(b) Notwithstanding any other provision of law, general or special or local, for capacity and infrastructure improvements to county, town, city or village roads, highways, parkways and bridges, the municipality with jurisdiction over the project shall enter into an agreement with the department of transportation for the conveyance of all affected real property including highways, roads, parkways and bridges to the thruway authority, for the term of the bonds or notes issued by the thruway authority, or its successor agency, for such project or for such lesser period that such bonds or notes are outstanding. During the period of such conveyance to the thruway authority, the department of transportation or the municipality shall agree to maintain the facility in a state of good repair, the responsibility for which shall be with the state, or municipality, which had jurisdiction over said facility prior to such agreement. 9. The attorney general shall pass upon the form and sufficiency and manner of execution of any lease, mortgage or deed of conveyance executed by the commissioner of transportation pursuant to the provisions of subdivision eight of this section. 10. As used in this section "reconditioning and preservation" shall mean resurfacing of existing pavements to correct structural deficiencies or substandard riding characteristics; the sealing of pavements; the treatment of highway pavements to improve skid resistance; modification of roadway geometrics for improvement of operational safety; the improvement of highway appurtenances including but not limited to shoulders, guiderail systems, slopes, traffic control devices, sidewalks, curbs, drainage systems; retaining and sustaining walls; removal of hazards and/or their replacement or correction by the use of recognized and approved safety or protective devices; bridge painting and improvement including structural rehabilitation or replacement. 11. As used in this section "traffic operations program" shall mean the program authorized by subdivision thirty-four of section ten of the highway law. 12. Subject to the approval of the director of the budget, the commissioner is authorized to pledge and assign to the New York state thruway authority federal moneys to be paid to the state as reimbursement for the federal share of expenditures. 13. (a) The state shall defend any unit, entity, officer or employee of the New York state thruway authority using the forces of the department of law in any action, proceeding, claim, demand or the prosecution of any appeal arising from or occasioned by the acts or omissions to act in the performance of the functions of the department pursuant to a shared services agreement.

(b) Defense pursuant to paragraph (a) of this subdivision shall be conditioned upon the full cooperation of the New York state thruway authority.

(c) The state shall indemnify and hold harmless any unit, entity, officer or employee of the New York state thruway authority in the amount of any judgment obtained against the New York state thruway authority or in the amount of any settlement the New York state thruway authority enters into with the consent of the state for any and all claims, damages or liabilities arising from or occasioned by the acts or omissions to act of the department pursuant to a shared services agreement, provided, however, that the act or omission from which such judgment or settlement arose occurred while the department was acting within the scope of its functions pursuant to a shared services agreement. Any such settlement shall be executed pursuant to section twenty-a of the court of claims act.

(d) Any claim or proceeding commenced against any unit, entity, officer or employee of the department pursuant to any shared services agreement shall not be construed in any way to impair, alter, limit, modify, abrogate or restrict any immunity available to or conferred upon any unit, entity, officer or employee of the department, or to impair, alter, limit, modify, abrogate or restrict any right to defense and indemnification provided for any governmental officer or employee by, in accordance with, or by reason of, any other provision of state or federal statutory or common law.

(e) This subdivision shall not in any way affect the obligation of any claimant to give notice to the state under sections ten and eleven of the court of claims act or any other provision of law provided, however, that notice served upon the state or the authority shall be valid notice on both parties to the agreement, when such claim arises out of such agreement. The state and authority shall notify each other when they receive a notice of claim, notice of intention to make a claim or a claim arising out of such agreement.

(f) The provisions of this subdivision shall not be construed to impair, alter, limit or modify the rights and obligations of any insurer under any insurance agreement.

(g) Notwithstanding any other provision of law, employees of the thruway authority, its subsidiaries and the department shall be deemed employees of all such entities and the state for purposes of the workers' compensation law.

(h) Any payment made pursuant to this subdivision or any monies paid for a claim against or settlement with the department or the New York state thruway authority pursuant to this section and pursuant to a shared services agreement shall be paid from appropriations for payment by the state pursuant to the court of claims act.