N.Y. Gen. Mun. Law § 120-z

§ 120-z. Sewer hook-ups by private contractors. Whenever a contractor\nretained or hired to connect or hook-up a private property with a sewer\nsystem in a city, town or village, requires that all or a portion of the\ncost of such connection for hook-up be paid in advance of completion of\nthe same, the amount of such payment shall be held by such contractor in\nan escrow account until completion of such work, if the city, town or\nvillage in which the work is to be done so requires. Such city, town or\nvillage may by local law or ordinance regulate such escrow payments and\nthe enforcement thereof.\n