An Act To Provide the State the Right of First Retusal for the Purchase of Certain Land on Which a Subsidy Has Been Paid
Maine Legislature, Session 128, LD 1844
Committee Amendment CA_B_S448 (Senate)
Amends: 36 MRSA §581-H

COMMITTEE AMENDMENT "e" to S.P. 698, L.D. 1844, Bill, "An Act To 
Provide the State the Right of First Retusal for the Purchase of Certain Land on Which a 
Subsidy Has Been Paid" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
1Sec. 1. 36 MRSA §581-H is enacted to read: 
§581-H. Right of first refusal 
In accordance with this section, the State has a right of first refusal on the sale of 
significant forest land. The right of first refusal under this section is a right to purchase 
the significant forest land on the same terms and conditions as offered by a purchaser. 
1. 
Purpose. It is the intent of the Legislature to further the purpose of this 
subchapter by acquiring, so far as is practicable and appropriate, significant forest land 
that is being sold, to ensure the protection of this economic and recreational state 
resource. 
2. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
11Departmene1 means the Department of Agriculture, Conservation and Forestry. 
B. 
11Purchaser
means a person that has offered to purchase significant forest land. 
11Purchaser
does not include the owner of the significant forest land
1s spouse, parent, 
grandparent, child, grandchild, sibling, half-sibling, stepparent, stepgrandparent, 
stepchild, stepgrandchild, stepsibling, mother-in-law, father-in-law, brother-in-law, 
sister-in-law, son-in-law, daughter-in-law, guardian, former guardian, domestic 
partner, the half-sibling of a person1s spouse or the spouse of a person1s half-sibling. 
C. 
11Significant forest land
means forest land in this State held by any landowner 
other than the State, or any political subdivision of the State, that: 
(1) Exceeds 5,000 acres; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" B 
"to S.P. 698, L.D. 1844 
(2) Is subject to taxation under this subchapter; and 
(3) Is not owned by, or held in trust by the United States or by any other person 
or entity for, any federally recognized Indian tribe in this State. 
3. Information regarding prospective sale. An owner of significant forest land, 
prior to accepting an offer from a purchaser to buy the significant forest land, shall supply 
to the department on a form provided by the department information that identifies the 
significant forest land, the terms and conditions of the proposed sale and other 
information required by the department. The owner may not complete the sale until 
receiving notice under subsection 4 that the State is not exercising the right of first 
refusal. 
4. Notice; determination. Upon receipt of information pursuant to subsection 3, the 
department may notify the Governor and the Legislative Council of the information and 
the amount of funds that would need to· be made available to purchase the significant 
forest land. If the department is provided adequate funding by the executive or legislative 
branch to make the purchase within 10 business days of the receipt of the information, the 
department shall exercise the right of first refusal. Within 10 business days of the receipt 
of the information, the department shall notify the owner who provided the information 
whether the State is exercising the right of first refusal. 
5. Terms of purchase. If the State exercises a right of first refusal under this 
section, the State shall purchase the significant forest land on the same terms and 
conditions as offered by the purchaser as long as the sale is at a price that is no less than 
the price provided in the information provided under subsection 3. If the price is 
decreased, the owner must again provide information in accordance with subsection 3. 
6. 
Designation as nonreserved public land; classification and management. 
Property purchased by the State pursuant to this section is nonreserved public land 
subject to the requirements of Title 12, chapter 220, subchapter 3. Notwithstanding any 
provision of law to the contrary, purchase of the property by the State under this section 
does not change its classification under this subchapter. The Bureau of Parks and Lands 
within the department shall manage the property in accordance with this subchapter and, 
using funds appropriated for that purpose by the Legislature, shall make payments in lieu 
of taxes in an amount equal to the amount that would be paid by a private landowner to 
the assessor. 
7. Sale of property to other purchaser. If the department does not exercise the 
State's right of first refusal to purchase the significant forest land within 10 business days 
of the receipt of the information pursuant to subsection 3, the owner may sell the 
significant forest land to any purchaser. 
8. Rules. The department shall adopt rules necessary to carry out this section. Rules 
adopted pursuant to this subsection are major substantive rules as defined in Title 5, 
chapter 375, subchapter 2-A.
SUMMARY 
This amendment, which is the minority report of the committee, replaces the bill. 
The amendment establishes the State's right of first refusal regarding property that is 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '13" to S.P. 698, L.D. 1844 
more than 5,000 acres, subject to the Maine Tree Growth Tax Law program and not 
owned by or held in trust for a federally recognized Indian tribe in this State. The right of 
first refusal does not apply if the purchaser is an immediate family member. An owner 
who receives an offer must notify the Department of Agriculture, Conservation and 
Forestry of the proposed sale and provide information including the terms and conditions 
of the sale. The department may notify the Governor and the Legislative Council. The 
department has 10 business days to obtain funds to make the purchase. If the State 
exercises its right of first refusal, the property is nonreserved public land subject to the 
requirements of the Maine Revised Statutes, Title 12, chapter 220, subchapter 3 and does 
not change its classification under the Maine Tree Growth Tax Law. The Bureau of 
Parks and Lands within the department must manage the property in accordance with the 
Maine Tree Growth Tax Law and, using funds appropriated for that purpose by the 
Legislature, must make payments in lieu of taxes in an amount equal to the amount that 
would be paid by a private landowner to the assessing authority. If the State does not 
exercise its right of first refusal, the owner may sell the property to any purchaser but at 
no less than the price provided to the department pursuant to Title 36, section 581-H, 
subsection 3; if owner decreases the price, the owner must resubmit the information in 
accordance with subsection 3. The department is required to adopt major substantive 
rules to implement these provisions. 
FISCAL NOfE REQUIRED 
(See attMhed) 
COMMITTEE AMENDMENT 
Approved: 04/06/18 feac:. 
LD 1844 
LR 2867(03) 
An Act To Provide the State the Right of First Refusal for the Purchase of Certain Land on Which a 
Subsidy Has Been Paid 
F1scal Note for Bill as Amended by Committee Amendment "e:; l S ~ Y Y 8) 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
Contingent Clment biennium cost increase - General Fund 
Contingent cmTent biennium cost increase - Other Special Revenue Funds 
Contingent cunent biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
This bill establishes the State's right of first refusal over property offered for sale that is over 5,000 acres and that is 
subject to the Maine Tree Growth Tax Law program. Any land purchases under this bill will require additional 
appropriations to the Department of Agriculture, Conservation and Forestry (ACF). As this bill does not require the 
ACF to act on any options to purchase land, no appropriation is required at this time and no costs are incuned. 
If the State chooses to execute a right of first refusal, the lands acquired would be classified as public nomeserved 
land managed by ACF. As public nomeserved lands, ACF is pe1111itted to sell the resources present on those lands or 
in certain situations assess user fees for access to the land. Under cunent law, 25% of revenue generated from public 
nonreserved land is returned to the municipality in which the land is located. This bill requires that ACF also make 
payments in lieu of taxes in an amount equal to what a private landowner would have paid to the assessing authority. 
The State does not cmTently make such payments to municipalities for public nonreserved lands. These payments 
would require ongoing General Fund appropriations. 
LR2867(03) - Fiscal Note - Page 1 of 1