Introduction
On March 14, 2025, Pennsylvania introduced Senate Bill 225 (SB 225), a significant legislative proposal aimed at amending Title 26 (Eminent Domain) of the Pennsylvania Consolidated Statutes. This bill focuses on enhancing the compensation framework for property owners affected by eminent domain actions, specifically addressing the often-overlooked aspect of “loss of goodwill.”
Key Provisions
SB 225 proposes critical changes to the existing eminent domain laws by ensuring that property owners receive just compensation not only for the physical property taken but also for the intangible losses incurred. The primary focus of the bill is to provide compensation for the loss of goodwill, which refers to the value of a business’s reputation, customer relationships, and other non-physical assets that contribute to its profitability. The full bill can be viewed here.
Impact on Property Owners
The inclusion of goodwill compensation marks a significant shift in how eminent domain cases are handled in Pennsylvania. Traditionally, compensation has been limited to the market value of the physical property. However, businesses often suffer substantial losses beyond the mere physical assets when their property is taken. By recognizing and compensating for these intangible losses, SB 225 aims to provide a more comprehensive and fair compensation package to affected property owners.
Legislative Journey
SB 225 was introduced by Senator Cris Dush, with co-sponsorship from Senators Greg Rothman and Scott Hutchinson, all Republicans. The bill has been referred to the Senate State Government Committee for further consideration. As it progresses through the legislative process, it will be crucial to monitor any amendments or debates that may arise, as these could impact the final scope and implementation of the bill. Now would be a good time to call your state senator to express your support for the bill and encourage its passing.
Conclusion
Pennsylvania Senate Bill 225 represents a progressive step towards ensuring fair compensation for property owners affected by eminent domain. By addressing the loss of goodwill, the bill acknowledges the broader impacts of property takings and seeks to provide a more equitable solution. Property owners, legal professionals, and stakeholders should stay informed about the bill’s progress and potential implications for future eminent domain cases in Pennsylvania.
