Statement of Administration Policy: S. 605 - Omnibus Property Rights Act of 1995

(Senate)
(Sen. Dole (R) KS and 33 others)

The President will veto S. 605 or any similar compensation entitlement legislation that is presented to him.

The Administration is fully committed to just compensation for private property that is "taken" for public use. Under the Fifth Amendment, which guarantees the protection of private property, the Supreme Court has set a constitutional standard that balances the legitimate rights of property owners and important public needs. S. 605, however, is a radical departure from this standard.

The bill would establish a new entitlement program that could cost taxpayers tens of billions of dollars over the next seven years. It would also foster protracted and costly litigation, greatly expand the Federal bureaucracy, and seriously disrupt the implementation and enforcement of environmental, health, safety, and other vital laws.

Under the broad and ambiguous terms of S. 605, almost any Government action could expose agencies to liability: ensuring the safety of airplanes, trains, vessels, and automobiles; regulating the safety of children's toys; protecting livestock from disease and pests; regulating the quality of food and drugs; enforcing civil rights; regulating financial institutions; and enforcing drinking and clean air standards, and other environmental protections which are designed to protect America's 60 million homeowners.

In addition, claims could be made even when an agency action affects only a portion of property, as well as for anticipated property development where no actual loss has occurred. S. 605 would also grant the Court of Federal Claims, an Article I court, authority to invalidate Federal statutes or regulations, raising constitutional concerns.

In sum, S. 605 fails to address the harm that may result from irresponsible or dangerous uses of property and would seriously interfere with the Government's obligation to protect the public interest.

Pay-As-You-Go Scoring

S. 605 would affect direct spending; therefore, the bill is subject to the pay-as-you-go requirements of the Omnibus Budget Reconciliation Act of 1990. Preliminary estimates indicate that the bill's effect could be to increase the deficit by tens of billions of dollars during FYs 1996-2002.