Tennessee Senate Bill SB0735

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25

Caption

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

SB0735 amends Tennessee law governing outdoor advertising devices, including billboards, when they must be removed or are otherwise affected by government action. The bill authorizes the commissioner to acquire such devices and related property rights by purchase, gift, or condemnation when removal is required under existing law. It also states that just compensation must be paid for the removal or acquisition of a lawfully erected outdoor advertising device, including devices protected under federal highway sign law, and clarifies that amortization alone does not count as just compensation. The bill further provides that if a political subdivision or other governmental agency requires removal of a lawfully erected outdoor advertising device and does not offer relocation to a similarly situated location, the owner must be paid the cost of removal plus the fair market value of the device. It makes conforming language changes to Tennessee Code Annotated Section 54-21-107 and includes a severability clause and immediate effective date.

Impact

The bill would expand and clarify compensation requirements under Tennessee’s outdoor advertising and eminent domain-related statutes, particularly Tennessee Code Annotated Title 54, Chapter 21 and Title 29, Chapter 16. It strengthens the rights of billboard and outdoor advertising owners by specifying that removal or condemnation of lawfully erected signs requires just compensation, and by rejecting amortization as a substitute for compensation. State and local governments, including political subdivisions and agencies that order sign removal, would face clearer and potentially higher compensation obligations.

Sentiment

The available voting history suggests generally favorable sentiment toward the bill. The Senate Judiciary Committee recommended passage by an 8-1 vote and referred the bill onward to the Senate Finance, Ways, and Means Committee. No committee transcript is available, but the strong committee vote indicates broad support, likely reflecting agreement with the bill’s property-rights and compensation protections.

Contention

The main point of contention is likely the fiscal and policy impact of requiring full compensation for removal of outdoor advertising devices, especially where amortization has previously been used as a regulatory tool. Supporters appear to favor stronger protections for billboard owners and clearer compensation standards, while the dissenting vote likely reflects concern about increased costs to government entities, reduced local regulatory flexibility, or the broader implications for sign regulation and land-use enforcement.