BILL NUMBER: AB 2023	INTRODUCED
	BILL TEXT


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 introduced, 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. If the court determines that it
is more likely than not that goodwill did exist, evidence of the
other elements would be presented to the trier of fact.
   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.  
   (1) 
    (B)  The loss is caused by the taking of the property or
the injury to the remainder. 
   (2) 
    (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. 
   (3) 
    (D)  Compensation for the loss will not be included in
payments under Section 7262 of the Government Code. 
   (4) 
    (E)  Compensation for the loss will not be duplicated in
the compensation otherwise awarded to the owner. 
   (2) The court shall first determine whether the owner has
presented evidence sufficient to establish the matter described in
subparagraph (A). If the court determines that it is more likely than
not that goodwill existed before the taking, evidence of the matters
described in subparagraphs (B) through (F), inclusive, 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.