Michigan committee hears testimony on billboard permitting, vegetation rules and eminent-domain costs

Lansing — The House Subappropriations Committee on State and Local Transportation Budget heard two hours of testimony on outdoor advertising rules, fees and enforcement on measures that affect billboards along state highways, including vegetation-management permits and eminent-domain disputes tied to road projects.

Representative Stephanie Steele, chair of the subappropriations committee, opened the June meeting and said the hearing would focus on “outdoor advertising, also known as billboards.” State Department of Transportation officials and representatives of the Outdoor Advertising Association of Michigan and member companies described how the permitting system works under federal and state law, and industry lawyers warned that condemnation of billboard sites along widening projects could cost the state millions.

Why it matters: Billboards on state trunk lines are regulated by a combination of federal law and Michigan statute. The permitting and vegetation-management processes determine whether a sign may be visible from the highway, who must pay for tree removal in the right of way and how the Michigan Transportation Fund is credited by permit fees. Witnesses told the committee the choices transportation officials make about visibility, replacement and compensation can trigger expensive legal disputes and affect small, local advertisers who buy billboard space.

What officials told lawmakers

Melissa Stafffeld, highway advertising specialist for the Michigan Department of Transportation (MDOT), gave an overview of the program, saying Michigan regulates roughly 11,700 miles of roads and currently issues permits by display face rather than by location. "We have 14,435 commercial sign permits," she said, adding that 582 of those are…