1995 Legislative Session: 4th 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 42 -- 1995

FOREST AMENDMENT ACT, 1995

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

1 Section 7 of the Forest Act, R.S.B.C. 1979, c. 140, is amended

(a) in subsections (1) and (1.1) by striking out "1995" and substituting "1996", and

(b) by adding the following subsection:

(1.12) If the allowable annual cut for the tree farm licence area is reduced under section 7.1 (3), the chief forester is not required to make the determination under subsection (1) or (1.1) of this section at the times set out in subsection (1) or (1.1) (c) or (d), but must make that determination within one year after the chief forester determines that the holder is in compliance with section 7.1 (2).

2 Section 23 is repealed.

3 Section 25 (g) is amended by striking out "or royalty under Part 7 in accordance with the election made under section 23;" and substituting "under Part 7;".

4 Section 28 (1) (c) (ii) is amended by striking out ", or royalty under Part 7, as elected under section 23".

5 The following section is added:

Change in area or boundary

43.1 (1) Subject to section 42 (b) (ii), the district manager or regional manager may, in accordance with the regulations and with the consent of the holder of the woodlot licence, change the boundary or area of a woodlot licence that was offered under section 43 (1) or entered into under section 43 (5) between July 1, 1993 and March 31, 1995.

(2) This section is repealed on July 1, 1998.

6 Section 46 (2) (e) is amended by striking out "or royalty".

7 Section 47 (2) is amended by striking out everything after "district manager" and substituting "and, subject to section 82, shall require payment of stumpage."

8 Section 81 is repealed and the following substituted:

Amount of stumpage

81 Subject to sections 86 and 87, where stumpage is payable to the Crown in respect of Crown timber under section 82 or under an agreement entered into under this or the former Act, the amount payable shall be calculated by multiplying the volume or quantity of the timber

(a) reported in a scale made under Part 6, or

(b) calculated under section 85 using information provided by a cruise of the timber

by the rate of stumpage applicable to the timber under section 84 when the timber is scaled.

9 Section 82 is amended

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

(1) Notwithstanding any other Act, any election made under section 23 of this Act, before that section was repealed by the Forest Amendment Act, 1995, or any agreement, the holder of

(a) an old temporary tenure,

(b) a timber licence, or

(c) a licence to cut

shall pay stumpage to the Crown at rates determined under section 84 for timber that is cut under the tenure or licence and scaled. ,

(b) by repealing subsections (3) and (5), and

(c) by adding the following subsection:

(6) Notwithstanding subsection (1), no stumpage is payable in respect of timber cut on land granted by Canada by letters patent and situated within the Railway Belt or Peace River Block.

10 Section 84 is amended by adding the following subsections:

(1.01) Rates, policies and procedures under subsection (1) may be different for different timber, places, transactions, holders of agreements entered into under this or the former Act or holders of old temporary tenures.

(1.02) Notwithstanding subsection (1), but subject to the regulations made under subsections (4) and (5), the holder of

(a) an old temporary tenure, or

(b) a timber licence

shall pay stumpage to the Crown at a percentage of the rates determined under subsection (1).

(1.03) The percentage referred to in subsection (1.02) is

(a) 100% of the rates referred to as "miscellaneous stumpage rates", in policies and procedures approved from time to time by the minister under subsection (1), and

(b) for rates not referred to in paragraph (a), the percentage set out in column 2 opposite the time period in column 1 in which the stumpage rate is determined.

Column 1
Time Period

Column 2
Percentage of Stumpage Rate

on and after April 1, 1995 to and including March 31, 1996

60

on and after April 1, 1996 to and including March 31, 1997

67

on and after April 1, 1997 to and including March 31, 1998

73

on and after April 1, 1998 to and including March 31, 1999

80

on and after April 1, 1999 to and including March 31, 2000

87

on and after April 1, 2000 to and including March 31, 2001

93

on and after April 1, 2001

100

11 Section 85 is amended by striking out "royalty or".

12 Section 86 is repealed and the following substituted:

More than one rate

86 Where the regional manager considers it appropriate and where more than one stumpage rate applies to timber cut in a timber harvesting operation, a single rate of stumpage, calculated as the average of the rates that otherwise would be applicable and weighted according to the respective volumes of timber estimated by the regional manager to be subject to each rate, is payable on the timber.

13 Section 93 (b) (ii) is amended by striking out "where royalty is not otherwise payable under this Act".

14 Section 158 (2) (z) (iii) and (iv) are amended by striking out "royalty or".

15 Section 159 (e) is amended by adding "or" after "section 135;".

 
Consequential Amendments

 
Forest Practices Code of British Columbia Act

16 Section 278 of the Forest Practices Code of British Columbia Act, S.B.C. 1994, c. 41, is amended in the substituted section 93 (c) of the Forest Act by striking out "royalty or".

17 Section 293 (c) is repealed.

Transitional

18 (1) A rate, policy or procedure referred to in section 84 (1) relating to a stumpage rate for an old temporary tenure, icence or licence to cut may be made retroactive to April 1, 1995.

(2) The Royalty Rate Regulation, B.C. Reg. 126/95, is repealed effective the beginning of April 1, 1995.

(3) The government must apply any royalty collected under the Royalty Rate Regulation, B.C. Reg. 126/95, for timber scaled on or after April 1, 1995, towards stumpage owing for the same timber for which the royalty was collected.

(4) Any bill received by a person for royalties referred to in the Royalty Rate Regulation, B.C. Reg. 126/95, in respect of timber scaled on or after April 1, 1995, is deemed to be a bill for stumpage for the same timber.

Minister's discretion with respect to certain licences

19 (1) The minister may dispose of timber in the Strathcona Timber Supply Area under an agreement referred to in section 10 of the Forest Act, if

(a) the minister considers the disposition necessary to offset any adverse impact on the communities of Tahsis, Gold River and Zeballos, caused by the implementation of Scenario 2 contained in the Report of the Chair of the Protected Area Boundary Advisory Team, dated October, 1994, and titled, "Completing the Protected Area System on Vancouver Island", and

(b) the holders of the licences referred to in subsection (2) consent to the licence amendments referred to in that subsection.

(2) With the consent of the holders of the licences, and for a period of one year after this section comes into force, the minister is authorized

(a) to amend Forest Licence No. A 19237,

(i) to reduce the term of the licence to 2 years,

(ii) to make the licence non-replaceable,

(iii) to reduce, for the term of the licence, the allowable annual cut specified in the licence, by an amount equal to the increase in the allowable annual cut available to the holder of Tree Farm Licence No. 6 as a result of the amendment under paragraph (b), and

(iv) to make other amendments the minister considers necessary, and

(b) if the licence holders consent to the amendments under paragraph (a), to amend Tree Farm Licence No. 6 to increase the portion of the allowable annual cut available to the licence holder under that licence by an amount that does not exceed the total of the reductions in the allowable annual cut available to the holder of that licence that has been made pursuant to

(i) section 33 of the Forest Amendment Act, 1988, S.B.C. 1988, c. 37, and

(ii) the minister's consent under section 50 of the Forest Act.

Commencement

20 (1) Sections 2 to 4, 6 to 14 and 18 are deemed to come into force on April 1, 1995, and are retroactive to the extent necessary to give them effect on and after that date.

(2) Sections 15 to 17 are deemed to come into force on June 15, 1995, and are retroactive to the extent necessary to give them effect on and after that date.

 
Explanatory Notes

SECTION 1: [Forest Act, amends section 7]

(a) extends the deadline for completing the allowable annual cut review, and

(b) relieves the chief forester from the obligation to make a determination until after receiving information needed to make the determination.

SECTION 2: [Forest Act, repeals section 23] deletes a section that provides for an election to pay royalty, consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 3: [Forest Act, amends section 25] deletes a reference to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 4: [Forest Act, amends section 28] deletes a reference to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 5: [Forest Act, adds section 43.1] authorizes consensual boundary changes for woodlot licences.

SECTION 6: [Forest Act, amends section 46] deletes a reference to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 7: [Forest Act, amends section 47] deletes a reference to "royalty" and adds a reference to section 82 of the Forest Act, both consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 8: [Forest Act, reenacts section 81] deletes references to "royalty" and clarifies that stumpage may be payable under section 82 of the Forest Act or under an agreement consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 9: [Forest Act, amends section 82] requires the holder of an old temporary tenure, the holder of a timber licence and the holder of a licence to cut to pay stumpage instead of royalty and excepts some timber from stumpage.

SECTION 10: [Forest Act, amends section 84] authorizes different rates, policies and procedures for stumpage consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 11: [Forest Act, amends section 85] deletes a reference to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 12: [Forest Act, reenacts section 86] deletes references to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 13: [Forest Act, amends section 93] deletes a reference to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 14: [Forest Act, amends section 158] deletes references to "royalty" consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 15: [Forest Act, amends section 159] is housekeeping.

SECTION 16: [Forest Practices Code of British Columbia Act, amends section 278] deletes a reference to "royalty" in section 93 (c) of the Forest Act consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 17: [Forest Practices Code of British Columbia Act, amends section 293] is housekeeping.

SECTION 18: [Forest Act -- transitional] provides a transition from royalty to stumpage consequential to the amendment to section 82 of the Forest Act made by this Bill.

SECTION 19: [Minister's discretion with respect to certain licences] authorizes the minister to dispose of timber and amend certain licences.


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