§ 56-0509. Liability limitation.

1. (a) Notwithstanding any other provision of law and except as
provided in subdivision two of this section and in paragraph (h) of
subdivision two of section 56-0503 of this title, the following shall
not be liable to the state upon any statutory or common law cause of
action, or to any person upon any statutory cause of action arising out
of the presence of any contamination in or on property at any time
before the effective date of a contract entered into pursuant to this
title or written agreement pursuant to subdivision three of section
56-0503 of this title:

(i) a municipality receiving state assistance under this title to
undertake, or under written agreement pursuant to subdivision three of
section 56-0503 of this title for the state to undertake an
environmental restoration project and complying with the terms and
conditions of the contract or written agreement pursuant to subdivision
three of section 56-0503 of this title providing such assistance; and

(ii) a successor in title to the real property subject to an
environmental restoration project; any lessee of such property; and any
person that provides financing to such party relative to the
remediation, restoration, or redevelopment of such property; provided
that such successor in title, lessee, or lender did not generate,
arrange for, transport, or dispose, and did not cause the generation,
arrangement for, transportation, or disposal of any contamination
located at such property, and did not own such property.

(b) Notwithstanding any other provision of this title, any person
seeking the benefit of this subdivision shall bear the burden of proving
that a cause of action, or any part thereof, is attributable solely to
contamination present in or on such parcel before the effective date of
such contract.

2. Subdivisions one and three of this section shall not apply to
relieve any municipality, successor in title, lessee, or lender from
liability arising from:

(a) failing to implement such project to the department's satisfaction
or failing to comply with the terms and conditions of the contract;

(b) fraudulently demonstrating that the cleanup levels identified in
or to be identified in accordance with such project were reached;

(c) causing the release or threat of release at the property subject
to such project of any contamination after the effective date of such
contract; or

(d) changing such property's use from the intended use as identified
in the contract pursuant to section 56-0503 of this title to a use
requiring a lower level of residual contamination unless the additional
remedial activities are undertaken which shall meet the same standard
for protection of public health and the environment that applies to
remedial actions undertaken pursuant to 27-1313 of this chapter so that
such use can be implemented with sufficient protection of public health
and the environment.

3. The state shall indemnify and save harmless any municipality,
successor in title, lessee, or lender identified in paragraph (a) of
subdivision one of this section in the amount of any judgment or
settlement, obtained against such municipality, successor in title,
lessee, or lender in any court for any common law cause of action
arising out of the presence of any contamination in or on property at
anytime before the effective date of a contract entered into pursuant to
this title. Such municipality, successor in title, lessee, or lender
shall be entitled to representation by the attorney general, unless the
attorney general determines, or a court of competent jurisdiction
determines, that such representation would constitute a conflict of
interest, in which case the attorney general shall certify to the
comptroller that such party is entitled to private counsel of its
choice, and reasonable attorneys' fees and expenses shall be reimbursed
by the state. Any settlement of such an action shall be subject to the
approval of the attorney general as to form and amount, and this
subdivision shall not apply to any settlement of any such action which
has not received such approval.

4. A municipality receiving state assistance and any successor in
title shall implement a department-approved environmental sampling
program and, in the event that conditions on such property are not
sufficiently protective of human health for its current use due to
environmental conditions related to the property subject to such project
that were unknown to the department as of the effective date of such
contract or due to information received in whole or in part after the
department's approval of such project's final engineering report and
certification, take such emergency measures that are necessary to
maintain sufficient protection of human health for such property's
current use until such conditions are addressed; and the department
shall take such measures as it may determine are necessary to return
such property to a condition sufficiently protective of human health
using monies from the environmental restoration project account of the
hazardous waste remedial fund established under section ninety-seven-b
of the state finance law.

5. In addition to any other powers the department may have, including,
but not limited to, the powers set forth in section 56-0515 of this
title, the department shall have the authority to periodically inspect
property to ensure that the use of the property complies with the terms
and conditions of the contract and any engineering and/or institutional
controls placed on the property.