Read the full stored bill text
PRINTER'S NO. 1724
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1464
Session of
2025
INTRODUCED BY PROBST, HILL-EVANS, PIELLI, GIRAL, BOROWSKI,
WARREN AND CEPEDA-FREYTIZ, MAY 14, 2025
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 14, 2025
AN ACT
Amending Title 26 (Eminent Domain) of the Pennsylvania
Consolidated Statutes, in general provisions, further
providing for definitions; in procedure to condemn, providing
for advanced notice to condemnee, further providing for
notice to condemnee and for preliminary objections and
providing for determination of last resort; in procedure for
determining damages, further providing for liens and
distribution of damages; in just compensation and measure of
damages, further providing for measure of damages and
providing for compensation for loss of goodwill of business
or farm operation; and, in evidence, providing for proof of
continuous ownership.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "comparable replacement
dwelling" in section 103 of Title 26 of the Pennsylvania
Consolidated Statutes is amended and the section is amended by
adding definitions to read:
§ 103. Definitions.
Subject to additional definitions contained in subsequent
provisions of this title which are applicable to specific
provisions of this title, the following words and phrases when
used in this title shall have the meanings given to them in this
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
section unless the context clearly indicates otherwise:
* * *
"Comparable replacement dwelling." A dwelling that is:
(1) Decent, safe and sanitary.
(2) Adequate in size to accommodate the occupants.
(3) Within the financial means of the displaced person.
(4) Functionally equivalent.
(5) In an area not subject to unreasonable adverse
environmental conditions.
(6) In a location generally not less desirable than the
location of the displaced person's dwelling with respect to
public utilities, facilities, services and the displaced
person's place of employment.
(7) Within the same school district as the condemned
dwelling if any of the occupants in the condemned dwelling is
a child that, at the time of condemnation, attends a school
within the school district in which the condemned dwelling is
located.
* * *
"Continuous ownership." A continuous and unbroken chain of
ownership of a property by a condemnee and the family of the
condemnee as provided under section 1107 (relating to proof of
continuous ownership).
* * *
"Marginalized community." A group of people who experience
social, economic or political exclusion or discrimination based
on characteristics such as race, ethnicity, gender, sexual
orientation, socioeconomic status, disability or religion.
* * *
"Replacement value." A valuation completed by an impartial
20250HB1464PN1724 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
expert appraiser that is calculated as the summation of the
following:
(1) The fair market value of the land as if the land was
vacant.
(2) The cost of replacing or duplicating existing
structures on the land, including machinery, equipment or
fixtures, adjusting for depreciation.
* * *
Section 2. Title 26 is amended by adding a section to read:
§ 304.1. Advanced notice to condemnee.
(a) Written advanced notice.--Within 30 days prior to the
filing of a declaration of taking, the acquiring agency shall
provide written notice to a proposed condemnee, mortgagee of
record and lienholder of record.
(b) Service.--The advanced notice shall be served in the
same manner as required for the notice under section 305(b)
(relating to notice to condemnee).
(c) Contents.--The advanced notice shall include:
(1) The name of the proposed condemnee to whom the
proposed condemnation is directed.
(2) A statement that the acquiring agency intends to
file a declaration of taking for the acquisition of the
proposed condemnee's property no less than 30 days from the
date of the advanced notice.
(3) The name, address and contact information, including
a telephone number and email address, at which a
representative of the acquiring agency can be reached.
(4) A statement that the proposed condemnee's property
or portion of the property may be condemned for the purposes
of the acquiring agency's program or project.
20250HB1464PN1724 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) A brief description of the purpose of the proposed
condemnation, including the acquiring agency's proposed
project.
(6) A brief description of the condemnation process in
this Commonwealth, including all of the following:
(i) What eminent domain is.
(ii) The rights of a condemnee under law, including
the right to hire a lawyer to help guide the condemnee
through the condemnation process.
(iii) How just compensation is determined and made
or secured under the laws of this Commonwealth.
(iv) That the use of eminent domain is of last
resort.
(v) The next steps the acquiring agency will take if
the proposed condemnee's property is subject to a
declaration of taking.
(vi) The process by which the proposed condemnee may
challenge the power or the right of the acquiring agency
to appropriate the condemned property, the sufficiency of
the security, whether the use of eminent domain is of
last resort , the procedure followed by the acquiring
agency or the declaration of taking.
(d) Proof of service and compliance.--Filing of a copy of
the advanced notice and proof of service of the advanced notice,
together with the filing of the declaration of taking and
security as required under sections 302 (relating to declaration
of taking) and 303 (relating to security required), shall
constitute compliance with the notice requirements of this
section.
(e) Publication.--Within 24 hours of issuing advanced notice
20250HB1464PN1724 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to a proposed condemnee under subsection (a), an acquiring
agency shall post the advanced notice on the acquiring agency's
publicly accessible Internet website, if available, and at the
acquiring agency's principal office location.
Section 3. Section 305(c)(13) of Title 26 is amended and the
subsection is amended by adding a paragraph to read:
§ 305. Notice to condemnee.
* * *
(c) Contents.--The notice to be given the condemnee shall
state:
* * *
(12.1) A statement that the use of eminent domain is of
last resort.
(13) A statement that, if the condemnee wishes to
challenge the power or the right of the condemnor to
appropriate the condemned property, the sufficiency of the
security, whether the use of eminent domain is of last
resort , the procedure followed by the condemnor or the
declaration of taking, the condemnee must file preliminary
objections within 30 days after being served with notice of
condemnation.
* * *
Section 4. Section 306(a)(3) of Title 26 is amended by
adding a subparagraph and subsection (f) is amended by adding a
paragraph to read:
§ 306. Preliminary objections.
(a) Filing and exclusive method of challenging certain
matters.--
* * *
(3) Preliminary objections shall be limited to and shall
20250HB1464PN1724 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
be the exclusive method of challenging:
* * *
(iii.1) Whether the use of eminent domain is of last
resort.
* * *
(f) Disposition.--
* * *
(4) For a preliminary objection under subsection
(a)(3)(iii.1), the court shall make a determination of last
resort in accordance with section 306.1 (relating to
determination of last resort).
* * *
Section 5. Title 26 is amended by adding a section to read:
§ 306.1. Determination of last resort.
(a) Blighted properties excluded.--A blighted property shall
not be subject to the requirements of this section.
(b) Condemnor requirement.--If a condemnee files a
preliminary objection under section 306(a)(3)(iii.1) (relating
to preliminary objections), the condemnor shall submit the
following to the court within 30 days of filing of the
preliminary objection:
(1) The alternatives that were considered, including:
(i) Alternatives that did not involve the use of
eminent domain for the program or project.
(ii) Alternatives that involve the use of eminent
domain but condemn fewer properties.
(iii) Alternatives that involve the use of eminent
domain but would not disproportionately affect a
marginalized community.
(2) A statement outlining why the specified exercise of
20250HB1464PN1724 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the power of eminent domain to take private property is the
only feasible option among the alte rnatives. The statement
shall include the following:
(i) Evidence that the condemnor fully considered if
the benefits of the program or project outweigh the
negative impacts of the exercise of the power of eminent
domain to take private property on the surrounding
community.
(ii) Evidence that the exercise of the power of
eminent domain to take private property would not
exacerbate existing inequities in the surrounding
community.
(3) Evidence that a comparable replacement dwelling is
available to the condemnee.
(c) Determination of last resort.--
(1) Within 30 days after the condemnor submits the
content under subsection (b) to the court, the court shall
determine whether the condemnor sufficiently demonstrates
that the exercise of the power of eminent domain to take
private property is the last resort. The court shall grant
determination of last resort if any of the following is
satisfied:
(i) The condemnor demonstrates the condemnor fully
considered if the benefits of the program or project
outweigh the negative impacts of the exercise of the
power of eminent domain to take private property on the
surrounding community.
(ii) The condemnor demonstrates the exercise of the
power of eminent domain to take private property would
not disproportionately affect a marginalized community.
20250HB1464PN1724 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iii) The condemnor demonstrates that the exercise
of the power of eminent domain to take private property
outlined in the declaration of taking is the only
feasible option among the alternatives considered.
(iv) The condemnor demonstrates that a comparable
replacement dwelling is available to the condemnee.
(2) The court shall make the determination of last
resort by considering the content provided by the condemnor
under subsection (b).
(3) If the court determines that the exercise of the
power of eminent domain to take private property is the last
resort, the use of eminent domain may proceed.
(4) If the court determines that the exercise of the
power of eminent domain is not the last resort, the court
shall provide a statement to the condemnor outlining why the
determination was not granted and provide the condemnor 45
days to remedy the insufficiency.
Section 6. Section 521(a)(1) of Title 26 is amended to read:
§ 521. Liens and distribution of damages.
(a) Liens.--
(1) Damages payable to a condemnee under sections 701
(relating to just compensation; other damages) through 707
(relating to removal of machinery, equipment or fixtures),
713 (relating to delay compensation), 714 (relating to
consequential damages), 715 (relating to damages for vacation
of roads) and 902(b)(1) and (2) (relating to moving and
related expenses of displaced persons) shall be subject to a
lien for all taxes and municipal claims assessed against the
property and to all mortgages, judgments and other liens of
record against the property for which the particular damages
20250HB1464PN1724 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
are payable, existing at the date of the [filing of the
declaration of taking.] written advanced notice as provided
under section 304.1 (relating to advanced notice to
condemnee).
* * *
Section 7. Section 702(a) of Title 26 is amended and the
section is amended by adding subsections to read:
§ 702. Measure of damages.
(a) Just compensation.--
(1) Just compensation shall [consist of] be the higher
of the following:
(i) the difference between the fair market value of
the condemnee's entire property interest immediately
before the condemnation and as unaffected by the
condemnation and the fair market value of the property
interest remaining immediately after the condemnation and
as affected by the condemnation[.]; and
(ii) the replacement value of the condemnee's
property interest.
(2) The just compensation under paragraph (1)(ii) shall
not exceed 200% of the value of paragraph (1)(i).
* * *
(d) Augmentation of just compensation.--If a condemnee
provides the acquiring agency or court evidence showing proof of
continuous ownership as provided under section 1107 (relating to
proof of continuous ownership), the amount awarded under
subsection (a) shall be augmented by an additional 1% for each
year of continuous ownership. The amount of augmentation shall
be no greater than 15% of the amount awarded under subsection
(a).
20250HB1464PN1724 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(e) Blighted property.--If a condemned property is a
blighted property, the just compensation for the blighted
property shall be the difference between the fair market value
of the condemnee's entire property interest immediately before
the condemnation and as unaffected by the condemnation and the
fair market value of the property interest remaining immediately
after the condemnation and as affected by the condemnation. The
blighted property shall not be eligible for augmentation of just
compensation as provided in subsection (d).
Section 8. Title 26 is amended by adding sections to read:
§ 717. Compensation for loss of goodwill of business or farm
operation.
(a) Compensation .--The owner of a business or farm operation
conducted on the property taken under this title 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 .
(2) Compensation for the loss will not be duplicated in
the compensation otherwise awarded to the owner.
(3) Both the acquiring agency and the owner did not
enter into negotiations to acquire the property before filing
a declaration of taking.
(b) Rebuttal of compensation.--The acquiring agency may
rebut the compensation provided under subsection (a) if the
acquiring agency proves that the loss could have reasonably been
prevented by a relocation of the business or farm operation or
by taking steps and adopting procedures that a reasonably
prudent person would take or adopt in preserving the goodwill.
(c) Leaseback agreement.--If the acquiring agency and the
owner of a business or farm operation enter into a leaseback
20250HB1464PN1724 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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 or farm operation and the
acquiring agency do not agree on the value of goodwill, the
owner shall make available to the board of viewers or court,
and the board of viewers or court shall, upon terms and
conditions that will preserve confidentiality, make available
to the acquiring agency, the State tax returns of the
business or farm operation. The acquiring agency shall review
the State tax returns solely for the purpose of determining
the amount of compensation under this section.
(2) Nothing in this section shall be construed to affect
any right a party may otherwise have to discovery or to
require the production of documents, papers, books and
accounts.
(e) Blighted property.--A blighted property shall not be
eligible for compensation for loss of goodwill in accordance
with this section.
(f) 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 or farm
operation as a result of its location, cultural heritage value
20250HB1464PN1724 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to the community, reputation for dependability, skill or quality
and any other circumstance resulting in probable retention of
old or acquisition of new patronage.
§ 1107. Proof of continuous ownership.
(a) Eligibility.--A condemnee shall be eligible for
augmentation of just compensation as provided under section
702(d) (relating to measure of damages) if the condemnee
provides evidence to the acquiring agency or court showing proof
of continuous ownership.
(b) Establishing continuous ownership.--Proof of continuous
ownership of a property may be established through evidence of
ownership of the property by the condemnee and the family of the
condemnee, which shall include siblings, parents, grandparents,
aunts or uncles of the condemnee or the spouse of the condemnee.
(c) Burden of proof.--The condemnee shall have the burden of
providing continuous ownership to the acquiring agency or court.
Section 9. This act shall apply retroactively to a
declaration of taking filed on or after January 1, 2024.
Section 10. This act shall take effect immediately.
20250HB1464PN1724 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19