Explanatory Notes

SECTION 1: [Forest Act, section 1] adds definitions of "commissioner", "dwelling" and "revenue minister" and changes a cross reference.

SECTION 2: [Forest Act, section 47.4] adds subparagraph (ii) to provide for regulations expanding on the purposes for which and the circumstances in which a master licence to cut can be issued. For example, the regulations could allow a master licence to cut to be issued to a utility corporation under which it might cut timber under or adjacent to its rights of way, on an "as needed" basis.

SECTION 3: [Forest Act, section 47.5] expands the purview of subsection (3) to allow a cutting permit to be issued to the holder of a master licence to cut if the holder is authorized under an enactment to occupy the described area or if the licence will facilitate harvesting for the purposes or circumstances referred to in section 47.4 of the Act, as amended by this Bill.

SECTION 4: [Forest Act, section 47.6] amends subsection (2.1) to clarify that what may be authorized is removal of timber only, not harvesting and then removal of the harvested timber.

SECTIONS 5 AND 6: [Forest Act, sections 54 and 54.5] clarifies the minister referenced.

SECTION 7: [Forest Act, section 75.1]

• replaces the definition of "volume of timber harvested" in terms of the timber volumes that are now in the definition itself but, with this amendment, will be set out in the new subsection (2). The definition will now refer to a deduction from volume for "all downward adjustments to which the holder of the licence is entitled", as detailed in the new subsection (3) (a) of the section;
• authorizes the regional manager or district manager to make the described attributions from one licence to another or from one cut control period to another.

SECTION 8: [Forest Act, sections 75.11 and 75.95]

• makes an exception for licences that define "volume of timber harvested" so that such licences may differ from the definition of that term in section 75.1 of the Act;
• adds regulation-making powers for the purposes of a definition of "volume of timber harvested" contained in a licence;
• adds a transitional provision respecting the application of the definitions of "volume of timber harvested" to a licence that is in effect immediately before the date the new section 75.95 of the Act comes into force, or to a licence that is entered into on or after that date and that does not include a definition of "volume of timber harvested".

SECTION 9: [Forest Act, section 80] provides that compensation is not payable in respect of the effect of the Act under section 75.1, 75.11 or 75.95 of the Act, added by this Bill, on a licence as defined in Division 3.1 of Part 4 of the Act.

SECTION 10: [Forest Act, section 81] permits the Minister of Small Business and Revenue to determine whether satisfactory arrangements have been made for the payment of stumpage or other money payable to the government.

SECTION 11: [Forest Act, section 103] clarifies that the obligation to pay stumpage and the calculation of stumpage under the section are subject to the new section 142.7 of the Act.

SECTION 12: [Forest Act, section 108] clarifies that the section is subject to the new section 142.7 of the Act.

SECTION 13: [Forest Act, sections 121, 136, 143 and 151.1] is self-explanatory.

SECTION 14: [Forest Act, section 130] requires that money due and payable under an assessment made under the new Part 11.1 of the Act bears interest from the date determined under section 130 and clarifies that the revenue minister (as defined) may issue and file the certificate referred to in that section.

SECTION 15: [Forest Act, section 130.1] permits a proceeding to be commenced under the Act within 7 years of an amount set out in a statement or notice under the Act becoming due and payable or, if the contravention of the Act or regulations involves wilful default or fraud, at any time.

SECTION 16: [Forest Act, section 140] clarifies that the reference to "notice" in section 140 of the Act does not include a notice of assessment.

SECTION 17: [Forest Act, Part 11.1]

• permits the commissioner, and forest revenue officials as defined in the new Part, to enter on land or premises, and to conduct inspections and audits for the purpose of ensuring compliance with the Act, regulations and agreements that relate to stumpage or payment of stumpage;
• if the required amount of stumpage has not been paid, permits the commissioner to assess the person who harvested the Crown timber and a person who has acquired or dealt in the Crown timber harvested for the difference between the amount of stumpage for which a statement or notice has been issued under the Act and the amount estimated by the commissioner as the stumpage that should have been paid;
• permits the imposition of a penalty against a person who is assessed under the new Part;
• imposes an obligation to pay any amount assessed under the new Part;
• establishes a process for appealing an assessment of the commissioner to the revenue minister, and from the revenue minister to the Supreme Court;
• establishes the period of time during which records that are required to be kept under the Act must be kept;
• subject to enumerated exceptions, requires a forest revenue official who has custody or control of information or records not to disclose the information or records;
• permits the Lieutenant Governor in Council to make regulations respecting records, inspections, audits and appeals under the new Part.

SECTION 18: [Forest Act, section 146] adds a right of appeal to the Forest Appeals Commission from an order of the minister under section 75.95 (2) of the Act added by this Bill.

 
Forest and Range Practices Act

SECTION 19: [Forest and Range Practices Act, sections 2 and 142] is self-explanatory.

SECTION 20: [Forest and Range Practices Act, section 30]

• expands the definition of "licence holder" to refer additionally to a forestry licence to cut;
• adds a reference to a forestry licence to cut, thereby allowing the holder of that licence to request that the government assume responsibility for carrying out the obligation under section 29 of the Act to establish a free growing stand.

SECTION 21: [Forest and Range Practices Act, section 59] amends the Act to parallel the definition of "dwelling" enacted by section 1 of this Bill.

SECTION 22: [Forest and Range Practices Act, section 74] adds a reference to an order made under section 51 (7), 54 (2) or 57 (4) of the Act. Those provisions pertain to orders requiring persons to remediate the consequences of contraventions relating to range developments (section 51), to unauthorized construction or occupation (section 54) and to unauthorized trail or recreation facility construction (section 57).

SECTION 23: [Forest and Range Practices Act, section 187] provides for transition in relation to a forest development plan and the conversion of a timber sale licence to a forest licence.

SECTION 24: [Forest and Range Practices Act, section 196] adds a reference to section 36.1 of the Operational and Site Planning Regulation.

SECTION 25: [Forest and Range Practices Act, section 197] provides that, unless otherwise specified in a forest stewardship plan, the Code and the Code regulations (as defined) continue to apply to an area described in a timber sale licence in effect on the date the forest stewardship plan was approved.

 
Forestry Revitalization Act

SECTION 26: [Forestry Revitalization Act, section 3] provides for minister's orders to extend from a period of 3 years to a period of 5 years in the case of an order to which the new paragraph (a) (ii) applies.

 
Ministry of Forests Act

SECTION 27: [Ministry of Forests Act, title] changes the title of the ministry Act to reflect the new name of the ministry.

SECTION 28: [Ministry of Forests Act, section 1] is consequential to the title change made by this Bill.

SECTION 29: [Ministry of Forests Act, section 4] adds a reference to the ranching sector to the list that sets out the purposes and functions of the ministry.

 
Wildfire Act

SECTION 30: [Wildfire Act, section 1] expands the definition of "grass land" to include land used for forage.

SECTION 31: [Wildfire Act, section 7] limits the obligation of fire hazard abatement imposed on a person carrying out an industrial activity or a prescribed activity to a fire hazard that exists as a result of the activity.

SECTION 32: [Wildfire Act, section 17] clarifies that the government may pay compensation for rehabilitation in accordance with section 6 (3) (d) of the Act and for loss or damage of equipment.

SECTIONS 33 TO 35: [Schedules A, B and C, various Acts] are consequential to retitling the Ministry of Forests Act as the Ministry of Forests and Range Act and to the change in the ministry name.

BILL 9 – 2006
FORESTS AND RANGE STATUTES AMENDMENT ACT, 2006

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. 1996, c. 157, is amended

(a) by adding the following definitions:

"commissioner" means the person designated to be the commissioner under section 142.11 (1);

"dwelling" means

(a) a structure that is occupied as a private residence, and

(b) if only part of a structure is occupied as a private residence, that part of the structure;

"revenue minister" means the Minister of Small Business and Revenue; ,

(b) in the definition of "forest officer" by striking out "Ministry of Forests" and substituting "ministry of the minister responsible for the administration of this Act", and

(c) by repealing paragraph (a) of the definition of "timber sales manager".

2 Section 47.4 (2) (b) is repealed and the following substituted:

(b) a master licence to cut with any person, authorizing the harvesting of timber, under a cutting permit referred to in section 47.5 (2) (c) in all or part of a forest district

(i) for one or more of the following purposes:

(A) geophysical exploration under the Petroleum and Natural Gas Act;

(B) development activities associated with well sites or pipelines under the Pipeline Act or the Petroleum and Natural Gas Act;

(C) roads associated with activities referred to in clause (A) or (B), or

(ii) to authorize the person to harvest timber for prescribed purposes or in prescribed circumstances.

3 Section 47.5 (3) is repealed and the following substituted:

(3) The district manager or the forest officer authorized by the district manager must not issue to the holder of a master licence to cut a cutting permit for an area described in subsection (2) (c) unless

(a) the holder

(i) has written authority from the government, or

(ii) is authorized under an enactment

to occupy that area, or

(b) the cutting permit will facilitate harvesting for the purposes or circumstances referred to in section 47.4 (2) (b) (ii).

4 Section 47.6 (2.1) is amended by striking out "to authorize the removal" and substituting "to authorize only the removal".

5 Section 54 (2) (b) (iv) is repealed and the following substituted:

(iv) is the subject of an arrangement for payment approved by the revenue minister, .

6 Section 54.5 (1) (b) (i) (D) is repealed and the following substituted:

(D) is not the subject of an arrangement for payment approved by the revenue minister, .

7 Section 75.1 is amended

(a) by renumbering the section as section 75.1 (1),

(b) in subsection (1) by repealing the definition of "volume of timber harvested" and substituting the following:

"volume of timber harvested", in relation to each licence as defined in a provision of this Division, means the total of the timber volumes that are attributed to the licence

(a) in cut control statements issued on behalf of the government to the holder of the licence, or

(b) under the authority of a regulation made under subsection (3) (b) or (c),

for

(c) the term of the licence, if it is a licence as defined in section 75.2 or 75.21, or

(d) the cut control period for the licence, if it is not a licence as defined in section 75.2 or 75.21,

less all downward adjustments to those volumes to which the holder of the licence is entitled under subsection (3) of this section. , and

(c) by adding the following subsections:

(2) In the definition of "volume of timber harvested" in subsection (1), "timber volumes" means the following volumes:

(a) the volume of timber cut under the licence and under road permits associated with the licence;

(b) the volume of timber estimated to be wasted or damaged under the licence and under road permits associated with the licence;

(c) the volume of timber cut, damaged or destroyed by the holder of the licence without authorization;

(d) the volume of timber attributed to the licence by the regional manager or district manager under the authority of a regulation made under subsection (3) (b) or (c);

(e) except for a licence as defined in section 75.2 or 75.21, the excess volume of timber, if any, carried forward under section 75.7 from the immediately preceding cut control period.

(3) For the purposes of the definition of "volume of timber harvested" in subsection (1), the Lieutenant Governor in Council may make regulations

(a) prescribing percentages or amounts by which the timber volumes attributed to a licence in statements referred to in that definition must be adjusted downward to take into account grades and species of timber included in the volumes described in subsection (2) (a) and (b),

(b) authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensees, to attribute a portion of the volume of timber harvested under any type of licence, as defined in a provision of this Division, to another licence as so defined, whether of the same or a different type, and

(c) authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

(4) A percentage prescribed under subsection (3) (a) for a grade or species of timber may be any percentage within the range of 0% to 100%.

8 The following sections are added to Division 3.1 of Part 4:

Exception for licences that define "volume of timber harvested"

75.11 (1) If a licence, as defined in a provision of this Division,

(a) provides that the definition of "volume of timber harvested" in section 75.1 (1) does not apply to the licence, and

(b) contains a different definition that is specific to the licence,

that different definition applies to that licence for the purposes of this Division instead of the definition of "volume of timber harvested" in section 75.1 (1).

(2) For the purposes of a definition of "volume of timber harvested" included in a licence referred to in subsection (1), the Lieutenant Governor in Council may make regulations

(a) authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensees, to attribute a portion of the volume of timber harvested under any type of licence, as defined in a provision of this Division, to another licence as so defined, whether of the same or a different type, and

(b) authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

Transitional -- volume of timber harvested

75.95 (1) This section applies only to a licence, as defined in a provision of this Division, that

(a) is in effect immediately before the date this subsection comes into force, or

(b) is entered into on or after the date this subsection comes into force without a provision that the definition of "volume of timber harvested" in section 75.1 (1) does not apply to the licence.

(2) If the minister considers that

(a) a licence to which this section applies includes provisions respecting the quality and quantity of the timber

(i) cut, or

(ii) subject to waste assessment

under the licence and under road permits associated with the licence, and

(b) those provisions require a greater volume of timber to be attributed to the licence than would be attributed to it under the definition of "volume of timber harvested" in section 75.1 (1),

the minister by order may impose for that licence a definition of "volume of timber harvested" that is specific to that licence and that reflects the greater volume referred to in paragraph (b).

(3) A licence to which this section applies and that is the subject of an order under subsection (2) is deemed to have been amended on the date of the order to include the definition of "volume of timber harvested" imposed for the licence by that order.

(4) If a licence to which this section applies is amended under subsection (3), the definition of "volume of timber harvested" imposed for the licence under this section applies for the purposes of this Division instead of the definition of "volume of timber harvested" in section 75.1 (1).

(5) For the purposes of a definition of "volume of timber harvested" imposed for a licence by order under subsection (2), the Lieutenant Governor in Council may make regulations authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

9 Section 80 is amended by adding the following subsection:

(3) No compensation is payable by the government and proceedings must not be commenced or continued to claim compensation from the government or to obtain a declaration that compensation is payable by the government in respect of the effect, under section 75.1, 75.11 or 75.95, on a licence as defined in a provision of Division 3.1 of Part 4.

10 Section 81 (6) (b) is repealed and the following substituted:

(b) has not made arrangements satisfactory to the revenue minister to pay the stumpage or other money.

11 Section 103 is amended

(a) in subsection (1) by striking out "107 and 108," and substituting "107, 108 and 142.7,", and

(b) in subsection (3) by adding "but subject to section 142.7" after "Despite sections 107 and 108".

12 Section 108 is amended by striking out "If Crown timber" and substituting "Subject to section 142.7, if Crown timber".

13 Sections 121 (7), 136 (3), 143 (3) and 151.1 (4) and (7) are amended by striking out "Ministry of Forests" and substituting "ministry of the minister responsible for the administration of this Act".

14 Section 130 is amended

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

(b) bears interest as prescribed, and in the case of an amount due under

(i) section 108, the interest runs from the date determined by the regional manager to be the date stumpage or royalty would have been due if the timber referred to in section 108 had been scaled correctly under Part 6, and

(ii) an assessment made under section 142.51 (5), the interest runs from the date determined by the commissioner to be the date stumpage would have been due if none of the events referred to in section 142.51 (1) (a) to (d) had occurred, , and

(b) in subsection (4) by adding "revenue" before "minister".

15 The following section is added:

Limitation period

130.1 (1) In this section, "proceeding" means

(a) an action for the recovery of money under section 130 (1),

(b) the enforcement of a lien under section 130 (1), and

(c) the filing of a certificate under section 130 (4).

(2) A proceeding may be commenced at any time within 7 years of the date that money claimed in the proceeding or to which the proceeding relates became due and payable under section 130 (1) (a).

(3) Despite subsection (2), a proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time.

(4) Section 5 of the Limitation Act applies to the limitation period set by this section.

16 Section 140 is amended by adding the following subsection:

(3) This section does not apply to a notice of assessment issued under Part 11.1.

17 The following Part is added:

Part 11.1 -- Inspections, Audits and Assessments

Division 1 -- Interpretation and Application

Definitions and application

142.1 (1) In this Part:

"assessment" includes reassessment;

"forest revenue official" means a person who is designated as a forest revenue official under section 142.11 (2) and includes, other than in section 142.11, the commissioner;

"scale" has the same meaning as in section 93.

(2) This Part applies with respect to Crown timber harvested on or after the date this section comes into force.

Division 2 -- Inspection and Collection of Information

Officials

142.11 (1) The revenue minister may designate a person by name or title as the commissioner.

(2) The commissioner may designate a person by name or title as a forest revenue official.

(3) The commissioner may delegate, with or without conditions, any of the commissioner's powers, functions or duties under this Part to a person or a class of persons.

Entry on land or premises

142.2 (1) Subject to subsection (2), for the purpose of ensuring compliance with the provisions of this Act, the regulations or an agreement that relate to the harvesting of Crown timber, stumpage or the payment of stumpage, a forest revenue official may enter, at any reasonable time, on any land or premises and conduct an inspection or audit referred to in section 142.21.

(2) A forest revenue official may not enter a dwelling under subsection (1) unless a person who occupies the dwelling consents or a warrant authorizes the entry.

(3) If satisfied by evidence given under oath that entry into a dwelling is necessary in order to exercise the powers under section 142.21 (a), a justice may issue a warrant, subject to any conditions the justice considers appropriate, authorizing a forest revenue official to enter the dwelling.

(4) The commissioner may apply for a warrant under subsection (3) without notice to any other person.

Inspection

142.21 A forest revenue official who enters on land or premises under section 142.2 may

(a) inspect or conduct an audit of any record, or inspect any thing or any activity, that is related to information or records required to be kept by the person or to be provided to the government under this Act, the regulations or an agreement entered into under this Act, and

(b) require production of and copy any record referred to in paragraph (a).

Retention of records

142.3 (1) Subject to this section, a person who is required to keep records under this Act must keep each record in a prescribed category of records for a period of 6 years after the date the record was created.

(2) If a person referred to in subsection (1) files a document under section 142.6 (3) consenting to waive section 142.6 (1) and allowing the commissioner to consider a different period in making an assessment, the person must keep all records related to the making of the assessment for the longer of the following periods:

(a) 6 years after the date the record was created;

(b) 90 days after the waiver ceases to have effect.

(3) If a person referred to in subsection (1) is assessed under section 142.51 (4) or (5) or 142.61 (1) or (2), the person must keep all records related to the assessment for the longer of the following periods:

(a) 6 years after the date the record was created;

(b) the time for all appeals of the assessment has elapsed.

(4) On receipt of a written request, the commissioner may authorize the destruction of a record before the end of the period required under this section.

Delivery of records

142.31 (1) For the purpose of ensuring compliance with the provisions of this Act, the regulations or an agreement that relate to the harvesting of Crown timber, stumpage or the payment of stumpage, a forest revenue official may require a person, by serving a demand notice on that person, to provide information and produce specified records that the person is required to keep or provide to the government.

(2) On receipt of a demand notice under subsection (1), a person must prepare and deliver to the forest revenue official the information and records required within the time specified in the demand notice.

(3) A forest revenue official must not require a person under subsection (1) to provide information or records relating to a person referred to in section 142.51 (4) (a) or (b) who is unnamed, unless

(a) the commissioner first obtains the authorization of a judge under subsection (5) of this section, or

(b) the requirement under subsection (1) is imposed in the circumstances, if any, prescribed for a person who is within a prescribed class of persons.

(4) The commissioner may apply for an authorization under subsection (5) with or without notice to any other person.

(5) A judge of the Supreme Court, subject to any conditions the judge considers appropriate, may make an order authorizing the commissioner to require a person under subsection (1) to provide information or records related to an unnamed person, if satisfied by evidence given under oath that

(a) the identity of the unnamed person referred to is ascertainable, and

(b) the requirement under subsection (1) is for the purpose of verifying that the unnamed person is in compliance with any obligation under this Act.

(6) If authorization is granted under subsection (5), a copy of the court order must be served together with the demand notice referred to in subsection (1).

(7) If a person

(a) did not have notice of an application made under subsection (4), and

(b) is served with a court order granting an authorization under subsection (5),

the person, within 15 days of the service of the order, may apply to the Supreme Court for a review of the order.

(8) On hearing an application under subsection (7), a judge may

(a) cancel the authorization previously granted, if the judge is not satisfied that the conditions in subsection (5) (a) and (b) have been met, or

(b) confirm or vary the authorization, if the judge is satisfied that those conditions have been met.

(9) Nothing in subsection (1) affects solicitor-client privilege.

Obligation of a forest revenue official

142.4 A forest revenue official who, under this Division, enters on land or premises, conducts an inspection or audit or requests information or records must provide proof of identity, on the request of the person who

(a) is in possession or apparent possession of the land or premises,

(b) has apparent custody or control of the records or property being inspected or audited, or

(c) is in charge of the activity being inspected or audited.

Obligation of person on request of forest revenue official

142.41 A person who

(a) is in possession or apparent possession of land or premises entered on by a forest revenue official under this Division,

(b) has apparent custody or control of records or property being inspected or audited, or

(c) is in charge of an activity being inspected or audited,

must produce, if and as requested by the forest revenue official,

(d) proof of identity, and

(e) any information and any record required under section 142.21.

Evidence

142.5 An affidavit by a forest revenue official that states the facts necessary to establish

(a) compliance with section 142.4 by the forest revenue official and default under section 142.41 by a person to whom a request was made, or

(b) default by a person served with a demand notice under section 142.31

must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.

Division 3 -- Assessment and Imposition of Penalty and Interest

Assessment of estimated stumpage and interest

142.51 (1) If it appears to the commissioner, from an inspection or audit of any records or from other information available, that one or more of the following has occurred, the commissioner may estimate, in accordance with subsections (2) and (3), the total amount of stumpage required to be paid in respect of the Crown timber harvested:

(a) some or all of the Crown timber harvested was

(i) not scaled,

(ii) inaccurately scaled,

(iii) not reported in a scale, or

(iv) reported incorrectly in a scale;

(b) the volume or quantity or quality of some or all of the Crown timber was calculated on the basis of incorrect information provided by a cruise of the timber or on the basis of other incorrect information;

(c) the incorrect rate was applied to some or all of the Crown timber harvested;

(d) the information relating to the Crown timber harvested that is required to be provided to the government under this Act or under an agreement entered into under this Act was inaccurate or was not provided.

(2) In making an estimate under subsection (1), the commissioner must multiply

(a) the commissioner's estimate of the volume or quantity of the Crown timber harvested, and

(b) the sum of the commissioner's estimate of

(i) the rate of stumpage applicable to the Crown timber, and

(ii) the bonus bid, if any, offered or the bonus bid that in the opinion of the commissioner would likely have been offered in respect of the Crown timber harvested without authorization.

(3) The commissioner may make an estimate under subsection (2) (a) or (b) in a manner and form and by a procedure the commissioner considers adequate and expedient.

(4) If an estimate is made under subsection (1), the commissioner may assess

(a) the person who harvested the Crown timber, and

(b) a person who acquires, has acquired, deals in or has dealt in the Crown timber harvested

for the amount estimated under subsection (1), less the amount of stumpage that the government has previously billed for that Crown timber.

(5) After assessing a person under subsection (4), the commissioner may assess the amount of interest payable under section 130 (1) (b) on the amount assessed.

Period to be considered in making an assessment

142.6 (1) Subject to subsections (2) to (4), in making an assessment under section 142.51 (4), the commissioner must not consider or include a period greater than 6 years before the date of issue of the first notice of assessment issued with respect to that Crown timber.

(2) If an assessment under section 142.51 (4) is based on one or more events that involve wilful default or fraud by a person, the commissioner may consider and include any period in making an assessment against the person under section 142.51.

(3) If a person referred to in section 142.51 (4) (a) or (b) files a document with the commissioner in a form and containing the information required by the commissioner within a period of 6 years from the date stumpage would have been due if none of the events referred to in section 142.51 (1) (a) to (d) had occurred, consenting to waive subsection (1) of this section and to allow the commissioner in making an assessment under section 142.51 to consider a different period, the commissioner may consider any period to which the person consents.

(4) A waiver filed under subsection (3) continues in effect for 6 months after the person files with the commissioner a notice revoking the waiver in the form and containing the information required by the commissioner.

Penalty

142.61 (1) If the commissioner is satisfied that an assessment against a person under section 142.51 (4) is based on the person's wilful

(a) contravention of this Act, the regulations or an agreement entered into under this Act, or

(b) provision of a false or deceptive statement,

the commissioner may assess against the person, in addition to any other penalty, a penalty that does not exceed 100% of the assessment under section 142.51 (4).

(2) If the commissioner is satisfied that an assessment against a person under section 142.51 (4) is based on the person's contravention of this Act, the regulations or an agreement entered into under this Act, the commissioner may assess against the person, in addition to any other penalty, a penalty that does not exceed 25% of the assessment under section 142.51 (4).

(3) If the commissioner assesses a penalty under subsection (1) against a person, the commissioner may not impose a penalty under subsection (2) with respect to the same assessment against that person.

Payment of assessed amount of stumpage

142.7 In addition to any other money required to be paid to the government in the circumstances set out in section 130 (1.1), a person assessed under section 142.51 (4) or (5) or 142.61 (1) or (2) must pay to the government the amount assessed.

Notice of assessment

142.71 On making an assessment under section 142.51 (4) or (5) or 142.61 (1) or (2), the commissioner must serve the person assessed with a notice of assessment that sets out the amounts assessed under section 142.51 (4) or (5) or 142.61 (1) or (2), as the case may be.

Serving a notice of assessment

142.8 (1) A notice of assessment required to be served on a person under section 142.71 must be served in one of the following ways:

(a) by leaving the notice of assessment with the person;

(b) by sending the notice of assessment

(i) by ordinary mail or registered mail to the person's address,

(ii) by electronic mail to the person's electronic mail address, or

(iii) by facsimile to the person's facsimile number

as last known to the commissioner.

(2) A notice of assessment served in accordance with subsection (1) (b) is deemed to have been received on the date the notice of assessment was sent.

(3) If a person carries on business under a name or style other than the person's own name, the notice of assessment may be addressed to the name or style under which the person carries on business and, in the case of leaving the notice of assessment with a person, the notice of assessment is deemed to have been validly served if left with an adult person employed at the place of business of the addressee.

(4) If persons carry on business in partnership, the notice of assessment may be addressed to the partnership name and, in the case of leaving the notice of assessment with a person, the notice of assessment is deemed to have been validly served if left with one of the partners or left with an adult person employed at the place of business of the partnership.

(5) Proof of the receipt by a person of the notice of assessment may be established in any court by showing that the notice of assessment was sent in accordance with this section, and the burden of proof is on the person seeking to establish the fact that the notice of assessment was not received by that person.

Proof and onus

142.81 (1) Evidence that an assessment has been made under section 142.51 (4) or (5) or 142.61 (1) or (2) is proof, in the absence of evidence to the contrary, that the amount assessed is due and owing in accordance with the notice of assessment referred to in section 142.71, and the onus of proving otherwise is on the person liable to pay the amount assessed.

(2) Subject to being amended, changed or varied on appeal under this Part, an amount assessed under section 142.51 (4) or (5) or 142.61 (1) or (2) is valid and binding despite any error, defect or omission in the estimate or assessment or in procedure.

Division 4 -- Appeals of Assessments

Appeal to revenue minister

142.9 (1) If a person disputes

(a) an assessment made under section 142.51 (4) or (5), or

(b) a penalty assessed under section 142.61 (1) or (2),

the person or the person's agent may appeal to the revenue minister in accordance with this section.

(2) An appeal under this section may be commenced by serving a notice of appeal on the revenue minister within 90 days of the date that the notice of assessment referred to in section 142.71 is served on the appellant.

(3) The notice of appeal must

(a) be in writing,

(b) be addressed to the revenue minister in the City of Victoria, and

(c) set out clearly the reasons for the appeal and all the facts relevant to it.

(4) On receiving the notice of appeal, the revenue minister must

(a) consider the matter,

(b) affirm, amend, change or vary the assessment or penalty, and

(c) promptly notify the appellant in writing of the result of the appeal.

Appeal to court

142.91 (1) A decision of the revenue minister under section 142.9 may be appealed to the Supreme Court by way of an originating application.

(2) The Rules of Court relating to originating applications apply to appeals under this section, but Rule 49 does not apply.

(3) A petition commencing an appeal under this section must be filed in the court registry within 90 days of the date of the revenue minister's notification of the result of the appeal.

(4) Within 14 days of the filing of a petition under subsection (3), the petition must be served on the government in accordance with section 8 of the Crown Proceeding Act and in the petition the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".

(5) An appeal under this section is a new hearing that is not limited to the evidence and issues that were before the revenue minister.

(6) The Supreme Court may

(a) dismiss the appeal,

(b) allow the appeal,

(c) vary the decision from which the appeal is made, or

(d) refer the decision back to the commissioner for reconsideration.

(7) An appeal lies from a decision of the Supreme Court to the Court of Appeal with leave of a justice of the Court of Appeal.

Affect of pending appeals

142.92 Neither the serving of a notice of appeal by a person nor a delay in the hearing of the appeal

(a) affects the date of payment, the interest or penalties or the liability for payment in respect of the assessment that is the subject matter of the appeal, or

(b) delays collection of the assessment.

Division 5 -- General

Confidentiality

142.93 (1) A forest revenue official who has custody of or control over information or records provided to the government under this Act must not disclose the information or records to any other person except

(a) for the purposes of administering or enforcing this Act, a taxation enactment or an Act administered by the minister responsible for the administration of Part 2 of this Act,

(b) in court proceedings,

(c) as provided in, or ordered under, section 39 (3), 40 (1), 99 (5) or 100 (1) of the Family Relations Act or section 8 (3) or 9 (2) of the Family Maintenance Enforcement Act, or

(d) under an agreement that

(i) is between the government of British Columbia and another government,

(ii) relates to the administration or enforcement of this Act, a taxation enactment or an Act administered by the minister responsible for the administration of Part 2 of this Act, and

(iii) provides for the disclosure of information and records to, and the exchange of similar information and records with, that other government.

(2) A person who contravenes subsection (1) commits an offence and is liable to a fine of not more than $2 000.

Regulations

142.94 Without limiting Division 3 of Part 12, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting inspections and audits conducted by forest revenue officials;

(b) respecting the conduct of appeals to the revenue minister under this Part;

(c) prescribing one or more categories of records for the purpose of section 142.3;

(d) prescribing a class of persons and circumstances for the purpose of section 142.31 (3);

(e) respecting assessments under this Part;

(f) requiring a person to keep records or types of records for the purposes of this Act or a provision of this Act.

18 Section 146 (2) is amended by striking out "and" at the end of paragraph (a), by adding ", and" at the end of paragraph (b) and by adding the following paragraph:

(c) an order of the minister under section 75.95 (2).

 
Forest and Range Practices Act

19 Sections 2 (1) and 142 (2) of the Forest and Range Practices Act, S.B.C. 2002, c. 69, are amended by striking out "Ministry of Forests" and substituting "ministry of the minister responsible for the administration of this Act".

20 Section 30 is amended

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

(c) has an obligation under section 29 to establish a free growing stand on an area harvested under the timber licence, forestry licence to cut,
non-replaceable forest licence, non-replaceable woodlot licence or
non-replaceable timber sale licence, and , and

(b) by repealing subsection (2) and substituting the following:

(2) A licence holder may request that the government assume responsibility for carrying out the obligation under section 29 to establish a free growing stand

(a) by notice given to the district manager, or

(b) by notice given to the timber sales manager if the licence is a

(i) non-replaceable forest licence, or

(ii) forestry licence to cut

that is a BC timber sales agreement.

21 Section 59 is amended

(a) by adding the following subsection:

(1.1) In subsection (2), "dwelling" means

(a) a structure that is occupied as a private residence, and

(b) if only part of a structure is occupied as a private residence, that part of the structure. , and

(b) in subsection (2) by striking out "a dwelling house or a room being used as a dwelling," and substituting "a dwelling,".

22 Section 74 (3) is amended by striking out "order of the minister under subsection (1)," and substituting "order of the minister under subsection (1) of this section or under section 51 (7), 54 (2) or 57 (4),".

23 Section 187 is amended

(a) by adding the following subsection:

(1.1) Despite subsection (1) (a), a forest development plan that

(a) was approved or given effect under the Code and that was in effect immediately before the effective date, and

(b) immediately before the effective date pertained to a pre-existing licence referred to in section 24.2 of the Forest Act

remains in effect for the forest licence, if any, that replaces the pre-existing licence until whichever of the following happens first:

(c) the forest licence expires and is not replaced or is cancelled, surrendered or otherwise terminated;

(d) the plan is replaced with a forest stewardship plan prepared in accordance with this Act;

(e) subject to subsection (3), December 31, 2006. , and

(b) in subsection (3) by striking out "referred to in subsection (1) (c)." and substituting "referred to in subsection (1) (c) or (1.1) (e)."

24 Section 196 (1) (a) is repealed and the following substituted:

(a) a cutblock, if the cutblock has been included in a forest development plan, with the assessments required in sections 16, 17, 36.1 and 37 of the Operational and Site Planning Regulation shown as completed, and .

25 Section 197 (7) is amended by striking out "or" at the end of paragraph (a) and by adding the following paragraph:

(a.1) described in a timber sale licence in effect on the date the forest stewardship plan was approved, or .

 
Forestry Revitalization Act

26 Section 3 (5) (a) of the Forestry Revitalization Act, S.B.C. 2003, c. 17, is repealed and the following substituted:

(a) may be made or amended

(i) on any date in the 3 years after March 31, 2003 if it is an order referred to in subsection (2), or

(ii) on any date in the 5 years after March 31, 2003 if it is an order referred to in subsection (1), (1.1) or (4), .

 
Ministry of Forests Act

27 The title of the Ministry of Forests Act, R.S.B.C. 1996, c. 300, is amended by adding "and Range" after "Forests".

28 Section 1 (1) is amended by striking out "Ministry of Forests" and substituting "Ministry of Forests and Range".

29 Section 4 (d) is repealed and the following substituted:

(d) encourage a vigorous, efficient and world competitive

(i) timber processing industry, and

(ii) ranching sector

in British Columbia; .

 
Wildfire Act

30 Section 1 of the Wildfire Act, S.B.C. 2004, c. 31, is amended by repealing the definition of "grass land" and substituting the following:

"grass land" includes land that

(a) previously supported grass and is not in other use, or

(b) is in use for the production of forage or is lying fallow, having previously been used for the production of forage,

but does not include land excluded from this definition by regulation; .

31 Section 7 (2) is repealed and the following substituted:

(2) In prescribed circumstances, a person carrying out an industrial activity or a prescribed activity must abate within a prescribed period a fire hazard that exists as a result of the industrial activity or prescribed activity.

32 Section 17 (1) and (2) is repealed and the following substituted:

(1) Subject to subsections (3) and (4), the government must pay compensation as prescribed to a person who, in respect of a fire,

(a) carries out either or both of

(i) fire control under an obligation imposed under section 6, or

(ii) rehabilitation in accordance with section 6 (3) (d), or

(b) complies with an order under section 16.

(2) Subject to subsections (3) and (4), the government may pay compensation as prescribed to a person for

(a) expenses and work done, and

(b) equipment loss and equipment damage

in voluntarily fighting a fire on forest land or grass land or within 1 km of forest land or grass land.

 
Consequential Amendments

33 The Acts listed in Column 1 of Schedule A to this Act are amended in the provisions listed opposite them in Column 2 by striking out "Ministry of Forests Act" and substituting "Ministry of Forests and Range Act".

34 The Acts listed in Column 1 of Schedule B to this Act are amended in the provisions listed opposite them in Column 2 by striking out "Ministry of Forests" and substituting "ministry of the minister responsible for the administration of the Ministry of Forests and Range Act".

35 The Acts listed in Column 1 of Schedule C to this Act are amended in the provisions listed opposite them in Column 2 by striking out "Minister of Forests" wherever it appears and substituting "minister responsible for the administration of the Ministry of Forests and Range Act".

Commencement

36 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Schedule A
(Section 33)

Schedule B
(Section 34)

Schedule C
(Section 35)

 
Explanatory Notes

SECTION 1: [Forest Act, section 1] adds definitions of "commissioner", "dwelling" and "revenue minister" and changes a cross reference.

SECTION 2: [Forest Act, section 47.4] adds subparagraph (ii) to provide for regulations expanding on the purposes for which and the circumstances in which a master licence to cut can be issued. For example, the regulations could allow a master licence to cut to be issued to a utility corporation under which it might cut timber under or adjacent to its rights of way, on an "as needed" basis.

SECTION 3: [Forest Act, section 47.5] expands the purview of subsection (3) to allow a cutting permit to be issued to the holder of a master licence to cut if the holder is authorized under an enactment to occupy the described area or if the licence will facilitate harvesting for the purposes or circumstances referred to in section 47.4 of the Act, as amended by this Bill.

SECTION 4: [Forest Act, section 47.6] amends subsection (2.1) to clarify that what may be authorized is removal of timber only, not harvesting and then removal of the harvested timber.

SECTIONS 5 AND 6: [Forest Act, sections 54 and 54.5] clarifies the minister referenced.

SECTION 7: [Forest Act, section 75.1]

• replaces the definition of "volume of timber harvested" in terms of the timber volumes that are now in the definition itself but, with this amendment, will be set out in the new subsection (2). The definition will now refer to a deduction from volume for "all downward adjustments to which the holder of the licence is entitled", as detailed in the new subsection (3) (a) of the section;
• authorizes the regional manager or district manager to make the described attributions from one licence to another or from one cut control period to another.

SECTION 8: [Forest Act, sections 75.11 and 75.95]

• makes an exception for licences that define "volume of timber harvested" so that such licences may differ from the definition of that term in section 75.1 of the Act;
• adds regulation-making powers for the purposes of a definition of "volume of timber harvested" contained in a licence;
• adds a transitional provision respecting the application of the definitions of "volume of timber harvested" to a licence that is in effect immediately before the date the new section 75.95 of the Act comes into force, or to a licence that is entered into on or after that date and that does not include a definition of "volume of timber harvested".

SECTION 9: [Forest Act, section 80] provides that compensation is not payable in respect of the effect of the Act under section 75.1, 75.11 or 75.95 of the Act, added by this Bill, on a licence as defined in Division 3.1 of Part 4 of the Act.

SECTION 10: [Forest Act, section 81] permits the Minister of Small Business and Revenue to determine whether satisfactory arrangements have been made for the payment of stumpage or other money payable to the government.

SECTION 11: [Forest Act, section 103] clarifies that the obligation to pay stumpage and the calculation of stumpage under the section are subject to the new section 142.7 of the Act.

SECTION 12: [Forest Act, section 108] clarifies that the section is subject to the new section 142.7 of the Act.

SECTION 13: [Forest Act, sections 121, 136, 143 and 151.1] is self-explanatory.

SECTION 14: [Forest Act, section 130] requires that money due and payable under an assessment made under the new Part 11.1 of the Act bears interest from the date determined under section 130 and clarifies that the revenue minister (as defined) may issue and file the certificate referred to in that section.

SECTION 15: [Forest Act, section 130.1] permits a proceeding to be commenced under the Act within 7 years of an amount set out in a statement or notice under the Act becoming due and payable or, if the contravention of the Act or regulations involves wilful default or fraud, at any time.

SECTION 16: [Forest Act, section 140] clarifies that the reference to "notice" in section 140 of the Act does not include a notice of assessment.

SECTION 17: [Forest Act, Part 11.1]

• permits the commissioner, and forest revenue officials as defined in the new Part, to enter on land or premises, and to conduct inspections and audits for the purpose of ensuring compliance with the Act, regulations and agreements that relate to stumpage or payment of stumpage;
• if the required amount of stumpage has not been paid, permits the commissioner to assess the person who harvested the Crown timber and a person who has acquired or dealt in the Crown timber harvested for the difference between the amount of stumpage for which a statement or notice has been issued under the Act and the amount estimated by the commissioner as the stumpage that should have been paid;
• permits the imposition of a penalty against a person who is assessed under the new Part;
• imposes an obligation to pay any amount assessed under the new Part;
• establishes a process for appealing an assessment of the commissioner to the revenue minister, and from the revenue minister to the Supreme Court;
• establishes the period of time during which records that are required to be kept under the Act must be kept;
• subject to enumerated exceptions, requires a forest revenue official who has custody or control of information or records not to disclose the information or records;
• permits the Lieutenant Governor in Council to make regulations respecting records, inspections, audits and appeals under the new Part.

SECTION 18: [Forest Act, section 146] adds a right of appeal to the Forest Appeals Commission from an order of the minister under section 75.95 (2) of the Act added by this Bill.

 
Forest and Range Practices Act

SECTION 19: [Forest and Range Practices Act, sections 2 and 142] is self-explanatory.

SECTION 20: [Forest and Range Practices Act, section 30]

• expands the definition of "licence holder" to refer additionally to a forestry licence to cut;
• adds a reference to a forestry licence to cut, thereby allowing the holder of that licence to request that the government assume responsibility for carrying out the obligation under section 29 of the Act to establish a free growing stand.

SECTION 21: [Forest and Range Practices Act, section 59] amends the Act to parallel the definition of "dwelling" enacted by section 1 of this Bill.

SECTION 22: [Forest and Range Practices Act, section 74] adds a reference to an order made under section 51 (7), 54 (2) or 57 (4) of the Act. Those provisions pertain to orders requiring persons to remediate the consequences of contraventions relating to range developments (section 51), to unauthorized construction or occupation (section 54) and to unauthorized trail or recreation facility construction (section 57).

SECTION 23: [Forest and Range Practices Act, section 187] provides for transition in relation to a forest development plan and the conversion of a timber sale licence to a forest licence.

SECTION 24: [Forest and Range Practices Act, section 196] adds a reference to section 36.1 of the Operational and Site Planning Regulation.

SECTION 25: [Forest and Range Practices Act, section 197] provides that, unless otherwise specified in a forest stewardship plan, the Code and the Code regulations (as defined) continue to apply to an area described in a timber sale licence in effect on the date the forest stewardship plan was approved.

 
Forestry Revitalization Act

SECTION 26: [Forestry Revitalization Act, section 3] provides for minister's orders to extend from a period of 3 years to a period of 5 years in the case of an order to which the new paragraph (a) (ii) applies.

 
Ministry of Forests Act

SECTION 27: [Ministry of Forests Act, title] changes the title of the ministry Act to reflect the new name of the ministry.

SECTION 28: [Ministry of Forests Act, section 1] is consequential to the title change made by this Bill.

SECTION 29: [Ministry of Forests Act, section 4] adds a reference to the ranching sector to the list that sets out the purposes and functions of the ministry.

 
Wildfire Act

SECTION 30: [Wildfire Act, section 1] expands the definition of "grass land" to include land used for forage.

SECTION 31: [Wildfire Act, section 7] limits the obligation of fire hazard abatement imposed on a person carrying out an industrial activity or a prescribed activity to a fire hazard that exists as a result of the activity.

SECTION 32: [Wildfire Act, section 17] clarifies that the government may pay compensation for rehabilitation in accordance with section 6 (3) (d) of the Act and for loss or damage of equipment.

SECTIONS 33 TO 35: [Schedules A, B and C, various Acts] are consequential to retitling the Ministry of Forests Act as the Ministry of Forests and Range Act and to the change in the ministry name.