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Bill to clarify compensation for billboards rolled to 2026 calendar after industry and TDOT talks
Summary
House Bill 1021, concerning compensation and valuation for billboards taken for highway projects, was rolled to the committee's first calendar of 2026 after testimony from outdoor‑advertising firms, Ruby Falls and industry groups asking for consistent fair‑market valuation and discussion with TDOT.
House Bill 1021, sponsored by Chairman Russell, was moved to the House Transportation Subcommittee's first calendar for 2026 after industry representatives and TDOT discussed valuation and compensation for billboards taken in right‑of‑way acquisitions.
Industry witnesses said past TDOT projects removed high‑value digital billboards and paid relocation or acquisition amounts that left firms with substantial unrecovered investments. Hugh Morrow, president and CEO of Ruby Falls and R and R Outdoor Advertising, said TDOT paid roughly $59,000 for a digital billboard in Chattanooga that he estimated cost $250,000–$300,000 to install, leaving the company with a loss near $200,000. "Our options were to litigate it," Morrow said, "but we decided not to seek any type of further compensation on that. It's frustrating because we not only do we lose a billboard that said 'see Ruby Falls' on it, it lowered the value of our billboard plant."
Holly Kirby of the Outdoor Advertising Association of Tennessee said her members identified nine billboards since 2021 that TDOT had paid relocation costs for, totaling $525,590. Kirby said litigation costs can make contesting TDOT offers infeasible and that only one of seven non‑relocated signs would likely have reached an appraisal value high enough to justify litigation. "When you look at it across 3 years, 1 billboard, dollars 260,000 of extra cost that TDOT's not already spending today," she said.
Scott Hibbert, who testified with local outdoor firms, said removal and relocation costs add up once contractors and removal fees are considered. Legislators noted the state's need to fund transportation projects and TDOT's responsibility to appraise and pay fair market value for property taken for projects; some members urged deeper dialogues between TDOT and the industry on valuation methodology.
Action: Committee members agreed to roll HB 1021 to the first calendar of 2026 to allow more detailed negotiations and to avoid harming TDOT funding for other projects. A voice vote adopted the motion; the chair requested industry and agency meetings to seek a common approach to appraisal and compensation before next year's calendar.
Context and next steps: Sponsors and industry representatives encouraged a collaborative process to identify which signs have been affected, refine fiscal estimates, and determine whether statutory clarification is needed to ensure fair market compensation or relocation funds for impacted billboard owners and property owners who lease locations to billboard companies.
