Foreign NGO Management Law (Second Reading Draft) Full Text

A Comparison Chart of this draft and the final law is available bilingually here.

A primer and resource list on the draft is available here

An formatted ‘Cheatsheet’ of the Draft Law is available here

And a translation of an influential Chinese exposition of the draft law is available here.

The China Development Brief has also made an unofficial translation available on their site: Here

Source: http://www.npc.gov.cn/npc/xinwen/lfgz/flca/2015-05/05/content_1935666.htm

Foreign NGO Management Law (Second Reading Draft) Full Text

The People's Republic of China Foreign Non-Governmental Organizations Management Law (Draft) (Second Reviewed Draft) was reviewed by the 14th meeting of the Standing Committee of the 12th National People's Congress on April 4, 2015. The Foreign NGO Management Law (Second Reading Draft) is hereby released to the public on the Chinese National People's Congress website for solicitation of public comments. The public may directly login to the National People's Congress website to submit comments, and may also send comments by mail to the Legislative Affairs Commission of the Standing Committee of the National People's Congress (No. 1 Qianmen West Road, Xicheng District, Beijing 100805) [in Chinese: 北京市西城区前门西大街1号，邮编：100805] Please clearly indicate foreign NGO Management Law Second Reading Draft Solicitation of Opinions on the Envelope. Consultation deadline: June 4, 2015.

People's Republic of China Foreign Non-Governmental Organizations Management Law (Draft) (Second Reviewed Draft)

CONTENTS

Chapter I: General Provisions

Chapter II: Representative Offices

Chapter III: Temporary Activities

Chapter IV: Regulation of Conduct

Chapter V: Facilitation Measures

Chapter VI: Oversight and Management

Chapter VII: Special Provisions

Chapter VIII: Legal Responsibility

The National People's Congress Legal Committee report on revisions to the "People's Republic of China Foreign NGO Management Law" (Draft)

Chapter I: General Provisions

Article 1: This Law is formulated order to regulate and guide activities conducted by foreign NGOs within mainland China, safeguard their lawful rights and interests, and promote exchanges and cooperation.

Article 2: This law applies to foreign NGOs conducting activities within the territory of China.

"Foreign NGOs" as used in this law refers to not-for-profit, non-governmental social organizations formed outside mainland China.

Article 3: Foreign NGOs in fields such as economics, education, science and technology, health, culture, sports, environmental protection and charity may conduct activities beneficial to the development of the social welfare in accordance with law.

Article 4: Foreign NGOs legally carrying out activities within mainland China receive the protection of law.

Article 5: Foreign NGOs carrying out activities within mainland China shall abide by Chinese laws; must not endanger China's national unity, security, or ethnic unity; must not harm China's national interests, society's public interest, or other groups' and citizens' lawful rights; and must not violate public order and good customs.

Foreign NGOs must not engage in or fund for-profit activities or political activities, and must not illegally engage in religious activities or illegally fund religious activities.

Article 6: Foreign NGOs carrying out activities within mainland China shall conduct them through a lawfully registered representative office; unregistered representative offices that need to carry out activities shall first obtain a temporary activity approval.

Foreign NGOs that have not registered a representative office or obtained temporary activity approvals must not carry out activities within mainland China , must not commission or fund individuals, legal persons or other organizations within mainland China to carry out activities within mainland China.

Article 7: The State Council Public Security Department and the provincial level public security organs are the registration and management organs for foreign NGOs carrying out activities within mainland China .

The relevant departments of the State Council, relevant departments of provincial level people's governments, and organizations authorized by the State Council or provincial level people's governments are the professional management units for foreign NGOs carrying out activities within mainland China .

The relevant departments of the State Council and local people's governments at the county level or above are responsible for management of foreign NGOs within the scope of their duties.

The State will establish coordination mechanisms for managing foreign NGOs, and be responsible for researching, coordinating, and resolving major issues in the management of foreign NGOs.

Article 8: The State establishes foreign NGO management information system and a foreign NGO statistics system.

Article 9: The state shall give commendations to foreign NGOs that provide outstanding contributions to the development of China's public welfare.

Chapter II: Representative Offices

Article 10: Foreign NGOs that meet the following requirements may apply to establish a representative office within mainland China :

(1) was lawfully established outside of mainland China;

(2) Able to independently bear civil liability;

(3) has objectives and an operational scope beneficial to the development of the social welfare;

(4) has continuously carried out substantive activities outside of mainland China for two or more years;

(5) Other requirements provided for in other laws or administrative regulations.

Foreign NGOs may only establish one representative office within mainland China .

Article 11: Foreign NGOs applying to establish a representative office require the consent of a professional supervisory unit.

Article 12: Foreign NGOs shall apply to register the establishment of a representative office with the registration management organs within 30 days of obtaining the consent of the professional supervisory unit. Applications to register a representative office shall submit the following documents and materials to the registration management organs:

(1) the written application;

(2) Supporting documents and materials as provided for in the first paragraph of Article 10 of this Law;

(3) Proof of identity, resume and materials showing proof of no criminal record for the proposed chief representative;

(4) Materials showing the proposed premises for the representative office;

(5) Materials showing the sources of capital;

(6) Documents of consent from the professional supervisory unit;

(7) Other documents and materials provided for by law or administrative regulations.

Registration management organs reviewing the applications of foreign NGOs to set up representative offices may organize experts to conduct assessments as needed.

Registration management organs shall issue a decision to authorize or not authorize within 60 days of receiving an application.

Article 13: The registration management organs will issue a registration certificate to foreign NGOs' representative offices that are approved, and make a public announcement. Registration matters include:

(1) Name;

(2) Domicile;

(3) Scope of operations;

(4) Region of activities;

(5) Chief representative;

(6) professional supervisory unit;

(7) the duration of residence.

Foreign NGOs' representative offices using their registration certificate to get an organization number and tax registration, have an official seal made and establish an account at a bank within mainland China, and give copies of the organization number, tax registration certificate, form of their seal and bank account number to the registration management organs for recording.

Foreign NGOs' representative offices do not have status as legal persons.

Article 14: In any of the following circumstances, where foreign NGOs apply to establish a representative office, the registration management organs will not give approval:

(1) Where the provisions of articles 3,5, and 10 of this Law are not met;

(2) Where actual conditions were concealed or false information provided when applying;

(3) Where the chief representative has a criminal record;

(4) Other situations provided for by law or administrative regulations.

Article 15: The duration of residence for foreign NGOs' representative offices must not exceed 5 years; where at the completion of the period it is necessary to continue activities, a new application for registration shall be made to the registration management organs 60 days before the period is completed, and with the consent of the professional supervisory unit.

Article 16: Where foreign NGOs' representative offices need to modify items in their registrations, they shall apply to modify the registration with the registration management organs within 30 days of getting the consent of the professional supervisory unit.

Article 17: In any of the following circumstances, foreign NGOs' representative offices are deregistered by the registration management organs, and a public announcement is made.

(1) Where the foreign NGO withdraws its representative offices;

(2) Where the foreign NGO is terminated;

(3) Where the foreign NGOs representative office's duration of residence is completed and a new registration has not been completed;

(4) Where the foreign NGO has been deregistered, or its registration certificate revoked, in accordance with law.

(5) Where it is terminated for other reasons.

After FNGO representative offices are deregistered, where there are outstanding issues and related legal liability, the foreign NGO that established the representative office bears responsibility.

Chapter III: Temporary Activities

Article 18: Where foreign NGOs that have not established representative offices within mainland China seek to carry out temporary activities in mainland China, they shall first secure temporary activity permits. The duration of a temporary activity must not exceed one year.

Foreign NGOs seeking to carry out temporary activities within mainland China must cooperate with one of the following organizations (hereinafter "Chinese Partner Units"): state organs, mass organizations, public institutions, or social organizations.

Article 19: Foreign NGOs carrying out temporary activities shall first secure the agreement of the professional supervisory unit. However, state organs or units confirmed as Chinese partner units by the State Council Public Security Department may handle review and approval procedures in accordance with relevant national regulations.

Article 20: Foreign NGOs shall apply for approval of temporary activities with the registration management organs within 30 days of obtaining the consent of the professional supervisory unit or relevant department. Applications for approval of temporary activities shall submit the following documents and materials:

(1) the written application;

(2) Supporting documents and materials as provided for in the first paragraph of Article 10 of this Law;

(3) The written agreement between the foreign NGO and Chinese partner unit;

(4) Proof of funding sources and the bank account of the Chinese partner unit;

(5) The consent documents from the professional supervisory unit or relevant department.

(6) Other documents and materials provided by law or administrative regulations.

Registration management organs reviewing foreign NGOs' applications for approval of temporary activities may organize experts to conduct an assessment as necessary.

Article 21: Foreign NGOs may entrust a Chinese partner unit with handling relevant formalities with the professional supervisory unit and registration management organs.

Article 22: Registration management organs shall issue a decision to approve or not approve within 30 days of receiving the application. Where approval is given, a temporary activity permit document is issued.

Items in an approval of temporary activity include: the foreign NGOs' Chinese name, the Chinese partner unit, the activity or project, the region for the project, the duration of the project, and activity funding.

Chapter IV: Regulation of Conduct

Article 23: Activities conducted within mainland China by foreign NGOs that have established representative offices shall be handled by the representative offices.

Foreign NGOs' representative offices shall carry out activities in their registered name, and within their approved operational scope and region.

Except as otherwise provided by the State Council, foreign NGOs and their representative offices must not establish branch organizations in mainland China.

Article 24: Representative offices of foreign NGOs shall send an activity plan for the following year, including project implementation, use of funds and other such content to the professional supervisory unit for their consent before November 30 of each year; and report to the registration management organs within 10 days of the professional supervisory unit agreeing to file it in the record.

Before foreign NGOs carry out a program, they shall send their registration documents, temporary activity permits and activity contents to the public security organs of the people's government at the districted-city level to file for the record.

Article 25: Foreign NGOs carrying out activities inside China must not make requirements of Chinese partner units or beneficiaries that violate the laws and regulations of China or public order and good customs.

Article 26: Funding for activities of foreign NGOs within mainland China include:

(1) funds from lawful sources outside of mainland China;

(2) Interest on bank deposits within mainland China;

(3) Other capital lawfully acquired within mainland China.

Activities of foreign NGOs within mainland China must not use funds other than those provided for in the preceding paragraph.

Except as otherwise provided by the State Council, foreign NGOs and their representative offices must not solicit contributions or accept donations inside China.

Article 27: Foreign NGOs that have established representative offices shall use funds from the bank account within mainland China that is recorded with the registration management organs .

Foreign NGOs carrying out temporary activities shall use their Chinese Partner Unit's bank account to manage and use funds in mainland China, perform independent bookkeeping, and use funds only as they are allocated.

Foreign NGOs must not use any other model to receive and spend funds inside China other than in bank accounts provided for in the preceding two paragraphs,

Article 28: Foreign NGOs shall use funds in accordance with the registered scope of operations for their representative office or their agreement with a Chinese partner unit.

Article 29: Foreign NGOs' representative offices shall adopt China's accounting system, hiring accountants with Chinese professional certifications to lawfully carry out accounting. Financial accounting reports shall be audited by accounting firms in China and made public.

Article 30: Foreign NGOs launching activities within mainland China shall make wire transfers in accordance with China's rules on regulation of foreign exchanges and payments.

Article 31: Foreign NGOs' representative offices shall lawfully handle matters such as tax registration, tax declarations and payment of taxes.

Article 32: Foreign NGOs' representative offices hiring personnel or recruiting volunteers within mainland China , shall entrust local foreign affairs service units, or other units designated by the Chinese government, to handle it.

Foreign NGOs' representative offices shall report personnel information to the professional supervisory unit and registration management organs.

Foreign NGOs carrying out temporary activities must not directly recruit volunteers, and where truly needing volunteers, shall have the Chinese partner unit recruit.

Article 33: Foreign NGOs' representative offices and foreign NGOs carrying out temporary activities must not develop, or covertly develop , membership within mainland China;

Article 34: Foreign NGOs' representative offices shall establish a chief representative, and may establish 1-3 representatives as business requires.

Those with any of the following situations must not serve as chief representatives or representatives:

(1) Persons lacking or having limited civil capacity;

(2) Those with a criminal record;

(3) Chief representatives or representatives of representative offices that have been de-registered or had registration certificates cancelled within the last 5 years;

(4) Other situations provided for by law or administrative regulations.

Article 35: The proportion of foreign personnel at foreign NGOs' representative offices must not exceed 50% of total staff numbers.

Foreign NGOs' representative offices' personnel must not simultaneously hold positions at other foreign NGOs' representative offices.

Article 36: Foreign NGOs carrying out temporary activities shall carry out activities using the name on their permit.

Foreign NGOs and Chinese partner units shall send written reports to the professional supervisory units and the registration management organs, on areas such as activity conditions and the use of funds, within 30 days of concluding temporary activities.

Article 37: Foreign NGOs' representative offices shall file annual work reports to professional supervisory units, and after the professional supervisory units issue comments, send the reports to the registration management organs before March 31 for annual inspections.

Annual work reports shall include content such as financial accounting reports, audit reports, and reports on personnel or institutional changes.

Article 38: Individuals, legal persons, and other organizations within mainland China must not be retained or receive funding, or represent, or covertly represent, foreign NGOs carrying out activities that have not registered a representative office or acquired a temporary activities permit.

Chapter V: Facilitation Measures

Article 39:Relevant departments of all levels of people’s governments shall facilitate foreign NGOs in lawfully carrying out activities in mainland China.

Article 40: Registration management organs, together with relevant departments, will draft catalogues of foreign NGOs' activity areas and projects, and publish a list of professional supervisory units, in order to provide guidance to overseas NGOs carrying out activities.

Article 41: Relevant people's government organs at the county level and above should provide foreign NGOs with policy consultation and activity guidance services in accordance with law.

Registration management organs should establish information service platforms online to publicly provide information to foreign NGOs on the process of the application for registration of a representative office or for temporary activity permits.

Article 42: Foreign NGO representative offices shall enjoy tax and other policy benefits in accordance with law.

Article 43: Fees must not be collected for the annual inspection of foreign NGOs' representative offices.

Article 44: The chief representative and other representatives that are foreign employees of foreign NGO's representative offices may use the organization's registration certificate, documents proving the representative's status, and other materials to process work permits in accordance with law.

Chapter VI: Oversight and Management

Article 45: Foreign NGOs launching activities within mainland China shall accept supervision and management by the professional supervisory unit, public security organs, and relevant departments.

Article 46: Professional supervisory units perform the following supervision and management duties:

(1) responsibility for issuing an opinion on the foreign NGO's establishment of a representative office, modification of registration items, the carrying out of temporary activities, and the implementation of new programs;

(2) responsibility for issuing an opinion on the foreign NGO's representative office's annual inspection;

(3) guiding and overseeing the lawful carrying out of activities by foreign NGOs' representative offices and foreign NGOs that have acquired approval to carry out temporary activities;

(4) assisting public security organs and other departments in investigating foreign NGOs' and their representative offices' unlawful conduct.

Article 47:Public security organs perform the following supervision and management duties:

(1) responsibility for registering representative offices established by foreign NGOs;

(2) responsibility for giving comments on foreign NGOs' approval to carry out temporary activities;

(3) responsibility for the annual inspection of foreign NGOs' representative offices;

(4) responsibility for conducting supervision of foreign NGOs and their representative offices' activities, and investigating unlawful conduct.

Article 48: Departments such as those for national security, foreign affairs, finance, financial oversight, customs, tax, and foreign experts conduct oversight and management of foreign NGOs and their representative offices in accordance with the scope of their duties and law

Article 49: When performing their supervisory and management duties, public security organs may take the following measures in accordance with law:

(1) enter the foreign NGO's office and at activity's locations that is within China's territory to conduct an on-site inspection;

(2) question units and individuals related to matters being investigated, and request they explain the matter;

(3) consult and copy documents or materials related to the matters being investigated, and seal documents or materials that might be removed, destroyed, concealed or tampered with;

(4) seal or seize venues, facilities, or property related to the matters being investigated.

Article 50: Public security organs may make inquiries into bank accounts of units or individuals related to the matter being investigated. With approval of the responsible party for public security organs of people's governments at the districted-city level or above, people's courts may be requested to freeze bank account funds related to suspected crimes in accordance with provisions on employing freezing measures in the Criminal Procedure Law of the People's Republic of China.

Article 51: The competent departments for countering money laundering under the State Council conduct supervision and management of foreign NGOs' representative offices and Chinese partner units' establishment and use of bank accounts, and conduct anti-money laundering and counter-terrorism financial monitoring of bank accounts of individuals, legal persons, and other organizations within mainland China accepting foreign NGOs' funding.

Foreign exchange management organs will cooperate with public security organs inquiries into foreign NGOs' foreing exchanges and payments, and will provide financial monitoring information.

Chapter VII: Special Provisions

Article 52: Foreign NGOs seeking to independently or collaboratively establish foundations or private social institutions must apply for registration in accordance with this law, and all other relevant Chinese laws and administrative regulations. Consult the relevant provisions in Chapter 2 of this law for registration methods.

Article 53:Foreign NGOs independently or collaboratively establishing foundations or private social institutions must not conduct or perform the following activities within mainland China:

(1) Activities that violate the provisions of Article 5 of this law;

(2) Carrying out activities in the name of the foreign NGO, or directly or covertly representing foreign NGOs in carrying out activities within mainland China;

(3) Carrying out activities in the name of a foreign NGO or Chinese partner unit without approval;

(4) Engaging in fundraising activities.

Article 54: Apply articles 49, 50 and 51 of this Law for public security organs and relevant departments supervision and management of foundations and private civic institutions established or jointly established by foreign NGOs.

Chapter VIII: Legal Responsibility

Article 55: Where foreign NGOs applying to establish a representative office in mainland China, or foreign NGOs or Chinese partner units applying for temporary activity permits, submit falsified application materials or use other methods to conceal information in the application process, they will be issued a warning by the registration management organs and may be fined up to 200,000 RMB; where the circumstances are serious, the registration management organ will withdraw the registration certificate or temporary activity permit of the organization.

Article 56:In any of the following circumstances, foreign NGOs’ representative offices or foreign NGOs carrying out temporary activities or Chinese partner units will be given warnings or be ordered to suspend activities for a given period by the public security organs of people's governments at the district city level and above, have illegal assets or unlawful gains confiscated, and may be fined up to 200,000 RMB; where the circumstances are serious, their registration certificate or temporary activity permit documents will also be withdrawn by the registration management organs:

(1) Where materials, documents, and other information were not recorded in accordance with articles 13, 24, and 32 of this Law;

(2) Where registration certificates, seals, or temporary activity approval documents were falsified, fabricated, leased, or loaned out;

(3) Where representative offices initiated activities exceeding their registered scope of operations, activity region, or approval for temporary activities;

(4) Where they engaged in or supported for-profit activities;

(5) Where a name was used in violation of Articles 23, and 36 of this Law;

(6) Where funds were acquired or used in violation of provisions;

(7) Where banks accounts were not opened and used as provided for in this law;

(8) Where accounting was not conducted as provided for in this law;

(9) Where a spending plan was not sent as provided, or an accounting or audit report was not submitted or disclosed, as provided for in this law;

(10) Where fundraising was conducted in mainland China, or donations were accepted within mainland China, in violation of provisions;

(11) Where supervision and inspections were refused or not accepted as provided for in this law;

(12) Where modifications of registration were not completed as provided for in this law;

(13) Where membership was developed or covertly developed within mainland China;

(14) Where branch organizations were established in violation of provisions;

(15) Where staff was hired or volunteers recruited in violation of provisions;

(16) Where there are other violations of this law.

Article 57: in any of the following circumstances, public security organs for people's governments at the districted-city level will crack-down; confiscate illegally obtained property and unlawful gains; give directly responsible personnel warnings, and where the circumstances are serious, detain them for up to 10 days and fine them up to 50,000 RMB:

(1) Carrying out activities in the name of a foreign NGO or a foreign NGOs' representative offices without having registered or obtaining approvals for temporary activities;

(2) Carry out activities in the name of a foreign NGO or foreign NGO representative office that has not renewed its registration in a timely manner following the end of its period of validity;

(3) Carrying out activities in the name of a foreign NGO representative office that has been deregsitered, had its registration revoked, or has had its temporary activity permit revoked;

(4) Continuing to carry out activities on behalf of a foreign NGO whose temporary activity permit has expired or been cancelled;

(5) Carrying out activities in the name of a branch office of a foreign NGO in a manner that violates this law.

Article 58: In any of the following circumstances, public security organs for people's governments at the designated city level and above will order suspension of the illegal conduct; confiscate illegally obtained property and unlawful gains; and give directly responsible personnel warnings, and where the circumstances are serious, detain them for up to 5 days and fine them up to 50,000 RMB:

(1) Commission, fund, or support individuals, legal persons, or other organizations within mainland China to carry out activities on behalf of a foreign NGO that has not yet registered a representative office within mainland China or obtained a temporary activity permit;

(2) In instances where a foreign NGO has independently or collaboratively established a fund or private social enterprise, openly or covertly representing or using the name of that foreign NGO or fund or private social enterprise in carrying out activities.

(3) Where foreign NGOs establish or jointly establish foundations or private civic institutions and violate provisions of this Law in fundraising within mainland China or engaging in or supporting for-profit activities;

(4) Where individuals, legal persons or other organizations within China cooperate with foreign NGOs clearly knowing that they have not registered a representative office or obtained approvals for temporary activities.

(5) Where individuals, legal persons, and other organizations within mainland China accept commissions or funding from foreign NGOs, or represent or covertly represent foreign NGOs that have not registered a representative office in carrying out activities, or act as a recipient of capital on behalf of a foreign NGO.

Article 59: Where foreign NGOs, foreign NGOs' representative offices as well as foundations or private civic institutions established or jointly established by foreign NGOs have any of the following circumstances., the registration management organs will cancel their registration certificate or temporary activity approvals, or suppress them; where a crime is constituted, pursue criminal responsibility in accordance with law; and where a crime is not constituted, the public security organs for people's governments at the districted-city level and above will detain the persons who are directly in charge and other directly responsible personnel for up to 15 days:

(1) Subversion of state power

(2) Undermining ethnic harmony or engaging in separatism;

(3) Inciting resistance against enforcement of state law or administrative regulation;

(4) Gathering state secrets or intelligence;

(5) Spreading rumors, engaging in defamation, or the publication or dissemination of other harmful information that endangers state security or damages the national interest;

(6) Engaging in or providing financial assistance for political activities or illegal religious activities;

(7) Other activity that either endangers state security or damages the national or public interest.

Article 60: foreign NGOs and representative offices that have been deregistered, had their registration certificate cancelled or had a temporary activity approval cancelled for violations of this Law, must not apply to set up offices in mainland China or carry out temporary activities for 5 years from the date of deregistration or cancellation.

Foreign NGOs that carry out activities without registering or obtaining temporary activity approvals must not apply to set up offices in mainland China or carry out temporary activities for 5 years from the date of cancellation of their activities.

Foreign NGOs with circumstances provided for in article 59 of this Law must not establish an office or carry out temporary activities in mainland China.

Foreign NGOs that establish or jointly establish foundations or private civic institutions, whose registration certificates are revoked, must not apply to establish or jointly establish foundations or private civic institutions in mainland China for 5 years from the date the registration was revoked.

Article 61: Where foreign NGOs' representative offices are ordered to stop operations within a certain period of time, are deregistered , or have registration certificates revoked , they shall hand over registration certificates, seals and accounting documents to be sealed and stored by the registration management organs. Where organisations‘ registration has been revoked, the registration authorities will publicly announce the cancellation of their documents and seals .

Article 62: When foreign persons violate this law, public security organs or state security organs may, in accordance with the law, order them to leave the country within a given period of time, order their repatriation, or have them deported.

Article 63: State employees who abuse power or commit acts of negligence or act for personal gain in the course of work on managing foreign NGOs shall, if those acts do not constitute a crime, be given disciplinary sanctions in accordance with law.

Article 64: Where a violation of the provisions of this Law constitutes a crime, criminal responsibility is to be pursued in accordance with law.

Chapter IX: Supplementary Provisions

Article 65: "Private civic institutions" as used in this Law refers to lawfully registered social organizations, organized by social forces and engaging in social service activities.

Article 66: For Chinese and foreign cooperation to operate a school, apply laws and administrative regulations such as the “People’s Republic of China Law on Promotion of Privately-Run Schools” and “ People’s Republic of China Regulations on Chinese-Foreign Cooperation in Operating Schools” .

Article 67: This law shall take effect on XXXXX.

The National People's Congress Legal Committee report on revisions to the "People's Republic of China Foreign NGO Management Law" (Draft)

The 12th Meeting of the Standing Committee conducted the first deliberation regarding the Foreign NGO Management Law. After the meeting, the Legislative Affairs Commission printed and distributed the draft to the provinces (regions, municipalities) and related Party departments seeking comments. The Legal Committee and the Legal Affairs Commission convened conferences numerous times to listen to the views of some of the representatives of the National People's Congress, and other parties concerned, and went to Guangdong to conduct research and investigation. On April 2, the Legal Committee convened a meeting, and based on the Standing Committee members' deliberative opinions and other parties' opinions, carried out deliberations on each provision of the draft. The responsible comrades of the Legislative Affairs Office of the State Council, the Ministry of Public Security, and the Ministry of Civil Affairs attended the meeting. On April 10, The Legal Committee convened a meeting, again conducting deliberations. Below is a report of major issues and amendments to the current Foreign NGO Management Law:

I. Concerning Foreign NGOs' Legal Rights and Benefits and Facilitation Measures. Some Standing Committee members and departments proposed that when clarifying the management measures of foreign NGOs a number of corresponding protective regulations and facilitation measures be added. After investigation, it was proposed to add the provisions: "Foreign NGOs legally carrying out activities within the territory of China receive the protection of law." "Foreign NGOs may entrust the Chinese partner to register with handling relevant formalities with the professional supervisory unit and registration management organs." ”Registration management organs should establish information service platforms online to publicly provide information to foreign NGOs on the process of application for registration as a representative office or for temporary activity permits." "Foreign NGO representative offices shall enjoy tax and other policy benefits in accordance with law. "(Second Reading Draft, Articles 4, 21, 41 second paragraph, 43)

II. On State organs' review and approval of foreign joint cooperative temporary activities. Article 17 of the Draft provides "Foreign NGOs seeking to carry out temporary activities should first secure the agreement of the work management unit." Some departments pointed out that currently there is already a strict approval process for state organs cooperation with foreign organizations, and the state organs may follow the existing foreign affairs work system to complete approval procedures and then go to the public security organs for temporary activity approvals. The public security organs under the State Council may also confirm that some mass organizations, public institutions and foreign NGOs' carrying out temporary activities will complete formalities in accordance with the above proivsions. Upon study by the Legislative Affairs Office of the State Council and Ministry of Public Security, it was suggested that this article be changed to: "Foreign NGOs seeking to carry out temporary activities should first secure the agreement of the work management unit." However, state organs or units confirmed as Chinese partner units by the State Council Public Security Department may handle review and approval procedures in accordance with relevant national regulations. (Second Reading Draft, Article 19)

III. On foreign NGOs establishing branch organizations. Article 20, paragraph 3 provides: "Foreign NGOs and their representative offices must not establish branch organizations in China." Some areas and departments pointed out that currently there are already a few important international scientific NGOs in China that have established branch organizations, that our nation actively supports the establishment of branch organizations of important international organizations, and suggested making the provisions a bit more flexible. Upon study, so as to increase the status and influence of China in international organizations, to promote normal international scientific and technical exchange, it is suggested article 20 paragraph 3 of the article be change to "Except as the State Council has otherwise provided, foreign NGOs and their representative offices must not establish branch offices in China. (Second Reading Draft Article 23, paragraph 3)

IV. On Legal Responsibility. The draft makes provisions on the legal liability of foreign NGOs and their representative offices. Some departments suggested that the legal liability of state employees for unlawful conduct in managing foreign NGOs should be clarified. Upon study, it was suggested that a provision be added on the legal liability of state employees who abuse power or commit acts of negligence or act for personal gain in the course of work on managing foreign NGOs (Second Reading Draft article 63), and suggested that a distinction be made between unlawful acts by foreign NGOs and their representative offices, and corresponding adjustments be to the punishments.

In addition, some linguistic changes were also made to the draft.