, political subdivisions thereof or
public authorities with whom the person 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.

2. Any person who stands convicted of a felony defined in article two
hundred or four hundred ninety-six or section 195.20 of the penal law,
and any firm, partnership or corporation that stands convicted of such
crime 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. In the event a person or firm, partnership or
corporation is so convicted, the office responsible for prosecuting such
offense shall send notice of such conviction to the state commissioner
of general services, and to the office of the state comptroller and such
appropriate departments, agencies and officials of the state, political

subdivisions thereof or public authorities with whom the person or the
firm, partnership or corporation is known to have a contract.

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