1994 Legislative Session: 3rd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE ANDREW PETTER
MINISTER OF FORESTS

BILL 34 -- 1994

FOREST AMENDMENT ACT, 1994

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 (1) of the Forest Act, R.S.B.C. 1979, c. 140, is amended by repealing the definition of "control of a corporation".

2 Section 7 is amended

(a) by adding the following subsection:

(1.11) If

(a) the allowable annual cut for the tree farm licence area is reduced under section 7.1 (3), and

(b) the chief forester subsequently determines, under subsection (1) of this section, the allowable annual cut for the tree farm licence area, the chief forester must determine an allowable annual cut at least once every 5 years from the date the allowable annual cut under subsection (1) of this section is effective under section 7.1 (6). , and

(b) by repealing subsection (1.2).

3 Section 7.1 is repealed and the following substituted:

Plans, studies, analyses and information

7.1 (1) The chief forester may require the holder of a tree farm licence, at the holder's expense, to

(a) prepare and supply any plans, studies and analyses, and

(b) obtain and supply any information, that the chief forester considers adequate to assist in the determination of an allowable annual cut for the tree farm licence area.

(2) The holder of the tree farm licence must

(a) prepare and supply the plans, studies and analyses, and

(b) obtain and supply the information, required under subsection (1) and must do so at the time and in the form and manner required by the chief forester.

(3) If the chief forester determines that the holder of a tree farm licence has failed to comply with subsection (2), the allowable annual cut for the tree farm licence area in effect at the time of the determination is reduced by 25% effective January 1 of the year following the year in which the determination is made.

(4) If, on the first anniversary of a determination under subsection (3), the chief forester determines that the holder of the tree farm licence has not yet complied with subsection (2), the allowable annual cut in effect immediately before that determination is reduced by 25% effective January 1 of the year following the year in which that determination is made.

(5) If a determination is made by the chief forester under subsection (4) and

(a) subsequent to that determination but before the reduction becomes effective under that subsection, the chief forester determines that the holder has complied with subsection (2), the reduction that was due to come into effect is cancelled, and

(b) after the reduction becomes effective under that subsection, the chief forester determines that the holder has complied with subsection (2), the allowable annual cut in effect immediately before the reduction is restored.

(6) If the allowable annual cut for the tree farm licence area is reduced under subsection (3) or (4), the next allowable annual cut for the tree farm licence area determined by the chief forester under section 7 (1), despite the reduction, is effective on the date the reduction took place under subsection (3).

4 Section 8 (1) is amended by striking out "approved" and substituting "determined".

5 Section 13.1 (2) (c) (ii) is amended by striking out "then approved under section 28 (1) (g) for the surrendered tree farm licences" and substituting "available to the tree farm licence holder at the time of the surrender".

6 Section 28 (1) is amended

(a) by repealing paragraph (g) (i), and

(b) in paragraph (i) (ii) (A) and (B) by striking out "then approved for the tree farm licence" and substituting "available to its holder during that year".

7 Section 29 (2) (b) is amended by striking out "50 (6)" and substituting "50.2 (9)".

8 Section 41 is amended

(a) in subsection (5) by striking out "person, corporation, band or society" and substituting "person, corporation or band", and

(b) in subsection (6) (a) (i) by striking out "or society".

9 Section 49 is amended

(a) in subsection (1) by repealing the definition of "affiliate" and substituting the following:

"affiliate" means a corporation that is affiliated with another corporation within the meaning of subsection (3); ,

(b) in subsection (1) by adding the following definitions:

"control of a corporation" means the holding, other than by way of security only, by or for the benefit of a person or a group of persons not dealing with each other at arm's length, of shares in a corporation that, in an election of the directors of the corporation, carry, in the aggregate, sufficient voting rights, if those rights are exercised, to elect 50% or more of the effective directors or to otherwise effectively control the operations and direction of the corporation;

"effective director" means an effective director as defined in the regulations; ,

(c) in subsection (1) in the definition of "deletion period" by adding the following paragraph:

(a.1) a tree farm licence entered into under section 33.1 and replacements for it, each successive 25 year period commencing with the beginning of the original tree farm licence entered into under that section; ,

(d) in subsection (1) by repealing the definition of "5 year allowable cut" and substituting the following:

"5 year allowable cut" means

(a) in relation to an agreement other than a tree farm licence, the total of the allowable annual cuts in effect during the calendar years comprising a 5 year cut control period for the agreement, and

(b) in relation to a tree farm licence, the total allowable annual cut available to its holder during the calendar years comprising a 5 year cut control period for the agreement; ,

(e) in subsection (1) by adding the following definition:

"holder of an agreement" means a person, other than the Crown, that enters into an agreement, either singly or jointly with another person, and includes the transferee or assignee of an agreement and each partner of a partnership that enters into an agreement or is the transferee or assignee of an agreement; , and

(f) by adding the following subsections:

(3) For the purposes of this Part, one corporation is affiliated with another corporation if one of them is the subsidiary of the other, or both are subsidiaries of the same corporation, or each of them is controlled by the same person.

(4) For the purposes of this Part, a corporation is a subsidiary of another corporation if

(a) it is controlled by

(i) that other corporation,

(ii) that other corporation and one or more corporations, each of which is controlled by that other corporation, or

(iii) 2 or more corporations, each of which is controlled by that other corporation, or

(b) it is a subsidiary of a subsidiary of that other corporation.

(5) For the purposes of subsections (3) and (4), a corporation is controlled by a person if

(a) shares of the corporation carrying 50% or more of the votes for the election of the directors are held, other than by way of security only, by or for the benefit of that person, and

(b) the votes carried by the shares referred to in paragraph (a) are sufficient, if exercised, to elect 50% or more of the directors.

10 Section 50 is repealed and the following substituted:

Consent to transfer

50 (1) The minister's prior written consent must be obtained for

(a) the disposition of an agreement or an interest in an agreement,

(b) the change, or the acquisition or disposal, in one or a series of transactions, of control of a corporation that is the holder of an agreement or of another corporation that, directly or indirectly, controls that corporation,

(c) the amalgamation of a corporation, that is the holder of an agreement with another corporation, and

(d) the disposition of private land in the area subject to a tree farm licence or woodlot licence, or an interest in that private land.

(2) The minister's authority to give prior written consent under subsection (1) in respect of an agreement that is a road permit, free use permit, Christmas tree permit or licence to cut, may be delegated to the regional manager, district manager or both.

(3) Subsection (1) does not apply to

(a) a disposition made by way of security given in good faith, and

(b) the following dispositions, if the holder of an agreement notifies the minister, in the manner and form required by the minister, of the disposition within 3 months of the disposition:

(i) a disposition made on default of a debt security to the holder of that debt security, or to a trustee, receiver or receiver-manager of the holder of that debt security if the subject matter of the disposition is held for less than the prescribed period or one or more further periods that the minister may grant in a particular case if the extension is not detrimental to the public interest;

(ii) a disposition made by way of transmission from the estate of a deceased person to that person's personal representative;

(iii) a change in or acquisition of control of a corporation that is caused by a transmission of shares in its capital from the estate of a deceased person to the person's personal representative.

(4) If the minister gives consent under this section, the minister may, at the time of giving consent, impose those conditions and requirements on that consent that the minister considers necessary or advisable.

Cancellation for failure to obtain consent

50.1 (1) If the minister determines that there has been a failure to obtain the consent required by section 50, the minister may, without notice and despite section 61, cancel the agreement in respect of which the failure occurred.

(2) If the minister determines that there has been a failure to obtain the consent required by section 50, other than a failure that occurred as a result of a failure to meet the requirements of section 50

(3), but decides not to cancel the agreement in respect of which the failure occurred, the minister is deemed to have given consent for the purposes of section 50.2.

(3) If the minister is deemed to have given consent under subsection (2), the minister may

(a) impose those conditions and requirements on that consent that the minister considers necessary or advisable, and

(b) without notice and despite section 61, cancel the agreement in respect of which the deemed consent was given if the minister determines that the conditions and requirements imposed under paragraph (a) are not complied with.

(4) The minister's authority under subsection (1) to cancel an agreement that is a road permit, free use permit, Christmas tree permit or licence to cut may be delegated to the regional manager, district manager or both.

Reduction in allowable annual cut

50.2 (1) If the minister gives consent under section 50 or is deemed to have given consent under section 50.1 (2)

(a) in respect of a replaceable agreement that is a forest licence, timber sale harvesting licence or timber sale licence, the allowable annual cut specified in the licence is reduced by 5%, and

(b) in respect of an agreement that is a tree farm licence, the Crown portion of the allowable annual cut available to the licence holder is reduced by 5%.

(2) If an agreement referred to in subsection (1) is subject to a reduction in allowable annual cut under section 53.1 or 170 at the time the minister gives consent under section 50 or is deemed to have given consent under section 50.1 (2) and the allowable annual cut is subsequently restored, in whole or in part, under section 53.2 or 170 (7), the restored allowable annual cut is, at the time of restoration, deemed to be reduced in accordance with subsection (1).

(3) Subject to subsection (4), the minister may determine the effective date of a reduction of the allowable annual cut under subsection (1) that is the result of consent which is deemed to have been given under section 50.1 (2).

(4) The effective date determined under subsection (3) may be a date before the date on which the minister determines that there has been a failure to obtain consent under section 50 but must not be a date before the date on which the transaction in respect of which consent was required occurred.

(5) If the minister gives consent under section 50 or is deemed to have given consent under section 50.1 (2) in respect of a timber licence, the holder of the licence must

(a) submit to the minister an independent current appraisal, that is satisfactory to the minister and is prepared by a professional forester, of the value of the timber standing within the area of the timber licence, and

(b) pay to the Crown, by a date specified by the minister, an amount that is 5% of the greater of the following amounts:

(i) the value that the holder of the licence declared the licence to have when the holder made the application for consent under section 50;

(ii) the independent current appraisal of the value of the timber.

(6) Subsections (1) and (5) do not apply to consent given under section 50 or consent deemed to have been given under section 50.1 (2) with respect to the following transactions:

(a) a beneficial transfer, by a deceased person's personal representative, of an agreement or an interest in an agreement, or of the control of a corporation that holds an agreement, to

(i) the spouse of the deceased person,

(ii) a child, grandchild or parent of the deceased person, or

(iii) the spouse of a child or grandchild of the deceased person;

(b) a disposition of an agreement or an interest in an agreement from a corporation to an affiliate corporation;

(c) a change in, or acquisition of control of, a corporation between affiliate corporations;

(d) an amalgamation of affiliate corporations;

(e) the disposition of private land in the area subject to a tree farm licence or woodlot licence, or an interest in that private land.

(7) A reduction under subsection (1) or an obligation to pay under subsection (5) (b), other than a reduction or obligation to pay in respect of a consent deemed to have been given under section 50.1 (2), is effective 14 days after the date on which consent is given unless the minister receives notice in writing, prior to the expiration of the 14 day period, that the transaction in respect of which consent was given will not take place within the 14 day period, in which case the consent is deemed not to have been given.

(8) If a person fails to comply with an obligation to pay by the date specified by the minister under subsection (5) (b), the minister may, without notice and despite section 61, cancel the agreement in respect of which the failure occurred.

(9) If the reduction of the allowable annual cut referred to in subsection (1) occurs in respect of a tree farm licence, the minister or a person authorized by the minister may, in accordance with this Act,

(a) dispose of a volume of timber from within the area of the tree farm licence up to the amount of the reduction, or

(b) delete from the licence an area of Crown land within the area of the tree farm licence that the chief forester determines to be capable of producing an allowable annual cut not greater than the reduction.

(10) No compensation is payable under this Act or otherwise in respect of a reduction under subsection (1).

(11) The minister may waive the requirements of subsection (1) in respect of

(a) a disposition of an agreement or an interest in an agreement to a business enterprise, as defined in the Job Protection Act, that is a participant in an economic plan under that Act and acquires the agreement or interest disposed of in furtherance of the economic plan,

(b) a change in or acquisition of control of a corporation that occurs in furtherance of an economic plan, in which the corporation is a participant, under the Job Protection Act, or

(c) an amalgamation of corporations that occurs in furtherance of an economic plan under the Job Protection Act.

(12) Subsection (11) and this subsection are repealed on April 12, 1995.

11 Section 53 (1) (a) is amended by striking out "approved" and substituting "determined".

12 Section 55 is amended

(a) by repealing subsection (1) and substituting the following:

(1) The holder of a replaceable agreement, other than a tree farm licence, must ensure that

(a) the volume of timber harvested during a calendar year under the agreement is not less than 50% nor more than 150% of the allowable annual cut specified in the agreement, and

(b) the volume of timber harvested during a 5 year cut control period under the agreement is not less than 90% nor more than 110% of the total of the allowable annual cuts specified in the agreement during that 5 year period.

(1.1) The holder of a tree farm licence must ensure that

(a) the volume of timber harvested during a calendar year under the licence is not less than 50% nor more than 150% of the allowable annual cut available to the holder during that calendar year, and

(b) the volume of timber harvested during a 5 year cut control period under the licence is not less than 90% nor more than 110% of the total allowable annual cut available to the holder during that 5 year period. , and

(b) by repealing subsection (3) and substituting the following:

(3) If the allowable annual cut specified in a forest licence is less than 50 000 m3, the regional manager may, on application of the licence holder, substitute a different requirement from that set out in subsection (1) (a).

(4) If the allowable annual cut available to a tree farm licence holder is less than 50 000 m3, the regional manager may, on application of the licence holder, substitute a different requirement from that set out in subsection (1.1) (a).

13 Section 55.1 is amended

(a) in subsection (1) (a) by striking out "section 55 (1)" and substituting "section 55 (1) or (1.1)",

(b) in subsection (1) (b) by striking out "section 55 (3)," and substituting "section 55 (3) or (4),",

(c) in subsection (2) (a) by striking out "section 55 (1) (a)" and substituting "section 55 (1) (a) or (1.1) (a)",

(d) in subsection (2) (b) by striking out "section 55 (1) (b) or substituted under section 55 (3)" and substituting "section 55 (1) (b) or (1.1) (b) or substituted under section 55 (3) or (4)",

(e) in subsection (3) by striking out "section 55 (1)." and substituting "section 55 (1) or (1.1).", and

(f) in subsection (6) by striking out "section 53.1," and substituting "section 7.1, 50.2, 53.1,".

14 Section 55.2 is amended

(a) in subsection (4) by striking out "section 55 (1) (a)" and substituting "section 55 (1.1) (a)", and

(b) in subsection (5) by striking out "section 55 (1) (b)" and substituting "section 55 (1.1) (b)".

15 Section 55.3 (1) is amended by striking out "section 55 (1) (a)" and substituting "section 55 (1) (a) or (1.1) (a)".

16 Section 55.4 is amended by striking out "indentifies" and substituting "identifies".

17 Section 55.5 (1) is repealed and the following substituted:

(1) If

(a) a tree farm licence or a management plan approved under it specifies, or

(b) the chief forester, in relation to a tree farm licence, specifies under section 7 (1.3) that portions of the allowable annual cut for the tree farm licence are to be harvested from different types of timber or terrain or from different parts of Crown land or private land within the tree farm licence area and the holder of the tree farm licence fails to harvest a portion of the allowable annual cut so specified, the chief forester, in a notice served on the holder, may reduce the allowable annual cut available to the holder by a volume equal to the specified portion that was not so harvested.

(1.1) Crown timber within the tree farm licence area may be disposed of under this Act to persons other than the holder of the tree farm licence in a volume that does not exceed the reduction under subsection (1).

18 Section 56.01 is amended

(a) in subsection (1) by striking out "and" at the end of paragraph (d), by repealing paragraph (e) and by substituting the following:

(e) in a notice served on the holder of a replaceable agreement or agreements, as the case may be, other than a tree farm licence, the minister may reduce the allowable annual cut specified by or under the agreement or agreements by a total volume not greater than the difference in the average annual volume determined under paragraph (d), and

(f) in a notice served on the holder of a tree farm licence or licences, as the case may be, the minister may reduce the allowable annual cut available to the holder by a total volume not greater than the difference in the average annual volume determined under paragraph (d). ,

(b) in subsection (2) by striking out "subsection (1) (e)," and substituting "subsection (1) (e) or (f),", and

(c) in subsection (2) (a) by striking out "section 7, 50," and substituting "section 7, 7.1, 50.2,".

19 Section 63 is amended by striking out "section 7 (1) to (1.2)," and substituting "section 7 (1) and (1.1), 7.1 (3) and (4),".

20 Section 90 (1) (b) is amended by striking out "the allowable annual cut approved for the tree farm licence" and substituting "the allowable annual cut available to the licence holder during the year to which the total annual rent pertains".

21 Section 129.7 is amended

(a) by repealing subsection (5) and substituting the following:

(5) If, pursuant to a woodlot licence or a major licence other than a tree farm licence, the holder of the licence receives authority to harvest timber from an area specified in the authority and

(a) harvests timber within that area, and

(b) after harvesting, fails to establish a free growing crop on the whole of that area in accordance with the requirements of the pre- harvest silviculture prescription applicable in respect of that area, then, except as otherwise provided by the regulations, the regional manager must, in a notice served on the holder of the licence, reduce the allowable annual cut authorized by or under the licence by a volume equal to 5% of the total volume of timber that the regional manager determines to have been harvested from the area specified in the authority.

(5.1) If, pursuant to a tree farm licence, the holder of the licence receives authority to harvest timber from an area specified in the authority and

(a) harvests timber within that area, and

(b) after harvesting, fails to establish a free growing crop on the whole of that area in accordance with the requirements of the pre- harvest silviculture prescription applicable in respect of that area, then, except as otherwise provided by the regulations, the regional manager must, in a notice served on the holder of the licence, reduce the allowable annual cut available to the holder by a volume equal to 5% of the total volume of timber that the regional manager determines to have been harvested from the area specified in the authority. , and

(b) in subsection (6) by striking out "subsection (5)" wherever it appears and substituting "subsection (5) or (5.1)".

22 Part 14 is amended by repealing the heading to that Part and substituting:

Reviews, Appeals, Regulations, Penalties .

23 Division (1) of Part 14 is repealed and the following substituted:

Division (1) -- Reviews

Determinations that may be reviewed

154 (1) A review may be required under this Division of a determination, order or decision of

(a) a forest officer under sections 60, 84 (1) and 117 (1), and under a woodlot licence respecting the determination of the volume of timber to be harvested during each year or other period of its term,

(b) a district manager under sections 59 (1) and (5), 60, 61 (1) (c), 61.1, 90 (2), 97 (2), 117 and 139 (1) (a), and under a woodlot licence respecting the determination of the volume of timber to be harvested during each year or other period of its term, and

(c) a regional manager under sections 49 (1), 52, 55.2 (6) (b), 56, 56.01 (1) (d), 58, 59 (1) and (5), 60, 61 (1) (b), 84 (1), 90 (2), 97 (2), 117 (1), 119 (1), 122 and 139 (1) (a), and under a woodlot licence respecting the determination of the volume of timber to be harvested during each year or other period of its term.

(2) A review of the determinations, orders and decisions referred to

(a) in subsection (1) (a) and (b) is to be conducted by the regional manager, and

(b) in subsection (1) (c) is to be conducted by the chief forester.

(3) If a review is to be conducted by the chief forester or the regional manager under subsection (2), the chief forester or regional manager may delegate the power to decide the review to an official in the Ministry of Forests.

(4) A person who exercises a power through a delegation made under subsection (3) is required to comply with the requirements of this Division in respect of the exercise of that power and a decision of the delegate is a decision of the person who delegated the power to decide for the purposes of this Act.

(5) For the purpose of subsection (1), a redetermination or variation of stumpage rates under section 84 (1) is deemed to be a determination.

Request for review

154.1 (1) Where under the provisions referred to in section 154 (1) a determination, order or decision is made, the person

(a) in respect of whom it is made, or

(b) in respect of whose agreement it is made may request a review of the determination, order or decision by serving a written request for review on the person responsible for conducting the review under section 154 (2).

(2) The person must, as part of the request, attach a written statement explaining why the person believes the determination, order or decision is wrong and ensure that the written request meets the content requirements of the regulations.

(3) The person must serve the request on the person responsible for conducting the review under section 154 (2) not later than 21 days after the date the notice of determination, order or decision is served on the person.

(4) Before or after the time limit in subsection (3) expires, the person responsible for conducting the review under section 154 (2) may extend it.

(5) A person who does not serve the request for review within the time required under subsection (3) or (4) loses the right to require a review.

Powers on review

154.2 (1) The person responsible for conducting a review under section 154 (2) or (3) may

(a) decide the matter based on an oral hearing, or

(b) decide the matter without an oral hearing and based on

(i) the written explanation that is part of the request, or

(ii) the written explanation and any other communication with persons that the person conducting the review considers is necessary to decide the matter including communication with the person requesting the review and the person who made the determination, order or decision under review.

(2) The person responsible for conducting the review may confirm, vary or rescind the determination, order or decision or refer it back to the person who made it, with or without directions.

(3) A written decision must be served on the person who requested the review not later than 60 days after a written request for review is served under section 154.1 (1).

(4) Despite subsection (3), if the person conducting the review determines that the written request for review does not comply with the content requirements of the regulations, the 60 day period referred to in that subsection does not begin to run until a written request for review that does comply with the content requirements of the regulations is served on the person conducting the review.

(5) A person conducting a review of a determination made under section 84 must apply the policies and procedures approved by the minister under section 84 that were in effect at the time of the initial determination being reviewed.

(6) Unless the minister orders otherwise, a review of a determination, order or decision does not operate as a stay or suspend the operation of the determination, order or decision.

 
Division (1.1) -- Appeals

Determinations that may be appealed

155 (1) Subject to subsection (3), an appeal may be made to an appeal board from a determination, order or decision of

(a) a forest officer, district manager or regional manager under the provisions referred to in section 154 (1) (a) to (c),

(b) the chief forester under sections 53 (2), 55.4, 61 (1) (a) and 90 (1), and under section 7 in respect of an allowable annual cut for a tree farm licence area, and

(c) the chief forester by way of determination, under section 55.2 (4) (b) or (5) (b), of the area of Crown land that is capable of producing an annual cut not greater than a deficiency in the volume of timber harvested.

(2) No appeal may be made under subsection (1) unless the determination, order or decision has first been reviewed under Division (1) of this Part.

(3) If a determination, order or decision referred to in subsection (1) (a) is varied by the person conducting a review under section 154.2, the appeal to the appeal board is from the determination, order or decision as varied under that section.

(4) Where this Act or an agreement entered into under this Act gives a right of appeal, this Division applies to the appeal.

Notice of appeal

155.1 (1) Where under the provisions referred to in section 155 a determination, order or decision is made, the person

(a) in respect of whom it is made, or

(b) in respect of whose agreement it is made may appeal the determination, order or decision by

(c) serving a written notice of appeal on the minister not later than 21 days after the date the written decision is served on the person under section 154.2 (3), and

(d) enclosing a copy of the determination, order or decision appealed from and a written statement explaining why the determination, order or decision is wrong.

(2) If the appeal is from a determination, order or decision as varied under section 154.2, the person bringing the appeal must include under subsection (1) of this section a copy of the determination, order or decision as varied and a written statement explaining why the variation is inadequate.

(3) The appellant must ensure that the notice of appeal served under subsection (1) complies with the content requirements of the regulations.

(4) Before or after the time limit in subsection (1) expires, the minister may extend it.

(5) A person who does not serve the notice of appeal within the time required under subsection (1) or (4) loses the right to an appeal.

Establishment of appeal board

155.2 (1) The Lieutenant Governor in Council must, within 30 days after service of the notice of appeal under subsection 155.1 (1),

(a) appoint not more than 3 persons to the appeal board and establish its terms of reference, and

(b) fix the remuneration each person is to receive for each day the person is engaged in the appeal.

(2) Within 14 days after the appointments, the minister must serve the appellant with notice of the appointment of, and the terms of reference for, the appeal board.

(3) The appeal board must hold a hearing within 45 days after its appointment.

(4) Despite subsection (3), if the appeal board determines that the written notice of appeal does not comply with the content requirements of the regulations, the appeal board does not have to hold a hearing within the 45 day period referred to in that subsection but does have to hold a hearing within 45 days after a written notice of appeal that does comply with the regulations is served.

(5) If the appellant requests it in the notice of appeal, the appellant must be given an oral hearing.

(6) If an oral hearing is convened under subsection (5), the chief forester, the regional manager, the district manager or a forest officer and the appellant may make submissions.

(7) The appeal board may

(a) receive and examine evidence and information on oath or affirmation, by affidavit or otherwise which in its discretion it considers proper, whether or not the evidence is admissible in a court, and

(b) make such examinations of records and inquiries as it considers necessary, and a member of the board may administer an oath or affirmation.

(8) The appeal board has the same power for the purposes of an appeal under this Division

(a) to summon and enforce the attendance of a witness,

(b) to compel a witness to give evidence on oath or affirmation or in any other manner, and

(c) to compel a witness to produce records and things in the witness's possession or control, as the Supreme Court has for the trial of civil actions.

(9) The appeal board must, within 21 days after the conclusion of the hearing, serve copies of its written decision on the minister and the appellant.

Powers of appeal board

155.3 (1) An appeal board may, with respect to a determination, order or decision being appealed, including a determination, order or decision that was varied under section 154.2

(a) confirm, vary or rescind the determination, order or decision,

(b) with or without directions, refer the determination, order or decision back to the person that made it or in the case of a determination, order or decision that was varied under section 154.2, to the person that varied it, and

(c) make such other order as the appeal board considers appropriate in the circumstances.

(2) If the appeal board decides an appeal of a determination made under section 84, the appeal board must, in deciding the appeal, apply the policies and procedures approved by the minister under section 84 that were in effect at the time of the initial determination being reviewed.

(3) In its decision the appeal board may order that either party pay to the other costs in respect of the appeal, and unless the decision of the appeal board is reversed, varied or referred back under section 155.4 (1), the order has, after it is filed in the court registry, the same effect as an order of the court for the recovery of a debt in the amount stated in the order against the person named in it, and all proceedings may be taken as if it were an order of the court.

(4) Unless the minister orders otherwise, an appeal under this Division does not operate as a stay or suspend the operation of the determination, order or decision under appeal.

Appeal to the courts

155.4 (1) The appellant or the minister may, by application to the Supreme Court made within 21 days after the decision of an appeal board is served on the appellant or the minister, appeal the decision of the appeal board on a question of law or jurisdiction.

(2) A decision of the Supreme Court may be appealed to the Court of Appeal with leave of a justice of the Court of Appeal.

24 Section 158 is amended

(a) in subsection (2) by striking out "and" at the end of paragraph (v) and by adding the following:

(bb) the definition of "effective director" for the purposes of section 49 (1);

(cc) the practices and procedures to be followed by

(i) persons responsible for conducting reviews under section 154 (2) or (3), and

(ii) appeal boards established under section 155.2; and

(dd) the content of requests for review under section 154.1 and the content of notices of appeal under section 155.1. , and

(b) by adding the following subsection:

(7) A regulation made under subsection (2) (cc) or (dd) may provide differently

(a) for requests for review and notices of appeal, and

(b) for different determinations, decisions and orders being reviewed or appealed.

25 Section 170 is amended

(a) by repealing subsections (1) and (2) and substituting the following:

(1) In subsections (2.1) to (2.3)

"base level allowable annual cut" means the allowable annual cut that is prescribed for the purposes of this section;

"exempt licence" means a licence described in subsection (2.2);

"licence" means a forest licence or timber sale licence.

(2) The chief forester may, by written order, reduce the allowable annual cut of

(a) a timber supply area, or

(b) a tree farm licence area, if all or part of the area is a designated area.

(2.1) If the chief forester reduces the allowable annual cut of a timber supply area under subsection (2), the minister may, by written order

(a) proportionately reduce, by the method set out in subsection (2.3), the allowable annual cut authorized in all of the licences that are not exempt licences in the timber supply area, or

(b) reduce the allowable annual cut authorized or deemed to be authorized in a licence if all or part of the area from which timber may be harvested under the licence is a designated area.

(2.2) An exempt licence is a licence that

(a) specifies an allowable annual cut that is less than the base level allowable annual cut, or

(b) is for a term that is less than the prescribed term.

(2.3) A reduction in allowable annual cut imposed under subsection (2.1) (a) in a timber supply area must be apportioned among all the licences in that area, except exempt licences, in accordance with the following method:

(a) first, calculate a reduction in allowable annual cut for each licence by distributing the part of the reduction under subsection (2) that the minister may assign to the licences proportionately among them according to the relative sizes of the allowable annual cut specified in each licence;

(b) second, calculate for each licence the annual volume of timber, if any, by which the calculations under this subsection reduce the allowable annual cut for that licence to less than the base level allowable annual cut;

(c) third, calculate the aggregate of the annual volumes of timber calculated under paragraph (b);

(d) fourth, for each licence for which the calculation under paragraph (b) does not reduce the allowable annual cut to less than the base level allowable annual cut, calculate a further reduction in allowable annual cut by distributing the amount determined under paragraph (c) proportionately among those licences according to the relative sizes of the allowable annual cut specified in each of them;

(e) fifth, repeat the calculations under paragraphs (b) to (d) until the end result of all the calculations is that the allowable annual cut for any of the licences is not reduced to a level that is less than the base level allowable annual cut. ,

(b) in subsection (4) by striking out "subsection (1), (2) or (3)" wherever it appears and substituting "subsection (2), (2.1) or (3)",

(c) in subsection (6) by striking out "subsection (1), (2), (3) or (4)" and substituting "subsection (2), (2.1), (3) or (4)",

(d) in subsection (7) by adding at the end "less any reductions made under this Act, other than reductions made under this section, during the period that the order was in effect", and

(e) in subsection (8) by striking out "subsection (1)" and substituting "subsection (2)".

 
Consequential Amendments

 
Range Act

26 Section 37 of the Range Act, R.S.B.C. 1979, c. 355, is repealed and the following substituted:

Review and appeal

37 (1) A review may be required of a determination, order or decision of

(a) a forest officer under section 30, and under a licence or permit,

(b) a district manager under section 27, 28, 30, 31 and 42.1, and under a licence or permit, and

(c) a regional manager under section 27, 28, 30 and 31, and under a licence or permit.

(2) A review of the determination, order and decision referred to

(a) in subsection (1) (a) and (b) is to be conducted by the regional manager, and

(b) in subsection (1) (c) is to be conducted by the chief forester.

(3) If a review is to be conducted by the chief forester or the regional manager under subsection (2), the chief forester or regional manager may delegate the power to decide the review to an official in the Ministry of Forests.

(4) Subject to subsection (5), an appeal may be made to an appeal board from a determination, order or decision of a forest officer, district manager or regional manager under the provisions referred to in subsection (1) but only if the determination, order or decision has first been reviewed.

(5) If a determination, order or decision referred to in subsection (1) is varied by the person conducting a review, the appeal to the appeal board is from the determination, order or decision as varied.

(6) The procedures and powers in respect of reviews and appeals under the Forest Act apply to reviews and appeals under this section.

Transitional

27 (1) If a tree farm licence contains a provision that requires

(a) a management plan to propose or specify an allowable annual cut, or

(b) the chief forester to approve a management plan that specifies an allowable annual cut that the chief forester determines may be sustained from the tree farm licence area having regard to the factors set out in the tree farm licence, that provision of the tree farm licence is, as a result of the repeal of section 7 (1.2) of the Forest Act, deemed to be amended by striking out those provisions.

(2) An appeal in progress under the Forest Act or the Range Act on the day that this section comes into force must continue to be decided in the manner provided for in the Forest Act when the appeal was commenced.

Commencement

28 (1) This Act, other than sections 2 (a), 3 and 9 (c), comes into force by regulation of the Lieutenant Governor in Council.

(2) Section 9 (c) is deemed to have come into force on August 22, 1980 and is retroactive to the extent necessary to give it effect on and after that date.

 
Explanatory Notes

SECTION 1: amends section 1 of the Forest Act by repealing the definition of "control of a corporation". Section 9 of this Bill adds the definition to Division (1) of Part 4 of the Act.

SECTION 2: amends section 7 of the Forest Act to

(a) adjust the time periods for the chief forester's obligation to determine an allowable annual cut as a result of a reduction under section 7.1 (3), and

(b) repeal subsection (1.2) consequential to the repeal of section 28 (1) (g) (i).

SECTION 3: repeals and replaces section 7.1 of the Forest Act to enhance the ability of the chief forester to require information from licence holders that is necessary for determining an allowable annual cut. Subsections (3) and (4) provide for automatic reductions in allowable annual cut for failure to supply that information. Under subsection (6), the reductions are replaced with the allowable annual cut next determined under section 7 (1).

SECTION 4: amends section 8 of the Forest Act to make a minor correction in language.

SECTION 5: amends section 13.1 of the Forest Act to make a minor correction in language.

SECTION 6: amends section 28 of the Forest Act to

(a) remove the requirement to specify an allowable annual cut in a management plan, and

(b) make a minor correction in language.

SECTION 7: amends section 29 of the Forest Act consequential to the repeal and replacement of section 50 of the Act.

SECTION 8: amends section 41 (5) and (6) of the Forest Act to remove references to societies consequential to previous amendments made by other Acts.

SECTION 9: amends section 49 of the Forest Act to

(a) repeal and replace the definition of "affiliate",

(b) add definitions of "control of a corporation" and "effective director",

(c) extend the definition of "deletion period" to licences entered into under section 33.1 of the Act,

(d) make a minor correction in the language of the definition of "5 year allowable cut",

(e) add a definition of "holder of an agreement" for the purposes of sections 50 to 50.2 of the Act, and

(f) add subsections (3) to (5) for the purposes of the definition of "affiliate".

SECTION 10: repeals section 50 of the Forest Act and replaces it with sections 50 to 50.2. Section 50 requires the minister's consent for certain transfers with respect to tenure agreements and changes in control of corporations holding tenure agreements. Section 50.1 allows the minister to cancel an agreement in respect of which a failure to obtain consent under section 50 occurred. Section 50.2 provides for a 5% reduction in allowable annual cut if consent is given or deemed to have been given with respect to a transaction.

SECTION 11: amends section 53 (1) (a) of the Forest Act to make a minor correction in language.

SECTION 12: amends section 55 of the Forest Act to

(a) make a minor correction in the language of subsection (1) and add subsection (1.1) to distinguish between tree farm licences and other replaceable agreements, and

SECTION 13: amends section 55.1 of the Forest Act to correct cross references in subsections (1) (a) and (b), (2) (a) and (b), (3) and (6).

SECTION 14: amends section 55.2 of the Forest Act to correct cross references in subsections (4) and (5).

SECTION 15: amends section 55.3 (1) of the Forest Act to correct a cross reference.

SECTION 16: amends section 55.4 of the Forest Act to correct a typographical error.

SECTION 17: amends section 55.5 of the Forest Act to correct a cross reference and to make a change consequential to the repeal of section 28 (1) (g) (i).

SECTION 18: amends section 56.01 of the Forest Act to

(a) make a minor correction in the language of subsection (1) (e) and add subsection (1) (f) to distinguish between tree farm licences and other replaceable agreements, and

(b) and (c) correct cross references in subsection (2).

SECTION 19: amends section 63 of the Forest Act to correct a cross reference.

SECTION 20: amends section 90 (1) (b) of the Forest Act to make a minor correction in language.

SECTION 21: amends section 129.7 of the Forest Act to

(a) make a minor correction in the language of subsection (5) and add subsection (5.1) to distinguish between tree farm licences and other replaceable agreements, and

(b) correct a cross reference in subsection (6)

consequential to the addition of subsection (5.1).

SECTION 22: repeals and replaces the title of Part 14 of the Forest Act consequential to section 23.

SECTION 23: repeals Division (1) of Part 14 of the Forest Act and replaces it with Divisions (1) and (1.1).

SECTION 24: amends section 158 of the Forest Act to

(a) add regulation making powers to subsection (2) with respect to the definition of "effective director" in section 49 (1) and with respect to the conduct of reviews and appeals under Part 4 of the Act, and

(b) add subsection (7) which relates to the regulation making powers added to subsection (2).

SECTION 25: amends section 170 of the Forest Act to

(a) repeal subsection (1) and (2) and replace them with subsection (1) which provides definitions, subsection (2) which is the same as the current provision in subsection (1), subsection (2.1) which provides for the proportionate reduction in allowable annual cut in all licences, except exempt licences, in a timber supply area, subsection (2.2) which defines exempt licences and subsection (2.3) which provides the method for the proportionate reduction,

(b) correct a cross reference in subsection (4) consequential to the repeal and replacement of subsections (1) and (2),

(c) correct a cross reference in subsection (6),

(d) clarify in subsection (7) that an allowable annual cut returned to a licence is net of any reductions made under other sections of the Act, and

(e) correct a cross reference in subsection (8).

SECTION 26: repeals and replaces section 37 of the Range Act, consequential to the replacement of Division (1) of Part 14 of the Forest Act. Subsection (5) provides that the procedures and powers in respect of reviews and appeals under the Forest Act apply to reviews and appeals under the Range Act.

SECTION 27: contains transitional provisions relating to amendments made to the Forest Act. Subsection (1)

provides that tree farm licences are deemed to be amended as the result of the repeal of section 7 (1.2) of the Forest Act. Subsection (2) provides that an appeal in progress when this section comes into force must continue under the former rules.


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