Section 370.13 - Moving Payments to Business or Farm(a) General. (1) The owner of a displaced business or farm eligible under Section 370.11(a) is entitled to receive a payment for actual reasonable moving and related expense which include: (A) Actual reasonable expenses in moving his business, farm, or other personal property as provided in subsection (b), below;(B) Actual direct losses of tangible personal property in moving or discontinuing his business or farm, as provided in subsection (c), below;(C) Actual reasonable expenses in searching for a replacement business or farm, as provided in subsection (d), below.(2) In lieu of the payment for actual expenses and losses as specified in subsection (a) (1) (A), (B) and (C) of this Section a displaced business or farm may be eligible for a fixed payment as provided in subsection (e).(b) Actual Reasonable Moving Expenses. (1) The owner of a business or farm may be paid the actual, reasonable cost of a move accomplished by a commercial mover. Where possible, at least two firm bids shall be obtained prior to the move and submitted to the Department for approval. The Department will authorize payment based on the lowest bid.(A) Where appropriate, the Department may give the displaced business a Moving Service Authorization in accordance with the provisions of Section 370.12(b)(1)(B).(2) Self Moves. (A) A business or farm which performs the move on its own account shall prepare a certified inventory of the items of personal property to be moved. When the Department can obtain two acceptable bids or estimates from qualified estimators based on the certified inventory, the owner of the displaced business or farm may be paid an amount equal to the low bid or estimate, without negotiation. When circumstances warrant, the Department may negotiate a lower amount not to exceed the lower of the two acceptable bids or estimates. The amount to be paid shall be agreed upon in writing in advance of the move. Upon completion of the move the owner must certify in his claim for payment that the items listed in the certified inventory were actually relocated. If the Department finds that the items actually relocated differ significantly from the certified inventory, payment of the moving cost shall be adjusted accordingly.(B) If two estimates cannot be obtained, the owner may be paid his actual, reasonable moving costs supported by receipted bills or other evidence of expenses incurred.(C) A qualified employee of the Department, other than the employee who is handling the claim, may make a moving expense finding not to exceed $1,000.00. The amount of such moving expense finding may be paid the owner of the business or farm upon completion of the move without supporting evidence of actual expenses incurred.(3) Alternate Payments. (A) The provisions of subsection (c) of this Section contain the criteria under which reimbursement is based for personal property which is not moved to the new site.(B) When personal property which is used in connection with the business or farm to be moved is of low value and high bulk and the estimated cost of moving would be disproportionate in relation to the value, the Department may negotiate and agree, in writing, with the owner for an amount not to exceed the difference between the cost of replacement of comparable item(s) on the market and the amount which would probably have been received for the item(s) on liquidation.(c) Actual Direct Losses of Tangible Personal Property. Reimbursement for the actual direct losses of tangible personal property is allowed when a person who is displaced from his place of business or farm is entitled to relocate such property in whole or in part but elects not to do so. Payments for actual direct losses may only be made after a bona fide effort has been made by the owner to sell the item involved. When the item is sold the payment will be determined in accordance with subsection (c) (1) or (c) (2) of this Section. If the item cannot be sold the owner will be compensated in accordance with subsection (c) (3) of this Section. The sales prices, if any, and the actual, reasonable costs of advertising and conducting the sale shall be supported by a copy of the bills of sale or similar documents and by copies of any advertisements, offers to sell, auction records, and other documentation supporting the bona fide nature of the sale. (1) If the business or farm is to be reestablished and an item of personal property which is used in connection with the enterprise is not moved but promptly replaced with a comparable item at the new location, the reimbursement shall be the lesser of: (A) The replacement cost of the item not moved minus the net proceeds of the sale; or(B) The estimated cost of moving the item.(2) If the business or farm is being discontinued or the item is not to be replaced in the reestablished enterprise the payment will be the lesser of: (A) The difference between the depreciated value of the item in place and net proceeds of the sale; or(B) The estimated cost of moving the item.(3) If a bona fide sale is not effected under subsection (c) (1) or (c)(2) of this Section because no offer is received for the property, the owner shall be entitled to the reasonable expenses of the sale. The displaced owner shall arrange to have the personalty removed from the premises at no cost by a junk dealer, etc. If this fails the Department shall remove the item in the most economical manner.(4) When personal property is abandoned with no effort made by the displaced owner to dispose of such property by sale or by removal at no cost as specified in the above paragraphs, the owner will not be entitled to moving expenses, or losses, for the items involved.(d) Actual Reasonable Expenses In Searching For a Replacement Business or Farm. (1) The owner of a displaced business or farm may be reimbursed for the actual reasonable expenses in searching for a replacement business, not to exceed $500.00. Such expenses may include transportation expenses, meals, lodging away from home and the reasonable value of time actually spent in search, including the fees of real estate agents or real estate brokers if actually required and paid by the displaced business. (A) Receipted Bills. All expenses claimed except value of time actually spent in search must be supported by receipted bills.(B) Time Spent In Search. Payment for time actually spent in search shall be based on the applicable hourly wage rate for the person conducting the search but may not exceed $10.00 per hour. A certified statement of the time spent in search and hourly wage rate shall accompany the claim.(e) In Lieu of Actual Moving Expenses. In lieu of the payments described in subsections (b), (c), and (d) of this Section, an owner of a discontinued or relocated business or farm is eligible to receive a payment equal to the average annual net earnings of the enterprise except that such payment shall be not less than $2,500.00 nor more than $10,000.00 providing the following requirements are met: (1) Department Shall Determine. In order for the owner of a business or farm to be entitled to this payment, the Department shall determine that:(A) The business or farm cannot be relocated without a substantial loss of its existing patronage. Loss of existing patronage is determined by comparing existing patronage as defined in Section 370.00 of this Article to the estimated net income of the business for the 12 month period after relocation. Such determination shall be made only after consideration of all pertinent circumstances, including but not limited to the following factors: 1. The type of business or farm conducted by the displaced owner;2. The nature of the clientele of the displaced business or farm;3. The relative importance of the present and proposed location to the displaced business or farm;4. Availability of replacement sites within the financial means of the displaced business or farm;5. Competitive advantage of the existing location;6. In case of a partial taking of a business or farm, the determination of whether the property remaining is no longer an economic unit;7. Substantial additional capital expense required, or higher operating costs at the replacement site.(B) The business or farm is not part of a commercial enterprise having at least one other establishment which is not being acquired which is engaged in the same or similar enterprise. The Department may determine by suitable criteria that the remaining facility is not another "establishment" for purposes of this section.(C) The business or farm contributes materially to the income of the displaced owner. A part-time individual or family occupation in the home which does not contribute materially to the income of the displaced owner is not eligible for this payment.(2) Owner Must Provide Information. To be eligible for the payment in lieu of actual and reasonable moving expense, the displaced business or farm must make its income tax and sales tax returns and its financial statements and accounting records available for audit for confidential use by the Department.(3) In Business or Farming Less Than 2 Years. If the business or farm affected can show that it was in operation 12 consecutive months during the two taxable years prior to the taxable year in which it is required to relocate, had income during such period and is otherwise eligible, the owner of an enterprise is eligible to receive the in lieu payment. Where the business or farm was in operation for 12 consecutive months or more but was not in operation during the entire two preceding taxable years, the payment shall be computed by dividing the net earnings by the number of months the business or farm was operated and multiplying by 12. A taxable year is defined as any 12-month period used by the business or farm in filing income tax returns.Cal. Code Regs. Tit. 23, § 370.13
Note: Authority cited: Section 7267.8, Government Code. Reference: Section 7268, Government Code.