Navigating the Legal Landscape of Signage

Legislation and regulations continue to shape the sign and graphics industry. Perhaps the most critical piece of legislation from the past year, says Stephanie Buka, government affairs coordinator at PRINTING United Alliance, was the City of Austin, Texas v. Reagan National Advertising of Austin case, which went to the Supreme Court.

The Court ruled in favor of the city by a vote of 6-3, and Buka notes, “In its decision, the Court recognized that the on-premises/off-premises distinction has worked for decades, and it is location-based and content-neutral. This decision was a ‘win’ for the printing industry. Had the Court ruled to eliminate the traditional on/off distinction, the result would have been incredibly disruptive, as thousands of local sign ordinances across the country would have been considered unconstitutional. Fortunately, the Court’s decision affirms that states and local jurisdictions can use the traditional regulatory distinction between on-premises and off-premises signs.”

In doing so, she notes, the case was sent back to the U.S. Court of Appeals for the Fifth Circuit, overturning its original ruling. As of this writing, she notes that nothing has been added to the Fifth Circuit’s calendar to consider the case again, but she says, “Eventually, they will review it in light of the SCOTUS decision.” So, while that was a victory for the print industry, it is something to continue to pay attention to since it could still cause issues for sign printers in the future, depending on how the lower courts interpret and apply that decision.

David Hickey, vice president, advocacy, for the International Sign Association (ISA), has a few pieces of legislation and regulations that he felt had the most impact in the past 12 months. He notes, “ISA and the Society for Experiential Graphic Design (SEGD) helped defeat several proposals, including one that would have changed the standards for contrasting visual characters on ADA/accessible signs. These were proposed for adoption into the 2025 A117.1 standard for accessible buildings. The proposal required sign manufacturers to verify and attest to the sign materials’ light reflectance value (LRV). It is difficult, if not impossible, to accurately measure LRV and retain adequate documentation for signs using natural materials (woodgrain, stone, brick) or for custom CMYK printed inks.”

He continues, “We also defeated an effort in 2023 to enact very restrictive sign lighting levels in California’s energy code (Title 24). If California had enacted these restrictive sign lighting levels and local jurisdictions in the state started adopting them, it would have made many signs less visible at night, including billboards, supergraphics, and other kinds of illuminated printed on-premise signs.”

With that focus on the more local laws and regulations, Hickey notes that ISA helped 36 communities across the United States improve their sign codes in 2023 and worked with 42 member companies to overcome permitting and licensing challenges or technical issues. While the significant cases that make national news can have an impact on everyone in the print industry, it is a good reminder that local regulations and laws can have just as much of an effect on print businesses, so staying on top of what your local town, city, county, and state are doing on this front — and then tapping into resources such as those offered by ISA and PRINTING United Alliance — will help ensure no surprises crop up along the way that could put your business in jeopardy.

Change Never Stops

Of course, those were just a few of the issues addressed last year. However, as we settle into 2024, what is on the agenda for the upcoming federal and state legislatures that bear scrutiny?

Hickey, again, has two in particular that he’s going to keep a close eye on in the coming months. The first, he notes, was brought to their attention when a member company ran into something they hadn’t faced before. “[They were] hanging a relatively small interior printed acrylic graphic,” he says. “An inspector told the sign company they needed to pull a permit. It is virtually unheard of for interior signs to be regulated, aside from structural work or meeting NFPA/UL standards. However, this was new, and it’s an area that we’re watching closely.”

Another issue he plans to watch in 2024 closely surrounds how the federal court system defines a “mural.” He notes, “Many communities consider murals depicting anything relating to a business’s goods or services to be signage, while others consider business murals to be simply art. ISA supports treating murals as art and should not be considered signage under sign code size requirements. But if a federal circuit court rules that murals are signs, we may see a decline in businesses using outside printed murals. We also expect to see continued limitations on temporary signs that include window signs, banners, feather signs, and flags.”

Buka also has a few things she’s planning to follow closely in the coming year, the first being how an October 25, 2023 ruling by the National Labor Relations Board (NLRB) could impact signage installers. She notes, “[the] decision on the joint employer rule means that sign companies that hire installers could be held directly responsible for labor law violations by the subcontractors, and sign companies that serve as subcontractors could find control of their own companies weakened. The NLRB’s decision also threatens sign industry franchises, making franchisors responsible for franchisee employees. Labor union action against the franchisor could also potentially impact franchisees.”

Beyond that, she notes that she is concerned overall with the increasing burden signage companies face when it comes to compliance with the vast number of laws and regulations around the country. This is something the Alliance, she notes, plans to address
in 2024.

“According to the National Association of Manufacturers (NAM), it costs manufacturers $29,100 per employee per year ($50,100 per employee for small manufacturers),” she says. “This means that a small manufacturing firm with 20 employees bears around $1 million in compliance costs. As members of the Manufacturers for Sensible Regulations, the Alliance seeks to have a senior-level advisor designated in the White House to ensure federal regulators are implementing policies that align with President Joe Biden’s promise to promote manufacturing growth in America.”

Finally, Buka notes that another area of concern she is paying attention to in 2024 is the Federal Communications Commission (FCC). They continue to cite businesses over the use of digital signage, which they say is creating problems with commercial and public wireless devices. She notes, “If a digital sign is found to violate equipment authorization rules or to cause interference to the wireless spectrum, the sign’s owner or manufacturer may have to pay a fine. It can no longer be used if the sign cannot be brought into compliance. Other penalties may be included for willful violation of the FCC’s rules or citations.”

Getting Involved

What does all this mean for the average sign and graphics printer? In short, remaining vigilant will remain a crucial part of the business landscape in 2024 and beyond. It’s not enough to have the right equipment, the right team, the right customers, or the right jobs. Owners must also ensure they have the correct legal and regulatory landscape to continue operating profitably and without excess hurdles to clear, coming from out of nowhere.

To do that, the first step is to join an organization like PRINTING United Alliance or ISA, which has teams dedicated to following the legal and regulatory landscape and advocating on behalf of the industry in various ways.

It might be tempting to assume your local, state, or federal elected officials won’t care. So it would be a waste of time to put yourself in front of them, but Buka notes, “One misconception would be that signs and graphics are not top of mind for elected officials. Why would they care about my business? But any candidate seeking election or re-election to an office cares a lot about signs and graphics, i.e., political campaign mail, signs, and banners.”

Hickey echoes that sentiment, noting that it’s not even true anymore that a shop specializing in indoor signage should assume the issues around laws and regulations won’t apply to them as the landscape changes. “We’re starting to see regulation as a potential impact on interior signs. It is important for our industry to respond with one voice and for all sign, graphics, visual communications, and print companies to support each other. We have a powerful story to tell about how signs of all types help businesses succeed — and we need to help each other out when it comes to codes and regulations.”

He continues, “That may mean that a print company needs to show up when their community discusses sign regulations and advocate for the industry. It also means sharing with business owners, building owners, and general contractors to get them on board. … Printers should get plugged into any online alerts, news, meeting announcements, or otherwise keep their ear to the ground to stay on top of regulatory developments affecting our industry and for the opportunity to be meaningfully engaged in the process before a version is even drafted and circulated for review.”

Once a shop hears about new laws or regulations that could impact the sign and graphics business, they should speak out— and reach out to other companies in the area and tap into those association resources when needed.

It’s also about spreading the message about print to elected officials and making them understand the
power of print. Buka asks, “All signage printers know how professionally designed, sized, and placed on-premise signage significantly contributes to federal, state, and local economic activity. But how can we spread this message?”

She points to one recent development announced at the end of 2023 — the 118th Congressional Printing Caucus — that at least provides the industry with “friends on Capitol Hill,” providing a way to start to bridge that gap between the perceptions of print and what the industry truly provides. But, she notes, individual printers also have a role to play.

“One way signage printers can get involved is to host a facility tour for a federal, state, or local elected official(s). The Alliance provides guidance and assistance to members in planning the tour, and it is a wonderful way to build relationships and promote your business.”

In the end, these are just a few of the broader issues that helped to shape the industry in the past 12 months and a tiny slice of what to expect in 2024. To truly see your business thrive in the coming year — and beyond — it’s imperative not to overlook the impact laws and regulations can have and to make sure your voice is the loudest when it comes to issues that impact your ability to continue to operate profitably.