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Supreme Court Again Addresses Municipal Sign Regulations
In the October 2015 issue of New York Real Estate Law Reporter, we discussed the decision of the U.S. Supreme Court in Reed v. The Town of Gilbert, 135 S.Ct. 2218 (2015). In that decision, the Court applied strict scrutiny to a sign regulation, as it related to directional signs placed by a local congregation that held services at different locations each week. In April 2022, the Court took another look at the issue of strict scrutiny relating to "off-premises" signs. In the case of City of Austin, Texas v. Reagan National Advertising of Austin, LLC, No. 20-1029 (2022), in distinguishing the determination in Reed v. The Town of Gilbert, the majority concluded, in an opinion by Justice Sonia Sotomayor, that strict scrutiny should not apply to determining whether the off-premises sign regulations at issue violated the First Amendment.
The City of Austin regulates signs and specifically regulates signs that are not located at the premises they advertise. The sign code of the City prohibits new off premises signs. Any such signs existing at the time of enactment of the restrictions may remain, may change their message (the face) but may not be changed in any way that increases their nonconformity. It was these provisions which gave rise to the dispute, when Reagan National Advertising sought to digitize off premises signs. There are no similar restrictions on signs that advertise activities located on the premises where the signs are located.
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