(a) Actual direct losses of tangible personal property are allowed in the case of a business, farm, or nonprofit organization when an eligible person who is displaced is entitled to relocate such personal property but elects not to do so. Payments for such losses may only be made after a bona fide effort has been made by the owner to sell the item(s) involved. When the item(s) is sold, payment will be made according to the following standards:

1. (1) If the business, farm, etc. is reestablished, but the personal property is replaced with a comparable item at the new location, payment shall be the lesser of:

   1. (i) the replacement cost less the net proceeds of the sale; or
   2. (ii) the estimated cost of moving the item.

2. (2) If the business, etc. is discontinued, or the item is not replaced in the reestablished business, payment shall be the lessor of:

   1. (i) the depreciated value of the item in place less the net proceeds of the sale; or
   2. (ii) the estimated cost of moving the item.

(b) If a bona fide sale is not effected above because no offer is received for the personalty, the owner shall be entitled to the reasonable expenses of the sale plus the estimated cost of moving the item(s). Payment to the owner for losses for the item involved in this circumstance will not be made unless and until the owner thereof submits a suitable declaration of abandonment of the item(s) invloved. Upon receipt of this abandonment notice, the item(s) become the property of the State, subject to disposal in the most economical manner. If the person makes no attempt to dispose of the property by sale or removal, the owner will not be entitled to payment of any moving expenses, or losses, for the item involved.

1. (1) Under the above conditions, the eligible person shall notify the department at least three months prior to the starting date of the move of his definite intentions toward application for a payment for direct losses of tangible personal property. Upon receipt of this notice, an inventory will be compiled by the department distinguishing the realty and the personalty, and the eligible person will sign this inventory. The department will further obtain estimates on the costs of moving the personal property to the new location. Upon written notification from the department, the eligible person may make arrangements for a public sale, advertising to be accomplished in the most economical manner and with provision for adequate notification through the media appropriate for the sale of the personalty. The sale will be held publicly during reasonable hours and in the presence of representatives of the department.
2. (2) The sale price, if any, and the actual, reasonable costs of advertising costs or related costs in conducting the sale incurred by an auctioneer or sales manager, shall be supported by a copy of the bill of sale or similar documents and by copies of any advertisements, offers to sell, auction records and other data supporting the bona fide nature of the sale are to be presented to the department when making application for payment under this subdivision.

3. (3) The eligible owner of an advertising sign may be reimbursed for actual direct losses when he is entitled to relocate the sign but does not do so; the owner need not attempt to conduct a bona fide sale; the loss will be the lesser of

   1. (i) the depreciated reproduction cost of the sign as determined by the State, or
   2. (ii) the estimated cost of moving the sign.

(c)