Family Business First

The Family Business First coalition of forest products businesses supports compensating private landowners when a Federal agency action diminishes the fair market value of the affected portion of property. Private property rights are guaranteed by the Fifth Amendment of the U.S. Constitution, which clearly states that private property shall not be taken for public use without just compensation. The right to private property is a fundamental tenet of American liberty. While this right is a constitutional guarantee, legislation is needed to reinforce the concept of due process when landowners seek compensation.

Our view:

• The cost imposed by government use or regulation of private property should, as a matter of fairness, be borne by the public as a whole rather than disproportionately impacting individuals who have a legitimate interest in the land. In those cases where the government makes a determination to restrict an individual's legal interest in private land, the government should either acquire those lands, provide just compensation, or enter into voluntary arrangements with the party who has a legal interest in the land.

• Family Business First supports S.605, the "Omnibus Private Property Rights Act of 1995." This bill requires the Federal Government to compensate a landowner when the value of an affected portion of the owner's property is reduced by at least 33 percent as a result of an agency action.

• S.605 eliminates many of the due process obstacles landowners now face when seeking compensation for takings. The bill allows either party to a dispute over a taking of private property to resolve the dispute through settlement or arbitration. The property owner would also have the option of filing a civil action in either the United States District Court or the United States Court of Federal Claims. This language eliminates the current confusion and inconsistency over jurisdiction in these cases. S. 605 also addresses the need for administrative appeal procedures for ESA or Section 404 of the Clean Water Act (wetlands) cases.

• Property should be defined as: 1) land; 2) improvements associated with the land; 3) any proprietary water right; or 4) any crops, forest products or resources. Any action which results in a diminution of a property's fair market value, or its economically viable use, will constitute a takings and require compensation.

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