The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   628

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                             January 9, 2017
                               ___________

Introduced by M. of A. ROSENTHAL, MOSLEY, GOTTFRIED, OTIS, MOYA, WEPRIN,
  HOOPER,  ORTIZ,  PERRY, DAVILA, DINOWITZ, SIMON, M. G. MILLER, LIFTON,
  BARRON, SEAWRIGHT, RICHARDSON, BENEDETTO, STECK, BRONSON, MAYER, CRES-
  PO, HUNTER, JENNE -- Multi-Sponsored by -- M. of A. COOK, HEVESI, KIM,
  LENTOL, RIVERA, SKARTADOS -- read once and referred to  the  Committee
  on Judiciary

AN  ACT  to  amend the lien law, in relation to employee liens; to amend
  the labor law, in relation to employee complaints; to amend the  civil
  practice  law  and  rules,  in  relation to grounds for attachment; to
  amend the business corporation law, in relation to streamlining proce-
  dures where employees may hold  shareholders  of  non-publicly  traded
  corporations personally liable for wage theft; and to amend the limit-
  ed  liability company law, in relation to creating a right for victims
  of wage theft to hold the  ten  members  with  the  largest  ownership
  interests in a company personally liable for wage theft

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2 of the lien law is amended by  adding  three  new
subdivisions 21, 22 and 23 to read as follows:
  21.  EMPLOYEE.  THE  TERM "EMPLOYEE", WHEN USED IN THIS CHAPTER, SHALL
HAVE THE SAME MEANING AS "EMPLOYEE" PURSUANT TO ARTICLES ONE, SIX, NINE-
TEEN AND NINETEEN-A OF THE LABOR LAW, AS APPLICABLE, OR THE  FAIR  LABOR
STANDARDS ACT, 29 U.S.C. § 201 ET. SEQ., AS APPLICABLE.
  22.  EMPLOYER.  THE  TERM "EMPLOYER", WHEN USED IN THIS CHAPTER, SHALL
HAVE THE SAME MEANING AS "EMPLOYER" PURSUANT TO ARTICLES ONE, SIX, NINE-
TEEN AND NINETEEN-A OF THE LABOR LAW, AS APPLICABLE, OR THE  FAIR  LABOR
STANDARDS ACT, 29 U.S.C. § 201 ET. SEQ., AS APPLICABLE.
  23.  WAGE  CLAIM.  THE  TERM  "WAGE CLAIM", WHEN USED IN THIS CHAPTER,
MEANS A CLAIM THAT AN EMPLOYEE HAS SUFFERED A VIOLATION OF SECTIONS  ONE
HUNDRED  SEVENTY,  ONE HUNDRED NINETY-ONE, ONE HUNDRED NINETY-THREE, ONE
HUNDRED NINETY-SIX-D, SIX HUNDRED FIFTY-TWO OR SIX HUNDRED SEVENTY-THREE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00117-01-7

A. 628                              2

OF THE LABOR LAW OR THE RELATED REGULATIONS AND WAGE ORDERS  PROMULGATED
BY THE COMMISSIONER, A CLAIM FOR WAGES DUE TO AN EMPLOYEE PURSUANT TO AN
EMPLOYMENT CONTRACT THAT WERE UNPAID IN VIOLATION OF THAT CONTRACT, OR A
CLAIM  THAT  AN  EMPLOYEE HAS SUFFERED A VIOLATION OF 29 U.S.C. § 206 OR
207.
  § 2. Section 3 of the lien law, as amended by chapter 137 of the  laws
of 1985, is amended to read as follows:
  §  3.  Mechanic's  lien  AND  EMPLOYEE'S  LIEN  on [real] property. 1.
MECHANIC'S LIEN.  A  contractor,  subcontractor,  laborer,  materialman,
landscape gardener, nurseryman or person or corporation selling fruit or
ornamental trees, roses, shrubbery, vines and small fruits, who performs
labor  or  furnishes materials for the improvement of real property with
the consent or at the request of the owner thereof,  or  of  his  agent,
contractor  or  subcontractor,  and any trust fund to which benefits and
wage supplements are due or payable for the benefit  of  such  laborers,
shall  have  a lien for the principal and interest, of the value, or the
agreed price, of such labor, including benefits and wage supplements due
or payable for the benefit of any laborer, or materials  upon  the  real
property  improved or to be improved and upon such improvement, from the
time of filing a notice of such lien  as  prescribed  in  this  chapter.
Where the contract for an improvement is made with a husband or wife and
the property belongs to the other or both, the husband or wife contract-
ing  shall  also  be  presumed to be the agent of the other, unless such
other having knowledge of the improvement shall, within ten  days  after
learning  of  the  contract give the contractor written notice of his or
her refusal to consent to the improvement. Within  the  meaning  of  the
provisions  of this chapter, materials actually manufactured for but not
delivered to the real property, shall also be  deemed  to  be  materials
furnished.
  2.  EMPLOYEE'S  LIEN. AN EMPLOYEE WHO HAS A WAGE CLAIM AS THAT TERM IS
DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO OF THIS CHAPTER SHALL
HAVE A LIEN ON HIS OR HER EMPLOYER'S INTEREST IN PROPERTY FOR THE  VALUE
OF  THE  WAGE  CLAIM ARISING OUT OF THE EMPLOYMENT, INCLUDING LIQUIDATED
DAMAGES PURSUANT TO SUBDIVISION ONE-A OF  SECTION  ONE  HUNDRED  NINETY-
EIGHT, SECTION SIX HUNDRED SIXTY-THREE OR SECTION SIX HUNDRED EIGHTY-ONE
OF  THE  LABOR  LAW,  OR  29 U.S.C. § 216 (B), FROM THE TIME OF FILING A
NOTICE OF SUCH LIEN AS PRESCRIBED IN THIS CHAPTER.  AN  EMPLOYEE'S  LIEN
BASED ON A WAGE CLAIM MAY BE HAD AGAINST THE EMPLOYER'S INTEREST IN REAL
PROPERTY  AND  AGAINST THE EMPLOYER'S INTEREST IN PERSONAL PROPERTY THAT
CAN BE SUFFICIENTLY DESCRIBED WITHIN THE MEANING OF SECTION 9-108 OF THE
UNIFORM COMMERCIAL CODE, EXCEPT THAT AN EMPLOYEE'S LIEN SHALL NOT EXTEND
TO DEPOSIT ACCOUNTS OR GOODS AS THOSE TERMS ARE DEFINED IN SECTION 9-102
OF THE UNIFORM COMMERCIAL CODE.  THE DEPARTMENT OF LABOR AND THE  ATTOR-
NEY  GENERAL  MAY OBTAIN AN EMPLOYEE'S LIEN FOR THE VALUE OF WAGE CLAIMS
OF THE EMPLOYEES WHO ARE THE  SUBJECT  OF  THEIR  INVESTIGATIONS,  COURT
ACTIONS OR ADMINISTRATIVE AGENCY ACTIONS.
  3.  AS  USED  IN  THIS  ARTICLE AND UNLESS OTHERWISE SPECIFIED, A LIEN
SHALL MEAN AN EMPLOYEE'S LIEN OR A MECHANIC'S LIEN.
  § 3. Subdivisions 1 and 2 of section 4 of the lien law, subdivision  1
as amended by chapter 515 of the laws of 1929 and subdivision 2 as added
by chapter 704 of the laws of 1985, are amended to read as follows:
  (1) [Such] A MECHANIC'S OR EMPLOYEE'S lien AND EMPLOYEE'S LIEN AGAINST
REAL  PROPERTY  shall  extend to the owner's right, title or interest in
the real property and improvements, existing at the time of  filing  the
notice  of  lien,  or thereafter acquired, except as hereinafter in this
article provided. If an owner assigns his interest in such real property

A. 628                              3

by a general assignment for the benefit of creditors, within thirty days
prior to such filing,  the  lien  shall  extend  to  the  interest  thus
assigned.  If  any  part  of the real property subjected to such lien be
removed  by  the  owner  or  by any other person, at any time before the
discharge thereof, such removal shall  not  affect  the  rights  of  the
lienor, either in respect to the remaining real property, or the part so
removed.  If  labor  is  performed  for,  or  materials  furnished to, a
contractor or subcontractor for  an  improvement,  the  MECHANIC'S  lien
shall  not  be  for  a sum greater than the sum earned and unpaid on the
contract at the time of filing the notice of lien, and  any  sum  subse-
quently  earned  thereon. In no case shall the owner be liable to pay by
reason of all MECHANIC'S liens created pursuant to this  article  a  sum
greater  than  the  value  or  agreed  price  of the labor and materials
remaining unpaid, at the time of filing notices of such liens, except as
hereinafter provided.
  (2) [Such] A MECHANIC'S OR EMPLOYEE'S lien shall  not  extend  to  the
owner's  right,  title  or  interest  in real property and improvements,
existing at the time of filing the notice of lien if  such  lien  arises
from the failure of a lessee of the right to explore, develop or produce
natural  gas or oil, to pay for, compensate or render value for improve-
ments made with the consent or at  the  request  of  such  lessee  by  a
contractor,  subcontractor,  materialman,  equipment  operator or owner,
landscaper, nurseryman, or person or corporation who performs  labor  or
furnishes  materials  for the exploration, development, or production of
oil or natural gas or otherwise  improves  such  leased  property.  Such
MECHANIC'S  OR EMPLOYEE'S lien shall extend to the improvements made for
the exploration, development and production of oil and natural gas,  and
the  working  interest held by a lessee of the right to explore, develop
or produce oil and natural gas.
  § 4. The opening paragraph of section 4-a of the lien law, as  amended
by chapter 696 of the laws of 1959, is amended to read as follows:
  The  proceeds  of  any  insurance which by the terms of the policy are
payable to the owner of real property improved, and actually received or
to be received by him because of the destruction or removal by  fire  or
other  casualty  of an improvement on which lienors have performed labor
or services or for which they have furnished materials, OR UPON WHICH AN
EMPLOYEE HAS ESTABLISHED AN EMPLOYEE'S LIEN, shall after the  owner  has
been  reimbursed  therefrom  for  premiums paid by him, if any, for such
insurance, be subject to liens provided by this act to the  same  extent
and  in  the same order of priority as the real property would have been
had such improvement not been so destroyed or removed.
  § 5. Subdivisions 1, 2 and 5 of section 9 of the lien law, as  amended
by chapter 515 of the laws of 1929, are amended to read as follows:
  1.  The  name OF THE LIENOR, and EITHER THE residence of the lienor OR
THE NAME AND BUSINESS ADDRESS OF THE LIENOR'S ATTORNEY, IF ANY;  and  if
the  lienor  is  a partnership or a corporation, the business address of
such firm, or corporation, the names of partners and principal place  of
business,  and if a foreign corporation, its principal place of business
within the state.
  2. The name of the owner of the [real] property against whose interest
therein a lien is claimed, and the interest of the owner as far as known
to the lienor.
  5. The amount unpaid to the lienor for such labor or materials, OR THE
AMOUNT OF THE WAGE CLAIM IF A WAGE CLAIM IS THE BASIS FOR  ESTABLISHMENT
OF  THE  LIEN,  THE  ITEMS OF THE WAGE CLAIM AND THE VALUE THEREOF WHICH
MAKE UP THE AMOUNT FOR WHICH THE LIENOR CLAIMS A LIEN.

A. 628                              4

  § 6. Subdivision 1 of section 10 of the lien law, as amended by  chap-
ter 367 of the laws of 2011, is amended to read as follows:
  1.  (A)  Notice of MECHANIC'S lien may be filed at any time during the
progress of the work and the furnishing of  the  materials,  or,  within
eight months after the completion of the contract, or the final perform-
ance  of the work, or the final furnishing of the materials, dating from
the last item of work performed or materials furnished; provided, howev-
er, that where the improvement is related to real property  improved  or
to  be  improved with a single family dwelling, the notice of MECHANIC'S
lien may be filed at any time during the progress of the  work  and  the
furnishing of the materials, or, within four months after the completion
of  the  contract,  or  the  final performance of the work, or the final
furnishing of the materials, dating from the last item of work performed
or materials furnished; and provided further where the notice of MECHAN-
IC'S lien is for retainage, the notice of MECHANIC'S lien may  be  filed
within  ninety days after the date the retainage was due to be released;
except that in the case of a MECHANIC'S lien by a  real  estate  broker,
the notice of MECHANIC'S lien may be filed only after the performance of
the  brokerage services and execution of lease by both lessor and lessee
and only if a copy of the alleged written  agreement  of  employment  or
compensation  is  annexed to the notice of lien, provided that where the
payment pursuant to the written agreement of employment or  compensation
is to be made in installments, then a notice of lien may be filed within
eight  months after the final payment is due, but in no event later than
a date five years after the first payment was made. For purposes of this
section, the term "single family dwelling" shall not include a  dwelling
unit which is a part of a subdivision that has been filed with a munici-
pality  in which the subdivision is located when at the time the lien is
filed, such property in the subdivision is owned by  the  developer  for
purposes  other  than  his  personal  residence.  For  purposes  of this
section, "developer" shall mean  and  include  any  private  individual,
partnership,  trust or corporation which improves two or more parcels of
real property with single family dwellings pursuant to a  common  scheme
or plan. [The]
  (B)  NOTICE OF EMPLOYEE'S LIEN MAY BE FILED AT ANY TIME NOT LATER THAN
THREE YEARS FOLLOWING THE END OF THE EMPLOYMENT GIVING RISE TO THE  WAGE
CLAIM.
  (C) A notice of lien, OTHER THAN FOR A LIEN ON PERSONAL PROPERTY, must
be filed in the clerk's office of the county where the property is situ-
ated.  If  such property is situated in two or more counties, the notice
of lien shall be filed in the office of the clerk of each of such  coun-
ties.  The  county clerk of each county shall provide and keep a book to
be called the "lien docket," which shall be suitably  ruled  in  columns
headed  "owners,"  "lienors," "lienor's attorney," "property," "amount,"
"time of filing," "proceedings had," in each of which he shall enter the
particulars of the notice, properly belonging therein.  The  date,  hour
and  minute of the filing of each notice of lien shall be entered in the
proper column. Except where the county clerk maintains  a  block  index,
the  names  of the owners shall be arranged in such book in alphabetical
order. The validity of the lien and the right to file a  notice  thereof
shall  not  be  affected  by the death of the owner before notice of the
lien is filed.  A NOTICE OF EMPLOYEE'S LIEN ON PERSONAL PROPERTY MUST BE
FILED, TOGETHER WITH A FINANCING STATEMENT, IN THE FILING OFFICE AS  SET
FORTH IN SECTION 9-501 OF THE UNIFORM COMMERCIAL CODE.
  § 7. Section 11 of the lien law, as amended by chapter 147 of the laws
of 1996, is amended to read as follows:

A. 628                              5

  §  11.  Service of copy of notice of lien.  1. Within five days before
or thirty days after filing the notice of A MECHANIC'S lien, the  lienor
shall  serve  a copy of such notice upon the owner, if a natural person,
(a) by delivering the same to him personally, or if the owner cannot  be
found,  to his agent or attorney, or (b) by leaving it at his last known
place of residence in the city or town in which  the  real  property  or
some  part  thereof  is  situated,  with  a  person  of suitable age and
discretion, or (c) by registered or certified mail addressed to his last
known place of residence, or (d) if such owner has no such residence  in
such  city or town, or cannot be found, and he has no agent or attorney,
by affixing a copy thereof conspicuously on such property,  between  the
hours of nine o'clock in the forenoon and four o'clock in the afternoon;
if  the owner be a corporation, said service shall be made (i) by deliv-
ering such copy to and leaving the same with the president,  vice-presi-
dent, secretary or clerk to the corporation, the cashier, treasurer or a
director  or  managing  agent  thereof, personally, within the state, or
(ii) if such officer cannot be found within the state by affixing a copy
thereof conspicuously on such property between the hours of nine o'clock
in the forenoon and four o'clock in the afternoon, or  (iii)  by  regis-
tered  or  certified mail addressed to its last known place of business.
Failure to file proof of such a service with  the  county  clerk  within
thirty-five  days  after the notice of lien is filed shall terminate the
notice as a lien. Until service of the notice has been  made,  as  above
provided, an owner, without knowledge of the lien, shall be protected in
any  payment made in good faith to any contractor or other person claim-
ing a lien.
  2. WITHIN FIVE DAYS BEFORE OR THIRTY DAYS AFTER FILING THE  NOTICE  OF
AN  EMPLOYEE'S  LIEN,  THE LIENOR SHALL SERVE A COPY OF SUCH NOTICE UPON
THE EMPLOYER, IF A NATURAL PERSON, (A) BY DELIVERING  THE  SAME  TO  HIM
PERSONALLY,  OR  IF THE EMPLOYER CANNOT BE FOUND, TO HIS AGENT OR ATTOR-
NEY, OR (B) BY LEAVING IT AS HIS LAST KNOWN PLACE OF RESIDENCE OR  BUSI-
NESS, WITH A PERSON OF SUITABLE AGE AND DISCRETION, OR (C) BY REGISTERED
OR  CERTIFIED  MAIL  ADDRESSED  TO  HIS LAST KNOWN PLACE OF RESIDENCE OR
BUSINESS, OR (D) IF SUCH EMPLOYER OWNS REAL PROPERTY, BY AFFIXING A COPY
THEREOF CONSPICUOUSLY ON  SUCH  PROPERTY,  BETWEEN  THE  HOURS  OF  NINE
O'CLOCK  IN  THE  FORENOON AND FOUR O'CLOCK IN THE AFTERNOON. THE LIENOR
ALSO SHALL, WITHIN THIRTY DAYS AFTER FILING  THE  NOTICE  OF  EMPLOYEE'S
LIEN, AFFIX A COPY THEREOF CONSPICUOUSLY ON THE REAL PROPERTY IDENTIFIED
IN  THE  NOTICE OF EMPLOYEE'S LIEN, BETWEEN THE HOURS OF NINE O'CLOCK IN
THE FORENOON AND FOUR O'CLOCK IN THE AFTERNOON. IF  THE  EMPLOYER  BE  A
CORPORATION,  SAID  SERVICE SHALL BE MADE (I) BY DELIVERING SUCH COPY TO
AND LEAVING THE SAME WITH THE PRESIDENT,  VICE-PRESIDENT,  SECRETARY  OR
CLERK TO THE CORPORATION, THE CASHIER, TREASURER OR A DIRECTOR OR MANAG-
ING AGENT THEREOF, PERSONALLY, WITHIN THE STATE, OR (II) IF SUCH OFFICER
CANNOT BE FOUND WITHIN THE STATE BY AFFIXING A COPY THEREOF CONSPICUOUS-
LY  ON  SUCH  PROPERTY BETWEEN THE HOURS OF NINE O'CLOCK IN THE FORENOON
AND FOUR O'CLOCK IN THE AFTERNOON, OR (III) BY REGISTERED  OR  CERTIFIED
MAIL  ADDRESSED TO ITS LAST KNOWN PLACE OF BUSINESS, OR (IV) BY DELIVERY
TO THE SECRETARY OF THE DEPARTMENT  OF  STATE  IN  THE  SAME  MANNER  AS
REQUIRED  BY  SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SECTION THREE HUNDRED
SIX OF THE BUSINESS CORPORATION LAW.  FAILURE TO FILE PROOF  OF  SUCH  A
SERVICE  WITH  THE COUNTY CLERK WITHIN THIRTY-FIVE DAYS AFTER THE NOTICE
OF LIEN IS FILED SHALL TERMINATE THE NOTICE AS A LIEN. UNTIL SERVICE  OF
THE NOTICE HAS BEEN MADE, AS ABOVE PROVIDED, AN OWNER, WITHOUT KNOWLEDGE
OF THE LIEN, SHALL BE PROTECTED IN ANY PAYMENT MADE IN GOOD FAITH TO ANY
OTHER PERSON CLAIMING A LIEN.

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  §  8.  Section  11-b of the lien law, as amended by chapter 147 of the
laws of 1996, is amended to read as follows:
  §  11-b.  Copy of notice of MECHANIC'S lien to a contractor or subcon-
tractor.  Within five days before or thirty days after filing  a  notice
of MECHANIC'S lien in accordance with section ten of this chapter or the
filing  of  an amendment of notice of MECHANIC'S lien in accordance with
section twelve-a of this [chapter] ARTICLE the lienor shall serve a copy
of such notice or amendment by certified mail on the contractor, subcon-
tractor, assignee or legal representative for whom he was employed or to
whom he furnished materials or if the lienor is a contractor or  subcon-
tractor  to  the  person, firm or corporation with whom the contract was
made. A lienor having a direct contractual relationship with  a  subcon-
tractor  or  a  sub-subcontractor  but  not with a contractor shall also
serve a copy of such notice  or  amendment  by  certified  mail  to  the
contractor.  Failure  to  file  proof  of such a service with the county
clerk within thirty-five days after the notice of lien  is  filed  shall
terminate the notice as a lien. Any lienor, or a person acting on behalf
of  a lienor, who fails to serve a copy of the notice of MECHANIC'S lien
as required by this section shall be liable  for  reasonable  attorney's
fees,  costs  and  expenses,  as  determined  by  the court, incurred in
obtaining such copy.
  § 9. Subdivision 1 of section 12-a of the  lien  law,  as  amended  by
chapter 1048 of the laws of 1971, is amended to read as follows:
  1. Within sixty days after the original filing, a lienor may amend his
lien  upon  twenty  days  notice to existing lienors, mortgagees and the
owner, provided that no action or proceeding to enforce  or  cancel  the
mechanics'  lien  OR  EMPLOYEE'S  LIEN  has been brought in the interim,
where the purpose of the amendment is to reduce the amount of the  lien,
except the question of wilful exaggeration shall survive such amendment.
  § 10. Subdivision 1 of section 13 of the lien law, as amended by chap-
ter 878 of the laws of 1947, is amended to read as follows:
  (1) [A] AN EMPLOYEE'S LIEN, OR A lien for materials furnished or labor
performed  in the improvement of real property, shall have priority over
a conveyance, mortgage, judgment or other claim  against  such  property
not  recorded, docketed or filed at the time of the filing of the notice
of such lien, except as  hereinafter  in  this  chapter  provided;  over
advances  made upon any mortgage or other encumbrance thereon after such
filing, except as hereinafter in this article  provided;  and  over  the
claim  of  a creditor who has not furnished materials or performed labor
upon such property, if such property has been assigned by the owner by a
general assignment for the benefit  of  creditors,  within  thirty  days
before the filing of either of such notices; and also over an attachment
hereafter  issued  or a money judgment hereafter recovered upon a claim,
which, in whole or in part,  was  not  for  materials  furnished,  labor
performed  or moneys advanced for the improvement of such real property;
and over any claim or lien acquired in any proceedings upon  such  judg-
ment.  Such  liens  shall  also  have priority over advances made upon a
contract by an owner for an improvement of real property which  contains
an  option  to  the contractor, his successor or assigns to purchase the
property, if such advances were made after the time when the labor began
or the first item of material was furnished, as stated in the notice  of
lien. If several buildings are demolished, erected, altered or repaired,
or  several  pieces  or parcels of real property are improved, under one
contract, and there are conflicting liens  thereon,  each  lienor  shall
have  priority upon the particular part of the real property or upon the
particular building or premises where his  labor  is  performed  or  his

A. 628                              7

materials  are  used.  Persons  shall have no priority on account of the
time of filing their respective notices of liens, but all liens shall be
on a parity except as hereinafter in section fifty-six of  this  chapter
provided;  and  except  that  in  all cases laborers for daily or weekly
wages WITH A MECHANIC'S LIEN, AND EMPLOYEES  WITH  AN  EMPLOYEE'S  LIEN,
shall have preference over all other claimants under this article.
  §  11.  Section  17  of the lien law, as amended by chapter 324 of the
laws of 2000, is amended to read as follows:
  § 17. Duration of lien. 1. (A) No MECHANIC'S lien  specified  in  this
article  shall  be  a  lien  for a longer period than one year after the
notice of lien has been filed, unless within  that  time  an  action  is
commenced  to  foreclose  the lien, and a notice of the pendency of such
action, whether in a court of record or in a court  not  of  record,  is
filed with the county clerk of the county in which the notice of lien is
filed,  containing the names of the parties to the action, the object of
the action, a brief description of the real property  affected  thereby,
and  the  time  of  filing the notice of lien; or unless an extension to
such lien, except for a lien on real property improved or to be improved
with a single family dwelling, is filed with the  county  clerk  of  the
county  in  which  the  notice of lien is filed within one year from the
filing of the original notice of lien, continuing  such  lien  and  such
lien  shall  be redocketed as of the date of filing such extension. Such
extension shall contain the names of the lienor and  the  owner  of  the
real  property  against  whose  interest therein such lien is claimed, a
brief description of the real property affected by such lien, the amount
of such lien, and the date of filing the notice of lien. No  lien  shall
be  continued  by  such extension for more than one year from the filing
thereof. In the event an action is not commenced to foreclose  the  lien
within  such  extended period, such lien shall be extinguished unless an
order be granted by a court of record or a  judge  or  justice  thereof,
continuing  such  lien, and such lien shall be redocketed as of the date
of granting such order and a statement made that such lien is  continued
by  virtue  of  such  order.  A  lien on real property improved or to be
improved with a single family dwelling may only be extended by an  order
of  a  court  of record, or a judge or justice thereof. No lien shall be
continued by court order for more than one year from the granting there-
of, but a new order and entry may be made  in  each  of  two  successive
years.  If  a  lienor  is made a party defendant in an action to enforce
another lien, and the plaintiff or such defendant has filed a notice  of
the  pendency  of the action within the time prescribed in this section,
the lien of such defendant is thereby continued. Such  action  shall  be
deemed an action to enforce the lien of such defendant lienor. The fail-
ure to file a notice of pendency of action shall not abate the action as
to any person liable for the payment of the debt specified in the notice
of  lien,  and  the  action  may  be prosecuted to judgment against such
person. The provisions of this section in  regard  to  continuing  liens
shall  apply to liens discharged by deposit or by order on the filing of
an undertaking. Where a lien is discharged by deposit  or  by  order,  a
notice of pendency of action shall not be filed.
  (B) A lien, the duration of which has been extended by the filing of a
notice  of  the pendency of an action as above provided, shall neverthe-
less terminate as a lien after such notice has been canceled as provided
in section sixty-five hundred fourteen of the  civil  practice  law  and
rules  or  has ceased to be effective as constructive notice as provided
in section sixty-five hundred thirteen of the  civil  practice  law  and
rules.

A. 628                              8

  2. (A) NO EMPLOYEE'S LIEN ON REAL PROPERTY SHALL BE A LIEN FOR A LONG-
ER  PERIOD THAN ONE YEAR AFTER THE NOTICE OF LIEN HAS BEEN FILED, UNLESS
AN EXTENSION TO SUCH LIEN IS FILED WITH THE COUNTY CLERK OF  THE  COUNTY
IN  WHICH THE NOTICE OF LIEN IS FILED WITHIN ONE YEAR FROM THE FILING OF
THE ORIGINAL NOTICE OF LIEN, CONTINUING SUCH LIEN AND SUCH LIEN SHALL BE
REDOCKETED AS OF THE DATE OF FILING SUCH EXTENSION. SUCH EXTENSION SHALL
CONTAIN  THE  NAMES  OF  THE  LIENOR  AND THE OWNER OF THE REAL PROPERTY
AGAINST WHOSE INTEREST THEREIN SUCH LIEN IS CLAIMED, A BRIEF DESCRIPTION
OF THE PROPERTY AFFECTED BY SUCH LIEN, THE AMOUNT OF SUCH LIEN, AND  THE
DATE  OF  FILING THE NOTICE OF LIEN.  NO LIEN SHALL BE CONTINUED BY SUCH
EXTENSION FOR MORE THAN ONE YEAR FROM THE FILING THEREOF. IN  THE  EVENT
AN  ACTION  IS  NOT COMMENCED TO OBTAIN JUDGMENT ON THE WAGE CLAIM OR TO
FORECLOSE THE LIEN WITHIN SUCH  EXTENDED  PERIOD,  SUCH  LIEN  SHALL  BE
EXTINGUISHED  UNLESS AN ORDER BE GRANTED BY A COURT OF RECORD OR A JUDGE
OR JUSTICE THEREOF, CONTINUING SUCH LIEN, AND SUCH LIEN SHALL BE REDOCK-
ETED AS OF THE DATE OF GRANTING SUCH ORDER AND  A  STATEMENT  MADE  THAT
SUCH LIEN IS CONTINUED BY VIRTUE OF SUCH ORDER.
  (B)  NO  EMPLOYEE'S  LIEN  ON  PERSONAL PROPERTY SHALL BE A LIEN FOR A
LONGER PERIOD THAN ONE YEAR  AFTER  THE  FINANCING  STATEMENT  HAS  BEEN
RECORDED,  UNLESS  AN  EXTENSION  TO SUCH LIEN, IS FILED WITH THE FILING
OFFICE IN WHICH THE FINANCING STATEMENT IS REQUIRED TO BE FILED PURSUANT
TO SECTION 9-501 OF THE UNIFORM COMMERCIAL CODE WITHIN ONE YEAR FROM THE
FILING OF THE ORIGINAL FINANCING STATEMENT, CONTINUING SUCH  LIEN.  SUCH
EXTENSION  SHALL  CONTAIN  THE  NAMES OF THE LIENOR AND THE OWNER OF THE
PROPERTY AGAINST WHOSE INTEREST THEREIN SUCH LIEN IS  CLAIMED,  A  BRIEF
DESCRIPTION  OF  THE  PRIOR  FINANCING STATEMENT TO BE EXTENDED, AND THE
DATE OF FILING THE PRIOR FINANCING STATEMENT.  NO LIEN SHALL BE  CONTIN-
UED BY SUCH EXTENSION FOR MORE THAN ONE YEAR FROM THE FILING THEREOF. IN
THE  EVENT  AN  ACTION  IS  NOT COMMENCED TO OBTAIN JUDGMENT ON THE WAGE
CLAIM OR TO FORECLOSE THE LIEN WITHIN SUCH EXTENDED  PERIOD,  SUCH  LIEN
SHALL BE EXTINGUISHED UNLESS AN ORDER BE GRANTED BY A COURT OF RECORD OR
A JUDGE OR JUSTICE THEREOF, CONTINUING SUCH LIEN, AND SUCH LIEN SHALL BE
REFILED  AS OF THE DATE OF GRANTING SUCH ORDER AND A STATEMENT MADE THAT
SUCH LIEN IS CONTINUED BY VIRTUE OF SUCH ORDER.
  (C) IF A LIENOR IS MADE A PARTY DEFENDANT  IN  AN  ACTION  TO  ENFORCE
ANOTHER  LIEN, AND THE PLAINTIFF OR SUCH DEFENDANT HAS FILED A NOTICE OF
THE PENDENCY OF THE ACTION WITHIN THE TIME PRESCRIBED IN  THIS  SECTION,
THE  LIEN  OF  SUCH DEFENDANT IS THEREBY CONTINUED. SUCH ACTION SHALL BE
DEEMED AN ACTION TO ENFORCE THE LIEN OF SUCH DEFENDANT LIENOR. THE FAIL-
URE TO FILE A NOTICE OF PENDENCY OF ACTION SHALL NOT ABATE THE ACTION AS
TO ANY PERSON LIABLE FOR THE PAYMENT OF THE DEBT SPECIFIED IN THE NOTICE
OF LIEN, AND THE ACTION MAY  BE  PROSECUTED  TO  JUDGMENT  AGAINST  SUCH
PERSON.    THE  PROVISIONS OF THIS SECTION IN REGARD TO CONTINUING LIENS
SHALL APPLY TO LIENS DISCHARGED BY DEPOSIT OR BY ORDER ON THE FILING  OF
AN  UNDERTAKING.  WHERE  A  LIEN IS DISCHARGED BY DEPOSIT OR BY ORDER, A
NOTICE OF PENDENCY OF ACTION SHALL NOT BE FILED.
  (D) NOTWITHSTANDING THE FOREGOING, IF A LIENOR COMMENCES A FORECLOSURE
ACTION OR AN ACTION TO OBTAIN A JUDGMENT ON THE WAGE  CLAIM  WITHIN  ONE
YEAR  FROM  THE  FILING  OF  THE  NOTICE OF LIEN ON REAL PROPERTY OR THE
RECORDING OF THE FINANCING STATEMENT CREATING LIEN ON PERSONAL PROPERTY,
THE LIEN SHALL BE EXTENDED DURING THE PENDENCY OF THE ACTION AND FOR ONE
HUNDRED TWENTY DAYS FOLLOWING  THE  ENTRY  OF  FINAL  JUDGMENT  IN  SUCH
ACTION,  UNLESS THE ACTION RESULTS IN A FINAL JUDGMENT OR ADMINISTRATIVE
ORDER IN THE LIENOR'S FAVOR ON THE WAGE CLAIMS AND THE LIENOR  COMMENCES
A  FORECLOSURE  ACTION, IN WHICH INSTANCE THE LIEN SHALL BE VALID DURING
THE PENDENCY OF THE FORECLOSURE ACTION. IF A LIEN IS EXTENDED DUE TO THE

A. 628                              9

PENDENCY OF A FORECLOSURE ACTION OR AN ACTION TO OBTAIN  A  JUDGMENT  ON
THE  WAGE  CLAIM,  THE  LIENOR  SHALL FILE A NOTICE OF SUCH PENDENCY AND
EXTENSION WITH THE COUNTY CLERK OF THE COUNTY IN  WHICH  THE  NOTICE  OF
LIEN  IS  FILED,  CONTAINING THE NAMES OF THE PARTIES TO THE ACTION, THE
OBJECT OF THE ACTION, A  BRIEF  DESCRIPTION  OF  THE  PROPERTY  AFFECTED
THEREBY,  AND THE TIME OF FILING THE NOTICE OF LIEN, OR IN THE CASE OF A
LIEN ON PERSONAL PROPERTY SHALL FILE SUCH NOTICE WITH THE OFFICE AUTHOR-
IZED TO ACCEPT FINANCING STATEMENTS PURSUANT TO  SECTION  9-501  OF  THE
UNIFORM  COMMERCIAL  CODE.  FOR  PURPOSES  OF THIS SECTION, AN ACTION TO
OBTAIN JUDGMENT ON A WAGE CLAIM INCLUDES AN ACTION BROUGHT IN ANY  COURT
OF  COMPETENT JURISDICTION, THE SUBMISSION OF A COMPLAINT TO THE DEPART-
MENT OF LABOR OR THE SUBMISSION OF A CLAIM TO ARBITRATION PURSUANT TO AN
ARBITRATION AGREEMENT. AN ACTION ALSO INCLUDES AN INVESTIGATION OF  WAGE
CLAIMS BY THE COMMISSIONER OF LABOR OR THE ATTORNEY GENERAL OF THE STATE
OF NEW YORK, REGARDLESS OF WHETHER SUCH INVESTIGATION WAS INITIATED BY A
COMPLAINT.
  (E) A LIEN, THE DURATION OF WHICH HAS BEEN EXTENDED BY THE FILING OF A
NOTICE  OF  THE PENDENCY OF AN ACTION AS ABOVE PROVIDED, SHALL NEVERTHE-
LESS TERMINATE AS A LIEN AFTER SUCH NOTICE HAS BEEN CANCELED AS PROVIDED
IN SECTION SIXTY-FIVE HUNDRED FOURTEEN OF THE  CIVIL  PRACTICE  LAW  AND
RULES  OR  HAS CEASED TO BE EFFECTIVE AS CONSTRUCTIVE NOTICE AS PROVIDED
IN SECTION SIXTY-FIVE HUNDRED THIRTEEN OF THE  CIVIL  PRACTICE  LAW  AND
RULES.
  §  12. Subdivisions 2 and 4 of section 19 of the lien law, subdivision
2 as amended by chapter 310 of the laws of 1962, subdivision 4 as  added
by  chapter  582 of the laws of 2002 and paragraph a of subdivision 4 as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, are amended to read as follows:
  (2)  By failure to begin an action to foreclose such lien or to secure
an order continuing it, within one year from  the  time  of  filing  the
notice  of lien, unless (I) an action be begun within the same period to
foreclose a mortgage or another mechanic's lien upon the  same  property
or  any  part  thereof  and a notice of pendency of such action is filed
according to law, OR (II) AN ACTION IS COMMENCED TO OBTAIN A JUDGMENT ON
A WAGE CLAIM PURSUANT TO SUBDIVISION TWO OF SECTION  SEVENTEEN  OF  THIS
ARTICLE,  but  a  lien,  the  duration of which has been extended by the
filing of a notice of the pendency of  an  action  as  herein  provided,
shall  nevertheless  terminate  as  a  lien  after  such notice has been
cancelled or has ceased to be effective as constructive notice.
  (4) Either before or after the beginning of an action by the EMPLOYER,
owner or contractor executing a bond or undertaking in an  amount  equal
to  one  hundred ten percent of such lien conditioned for the payment of
any judgment which may be rendered against the property OR EMPLOYER  for
the enforcement of the lien:
  a.  The  execution  of any such bond or undertaking by any fidelity or
surety company authorized by the laws of this state  to  transact  busi-
ness,  shall be sufficient; and where a certificate of qualification has
been issued by  the  superintendent  of  financial  services  under  the
provisions  of  section one thousand one hundred eleven of the insurance
law, and has not been revoked, no justification or notice thereof  shall
be  necessary. Any such company may execute any such bond or undertaking
as surety by the hand of its  officers,  or  attorney,  duly  authorized
thereto  by  resolution  of  its board of directors, a certified copy of
which resolution, under the seal of said company, shall  be  filed  with
each  bond  or  undertaking. Any such bond or undertaking shall be filed
with the clerk of the county in which the notice of lien is filed, and a

A. 628                             10

copy shall be served upon the adverse party. The undertaking  is  effec-
tive  when so served and filed. If a certificate of qualification issued
pursuant to subsections (b), (c) and (d) of  section  one  thousand  one
hundred eleven of the insurance law is not filed with the undertaking, a
party may except, to the sufficiency of a surety and by a written notice
of  exception  served  upon  the  adverse  party  within  ten days after
receipt, a copy of the undertaking. Exceptions deemed by  the  court  to
have  been  taken  unnecessarily,  or  for  vexation or delay, may, upon
notice, be set aside, with costs. Where  no  exception  to  sureties  is
taken  within  ten  days  or  where  exceptions taken are set aside, the
undertaking shall be allowed.
  b. In the case of bonds or undertakings not executed pursuant to para-
graph a of this subdivision, the EMPLOYER,  owner  or  contractor  shall
execute  an  undertaking with two or more sufficient sureties, who shall
be free holders, to the clerk of the county where the premises are situ-
ated. The sureties must together justify in  at  least  double  the  sum
named  in  the  undertaking. A copy of the undertaking, with notice that
the sureties will justify before the court, or a judge or justice there-
of, at the time and place therein mentioned, must  be  served  upon  the
lienor  or  his attorney, not less than five days before such time. Upon
the approval of the undertaking by the court, judge or justice an  order
shall be made by such court, judge or justice discharging such lien.
  c.  If  the  lienor  cannot  be found, or does not appear by attorney,
service under this subsection may be made by  leaving  a  copy  of  such
undertaking  and  notice  at  the  lienor's  place of residence, or if a
corporation at its principal place of business within the state as stat-
ed in the notice of lien, with a person of suitable age  and  discretion
therein,  or  if  the house of his abode or its place of business is not
stated in said notice of lien and is not known, then in such  manner  as
the  court  may direct. The premises, if any, described in the notice of
lien as the lienor's residence or place of business shall be  deemed  to
be  his said residence or its place of business for the purposes of said
service at the time thereof, unless it is shown affirmatively  that  the
person  servicing  the  papers or directing the service had knowledge to
the contrary. Notwithstanding the other provisions of  this  subdivision
relating  to service of notice, in any case where the mailing address of
the lienor is outside the state such service may be made  by  registered
or certified mail, return receipt requested, to such lienor at the mail-
ing address contained in the notice of lien.
  d. Except as otherwise provided in this subdivision, the provisions of
article  twenty-five  of  the  civil  practice  law and rules regulating
undertakings is applicable to  a  bond  or  undertaking  given  for  the
discharge  of a lien on account of private improvements OR OF AN EMPLOY-
EE'S LIEN.
  § 13. Section 24 of the lien law, as amended by  chapter  515  of  the
laws of 1929, is amended to read as follows:
  §  24.  Enforcement  of  [mechanic's]  lien.  (1)  REAL  PROPERTY. The
[mechanics'] liens ON REAL PROPERTY specified in  this  article  may  be
enforced  against the property specified in the notice of lien and which
is subject thereto and against any person liable for the debt upon which
the lien is founded, as prescribed in article three of this chapter.
  (2) PERSONAL PROPERTY. AN EMPLOYEE'S LIEN ON PERSONAL PROPERTY  SPECI-
FIED  IN  THIS  ARTICLE MAY IMMEDIATELY BE ENFORCED AGAINST THE PROPERTY
THROUGH A FORECLOSURE AS PRESCRIBED  IN  ARTICLE  NINE  OF  THE  UNIFORM
COMMERCIAL CODE, OR UPON JUDGMENT OBTAINED BY THE EMPLOYEE, COMMISSIONER
OF  LABOR  OR ATTORNEY GENERAL OF THE STATE OF NEW YORK, MAY BE ENFORCED

A. 628                             11

IN ANY MANNER AVAILABLE TO THE JUDGMENT  CREDITOR  PURSUANT  TO  ARTICLE
NINE OF THE UNIFORM COMMERCIAL CODE OR OTHER APPLICABLE LAWS.
  §  14.  Section  26  of the lien law, as amended by chapter 373 of the
laws of 1977, is amended to read as follows:
  § 26. Subordination of liens after agreement with owner.  In  case  an
owner of real property shall execute to one or more persons, or a corpo-
ration,  as trustee or trustees, a bond and mortgage or a note and mort-
gage affecting such property in whole or in part, or  an  assignment  of
the  moneys due or to become due under a contract for a building loan in
relation to such property, and in case such mortgage, if any,  shall  be
recorded  in  the  office  of the register of the county where such real
property is situated, or if such county has  no  register  then  in  the
office of the clerk of such county, and in case such assignment, if any,
shall  be filed in the office of the clerk of the county where such real
property is situated; and in  case  lienors  having  [mechanics']  liens
against  said  real property, notices of which have been filed up to and
not later than fifteen days after the recording of such mortgage or  the
filing  of  such assignment, and which liens have not been discharged as
in this article provided, shall, to the extent of  at  least  fifty-five
per  centum of the aggregate amount for which such notices of liens have
been so filed, approve such bond and mortgage or such note and mortgage,
if any, and such assignment, if any, by an instrument or instruments  in
writing, duly acknowledged and filed in the office of such county clerk,
then  all  mechanics'  liens  for  labor performed or material furnished
prior to the recording of such mortgage or filing  of  such  assignment,
whether  notices  thereof  have been theretofore or are thereafter filed
and which have not been discharged as in this article provided, shall be
subordinate to the lien of such trust bond and mortgage  or  such  trust
note  and  mortgage to the extent of the aggregate amount of all certif-
icates of interest therein issued by such trustee or trustees, or  their
successors,  for moneys loaned, materials furnished, labor performed and
any other indebtedness incurred after said  trust  mortgage  shall  have
been  recorded, and for expenses in connection with said trust mortgage,
and shall also be subordinate to the lien of the bond  and  mortgage  or
note  and  mortgage,  given  to  secure the amount agreed to be advanced
under such contract for a building loan to  the  extent  of  the  amount
which  shall be advanced by the holder of such bond and mortgage or such
note and mortgage to the trustee or trustees, or their successors, under
such assignment. The provisions of this section shall apply to all bonds
and mortgages and notes and mortgages and all assignments of moneys due,
or to become due under building loan contracts executed by  such  owner,
in like manner, and recorded or filed, from time to time as hereinbefore
provided.  In  case of an assignment to trustees under the provisions of
this section, the trustees and their successors shall be the  agents  of
the assignor to receive and receipt for any and all sums advanced by the
holder  of the building loan bond and mortgage or the building loan note
and mortgage under the building loan contract and  such  assignment.  No
lienor  shall  have  any priority over the bond and mortgage or note and
mortgage given to secure the money agreed to be advanced under a  build-
ing loan contract or over the advances made thereunder, by reason of any
act preceding the making and approval of such assignment.
  §  15.  Section  38  of the lien law, as amended by chapter 859 of the
laws of 1930, is amended to read as follows:
  § 38. Itemized statement may be required of lienor. A lienor  who  has
filed  a  notice of MECHANIC'S lien shall, on demand in writing, deliver
to the owner or contractor making such demand  a  statement  in  writing

A. 628                             12

which  shall  set forth the items of labor and/or material and the value
thereof which make up the amount for which he claims a lien,  and  which
shall  also  set  forth the terms of the contract under which such items
were  furnished.    The statement shall be verified by the lienor or his
agent in the form required for the verification of  notices  in  section
nine  of this [chapter] ARTICLE. If the lienor shall fail to comply with
such a demand within five days after the same shall have  been  made  by
the  owner  or  contractor,  or  if  the lienor delivers an insufficient
statement, the person aggrieved may petition the supreme court  of  this
state  or  any  justice thereof, or the county court of the county where
the premises are situated, or the county judge of  such  county  for  an
order  directing  the  lienor  within  a  time specified in the order to
deliver to the petitioner the statement required by  this  section.  Two
days'  notice  in  writing  of such application shall be served upon the
lienor. Such service shall be made in the manner provided by law for the
personal service of a summons. The court or a justice or  judge  thereof
shall  hear  the  parties  and  upon being satisfied that the lienor has
failed, neglected or refused to comply with  the  requirements  of  this
section  shall  have  an appropriate order directing such compliance. In
case the lienor fails to comply with the order so made within  the  time
specified,  then  upon  five  days'  notice to the lienor, served in the
manner provided by law for the personal service of a summons, the  court
or a justice or judge thereof may make an order cancelling the lien.
  §  16. Section 39 of the lien law, as added by chapter 859 of the laws
of 1930, is amended to read as follows:
  § 39. Lien wilfully exaggerated is void. In any action  or  proceeding
to  enforce  a [mechanic's] lien upon a private or public improvement or
in which the validity of the lien is an issue, if the court  shall  find
that  a lienor has wilfully exaggerated the amount for which he claims a
lien as stated in his notice of lien, his lien shall be declared  to  be
void  and  no recovery shall be had thereon. No such lienor shall have a
right to file any other or further lien for the same claim. A second  or
subsequent  lien  filed  in contravention of this section may be vacated
upon application to the court on two days' notice.
  § 17. Section 40 of the lien law, as amended by  chapter  515  of  the
laws of 1929, is amended to read as follows:
  §  40.  Construction  of  article.  This article is to be construed in
connection with article two of this chapter,  and  provides  proceedings
for  the  enforcement  of  EMPLOYEE'S LIENS ON REAL PROPERTY, AS WELL AS
liens for labor performed and materials furnished in the improvement  of
real property, created by virtue of such article.
  §  18.  Section  41  of the lien law, as amended by chapter 807 of the
laws of 1952, is amended to read as follows:
  § 41. Enforcement of mechanic's OR EMPLOYEE'S lien on real property. A
mechanic's lien OR EMPLOYEE'S LIEN on  real  property  may  be  enforced
against  such  property,  and  against a person liable for the debt upon
which the lien is founded, by an action, by the lienor, his assignee  or
legal  representative,  in the supreme court or in a county court other-
wise having jurisdiction, regardless of the amount of such debt, or in a
court which has jurisdiction in an action founded on a  contract  for  a
sum of money equivalent to the amount of such debt.
  §  19.  Section  43  of the lien law, as amended by chapter 310 of the
laws of 1962, is amended to read as follows:
  § 43. Action in a court  of  record;  consolidation  of  actions.  The
provisions  of the real property actions and proceedings law relating to
actions for the foreclosure of a mortgage upon real  property,  and  the

A. 628                             13

sale  and the distribution of the proceeds thereof apply to actions in a
court of record, to enforce mechanics' liens  AND  EMPLOYEES'  LIENS  on
real  property, except as otherwise provided in this article. If actions
are  brought  by  different  lienors  in a court of record, the court in
which the first action was brought, may, upon its own  motion,  or  upon
the  application of any party in any of such actions, consolidate all of
such actions.
  § 20. Section 46 of the lien law, as amended by  chapter  515  of  the
laws of 1929, is amended to read as follows:
  §  46.  Action  in  a  court  not of record. If an action to enforce a
mechanic's lien OR EMPLOYEE'S LIEN against real property is brought in a
court not of record, it shall be commenced by the personal service  upon
the  owner  of  a summons and complaint verified in the same manner as a
complaint in an action in a court of  record.  The  complaint  must  set
forth  substantially  the facts contained in the notice of lien, and the
substance of the agreement under which the labor was  performed  or  the
materials  were  furnished, OR IF THE LIEN IS BASED UPON A WAGE CLAIM AS
DEFINED IN SECTION TWO OF THIS CHAPTER, THE BASIS FOR SUCH  WAGE  CLAIM.
The  form  and  contents of the summons shall be the same as provided by
law for the commencement of an action upon a contract in such court. The
summons must be returnable not less than twelve  nor  more  than  twenty
days  after  the  date of the summons, or if service is made by publica-
tion, after the day of the last publication of  the  summons.    Service
must be made at least eight days before the return day.
  §  21.  Section  50  of the lien law, as amended by chapter 515 of the
laws of 1929, is amended to read as follows:
  § 50. Execution. Execution may be issued upon a judgment  obtained  in
an  action  to  enforce  a mechanic's lien OR AN EMPLOYEE'S LIEN against
real property in a court not of record, which shall direct  the  officer
to  sell the title and interest of the owner in the premises, upon which
the lien set forth in the complaint existed at the time  of  filing  the
notice of lien.
  §  22.  Section  53  of the lien law, as amended by chapter 515 of the
laws of 1929, is amended to read as follows:
  § 53. Costs and disbursements. If an action is brought  to  enforce  a
mechanic's  lien  OR AN EMPLOYEE'S LIEN against real property in a court
of record, the costs and disbursements shall rest in the  discretion  of
the  court,  and  may  be  awarded to the prevailing party. The judgment
rendered in such an action shall include the amount of  such  costs  and
specify  to whom and by whom the costs are to be paid. If such action is
brought in a court not of record, they shall be the same as  allowed  in
civil  actions  in  such  court.  The  expenses  incurred in serving the
summons by publication may be added to the amount of costs  now  allowed
in such court.
  §  23.  Section  59  of the lien law, as amended by chapter 515 of the
laws of 1929, is amended to read as follows:
  § 59. Vacating of a [mechanic's] lien; cancellation of bond; return of
deposit, by order of court. 1. A mechanic's lien  notice  of  which  has
been filed on real property or a bond given to discharge the same may be
vacated  and cancelled or a deposit made to discharge a lien pursuant to
section twenty OF THIS CHAPTER may be returned, by an order of  a  court
of  record. Before such order shall be granted, a notice shall be served
upon the lienor, either personally or by leaving it as  his  last  known
place  of  residence,  with a person of suitable age, with directions to
deliver it to the lienor.  Such  notice  shall  require  the  lienor  to
commence  an  action to enforce the lien, within a time specified in the

A. 628                             14

notice, not less than thirty days from the  time  of  service,  or  show
cause at a special term of a court of record, or at a county court, in a
county  in which the property is situated, at a time and place specified
therein,  why  the  notice of lien filed or the bond given should not be
vacated and cancelled, or the deposit returned,  as  the  case  may  be.
Proof  of  such service and that the lienor has not commenced the action
to foreclose such lien, as directed in the  notice,  shall  be  made  by
affidavit, at the time of applying for such order.
  2.  AN EMPLOYEE'S LIEN NOTICE OF WHICH HAS BEEN FILED ON REAL PROPERTY
OR A BOND GIVEN TO DISCHARGE THE SAME MAY BE VACATED AND CANCELLED OR  A
DEPOSIT  MADE  TO  DISCHARGE  A  LIEN PURSUANT TO SECTION TWENTY OF THIS
CHAPTER MAY BE RETURNED, BY AN ORDER OF A COURT OF RECORD.  BEFORE  SUCH
ORDER SHALL BE GRANTED, A NOTICE SHALL BE SERVED UPON THE LIENOR, EITHER
PERSONALLY  OR  BY  LEAVING  IT  AT HIS LAST KNOWN PLACE OF RESIDENCE OR
ATTORNEY'S PLACE OF BUSINESS,  WITH  A  PERSON  OF  SUITABLE  AGE,  WITH
DIRECTIONS  TO  DELIVER  IT TO THE LIENOR. SUCH NOTICE SHALL REQUIRE THE
LIENOR TO COMMENCE AN ACTION TO ENFORCE THE  LIEN,  OR  TO  COMMENCE  AN
ACTION  TO  OBTAIN  JUDGMENT  ON  THE WAGE CLAIM UPON WHICH THE LIEN WAS
ESTABLISHED, WITHIN A TIME SPECIFIED IN THE NOTICE, NOT LESS THAN NINETY
DAYS FROM THE TIME OF SERVICE, OR SHOW CAUSE AT  A  SPECIAL  TERM  OF  A
COURT OF RECORD, OR AT A COUNTY COURT, IN A COUNTY IN WHICH THE PROPERTY
IS  SITUATED,  AT  A TIME AND PLACE SPECIFIED THEREIN, WHY THE NOTICE OF
LIEN FILED OR THE BOND GIVEN SHOULD NOT BE VACATED AND CANCELLED, OR THE
DEPOSIT RETURNED, AS THE CASE MAY BE. PROOF OF SUCH SERVICE AND THAT THE
LIENOR HAS NOT COMMENCED THE ACTION TO FORECLOSE SUCH LIEN OR AN  ACTION
TO  OBTAIN  JUDGMENT  ON  THE  WAGE CLAIM UPON WHICH THE LIEN WAS ESTAB-
LISHED, AS DIRECTED IN THE NOTICE, SHALL BE MADE BY  AFFIDAVIT,  AT  THE
TIME OF APPLYING FOR SUCH ORDER.
  §  24.  Section  62  of the lien law, as amended by chapter 697 of the
laws of 1934, is amended to read as follows:
  § 62. Bringing in new parties. A lienor who has filed a notice of lien
after the commencement of an action in a court of record to foreclose or
enforce AN EMPLOYEE'S LIEN OR a mechanic's lien against real property or
a public improvement, may at any  time  up  to  and  including  the  day
preceding  the  day on which the trial of such action is commenced, make
application upon notice to the plaintiff or his attorney in such action,
to be made a party therein. Upon good cause shown, the court must  order
such lienor to be brought in by amendment. If the application is made by
any  other  party  in  said action to make such lienor or other person a
party, the court may in its  discretion  direct  such  lienor  or  other
person  to  be  brought in by like amendment. The order to be entered on
such application shall provide the time for and manner  of  serving  the
pleading of such additional lienor or other person and shall direct that
the  pleadings,  papers  and proceedings of the other several parties in
such action, shall be deemed amended, so as not to require the making or
serving of papers other than said order to  effectuate  such  amendment,
and  shall  further  provide  that the allegations in the answer of such
additional lienor or other person shall, for the purposes of the action,
be deemed denied by the other parties therein. The action  shall  be  so
conducted  by  the  court as not to cause substantially any delay in the
trial thereof.   The bringing in of  such  additional  lienor  or  other
person  shall  be  without  prejudice to the proceedings had, and if the
action be on the calendar of the court, same shall retain its  place  on
such  calendar  without the necessity of serving a new note of issue and
new notices of trial.

A. 628                             15

  § 25. Subdivision 3 of section 199-a of the labor law, as  amended  by
chapter 564 of the laws of 2010, is amended to read as follows:
  3.  Each  employee  and  his or her authorized representative shall be
notified in writing, OF THE TERMINATION OF THE  COMMISSIONER'S  INVESTI-
GATION OF THE EMPLOYEE'S COMPLAINT AND THE RESULT OF SUCH INVESTIGATION,
of  any  award  and collection of back wages and civil penalties, and of
any intent to seek criminal penalties. In the event that criminal penal-
ties are sought the employee and his or  her  authorized  representative
shall be notified of the outcome of prosecution.
  §  26.  Subdivision  2  of section 663 of the labor law, as amended by
chapter 564 of the laws of 2010, is amended to read as follows:
  2. By commissioner. On behalf of any employee paid less than the  wage
to  which the employee is entitled under the provisions of this article,
the commissioner may bring any legal action necessary, including  admin-
istrative  action,  to  collect  such  claim,  and the employer shall be
required to pay the full amount of the  underpayment,  plus  costs,  and
unless the employer proves a good faith basis to believe that its under-
payment  was  in compliance with the law, an additional amount as liqui-
dated damages. Liquidated damages shall be calculated by the commission-
er as  no  more  than  one  hundred  percent  of  the  total  amount  of
underpayments found to be due the employee. In any action brought by the
commissioner  in  a  court of competent jurisdiction, liquidated damages
shall be calculated as an amount equal to one hundred percent of  under-
payments  found  to  be  due  the  employee. EACH EMPLOYEE OR HIS OR HER
AUTHORIZED REPRESENTATIVE SHALL BE NOTIFIED IN WRITING OF THE OUTCOME OF
ANY LEGAL ACTION BROUGHT ON  THE  EMPLOYEE'S  BEHALF  PURSUANT  TO  THIS
SECTION.
  §  27.  Subdivision  5  of  section 6201 of the civil practice law and
rules, as amended by chapter 860 of the laws of 1977 and  as  renumbered
by  chapter  618 of the laws of 1992, is amended and a new subdivision 6
is added to read as follows:
  5. the cause of action is based on a judgment, decree or  order  of  a
court  of  the  United States or of any other court which is entitled to
full faith and credit in this state, or on a  judgment  which  qualifies
for  recognition  under the provisions of article 53[.] OF THIS CHAPTER;
OR
  6. THE CAUSE OF ACTION IS BASED ON WAGE CLAIMS.  "WAGE  CLAIMS,"  WHEN
USED IN THIS CHAPTER, SHALL INCLUDE ANY CLAIMS OF VIOLATIONS OF ARTICLES
FIVE, SIX, AND NINETEEN OF THE LABOR LAW, SECTION TWO HUNDRED FIFTEEN OF
THE LABOR LAW, AND THE RELATED REGULATIONS OR WAGE ORDERS PROMULGATED BY
THE  COMMISSIONER  OF  LABOR, INCLUDING BUT NOT LIMITED TO ANY CLAIMS OF
UNPAID, MINIMUM, OVERTIME, AND SPREAD-OF-HOURS PAY, UNLAWFULLY  RETAINED
GRATUITIES,  UNLAWFUL  DEDUCTIONS FROM WAGES, UNPAID COMMISSIONS, UNPAID
BENEFITS AND WAGE SUPPLEMENTS, AND RETALIATION, AND ANY CLAIMS  PURSUANT
TO 18 U.S.C. § 1595, 29 U.S.C. § 201 ET SEQ., AND/OR EMPLOYMENT CONTRACT
AS  WELL  AS THE CONCOMITANT LIQUIDATED DAMAGES AND PENALTIES AUTHORIZED
PURSUANT TO THE LABOR LAW, THE FAIR LABOR STANDARDS ACT, OR ANY  EMPLOY-
MENT CONTRACT.
  §  28.  Section  6210 of the civil practice law and rules, as added by
chapter 860 of the laws of 1977, is amended to read as follows:
  § 6210. Order of attachment on notice;  temporary  restraining  order;
contents.  Upon a motion on notice for an order of attachment, the court
may, without notice to the  defendant,  grant  a  temporary  restraining
order  prohibiting  the transfer of assets by a garnishee as provided in
subdivision (b) of section 6214. WHEN ATTACHMENT IS SOUGHT  PURSUANT  TO
SUBDIVISION  SIX  OF  SECTION  6201,  AND  IF  THE EMPLOYER CONTESTS THE

A. 628                             16

MOTION, THE COURT SHALL HOLD A HEARING  WITHIN  TEN  DAYS  OF  WHEN  THE
EMPLOYER'S  RESPONSE  TO  PLAINTIFFS'  MOTION FOR ATTACHMENT IS DUE. The
contents of the order of attachment granted  pursuant  to  this  section
shall be as provided in subdivision (a) of section 6211.
  §  29.  Subdivision  (b) of section 6211 of the civil practice law and
rules, as amended by chapter 566 of the laws of 1985, is amended to read
as follows:
  (b) Confirmation of order. Except where  an  order  of  attachment  is
granted  on  the  ground  specified in subdivision one OR SIX of section
6201, an order of attachment granted without notice shall  provide  that
within  a period not to exceed five days after levy, the plaintiff shall
move, on such notice as the court shall direct  to  the  defendant,  the
garnishee, if any, and the sheriff, for an order confirming the order of
attachment.  Where  an  order of attachment without notice is granted on
the ground specified in subdivision one OR  SIX  of  section  6201,  the
court shall direct that the statement required by section 6219 be served
within  five days, that a copy thereof be served upon the plaintiff, and
the plaintiff shall move  within  ten  days  after  levy  for  an  order
confirming  the  order  of attachment. If the plaintiff upon such motion
shall show that the statement has not been served and that the plaintiff
will be unable to satisfy the requirement of subdivision (b) of  section
6223 until the statement has been served, the court may grant one exten-
sion of the time to move for confirmation for a period not to exceed ten
days. If plaintiff fails to make such motion within the required period,
the  order  of  attachment and any levy thereunder shall have no further
effect and shall be vacated upon motion. Upon the motion to confirm, the
provisions of subdivision (b) of section 6223 shall apply. An  order  of
attachment  granted  without notice may provide that the sheriff refrain
from taking any property levied upon into his  actual  custody,  pending
further order of the court.
  §  30. Subdivisions (b) and (e) of rule 6212 of the civil practice law
and rules, subdivision (b) as separately amended by chapters 15 and  860
of  the  laws of 1977 and subdivision (e) as added by chapter 860 of the
laws of 1977, are amended to read as follows:
  (b) Undertaking. [On] 1. EXCEPT WHERE AN ORDER OF ATTACHMENT IS SOUGHT
ON THE GROUND SPECIFIED IN SUBDIVISION SIX OF SECTION 6201, ON a  motion
for  an order of attachment, the plaintiff shall give an undertaking, in
a total amount fixed by the  court,  but  not  less  than  five  hundred
dollars,  a  specified part thereof conditioned that the plaintiff shall
pay to the defendant all costs and damages, including reasonable  attor-
ney's  fees,  which  may be sustained by reason of the attachment if the
defendant recovers judgment or if it is finally decided that the  plain-
tiff  was not entitled to an attachment of the defendant's property, and
the balance conditioned that the plaintiff shall pay to the sheriff  all
of his allowable fees.
  2.  ON  A  MOTION  FOR  AN  ATTACHMENT  PURSUANT TO SUBDIVISION SIX OF
SECTION 6201, THE COURT SHALL ORDER THAT THE PLAINTIFF GIVE AN  ACCESSI-
BLE UNDERTAKING OF NO MORE THAN FIVE HUNDRED DOLLARS, OR IN THE ALTERNA-
TIVE,  MAY WAIVE THE UNDERTAKING ALTOGETHER. The attorney for the plain-
tiff shall not be liable to the sheriff for such fees. The surety on the
undertaking shall not be discharged except upon notice to the sheriff.
  (e) Damages. [The] EXCEPT WHERE AN ORDER OF ATTACHMENT  IS  SOUGHT  ON
THE  GROUND  SPECIFIED IN SUBDIVISION SIX OF SECTION 6201, THE plaintiff
shall be liable to the defendant for all costs  and  damages,  including
reasonable  attorney's  fees,  which  may  be sustained by reason of the
attachment if the defendant recovers  judgment,  or  if  it  is  finally

A. 628                             17

decided  that  the  plaintiff  was  not entitled to an attachment of the
defendant's property. Plaintiff's liability shall not be limited by  the
amount of the undertaking.
  §  31. Section 6223 of the civil practice law and rules, as amended by
chapter 860 of the laws of 1977, is amended to read as follows:
  § 6223. Vacating or modifying attachment.  (a)  Motion  to  vacate  or
modify.    Prior to the application of property or debt to the satisfac-
tion of a judgment, the defendant, the garnishee or any person having an
interest in the property or debt may move, on notice to each  party  and
the sheriff, for an order vacating or modifying the order of attachment.
Upon  the motion, the court may give the plaintiff a reasonable opportu-
nity to correct any defect. [If] EXCEPT AS  PROVIDED  UNDER  SUBDIVISION
(B),  IF,  after  the  defendant  has  appeared in the action, the court
determines that the attachment is unnecessary to  the  security  of  the
plaintiff, it shall vacate the order of attachment.  Such a motion shall
not of itself constitute an appearance in the action.
  (b)  Burden  of  proof.  [Upon] EXCEPT WHERE AN ORDER OF ATTACHMENT IS
GRANTED PURSUANT TO SUBDIVISION SIX OF SECTION 6201, UPON  a  motion  to
vacate  or  modify  an  order of attachment the plaintiff shall have the
burden of establishing the grounds for  the  attachment,  the  need  for
continuing  the  levy  and  the  probability that he will succeed on the
merits. UPON A MOTION TO VACATE OR MODIFY AN ORDER OF ATTACHMENT GRANTED
PURSUANT TO SUBDIVISION SIX OF SECTION 6201, THE  DEFENDANT  SHALL  HAVE
THE  BURDEN  TO  DEMONSTRATE  THAT  THE ATTACHMENT IS UNNECESSARY TO THE
SECURITY OF THE PLAINTIFF, IN ORDER TO VACATE OR MODIFY  THE  ATTACHMENT
ORDER.
  § 32. Paragraph (b) of section 624 of the business corporation law, as
amended  by  chapter  449  of  the  laws  of 1997, is amended to read as
follows:
  (b) Any person who shall have been a shareholder of record of a corpo-
ration, OR WHO IS OR SHALL HAVE BEEN A  LABORER,  SERVANT  OR  EMPLOYEE,
upon  at least five days' written demand shall have the right to examine
in person or by agent or attorney,  during  usual  business  hours,  its
minutes  of the proceedings of its shareholders and record of sharehold-
ers and to make extracts therefrom for any purpose reasonably related to
such person's interest as a shareholder, LABORER, SERVANT  OR  EMPLOYEE.
Holders  of  voting trust certificates representing shares of the corpo-
ration shall be  regarded  as  shareholders  for  the  purpose  of  this
section.    Any  such agent or attorney shall be authorized in a writing
that satisfies the requirements of a  writing  under  paragraph  (b)  of
section  609  (Proxies).  A corporation requested to provide information
pursuant to this paragraph shall  make  available  such  information  in
written  form and in any other format in which such information is main-
tained by the corporation and shall not  be  required  to  provide  such
information  in  any  other  format.  If a request made pursuant to this
paragraph includes a request to furnish information regarding beneficial
owners, the corporation shall make available  such  information  in  its
possession regarding beneficial owners as is provided to the corporation
by  a registered broker or dealer or a bank, association or other entity
that exercises fiduciary powers in connection  with  the  forwarding  of
information  to  such  owners.  The corporation shall not be required to
obtain information about beneficial owners not in its possession.
  § 33. Section 630 of the business corporation law,  paragraph  (a)  as
amended  by  chapter  5 of the laws of 2016, paragraph (c) as amended by
chapter 746 of the laws of 1963, is amended to read as follows:

A. 628                             18

§ 630. Liability of shareholders for wages due to laborers, servants  or
         employees.
  (a) The  ten  largest shareholders, as determined by the fair value of
their beneficial interest as of the beginning of the period during which
the unpaid services referred to in this section are performed, of  every
domestic  corporation  or  of  any  foreign corporation, when the unpaid
services were performed in the state, no shares of which are listed on a
national securities exchange or regularly quoted in an  over-the-counter
market  by one or more members of a national or an affiliated securities
association, shall jointly and severally be personally  liable  for  all
debts,  wages or salaries due and owing to any of its laborers, servants
or employees other than contractors, for services performed by them  for
such corporation. [Before such laborer, servant or employee shall charge
such  shareholder  for such services, he shall give notice in writing to
such shareholder that he intends to hold him liable under this  section.
Such  notice  shall  be  given  within one hundred and eighty days after
termination of such services, except that if, within  such  period,  the
laborer,  servant  or  employee  demands an examination of the record of
shareholders under paragraph (b) of  section  624  (Books  and  records;
right  of inspection, prima facie evidence) of this article, such notice
may be given within sixty days after he has been given  the  opportunity
to examine the record of shareholders. An action to enforce such liabil-
ity  shall  be  commenced  within  ninety  days  after  the return of an
execution unsatisfied against the corporation upon a judgment  recovered
against  it  for  such services.] The provisions of this paragraph shall
not apply to an investment company registered as such under  an  act  of
congress entitled "Investment Company Act of 1940."
  (b) For the purposes of this section, wages or salaries shall mean all
compensation  and  benefits payable by an employer to or for the account
of the employee for personal services rendered by such employee  INCLUD-
ING  ANY CONCOMITANT LIQUIDATED DAMAGES, PENALTIES, INTEREST, ATTORNEY'S
FEES OR COSTS.  These shall specifically include but not be  limited  to
salaries,  overtime,  vacation,  holiday  and  severance  pay;  employer
contributions to or payments of insurance or welfare benefits;  employer
contributions to pension or annuity funds; and any other moneys properly
due or payable for services rendered by such employee.
  (c) A shareholder who has paid more than his pro rata share under this
section shall be entitled to contribution pro rata from the other share-
holders  liable  under  this section with respect to the excess so paid,
over and above his pro rata share, and may sue them jointly or severally
or any number of them to recover the amount due from them.  Such  recov-
ery  may  be  had  in a separate action. As used in this paragraph, "pro
rata" means in proportion to beneficial share interest. Before a  share-
holder  may  claim contribution from other shareholders under this para-
graph, he shall[, unless they have been given notice by a laborer, serv-
ant or employee under paragraph (a),] give them notice in  writing  that
he  intends to hold them so liable to him. Such notice shall be given by
him within twenty days after the date that [notice was given to him  by]
HE BECAME AWARE THAT a laborer, servant or employee MAY SEEK TO HOLD HIM
LIABLE under paragraph (a).
  §  34. Subdivision (c) of section 609 of the limited liability company
law, as added by chapter 537 of the laws of 2014, is amended to read  as
follows:
  (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
section, the ten members with the largest percentage ownership interest,
as  determined as of the beginning of the period during which the unpaid

A. 628                             19

services referred to in this section are  performed,  of  every  limited
liability  company, shall jointly and severally be personally liable for
all debts, wages or salaries due and owing to any of its laborers, serv-
ants  or  employees,  for  services  performed  by them for such limited
liability company. [Before  such  laborer,  servant  or  employee  shall
charge  such  member  for  such services, he or she shall give notice in
writing to such member that he or she intends to hold such member liable
under this section. Such notice shall be given within one hundred eighty
days after termination of such  services.  An  action  to  enforce  such
liability  shall  be commenced within ninety days after the return of an
execution unsatisfied against the limited liability company upon a judg-
ment recovered against it for such services.] A member who has paid more
than his or her pro rata share under this section shall be  entitled  to
contribution  pro  rata from the other members liable under this section
with respect to the excess so paid, over and above his or her  pro  rata
share,  and  may  sue them jointly or severally or any number of them to
recover the amount due from them. Such recovery may be had in a separate
action. As used in this subdivision, "pro rata" means in  proportion  to
percentage  ownership  interest.  Before a member may claim contribution
from other members under this section, he or she shall give them  notice
in writing that he or she intends to hold them so liable to him or her.
  §  35. Section 1102 of the limited liability company law is amended by
adding a new subdivision (e) to read as follows:
  (E) ANY PERSON WHO IS OR SHALL HAVE BEEN A LABORER, SERVANT OR EMPLOY-
EE OF A LIMITED LIABILITY COMPANY, UPON  AT  LEAST  FIVE  DAYS'  WRITTEN
DEMAND  SHALL  HAVE THE RIGHT TO EXAMINE IN PERSON OR BY AGENT OR ATTOR-
NEY, DURING USUAL BUSINESS HOURS, RECORDS DESCRIBED IN PARAGRAPH TWO  OF
SUBDIVISION  (A)  OF  THIS  SECTION THROUGHOUT THE PERIOD OF TIME DURING
WHICH SUCH LABORER, SERVANT OR EMPLOYEE PROVIDED SERVICES TO SUCH COMPA-
NY. A COMPANY REQUESTED TO PROVIDE INFORMATION PURSUANT  TO  THIS  PARA-
GRAPH SHALL MAKE AVAILABLE SUCH RECORDS IN WRITTEN FORM AND IN ANY OTHER
FORMAT  IN WHICH SUCH INFORMATION IS MAINTAINED BY THE COMPANY AND SHALL
NOT BE REQUIRED TO PROVIDE SUCH INFORMATION IN ANY OTHER FORMAT.    UPON
REFUSAL  BY  THE  COMPANY  OR  BY  AN OFFICER OR AGENT OF THE COMPANY TO
PERMIT AN INSPECTION OF THE RECORDS DESCRIBED  IN  THIS  PARAGRAPH,  THE
PERSON  MAKING  THE DEMAND FOR INSPECTION MAY APPLY TO THE SUPREME COURT
IN THE JUDICIAL DISTRICT WHERE THE OFFICE OF  THE  COMPANY  IS  LOCATED,
UPON  SUCH  NOTICE  AS  THE COURT MAY DIRECT, FOR AN ORDER DIRECTING THE
COMPANY, ITS MEMBERS OR MANAGERS TO SHOW CAUSE WHY AN ORDER  SHOULD  NOT
BE GRANTED PERMITTING SUCH INSPECTION BY THE APPLICANT.  UPON THE RETURN
DAY OF THE ORDER TO SHOW CAUSE, THE COURT SHALL HEAR THE PARTIES SUMMAR-
ILY,  BY AFFIDAVIT OR OTHERWISE, AND IF IT APPEARS THAT THE APPLICANT IS
QUALIFIED AND ENTITLED TO SUCH INSPECTION,  THE  COURT  SHALL  GRANT  AN
ORDER  COMPELLING SUCH INSPECTION AND AWARDING SUCH FURTHER RELIEF AS TO
THE COURT MAY SEEM JUST AND PROPER. IF THE  APPLICANT  IS  FOUND  TO  BE
QUALIFIED  AND  ENTITLED  TO  SUCH INSPECTION, THE COMPANY SHALL PAY ALL
REASONABLE ATTORNEY'S FEES AND COSTS OF SAID APPLICANT  RELATED  TO  THE
DEMAND FOR INSPECTION OF THE RECORDS.
  §  36.  This act shall take effect on the thirtieth day after it shall
have become a law. The procedures and rights created in this act may  be
used  by  employees,  laborers or servants in connection with claims for
liabilities that arose prior to the effective date.