Bill Text: CA AB2023 | 2013-2014 | Regular Session | Amended

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Bill Title: Eminent domain: compensation: loss of goodwill.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2014-06-24 - In committee: Set, second hearing. Failed passage. [AB2023 Detail]

Download: California-2013-AB2023-Amended.html

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BILL NUMBER: AB 2023	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Assembly Member Wagner

                        FEBRUARY 20, 2014

   An act to amend Section 1263.510 of the Code of Civil Procedure,
relating to eminent domain.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2023, as amended, Wagner. Eminent domain: compensation: loss of
goodwill.
   Existing law provides that an owner of property taken by eminent
domain is entitled to compensation for loss of goodwill if the owner
proves certain specified elements.
   This bill would require than an owner additionally prove that
goodwill existed before the taking. The bill would provide that
evidence of the other elements would be presented to the trier of
fact only if  there is credible evidence that goodwill ex
isted.   the owner produces evidence tending to show
that goodwill existed before the taking. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1263.510 of the Code of Civil Procedure is
amended to read:
   1263.510.  (a) (1) The owner of a business conducted on the
property taken, or on the remainder if the property is part of a
larger parcel, shall be compensated for loss of goodwill if the owner
proves all of the following:
   (A) Goodwill existed in the business before the owner's property
was taken.
   (B) The loss is caused by the taking of the property or the injury
to the remainder.
   (C) The loss cannot reasonably be prevented by a relocation of the
business or by taking steps and adopting procedures that a
reasonably prudent person would take and adopt in preserving the
goodwill.
   (D) Compensation for the loss will not be included in payments
under Section 7262 of the Government Code.
   (E) Compensation for the loss will not be duplicated in the
compensation otherwise awarded to the owner.
   (2)  If there is credible evidence that goodwill existed
before the taking,   If the owner produces evidence
tending to show that goodwill existed before the taking, 
evidence of the matters described in subparagraphs (B) through (E),
inclusive, of paragraph (1) shall be presented to the trier of fact.
   (b) Within the meaning of this article, "goodwill" consists of the
benefits that accrue to a business as a result of its location,
reputation for dependability, skill or quality, and any other
circumstances resulting in probable retention of old or acquisition
of new patronage.
   (c) If the public entity and the owner enter into a leaseback
agreement pursuant to Section 1263.615, the following shall apply:
   (1) No additional goodwill shall accrue during the lease.
   (2) The entering of a leaseback agreement shall not be a factor in
determining goodwill. Any liability for goodwill shall be
established and paid at the time of acquisition of the property by
eminent domain or subsequent to notice that the property may be taken
by eminent domain. 
  SEC. 2.    It is the intent of the Legislature, in
amending subdivision (a) of Section 1263.510 of the Code of Civil
Procedure, to overrule People ex rel. Dept. of Transp. v. Dry Canyon
Enterprises, LLC. (2012) 211 Cal.App.4th 486 to the extent that
decision requires that an owner establish preexisting goodwill by
more than a preponderance of the evidence.