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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3784 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3784

    To provide for compensation to owners of property substantially 
diminished in value as a consequence of a final decision of any United 
                             States agency.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1994

Mr. Smith of Texas introduced the following bill; which was referred to 
                     the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
    To provide for compensation to owners of property substantially 
diminished in value as a consequence of a final decision of any United 
                             States agency.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. COMPENSATION FOR PROPERTY SUBSTANTIALLY DIMINISHED IN VALUE.

    (a) Eligibility.--A property owner who, as a consequence of a final 
decision of any department, agency, or instrumentality of the United 
States is denied, in writing, the right to develop or physically alter 
private property owned or held by the property owner which results in 
the property owner being deprived of the beneficial or productive use 
of the property is entitled to receive compensation in accordance with 
this section.
    (b) Deadline.--Within 90 days after a denial referred to in 
subsection (a), the property owner may submit in writing a request to 
the department, agency, or instrumentality head for compensation in 
accordance with subsection (c).
    (c) Department, Agency, or Instrumentality Head's Offer.--The 
department, agency, or instrumentality head, within 90 days after the 
receipt of a request for compensation, shall provide to the property 
owner--
            (1) an offer to purchase the affected property of the 
        property owner at a fair market value assuming no use 
        restrictions under the laws or regulations on which the denial 
        referred to in subsection (a) is based; and
            (2) an offer to compensate the property owner for the 
        difference between the fair market value of the property 
        without those restrictions and the fair market value of the 
        property with those restrictions.
    (d) Property Owner's Response.--A property owner shall have 60 days 
after the date of receipt of the department, agency, or instrumentality 
head's offers under subsection (c) to accept one of the two offers or 
to reject both offers. If the property owner rejects both offers, the 
property owner may submit the matter for arbitration to an arbitrator 
appointed by the department, agency, or instrumentality head from a 
list of arbitrators submitted to the department, agency, or 
instrumentality head by the American Arbitration Association. The 
arbitration shall be conducted in accordance with the real estate 
valuation arbitration rules of that association. For purposes of this 
section, an arbitration shall be binding on the department, agency, or 
instrumentality head and a property owner as to the amount, if any, of 
compensation owed to the property owner and whether for purposes of 
this section the property owner has been substantially deprived of the 
economically viable use of the affected property.
    (e) Other Remedies Not Affected.--Nothing in this section shall 
affect the right of a property owner to pursue any other remedy 
available at law.
    (f) Judgment.--A denial referred to in subsection (a) is deemed, at 
the option of the property owner, to be a taking under the Constitution 
of the United States and a judgment against the United States if the 
property owner--
            (1) accepts an offer by the department, agency, or 
        instrumentality head under subsection (d); or
            (2) submits to arbitration under subsection (d).
    (g) Payment.--The department, agency, or instrumentality head shall 
pay a property owner any compensation required under the terms of an 
offer of the department, agency, or instrumentality head that is 
accepted by the property owner in accordance with subsection (d), or 
under a decision of an arbiter under that subsection, by not later than 
60 days after the date of the acceptance or the date the issuance of 
the decision, respectively.
    (h) Definitions.--For the purposes of this section:
            (1) Property.--The term ``property'' means--
                    (A) land;
                    (B) any interest in land, including recorded liens 
                or other security interests in such land; and
                    (C) any proprietary water right, including any 
                recorded liens on such proprietary water right.
            (2) Property owner.--The term ``property owner'' means a 
        person who--
                    (A) owns property referred to in paragraph (1) (A) 
                or (B);
                    (B) holds property referred to in paragraph (1)(C); 
                or
                    (C) holds a legal, financial, or beneficial 
                interest in property referred to in paragraph (1).
            (3) Substantially deprived of the beneficial or productive 
        use.--The term ``substantially deprived of the beneficial or 
        productive use of private property'' includes economic loss 
        through diminished development rights and the taking of private 
        lands that results in a decrease in the fair market value of 
        that property.

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