Section 345-A. Liability of manufacturers and contractors

1. A manufacturer
  or contractor who contracts or subcontracts with another manufacturer or
  contractor  for  the  performance of any apparel industry service within
  the meaning of subdivision (c) of section three hundred  forty  of  this
  article  and  who  knew  or  should  have  known  with  the  exercise of
  reasonable  care  or  diligence  of   such   other   manufacturer's   or
  contractor's  failure  to  comply  with  article six or nineteen of this
  chapter in the performance of such service  shall  be  liable  for  such
  failure.
    2.  For  the purposes of this section, the exercise of reasonable care
  or diligence by a manufacturer or contractor shall be presumed if, prior
  to  the  execution  of  such  contract  or  subcontract,  and   annually
  thereafter, such manufacturer or contractor receives from the department
  written  assurance of compliance with section three hundred forty-one of
  this article. The department may charge a reasonable fee  for  providing
  such assurance to a manufacturer or contractor.