Statement of Administration Policy: H.R. 2731 - Law Enforcement and Customs Tort Claims

(SENT 8/4/92)
(House)
(Frank (D) Massachusetts and 3 others)

If H.R. 2731 were presented to the President in its current form, the Attorney General and the Secretary of the Treasury would recommend a veto. H.R. 2731, particularly section one, would inhibit law enforcement efforts and result in significant budgetary increases.

Section one would allow law suits to be brought against the Federal Government for claims of property damage caused by Customs or other law enforcement officers. Currently, these suits are barred by the "detention of goods" exception to the Federal Tort Claims Act (FTCA). H.R. 2731 would upset the reasonable balance that the FTCA strikes between subjecting the United States to liability and guarding against unwarranted payments from the Judgment Fund.

The Administration opposes section one because it would:

— Lead to more intrusive Customs procedures precisely when the Customs Service is attempting to expedite international commerce. The bill would result in substantial, indirect costs to persons engaged in international commerce, especially costs due to delay and intrusive searches.

— Significantly increase spending in the Judgment Fund, without providing an offset as required by the pay-as-you-go provision of the Omnibus Budget Reconciliation Act of 1990 (OBRA).

— Require basic changes in agency operating procedures — and a significant increase in personnel and resources — to guard against unwarranted and fraudulent claims while maintaining current levels of operations.

In addition, section two, which would permit Treasury to settle administratively certain claims for property damage, should be limited to non-commercial claims in Customs cases. Including commercial property would harm Customs' operations by compelling an assessment of the physical condition of all goods and merchandise before inspection. Commercial property already may be protected through marine cargo insurance.

Pay-As-You-Go Scoring

H.R. 2731 would increase direct spending; therefore, it is subject to the pay-as-you-go requirement of OBRA. No offsets to the direct spending increases are provided in the bill. A budget point of order applies in both the House and Senate against any bill that is not fully offset under CBO scoring. If, contrary to the Administration's recommendation, the House waives any such point of order that applies against H.R. 2731, the effects of enactment of this legislation would be included in a look back pay-as-you-go sequester report at the end of the Congressional session.

OMB's preliminary scoring estimates of the bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If H.R. 2731 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending will be issued in monthly reports transmitted to the Congress.

ESTIMATES FOR PAY-AS-YOU-GO
($ in millions)