T-7.1, r. 2 - Regulation respecting the alienation and leasing of agricultural lands in the domain of the State

Full text
chapter T-7.1, r. 2
Regulation respecting the alienation and leasing of agricultural lands in the domain of the State
AGRICULTURAL LANDS IN THE DOMAIN OF THE STATE — ALIENATION AND LEASING
Act respecting agricultural lands in the domain of the State
(chapter T-7.1, ss. 9 and 47).
T-7.1
September 1 2012
DIVISION I
APPLICATION
1. This Regulation applies to the alienation and leasing of ungranted land within the meaning of section 1 of the Act respecting agricultural lands in the domain of the State (chapter T-7.1), except land designated for blueberry production in accordance with the Regulation respecting public blueberry fields (chapter T-7.1, r. 3).
O.C. 4-90, s. 1.
2. For the purposes of this Regulation, “agricultural operation” means a physical and autonomous entity constituted in a single economic and accounting unit and registered with the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation in accordance with the Regulation respecting the registration of agricultural operations and the payment of property taxes and compensations (chapter M-14, r. 1).
If an agricultural operation is the property of a number of persons, those persons shall be considered a single owner of that operation.
O.C. 4-90, s. 2.
DIVISION II
NOTICE OF ALIENATION OR LEASING
3. Where the Minister intends to alienate or lease a parcel of land, he shall give notice by letter, by posting a sign or by placing an announcement in the newspaper of his choice.
If the notice is by letter, it must be sent to all the owners of agricultural land situated in the territory designated by the Minister in the notice. Where an agricultural operation is owned by a number of persons, sending the notice to one of those persons shall suffice.
If the notice is a posted sign, it shall be posted on a public immovable situated within the boundaries of the territory designated in the notice.
The notice must be sent, posted or published at least 10 days before the date specified in the notice for the submission of applications or for the sale, depending on the procedure used.
In all cases, the notice shall be posted at the Bureau de renseignements agricoles responsible for the territory concerned and shall serve as notice in writing to every owner of an agricultural operation in that territory who is thus deemed to have received such a notice.
The territory designated by the Minister must, in all cases, permit the application of section 6.
O.C. 4-90, s. 3.
4. In the notice referred to in section 3, the Minister shall indicate:
(1)  the category of purchasers or lessees concerned;
(2)  the parcel of land that he intends to alienate or to lease and the territory in question;
(3)  the procedure used and the method of granting, as provided for in Division III;
(4)  the alienation or leasing price of the land in question, as provided for in Division IV.
O.C. 4-90, s. 4.
DIVISION III
PROCEDURE AND METHOD OF GRANTING
5. An owner of an agricultural operation who wishes to purchase or lease land that has been the subject of a notice of alienation or lease issued by the Minister must, for each parcel of land in question, submit a written application within the time and at the place indicated in the notice.
O.C. 4-90, s. 5.
6. A parcel of land may be granted only to the owner of an agricultural operation, and if more than one application for that land is made to the Minister, he shall grant the land in the following order:
(1)  to the owner of an agricultural operation whose main farm buildings are situated on another part of the lot comprising the land for sale or lease and having 1 side contiguous to the land for sale or lease;
(2)  to the owner of an agricultural operation whose main farm buildings are situated on a parcel of land having 1 side contiguous to the parcel of land for sale or lease;
(3)  to the owner of an agricultural operation whose main farm buildings are situated on a parcel of land which, when the distance is measured from the nearest boundary of the land, is closest by public highway to the parcel of land for sale or lease;
(4)  to any other owner of an agricultural operation entitled to receive the notice from the Minister;
(5)  to any other owner of an agricultural operation.
If only one person is registered in the group to whom priority is granted, the land shall be granted to that person. If a number of persons are registered in the group, the Minister shall grant the land by drawing lots in the presence of all registered persons or their representatives or, failing that, of at least 2 disinterested persons acting as witnesses.
If, in the same notice, the Minister puts land up for sale and for lease, priority shall be granted to an agricultural operator who wishes to purchase that land.
For the purposes of this section “public highway” means a public road as defined in section 1 of the Act respecting the preservation of agricultural land and agricultural activities (chapter P-41.1).
“Land having 1 side contiguous” means a parcel of land having 1 side that would be contiguous if it were not separated from the land for sale or lease by a public highway, a railway or the right of way of a public utility.
O.C. 4-90, s. 6.
7. No owner of an agricultural operation may purchase or lease, following the same notice, more than 121.5 ha of land.
O.C. 4-90, s. 7; O.C. 1180-94, s. 1.
8. The Minister may, by means of the notice mentioned in section 3, solicit tenders by public auction open to owners of agricultural operations situated in the territory designated by the Minister in the notice.
In that case, the sixth paragraph of section 3 and section 6 do not apply.
O.C. 4-90, s. 8.
9. Notwithstanding section 3, a bid may also be solicited by personal invitation to the owner of an agricultural operation in the following cases:
(1)  if, on 24 January 1990, a parcel of land is covered by a lease granted by the Minister, the parcel of land or any other land that the parties agree to substitute for it may be offered to the owner of an agricultural operation leasing it;
(2)  if a parcel of land is covered by a permit for continuous and permanent use or occupancy granted under the Act, if the permit is in force on 31 January 1989 and the land has been used since that date for agriculture, fisheries or food supply as provided for in the permit;
(3)  if a parcel of land is enclosed or situated in such a way that only one person can conveniently operate it.
O.C. 4-90, s. 9.
10. The owner of an agricultural operation whose application or tender is accepted must, within the time set by the Minister, send to the Minister all the amounts payable in regard to the purchase or leasing.
If he refuses or fails to reply within the time set or does not remit the amounts payable, the owner is deemed to have abandoned and the Minister may then offer that land to a person who might be entitled to it under sections 6 and 7.
O.C. 4-90, s. 10.
DIVISION IV
ALIENATION OR LEASING PRICE
11. The alienation price of a parcel of land shall be equal to its actual value established according to generally accepted property assessment methods in accordance with the Act respecting municipal taxation (chapter F-2.1).
Where a parcel of land is the subject of a lease, a utilization licence or an occupancy licence granted by the Minister, the alienation price of that land shall be determined according to its actual value, established in accordance with the Act respecting municipal taxation, without taking into account the buildings and other works erected or carried out by the lessee or by the person authorized by the Minister to occupy that land, and that alienation price shall correspond to a percentage of the actual value as determined according to the duration of occupancy as provided in Schedule I. The duration of occupancy is calculated until 24 January 1990.
The lessee of a parcel of land or the person authorized by the Minister to occupy a parcel of land must prove his occupancy of that land and the duration of that occupancy up to the date of his application.
In the absence of such proof, the occupancy is presumed to have begun at the date of the lease or of the utilization licence or occupancy licence for the land.
The price is payable in cash or by exchange.
O.C. 4-90, s. 11.
12. The annual leasing price is equal to 10% of the actual value of the land as established according to generally accepted property assessment methods in accordance with the Act respecting municipal taxation (chapter F-2.1), without taking into account the buildings and other works erected or carried out by the lessee or by the person authorized by the Minister to occupy such land.
The leasing price may in no case be less than $4 per ha, with a minimum of $50, and those amounts shall be increased according to the increase in the actual value of the land after 24 January 1990.
If the assessment of the land is not available, the Minister shall lease the land at the price provided for in the second paragraph.
The annual rent shall be payable in advance at the beginning of each year and shall be increased every 3 years in relation to the actual value of the land established at that time in accordance with section 11.
O.C. 4-90, s. 12.
DIVISION V
ALIENATION AND LEASING FOR AQUACULTURAL PURPOSES
13. For the purposes of this Regulation, an aquacultural operation is an operation where fish, amphibians, echinoderms, crustaceans or shellfish or their eggs, sexual products or larvae are commercially produced or bred for consumption or stocking purposes and for which the owner holds a licence issued by the Minister in accordance with section 5 of the Act respecting commercial aquaculture (chapter A-20.2).
O.C. 4-90, s. 13; O.C. 607-2008, s. 46.
14. Where the Minister intends to alienate or lease land for aquacultural purposes, he shall give notice to the owners of an aquacultural operation in accordance with the first 5 paragraphs of section 3 and with section 4.
The Minister shall also give notice as provided for in the first paragraph to the owners of agricultural operations situated in the territory designated by him in the notice.
O.C. 4-90, s. 14.
15. The owner of an aquacultural operation, or any person who wishes to become one, who wishes to purchase or lease land that is covered by a notice of sale or lease issued by the Minister must submit, for each parcel of land in question, a written application within the time and at the place indicated in the notice.
The applicant must also submit a project involving the establishment or development of his aquacultural operation and, in particular, demonstrate that the financial structure of his operation, his management skills, his professional and technical personnel and his production and marketing organization are adequate to ensure the carrying out and smooth operation of his project.
O.C. 4-90, s. 15.
16. The alienation or leasing price shall be established in accordance with Division IV.
O.C. 4-90, s. 16.
17. The first paragraph of section 10 and sections 21 to 26 apply, with the necessary modifications, to land alienated or leased for aquacultural purposes.
O.C. 4-90, s. 17.
DIVISION VI
ALIENATION AND LEASING FOR SPECIFIC PROJECTS
18. The Minister may, in exceptional circumstances, alienate or lease a parcel of land directly to a person who submits a project involving the development or establishment of an agricultural or an aquacultural operation and who demonstrates:
(1)  that his project is economically relevant, considering the investment, its present or future viability and its compatibility with his existing operation;
(2)  that his project may in no way be carried out without the purchase or leasing of the land in question;
(3)  that he has the qualifications required to manage the project, considering his achievements and the profitability of his existing operation;
(4)  and, in the case of the owner of an agricultural operation or a person who wishes to become one, that he has the knowledge and has put together in a single economic and accounting unit the financial resources and economic factors of production that may enable him to produce and market, on an annual basis, agricultural products that have a value equal to or higher than the value set under subparagraph iv of subparagraph j of section 1 of the Farm Producers Act (chapter P-28).
In those cases, the alienation or leasing price shall be established in accordance with Division IV.
O.C. 4-90, s. 18.
DIVISION VII
SPECIFIC CONDITIONS APPLICABLE TO LEASING
19. In order for land to be leased for woodland purposes, the applicant must place the land under forest management for the duration of the lease by means of a simple management plan or as part of a program administered by a forest grouping referred to in section 102 of the Forest Act (chapter F-4.1), except in the case of an express derogation authorized by the Minister. In all cases, the management plan or the program must be sent to the Minister and may not be changed without his authorization, it being considered an integral part of the lease.
The conditions provided for in the first paragraph shall also apply in all other cases involving the leasing of land comprising wooded areas, unless the Minister decides that placing the land under forest management would be inexpedient.
The parts of the land that have been cleared may not be reforested without authorization from the Minister.
O.C. 4-90, s. 19.
20. The Minister may, for forestry, prospecting or mining purposes of for any other purpose in the public interest, have part or all of a lease apply to land other than the leased land if the purposes for which the lease was granted may be exercised on the land offered in exchange.
In such case, the lessee may not claim any compensation other than that resulting from work or works carried out by him on the land under lease.
O.C. 4-90, s. 20.
21. A lease shall be granted for a period of 1 to 15 years and may be renewed for another period of like duration under the conditions in force at the time of the renewal if the conditions that it contained were complied with. A lease granted for aquacultural purposes shall have a duration of 1 to 5 years and may be renewed in the same way.
O.C. 4-90, s. 21.
22. The lessee may not sublet or otherwise assign his rights to the land under lease without written authorization from the Minister.
O.C. 4-90, s. 22.
DIVISION VIII
MISCELLANEOUS
23. The Minister may reserve in favour of any contiguous or adjoining land, or in favour of any person whom he designates, a right of way or any other right concerning land covered by an alienation or a lease.
The purchaser or the lessee of a parcel of land that is inaccessible by public highway must obtain at his expense, prior to the issue of the title evidencing the sale or leasing, a perpetual right of way or a right of way for the duration of the lease, as the case may be, respecting land that is not under the authority of the Minister.
O.C. 4-90, s. 23.
24. Where land bordering on a lake or on a watercourse is sold or leased, the deed evidencing the sale or leasing may, where applicable, contain the following clause:
“The Gouvernement du Québec shall take no responsibility whatsoever for damages that may be suffered by the purchaser or the lessee, his heirs or his assigns as a consequence of the construction, maintenance, reconstruction or demolition of any dam or any other work related to the dam constructed, maintained, reconstructed or demolished, in accordance with the standards or requirements established by the government departments concerned and that the government has considered appropriate to authorize or to carry out in the public interest.
This clause may be invoked only in the case of an existing dam or a dam of which construction begins within 5 years from the signing of this deed.”
O.C. 4-90, s. 24.
25. The cost of registration at the office of the registration division concerned shall be borne by the purchaser or lessee, as the case may be.
The same applies to the cost of preparing and receiving the deed where the sale or leasing is registered by notarial act.
O.C. 4-90, s. 25.
26. Where the alienation or leasing applies to part of a parcel of land, the purchaser or lessee must, where necessary, have that part surveyed and registered at his expense.
O.C. 4-90, s. 26.
DIVISION IX
FINAL
27. (Omitted).
O.C. 4-90, s. 27.
28. (Omitted).
O.C. 4-90, s. 28.
29. (Omitted).
O.C. 4-90, s. 29.
ALIENATION PRICE
Duration of occupancy Percentage of actual value

30 years or more 3%
29 years 3%
28 years 6%
27 years 9%
26 years 12%
25 years 15%
24 years 18%
23 years 21%
22 years 24%
21 years 27%
20 years 30%
19 years 33%
18 years 36%
17 years 39%
16 years 42%
15 years 45%
14 years 48%
13 years 51%
12 years 54%
11 years 57%
10 years 60%
9 years 65%
8 years 70%
7 years 75%
6 years 80%
5 years 80%
4 years 80%
3 years 85%
2 years 90%
1 year 100%
O.C. 4-90, Sch. I.
REFERENCES
O.C. 4-90, 1990 G.O. 2, 53
O.C. 1180-94, 1994 G.O. 2, 3765
O.C. 607-2008, 2008 G.O. 2, 2542