SB-0964, As Passed Senate, December 21, 2018

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 964

A bill to amend 1972 PA 106, entitled

"Highway advertising act of 1972,"

by amending sections 2, 3, 4, 6, 7, 7a, 9, 17, 17a, 19, and 23 (MCL

252.302, 252.303, 252.304, 252.306, 252.307, 252.307a, 252.309,

252.317, 252.317a, 252.319, and 252.323), sections 2, 4, 6, 7, 7a,

and 17 as amended and section 17a as added by 2014 PA 2 and

sections 3, 9, and 19 as amended by 2006 PA 448, and by adding

section 8; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Abandoned or discontinued sign or sign structure" or

"abandoned sign" means a sign or sign structure subject to this

act, the owner of which has failed to secure a permit, has failed

to identify the sign or sign structure, or has failed to respond to

notice.

(b) "Adjacent area" means the area measured from the nearest

edge of the right-of-way of an interstate highway, freeway, or

primary highway and, in urbanized areas, extending 3,000 feet

perpendicularly and then along a line parallel to the right-of-way

line or, outside of urbanized areas, extending perpendicularly to

the limit where a sign is visible and then along a line parallel to

the right-of-way line.

~~(c) "Annual permit" means a permit for a billboard under this~~

~~act.~~

erected for the purpose of advertising a product, event, person, or

subject not related to the premises on which the sign is located.

Billboard does not include an off-premises directional sign.

(d) ~~(e)~~ "Business area" means an adjacent area that is zoned

by a state, county, township, or municipal zoning authority for

industrial or commercial purposes, customarily referred to as "b"

or business, "c" or commercial, "i" or industrial, "m" or

manufacturing, and "s" or service, and all other similar

classifications and that is within a city, village, or charter

township or is within 1 mile of the corporate limits of a city,

village, or charter township or is beyond 1 mile of the corporate

limits of a city, village, or charter township and contains 1 or

more permanent structures devoted to the industrial or commercial

purposes described in this subdivision and that extends along the

highway a distance of 800 feet beyond each edge of the activity.

Each side of the highway is considered separately in applying this

definition except that where it is not topographically feasible for

a sign or sign structure to be erected or maintained on the same

side of the highway as the permanent structure devoted to

industrial or commercial purposes, a business area may be

established on the opposite side of a primary highway in an area

zoned commercial or industrial or in an unzoned area with the

approval of the state highway commission. A permanent structure

devoted to industrial or commercial purposes does not result in the

establishment of a business area on both sides of the highway. All

measurements shall be from the outer edge of the regularly used

building, parking lot, or storage or processing area of the

commercial or industrial activity and not from the property lines

of the activities and shall be along or parallel to the edge or

pavement of the highway. Commercial or industrial purposes are

those activities generally restricted to commercial or industrial

zones in jurisdictions that have zoning. Business area includes an

adjacent area that is zoned by a county, city, village, township,

or charter township zoning authority as part of a comprehensive

land development project or planned unit development in which

commercial or industrial activity is the primary use of the

property. As used in this subdivision, "primary use" means that at

least 75% of the total current actual use and planned development

and use is, and will remain, commercial or industrial. In addition,

the following activities are not commercial or industrial:

(i) Agricultural, animal husbandry, forestry, grazing,

farming, and related activities, including, but not limited to,

wayside fresh produce stands.

(ii) Transient or temporary activities.

(iii) Activities not visible from the main-traveled way.

(iv) Activities conducted in a building principally used as a

residence, or in a building located on property that is used

principally for residential purposes or for the activities in

subparagraph (i).

(v) Railroad tracks and minor sidings.

(vi) Outdoor advertising.

(vii) Activities more than 660 feet from the main-traveled

way.

(viii) Activities that have not been in continuous operation

of a business or commercial nature for at least 2 years.

(ix) Public utility facilities, whether regularly staffed or

not.

(x) Structures associated with on-site outdoor recreational

activities such as riding stables, golf course shops, and

campground offices.

(xi) Activities conducted in a structure for which an

occupancy permit has not been issued or that is not a fully

enclosed building, having all necessary utility service and

sanitary facilities required for its intended commercial or

industrial use.

(xii) A storage facility for a business or other activity not

located on the same property, except a storage building having at

least 10 separate units that are available for rent by the public.

(xiii) A temporary business solely established to qualify as

commercial or industrial activity under this act.

(e) ~~(f)~~ "Department" means the state transportation

department.

(f) ~~(g)~~ "Destroyed sign" means a nonconforming sign that has

been damaged by storm, fire, or other casualty that requires

customary maintenance and repair in excess of 60% of the

replacement cost of a new sign structure constructed of equivalent

materials and equipment. Destroyed sign does not include a

nonconforming sign that has been damaged by vandalism or a

negligent act of a person.

(g) ~~(h)~~ "Digital billboard" means a sign or sign structure

that utilizes an electronic means to display a series of messages

that are changed by electronic means. Digital billboard does not

include a sign that contains an embedded electronic message device

or a trivision sign.

(h) ~~(i)~~ "Digital billboard permit" means a permit for a

digital billboard that is renewable on an annual basis.

(i) ~~(j)~~ "Directional sign" means a sign that contains only

directional information regarding and the identification of 1 of

the following:

(i) A public or private activity or attraction that is owned

or operated by the federal or a state or local government or an

agency of the federal or a state or local government.

(ii) A publicly or privately owned natural phenomenon or a

historic, cultural, scientific, educational, or religious site.

(iii) An area that is in the interest of the traveling public,

if the area is of natural scenic beauty or is naturally suited for

outdoor recreation.

(j) ~~(k)~~ "Embedded electronic message device" means an

accessory that is made part of a sign, sign face, or sign structure

with a total area that is less than that of the sign face to which

it is attached, and displays only static messages containing text

or numbers that are directly associated with the current

advertiser. Embedded electronic message device does not include a

digital billboard or a device that displays graphics other than

messages containing text or numbers.

(k) (l) "Erect" means to construct, build, raise, assemble,

place, affix, attach, create, paint, draw, or in any other way

bring into being or establish.

(l) ~~(m)~~ "Existing vegetation" means trees, bushes, and ground

cover that the department intends to maintain and that are at least

the same size as similar vegetation that the department would

customarily install and maintain or allow to be installed and

maintained as part of a roadside management plan, roadside

management project, or landscaping project.

(m) ~~(n)~~ "Freeway" means a divided highway of not less than 2

lanes in each direction to which owners or occupants of abutting

property or the public do not have a right of ingress or egress to,

from, or across the highway, except at points determined by or as

otherwise provided by the authorities responsible for the freeway.

(n) ~~(o)~~ "Incorporated municipality" means a city, village, or

charter township.

(o) ~~(p)~~ "Index" means the Detroit ~~consumer price index~~

Consumer Price Index for all urban consumers published by the

United States ~~bureau~~ Bureau of ~~labor statistics~~ Labor Statistics

or, if that index ceases to be published by the United States

~~bureau~~ Bureau of ~~labor statistics,~~ Labor Statistics, the published

index that most closely measures inflation, as determined by the

department.

(p) ~~(q)~~ "Interim permit" means a permit that can be utilized

by the applicant to construct a sign structure that is visible from

a freeway, interstate, or primary highway.

(q) ~~(r)~~ "Interstate highway" means a highway officially

designated as a part of the national system of interstate and

defense highways by the department and approved by the federal

government under 23 USC 103.

(r) ~~(s)~~ "Location" means a place where a sign structure

subject to this act is located.

(s) ~~(t)~~ "Main-traveled way" means the traveled way of a

highway on which through traffic is carried. Main-traveled way

includes the traveled way of each of the separate roadways for

traffic in opposite directions on a divided highway. Main-traveled

way does not include facilities such as frontage roads, turning

roadways, or parking areas.

(t) ~~(u)~~ "Maintain" means to allow to exist and includes the

periodic changing of advertising messages, and customary

maintenance and repair of signs and sign structures.

(u) "National highway system" means a designation provided to

certain highways by the department and approved by the United

States Department of Transportation and the United States Congress,

the purpose of which is to provide an interconnected system of

principal arterial routes that service major population centers,

international border crossings, ports, airports, public

transportation facilities, and interstate and interregional travel

that meets national defense requirements.

(v) "Nationally known" means an activity or attraction that is

all of the following:

(i) An active part of a national advertising promotion.

(ii) Listed on a national register, if applicable.

(iii) Staffed and maintains a register of visitors.

(iv) Listed in national travel guides.

(v) Organized to provide information or conducted tours for a

significant portion of the year, or for at least 3 months if the

activity or attraction is seasonal in nature.

(w) "Nonconforming sign" means a sign or sign structure, other

than a nonstandard sign or a sign that is erected and maintained in

a business area along a scenic byway prior to the designation as a

scenic byway, that satisfies 1 of the following:

(i) Was legally erected before March 31, 1972 but could not be

legally erected under the current provisions of this act.

(ii) Is a sign or sign structure regulated under this act that

was legally ~~erected~~ permitted after March 31, 1972 but could not be

legally erected under the current provisions of this act.

(x) "Nonstandard sign" means a sign or sign structure other

than a nonconforming sign, that is subject to this act, was legally

~~erected~~ permitted on or before March 23, 1999, is not a

nonconforming sign, and does not comply with the spacing

requirements in section ~~17(1),~~ 17, but otherwise complies with this

act.

(y) "On-premises sign" means a sign advertising activities

conducted or maintained on the property on which it is located. The

boundary of the property shall be as determined by tax rolls, deed

registrations, and apparent land use delineations. If a sign

consists principally of brand name or trade name advertising and

the product or service advertised is only incidental to the

principal activity conducted or maintained on the property, or if

the sign brings rental income to the property owner or sign owner,

it shall be considered the business of outdoor advertising and not

an on-premises sign. On-premises sign does not include a sign on a

narrow strip of land contiguous to the advertised activity, or a

sign on an easement on adjacent property, when the purpose is

clearly to circumvent the intent of this act.

(z) "Permit" means a license required under this act to

maintain or erect a billboard visible from a regulated route.

(aa) "Permit holder" means a person that has been issued a

permit or a person to whom a permit for a specific sign location or

an interim permit has been transferred.

(bb) ~~(z)~~ "Person" means any individual, partnership, private

association, or corporation, state, county, city, village,

township, charter township, or other public or municipal

association or corporation.

(cc) ~~(aa)~~ "Primary highway" means a highway other than an

interstate highway or freeway that is a regulated route.

(dd) ~~(bb)~~ "Regionally known" means an activity or attraction

that is all of the following:

(i) Known throughout this state or the peninsula of this state

in which the activity or attraction is located and in 1 or more

states adjoining this state.

(ii) Listed on a state register, if applicable.

(iii) Staffed and maintains a register of visitors.

(iv) Organized to provide information or conducted tours for a

significant portion of the year, or for at least 3 months if the

activity or attraction is seasonal in nature.

(ee) ~~(cc)~~ "Regulated route" means an interstate highway,

freeway, or primary highway required to be regulated under 23 USC

131 and any other route that is required to be regulated or may

become required to be regulated by the department under this act or

another state or federal statute or legal requirement.

(ff) ~~(dd)~~ "Religious organization sign" means a sign, not

larger than 8 square feet, that gives notice of religious services.

(gg) ~~(ee)~~ "Scenic byway" means a regulated route that is

required to be regulated as a scenic byway under 23 USC 131.

(hh) ~~(ff)~~ "Secondary highway" means a state secondary road or

county primary road.

(ii) ~~(gg)~~ "Service club sign" means a sign, not larger than 8

square feet, that gives notice about nonprofit service clubs or

charitable associations.

(jj) ~~(hh)~~ "Sign" means any outdoor sign, display, device,

figure, painting, drawing, message, placard, poster, billboard, or

other thing, whether placed individually or on a T-type, V-type,

back to back, or double-faced display, that is designed, intended,

or used to advertise or inform.

(kk) "Sign owner" means a person that demonstrates ownership

of a sign structure, regardless of whether that person holds a

permit for the sign.

(ll) ~~(ii)~~ "Sign structure" means the assembled components that

make up an outdoor advertising display, including, but not limited

to, uprights, supports, facings, and trim. A sign structure may

contain 1 or 2 signs per facing and may be double-faced, back to

back, T-type, or V-type.

(mm) ~~(jj)~~ "Tobacco product" means any tobacco product sold to

the general public and includes, but is not limited to, cigarettes,

tobacco snuff, and chewing tobacco.

(nn) ~~(kk)~~ "Trivision sign" means a sign or sign structure that

uses mechanical means to display more than 1 message in sequence.

(oo) (ll) "Unzoned commercial or industrial area" means an

area that is within an adjacent area, that is not zoned by state or

local law, regulation, or ordinance, that contains 1 or more

permanent structures devoted to the industrial or commercial

purposes described in subdivision ~~(e),~~ (d), and that extends along

the highway a distance of 800 feet beyond each edge of the

activity. Each side of the highway is considered separately in

applying this definition except that where it is not

topographically feasible for a sign or sign structure to be erected

or maintained on the same side of the highway as the permanent

structure devoted to industrial or commercial purposes, an unzoned

commercial or industrial area may be established on the opposite

side of a primary highway in an area zoned commercial or industrial

or in an unzoned area with the approval of the state highway

commission. A permanent structure devoted to industrial or

commercial purposes does not result in the establishment of an

unzoned commercial or industrial area on both sides of the highway.

All measurements shall be from the outer edge of the regularly used

building, parking lot, or storage or processing area of the

commercial or industrial activity and not from the property lines

of the activities and shall be along or parallel to the edge or

pavement of the highway. Commercial or industrial purposes are

those activities generally restricted to commercial or industrial

zones in jurisdictions that have zoning. In addition, the following

activities are not commercial or industrial:

(i) Agricultural, animal husbandry, forestry, grazing, farming

and related activities, including, but not limited to, wayside

fresh produce stands.

(ii) Transient or temporary activities.

(iii) Activities not visible from the main-traveled way.

(iv) Activities conducted in a building principally used as a

residence, or in a building located on property that is used

principally for residential purposes or for the activities in

subparagraph (i).

(v) Railroad tracks and minor sidings.

(vi) Outdoor advertising.

(vii) Activities more than 660 feet from the main-traveled

way.

(viii) Activities that have not been in continuous operation

of a business or commercial nature for at least 2 years.

(ix) Public utility facilities, whether regularly staffed or

not.

(x) Structures associated with on-site outdoor recreational

activities such as riding stables, golf course shops, and

campground offices.

(xi) Activities conducted in a structure for which an

occupancy permit has not been issued or that is not a fully

enclosed building, having all necessary utility service and

sanitary facilities required for its intended commercial or

industrial use.

(xii) A storage facility for a business or other activity not

located on the same property, except a storage building having at

least 10 separate units that are available for rent by the public.

(xiii) A temporary business solely established to qualify as

commercial or industrial activity under this act.

(pp) ~~(mm)~~ "Visible" means a sign that has a message that is

capable of being seen by an individual of normal visual acuity when

traveling in a motor vehicle.

Sec. 3. To improve and enhance scenic beauty consistent with

~~section 131 of title 23 of the United States Code,~~ 23 USC 131 , and

to limit and reduce the illegal possession and use of tobacco by

minors, the legislature finds it appropriate to regulate and

control outdoor advertising and outdoor advertising as it pertains

to tobacco adjacent to the streets, roads, highways, and freeways

within this state and that outdoor advertising is a legitimate

accessory commercial use of private property, is an integral part

of the marketing function, and is an established segment of the

economy of this state.

Sec. 4. This act regulates and controls the size, lighting,

and spacing of signs and sign structures in adjacent areas and

occupies the whole field of that regulation and control except for

the following:

(a) A county, city, village, township, or charter township may

enact ordinances to regulate and control the operation, size,

lighting, and spacing of signs and sign structures but shall not

permit a sign or sign structure that is otherwise prohibited by

this act or require or cause the removal of lawfully erected signs

or sign structures subject to this act without the payment of just

compensation. A sign owner shall apply for ~~an annual~~ a permit

~~pursuant to~~ under section 6 for each sign to be maintained or to be

erected within that county, city, village, charter township, or

township. A sign erected or maintained within that county, city,

village, township, or charter township shall also comply with all

applicable provisions of this act. An ordinance or code adopted by

a county, city, village, township, or charter township that

regulates the operation, size, lighting, or spacing of signs and

sign structures and that is more stringent than the laws of this

state is not made void by this act.

(b) A county, city, village, charter township, or township

vested by law with authority to enact zoning codes has full

authority under its own zoning codes or ordinances to establish

commercial or industrial areas and the actions of a county, city,

village, charter township, or township in so doing shall be

accepted for the purposes of this act. However, except as provided

in subdivision (a), zoning that is not part of a comprehensive

zoning plan and is taken primarily to permit outdoor advertising

structures shall not be accepted for purposes of this act. A zone

in which limited commercial or industrial activities are permitted

as incidental to other primary land uses is not a commercial or

industrial zone for outdoor advertising control purposes.

charter township that existed on March 31, 1972 and that prohibits

signs or sign structures is not made void by this act.

(d) A county ordinance that regulates and controls the size,

lighting, and spacing of signs and sign structures shall only apply

in a township within the county if the township has not enacted an

ordinance to regulate and control the size, lighting, and spacing

of signs and sign structures.

(e) A county, on its own initiative or at the request of a

city, village, township, or charter township within that county,

may prepare a model ordinance as described in subdivision (a). A

city, village, township, or charter township within that county may

adopt the model ordinance.

Sec. 6. (1) A sign owner shall apply for ~~an annual~~ a permit on

a form prescribed by the department for each sign or sign structure

to be maintained or erected in an adjacent area where the facing of

the sign or sign structure is visible from a regulated route. The

form shall require the name and business address of the applicant,

the name and address of the owner of the property on which the sign

or sign structure is to be located, the date the sign or sign

structure, if currently maintained, was erected, the zoning

classification of the property, a precise description of where the

sign or sign structure is or will be situated and a certification

that the sign or sign structure is not prohibited by section ~~18(a),~~

~~(b), (c), or (d)~~ 18 and that the sign or sign structure does not

violate any provisions of this act. The sign permit application

shall include a statement signed by the owner of the land on which

the sign or sign structure is to be placed, acknowledging that no

trees or shrubs in the adjacent highway right-of-way may be

removed, trimmed, or in any way damaged or destroyed without the

written authorization of the department. The department may require

documentation to verify the zoning, the consent of the land owner,

and any other matter considered essential to the evaluation of

compliance with this act. A sign owner shall apply for a separate

~~annual~~ permit for each sign or sign structure for each regulated

route subject to this act from which the facing of the sign or sign

structure is visible.

(2) The owner of a sign or sign structure shall apply for an

~~annual~~ a permit for each sign or sign structure that becomes

subject to the permit requirements of this act because of a change

in highway designation or other reason not within the control of

the sign owner within 2 months after receiving notice from the

department that the sign or sign structure is subject to the permit

requirements of this act. Both of the following apply to ~~an annual~~

a permit issued under this subsection:

(a) The ~~annual~~ permit is not subject to section 7a.

(b) The ~~annual~~ permit may not be surrendered for an interim

permit under section 7a(3).

(3) In addition to ~~an annual~~ a permit under subsection (1), a

sign owner shall apply for and the department shall issue a digital

billboard permit for each digital billboard that is not a

nonconforming sign and that meets the requirements of section 17(3)

to be maintained or erected in an adjacent area where the facing of

the sign or sign structure is visible from a regulated route. The

information provided by an applicant under this subsection shall be

on a form prescribed by the department. A sign owner shall apply

for a separate digital billboard permit for each sign or sign

structure allowed under section 17(3) for each regulated route from

which the facing of the sign or sign structure is visible. The

owner of a sign or sign structure shall apply for a digital

billboard permit for each digital billboard that becomes subject to

the permit requirements of this act because of a change in highway

designation or other reason not within the control of the sign

owner within 2 months after receiving notice from the department

that the sign or sign structure is subject to the permit

requirements of this act. ~~Both~~ All of the following apply to a

digital billboard permit issued under this subsection:

(a) The digital billboard permit is not subject to section 7a.

(b) The digital billboard permit may not be surrendered for an

interim permit under section 7a(3).

~~(4) Notwithstanding any other provision of this act, within 90~~

~~days after the effective date of the amendatory act that added this~~

~~subsection, the owner of a digital billboard that was legally~~

~~erected before the effective date of the amendatory act that added~~

~~this subsection shall apply for, and the department shall issue, a~~

~~digital billboard permit. A digital billboard permitted under this~~

~~subsection or subsection (5) is exempt from section 17(3), and the~~

~~department shall not require any form of consideration for a~~

~~digital billboard permitted under this subsection or subsection (5)~~

~~other than payment of the appropriate application fee and annual~~

~~renewal fees as required under this act.~~

~~(5) Notwithstanding any other provision of this act, if, on~~

~~the effective date of the amendatory act that added this~~

~~subsection, an individual has obtained location approval from the~~

~~department and approval from the local unit of government having~~

~~jurisdiction of that location to erect a digital billboard, he or~~

~~she shall apply for, and the department shall issue, a digital~~

~~billboard permit.~~

March 1, 2016 that are not nonstandard or nonconforming signs, are

not located on a scenic highway, and are located in a city with a

population of at least 600,000, an owner may apply for and the

department shall approve a digital billboard permit. A sign

permitted under this subdivision is exempt from section 17(3).

(4) ~~(6)~~ Both of the following apply to the owner of a

nonstandard sign:

(a) In addition to ~~an annual~~ a permit under subsection (1),

the owner of a nonstandard sign may apply for a digital billboard

permit to erect and maintain a digital billboard on a nonstandard

sign by applying for a digital billboard permit on a form

prescribed by the department, paying the required fee, and

surrendering 3 interim permits to the department. The owner of a

nonstandard sign seeking a digital billboard permit under this

subsection shall apply for a separate digital billboard permit for

each sign or sign structure for each regulated route from which the

facing of the sign or sign structure is visible, but shall not be

required to surrender more than a total of 3 interim permits.

(b) ~~Beginning on the effective date of the amendatory act that~~

~~added this subdivision and ending 1 year after the effective date~~

~~of the amendatory act that added this subdivision, for~~ For the

first 8 nonstandard signs for which the owner applies for a digital

billboard permit under subdivision (a), the owner shall not be

required to surrender 3 interim permits. This subdivision only

applies to signs located in a county having a population of not

less than 750,000. The spacing requirements under section 17(4)

apply to the first 8 nonstandard signs for which the owner applies

for a digital billboard permit under subdivision (a).

Sec. 7. (1) A permit fee is payable annually in advance, to be

credited to the state trunk line fund. For a digital billboard

permit, the fee is $200.00 for the first year. For ~~an annual~~ a

permit for a billboard that does not require a digital billboard

permit, the fee is $100.00 for the first year except that signs in

existence prior to a highway's change in designation or

jurisdiction that requires signs to be permitted shall only be

required to pay the permit renewal amount under subsection (2). The

department shall establish an ~~annual~~ expiration date for each

permit and may change the expiration date of existing permits to

spread the permit renewal activity over the year. Permit fees may

be prorated the first year. An application for the renewal of a

permit shall be filed with the department no later than the

permit's expiration date.

(2) For signs up to and including 300 square feet, the ~~annual~~

permit renewal fee is $50.00. For signs greater than 300 square

feet, the ~~annual~~ permit renewal fee is $80.00. The ~~annual~~ permit

renewal fee for an interim permit is $80.00. The ~~annual~~ permit

renewal fee for a digital billboard permit is $200.00. Signs of the

service club and religious category are not subject to ~~an annual~~ a

renewal fee.

(3) If the ~~annual~~ renewal fee is not paid by the expiration

date of the permit as required under this section, the ~~annual~~

renewal fee shall increase for that year by an additional $50.00.

The department shall send notice of nonpayment by certified mail to

the permit holder's address on file within 30 days after the

expiration date and shall inform the permit holder that if the

~~annual~~ renewal fee as increased under this subsection is not paid

within 60 days after the permit expiration date, the department may

cancel the permit without taking further administrative action

unless an administrative hearing is requested by the permit holder

within 60 days after the permit expiration date.

(4) The department shall send notice of a permit's

cancellation to the permit holder ~~using 1 of the following methods:~~

~~(a) For a permit that was canceled between 2011 and the day~~

~~before the effective date of the amendatory act that added this~~

~~sentence,~~ by certified mail ~~to the permit holder's address on file.~~

~~The department shall send the notice~~ within 60 days after the

~~effective date of the amendatory act that added this sentence.~~

permit was canceled. The notice shall advise the permit holder that

he or she may ~~request reinstatement of the permit~~ submit a new

application for a permit within 60 days after the date of the

notice, ~~as provided in section 7a(16).~~

~~(b) For a permit that was canceled on or after the effective~~

~~date of the amendatory act that added this sentence, by certified~~

~~mail to the permit holder's address on file. The department shall~~

~~send the notice within 60 days after the date the permit was~~

~~canceled. The notice shall advise the permit holder that he or she~~

~~may request reinstatement of the permit within 60 days after the~~

~~date of the notice as provided in section 7a(16).~~if, at the time

the application is submitted, the permit holder surrenders an

interim permit as provided in section 7a(4) or if the sign meets

the qualifications described in section 7a(13).

(5) Notwithstanding subsection (3), for permits having the

same expiration date, the maximum amount of increased ~~annual~~

renewal fees for late payments that may be assessed by the

department under this section against 1 permit holder is

$10,000.00.

(6) The department shall require a transfer fee when a request

is made to transfer existing permits to a new sign owner. Except as

otherwise provided in this subsection, the transfer fee is $100.00

for each permit that is requested to be transferred, up to a

maximum of $500.00 for a request that identifies 5 or more permits

to be transferred. If the department incurs additional costs

directly attributable to special and unique circumstances

associated with the requested transfer, the department may assess a

transfer fee greater than the maximums identified in this

subsection to recover those costs.

(7) Notwithstanding any other provision of this act, the

department shall not charge a renewal fee for a sign located on a

limited access highway that is subject to a full closure for more

than 120 days at the time of renewal.

Sec. 7a. (1) Except as otherwise provided in this section,

section 6(2)(a), and section 7b, the department shall not issue an

~~annual~~ a permit for a new sign on or after January 1, 2007.

(2) A permit issued by the department before January 1, 2007

remains in force and valid.

(3) On and after January 1, 2007, the department shall issue

an interim permit to a holder of a valid permit if all of the

following conditions are met:

(a) The holder of the valid permit is otherwise in compliance

with this act.

(b) The holder of the permit surrenders the permit to the

department upon the removal of a sign structure that has a valid

permit under this act.

structure in writing to the department.

(d) The department verifies that the sign structure has been

removed or the removal has been deemed effective under this

section.

(4) An interim permit issued under this section shall only be

utilized for the construction of a sign structure. ~~and shall remain~~

~~in effect without expiration with fees renewed on an annual basis.~~

A sign erected using an interim permit shall not be closer than

1,000 feet to another sign structure on the same side of the

highway along interstate highways and freeways or closer than 500

feet to another sign structure on the same side of the highway

along primary highways. An interim permit shall not be used to

erect a sign in a location where existing vegetation ~~is greater~~

~~than 8 feet tall or where existing vegetation~~ was removed without

the department's permission.

(5) The department shall verify that an existing sign

structure has been removed no later than 30 days after the

department receives written notice from the permit holder that the

sign structure has been removed. If the department does not respond

to the written notice within 30 days after receipt of the written

notice, then the permit holder shall be deemed to have removed the

sign structure in compliance with this section.

(6) A holder of 2 valid permits for a sign structure with 2

faces who complies with this section shall receive 2 interim

permits for the construction of a sign structure with 2 faces. A

permit holder under this subsection shall not receive 2 interim

permits to construct 2 single-face sign structures.

(7) A holder of a valid permit for a sign structure with a

single face is entitled to exchange that permit under this section

for an interim permit with a single face. A holder of valid permits

for 2 different single-face structures may exchange the 2 permits

under this section for 2 interim permits to construct 2 single-face

sign structures or 2 interim permits to construct 1 sign structure

with 2 faces.

(8) A holder of more than 2 valid permits for a sign structure

with more than 2 faces may exchange the permits under this section

for a maximum of 2 interim permits. The 2 interim permits received

under this section shall only be used to construct 1 sign structure

with no more than 2 faces.

(9) After construction of a sign structure under an interim

permit is complete, the department shall issue ~~renewable permits~~

~~annually~~ a permit for the completed sign structure if the sign

structure is in compliance with this act.

(10) If a permit holder for a sign structure that exists on

January 1, 2007 requires additional permits for any reason, ~~or if~~

~~the owner of a sign that meets the requirements of section 17(10)~~

~~applies for a permit before July 1, 2011,~~ the department may issue

a ~~valid renewable~~ permit ~~renewable on an annual basis~~ without

complying with subsection (1) even if the permit holder has more

than 2 valid permits as a result.

(11) The department may issue a permit for a new sign

structure that measures no more than 8 square feet for service club

signs or religious organization signs.

(12) Notwithstanding anything in this act to the contrary,

permits issued under subsection (11) are not eligible to be

surrendered for an interim permit.

(13) Notwithstanding anything in this act to the contrary, the

department may issue a permit for an existing sign that advertises

a product, service, or retail business that is owned and operated

by the sign owner if the location for the sign meets all existing

requirements of this act, or if the sign is an existing

nonconforming sign that advertises a product, service, or retail

business that is owned and operated by the sign owner and the sign

owner held an original permit for that sign on January 1, 2007.

(14) A permit issued under subsection (13) is not transferable

and is not eligible to be surrendered for an interim permit.

(15) Notwithstanding anything in this act to the contrary, the

department may issue a permit for a sign that is no more than 150

square feet in size and that advertises a product, service,

attraction, destination, or retail business that is owned and

operated or served by the sign owner, if the sign meets all other

requirements of this act. A permit issued under this subsection is

not transferable and is not eligible to be surrendered for an

interim permit. The department shall not issue more than 4 permits

under this subsection to an attraction, destination, or retail

business.

~~(16) Both of the following apply to the owner of an existing~~

~~sign or sign structure whose permit was canceled due to nonpayment~~

~~of renewal fees:~~

~~(a) He or she may apply for a new annual permit by submitting~~

~~an application for a new annual permit and surrendering an interim~~

~~permit.~~

~~(b) No later than 60 days after notice is sent under section~~

~~7(4)(a), the owner of an existing sign or sign structure whose~~

~~permit expired during December 2012 due to nonpayment of renewal~~

~~fees may apply for a new annual permit by submitting an application~~

~~for a new annual permit and surrendering 1 interim permit per sign,~~

~~but shall not be required to submit more than 1 interim permit per~~

~~sign structure.~~

Sec. 8. If a limited access freeway is closed for more than

120 days, a permit holder shall apply for, and the department shall

approve, relocation of a sign located in the adjacent area where

the facing of the sign is visible from that limited access freeway,

if the sign meets applicable spacing and zoning requirements. The

height or size of the sign shall not be changed at the new

location. A sign that is relocated under this section shall be

restored to its original location and status no later than 60 days

after being notified by the department that the limited access

freeway is reopened for full use.

Sec. 9. Except for signs existing on March 31, 1972, a permit

shall be issued or denied within 30 days after proper receipt of

the permit form and the permit fee from the applicant. A permit

shall not be issued for a sign ~~which~~ that is prohibited by section

~~18(a), (b), (c), or (d).~~ 18. A permit shall not be issued for a

sign that violates this act unless the sign is eligible for removal

compensation under section 22.

Sec. 17. (1) Except as otherwise provided in subsections (10)

and (11), along interstate highways and freeways, a sign structure

located in a business area or unzoned commercial or industrial area

shall not be erected or maintained closer than 1,000 feet to

another sign structure on the same side of the highway.

(2) Along primary highways and roadways that are part of the

national highway system, a sign structure shall not be erected or

maintained closer than 500 feet to another sign structure.

(3) Except as otherwise provided in subsection (4), a sign

utilizing a digital billboard permit shall not be closer than 1,750

feet to another sign utilizing a digital billboard permit on either

side of the highway facing the same direction of oncoming traffic.

(4) ~~Beginning on the effective date of the amendatory act that~~

~~added this subsection and ending 1 year after the effective date of~~

~~the amendatory act that added this subsection, for~~ For the first 8

nonstandard signs for which the owner applies for a digital

billboard permit under section ~~6(6)(a)~~ 6(4)(a) without having to

surrender 3 interim permits as provided under section ~~6(6)(b),~~

6(4)(b), each sign shall not be closer than 1,000 feet to another

sign using a digital billboard permit on either side of the highway

facing the same direction of traffic. This subsection only applies

to signs located in a county having a population of not less than

750,000.

(5) This section does not apply to signs separated by a

building or other visual obstruction in such a manner that only 1

sign located within the spacing distances is visible from the

highway at any time, provided that the building or other visual

obstruction has not been created for the purpose of visually

obstructing either of the signs at issue.

(6) Along interstate highways and freeways located outside of

incorporated municipalities, a sign structure shall not be

permitted adjacent to or within 500 feet of an interchange, an

intersection at grade, or a safety roadside rest area. The 500 feet

shall be measured from the point of beginning or ending of pavement

widening at the exit from, or entrance to, the main-traveled way.

(7) Official signs as described in section 13(1)(a) and on-

premises signs shall not be counted and measurements shall not be

made from them for purposes of determining compliance with the

spacing requirements in this section.

(8) Except as provided in subsection (3), the spacing

requirements in this section apply separately to each side of the

highway.

(9) The spacing requirements in this section shall be measured

along the nearest edge of the pavement of the highway between

points directly opposite each sign.

(10) A sign that was erected in compliance with the spacing

requirements of this section that were in effect at the time when

the sign was erected, but that does not comply with the spacing

requirements of this section after March 23, 1999, is not unlawful

under section 22.

(11) Along an interstate highway that is designated by 1

letter and 3 numbers and located in a county with a population of

less than 211,000 but more than 175,000, an existing sign structure

that was erected prior to March 24, 2011 shall not be closer than

900 feet to another sign structure on the same side of the highway.

~~(12) Nothing in this section shall be construed to cause a~~

~~sign that was legally erected prior to March 23, 1999 to be defined~~

~~as a nonconforming sign.~~

Sec. 17a. (1) A nonconforming sign may continue to exist as

long as it is not a destroyed, abandoned, discontinued, or

prohibited sign. A nonconforming sign that has not displayed an

advertising message for more than 1 year shall be considered an

abandoned sign.

(2) A sign owner may perform customary maintenance and repair

of a nonconforming sign. The annual cost of the customary

maintenance and repair shall not exceed 40% of the replacement cost

of a new sign structure constructed using equivalent materials and

equipment.

(3) A sign owner may perform customary maintenance and repair

of a nonconforming sign that is damaged as a result of storm, fire,

or casualty. Customary maintenance and repair of a nonconforming

sign that is damaged as a result of storm, fire, or casualty shall

not exceed 60% of the replacement cost of a new sign structure

constructed using equivalent materials and equipment. The 60%

limitation in this subsection does not apply if the damage to the

nonconforming sign is caused by vandalism or a negligent act of a

person other than the sign owner.

(4) A nonconforming sign owner may not take any action that

places this state out of compliance with federal statutes,

published rules, regulations, or the federal-state agreement on

outdoor advertising.

(5) A nonstandard sign may continue to exist and a sign owner

may perform any action to a nonstandard sign that is allowed under

this act, except for the following:

(a) Increasing the overall height of an existing sign

structure.

(b) Increasing the total square footage of a sign face to a

size greater than its original square footage.

(6) As used in this section: ~~, "customary maintenance and~~

~~repair"~~

(a) "Customary maintenance and repair" means the repair or

replacement of materials or equipment with equivalent materials or

equipment on a sign or sign structure that restores the structural

integrity of the sign or sign structure or the functionality of the

equipment. Customary maintenance and repair includes, but is not

limited to, modifications to the sign or sign structure that are

designed to comply with state and federal worker safety regulations

and requirements, modifications to the sign structure that are

primarily for the conservation of energy or environmental

preservation, paint, and the installation of trim or borders. ~~, and~~

~~removal of 1 or more sign faces or relocation of all or part of the~~

~~sign or sign structure upon request by the department.~~ All of the

following apply to customary maintenance and repair:

(i) ~~(a)~~ Customary maintenance and repair does not include any

of the following:

(A) (i) Enlargement of the sign or sign structure. As used in

this subparagraph, "enlargement of the sign or sign structure" does

not include either of the following:

(I) ~~(A)~~ The installation of a temporary copy enhancement.

(II) ~~(B)~~ The installation of an embedded message device, if

the installation is not prohibited by federal statute or a rule

promulgated by the federal highway administration.

(B) (ii) Except as otherwise provided in this ~~subsection,~~ sub-

subparagraph, a change in the location of the sign structure.

(D) (iv) Installation of additional signs on a sign structure.

(E) (v) Electrification of the sign or sign structure.

(ii) ~~(b)~~ Notwithstanding any other provision of this act,

customary maintenance and repair includes a modification to a sign

or sign structure that was completed ~~prior to~~ before January 1,

2007, other than electrification, conversion to a digital

billboard, or conversion to a trivision sign. Customary maintenance

and repair includes the reversal of electrification, conversion to

a digital billboard, or conversion to a trivision sign if the

electrification, conversion to a digital billboard, or conversion

to a trivision sign was completed before January 1, 2007.

(b) "Replacement cost" means the total sum of the costs

incurred if a new sign and sign structure were erected at a

conforming location with equivalent materials and equipment at

current market prices.

Sec. 19. (1) Signs and their supporting structures erected or

maintained in violation of this act may be removed by the

department in the manner prescribed in this section.

(2) ~~There~~ The department shall ~~be mailed to the owner of the~~

~~sign~~ mail by certified mail to the sign owner and permit holder a

notice that the sign or its supporting sign structure violates

stated specified provisions of this act and is subject to removal.

If the ~~owner's~~ sign owner or permit holder's address cannot be

determined, the department shall post a notice ~~shall be posted~~ on

the sign. The posted notice shall be written on red waterproof

paper stock of a size not less than 8-1/2 inches by 11 inches. The

department shall post the notice ~~shall be posted~~ in the area

designated by section 12 for the placing of permit numbers, in a

manner so that it is visible from the highway faced by the sign or

sign structure.

(3) If the sign or sign structure is not removed or brought

into compliance with this act within 60 30 days following the date

of posting or mailing of written notice or within such further time

as the department may allow in writing, the sign or sign structure

shall be considered ~~to be~~ abandoned.

(4) The department shall conduct a hearing ~~pursuant to~~ under

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

to 24.328, at which it shall confirm that the sign is abandoned,

that due process has been observed, and that the sign may be

removed by the department without payment of compensation and at

the expense of the owner. ~~Signs~~ The department shall remove signs

or sign structures ~~considered~~ determined to be abandoned under this

subsection, and any other sign or sign structure erected or

maintained in violation of this act that is not eligible for

removal compensation as provided in section 22, ~~shall be removed by~~

~~the department forthwith~~ immediately or upon the expiration of such

further time as the department allows. The department may recover

as a penalty from the owner of the sign or sign structure or, if he

or she cannot be found, the owner of the real property upon which

the sign or sign structure is located, double the cost of removal

or $500.00, whichever is greater. For frivolous hearings as

determined by the administrative law judge, the department may

recover as a penalty from the owner of the sign or sign structure,

or, if the owner of the sign or sign structure cannot be found, the

owner of the real property upon which the sign or sign structure is

located, double the cost of an administrative hearing incurred by

the department or $500.00, whichever is greater. Any penalty

imposed under this section is subject to de novo review in circuit

court.

(5) The department, its agents and employees, and any person

acting under the authority of or by contract with the department

may enter upon private property without liability ~~for so doing~~ in

connection with the posting or the removal of any sign or sign

structure ~~pursuant to~~ under this act.

(6) The department may contract on a negotiated basis without

competitive bidding with a permittee under this act for the removal

of any sign or sign structure ~~pursuant to~~ under this act.

(7) Any repeat violation of this act shall be considered a

continuing violation of this act.

(8) A sign or sign structure erected or maintained in

violation of this act is a nuisance per se. The department, before

or after a hearing is conducted, may apply to the circuit court in

the county in which a sign is located for an order to show cause

why the use of a sign erected or maintained in violation of this

act should not be enjoined pending its removal in accordance with

this section.

(9) A person that erects a sign without a valid permit issued

under this act is subject to a fine that will be assessed daily for

the duration of the violation beginning on the date the notice

required under subsection (2) is received as indicated on the

certified mailing card. The fine amounts are as follows:

(a) $100.00 per day for the first 30 days after the notice is

received.

(b) $150.00 per day for the thirty-first through sixtieth day

after the notice is received.

(d) $200.00 per day for the ninety-first and each subsequent

day after the notice is received.

(10) In addition to the fines provided for in subsection (9),

the department may recover gross revenue a person earned as a

result of his or her violation of this act if all of the following

apply:

(a) The sign is located in a business area.

(b) The sign occupies an area greater than 300 square feet.

private building.

Sec. 23. (1) The department may promulgate and enforce rules

to implement this act in accordance with and subject to ~~Act No. 306~~

~~of the Public Acts of 1969, as amended, being sections 24.201 to~~

~~24.315 of the Compiled Laws of 1948.~~ the administrative procedures

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(2) If a person is aggrieved by any action or inaction of the

department, he or she may request a formal hearing on the matter

involved. The hearing shall be conducted by the department in

accordance with the provisions for contested cases in ~~Act No. 306~~

~~of the Public Acts of 1969, as amended~~ the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. An

employee of the department may represent the department at the

hearing, and an individual may represent himself or herself at the

hearing.

(3) A determination, action or inaction by the department

following the hearing ~~shall be~~ is subject to judicial review as

provided in ~~Act No. 306 of the Public Acts of 1969, as amended.~~the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

Enacting section 1. Sections 18b and 18c of the highway

advertising act of 1972, 1972 PA 106, MCL 252.318b and 252.318c,

are repealed.

Enacting section 2. This amendatory act takes effect 90 days

after the date it is enacted into law.