ACT No. XXII of 2022 AN ACT to amend the Agricultural Leases (Reletting) Act, Cap. 199 BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-

I assent.

(L.S.)

GEORGE VELLA

President

23rd December, 2022

ACT No. XXII of 2022

AN ACT to amend the Agricultural Leases (Reletting) Act, Cap. 199

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Agricultural Leases Short title and

(Reletting) (Amendment) Act, 2022 and this Act shall be read and commencement.

construed as one with the Agricultural Leases (Reletting) Act, Cap. 199.

hereinafter referred to as "the principal Act".

(2) This Act shall come into force on such date or dates as the

Minister responsible for justice may, by notice in the Gazette, establish

and different dates may be so established for different provisions and,

or purposes of the Act.

Article 3 of the principal Act shall be amended by the Amendment of

article 3 of the

following

principal Act.

(a)

in sub-article (2) thereof

(i) in paragraph (b) thereof the words "does not

involve repayment; or" shall be substituted by the words

"does not involve repayment."; and

(ii) paragraph (c) thereof shall be deleted;

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-article

"(2A) When the change of the conditions of lease

under this article consists in an increase in the rent the

following provisions shall apply

(a) the owner in his application shall

indicate by how much the rent shall increase;

(b) the tenant on his part shall indicate in

his reply how much the fair rent should be in his

opinion;

(c) in its final judgment the Board shall

determine the fair rent taking into account the

value of the agricultural land when valued as

agricultural land for agricultural use obtainable on

the open market, the means of the tenant, the

circumstances and the condition of the

agricultural land and any burden that is

disproportionate to the lessor;

(d) the Board may establish that any

increase in rent shall be gradual;

(e) the rent revised by the Board shall not

exceed one point five per cent (1.5%) per annum of

the value of the land free and unencumbered made

in accordance with paragraph (c);

(f) when the agricultural land includes a

farmhouse used by the tenant as his sole place of

residence, the rent in respect of that farmhouse

alone shall not exceed two percent (2%) per

annum of the free and unencumbered on the open

market value of the farmhouse

Provided that the Board shall grant the

tenant the option to discontinue the lease of the

farmhouse and to continue only the lease of the

agricultural land at such rent as revised by the

Board in accordance with this sub-article.

(g) the revised rent shall apply for a

period of eight (8) years;

(h) the rent shall remain the same after the

expiration of eight (8) years, unless otherwise

agreed between the tenant and the lessor, or

unless the lessor requests again the increase in

rent according to this article."; and

(c)

in sub-article (3) thereof the words "paragraphs (a),

(b) and (c) of the last preceding sub-article:" shall be substituted

by the words "sub-articles (2) and (2A):".

Article 4 of the principal Act shall be amended by the Amendment of

article 4 of the

following

principal Act.

(a)

the second proviso to sub-article (2) thereof shall be

deleted;

(b) immediately after the first proviso to sub-article (2)

thereof there shall be added the following new provisos

"Provided further that where the agricultural

land includes a farmhouse which is used by the tenant as

his and his family's sole place of residence, the

circumstance mentioned under paragraph (b) shall not be a

sufficient reason to allow the lessor’s application unless the

tenant is allowed to keep the farmhouse at a rent

established by the Board not exceeding two per cent (2%)

per annum of the market value of the farmhouse free and

unencumbered, and under new conditions, including

conditions regarding gradual increases, which may be

established by the Board with respect to the rent

Provided further that the Board shall grant the

tenant the option to discontinue the lease of the farmhouse,

and to continue only the lease of that land which remains

exclusively intended for agricultural use under new

conditions which the Board may establish in respect of the

rent in accordance with article 3

Provided further that any person who has the

right to be recognised as the tenant according to the

definition "tenant" in article 2 shall only acquire the right

to occupy the farmhouse as a residence by a title of lease

for a period of eight (8) years. The rent shall remain the

same after the expiration of eight (8) years, unless

otherwise agreed between the tenant and the lessor, or

unless the lessor again requests the increase in rent in

accordance with this Act.".

Article 14 of the principal Act shall be substituted by the Substitution of

article 14 of the

principal Act.

following new article

" Clause or condition

Except where this Act states that an

depriving the tenant of

agreement may be made between the lessor and

any benefit conferred by

the tenant, any clause or condition which

this Act.

deprives the tenant of any benefit conferred by

this Act, whether such clause or condition has

been stipulated prior to the commencement of

this Act or after such commencement, shall be

null and void.".

5. Immediately after sub-article (1) of article 19 of the principal

Act, there shall be added the following new sub-article

"(1A) The Minister responsible for justice, with the

concurrence of the Minister responsible for agriculture, may

make regulations regarding the procedure, the method and the

criteria that should be followed or to serve as guidelines in the

carrying out of estimates of the value of agricultural land, rents

for agricultural purpose or residential purpose or agricultural

produce made in accordance with any one (1) of the provisions

of this Act. In making regulations under this sub-article due

account shall be taken of the rights of the tenant and of the lessor,

as well as of the national interest in supporting local

agriculture.".

Passed by the House of Representatives at Sitting No. 70 of the 14th

December, 2022.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€0.54