I
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 substan-
tially diminished in value as a consequence of a final
decision of any United States agency.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. COMPENSATION FOR PROPERTY SUBSTAN-
TIALLY DIMINISHED IN VALUE.
(a) ELIGIBILITY.—A property owner who, as a con-
sequence of a final decision of any department, agency,
or instrumentality of the United States is denied, in writ-
ing, the right to develop or physically alter private prop-
erty 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 com-
pensation in accordance with this section.
(b) DEADLINE.—Within 90 days after a denial re-
ferred to in subsection (a), the property owner may submit
in writing a request to the department, agency, or instru-
mentality head for compensation in accordance with sub-
section (c).
(c) DEPARTMENT, AGENCY, OR INSTRUMENTALITY
HEAD’S OFFER.—The department, agency, or instrumen-
tality 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 assum-
ing 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 arbi-
tration 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 arbi-
tration shall be conducted in accordance with the real es-
tate 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 compensa-
tion 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).
(3) SUBSTANTIALLY DEPRIVED OF THE BENE-
FICIAL OR PRODUCTIVE USE.—The term ‘‘substan-
tially deprived of the beneficial or productive use of
private property’’ includes economic loss through di-
minished development rights and the taking of pri-
vate lands that results in a decrease in the fair mar-
ket value of that property.
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