New York Laws
Article 9 - Contracts
139-C - Removal of Disqualification of Public Contractors by Petition.

§ 139-c. Removal of disqualification of public contractors by
petition. 1. Any firm, partnership or corporation which has become
subject to the cancellation or termination of a contract or
disqualification to contract on account of the refusal of a member,
partner, director or officer thereof to waive immunity when called to
testify, as provided in sections one hundred thirty-nine-a and one
hundred thirty-nine-b of this article, may, upon ten days' notice to the
attorney general and to the officer who conducted the investigation
before the grand jury, the head of a state department, the chairman of
the temporary state commission or other state agency, or the organized
crime task force in the department of law in which the refusal occurred,
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 discontinuing the disqualification. The petition shall set forth
grounds, including that the cooperation by petitioner with the grand
jury or other body which conducted the investigation at the time of the
refusal was such, and the amount and degree of control and financial
interest, if any, in the petitioning firm, partnership or corporation by
the member, partner, officer or director who refused to waive immunity
is such, that it will not be in the public interest to cancel or
terminate petitioner's contracts or to continue the disqualification, as
provided in sections one hundred thirty-nine-a and one hundred
thirty-nine-b of this article.

A copy of the petition and accompanying papers shall be served with
the notices to be given pursuant to this subdivision.

1-a. Any firm, partnership, or corporation which has become subject to
the cancellation or termination of a contract or disqualification to
contract on account of conviction of a crime defined in article two
hundred or four hundred ninety-six or section 195.20 of the penal law,
as provided in sections one hundred thirty-nine-a and one hundred
thirty-nine-b of this article, may, upon thirty days' notice to the
district attorney who conducted the action that led to the conviction,
and the office of the state comptroller commence a special proceeding at
a special term of the supreme court held within the judicial district in
which the conviction was obtained for an order discontinuing such
disqualification. The petition shall set forth the grounds, including
that the firm, partnership, or corporation has taken sufficient actions
to remove from responsibility officers and employees who engaged in the
actions that formed the basis of the conviction, that the firm,
partnership, or corporation has taken appropriate and sufficient actions
to ensure that the actions that formed the basis of the conviction are
unlikely to recur, and that it will not be in the public interest to
cancel or terminate petitioner's contracts or to continue the
disqualification, as provided in sections one hundred thirty-nine-a and
one hundred thirty-nine-b of this article; provided further, at any time
after such cancellation or disqualification any such firm, partnership
or corporation may apply to the supreme court, upon notice as provided
herein for an immediate termination of disqualification upon a reversal
of the conviction upon which the debarment was imposed.

2. Upon the filing of such petition the court may stay as to
petitioner, pending a decision upon the petition, the cancellation or
termination of any contracts resulting from such refusal upon such terms
as to notice or otherwise as may be just.

3. At least two days prior to the return day, the officer who
conducted the investigation before the grand jury or other body and the
attorney general may file answers to the petition or move for judgment
dismissing the petition as a matter of law. On or before the return day
the petitioner may file a reply to the answer.

4. Upon the return day the court may, upon the petition and answer and
other papers filed, forthwith render such judgment as the case requires,
or if a triable issue of fact is duly raised, it shall forthwith be
tried before a court sitting without a jury or before a referee. The
provisions of statute or rule governing references in an action shall
apply to a reference under this subdivision.

5. The court shall render judgment dismissing the petition on the
merits or discontinuing the disqualification upon the ground that the
public interest would be served by its discontinuance, and granting such
other relief as to the cancellation or termination of contracts as may
be appropriate, but without costs to petitioner.