The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    46
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M.  of  A.  L. ROSENTHAL,  AUBRY, TAYLOR, SIMON, SAYEGH,
   DINOWITZ, REYES, COLTON,  MAMDANI,  GONZALEZ-ROJAS,  RAMOS,  MITAYNES,
   FORREST,  OTIS,  EPSTEIN, GLICK, FALL -- 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  SECTION  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.

                                                            LBD00720-01-3
 A. 46                               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 OR HER
 agent, contractor or subcontractor, and any trust fund to which benefits
 and wage supplements are due or payable for the benefit of  such  labor-
 ers,  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 OR HER interest in  such  real
 property  by  a  general assignment for the benefit of creditors, within
 A. 46                               3
 
 thirty days prior to such filing, the lien shall extend to the  interest
 thus  assigned.  If any part of the real property subjected to such lien
 be removed by the owner or by any other person, at any time  before  the
 discharge  thereof,  such  removal  shall  not  affect the rights of the
 lienor, either in respect to the remaining real property, or the part so
 removed. If labor  is  performed  for,  or  materials  furnished  to,  a
 contractor  or  subcontractor  for  an  improvement, the MECHANIC'S lien
 shall not be for a sum greater than the sum earned  and  unpaid  on  the
 contract  at  the  time of filing the notice of lien, and any sum subse-
 quently earned thereon. In no case shall the owner be liable to  pay  by
 reason  of  all  MECHANIC'S liens created pursuant to this article a sum
 greater than the value or  agreed  price  of  the  labor  and  materials
 remaining unpaid, at the time of filing notices of such liens, except as
 hereinafter provided.
   (2)  [Such]  A  MECHANIC'S  OR EMPLOYEE'S lien shall not extend to the
 owner's right, title or interest  in  real  property  and  improvements,
 existing  at  the  time of filing the notice of lien if such lien arises
 from the failure of a lessee of the right to explore, develop or produce
 natural gas or oil, to pay for, compensate or render value for  improve-
 ments  made  with  the  consent  or  at  the request of such lessee by a
 contractor, subcontractor, materialman,  equipment  operator  or  owner,
 landscaper,  nurseryman,  or person or corporation who performs labor or
 furnishes materials for the exploration, development, or  production  of
 oil  or  natural  gas  or  otherwise improves such leased property. Such
 MECHANIC'S OR EMPLOYEE'S lien shall extend to the improvements made  for
 the  exploration, development and production of oil and natural gas, and
 the working interest held by a lessee of the right to  explore,  develop
 or produce oil and natural gas.
   §  4. The opening paragraph of section 4-a of the lien law, as amended
 by chapter 696 of the laws of 1959, is amended to read as follows:
   The proceeds of any insurance which by the terms  of  the  policy  are
 payable to the owner of real property improved, and actually received or
 to  be  received by him because of the destruction or removal by fire or
 other casualty of an improvement on which lienors have  performed  labor
 or services or for which they have furnished materials, OR UPON WHICH AN
 EMPLOYEE  HAS  ESTABLISHED AN EMPLOYEE'S LIEN, shall after the owner has
 been reimbursed therefrom for premiums paid by him,  if  any,  for  such
 insurance,  be  subject to liens provided by this act to the same extent
 and in the same order of priority as the real property would  have  been
 had such improvement not been so destroyed or removed.
   §  5. Subdivisions 1, 2 and 5 of section 9 of the lien law, as amended
 by chapter 515 of the laws of 1929, are amended to read as follows:
   1. The name OF THE LIENOR, and EITHER THE residence of the  lienor  OR
 THE  NAME  AND BUSINESS ADDRESS OF THE LIENOR'S ATTORNEY, IF ANY; and if
 the lienor is a partnership or a corporation, the  business  address  of
 such  firm, or corporation, the names of partners and principal place of
 business, and if a foreign corporation, its principal place of  business
 within the state.
   2. The name of the owner of the [real] property against whose interest
 therein a lien is claimed, and the interest of the owner as far as known
 to the lienor.
   5. The amount unpaid to the lienor for such labor or materials, OR THE
 AMOUNT  OF THE WAGE CLAIM IF A WAGE CLAIM IS THE BASIS FOR ESTABLISHMENT
 OF THE LIEN, THE ITEMS OF THE WAGE CLAIM AND  THE  VALUE  THEREOF  WHICH
 MAKE UP THE AMOUNT FOR WHICH THE LIENOR CLAIMS A LIEN.
 A. 46                               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 OR HER 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  OR  SHE  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.
 A. 46                               5
 
   § 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
 shall  serve  a copy of such notice upon the owner, if a natural person,
 (a) by delivering the same to him OR HER personally,  or  if  the  owner
 cannot  be  found, to his OR HER agent or attorney, or (b) by leaving it
 at his OR HER 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 OR HER 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 OR SHE 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 corpo-
 ration, 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  managing
 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.  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 claiming 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  OR
 HER  PERSONALLY, OR IF THE EMPLOYER CANNOT BE FOUND, TO HIS OR HER AGENT
 OR ATTORNEY, OR (B) BY LEAVING IT AS HIS OR  HER  LAST  KNOWN  PLACE  OF
 RESIDENCE  OR BUSINESS, WITH A PERSON OF SUITABLE AGE AND DISCRETION, OR
 (C) BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO HIS OR HER  LAST  KNOWN
 PLACE  OF RESIDENCE OR BUSINESS, OR (D) IF SUCH EMPLOYER OWNS REAL PROP-
 ERTY, 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 AFTER-
 NOON. THE LIENOR ALSO SHALL, WITHIN THIRTY DAYS AFTER FILING THE  NOTICE
 OF EMPLOYEE'S LIEN, AFFIX A COPY THEREOF CONSPICUOUSLY ON THE REAL PROP-
 ERTY  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 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,
 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,
 A. 46                               6
 
 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:
   § 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  OR SHE was
 employed or to whom he OR SHE furnished materials or if the lienor is  a
 contractor or subcontractor to the person, firm or corporation with whom
 the contract was made. A lienor having a direct contractual relationship
 with  a  subcontractor  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
 OR HER 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 OR HER 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
 A. 46                               7
 
 shall  have  priority  upon  the particular part of the real property or
 upon the particular building or premises  where  his  OR  HER  labor  is
 performed or his OR HER materials are used. Persons shall have no prior-
 ity  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 labor-
 ers 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
 A. 46                               8
 
 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
 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
 A. 46                               9
 
 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
 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 IN
 THIS SECTION, 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
 A. 46                              10
 
 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
 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 OR HER 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 OR HER 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  OR  HER  said  residence  or  its place of business for the
 purposes of said service at the time thereof, unless it is shown  affir-
 matively  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 mailing 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
 A. 46                              11
 
 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.
   § 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-
 A. 46                              12
 
 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 OR SHE 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 OR HER 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 compli-
 ance. 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 OR SHE claims a lien as stated in  his  OR  HER  notice  of
 lien, [his] SUCH 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
 A. 46                              13
 
 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
 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 OR HER
 assignee or legal representative, in the supreme court or  in  a  county
 court  otherwise  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
 A. 46                              14
 
 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
 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 OR  HER  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 OR HER 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:
 A. 46                              15
 
   § 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 OR HER 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.
   §  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:
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   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.
   § 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 OR HER actual custody,
 pending further order of the court.
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   § 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
 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 OR HER 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
 A. 46                              18
 
 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
 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 OR  HER  pro  rata  share
 under  this  section shall be entitled to contribution pro rata from the
 other shareholders 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 paragraph, "pro rata"  means  in  proportion  to  beneficial  share
 interest.  Before a shareholder may claim contribution from other share-
 holders under this paragraph, he OR SHE shall[, unless  they  have  been
 given  notice  by  a  laborer, servant or employee under paragraph (a),]
 give them notice in writing that he OR  SHE  intends  to  hold  them  so
 liable  to  him  OR HER. Such notice shall be given by him OR HER within
 twenty days after the date that [notice was given to him by] HE  OR  SHE
 BECAME AWARE THAT a laborer, servant or employee MAY SEEK TO HOLD HIM OR
 HER LIABLE under paragraph (a).
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   §  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
 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 SUBDIVI-
 SION 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  SUBDIVISION,  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.
 A. 46                              20
 
   §  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.