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