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.
Summary
HB1021 amends Tennessee law governing outdoor advertising devices, including billboards and similar signs, to require just compensation when such devices are removed or acquired under certain government actions. The bill authorizes the commissioner to acquire these devices and related property rights by purchase, gift, or condemnation when removal is required under existing highway sign-removal provisions.
The bill also states that a lawfully erected outdoor advertising device that is removed because of condemnation or other governmental action must be compensated in the same manner as a structure or improvement under Tennessee condemnation law. It further provides that if a political subdivision or other governmental agency requires removal without offering relocation to a similarly situated location, the owner must be paid the cost of removal plus the fair market value of the device. In both situations, the bill expressly says amortization does not count as just compensation.
Impact
The bill would expand and clarify compensation rights for owners of lawfully erected outdoor advertising devices under Tennessee Code Annotated Title 54 and related condemnation provisions in Title 29. It limits the ability of state and local governments to rely on amortization as a substitute for payment when signs are removed, and it creates a clearer statutory obligation to pay removal costs and fair market value in specified circumstances. The measure primarily affects the Tennessee Department of Transportation, political subdivisions, other governmental agencies, and billboard/outdoor advertising owners.
Sentiment
The available voting history suggests the bill was generally well received in committee, with unanimous support in the House Transportation Subcommittee and strong support in the House Transportation Committee. The recorded votes indicate broad agreement that owners of lawfully erected outdoor advertising devices should receive compensation when government action requires removal. No committee transcript is available, so the record shows support but not detailed debate.
Contention
The main policy issue is whether amortization can be used to satisfy compensation obligations when outdoor advertising devices are removed. The bill rejects amortization as just compensation, which likely benefits billboard owners and limits government flexibility. Another point of potential contention is the scope of compensation for removal plus fair market value when no relocation option is provided, which may increase costs for state and local governments and could affect sign-regulation and highway beautification efforts.
Crossfiled
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.
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.