MPBN | Maine Landowner Compensation Bill Sparks Heated Debate

“About half of the states in the U.S. have some form of regulatory takings law, only six have a law similar to what we are talking about here today,” he said. “But this is not a new first-in-the-nation apporach and it certainly is based upon some valid experiences that other states have had.”

Cushing’s proposal would affect landowners in Maine whose property has lost value due to state environmental restrictions or other regulations that prohibit or diminish the land’s marketability. If approved, the bill would only affect claims filed after the bill becomes law, and the landowner would have to show diminished value of at least 50 percent.

If successful, the landowners would be entitled to compensation from the state, or receive a waiver of the regulation that had devalued their property. State Sen. Doug Thomas, a Ripley Republican, told members of the Legislature’s Judiciary Commitee that he owns property that has been adversely impacted by state environmental regulations during a public hearing on the bill.

“If I want to sell my property now to grow my business or to send a child or grandchild to college, it’s worthless,” Thomas said. “But if that had the true value that it should have, that would be a big chunk of money that I could put into my business or that I could send my children or my granchildren to school with. Multiply that by the hundreds of thousand of acres that have been devalued, how many billions of dollars have been taken out of the Maine economy. Is it any wonder we’re so poor?”

Small farmers also support Cushing’s bill. Lisa Turner, of Freeport, is a soil science engineer and an organic farmer who has received exemptions to retain her current amount of useable land. She says her farm could not survive any new regulations that define her useable property.

“Any setback can be devastating,” Turner said. “If I were to lose my exemption from vernal pools it would take away half of the land that I farm on and therefore half of my income.”

“This instrument in my opinion will go too far and have many unintended consequences,” said Sen. Seth Goodall. Goodall, a Democrat, is among those in the Legislature opposed to Cushing’s bill, which he says will unleash an avalanche of litigation. He challenged Cushing’s assertion that the bill will only be limited to state regulations and not those passed by municipalities.

“This does not mean that municipalities will be exempt,” Goodall said. “What happens when municipalities have delegated authority to enforce site laws for example? Who are you going to sue if they put the laws in place in terms of the regulations and made the decisions through their planning commissions?”

Jon Lund, of Hallowell, also opposes the bill. He says that large landowners who learn that there could be a new regulation in the works could game the system to reach the 50 percent threshold that triggers compensation simply by subdiving their property.

“If a landowner foresees that the value of his shoreland or road frontage may be affected by upcoming legislation, he could simply divide the parcel, convey the backland to another legal entity, and the frontage piece then becomes the enitre parcel greatly magnifying the percentage of loss and value.”

The Judiciary Committee is scheduled to review the bill later this month.