AN ACT to require monetary compensation to owners of on‑premises advertisements for the replacement or upgrade of nonconforming signs due to a change in local government regulations.

The General Assembly of North Carolina enacts:

SECTION 1.  Part 1 of Article 9 of Chapter 160D of the General Statutes is amended by adding a new section to read:

§ 160D‑912.1.  On‑premises advertisements.

(a)        As used in this section, the following definitions apply:

(1)        Nonconforming sign. – An on‑premises advertisement that was lawfully installed but which does not comply with current ordinances or regulations.

(2)        On‑premises advertisement. – A sign identifying or advertising a business, person, activity, goods, products, or services located on the premises where the sign is installed and maintained.

(b)        A local government may not enact or amend an ordinance of general applicability to require the owner of a nonconforming sign to bring the sign into compliance with current regulations without doing one of the following:

(1)        Paying monetary compensation to the owner of the nonconforming sign. Upon payment of monetary compensation for the sign, the local government shall own the sign and remove it at a time mutually agreed upon by the owner of the sign and the local government.

(2)        Reimburse the owner an amount equal to the difference of the fair market value of the nonconforming sign and the reasonable cost to bring the sign into compliance. Upon being reimbursed, the owner of the nonconforming sign shall bring the sign into compliance with the current regulations in a timely manner.

(c)        Monetary compensation is the fair market value of the nonconforming sign in place immediately prior to its removal and without consideration of the effect of the ordinance or any diminution in value caused by the ordinance requiring its removal. Monetary compensation shall be determined using the factors listed in G.S. 105‑317.1(a).

(d)       Monetary compensation or reimbursement is not required under this section for any of the following:

(1)        The local government and the owner of the nonconforming sign enter into a voluntary agreement allowing for the removal of the sign after a set period of time in lieu of monetary compensation. A local government may adopt an ordinance or resolution providing for a relocation, reconstruction, or removal agreement.

(2)        The nonconforming sign is determined to be a public nuisance or detrimental to the health or safety of the populace.

(3)        The removal of the nonconforming sign is required for opening, widening, extending, or improving streets or sidewalks, or for establishing, extending, enlarging, or improving any of the public enterprises listed in G.S. 160A‑311, and the local government allows the nonconforming sign to be relocated to a comparable location.

(4)        The nonconforming sign is subject to removal pursuant to statutes, ordinances, or regulations generally applicable to the demolition or removal of damaged structures.

(e)        If the local government and the owner of the nonconforming sign are unable to agree on the monetary compensation or reimbursement, then the local government may bring an action in superior court for a determination of the monetary compensation or reimbursement to be paid. In determining monetary compensation, the court shall consider the factors set forth in subsection (c) of this section.

(f)        The provisions of this section shall not be used to interpret, construe, alter, or otherwise modify the exercise of the power of eminent domain by an entity pursuant to Chapter 40A of the General Statutes.

SECTION 2.  This act is effective when it becomes law.