*EH1262.2*
Reprinted
March 1, 2022
ENGROSSED
HOUSE BILL No. 1262
_____
DIGEST OF HB 1262 (Updated February 28, 2022 3:32 pm - DI 137)
Citations Affected: IC 8-23; IC 36-1.
Synopsis: Outdoor advertising signs. Establishes procedures for the
valuation of an outdoor advertising sign (sign) that cannot be elevated
or relocated to a conforming location within the market area due to a
change along the interstate and primary system or any other highway.
Requires the Indiana department of transportation to provide written
notice to the representative of a sign owner that a project has been
planned that may impact the sign at least 12 months prior to the filing
of an eminent domain action for the sign. Provides that an owner is
entitled to full and just compensation for the taking of a sign in the
amount of the fair market value of the interests associated with the
sign. In Marion County, allows the: (1) board of directors (board) of an
agricultural fair society, association, or corporation; or (2) the county
legislative body; that owns or operates a county fairgrounds to place
one digital billboard at a location on the county fairgrounds selected by
the board.
Effective: July 1, 2022.
Cherry, Pressel, Austin, Morris
(SENATE SPONSORS — CRIDER, BOOTS, RANDOLPH LONNIE M)
January 10, 2022, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
January 20, 2022, amended, reported — Do Pass.
January 24, 2022, read second time, ordered engrossed. Engrossed.
January 25, 2022, read third time, passed. Yeas 85, nays 4.
SENATE ACTION
February 2, 2022, read first time and referred to Committee on Judiciary.
February 24, 2022, reported favorably — Do Pass.
February 28, 2022, read second time, amended, ordered engrossed.
EH 1262—LS 7030/DI 137 Reprinted
March 1, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1262
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities and transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-23-20-25.6, AS ADDED BY P.L.222-2017,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 25.6. (a) As used in this section, "market area"
4 means a point within the same county as the prior location of an
5 outdoor advertising sign.
6 (a) (b) This section applies only to a conforming an outdoor
7 advertising sign located along the interstate and primary system, as
8 defined in 23 U.S.C. 131(t) on June 1, 1991, or any other highway
9 where control of outdoor advertising signs is required under 23 U.S.C.
10 131.
11 (b) (c) If a conforming an outdoor advertising sign is no longer
12 visible or becomes obstructed, or must be moved or removed, due to a
13 noise abatement or safety measure, grade changes, construction,
14 directional sign, highway widening, or aesthetic improvement made by
15 any agency of the state along the interstate and primary system or any
16 other highway, the owner or operator of the outdoor advertising sign,
17 to the extent allowed by federal or state law, may:
EH 1262—LS 7030/DI 137 2
1 (1) elevate the a conforming outdoor advertising sign; or
2 (2) relocate the a conforming or nonconforming outdoor
3 advertising sign to a point within five the market area, if the
4 new location of hundred (500) feet of its prior location, if the
5 outdoor advertising sign complies with the applicable spacing
6 requirements and is located in land zoned for commercial or
7 industrial purposes or unzoned areas used for commercial or
8 industrial purposes.
9 (d) If within one (1) year of an action being filed under IC 32-24,
10 an owner can demonstrate that the owner has made good faith
11 efforts to relocate a conforming or nonconforming outdoor
12 advertising sign to a conforming location within the market area,
13 but the owner has not obtained a new conforming location, the
14 outdoor advertising sign will be treated as if it cannot be relocated
15 within the market area. Notwithstanding subsection (e) and
16 IC 8-23-20.5, if an outdoor advertising sign cannot be elevated or
17 relocated to a conforming location and elevation within the market
18 area, the removal or relocation of the outdoor advertising sign
19 constitutes a taking of a property interest and the owner must be
20 compensated under section 27 of this chapter. Notwithstanding
21 subsections (d) and (g), if a conforming outdoor advertising sign
22 cannot be elevated or relocated within the market area, the
23 removal or relocation of the conforming outdoor advertising sign
24 constitutes a total taking of a real property interest, including the
25 sign structure, and the owner must be compensated under section
26 27 of this chapter.
27 (c) (e) Subject to subsection (f), The county or municipality, under
28 IC 36-7-4, may, if necessary, provide for the elevation or relocation by
29 ordinance for a special exception to the zoning ordinance of the county
30 or municipality.
31 (d) (f) The elevated outdoor advertising sign or outdoor advertising
32 sign to be relocated shall be the same size as the previous outdoor
33 relocated, advertising sign and, to the extent allowed by federal or
34 state law, may be modified: to:
35 (1) to elevate the sign to make the entire advertising content of
36 the sign visible; and
37 (2) to an angle to make the entire advertising content of the sign
38 visible; and
39 (3) in size or material type, at the expense of:
40 (A) the owner, if the modification in size or material type
41 of the outdoor advertising sign is by choice of the owner;
42 or
EH 1262—LS 7030/DI 137 3
1 (B) the department, if the modification in size or material
2 type of the outdoor advertising sign is required for the
3 outdoor advertising sign to comply with IC 22-13.
4 (e) (g) This section does not exempt an owner or operator of a sign
5 from submitting to the department any application or fee required by
6 law.
7 (f) If the county or municipality does not amend its zoning
8 ordinance as necessary to provide for a special exception to the zoning
9 ordinance under subsection (c), notwithstanding IC 8-23-20-10, the
10 county or municipality is responsible for the payment for just and full
11 compensation to an owner under IC 32-24.
12 (h) At least twelve (12) months before the filing of an eminent
13 domain action to acquire an outdoor advertising sign under
14 IC 32-24, the department must provide written notice to the
15 representative of the sign owner identified on the outdoor
16 advertising sign permit that is on file with the Indiana department
17 of transportation that a project has been planned that may impact
18 the outdoor advertising sign.
19 (i) If the agency fails to provide notice required by subsection
20 (h) within twelve (12) months of an action being filed against an
21 owner under IC 32-24, the owner may receive reasonable
22 compensation for losses associated with the failure to receive
23 timely notice. However, failure to send notice required by
24 subsection (h) is not a basis of an objection to a proceeding under
25 IC 32-24-1-8.
26 SECTION 2. IC 8-23-20-25.7 IS ADDED TO THE INDIANA
27 CODE AS A NEW SECTION TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2022]: Sec. 25.7. The department may adopt
29 emergency rules under IC 4-22-2 to implement this chapter. A rule
30 adopted under this section expires only with the adoption of a new
31 superseding rule.
32 SECTION 3. IC 8-23-20-27 IS ADDED TO THE INDIANA CODE
33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
34 1, 2022]: Sec. 27. (a) This section applies to a taking of an outdoor
35 advertising sign through:
36 (1) the power of eminent domain under IC 32-24; or
37 (2) a change that prohibits a conforming outdoor advertising
38 sign from being elevated or relocated under section 25.6 of
39 this chapter.
40 (b) As used in this section, "condemnor" means:
41 (1) any person authorized by Indiana law to exercise the
42 power of eminent domain; and
EH 1262—LS 7030/DI 137 4
1 (2) an agency of the state that must provide compensation to
2 the owner of a conforming outdoor advertising sign under
3 section 25.6 of this chapter.
4 (c) As used in this section, "outdoor advertising sign" means a
5 sign that is located along the interstate and primary system, as
6 defined in 23 U.S.C. 131(t) on June 1, 1991, or any other highway
7 where control of outdoor advertising signs is required under 23
8 U.S.C. 131.
9 (d) A condemnor that acquires an outdoor advertising sign and
10 its associated rights under this section shall pay full and just
11 compensation to the owner of the outdoor advertising sign in an
12 amount equal to the fair market value of the interests associated
13 with the outdoor advertising sign, including, but not limited to,
14 leasehold interests and access rights.
15 (e) An appraiser shall calculate the fair market value by
16 considering all valuation approaches based upon the standards
17 governing recognized valuation approaches to fair market value.
18 SECTION 4. IC 8-23-20.5 IS ADDED TO THE INDIANA CODE
19 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]:
21 Chapter 20.5. Relocation of Conforming Billboards
22 Sec. 1. This chapter applies to an outdoor advertising sign that
23 is eligible to be relocated as a conforming sign under
24 IC 8-23-20-25.6(c) and IC 8-23-20-25.7.
25 Sec. 2. As used in this chapter, "market area" has the meaning
26 set forth in IC 8-23-20-25.6(a).
27 Sec. 3. (a) If a county or municipality either:
28 (1) subject to IC 8-23-20-10, does not amend its zoning
29 ordinance as necessary to provide for a special exception to
30 the zoning ordinance for the relocation of an outdoor
31 advertising sign; or
32 (2) does not approve a variance to the zoning ordinance filed
33 by the outdoor advertising sign's owner that conforms to the
34 filing requirements;
35 the county or municipality is responsible for the payment of full
36 and just compensation for the outdoor advertising sign under
37 IC 8-23-20-27, including any costs and fees associated with a
38 variance application, if applicable, to the outdoor advertising sign's
39 owner.
40 (b) A county or municipality's consideration of a special
41 exception or variance may not be a basis to delay the appointment
42 of appraisers under IC 32-24-1-9.
EH 1262—LS 7030/DI 137 5
1 (c) If a county or municipality has not approved the relocation
2 of an outdoor advertising sign located within its jurisdiction before
3 the date an action under IC 32-24 is filed, the county or
4 municipality must be named as a party to the action.
5 Sec. 4. (a) If an outdoor advertising sign cannot be relocated
6 within the market area, a court presiding over an action under
7 IC 32-24 shall order, subject to IC 32-24-1-9:
8 (1) if an appraisal has not already been submitted to the court,
9 an appraisal; or
10 (2) if an appraisal has already been submitted to the court, a
11 new appraisal;
12 with instructions to the appraisers that the outdoor advertising
13 sign is not capable of relocation and must be appraised using the
14 method described in IC 8-23-20-27.
15 (b) If a new appraisal is ordered under subsection (a), the new
16 appraisal may not affect any possession rights obtained under
17 IC 32-24-1-10.
18 (c) If a new appraisal is ordered under subsection (a), any party
19 to the action may file exceptions to the new appraisal with the
20 court not later than forty-five (45) days after the appraisal report
21 is mailed.
22 Sec. 5. The following apply to the removal of an outdoor
23 advertising sign:
24 (1) The removal of an outdoor advertising sign by the outdoor
25 advertising sign's owner to allow for construction may not be
26 considered a waiver of the owner's rights under this chapter.
27 (2) An outdoor advertising sign must be removed by the
28 owner once the amount of damages assessed in the appraisal
29 is deposited with the court pursuant to IC 32-24-1-10.
30 (3) If the outdoor advertising sign is removed by the owner,
31 the owner is responsible for the cost of the removal, subject to
32 assistance provided under the Uniform Relocation Assistance
33 and Real Property Acquisition Policies Act of 1970 (42 U.S.C.
34 4601-4655).
35 (4) If an outdoor advertising sign is removed by the
36 condemnor, the condemnor is responsible for the cost of the
37 removal.
38 Sec. 6. The department may adopt emergency rules under
39 IC 4-22-2 to implement this chapter. A rule adopted under this
40 section expires only with the adoption of a new superseding rule.
41 SECTION 5. IC 36-1-28-2 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
EH 1262—LS 7030/DI 137 6
1 1, 2022]: Sec. 2. (a) This section applies only to a county having a
2 consolidated city.
3 (b) As used in this section, "board" refers to the:
4 (1) board of directors of an agricultural fair society,
5 association, or corporation that is organized under
6 IC 15-14-5; or
7 (2) county legislative body;
8 that owns a county fairgrounds or, by agreement with the owner,
9 operates the county fairgrounds and is the owner's authorized
10 agent in the placement of a digital billboard under this chapter.
11 (c) As used in this section, "property" means the real property
12 that is part of a county fairgrounds.
13 (d) Notwithstanding any ordinance adopted under IC 36-7-4,
14 but subject to subsection (e), the board may place one (1) digital
15 billboard on the property at a location that is:
16 (1) selected by the board; and
17 (2) outside the public right-of-way.
18 (e) The board is subject to any restriction, approval, or other
19 requirement of IC 8-23-20 that applies to the placement of the
20 digital billboard.
21 (f) The board must provide written notice at least ninety (90)
22 days before installation of the billboard to the following:
23 (1) The plan commission, if the property is within the
24 jurisdiction of a plan commission.
25 (2) The legislative body of:
26 (A) any municipality in which the property is located; and
27 (B) the county in which the property is located, in the case
28 of a board described in subsection (b)(1).
29 (g) The board must conduct a public hearing in which the board
30 receives public comment regarding the digital billboard not earlier
31 than ninety (90) days before the digital billboard is installed.
32 (h) The owner of the property shall receive any revenue from a
33 lease of the property to the digital billboard's owner for the
34 placement of the digital billboard on the property.
EH 1262—LS 7030/DI 137 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Commerce, Small Business and
Economic Development, to which was referred House Bill 1262, has
had the same under consideration and begs leave to report the same
back to the House with the recommendation that said bill be amended
as follows:
Page 2, line 9, after "taking" insert "of a real property interest,
including the sign structure,".
and when so amended that said bill do pass.
(Reference is to HB 1262 as introduced.)
MORRIS
Committee Vote: yeas 12, nays 0.
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Judiciary, to which
was referred House Bill No. 1262, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
(Reference is to HB 1262 as printed January 20, 2022.)
BROWN L, Chairperson
Committee Vote: Yeas 8, Nays 0
_____
SENATE MOTION
Madam President: I move that Engrossed House Bill 1262 be
amended to read as follows:
Page 1, line 4, delete "five hundred (500) feet of" and insert "the
same county as".
Page 1, line 6, strike "a conforming" and insert "an".
Page 1, line 10, strike "a conforming" and insert "an".
Page 1, line 17, strike "the" and insert "a conforming".
Page 2, line 1, strike "the" and insert "a conforming or
EH 1262—LS 7030/DI 137 8
nonconforming".
Page 2, line 1, strike "five" and insert "the market area, if the new
location of".
Page 2, line 2, strike "hundred (500) feet of its prior location, if".
Page 2, line 6, delete "Notwithstanding", begin a new paragraph and
insert:
"(d) If within one (1) year of an action being filed under
IC 32-24, an owner can demonstrate that the owner has made good
faith efforts to relocate a conforming or nonconforming outdoor
advertising sign to a conforming location within the market area,
but the owner has not obtained a new conforming location, the
outdoor advertising sign will be treated as if it cannot be relocated
within the market area. Notwithstanding subsection (e) and
IC 8-23-20.5, if an outdoor advertising sign cannot be elevated or
relocated to a conforming location and elevation within the market
area, the removal or relocation of the outdoor advertising sign
constitutes a taking of a property interest and the owner must be
compensated under section 27 of this chapter. Notwithstanding".
Page 2, line 12, delete "(d)" and insert "(e)".
Page 2, line 12, strike "Subject to subsection".
Page 2, line 12, delete "(g),".
Page 2, line 12, delete "the" and insert "The".
Page 2, line 16, delete "(e)" and insert "(f)".
Page 2, line 17, strike "relocated shall be the same size as the
previous outdoor" and insert "relocated,".
Page 2, line 18, strike "advertising sign and,".
Page 2, line 19, after "modified" insert ":".
Page 2, line 19, strike "to:".
Page 2, line 20, before "elevate" insert "to".
Page 2, line 21, strike "and".
Page 2, line 22, before "an" insert "to".
Page 2, line 23, after "visible" delete "." and insert "; and".
Page 2, between lines 23 and 24, begin a new line block indented
and insert:
"(3) in size or material type, at the expense of:
(A) the owner, if the modification in size or material type
of the outdoor advertising sign is by choice of the owner;
or
(B) the department, if the modification in size or material
type of the outdoor advertising sign is required for the
outdoor advertising sign to comply with IC 22-13.".
Page 2, line 24, delete "(f)" and insert "(g)".
EH 1262—LS 7030/DI 137 9
Page 2, line 27, delete "(g)".
Page 2, line 27, strike "If the county or municipality does not amend
its zoning".
Page 2, strike line 28.
Page 2, line 29, strike "ordinance under subsection".
Page 2, line 29, delete "(d),".
Page 2, line 29, strike "notwithstanding IC 8-23-20-10, the".
Page 2, strike lines 30 through 31.
Page 2, between lines 31 and 32, begin a new paragraph and insert:
"(h) At least twelve (12) months before the filing of an eminent
domain action to acquire an outdoor advertising sign under
IC 32-24, the department must provide written notice to the
representative of the sign owner identified on the outdoor
advertising sign permit that is on file with the Indiana department
of transportation that a project has been planned that may impact
the outdoor advertising sign.
(i) If the agency fails to provide notice required by subsection
(h) within twelve (12) months of an action being filed against an
owner under IC 32-24, the owner may receive reasonable
compensation for losses associated with the failure to receive
timely notice. However, failure to send notice required by
subsection (h) is not a basis of an objection to a proceeding under
IC 32-24-1-8.
SECTION 2. IC 8-23-20-25.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 25.7. The department may adopt
emergency rules under IC 4-22-2 to implement this chapter. A rule
adopted under this section expires only with the adoption of a new
superseding rule.".
Page 3, line 12, delete "to:" and insert "to the fair market value of
the interests associated with the outdoor advertising sign,
including, but not limited to, leasehold interests and access rights.".
Page 3, delete lines 13 through 16.
Page 3, line 17, delete "under" and insert "by considering all
valuation approaches based upon the standards governing
recognized valuation approaches to fair market value.".
Page 3, delete lines 18 through 21, begin a new paragraph and
insert:
"SECTION 4. IC 8-23-20.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]:
Chapter 20.5. Relocation of Conforming Billboards
EH 1262—LS 7030/DI 137 10
Sec. 1. This chapter applies to an outdoor advertising sign that
is eligible to be relocated as a conforming sign under
IC 8-23-20-25.6(c) and IC 8-23-20-25.7.
Sec. 2. As used in this chapter, "market area" has the meaning
set forth in IC 8-23-20-25.6(a).
Sec. 3. (a) If a county or municipality either:
(1) subject to IC 8-23-20-10, does not amend its zoning
ordinance as necessary to provide for a special exception to
the zoning ordinance for the relocation of an outdoor
advertising sign; or
(2) does not approve a variance to the zoning ordinance filed
by the outdoor advertising sign's owner that conforms to the
filing requirements;
the county or municipality is responsible for the payment of full
and just compensation for the outdoor advertising sign under
IC 8-23-20-27, including any costs and fees associated with a
variance application, if applicable, to the outdoor advertising sign's
owner.
(b) A county or municipality's consideration of a special
exception or variance may not be a basis to delay the appointment
of appraisers under IC 32-24-1-9.
(c) If a county or municipality has not approved the relocation
of an outdoor advertising sign located within its jurisdiction before
the date an action under IC 32-24 is filed, the county or
municipality must be named as a party to the action.
Sec. 4. (a) If an outdoor advertising sign cannot be relocated
within the market area, a court presiding over an action under
IC 32-24 shall order, subject to IC 32-24-1-9:
(1) if an appraisal has not already been submitted to the court,
an appraisal; or
(2) if an appraisal has already been submitted to the court, a
new appraisal;
with instructions to the appraisers that the outdoor advertising
sign is not capable of relocation and must be appraised using the
method described in IC 8-23-20-27.
(b) If a new appraisal is ordered under subsection (a), the new
appraisal may not affect any possession rights obtained under
IC 32-24-1-10.
(c) If a new appraisal is ordered under subsection (a), any party
to the action may file exceptions to the new appraisal with the
court not later than forty-five (45) days after the appraisal report
is mailed.
EH 1262—LS 7030/DI 137 11
Sec. 5. The following apply to the removal of an outdoor
advertising sign:
(1) The removal of an outdoor advertising sign by the outdoor
advertising sign's owner to allow for construction may not be
considered a waiver of the owner's rights under this chapter.
(2) An outdoor advertising sign must be removed by the
owner once the amount of damages assessed in the appraisal
is deposited with the court pursuant to IC 32-24-1-10.
(3) If the outdoor advertising sign is removed by the owner,
the owner is responsible for the cost of the removal, subject to
assistance provided under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (42 U.S.C.
4601-4655).
(4) If an outdoor advertising sign is removed by the
condemnor, the condemnor is responsible for the cost of the
removal.
Sec. 6. The department may adopt emergency rules under
IC 4-22-2 to implement this chapter. A rule adopted under this
section expires only with the adoption of a new superseding rule.".
Renumber all SECTIONS consecutively.
(Reference is to EHB 1262 as printed February 25, 2022.)
CRIDER
_____
SENATE MOTION
Madam President: I move that Engrossed House Bill 1262 be
amended to read as follows:
Page 3, after line 21, begin a new paragraph and insert:
"SECTION 3. IC 36-1-28-2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 2. (a) This section applies only to a county having a
consolidated city.
(b) As used in this section, "board" refers to the:
(1) board of directors of an agricultural fair society,
association, or corporation that is organized under
IC 15-14-5; or
(2) county legislative body;
that owns a county fairgrounds or, by agreement with the owner,
operates the county fairgrounds and is the owner's authorized
agent in the placement of a digital billboard under this chapter.
EH 1262—LS 7030/DI 137 12
(c) As used in this section, "property" means the real property
that is part of a county fairgrounds.
(d) Notwithstanding any ordinance adopted under IC 36-7-4,
but subject to subsection (e), the board may place one (1) digital
billboard on the property at a location that is:
(1) selected by the board; and
(2) outside the public right-of-way.
(e) The board is subject to any restriction, approval, or other
requirement of IC 8-23-20 that applies to the placement of the
digital billboard.
(f) The board must provide written notice at least ninety (90)
days before installation of the billboard to the following:
(1) The plan commission, if the property is within the
jurisdiction of a plan commission.
(2) The legislative body of:
(A) any municipality in which the property is located; and
(B) the county in which the property is located, in the case
of a board described in subsection (b)(1).
(g) The board must conduct a public hearing in which the board
receives public comment regarding the digital billboard not earlier
than ninety (90) days before the digital billboard is installed.
(h) The owner of the property shall receive any revenue from a
lease of the property to the digital billboard's owner for the
placement of the digital billboard on the property.".
(Reference is to EHB 1262 as printed February 25, 2022.)
FREEMAN
EH 1262—LS 7030/DI 137