BILL NUMBER: AB 374	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wagner

                        FEBRUARY 14, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 374, as introduced, Wagner. Eminent domain: compensation: loss
of goodwill.
   Existing law requires the governing body of a public entity to
adopt a resolution of necessity, as specified, and send related
notices before commencing an eminent domain proceeding. Existing law
provides that an owner of property taken by eminent domain is
entitled to compensation and imposes certain requirements on the
owner in order to be compensated for loss of goodwill, as described.
   This bill would further require the owner of a business to prove
that there is sufficient evidence to permit the trier of fact to find
that goodwill existed prior to the taking of the property.
   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) 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:
   (1) The loss is caused by the taking of the property or the injury
to the remainder.
   (2) 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.
   (3) Compensation for the loss will not be included in payments
under Section 7262 of the Government Code.
   (4) Compensation for the loss will not be duplicated in the
compensation otherwise awarded to the owner. 
   (5) There is sufficient evidence to permit the trier of fact to
find that goodwill existed prior to the taking of the property. 

   (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.