(1) The department shall adopt reasonable rules governing right-of-way occupancy by a utility for the following:
(a) installation, construction, maintenance, repair, or system upgrade of all utilities on commission-designated highway systems or state highways;
(b) except as provided in 60-4-403, reimbursement to a utility for the costs of installation, construction, maintenance, repair, renewal, or relocation of facilities; and
(c) issuance of an occupancy permit or, in the case of a facility not within the scope of Title 60, chapter 4, part 4, an encroachment permit.
(2) The rules must provide for right-of-way occupancy and relocation of publicly owned water and sewer facilities. The rules must ensure that the nonhighway use of the right-of-way does not affect the department's ability to maintain and operate the highway in a safe manner.
(3) The permitting provisions of this section do not apply to existing utility facilities or existing facilities not within the scope of Title 60, chapter 4, part 4, lawfully occupying the highway right-of-way on October 1, 2019.