SENATE BILL No. 964

 

 

April 26, 2018, Introduced by Senator CASPERSON and referred to the Committee on Transportation.

 

 

     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.

 

     (c) (d) "Billboard" means a sign separate from a premises

 

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 zoning.

 

As used in this subdivision, "primary use" means that at least 75%

 

of the total actual and planned development 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) (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.

 

     (v) (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.

 

     (w) (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.

 

     (x) (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.

 

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

 

maintain or erect a billboard visible from a regulated route.

 

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

 

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

 

has been transferred.

 

     (aa) (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.

 

     (bb) (aa) "Primary highway" means a highway other than an

 

interstate highway or freeway that is a regulated route.

 

     (cc) (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.


     (dd) (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.

 

     (ee) (dd) "Religious organization sign" means a sign, not

 

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

 

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

 

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

 

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

 

county primary road.

 

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

 

square feet, that gives notice about nonprofit service clubs or

 

charitable associations.

 

     (ii) (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.

 

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

 

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

 

permit for the sign.

 

     (kk) (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.


     (ll) (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.

 

     (mm) (kk) "Trivision sign" means a sign or sign structure that

 

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

 

     (nn) (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.

 

     (oo) (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 serves a public

 

need as 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.

 

     (c) An ordinance or code of a city, village, township, or

 

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 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.

 

     (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). This


subdivision only applies to an owner who, between January 30, 2014

 

and the effective date of the amendatory act that amended this

 

subdivision, has applied for 1 or more of the 8 digital billboard

 

permits that do not require surrender of 3 interim permits under

 

this subdivision.

 

     (c) The department shall return or credit any interim permits

 

surrendered by a sign owner or a permit holder described in

 

subdivision (b) who surrendered those interim permits for a

 

nonstandard sign, if the sign owner or permit holder would have

 

been exempt from surrendering the interim permits under subdivision

 

(b).

 

     (5) The department shall rescind approval for a location or

 

cancel a digital billboard permit issued under this act if the sign

 

or digital billboard was not erected within 36 months after the

 

date the approval was granted or the digital billboard permit was

 

issued.

 

     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 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.

 

     (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 suspend the payment of a permit fee for a sign

 

located on a regulated route that is closed for more than 60 days

 

until the regulated route is reopened for full use.

 

     (8) The department shall deposit all fines and fees collected

 

under this act into the highway advertising enforcement fund

 

created in subsection (9).

 

     (9) The highway advertising enforcement fund is created within

 

the state treasury. The state treasurer may receive money or other

 

assets from any source for deposit into the fund. The state

 

treasurer shall direct the investment of the fund. The state

 

treasurer shall credit to the fund interest and earnings from fund

 

investments. Money in the fund at the close of the fiscal year

 

shall remain in the fund and shall not lapse to the general fund.

 

The department shall be the administrator of the fund for auditing

 

purposes. The department shall expend money from the fund to

 

administer this act.

 

     (10) No later than December 31, 2022, the auditor general

 

shall review money deposited into the highway advertising

 

enforcement fund created in subsection (9), and shall determine if

 

the money collected in each of the 3 immediately preceding years

 

under this act is sufficient to fund the outdoor advertising

 

program, and shall recommend a fine and fee structure to the

 

legislature to achieve these goals.

 

     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.

 

     (c) The holder of the permit verifies the removal of the sign

 

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 for a sign located in the adjacent area

 

where the facing of the sign is visible from that limited access

 

freeway shall apply for, and the department shall approve,

 

relocation of the sign to another location for which the permit

 

holder holds a permit issued under this act, if the sign meets


applicable spacing and zoning requirements and the height or size

 

of the sign is not changed at the new location. If the sign is a

 

digital billboard, the relocation of the sign is not subject to

 

section 6(6)(a). A permit holder described in this section may make

 

modest modifications to a sign that is relocated under this section

 

to accommodate the relocation. A sign that is relocated under this

 

section shall be restored to its original location and status no

 

later than 60 days after the limited access freeway is reopened for

 

full use. No later than 30 days before the reopening of the limited

 

access freeway for full use, the department shall notify a permit

 

holder described in this subsection of the reopening.

 

     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)

 

(9) and (11), (10), 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) without having to surrender

 

3 interim permits as provided under section 6(6)(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. This

 

subsection only applies to a sign the owner of which, between

 

January 30, 2014 and the effective date of the 2018 amendatory act

 

that amended this subsection, has applied for 1 or more of the 8

 

digital billboard permits that do not require surrender of 3

 

interim permits under section 6(6)(b).

 

     (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. This subdivision does not apply to a nonstandard sign

 

located in a city with a population of more than 600,000 that was

 

permitted on or before March 23, 1999 and that was permitted by a

 

local jurisdiction for a height of at least 60 feet.

 

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

 

size greater than its original square footage.

 

     (c) Increasing the number of sign faces to more than 2.

 

     (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.

 

     (C) (iii) An increase in the height 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 to erect a new replacement sign or sign structure 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, permit holder, or

 

sign owner and permit holder if the sign owner is different than


the 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 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 and maintains 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.

 

     (c) $175.00 per day for the sixty-first through ninetieth 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.

 

     (c) The sign is attached to the exterior of a public or

 

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.