S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2844
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00946-01-9
              

 S. 2844                             2
 
 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
 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

 S. 2844                             3
 
 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.
   § 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:

 S. 2844                             4
 
   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:
   § 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

 S. 2844                             5
 
 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.
   § 8. Section 11-b of the lien law, as amended by chapter  147  of  the
 laws of 1996, is amended to read as follows:

 S. 2844                             6
 
   §  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
 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

 S. 2844                             7
 
 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.
   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

 S. 2844                             8
 
 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
 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

 S. 2844                             9

 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
 copy shall be served upon the adverse party. The undertaking  is  effec-
 tive  when so served and filed. If a certificate of qualification issued

 S. 2844                            10

 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
 IN ANY MANNER AVAILABLE TO THE JUDGMENT  CREDITOR  PURSUANT  TO  ARTICLE
 NINE OF THE UNIFORM COMMERCIAL CODE OR OTHER APPLICABLE LAWS.

 S. 2844                            11
 
   §  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
 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

 S. 2844                            12
 
 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
 sale  and the distribution of the proceeds thereof apply to actions in a
 court of record, to enforce mechanics' liens  AND  EMPLOYEES'  LIENS  on

 S. 2844                            13
 
 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
 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

 S. 2844                            14
 
 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.
   § 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:

 S. 2844                            15
 
   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
 MOTION,  THE  COURT  SHALL  HOLD  A  HEARING WITHIN TEN DAYS OF WHEN THE
 EMPLOYER'S RESPONSE TO PLAINTIFFS' MOTION FOR  ATTACHMENT  IS  DUE.  The

 S. 2844                            16
 
 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
 decided  that  the  plaintiff  was  not entitled to an attachment of the

 S. 2844                            17
 
 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:
 § 630. Liability of shareholders for wages due to laborers, servants  or
          employees.

 S. 2844                            18
 
   (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
 services  referred  to  in  this section are performed, of every limited
 liability company, shall jointly and severally be personally liable  for

 S. 2844                            19
 
 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2844--A
     Cal. No. 492
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced by Sens. RAMOS, BAILEY, BIAGGI, GIANARIS, GOUNARDES, JACKSON,
   KRUEGER,  RIVERA, SALAZAR, SANDERS, STAVISKY -- read twice and ordered
   printed, and when printed to be committed to the Committee on  Judici-
   ary  --  reported  favorably from said committee, ordered to first and
   second report,  ordered  to  a  third  reading,  amended  and  ordered
   reprinted, retaining its place in the order of third reading
 
 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-THREE, ONE HUNDRED NINETY-SIX-D, SIX
 HUNDRED  FIFTY-TWO  OR SIX HUNDRED SEVENTY-THREE OF THE LABOR LAW OR THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00946-04-9

 S. 2844--A                          2
 
 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 THAT EMPLOYEE'S 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  EMPLOY-
 EE'S LIEN BASED ON A WAGE CLAIM MAY BE HAD AGAINST THE EMPLOYER'S INTER-
 EST  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 ATTORNEY 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
 by a general assignment for the benefit of creditors, within thirty days

 S. 2844--A                          3

 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.

 S. 2844--A                          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:

 S. 2844--A                          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.

 S. 2844--A                          6
 
   §  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

 S. 2844--A                          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.

 S. 2844--A                          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 AUTO-
 MATICALLY 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.
   (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  AUTOMATICALLY  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, PROVIDED, THAT THE LIEN WILL BE

 S. 2844--A                          9
 
 AUTOMATICALLY EXTINGUISHED IF, AFTER A DISMISSAL WITH PREJUDICE  OF  THE
 WAGE  CLAIMS  ON WHICH IT IS BASED, THE LIENOR FAILS TO FILE A NOTICE OF
 APPEAL WITHIN THE PRESCRIBED PERIOD TO FILE A NOTICE OF APPEAL.    IF  A
 LIEN  IS  EXTENDED  DUE  TO  THE  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 COUN-
 TY  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 AUTHORIZED TO ACCEPT FINANCING STATEMENTS PURSU-
 ANT 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 DEPARTMENT 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

 S. 2844--A                         10
 
 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
 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

 S. 2844--A                         11
 
 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
 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:

 S. 2844--A                         12
 
   §  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
 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 AN
 EMPLOYEE'S LIEN, 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 39-a of the lien law, as added by  chapter  859  of  the
 laws of 1930, is amended to read as follows:
   §  39-a.  Liability  of  lienor  where  lien has been declared void on
 account of wilful exaggeration. Where in any  action  or  proceeding  to
 enforce  a  mechanic's  lien  upon a private or public improvement OR AN
 EMPLOYEE'S LIEN the court shall have declared said lien to  be  void  on
 account  of  wilful  exaggeration  the person filing such notice of lien
 shall be liable in damages to the owner or contractor. The damages which
 said owner or contractor shall be entitled to recover, shall include the
 amount of any premium for a bond given to obtain the  discharge  of  the
 lien or the interest on any money deposited for the purpose of discharg-
 ing  the  lien,  reasonable attorney's fees for services in securing the
 discharge of the lien, and, IN AN ACTION  OR  PROCEEDING  TO  ENFORCE  A
 MECHANIC'S  LIEN,  an amount equal to the difference by which the amount
 claimed to be due or to become due as  stated  in  the  notice  of  lien
 exceeded the amount actually due or to become due thereon.
   §  18.  Section  40  of the lien law, as amended by chapter 515 of the
 laws of 1929, is amended to read as follows:

 S. 2844--A                         13
 
   § 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.
   §  19.  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.
   §  20.  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
 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.
   §  21.  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.
   § 22. 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.
   § 23. 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

 S. 2844--A                         14
 
 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.
   §  24.  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
 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 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 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.
   § 25. 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,

 S. 2844--A                         15
 
 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.
   §  26.  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.
   § 27. 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.
   § 28. 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

 S. 2844--A                         16
 
   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.
   §  29.  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
 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.
   §  30.  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.
   §  31. 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

 S. 2844--A                         17
 
 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
 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.
   § 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,
 PROVIDED THE PURPOSE REASONABLY RELATED TO  A  PERSON'S  INTEREST  AS  A
 LABORER,  SERVANT  OR  EMPLOYEE SHALL BE TO OBTAIN THE NAMES, ADDRESSES,
 AND VALUE OF SHAREHOLDERS' INTERESTS  IN  THE  CORPORATION.  Holders  of
 voting  trust  certificates representing shares of the corporation 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 para-
 graph shall make available such information in written form and  in  any
 other  format in which such information is maintained 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 bene-
 ficial owners as is provided to the corporation by a  registered  broker
 or  dealer or a bank, association or other entity that exercises fiduci-
 ary 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:

 S. 2844--A                         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

 S. 2844--A                         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.