§ 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.