S.B. 190

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Mar 6, 2009 at 12:33 PM by kcallred. --> This document includes Senate 2nd Reading Floor Amendments (CORRECTED) incorporated into the bill on Wed, Mar 11, 2009 at 9:37 AM by rday. --> This document includes Senate 2nd Reading Floor Amendments (CORRECTED) incorporated into the bill on Thu, Mar 12, 2009 at 8:21 AM by rday. --> This document includes House Floor Amendments incorporated into the bill on Thu, Mar 12, 2009 at 12:21 PM by ddonat. --> 1

ACQUISITION OF A BILLBOARD BY
2 EMINENT DOMAIN
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne L. Niederhauser
6 House Sponsor: Craig A. Frank
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions relating to county and municipal acquisition of a billboard
11 by eminent domain.
12 Highlighted Provisions:
13 This bill:
14 . modifies a provision relating to the authority of a billboard owner who is
15 structurally modifying, upgrading, or relocating a billboard;
16 . provides that a county or municipality is considered to have initiated the acquisition
17 of a billboard structure if the county or municipality prevents a billboard owner
18 from making modifications, as the billboard owner determines, to a billboard that is
19 modified, upgraded, or relocated;
20 . requires counties and municipalities considered to have initiated the acquisition of a
21 billboard by eminent domain to pay just compensation; and
22 . defines the just compensation that counties and municipalities are required to pay.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:

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- 2 - 28 AMENDS:
29 10-9a-513, as last amended by Laws of Utah 2007, Chapter 171
30 17-27a-512, as last amended by Laws of Utah 2007, Chapter 171
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 10-9a-513 is amended to read:
34 10-9a-513. Municipality's acquisition of billboard by eminent domain -- Removal
35 without providing compensation -- Limit on allowing nonconforming billboards to be
36 rebuilt.
37 (1) (a) A municipality is considered to have initiated the acquisition of a billboard
38 structure by eminent domain if the municipality prevents a billboard owner from:
39 (i) rebuilding, maintaining, repairing, or restoring a billboard structure that is damaged
40 by casualty, an act of God, or vandalism;
41 (ii) except as provided in Subsection (1)(c), relocating or rebuilding a billboard
42 structure, or taking other measures, to correct a mistake in the placement or erection of a
43 billboard for which the municipality has issued a permit, if the proposed relocation, rebuilding,
44 or other measure is consistent with the intent of that permit;
45 (iii) structurally modifying or upgrading a billboard; [or]
46 (iv) relocating a billboard into any commercial, industrial, or manufacturing zone
47 within the municipality's boundaries, if:
48 (A) the relocated billboard is:
49 [(A)] (I) within 2,640 feet of its previous location; and
50 [(B)] (II) no closer than 500 feet from an off-premise sign existing on the same side of
51 the street or highway; and
52 [(C)] (B) (I) the billboard owner has submitted a written request under Subsection
53 10-9a-511 (3)(c); and
54 (II) the municipality and billboard owner are unable to agree, within the time provided
55 in Subsection 10-9a-511 (3)(c), to a mutually acceptable location[.]; or
56 [(b) A] (v) making the following modifications, as the billboard owner determines, to
57 a billboard that is structurally [modifying or upgrading a billboard] modified or upgraded under
58 Subsection (1)(a)(iii) or [relocating the billboard] relocated under Subsection (1)(a)(iv):

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Senate 2nd Reading Amendments 3-6-2009 kc/rhr 59

[(i) may, as the owner determines:]
60 (A) [erect] erecting the billboard:
61 (I) to a height that is at least the same as, but no higher than, the previous use or
62 structure, unless the municipality's ordinances allow or the municipality consents to a higher
63 structure; and
64 (II) to a height and angle to make it clearly visible to traffic on the main traveled way
65 of the street or highway on which the billboard is located; and
66 (B) [install] installing a sign face on the billboard that is at least the same size as, but
67 no larger than, the sign face on the billboard before its relocation[; and].
68 [(ii)] (b) A modification under Subsection (1)(a)(v) shall comply with Title 72, Chapter
69 7, Part 5, Utah Outdoor Advertising Act, to the extent applicable.
70 (c) A municipality's denial of a billboard owner's request to relocate or rebuild a
71 billboard structure, or to take other measures, in order to correct a mistake in the placement or
72 erection of a billboard does not constitute the initiation of acquisition by eminent domain under
73 Subsection (1)(a) if the mistake in placement or erection of the billboard is determined by clear
74 and convincing evidence to have resulted from an intentionally false or misleading statement:
75 (i) by the billboard applicant in the application; and
76 (ii) regarding the placement or erection of the billboard.
77 (d) H. [ (i) ] .H If a municipality is considered to have initiated the acquisition of a
77a billboard
78 structure by eminent domain under Subsection (1)(a) or any other provision of applicable law,
79 the municipality shall pay just compensation S. [ for outdoor advertising and all associated property
80 rights pertaining to the outdoor advertising ] to the billboard owner .S in an amount that is
80a H. [ the
80a greater of ] .H :
81 H. [ (A) ] (i) .H the value of the H. existing .H billboard H. [ in its present location;
81a and
82 (B) the value that the billboard owner projects the billboard to have in the proposed
83 location for which the owner made application.
84 (ii) The just compensation that a municipality is required to pay under Subsection
85 (1)(d)(i) includes:
86 (A) the S. [consideration of the] present value, ] .H at a fair market capitalization
86a rate, H. [ of
86a the .S greater of:
87 (I) ] based on .H S. [ past ] actual annual .S revenue, less H. any .H S. annual
87a .S rent expense; H. [ and
88 (II) projected future S. annual .S revenue, less S. annual .S rent expense;
89 (B) ] (ii) the value of .H any S. [ property ] other .S right associated with the billboard
89a1 structure that is
89a acquired;

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H. [ (C) ] (iii) .H the cost of the sign structure; and
91 H. [ (D) ] (iv) .H damage to the economic unit S. [ consisting of:
92 (I) the billboard structure actually taken; and
93 (II) remaining property, contiguous and not contiguous, to the outdoor advertising sign
94 company's interest. ] described in Subsection 72-7-510(3)(b), of which the billboard owner's
94a interest is a part .S
95 (2) Notwithstanding Subsection (1) and Section 10-9a-512 , a municipality may remove
96 a billboard without providing compensation if:
97 (a) the municipality determines:
98 (i) by clear and convincing evidence that the applicant for a permit intentionally made a
99 false or misleading statement in the applicant's application regarding the placement or erection
100 of the billboard; or
101 (ii) by substantial evidence that the billboard:
102 (A) is structurally unsafe;
103 (B) is in an unreasonable state of repair; or
104 (C) has been abandoned for at least 12 months;
105 (b) the municipality notifies the owner in writing that the owner's billboard meets one
106 or more of the conditions listed in Subsections (2)(a)(i) and (ii);
107 (c) the owner fails to remedy the condition or conditions within:
108 (i) except as provided in Subsection (2)(c)(ii), 90 days following the billboard owner's
109 receipt of written notice under Subsection (2)(b); or
110 (ii) if the condition forming the basis of the municipality's intention to remove the
111 billboard is that it is structurally unsafe, ten business days, or a longer period if necessary
112 because of a natural disaster, following the billboard owner's receipt of written notice under
113 Subsection (2)(b); and
114 (d) following the expiration of the applicable period under Subsection (2)(c) and after
115 providing the owner with reasonable notice of proceedings and an opportunity for a hearing,
116 the municipality finds:
117 (i) by clear and convincing evidence, that the applicant for a permit intentionally made
118 a false or misleading statement in the application regarding the placement or erection of the
119 billboard; or
120 (ii) by substantial evidence that the billboard is structurally unsafe, is in an

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- 5 - 121 unreasonable state of repair, or has been abandoned for at least 12 months.
122 (3) A municipality may not allow a nonconforming billboard to be rebuilt or replaced
123 by anyone other than its owner or the owner acting through its contractors.
124 (4) A permit issued, extended, or renewed by a municipality for a billboard remains
125 valid from the time the municipality issues, extends, or renews the permit until 180 days after a
126 required state permit is issued for the billboard if:
127 (a) the billboard requires a state permit; and
128 (b) an application for the state permit is filed within 30 days after the municipality
129 issues, extends, or renews a permit for the billboard.
130 Section 2. Section 17-27a-512 is amended to read:
131 17-27a-512. County's acquisition of billboard by eminent domain -- Removal
132 without providing compensation -- Limit on allowing nonconforming billboard to be
133 rebuilt.
134 (1) (a) A county is considered to have initiated the acquisition of a billboard structure
135 by eminent domain if the county prevents a billboard owner from:
136 (i) rebuilding, maintaining, repairing, or restoring a billboard structure that is damaged
137 by casualty, an act of God, or vandalism;
138 (ii) except as provided in Subsection (1)(c), relocating or rebuilding a billboard
139 structure, or taking other measures, to correct a mistake in the placement or erection of a
140 billboard for which the county has issued a permit, if the proposed relocation, rebuilding, or
141 other measure is consistent with the intent of that permit;
142 (iii) structurally modifying or upgrading a billboard; [or]
143 (iv) relocating a billboard into any commercial, industrial, or manufacturing zone
144 within the unincorporated area of the county, if:
145 (A) the relocated billboard is:
146 [(A)] (I) within 2,640 feet of its previous location; and
147 [(B)] (II) no closer than 500 feet from an off-premise sign existing on the same side of
148 the street or highway; and
149 [(C)] (B) (I) the billboard owner has submitted a written request under Subsection
150 17-27a-510 (3)(c); and
151 (II) the county and billboard owner are unable to agree, within the time provided in

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Senate 2nd Reading Amendments 3-6-2009 kc/rhr 152

Subsection 17-27a-510 (3)(c), to a mutually acceptable location[.]; or
153 [(b) A] (v) making the following modifications, as the billboard owner determines, to
154 a billboard that is structurally [modifying or upgrading a billboard] modified or upgraded under
155 Subsection (1)(a)(iii) or [relocating the billboard] relocated under Subsection (1)(a)(iv):
156 [(i) may, as the owner determines:]
157 (A) [erect] erecting the billboard:
158 (I) to a height that is at least the same as, but no higher than, the previous use or
159 structure, unless the county's ordinances allow or the county consents to a higher structure; and
160 (II) to a height and angle to make it clearly visible to traffic on the main traveled way
161 of the street or highway on which the billboard is located; and
162 (B) [install] installing a sign face on the billboard that is at least the same size as, but
163 no larger than, the sign face on the billboard before its relocation[; and].
164 [(ii)] (b) A modification under Subsection (1)(a)(v) shall comply with Title 72, Chapter
165 7, Part 5, Utah Outdoor Advertising Act, to the extent applicable.
166 (c) A county's denial of a billboard owner's request to relocate or rebuild a billboard
167 structure, or to take other measures, in order to correct a mistake in the placement or erection of
168 a billboard does not constitute the initiation of acquisition by eminent domain under Subsection
169 (1)(a) if the mistake in placement or erection of the billboard is determined by clear and
170 convincing evidence to have resulted from an intentionally false or misleading statement:
171 (i) by the billboard applicant in the application; and
172 (ii) regarding the placement or erection of the billboard.
173 (d) H. [ (i) ] .H If a county is considered to have initiated the acquisition of a billboard
173a structure
174 by eminent domain under Subsection (1)(a) or any other provision of applicable law, the county
175 shall pay just compensation S. [ for outdoor advertising and all associated property rights pertaining
176 to the outdoor advertising ] to the billboard owner .S in an amount that is H. [ the greater
176a of ] .H :
177 H. [ (A) ] (i) .H the value of the H. existing .H billboard H. [ in its present location;
177a and
178 (B) the value that the billboard owner projects the billboard to have in the proposed
179 location for which the owner made application.
180 (ii) The just compensation that a county is required to pay under Subsection (1)(d)(i)
181 includes:
182 (A) the S. [consideration of the] present value, ] .H at a fair market capitalization rate,
182a1 H. [ of
182a the .S greater of:

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Senate 2nd Reading Amendments 3-6-2009 kc/rhr 183

(I) ] based on .H S. [ past ] actual annual .S revenue, less H. any .H
183a1 S. annual .S rent
183a expense; H. [ and
184 (II) projected future S. annual .S revenue, less H. any .H S. annual .S rent expense;
185 (B) ] (ii) the value of .H any S. [ property ] other .S right associated with the billboard
185a structure that is
185a acquired;
186 H. [ (C) ] (iii) .H the cost of the sign structure; and
187 H. [ (D) ] (iv) .H damage to the economic unit S. [ consisting of:
188 (I) the billboard structure actually taken; and
189 (II) remaining property, contiguous and not contiguous, to the outdoor advertising sign
190 company's interest ] described in Subsection 72-7-510(3)(b), of which the billboard owner's
190a interest is a part .S .
191 (2) Notwithstanding Subsection (1) and Section 17-27a-511 , a county may remove a
192 billboard without providing compensation if:
193 (a) the county determines:
194 (i) by clear and convincing evidence that the applicant for a permit intentionally made a
195 false or misleading statement in the applicant's application regarding the placement or erection
196 of the billboard; or
197 (ii) by substantial evidence that the billboard:
198 (A) is structurally unsafe;
199 (B) is in an unreasonable state of repair; or
200 (C) has been abandoned for at least 12 months;
201 (b) the county notifies the owner in writing that the owner's billboard meets one or
202 more of the conditions listed in Subsections (2)(a)(i) and (ii);
203 (c) the owner fails to remedy the condition or conditions within:
204 (i) except as provided in Subsection (2)(c)(ii), 90 days following the billboard owner's
205 receipt of written notice under Subsection (2)(b); or
206 (ii) if the condition forming the basis of the county's intention to remove the billboard
207 is that it is structurally unsafe, ten business days, or a longer period if necessary because of a
208 natural disaster, following the billboard owner's receipt of written notice under Subsection
209 (2)(b); and
210 (d) following the expiration of the applicable period under Subsection (2)(c) and after
211 providing the owner with reasonable notice of proceedings and an opportunity for a hearing,
212 the county finds:
213 (i) by clear and convincing evidence, that the applicant for a permit intentionally made

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- 8 - 214 a false or misleading statement in the application regarding the placement or erection of the
215 billboard; or
216 (ii) by substantial evidence that the billboard is structurally unsafe, is in an
217 unreasonable state of repair, or has been abandoned for at least 12 months.
218 (3) A county may not allow a nonconforming billboard to be rebuilt or replaced by
219 anyone other than its owner or the owner acting through its contractors.
220 (4) A permit issued, extended, or renewed by a county for a billboard remains valid
221 from the time the county issues, extends, or renews the permit until 180 days after a required
222 state permit is issued for the billboard if:
223 (a) the billboard requires a state permit; and
224 (b) an application for the state permit is filed within 30 days after the county issues,
225 extends, or renews a permit for the billboard.

Legislative Review Note
as of 2-13-09 3:16 PM

Office of Legislative Research and General Counsel