§ 223. Expenses of elimination; approval and payment; costs of
railroad improvements. The expense of every highway-railroad grade
crossing elimination project constructed pursuant to the provisions of
this article, including incidental improvements connected therewith, as
determined by the commissioner to be necessary or desirable because of
the elimination and reasonably included in the plans for such
elimination and railroad improvements not an essential part of the
elimination but desired by the railroad company, shall be paid in the
first instance out of the state treasury to the persons and corporations
entitled thereto from time to time on accountings and vouchers, approved
by the commissioner, upon audit and warrant of the comptroller. Such
expense shall be deemed to include any reasonable and necessary
expenditures by a railroad company, state department, agency or
commission, public authority or municipality and found by the
commissioner to have been made in contemplation of the commencement of
construction of an elimination project under the provisions of grade
crossing elimination acts in effect on the date of enactment of this
article. Where a railroad company, state department, agency or
commission, public authority or municipality has been authorized to
incur and has incurred any expense in connection with a highway-railroad
grade crossing elimination, it shall file a statement thereof with the
commissioner. The commissioner shall determine if such expenses are
reasonable and necessary for the elimination or for incidental
improvements made necessary or desirable thereby and, to the extent so
determined, they shall be paid by the state to the party or parties
entitled thereto and included in the cost of the project.

There shall also be included in the cost of the project all expenses
incurred by the commissioner in determining the cost of railroad
improvements not an essential part of an elimination and in determining
the amount of the net benefits to a railroad company from the
elimination. Such expenses of the commissioner shall be paid out of the
state treasury to the persons entitled thereto from time to time in
accordance with a schedule approved by the director of the budget and on
accountings and vouchers, approved by the commissioner, upon audit and
warrant of the comptroller, and any moneys available for the payment of
the cost of the elimination in connection with which such expenses are
incurred shall be available for the payment of such expenses.

Upon the completion and acceptance of the work of the elimination the
commissioner shall hold a public hearing upon due notice to the railroad
company affected by the project and all other interested parties and
thereupon shall determine (1) the cost of such elimination including
incidental improvements connected therewith; (2) the cost of such
elimination exclusive of such incidental improvements; (3) the cost of
the railroad improvements not an essential part of the elimination; (4)
the amount of the net benefit to the railroad company from the
elimination exclusive of such railroad improvements; and (5) if two or
more railroad companies be affected, the proportionate share of such net
benefit to be borne by each.

The liability of any railroad company to the state for the cost of
railroad improvements not an essential part of the elimination and for
the amount of the net benefit to such company from the elimination may
be compromised and settled by an agreement in writing with such company,
entered into, on behalf of the state, by the commissioner with the
written approval of the comptroller and the attorney-general. Such an
agreement shall have the same effect as a determination by the
commissioner hereinbefore provided for.

The comptroller may require the accounts of the railroad companies,
state departments, agencies or commissions, public authorities or
municipalities having to do with expenditures made on account of
highway-railroad grade crossing elimination projects be kept in a manner
to be prescribed by him.