AB 2023 Summary

• Requires property owners claiming compensation for loss of goodwill in eminent domain cases to prove that goodwill existed in the business before the property was taken.

• Changes the evidentiary threshold from "credible evidence" to "evidence tending to show" that goodwill existed before the taking, allowing other elements of the claim to be presented to the trier of fact.

• Maintains existing requirements that owners must prove the loss was caused by the taking, could not be prevented by relocation or reasonable business practices, and is not duplicated in other compensation.

• Specifies that goodwill consists of business benefits resulting from location, reputation, and circumstances that retain old customers or acquire new ones.

• Clarifies that in leaseback agreements between public entities and property owners, no new goodwill accrues during the lease period and goodwill liability is established at the time of property acquisition.