BILL 62

An Act to Amend the Agricultural Development Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 1 of the Agricultural Development Act, chapter A-5.1 of the Revised Statutes, 1973, is amended

(a)  in the French version in the definition « Ministre » by striking out the period at the end of the definition and substituting a semicolon;

(b)  by adding the following definitions in alphabetical order:

“agriculture lease” means a lease granted under section 12.4; (bail agricole)

“agriculture occupation permit” means an agriculture occupation permit issued under section 12.1; (autorisation d’occupation agricole)

“farming operation” means (exploitation agricole)

(a)  a farming business within the meaning of the Income Tax Act (Canada), or

(b)  a start-up farming operation that is following a management plan approved by the Minister;

“lease area” means the land covered by an agriculture lease; (périmètre)

2 The Act is amended by adding after section 12 the following:

Agriculture occupation permit

12.1 The Minister may issue an agriculture occupation permit authorizing a person to use and occupy land under the administration and control of the Minister if the person

(a)  makes an application on a form provided by the Minister,

(b)  provides the Minister with such documentation and information as the Minister requires, and

(c)  pays the fee, if any, prescribed by regulation.

Term of agriculture occupation permit

12.11 An agriculture occupation permit is valid for one year or for such shorter period as is specified by the Minister in the permit.

Terms and conditions of agriculture occupation permit

12.2 An agriculture occupation permit is subject to the terms and conditions imposed by the Minister.

No assignment or transfer of agriculture occupation permit

12.21 An agriculture occupation permit is not assignable or transferable.

Liability for damage

12.3 The holder of an agriculture occupation permit is liable for actual damage to property caused by the holder of the agriculture occupation permit or any person acting on behalf of the holder of the agriculture occupation permit on the land covered by the agriculture occupation permit.

Cancellation of agriculture occupation permit

12.31 The Minister may cancel an agriculture occupation permit if the holder of the agriculture occupation permit

(a)  violates or fails to comply with this Act or the regulations,

(b)  violates or fails to comply with a term or condition of the agriculture occupation permit, or

(c)  requests in writing that the agriculture occupation permit be cancelled.

Grant of agriculture lease

12.4 The Minister may grant an agriculture lease to a person for the purpose of carrying out a farming operation on land under the administration and control of the Minister if the person

(a)  makes an application on a form provided by the Minister,

(b)  provides the Minister with such documentation and information as the Minister requires, and

(c)  pays the fee, if any, prescribed by regulation.

Term of agriculture lease

12.41 An agriculture lease shall be for a period not exceeding 20 years or, with the approval of the Lieutenant-Governor in Council, for such period of time as the Minister considers appropriate.

Terms, covenants and conditions of agriculture lease

12.5 An agriculture lease is subject to the terms, covenants and conditions imposed by the Minister.

Rent

12.51(1) The holder of an agriculture lease shall pay rent in the amount, at the time and in the manner determined by the Minister.

12.51(2) From the date on which the amount of rent under this Act with respect to an agriculture lease is to be paid by any person, the amount bears interest at the rate prescribed in subsection 9(1) of New Brunswick Regulation 84-247 under the Revenue Administration Act.

12.51(3) The amount of rent payable under this Act with respect to an agriculture lease, together with interest on the amount, that is due and unpaid by any person is a debt due to Her Majesty in right of the Province and may be recovered by action in her name in any court of competent jurisdiction.

Assignment, transfer, sublet and set over of agriculture lease

12.6(1) The holder of an agriculture lease may, in accordance with the terms, covenants and conditions of the agriculture lease, assign, transfer, sublet or set over the agriculture lease.

12.6(2) The transfer of an agriculture lease shall be

(a)  signed by the transferor or by the agent of the transferor, and

(b)  accompanied by the fee, if any, prescribed by regulation.

Borrowing

12.61 The holder of an agriculture lease shall not, without the prior written approval of the Minister, mortgage, hypothecate, pledge or otherwise encumber the lease area.

Liability for damage

12.7 The holder of an agriculture lease is liable for actual damage to property caused by the holder of the agriculture lease or any person acting on behalf of the holder of the agriculture lease on the lease area.

Renewal of agriculture lease

12.71(1) The Minister may renew an agriculture lease for a period not exceeding 20 years or, with the approval of the Lieutenant-Governor in Council, for such period of time as the Minister considers appropriate if

(a)  before the agriculture lease expires, the holder of the lease

(i) makes an application on a form provided by the Minister,

(ii) provides the Minister with such documentation and information as the Minister requires, and

(iii) pays the fee, if any, prescribed by regulation, and

(b)  the Minister is satisfied that this Act, the regulations and the terms, covenants and conditions of the agriculture lease have been complied with.

12.71(2) An agriculture lease may be renewed more than once.

Surrender of agriculture lease

12.8 The holder of an agriculture lease may surrender the agriculture lease by giving the Minister written notice of the surrender.

Cancellation of agriculture lease

12.81(1) The Minister may cancel an agriculture lease if the holder of the agriculture lease

(a)  violates or fails to comply with this Act or the regulations,

(b)  violates or fails to comply with a term, covenant or condition of the agriculture lease, or

(c)  surrenders the agriculture lease.

12.81(2) The Minister shall serve notice of the cancellation on the holder of the agriculture lease

(a)  in a manner in which personal service may be made under the Rules of Court, or

(b)  by mailing the notice by registered mail to the latest known address of the holder of the agriculture lease.

12.81(3) Service by registered mail shall be deemed to be effected 7 days after the date of mailing.

12.81(4) The cancellation takes effect on the date the notice of cancellation is served.

12.81(5) The person who held the agriculture lease shall, within the period of time specified by the Minister,

(a)  vacate the lease area, and

(b)  rehabilitate the lease area to the satisfaction of the Minister.

12.81(6) If the person who held the agriculture lease fails to rehabilitate the lease area to the satisfaction of the Minister, the Minister may rehabilitate the lease area at the expense of that person.

Obligation to pay rent after agriculture lease expires, is surrendered or cancelled

12.9 When an agriculture lease expires or is surrendered or cancelled, the person who held the agriculture lease continues to be liable for any money owing with respect to rents, including interest on any amounts due and payable for which the person was liable immediately before the expiry, surrender or cancellation of the agriculture lease.

Obligation to pay rent after death of holder of agriculture lease

12.91 When the holder of an agriculture lease dies, the heirs, executors, administrators or assigns of the holder of the agriculture lease are liable for any money owing with respect to rents, including interest on any amounts due and payable for which the holder of the agriculture lease was liable immediately before his or her death.

Inspections

12.92 For the purpose of ensuring compliance with this Act, the regulations, the terms and conditions of an agriculture permit or the terms, covenants and conditions of an agriculture lease, the Minister may, at any reasonable time,

(a)  enter and inspect any land covered by an agriculture occupation permit or any lease area, and

(b)  conduct tests, make inquiries and take samples, measurements, photographs or audio or visual recordings that the Minister considers necessary.

Obstruction

12.93 The holder of an agriculture occupation permit or an agriculture lease or any person acting on behalf of the holder of the agriculture occupation permit or agriculture lease shall not obstruct or interfere with the Minister while he or she is carrying out or attempting to carry out an inspection under this Act.

Prior leases

12.94(1) Any lease granted by the Minister for agricultural purposes after December 31, 1992, and before the commencement of this section shall be deemed to have been validly granted and is confirmed and ratified.

12.94(2) Any act or thing done after December 31, 1992, and before the commencement of this section by the Minister with respect to the leases referred to in subsection (1) shall be deemed to have been validly done and is confirmed and ratified.

12.94(3) No action, application or any other proceeding to question or in which is questioned the validity of the leases referred to in subsection (1) or the authority of the Minister to grant such leases, shall lie or be instituted against Her Majesty in right of the Province or the Minister or any person appointed, assigned, designated or requested to assist the Minister with respect to such leases, if the Minister or person acted in good faith in granting the lease.

12.94(4) Sections 12.5 to 12.93 apply with the necessary modifications to the leases referred to in subsection (1).

3 Subsection 13(1) of the Act is amended

(a)  by adding after paragraph (d.3) the following:

(d.4)  prescribing fees payable under this Act;