(1) The general assembly hereby finds and declares that the department of transportation controls the use of thousands of acres of rights-of-way in Colorado for highway purposes. The general assembly further finds that, although the primary use of such rights-of-way is for highways, certain rights-of-way could also be used for productive agricultural purposes without reducing the suitability or safety of such rights-of-way for highway purposes and for authorized utility accommodations.

(2) The department of transportation may issue permits to persons who own land adjacent to state highway rights-of-way so that such persons may use such rights-of-way for agricultural purposes. The executive director of the department of transportation, or the director's designee, shall promulgate rules and regulations which describe the terms, conditions, and purposes of such permits. Included in such regulations shall be a definition of adjacent landowner, a description of the types of agricultural uses allowed, the procedure which shall be used to obtain a permit, and any insurance requirements which the executive director finds appropriate. In no event shall a right-of-way permit be entered into which, in the judgment of the department, would not be in the best interests of the state or would be detrimental to the public health, safety, or welfare or in conflict with any applicable federal, state, or local law or for any agricultural purpose which involves irrigation. No right-of-way permit shall authorize the use for agricultural purposes of any median separating traffic lanes on a state highway, or where ownership of the right-of-way is not of public record.

(3) The department of transportation may charge reasonable and necessary fees for the application and approval of any permits authorized by this section.

(4) Prior to obtaining a permit from the department of transportation, the permittee shall show proof of insurance in the amount required by the department. The department of transportation shall not be liable for any property damage or injury which may result from the permitting of right-of-way as provided for in this section.