Advertising

Plain English Breakdown

Checked against official source text during the last sync.

Act for Just Compensation for Outdoor Advertising Removal

This bill amends Tennessee laws to require just compensation when outdoor advertising devices are removed or acquired by purchase, gift, or condemnation.

What This Bill Does

• Adds the commissioner's authority to acquire outdoor advertising devices and related property rights through purchase, gift, or condemnation if removal is required due to non-compliance with permit requirements.
• Requires payment of just compensation for the acquisition or removal of any outdoor advertising device that was lawfully erected under federal laws controlling such advertisements.
• Specifies that a lawfully erected outdoor advertising device affected by condemnation must receive just compensation similar to structures taken through eminent domain, without deductions for amortization.
• Ensures that if an outdoor advertising device is removed by a political subdivision or governmental agency and cannot be relocated, the owner receives payment covering removal costs plus fair market value of the device.
• Prohibits using amortization when calculating just compensation for removing lawfully erected outdoor advertising devices.

Who It Names or Affects

• Outdoor advertising owners who have to remove their signs due to non-compliance with permit requirements or other reasons.
• The Tennessee Department of Transportation, which will be responsible for acquiring and compensating for the removal of these devices.
• Political subdivisions and governmental agencies that require the removal of outdoor advertising devices.

Terms To Know

just compensation

Fair payment given to an owner when their property is taken by the government, usually through eminent domain or condemnation.

eminent domain

The power of a government to take private property for public use, with fair compensation to the owner.

Limits and Unknowns

• The financial impact on local governments is unclear and cannot be accurately predicted.
• The bill does not specify how just compensation will be calculated or determined in practice.

Official Summary Text

Present law authorizes the
commissioner
of transportation to a
cquire by purchase, gift, or condemnation, and to pay just compensation upon the removal of the following outdoor advertising devices in areas adjacent to the interstate and primary highway sy
stems:

(1) Those lawfully in existence on April 4, 1972; and

(2) Those lawfully erected on or after April 4, 1972.

Present law generally requires that a
person
obtain a permit or tag from the commissioner prior to
construct
ing
, erect
ing
, operat
ing
,
us
ing
, maintain
ing
, or caus
ing
or permi
t
t
ing
to be constructed, erected, operated, used, or maintained, any outdoor advertising device within
660
feet of the nearest edge of the right-of-way and visible from the main traveled way of the interstate or prima
ry highway systems
.

This bill adds authorization for the
commissioner
to
acquire by purchase, gift, or condemnation all outdoor advertising devices and any property rights pertaining to such devices when such devices are required to be removed
for failur
e to comply with the permit and tag requirements.

This bill requires that j
ust compensation be paid for the acquisition or for the removal of any outdoor advertising device lawfully erected
under federal law concerning the control of outdoor advertisin
g
that is required to be removed for any reason.
This bill specifies that a
lawfully erected outdoor advertising device adversely affected by condemnation is entitled to just compensation in the same manner as a structure or improvement
that is taken by e
minent domain (which is generally the value of the land or rights taken without deduction with additional considerations allowed for incidental damages)
.

I
f a political subdivision or other governmental agency requires the removal of an outdoor adverti
sing device lawfully erected without an option to relocate the outdoor advertising device to a similarly situated location, then
this bill requires that
just compensation
is p
aid to the owner of the outdoor advertising device for the cost of removal plus t
he fair market value of the outdoor advertising device removed.

Th
is bill prohibits the
use of amortization
when determining
just compensation
for the removal of a lawfully erected outdoor advertising device
.

Current Bill Text

HOUSE BILL 1021
By Russell

SENATE BILL 735
By Pody

SB0735
002569
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 29,
Chapter 16 and Section 54-21-107, relative to just
compensation for removal or acquisition of outdoor
advertising devices.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 54-21-107, is amended by adding
the following as new subsections (b) and (c) and redesignating existing subsections (b) and (c)
and subsequent subsections accordingly:
(b) The commissioner is authorized to acquire by purchase, gift, or
condemnation all outdoor advertising devices and any property rights pertaining to such
devices when such devices are required to be removed under § 54-21-105. Just
compensation must be paid for the acquisition or for the removal of any outdoor
advertising device lawfully erected as provided in 23 U.S.C. § 131 that is required to be
removed for any reason, including under § 54-21-105. Notwithstanding another law to
the contrary, a lawfully erected outdoor advertising device adversely affected by
condemnation is entitled to just compensation in the same manner as a structure or
improvement under § 29-16-203. The use of amortization for whatever period does not
constitute just compensation.
(c) Notwithstanding this section or another law to the contrary, if a political
subdivision or other governmental agency requires the removal of an outdoor advertising
device lawfully erected without an option to relocate the outdoor advertising device to a
similarly situated location, then just compensation must be paid to the owner of the
outdoor advertising device for the cost of removal plus the fair market value of the

- 2 - 002569

outdoor advertising device removed. The use of amortization for any period does not
constitute just compensation under this subsection (c).
SECTION 2. Tennessee Code Annotated, Section 54-21-107, is amended by deleting
the language "subdivisions (b)(1)(A) and (B)" wherever it appears and substituting instead
"subdivisions (d)(1)(A) and (B)".
SECTION 3. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.