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Billboard industry briefs committee on economic footprint and seeks statutory clarity on takings compensation
Summary
The Outdoor Advertising Association of Tennessee presented industry employment and revenue figures, explained state and federal regulation tied to the Highway Beautification Act and described pending legislation to clarify compensation for billboards taken for road projects.
The Outdoor Advertising Association of Tennessee told the Senate Transportation and Safety Committee that billboards contribute to local economies through jobs, lease payments and advertising for Tennessee businesses, and that the industry seeks a statutory fix to clarify compensation when billboards are taken for public road projects.
Holly Kirby, executive director of the association, said member companies employ more than 175 people in Tennessee with an annual payroll of about $15 million and that member companies pay over $2.1 million in state and local taxes. She said members also make lease payments to roughly 4,500 landowners totaling more than $23 million a year, donate more than $3 million in donated space and charitable giving, and provide advertising for about 22,700 businesses.
Kirby reviewed the regulatory framework: the federal Highway Beautification Act of 1965, the state’s agreement with FHWA (administered via TDOT), and recent case law. She cited the Sixth Circuit decision Thomas v. Tennessee (Feb. 2019), which found parts of Tennessee’s prior billboard law content‑based; the legislature and this committee later revised state law and rules to respond to that ruling.
Kirby described a pending bill (sponsored by Senator Pote) that would clarify how compensation is determined when a billboard is removed for a public project. She said current case law is inconsistent about whether billboard owners may present evidence of lost business value beyond the physical structure and the association would prefer relocation but seeks clear statutory guidance ensuring fair compensation when relocation is not possible. “These are businesses. It's not just structure in the ground,” Kirby said.
The presentation noted regulation also involves local governments, which may adopt ordinances tied to state law, and that TDOT enforcement is linked to federal funding obligations under the Highway Beautification Act.
Committee members were offered follow up materials and the association noted the bill likely will be referred to the judiciary committee for consideration.
The committee did not take formal action on billboard legislation during this meeting; the association asked for legislative clarification and said it will return with more detail if requested.
