Section 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.