First Nations may choose to opt out of 34 land-related sections of the Indian Act and develop their own land codes in order to govern reserve lands and resources—and take advantage of economic development opportunities. This option is made possible through the First Nations Land Management Regime, which transfers administration of land to a participating First Nation. This includes the authority to enact laws with respect to land, the environment, and most resources.
There are presently 94 First Nations operating under, or developing, their own land codes for operation under the First Nations Land Management Regime.
In 1991, a group of First Nation Chiefs approached AANDC with a proposal to allow First Nations to opt out of the Indian Act provisions which deal with land and resources. The Framework Agreement on First Nation Land Management resulted from this proposal, which was signed by Canada and 14 First Nations in 1996, and then ratified in 1999 through the coming into force of the First Nations Land Management Act. First Nations who initially signed the Framework Agreement established the Lands Advisory Board and Resource Center to help them implement their own land management regimes.
Funding is available to support First Nations through the developmental phase, as well as with operational land management activities:
- Developmental funding assists with the community's approval process, development of the land code, and negotiation of the individual agreement.
- Operational funding is determined through a formula, which is set out in the individual agreement.