The Framework Agreement on First Nation Land Management (1996) was ratified by the First Nations Land Management Act (FNLMA) in 1999. The Framework Agreement enables participating First Nations to opt out of the 34 land-related sections of the Indian Act and establish their own regimes to govern their lands, resources and environment. There will now be over 50 First Nations operating under their own land codes.
The Framework Agreement requires that First Nations develop a land code setting out the basic rules and procedures for the new land governance regime. This in turn, lays the groundwork for expanded economic development on reserves and increased business partnerships with the private sector.
In Budget 2011, the Government of Canada committed to reallocate up to an additional $20 million over two years in order to respond directly to the growing interest from First Nation communities requesting to participate.
On October 19, 2011, the Government of Canada and the First Nations Lands Advisory Board (LAB) negotiated a Memorandum of Understanding detailing a new funding formula. The new formula will be used to determine Canada's annual contribution to First Nations operating under their land codes.
A prioritization methodology was developed and is now being implemented to ensure potential entrants are assessed in a fair and transparent manner. To help allocate limited resources, the new system includes a self-assessment questionnaire which was completed by interested First Nations and then evaluated by Aboriginal Affairs and Northern Development Canada.