(2) Except as provided in Subsection (3) and Section 54-4-15, a person may not:

1. (a) dig or excavate, within the right-of-way of any state highway, county road, or city street; or
2. (b) place, construct, or maintain any approach road, driveway, pole, pipeline, conduit, sewer, ditch, culvert, billboard, advertising sign, or any other structure or object of any kind or character within the right-of-way.

(3)

1. (a)

   1. (i) A highway authority having jurisdiction over the right-of-way may allow excavating, installation of utilities and other facilities or access under rules made by the highway authority and in compliance with federal, state, and local law as applicable.
   2. (ii) Notwithstanding Subsection (3)(a)(i), a highway authority may not allow excavating, installation of utilities and other facilities, or access to any portion of a state highway, including portions thereof within a municipality, without the prior written approval of the department. The department may, by written agreement with a municipality, waive the requirement of its approval for certain types and categories of excavations, installations, and access.

2. (b)

   1. (i) The rules may require a permit for any excavation or installation and may require a surety bond or other security.
   2. (ii) The application for a permit for excavation or installation on a state highway shall be accompanied by a fee established under Subsection (4)(f).
   3. (iii) The permit may be revoked and the surety bond or other security may be forfeited for cause.
   4. (iv) Any portion of the right-of-way disturbed by a project permitted under this section shall be repaired using construction standards established by the highway authority with jurisdiction over the disturbed portion of the right-of-way.

3. (c)

   1. (i) For a portion of a state highway right-of-way for which a municipality has jurisdiction, and upon request of the municipality, the department shall grant permission for the municipality to issue permits within the state highway right-of-way, provided that:

      1. (A) the municipality gives the department seven calendar days to review and provide comments on the permit; and
      2. (B) upon the request of the department, the municipality incorporates changes to the permit as jointly agreed upon by the municipality and the department.
   2. (ii) If the department fails to provide a response as described in Subsection (3)(c)(i) within seven calendar days, the municipality may issue the permit.

(4)

1. (a) Except as provided in Section 72-7-108 with respect to the department concerning the interstate highway system, a highway authority may require compensation from a utility service provider for access to the right-of-way of a highway only as provided in this section.
2. (b) A highway authority may recover from a utility service provider, only those management costs caused by the utility service provider's activities in the right-of-way of a highway under the jurisdiction of the highway authority.

3. (c)

   1. (i) A highway authority shall impose a fee or other compensation under this Subsection (4) on a competitively neutral basis.

   2. (ii)

      1. (A) If a highway authority's management costs cannot be attributed to only one entity, the highway authority shall allocate the management costs among all privately owned and government agencies using the highway right-of-way for utility service purposes, including the highway authority itself.
      2. (B) The allocation shall reflect proportionately the management costs incurred by the highway authority as a result of the various utility uses of the highway.
4. (d) A highway authority may not use the compensation authority granted under this Subsection (4) as a basis for generating revenue for the highway authority that is in addition to the highway authority's management costs.

5. (e)

   1. (i) A utility service provider that is assessed management costs or a franchise fee by a highway authority is entitled to recover those management costs.
   2. (ii) If the highway authority that assesses the management costs or franchise fees is a political subdivision of the state and the utility service provider serves customers within the boundaries of that highway authority, the management costs may be recovered from those customers.
6. (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall adopt a schedule of fees to be assessed for management costs incurred in connection with issuing and administering a permit on a state highway under this section.
7. (g) In addition to the requirements of this Subsection (4), a telecommunications tax or fee imposed by a municipality on a telecommunications provider, as defined in Section 10-1-402, is subject to Section 10-1-406.

(6) Nothing in this section shall affect the authority of a municipality under:

1. (a) Section 10-1-203 or 10-1-203.5;
2. (b) Section 11-26-201;
3. (c) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; or
4. (d) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.