Escalating wildfires on U.S. forest lands in recent years have resulted in statutory reforms in redefining the liability for landowners using prescribed fires. This study summarized these reforms in recent years. While in some states there is still strict tort liability for damages from prescribed fires, 18 states have reduced the liability burdens on landowners with simple negligence rules, and furthermore, 4 states with gross negligence rules. A multivariate ordered probit model was estimated to examine factors that have influenced the retention of certain liability rules across states. Demand for prescribed fires from industrial and nonindustrial private forest landowners turned out to be the key driving force behind these statutory changes related to prescribed fires. © 2005 Elsevier B.V. All rights reserved.