Interpretation

1  In this regulation:

"Act" means the Forest Act,

"BC timber sales enterprise" means a person registered in a category referred to in section 2 (1);

"control of a corporation" means beneficial ownership of 50% or more of its issued capital, having full voting rights in all circumstances, by

(a) one person, or

(b) a group of persons not dealing with each other at arm's length;

"person" has the same meaning as in the Interpretation Act;

"sawmill" means a timber processing facility that manufactures lumber, timbers or cants from logs;

"timber processing facility" means a facility that processes

(a) timber or wood residue or both,

(b) products produced from timber or wood residue or both, or

(c) products under both paragraphs (a) and (b).

[am. B.C. Regs. 178/91, s. 1; 179/91, s. 1; 242/2003, Sch. A, s. 2.]

 Categories

2  (1)  For the purposes of the Act, 3 categories of BC timber sales enterprises are established,

(a) category 1 comprised of persons referred to in section 3,

(b) category 2 comprised of persons referred to in section 4, and

(c) category 3 comprised of persons referred to in section 4.1.

(2)  Where a person registered in a category under this regulation

(a) ceases to meet the requirements of this regulation for registration in that category, or

(b) holds 3 or more licences under which primary timber harvesting operations have not been completed, whether forest licences referred to in section 13 (1.1) of the Act before its repeal, timber sale licences, or any combination of the two,

the person shall be deemed not to be registered in that category until such time as the disqualifications described in paragraphs (a) and (b) do not apply to him.

[am. B.C. Regs. 394/97, Sch. 1, s. 1; 360/99, s. 1; 242/2003, Sch. A, s. 3; 56/2006, s. 1.]

 Registration, category 1

3  (1)  A person may be registered as a BC timber sales enterprise in category 1 if the person meets each of the requirements of subsection (2) and applies to a timber sales manager in a manner approved by the manager.

(1.1)  For the purposes of subsection (2), "shareholder" means a shareholder of a corporation who, directly or indirectly, beneficially owns more than 10% of the issued and outstanding voting shares of the corporation.

(2)  In order to be registered under this section a person must

(a) be an individual at least 19 years old or be a corporation registered in British Columbia,

(b) not be

(i)  registered in a category under this regulation for a period for which application under subsection (1) is made, or

(ii)  a shareholder of a corporation registered in a category under this regulation for a period for which application under subsection (1) is made, or

(iii)  a corporation that has a shareholder who is also a shareholder of a corporation registered in a category under this regulation for a period for which application under subsection (1) is made,

(c) not be the holder of a licence or agreement the rights under which are suspended under section 78 or 78.1 of the Act, and

(d) be either of the following:

(i)  an individual who

(A)  has at least one year of experience in logging, or

(B)  owns or leases a timber processing facility in British Columbia in respect of which no other person is registered in a category under this regulation for a period for which application under subsection (1) is made;

(ii)  a corporation

(A)  that has a shareholder, officer or director who is an individual and has at least one year of experience in logging, or

(B)  that owns or leases a timber processing facility in British Columbia in respect of which no other person is registered in a category under this regulation for a period for which application under subsection (1) is made.

(e) and (f) Repealed. [B.C. Reg. 403/2003, Sch. B, s. 1 (b).]

(3)  Repealed. [B.C. Reg. 384/2004, s. (b).]

(4)  Repealed. [B.C. Reg. 56/2006, s. 2.]

[am. B.C. Regs. 178/91, s. 2; 393/97, s. 4 (a); 242/2003, Sch. A, s. 4; 403/2003, Sch. B, s. 1; 384/2004, ss. (a) and (b); 56/2006, s. 2.]

 Registration, category 2

4  (1)  Repealed. [B.C. Reg. 56/2006, s. 2.]

(2)  A person may be registered as a BC timber sales enterprise in category 2 if the person meets each of the requirements of subsection (3) and applies to the timber sales manager in a manner approved by the manager.

(3)  In order to qualify for registration under this section, a person

(a) must have been registered as a BC timber sales enterprise in category 2 or 3 on the effective date of this subsection,

(b) must meet the requirements of section 3 (2) (a) and (c),

(c) must own or lease a timber processing facility in British Columbia in respect of which no other person is registered in a category under this regulation for a period for which application under subsection (2) is made, and

(d) must not

(i)  hold,

(ii)  be in control of a corporation that holds,

(iii)  be a corporation that has 50% or more of its shares held by one or more shareholders who are also shareholders in a corporation that holds,

(iv)  be a corporation that is controlled by a corporation that is also in control of a corporation that holds, or

(v)  be a corporation that is controlled by a corporation that holds

a pulpwood agreement or one or more major licences that together have an aggregate allowable annual cut of greater than 10 000 m³.

[en. B.C. Reg. 242/2003, Sch. A, s. 5; am. B.C. Reg. 56/2006, ss. 2 and 3.]

 Registration, category 3

4.1  (1)  Repealed. [B.C. Reg. 56/2006, s. 2.]

(2)  A person may be registered as a BC timber sales enterprise in category 3 if the person meets the requirements of subsection (3) and applies to a timber sales manager in a manner approved by the manager.

(3)  In order to qualify for registration under this section, a person

(a) must have been registered as a BC timber sales enterprise in category 3 on the effective date of this subsection,

(b) must meet the requirements of sections 3 (2) (a) and (c) and 4 (3) (d),

(c) must not meet the requirement of section 4 (3) (c),

(d) must not be registered in any other category, and

(e) must state in the application for registration that he or she intends to own or lease a timber processing facility.

(4)  When a person registered in category 3 becomes the owner or lessee of a timber processing facility in British Columbia in respect of which no other person is registered in a category under this regulation, the person ceases to be registered in category 3 and is registered in category 2 for the remainder of the period for which the person was registered under category 3, or until the person ceases to be the owner or lessee of the timber processing facility, whichever comes first.

(5)  A person who, under subsection (4), has become an owner or lessee of a timber processing facility

(a) is not eligible for registration in category 3 until the person has ceased to own or lease that facility, and

(b) must notify a timber sales manager in a manner approved by the manager.

[en. B.C. Reg. 242/2003, Sch. A, s. 6; am. B.C. Reg. 56/2006, ss. 2 and 3.]

 Determining number of licences or aggregate allowable annual cut

5  (1)  Repealed. [B.C. Reg. 56/2006, s. 2.]

(2)  In determining the aggregate allowable annual cut under section 4 (3) (d) or 4.1 (3) (b), the allowable annual cut of the following shall not be included:

(a) Repealed. [B.C. Reg. 56/2006, s. 2.]

(b) a forest licence referred to in section 13 (1.1) of the Act as it was before its repeal.

(3)  Repealed. [B.C. Reg. 56/2006, s. 2.]

[am. B.C. Regs. 394/97, Sch. 1, s. 2; 360/99, s. 4; 242/2003, Sch. A, s. 7; 403/2003, Sch. B, s. 2; 56/2006, s. 2.]

 Registration

6  (1)  Registration as a BC timber sales enterprise is for a period of 2 years and may be renewed.

(2)  Repealed. [B.C. Reg. 403/2003, Sch. B, s. 3.]

(3)  Repealed. [B.C. Reg. 394/97, Sch. 1, s. 3 (a).]

(4)  Notwithstanding sections 3 to 4.1 of this regulation, a timber sales manager may refuse to register a person as a BC timber sales enterprise or may cancel the registration of a person as a BC timber sales enterprise if the person is or was

(a) a shareholder in,

(b) an officer or director of, or

(c) a person not at arm's length with

a BC timber sales enterprise that has been disqualified under section 78 of the Act.

(5)  In subsection (4), "arm's length" means arm's length as defined in the Income Tax Act (Canada).

(6)  A sawmill owned or leased by a person registered as a BC timber sales enterprise in category 1 or 2 must include a chipper and a debarker unless the timber sales manager has exempted the sawmill from this requirement.

[am. B.C. Regs. 178/91, s. 4; 179/91, s. 3; 393/97, s. 4 (b); 394/97, Sch. 1, s. 3; 360/99, s. 5;
242/2003, Sch. A, s. 8; 403/2003, Sch. B, s. 3; 384/2004, s. (c); 56/2006, s. 4.]

 Bidding

7  If under the Act the timber sales manager specifies that applications for a timber sale licence will be accepted only from BC timber sales enterprises, the timber sales manager may require the applicant to provide proof

(a) of registration as a BC timber sales enterprise,

(b) that the applicant continues to meet each of the requirements of this regulation for registration, and

(c) that the person has not ceased to be a BC timber sales enterprise.

[en. B.C.Reg. 242/2003, Sch. A, s. 9.]

 Fees

8  (1)  Before registration under section 3, 4 or 4.1, an applicant shall pay, in cash or by certified cheque, a fee of $250.

[am. B.C. Reg. 360/99, s. 6.]

 Transfer of category 2 registration

9  (1)  If registered under section 4 as a BC timber sales enterprise in category 2, an individual registrant may apply in writing to the timber sales manager to transfer the registration to another individual or corporation.

(2)  The timber sales manager must accept an application under subsection (1) if satisfied that the intended transferor is not the holder of a BC timber sales agreement, the rights under which are suspended in whole or in part under section 78 or 78.1 of the Act, and the intended recipient of the transfer

(a) is either

(i)  an individual of at least 19 years of age who is the spouse or one of any sons, daughters or siblings of the transferor, to the intent that the registration is to be transferred to only one individual, or

(ii)  a corporation registered in British Columbia that is controlled by one or more individuals, each of whom is the spouse or a son, daughter or sibling of the transferor, to the intent that the registration is to be transferred to only one corporation,

(b) is not the holder of a BC timber sales agreement the rights under which are suspended in whole or in part under section 78 or 78.1 of the Act,

(c) is not registered as a BC timber sales enterprise, and

(d) owns or leases a timber processing facility in British Columbia for which no other individual or corporation is registered in a category under this regulation.