BILL 58
An Act to Amend the Crown Lands and Forests Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section 1 of the Crown Lands and Forests Act, chapter C-38.1 of the Acts of New Brunswick, 1980, is amended
(a)  in the definition « vente de bois de la Couronne » in the French version by striking out the period at the end of the definition and substituting a semicolon;
(b)  by adding the following definition in alphabetical order:
“forest operations compliance audit” means a forest operations compliance audit referred to in section 31.1; (vérification de la conformité des opérations forestières)
2 The Act is amended by adding after section 31 the following:
Forest operations compliance audits
31.1(1) On notice to a licensee, the Minister may carry out a forest operations compliance audit in order to audit the performance of the licensee in respect of the management of Crown Lands under licence.
31.1(2) A forest operations compliance audit shall be conducted in a manner and follow the procedure determined by the Minister.
31.1(3) On the demand of the Minister, the licensee or an employee or agent of the licensee shall
(a)  permit access to the area of Crown Lands described in the licence, and
(b)  furnish any information or document that is, in the opinion of the Minister, necessary to enable the Minister to perform the forest operations compliance audit and that the licensee or employee or agent of the licensee is reasonably able to furnish.
Forest audit report, compliance action plan and non-compliance
31.2(1) Following a forest operations compliance audit, the Minister shall deliver a forest audit report to the licensee
(a)  setting out the findings of the audit, including any instances of non-compliance and any corrective action to be taken, and
(b)  containing any other information required by the regulations.
31.2(2) A licensee shall comply with a forest audit report within the time period, if any, set out in the report.
31.2(3) If the Minister determines that the licensee did not comply with the Act, the regulations, a forest management agreement or any other agreement made under this Act, a forest audit report may, in accordance with the regulations, require the licensee to submit a compliance action plan and to pay a penalty.
31.2(4) If a forest audit report requires a licensee to provide the Minister with a compliance action plan, the licensee shall provide to the Minister the compliance action plan containing the information prescribed by regulation.
31.2(5) A compliance action plan shall be provided to the Minister in the form and in the manner prescribed by regulation.
31.2(6) The Minister shall assess each compliance action plan received and determine whether the plan resolves the licensee’s non-compliance and, if the plan is deficient, to require the licensee to provide an appropriate compliance action plan that will have the effect of resolving the non-compliance.
31.2(7) A compliance action plan and every revision of a compliance action plan is subject to the approval of the Minister and the Minister may withhold his or her approval until any alterations the Minister considers necessary have been made.
31.2(8) Subject to the regulations, if the licensee refuses to provide or refuses or fails to satisfactorily implement a compliance action plan, the Minister may do any one or more of the following:
(a)  require the licensee to provide a further compliance action plan satisfactory to the Minister, and
(b)  impose a penalty on the licensee.
31.2(9) The Minister may publish a copy of the forest audit report or the compliance action plan in any manner the Minister considers appropriate.
31.2(10) A penalty imposed under a compliance action plan shall be calculated in accordance with the regulations and shall not be greater than
(a)  $10,000 for not providing a compliance action plan to the Minister when required,
(b)  $25,000 for refusal or failure to satisfactorily implement a compliance action plan, and
(c)  $25,000 in any other case.
31.2(11) A licensee required to pay a penalty shall pay the penalty within the time period and in the manner prescribed by the regulations.
Designation of forest auditors
31.3(1) The Minister may designate any employee of the Minister to carry out a forest operations compliance audit or for the purposes of carrying out any other power or duty of the Minister referred to in section 31.1or 31.2.
31.3(2) A person purporting to exercise the powers or duties of the Minister under this section shall produce evidence of his or her authority to exercise that power or duty when required to do so.
Forest Audit Appeal Board
31.4(1) There is established an appeal board to be known as the Forest Audit Appeal Board.
31.4(2) The Lieutenant-Governor in Council, on the recommendation of the Minister, shall appoint members to the appeal board, consisting of
(a)  a chair of the appeal board,
(b)  a vice-chair of the appeal board,
(c)  five members of the appeal board appointed from a list of licensees, sub-licensees or other persons, compiled in accordance with subsection (3), to represent the forest industry, and
(d)  two members of the appeal board appointed from among employees of the Department of Natural Resources who are not involved with forest operations compliance audits.
31.4(3) If the Minister requests, the licensees and the sub-licensees shall, for the purposes of paragraph (2)(c), and within a reasonable period of time after the request, submit to the Minister 5 names of eligible candidates for the appeal board.
31.4(4) The chair and the vice-chair of the appeal board appointed under paragraphs (2)(a) and (b) and the persons appointed as members of the board under paragraph (2)(d) shall be appointed to the appeal board for a term of 2 years and may be reappointed.
31.4(5) No person shall be eligible for appointment as the chair or the vice-chair of the appeal board who is or has been, within 6 months before the appointment,
(a)  employed in the Civil Service of the Province, or
(b)  an employee or agent of a licensee or sub-licensee.
31.4(6) The members of the appeal board appointed under paragraph (2)(c) shall
(a)  be appointed for a term not exceeding one year and may be reappointed, and
(b)  not sit as a member of a panel of the appeal board in respect of an appeal if
(i) the member is the person making the appeal, or
(ii) the member is an employee or agent of the person making the appeal.
31.4(7) The chair, vice-chair and members of the appeal board shall, in the opinion of the Minister, have specialized, expert or technical knowledge of the forest industry.
31.4(8) The vice-chair of the appeal board shall perform the duties and shall have the powers and jurisdiction of the chair of the appeal board during the absence or disability of the chair or at any time when so authorized by the chair and in those instances shall be deemed to be the chair.
31.4(9) The Minister may remove a member of an appeal board from office for cause or for any incapacity.
Appeal of the findings of an audit
31.5(1) The Forest Audit Appeal Board shall hear appeals with respect to the findings of a forest audit report.
31.5(2) Any person directly affected by the findings of a forest audit report may appeal the findings of the report to the appeal board on the ground that an error has been made by the Minister in the preparation or content of the forest audit report or in the application of an arbitrary or unfair procedure in the making of the report.
31.5(3) The parties to an appeal under this section are the persons directly affected by the findings of a forest audit report, as determined by the Minister, and all other persons added by the Forest Audit Appeal Board as parties to the appeal.
31.5(4) A person referred to in subsection (2) who seeks to appeal the findings of a forest audit report shall file, in the manner and within the time period prescribed by regulation, a notice of appeal containing the information prescribed by regulation.
31.5(5) If a person referred to in subsection (2) appeals the findings of a forest audit report, the results of the audit shall be considered to be valid until the conclusion of the appeal process.
31.5(6) The Forest Audit Appeal Board shall hear, determine or deal with any matter appealed to it and may confirm, revoke or vary the decision of the Minister in respect of the findings of a forest audit report.
31.5(7) Every decision of the Forest Audit Appeal Board is final and may not be questioned or reviewed in any court.
Security
31.6(1) Before proceeding to deal with any matter appealed, the Forest Audit Appeal Board shall require the person seeking to appeal the findings of the forest audit report to furnish the appeal board with security in a form satisfactory to the appeal board and in an amount and subject to the conditions prescribed by regulation.
31.6(2) After the completion of the appeal, if the board revokes or varies the findings of the forest audit report, the Forest Audit Appeal Board shall, as soon as reasonably possible, return the security to the appellant.
31.6(3) After the completion of the appeal, if the appeal board confirms the findings of the forest audit report, the Forest Audit Appeal Board shall, on 10 days’ notice to the appellant, realize upon the security.
3 Subsection 95(1) of the Act is amended by adding after paragraph (d) the following:
(d.1)  respecting information to be contained in a forest audit report referred to in section 31.2, including the assignment of categories to instances of non-compliance;
(d.2)  prescribing information to be provided in relation to compliance action plans referred to in section 31.2 and the manner and form of providing that information;
(d.3)  respecting penalties referred to in section 31.2 and the calculation of the amounts of the penalties, which may vary according to the frequency of the non-compliance and the impact of the non-compliance on the environment or on the forest resource;
(d.4)  respecting the procedures to be followed in imposing penalties referred to in section 31.2 and all other matters in relation to the penalties, including prescribing the time period within which and the manner in which a penalty must be paid;
(d.5)  respecting the categorization of the non-compliance by the frequency of the non-compliance and the impact of the non-compliance on the environment or on the forest resource for the purposes of paragraph (d.3), including establishing guidelines or criteria in relation to the categorization;
(d.6)  respecting appeals to the Forest Audit Appeal Board referred to in section 31.4, including
(i) the powers, functions and duties of the appeal board;
(ii) the convening of a panel to hear an appeal and the selection of members of the panel;
(iii) the remuneration and expenses of members of the appeal board;
(d.7)  prescribing the manner and the form of hearings and the procedures to be followed at hearings of the Forest Audit Appeal Board referred to in section 31.4;
(d.8)  prescribing the manner in which and the time period within which a notice of appeal referred to in subsection 31.5(4) shall be fixed and the information to be contained in the notice of appeal;
(d.9)  prescribing the manner in which a person directly affected by the findings of a forest audit report may appeal the findings of the report;
(d.10)  prescribing the amount of the security required to be provided under section 31.6;
COMMENCEMENT
4 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.