(a) All persons, or corporations, owning or operating a railroad in this state, are required to make and furnish good and sufficient crossings on the public highways crossed by them, and keep such crossings in lawful repair at their own expense.

(b)

(1) Subsection (a) shall not preclude construction, reconstruction, improvement or repair of crossings, through financial participation of the state or local government with a railroad authority established by law, when accomplished by contract with an independent contractor, or when such work will be performed by employees of a local government acting under direct supervision and total control of a railroad authority or its agent.

(2) For liability purposes, when employees of a local government are working under the control of a railroad authority, such employees shall not be treated as employees of the local government, but instead shall be treated as employees of the railroad authority exercising control of the employees.

(c)

(1) Notwithstanding subsections (a) or (b) to the contrary, after July 1, 2001, no public railroad grade crossing shall be constructed and no private crossing shall be converted to a public crossing without the entity desiring the crossing or the conversion having first:

(A) Submitted the plans for the construction or conversion of the proposed crossing to the department of transportation; and

(B) Obtained the department of transportation's approval of those plans. Prior to rendering its final decision, the department of transportation shall submit the plans it proposes to approve to the federal highway administration, the affected local government, and the involved railroad for review and comment. Any entity desiring the construction or conversion of a crossing shall be responsible for all costs associated with constructing or converting such crossing in compliance with the plans approved by the department of transportation. No public railroad grade crossing constructed after July 1, 2001, and no private crossing converted to a public crossing after July 1, 2001, shall be opened to vehicular traffic until such crossing is inspected by the department of transportation to assure that the crossing was constructed or converted in accordance with the approved plans.

(2) The department of transportation shall promulgate standards pertaining to the construction or conversion of grade crossings pursuant to this subsection (c) including, but not limited to, appropriate warning devices. The department of transportation shall not approve any plans for construction or conversion of a railroad grade crossing that do not comply with the promulgated standards.

(3) The department of transportation shall charge a fee for the review and approval of plans for construction or conversion of railroad crossings and the inspection of the completed crossings. Such fee shall be sufficient to offset the cost to the department of transportation of performing these services. Such fee shall be paid by the party seeking approval of the plans for the crossing.

(4) The department of transportation shall promulgate rules and regulations pertaining to the approval of plans for construction or conversion of railroad grade crossings and the inspection of those crossings pursuant to this subsection (c).

(5) Upon receipt of an application for approval of plans pursuant to this subsection (c), the department of transportation shall notify the affected railroad and the governmental body having jurisdiction over the proposed location.

(6) If a crossing is constructed or converted in violation of this subsection (c), the affected railroad may remove the crossing and recover the cost of such removal from the party that constructed or converted the crossing.

(7)

(A) It is the intent of the general assembly that the standards, rules and regulations promulgated pursuant to this subsection (c) shall not be applied for any reason whatsoever to any railroad crossings established prior to July 1, 2001, except for the sole purpose of evaluating such railroad grade crossings for possible closure.

(B) It is the intent of the general assembly that the standards, rules and regulations promulgated by the department of transportation pursuant to this subsection (c) shall take effect on or before March 1, 2002.