Beijing Social Credit Regulations (Draft) (For Solicitation of Public Comments)

Contents

Chapter I: General Provisions

Chapter II: Management of Social Credit Information

Chapter III: Social Credit Oversight and Management

Chapter IV: Protection of Credit Subjects' Rights and Interests

Chapter V: Development of Credit Service Establishments

Chapter VI: Establishment of the Social Credit System

Chapter VII: Legal Responsibility

Chapter VIII: Supplemental Provisions

Chapter I: General Provisions

Article 1: [Legislative Purpose] These Regulations are drafted on the basis of relevant laws and administrative regulations, and in consideration of the actual situation of this city, so as to innovate social credit governance mechanisms, to protect credit subjects' lawful rights and interests, to promote the establishment of the social credit system, and carry forward the Core Socialist Values.

Article 2: [Scope of Application] These Regulations apply to activities such as the management of Social Credit Information; incentives for the trustworthy and punishments for the untrustworthy, the protection of credit subjects' rights and interests, the development of the credit service establishments, and the establishment of a social credit system in this city's administrative region. Activities related to the credit reporting industry are to be carried out in accordance with the relevant provisions of laws and administrative regulations.

“Social Credit” as used in these Regulations refers to the state of natural persons, legal persons, and organizations other than legal persons with legal capacity for action (hereinafter collectively called 'credit subjects') compliance with legally-prescribed obligations and performance of contractual obligations in social and economic activities.

Article 3: [Establishment of a Social Credit System] This city is to advance the establishment of creditworthiness in government affairs, commercial affairs, and society, as well as judicial credibility; completing local credit regulations and standards systems, promoting the establishment of a culture of creditworthiness, incentivizing trustworthy conduct and punishing untrustworthy conduct, and increasing the entire society's awareness of creditworthiness and credit levels.

Article 4: 【Government Duties】 The municipal and district people's governments shall strengthen the leadership of social credit work, and place the establishment of a social credit system within the Citizens' economic and social development plan, ensure expenses for the work, establish and complete coordination mechanisms for the establishment of the social credit system, plan the advancement of social credit work, and include the social credit work of every department in evaluation targets.

Article 5: [Departmental Duties] The municipal and district departments for economics and information are responsible for organizing, coordinating, guiding, and overseeing that administrative region's social credit work.

Other relevant government departments are to complete relevant efforts on social credit in accordance with their respective duties.

Article 6: 【Credit Information Management】 The management of Social Credit Information shall comply with the requirements of legality, accuracy, and necessity; shall ensure information security, and protect credit subjects' lawful rights and interests,; and must not violate state secrecy, commercial secrecy, and personal privacy.

Organizations and individuals must not illegally aggregate, collect, use, process, or transmit Social Credit Information, and must not alter, fabricate, or illegally buy and sell the Social Credit Information they aggregate, collect, or store.

Article 7: [Publicity and Education on Creditworthiness] The municipal and district departments for the economy and informatization, in conjunction with relevant government departments, are to vigorously publicize and spread credit knowledge, combine award activities for creditworthiness and activities on creditworthiness innovation, set up examples of creditworthiness, and advocate a culture of creditworthiness.

Media such as radio, television, periodicals, and the internet shall strengthen publicity on the culture of creditworthiness, creating a creditworthy and harmonious social atmosphere.

Article 8: [Establishment of Regional Coordination] The municipal department for the economy and informatization is to establish mechanisms for cooperation and joint work in conjunction with adjoining cities, carrying out efforts such as the joint establishment of standards for the credit systems, sharing of credit information, and joint use of credit products; and establishing and completing mechanisms for joint action in incentives for trustworthiness and punishments for untrustworthiness, to optimize the credit environment the region.

Chapter II: Management of Social Credit Information

Article 9: 【Social Credit Information】 Social Credit Information is to be divided into Public Credit Information and non-Public Credit Information.

Article 10: [Public Credit Information Catalog] Cataloged management is implemented for Public Credit Information. The city's Public Credit Information catalog is to be compiled by the municipal department for the economy and information technology in conjunction with relevant government departments and in accordance with relevant state provisions, it is to be published and implemented after approval from the municipal government and dynamically updated.

Public comments shall be solicited in the compilation of the municipal Public Credit Information catalog; and where the rights of credit subjects might be reduced or their obligations increased, an assessment shall be organized to fully hear the comments of relevant groups and experts.

Article 11: [Public Credit Information Catalog Elements] The Public Credit Information catalog shall indicate factors such as the information's name, providing unit, disclosure situation, display period, sharing category, usage authorization, data format, and update period.

Article 12: [Public Credit Information Types] Public Credit Information is comprised of basic information, information on untrustworthiness, and other information.

Basic information is primarily information on a credit subject's identity, basic situation, and so forth; Information on untrustworthiness is primarily information on a credit subject receiving administrative punishments, or administrative compulsion, making false pledges, not fulfilling pledges, and so forth; other information primarily indicates a credit subject's receipt of commendations, awards, administrative permits, and so forth.

Article 13: [Municipal Credit Information Serviced Platform] The city is to establish a uniform Public Credit Information service platform, aggregating and sharing Public Credit Information, providing inquiries and other services to the public, and interconnecting with the national credit information sharing platform. The establishment, operation, maintenance, and management of the platform are the responsibility of the municipal big data center, which is to draft specific work measures.

Article 14: [Collection of Public Credit Information] Public Credit Information collected by relevant government departments in accordance with law shall follow the municipal Public Credit Information catalog and be promptly aggregated to the municipal Public Credit Information service platform.

Public Credit Information aggregated by relevant government departments shall be based on documents that have legal effect or other valid supporting documents, to ensure their accuracy and completeness; where it is found to be inaccurate or incomplete, it shall be promptly corrected.

Article 15: [Disclosure Period for Credit Information] Credit subjects' Public Credit Information is to be displayed to the public through the municipal Public Credit Information platform. Basic information and other information can be displayed long-term, information on untrustworthiness is not to be displayed for longer than 3 years, except where laws or administrative regulations provide otherwise.

Article 16: [Collection of Non-Public Credit Information] Social units collecting or using non-Public Credit Information shall do so with the consent of the credit subject and the credit subject shall be notified of the content collected, the method of collection, and the use of the information.

Social units must not coerce or indirectly coerce credit subject's acceptance, and must not tie services to the collection of information.

Social units are encouraged to provide credit subjects' non-Public Credit Information to the municipal Public Credit Information service platform.

Article 17: [Prohibited Content in the Collection of Non-Public Credit Information] Social units must not collect information such as on natural persons' religious faith, genetics, blood type, illness, or other information that laws prohibit the collection of; and must not collect information such as on natural persons' income, savings, negotiable securities, commercial insurance, real estate, and tax amounts, except upon credit subjects' consent.

Article 18: [Encouraging Voluntary Declarations] Credit subjects are encouraged to provide their own non-Public Credit Information to the municipal Public Credit Information service platform and societal units through means such as statements, voluntary registration, and voluntary declarations, and guarantee the veracity and accuracy of the information.

Article 19: [Security Requirements for Credit Information] Relevant government departments, the big data center, and social units shall establish and complete security management systems for Social Credit Information, employing necessary technical measures to ensure the security of Social Credit Information; where circumstances such as serious leaks of Social Credit Information occur, they shall promptly address them and report to the municipal department for the economy and information technology.

Article 20: [Use of Public Credit Information] Relevant government departments shall make inquiries into credit subjects' Public Credit Information when performing the following duties. Where there are records of untrustworthiness, they shall employ corresponding restrictions, and where there are records of commendations and awards, they shall employ corresponding incentives.

(1) Implementing administrative permits, administrative inspections, oversight spot checks, and major administrative punishments;

(2) Production safety management, environmental protection, food and drug safety management, management of state property, and research management;

(3) Government procurement, bidding and tendering, and other public resource transactions; approval of finance programs, government funding arrangements, and policy supports;

(4) The recruitment, employment, and promotion of public employees, assessment of technical professional titles for related personnel, and merit-based household registration;

(5) Performance competitions, commendations, awards, bestowing honorifics;

(6) Other matters and activities as provided by the state or city.

Chapter III: Social Credit Oversight and Management

Article 21: [Establishment of Credit Regulation Systems] The relevant departments of the municipal government are to establish credit-based social credit regulatory mechanisms for the corresponding industries and fields, and complete systems such as for credit pledges, credit assessment, hierarchical and categorical regulation, incentives for trustworthiness, and punishments for untrustworthiness.

Article 22: [Credit Pledge System] In government service matters implementing the notice and pledge system, the relevant government departments shall indicate the standards for findings of the credit subjects' fulfillment of pledges, the process for determinations, restriction measures, and removal measures, and shall include information on the pledges and the violation of pledges in the municipal Public Credit Information service platform.

Article 23: [Public credit assessment systems] The municipal department for the economy and information technology is to establish and complete mechanisms for comprehensive public credit information assessments in accordance with relevant state provisions and make comprehensive public credit assessments of credit subjects.

Article 24: [Industry Credit Assessments] In accordance with their authority and actual management conditions, the relevant municipal departments, in conjunction with the municipal department for the economy and information technology, are to draft index systems for credit status assessments in the corresponding industry or field, and make industry credit assessments of credit subjects in accordance with their comprehensive public credit information assessment results.

Based on the results of industry credit assessments, the relevant government departments are to implement hierarchical and categorical regulation of credit subjects, and employ differentiated measures in areas such as regulatory methods, inspection rates, and frequencies.

Article 25: [Incentive Measures for Trustworthiness] The relevant government departments may employ one or more of the following incentive measures for credit subjects who have good industry credit assessment statuses:

(1) Facilitated services shall be given in implementing administrative permits, such as priority handling or simplified procedures;

(2) Where other requirements are equal, they shall be made priority choices for public financing and project support;

(3) Give credit points in public resource transactions;

(4) Reduce the ratio and frequency of inspections in industry regulation;

(5) Giving support and facilitation in public services such as education, employment, entrepreneurship, social security, and merit-based household registration;

(6) Prioritizing recommendations for award selections;

(7) Other reward measures provided for by the state or city.

Article 26: [Punishments for Untrustworthiness] The relevant government departments may employ one or more of the following punishment measures for credit subjects who have negative industry credit assessment statuses:

(1) List them as subjects for key review in carrying out administrative permitting, and don't apply simplified procedures such as information and assurances;

(2) restrictions of qualifications for taking relevant positions;

(3) Implementing measures to exclude or expel them from markets or industries;

(4) Making corresponding restrictions in policy supports such as government funding;

(5) Limiting participation in government purchasing, government investment program bidding, state-owned land bidding, auctions,or listings, or other public resource trading activities;

(6) Limiting participation in infrastructure and public utility operations activities;

(7) Restrict enjoyment of related facilitation measures in administrative management and public services such as for employment, entrepreneurship, social security, merit-based household registration, and license plate lotteries;

(8) list them as key management targets in routine management, and increase the frequency of monitoring and strengthen on-site inspections in accordance with relevant provisions;

(9) Restricting participation in government-organized commendation and award activities;

(10) Other punitive measures as provided by the State and city.

Article 27: [Principles for Punishments for Untrustworthiness] The punishment measures implemented by relevant government departments shall be suited to the credit subjects' credit status, as well as the facts, nature, and circumstances of the illegal conduct, and its extent of social harm; and they must not exceed the legally-prescribed requirements, punishment types, or scope.

Article 28: [Joint incentives and punishments] The municipal department for the economy and information technology may collaborate with relevant government departments to give credit subjects joint incentives for trustworthiness and joint disciplinary action for untrustworthiness, in accordance with relevant state and municipal provisions.

Article 29: [Standards for Designating Seriously Untrustworthy Entities] In accordance with relevant state and municipal provisions, the municipal department for the economy and information technology is to collaborate with relevant government departments to propose standards for designating credit subjects' serious untrustworthy conduct, clarifying the requirements and procedures for designations, as well as remedy measures, and publishing and implementing these after they are approved by the municipal government.

The proposed standards for the designation of seriously untrustworthy conduct shall be released for solicitation of public comments.

Article 30: [Designation of Serious Untrustworthy Conduct] Any of the follow acts by credit subjects are serious untrustworthy conduct:

(1) Acts that seriously endanger the public's physical health, or security in their lives;

(2) Acts that seriously disrupt the order of fair market competition and normal social order;

(3) Refusals to perform legally-prescribed obligations or not performing them as required that seriously impact the credibility of judicial organs and related government departments;

(4) Acts of refusal to perform national defense obligations, such as refusing or avoiding military service, refusing or delaying the expropriation of civil-use resources or impeding the modification of expropriated civil-use resources, endangering national defense interests or destroying national defense facilities;

(5) Other serious illegal and untrustworthy conduct in fields such as food and drug safety, production safety, the environment, eldercare, childcare, and municipal operations security.

Article 31: [Designation Procedures for the List of Seriously Untrustworthy Entities] In accordance with the designation standards, the relevant government departments shall designate lists of seriously untrustworthy entities in the corresponding industry or field.

The relevant government departments shall give written notification to credit subjects entered into lists of seriously untrustworthy entities of the basis and grounds for the entry, the punishment measures, the rights they enjoy, and other such content. Where credit subjects submit objections, the relevant government departments shall promptly re-examine and report back on the outcome.

Article 32: [Punishment Measures for Serious Untrustworthiness] The relevant government departments may employ one or more of the following punishment measures for credit subjects entered in the lists of seriously untrustworthy entities:

(1) Restrict entry into relevant industries;

(2) restrictions of qualifications for taking relevant positions;

(3) Restricting high-spending;

(4) Restrictions on leaving the mainland territory;

(5) Restrictions on obtaining related awards or honorifics;

(6) other measures provided for by laws and administrative regulations.

Chapter IV: Protection of Credit Subjects' Rights and Interests

Article 33: [Systems for the Protection of Credit Subjects' Rights and Interests] In conjunction with relevant government departments, the municipal department for the economy and information technology is to establish and complete systems for protecting credit subjects' rights and interests, protecting credit subjects' rights to know, make inquiries, eliminate information, make objections, and for restoration.

Article 34: [Credit subjects' right to know] Credit subjects have the right to know about relevant government departments' and social units' collection and use of their own Social Credit Information. The relevant government departments and social units shall promptly notify them of relevant situations.

Article 35: [Credit subjects' right to make inquiries] Credit subjects have the right to make free inquiries into their own Social Credit Information.

Credit subjects may make inquiries into Public Credit Information that shall be proactively disclosed in accordance with law through methods such as the municipal Public Credit Information service platform, mobile terminals, and service desks; Credit subjects may make inquiries into their own information that is not of the type for proactive disclosure. Inquiries into others' personal information shall be upon their written consent, except where laws and regulations provide otherwise.

The relevant government departments shall disclose the Public Credit Information of natural persons on the basis of laws and regulations; social units shall disclose the non-Public Credit Information of natural persons upon their consent, and process sensitive information to remove sensitivity.

Article 36: [Credit Subjects' Right to Eliminate Information] Credit subjects have the right to request that information such as their commendations and awards, volunteer service, and charitable donations not be disclosed. The relevant government departments or social units shall promptly withdraw the display in accordance with credit subjects' requests.

Article 37: [Credit Subjects' Right to Make Objections] Where credit subjects feel that their Public Credit Information on the municipal Public Credit Information service platform is untrue or is not to be disclosed in accordance with law, they may submit a written objection application to the municipal big data center, and submit related supporting materials. The municipal big data center shall promptly verify and address them, and reply to the credit subject with the results.

Credit subjects have the right to request that social units concurrently correct Public Credit Information that is corrected on the platform.

Article 38: [Credit Subjects' Right to Restoration] Credit subjects have the right of restoration regarding information on untrustworthiness that is on the municipal Public Credit Information services platform. Unless otherwise provided by laws and regulations. The specific requirements and procedures for credit restoration are to be enforced according to uniform state provisions.

After restoration is completed for information on untrustworthiness, credit subjects have the right to request that social units withdraw the relevant information.

Chapter V: Development of Credit Service Establishments

Article 39: [Support for the Development of the Credit Service Establishments] The relevant departments of the municipal and district people's governments shall draft policy measures to encourage the development of credit service establishments, and support credit service establishments' use of blockchain, big data, cloud computing, and other technology to collect and process Social Credit Information, develop credit products, expand the credit market and application landscape, innovate service models, and promote the development of the digital economy.

Article 40: [Credit Service Establishments] Credit service establishments as used in these Regulations refers to lawfully established professional establishments engaged in services such as credit consultation, credit rating and assessment, credit risk control, and credit management training.

Article 41: [Regulation and Development of Credit Service Establishments] Credit service establishments collecting and handling Social Credit Information and provision of credit products shall be objective, fair, and prudent; they must not interfere with national security, public safety, or the public interest, and must not harm the lawful rights and interests of credit subjects, and are to accept oversight and management from the relevant government departments.

Credit service establishments have an obligation to keep the confidentiality of commercial secrets and personal private information they collect.

Article 42: [Industry Self-Discipline for Credit Service Establishments] Credit service industry associations shall be established in accordance with law, to strengthen industry self-discipline and management, promote industry regulation, draft industry standards, establish systems for internal industry pledges, carry out training in areas such as credit publicity and credit management, and increase the industry's service capacity and credibility.

Article 43: [Credit Service Establishments Regulation and Services] Credit service establishments may apply to the municipal department for the economy and information technology to share Public Credit Information. The municipal department for the economy and information technology shall provide it to those who meet safety requirements and possess real scenarios for its application and shall conduct oversight over the use of the Public Credit Information.

Chapter VI: Establishment of the Social Credit System

Article 44: [Establishment of a Social Credit System] This city is to advance the establishment of creditworthiness in government affairs, commercial affairs, and society, as well as judicial credibility; strengthening the use of social credit information, increasing the entire society's awareness of creditworthiness and levels of credit, creating an atmosphere in which trustworthiness is honored and untrustworthiness is shameful, and making honesty and trustworthiness the conscious behavioral guide for all people.

The development of creditworthy villages, communities, enterprises, and individuals is encouraged, innovating social governance at the basic levels.

Article 45: [Establishment of Creditworthiness in Government Affairs 1] The municipal and district people's governments and relevant government departments shall perform on policy pledges made to the public in accordance with law and on all types of lawfully concluded contracts; and they must not breach contracts on the grounds of an adjustment of administrative divisions, change of government session, adjustment of institutions or functions, or replacement of relevant responsible persons, and must not extend the period for payments against the wishes of market entities.

The municipal and district people's governments and relevant government departments shall strengthen the establishment of government affairs creditworthiness in activities such as government procurement, public-private funding cooperation, attracting investment, bidding and tendering, and encouraging investment.

Article 46: [Establishment of Creditworthiness in Government Affairs 2] The municipal department for the management of civil servants shall strengthen the establishment of creditworthiness for civil servants, carrying out education for civil servants on creditworthiness, trustworthiness, and ethics; enhancing civil servants' awareness of law and creditworthiness; establishing credit archives for civil servants, and including individual credit information such as incident reports, records of clean governance, annual evaluation results, and records of violations of law and contract in the archives. Civil servants' creditworthiness records are to be an important basis for cadre evaluations, appointment, awards, and punishments.

Article 47: [Establishment of Creditworthiness in Commercial Affairs 1] Units and individuals shall strengthen awareness of rule of law, the spirit of contract, and the idea of respecting contract, creditworthiness and legal compliance, and proactive participation in the establishment of the social credit system. Encourage the use of credit information, credit reports, credit assessments, and other credit products.

State-owned enterprises shall establish and complete internal credit management systems, perform social responsibility, and give play to the role of establishing creditworthiness in commercial affairs as a model.

Article 48: [Establishment of Creditworthiness in Commercial Affairs 2] Industry associations and chambers of commerce shall strengthen the establishment of creditworthiness in commercial affairs, include the establishment of creditworthiness in the content of their charters, strengthen publicity, education, and training on creditworthiness in commercial affairs for members, carry out member credit assessments, credit risk alerts, and early warning monitoring.

Industry associations and chambers of commerce may conduct incentives and punishments for members trustworthy or untrustworthy conduct in accordance with their charters.

Article 49: [Establishment of Social Creditworthiness 1] The city is to encourage enterprises and public institutions that engage in public services to use Social Credit Information, innovate application scenarios, provide beneficial facilitation in public services for trustworthy credit subjects and increase the level of societal creditworthiness.

Article 50: [Establishment of Social Creditworthiness 2] The city encourages social units in fields such as courier services, domestic services, intermediary services, education and training, transport to establish and complete professional creditworthiness archives for workers, carry out education on creditworthiness, and strengthen management of workers' creditworthiness.

Article 51: [Establishment of Social Creditworthiness 3] The public shall comply with laws and regulations, stand by pledges, and respect contracts.

Natural persons are encouraged to request credit reports from service providers when receiving services such as home tutoring or housing rentals.

Article 52: [Establishment of Judicial Credibility] Judicial organs shall raise the level of rationality, systematization, and regulation in judicial work; making judicial fairness more strict, increasing judicial credibility, and preserving social fairness and justice.

Chapter VII: Legal Responsibility

Article 53: [Responsibility for Administrative Management] Where relevant government departments and their staffs have any of the following conduct, the competent higher-level departments or their units are to order corrections, where it caused serious consequences, sanctions are to be given in accordance with law; and where a crime is constituted, criminal responsibility is to be pursued in accordance with law

(1) Failure to follow provisions by violating the law in the recording, sharing, or disclosure of Social Credit Information;

(2) Failure to perform necessary inquiries into Public Credit Information or use credit products as provided;

(3) Failure to establish inquiry systems for Public Credit Information or to keep long-term logs of inquiries;

(4) Implementing punishments outisde the list of punishments for untrustworthiness or making designations for the list of seriously untrustworthy entities that are not in accordance with the standards and procedures;

(5) failure to perform duties to promptly handle objections or restore credit as provided;

(6) failure to perform confidentiality obligations in accordance with law;

(7) Failure to implement social credit incentive measures or implementing them illegally;

(8) Other conduct abusing professional powers, dereliction of duties, or improper conduct for personal gain.

Article 54: [Credit Service Establishments' Responsibility for Violations of Law] Where credit service establishments violate article 17 of these Regulations in the collection of information, the municipal department for the economy and information technology is to order corrections, where a crime is constituted, criminal responsibility is to be pursued in accordance with law

Chapter VIII: Supplemental Provisions

Article 55: [Authorization] The municipal department for the economy and information technology may draft implementation rules and management measures in accordance with these regulations.

Article 56: 【Effective Date】 These Regulations will take effect from xx/xx/xxxx.