The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    766
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M. of A. L. ROSENTHAL, AUBRY, GOTTFRIED, TAYLOR, SAYEGH,
   SIMON, COLTON, REYES -- read once and referred  to  the  Committee  on
   Judiciary
 
 AN  ACT  to  amend the lien law, in relation to employee liens; to amend
   the labor law, in relation to employee complaints; to amend the  civil
   practice  law  and  rules,  in  relation to grounds for attachment; to
   amend the business corporation law, in relation to streamlining proce-
   dures where employees may hold  shareholders  of  non-publicly  traded
   corporations personally liable for wage theft; and to amend the limit-
   ed  liability company law, in relation to creating a right for victims
   of wage theft to hold the  ten  members  with  the  largest  ownership
   interests in a company personally liable for wage theft
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2 of the lien law is amended by  adding  three  new
 subdivisions 21, 22 and 23 to read as follows:
   21.  EMPLOYEE.  THE  TERM "EMPLOYEE", WHEN USED IN THIS CHAPTER, SHALL
 HAVE THE SAME MEANING AS "EMPLOYEE" PURSUANT TO ARTICLES ONE, SIX, NINE-
 TEEN AND NINETEEN-A OF THE LABOR LAW, AS APPLICABLE, OR THE  FAIR  LABOR
 STANDARDS ACT, 29 U.S.C. § 201 ET. SEQ., AS APPLICABLE.
   22.  EMPLOYER.  THE  TERM "EMPLOYER", WHEN USED IN THIS CHAPTER, SHALL
 HAVE THE SAME MEANING AS "EMPLOYER" PURSUANT TO ARTICLES ONE, SIX, NINE-
 TEEN AND NINETEEN-A OF THE LABOR LAW, AS APPLICABLE, OR THE  FAIR  LABOR
 STANDARDS  ACT, 29 U.S.C. § 201 ET. SEQ., AS APPLICABLE, EXCEPT THAT THE
 TERM "EMPLOYER" SHALL NOT INCLUDE A GOVERNMENTAL AGENCY.
   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
 RELATED  REGULATIONS  AND WAGE ORDERS PROMULGATED BY THE COMMISSIONER, A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00839-01-1

 A. 766                              2
 
 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
 prior to such filing,  the  lien  shall  extend  to  the  interest  thus

 A. 766                              3
 
 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.
   § 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:

 A. 766                              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

 A. 766                              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:

 A. 766                              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

 A. 766                              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

 A. 766                              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 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
 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

 A. 766                              9

 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
 which resolution, under the seal of said company, shall  be  filed  with
 each  bond  or  undertaking. Any such bond or undertaking shall be filed

 A. 766                             10
 
 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
 THROUGH  A  FORECLOSURE  AS  PRESCRIBED  IN  ARTICLE NINE OF THE UNIFORM
 COMMERCIAL CODE, OR UPON JUDGMENT OBTAINED BY THE EMPLOYEE, COMMISSIONER

 A. 766                             11

 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:
   § 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

 A. 766                             12
 
 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:
   §  40.  Construction  of  article.  This article is to be construed in
 connection with article two of this chapter,  and  provides  proceedings

 A. 766                             13
 
 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
 of  record,  the costs and disbursements shall rest in the discretion of
 the court, and may be awarded to  the  prevailing  party.  The  judgment

 A. 766                             14
 
 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,
 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

 A. 766                             15
 
 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
   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

 A. 766                             16
 
 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
 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

 A. 766                             17
 
 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:
 § 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

 A. 766                             18
 
 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  amended by chapter 620 of the laws of 2019, 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 domestic
 limited liability company, or of any foreign limited liability  company,
 when  the unpaid services were performed in the state, shall jointly and
 severally be personally liable for all debts, wages or salaries due  and

 A. 766                             19
 
 owing  to  any  of  its  laborers,  servants  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 judgment 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  subdivi-
 sion,  "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.