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The U.S. Supreme Court case Skinner, Secretary of Transportation v. Mid-America Pipeline Co., 1988 revolved around the constitutionality of a user fee imposed by the Hazardous Liquid Pipeline Safety Act (HLPSA) on companies transporting hazardous liquids through pipelines across state lines. The HLPSA was enacted to fund federal safety programs and inspections related to these pipelines. Mid-America Pipeline Company challenged this fee, arguing that it violated the Constitution's Taxing Clause and Due Process Clause as they were not receiving any special benefits in return for paying it. However, the Supreme Court upheld its legality with a unanimous decision stating that Congress has broad power under Article I Section 8 of the Constitution to establish such fees or taxes for providing regulatory services even if those regulated do not receive direct benefits from them. The court also found no violation of due process rights because there was a reasonable relationship between regulating pipeline safety and imposing costs on those who benefit from this interstate commerce activity.
In the dissenting opinion for Skinner, Secretary of Transportation v. Mid-America Pipeline Co., Justice Scalia argued that the court majority had incorrectly interpreted Congress's intent in passing the Hazardous Liquid Pipeline Safety Act. He contended that Congress did not intend to give administrative agencies such as the Department of Transportation (DOT) broad power to impose civil penalties without judicial review. Instead, he believed that Congress intended for courts to have a role in assessing these penalties and ensuring they were fair and appropriate given each individual case's circumstances. Furthermore, he disagreed with the majority’s view on due process rights being satisfied by post-deprivation hearings before an agency officer or administrative law judge within DOT itself rather than a neutral third party like a court.