Section 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.