Pennsylvania SB 225: An Act amending Title 26 (Eminent Domain) of the Pennsylvania Consolidated Statutes, in just compensation and measure of damages, providing for compensation for loss of goodwill.

Bill Text

PRINTER'S NO. 377
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 225
Session of
2025
INTRODUCED BY DUSH, ROTHMAN AND HUTCHINSON, MARCH 14, 2025
REFERRED TO STATE GOVERNMENT, MARCH 14, 2025
AN ACT
Amending Title 26 (Eminent Domain) of the Pennsylvania
Consolidated Statutes, in just compensation and measure of
damages, providing for compensation for loss of goodwill.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 26 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 717. Compensation for loss of goodwill.
(a) Compensation.--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) Compensation for the loss will not be duplicated in
the compensation otherwise awarded to the owner.
(b) Rebuttal of compensation.--The acquiring agency may
rebut the compensation under subsection (a) if the acquiring
agency proves that the loss could have reasonably been prevented
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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.
(c) Leaseback agreement.--If the acquiring agency and the
owner enter into a leaseback agreement, 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 and 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.
(d) Use of State tax returns.--
(1) If the owner of a business and the acquiring agency
do not agree on the value of goodwill, the owner of a
business claiming compensation under this section shall make
available to the board of viewers or court, and the board of
viewers or court shall, upon terms and conditions as will
preserve confidentiality, make available to the acquiring
agency the State tax returns of the business for audit for
confidential use solely for the purpose of determining the
amount of compensation under this section.
(2) Nothing in this section affects any right a party
may otherwise have to discovery or to require the production
of documents, papers, books and accounts.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Goodwill." The benefits that accrue to a business as a
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result of its location, cultural heritage value to the
community, reputation for dependability, skill or quality and
any other circumstances resulting in probable retention of old
or acquisition of new patronage.
Section 2. This act shall apply retroactively to a
declaration of taking filed on or after January 1, 2024.
Section 3. This act shall take effect immediately.
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