Regulations on Registration and Management of Social Service Organizations (Draft Revisions for Solicitation of Public Comment)

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Notice of Public Solicitation of Comments on the Ministry of Civil Affairs Provisional Regulations on the Registration and of Management Civil Non-enterprise Institutions [revision draft for the solicitation of comments]

In order to implement the Charity Law, adapt and develop civil non-enterprise institutions, in accordance with the 2016 legislative plans of State Council and Ministry of Foreign Affairs, the Ministry of Civil Affairs in summarizing its experience, deep investigation and research, solicited opinions, and a strong basis of repeated research, puts forth a revision on the "Interim Regulations on the Registration and Management of Civil Non-Enterprise Institutions." In order to more accurately reflect the orientation and nature of social services organizations, and connect with the "PRC Charities Law", this amendment changes "civil non-enterprise institutions" to "social service organizations" in the text and title of the regulations. In order to widely hear the views of the public and further increase the quality of legislation, the full text of the draft for public comments and its explanatory note are hereby released, and solicit the views of all aspects of society. Units and members of the public who have comments may submit them through the following means:

(1)登陆民政部网站(网址http://www.mca.gov.cn),点击首页上方导航栏“互动”,进入“征求意见”栏(或直接点击首页下方“征求意见”栏),随后点击《<民办非企业单位登记管理暂行条例(修订草案征求意见稿)>公开征求意见的通知》提交意见。

(2)Electronic comments may be submitted by email to:zcfgs@mca.gov.cn。

(3)Written comments should be mailed to: Ministry of Civil Affairs Policy and Regulation Department, 147 Heyan Ave., Dongcheng District, Beijing (Zip code: 100721). On the letter please clearly indicate "Comments on Social Service Organization Regulations."

The deadline for Comments and Feedback is June 26, 2016.

 

Attachments: Regulations on Registration and Management of Social Service Organizations, Provisional Regulations on the Registration and Management of Civil Non-Enterprise Institutions. Draft Amendments for Solicitation of Public Comment, and Explanations.

 

Ministry of Civil Affairs

May 26, 2016

Attachments

 

Chapter I: General Provisions

Chapter II: Jurisdicition

Chapter III: Registration

Chapter IV: Organizational Structure

Chapter V: Activity Norms and Asset Management

Chapter VI: Information Disclosure

Chapter VII: Supervision and Management

Chapter VIII: Legal Responsibility

Chapter IX: Supplementary Provisions

Regulations on the Registration and Administration of Social Service Organizations

( "Provisional Regulations on the Registration and Management Private Non-enterprise Units"

Draft Revisions for soliciting comments)

 

Chapter I: General Provisions

 

Article 1: These regulations are drafted to standardize the registration and management of social service organizations, to ensure the lawful rights and interests of social service organizations, and to promote the healthy development of social service organizations.

Article 2: "Social Service Organizations" as used in these Regulations refers to non-profit legal persons established primarily with non-governmental assets by natural persons, legal persons or other organizations to provide social services.

Article 3: Social service organizations shall obey the Constitution, laws, regulations, and national policies, and must not oppose the basic principles of the Constitution, must not endanger national unity, security or ethnic unity, and must not endanger national interests, the societal public interest, and the lawful rights of other organizations and citizens, and must not go against social morality.

Article 4: Based on actual circumstances, social service organizations shall set up Chinese Communist Party Organizations and carry out Party activities. Social service organizations shall provide necessary conditions for Party organizations' activities.

Article 5: The State protects Social Service Organizations carrying out of activities in accordance with laws, regulations, rules and their charters, and no organizations may unlawfully interfere.

Article 6: The Ministry of Civil Affairs under the State Council and departments of civil affairs for all levels of local people's government at the county level and above are the Registration Management Organs for Social Service Organizations at the level of people's government (Hereinafter Registration Management Organs).

"The relevant departments under the State Council and the relevant departments of all level of people's government at the county level or above, and organizations authorized by the State Council or all level of people's government at the county level or above, are Professional Supervisory Units for Social Service Organizations (Hereinafter professional supervisory units) within that field or operational scope. "

Relevant departments of people's governments at the county level or above follow this Regulation and other relevant laws and regulations to complete relevant work within the scope of their own responsibilities.

Where laws or administrative regulations have other provisions on the supervision and management of Social Service Organizations, follow the relevant laws or administrative regulations for implementation.

Article 7: The State encourages the setting up of Social Service Organizations, and uses methods such as government subsidies, procurement of services, land allocation, and cultivation of human talent, to support the development of Social Services Organizations.

Social Service Organizations and individual or organizations that donate to Social Service Organizations, enjoy preferential tax treatment in accordance with relevant laws and administrative regulations.

Social service organizations making outstanding contributions to economic and social development will be given commendations and awards in accordance with relevant national regulations.

 

Chapter II: Jurisdicition

Article 8: Civil affairs departments of all levels of people's government at the county level or above are responsible for registration and management of social service organization reviewed and approved by the professional supervisory unit at that level.

Directly registered social service organizations apply for registration to the civil affairs department of their area's local people's government at the county level or above; and of these, urban and rural community social service organizations shall apply to the civil affairs department for the county level people's governments for their area.

Civil affairs departments of all levels of people's government at the county level or above are responsible for registration and management of social service organizations lawfully permitted by the industry approvals organ at that level.

Social service organizations that under laws, administrative regulations and national policies shall register with the civil affairs department under the State Council, apply for registration to the civil affairs department under the State Council.

Article 9: Where the domiciles of registration management organs, professional supervisory units and the social service organizations in their jurisdiction are not in the same area, the registration management organs, and professional supervisory unit in the area of the social service organization's domicile may be entrusted with responsibility for supervision and management work within the scope entrusted to them.

 

Chapter III: Registration

 

Article 10: The establishment of social service organizations shall follow these Regulations to conduct registration.

The establishment of social service organizations shall be upon review and consent of their professional supervisory unit.

To establish the following social service organizations, apply for registration directly with the registration and management organs:

(1) Science and technology type social service organizations that engage in academic research and exchange activities in the fields of natural sciences and engineering technology;

(2) Public interest charity type social service organizations providing services such as poverty support, poverty alleviation, support for the elderly, orphan rescue, relief, disability aid, disaster relief, medical aid, and educational support;

(3) Urban and rural community service type social service organizations that carry out activities to meet the needs of urban and rural community residents lives.

Article 11: Those applying to establish social service organizations shall meet the following conditions:

(1) not have profit-making as a goal;

(2) Have a clear range of social services;

(3) Have a standardized name and charter;

(4) Have lawful assets appropriate for carrying out services;

(5) Have an organizational structure, venues, and employees suitable for their operational activities;

(6) have the ability to independently bear civil liability;

(7) other requirements provided for by laws and administrative regulations.

Social service organizations' registered capital must not be less than 30,000 Renminbi. The civil affairs departments for provincial level people's governments formulate specific registered capital standards for applications to register with civil affairs departments of people's governments below the provincial level.

Article 12: In applying to establish social service organizations, applicants shall provide the following materials to the registration management organs:

(1) the written application;

(2) The draft charter;

(3) A written promise to donate property, and capital verification;

(4) Proof of the right to use venues;

(5) The basic information and proof of identity for the applicant, directors, supervisors, and those who will serve as responsible persons.

Where social service organizations must have the review and consent of a professional supervisory unit before registration, the applicant shall also submit the professional supervisory unit's approval documents.

The applicant for social service organizations shall be responsible for the veracity and completeness of registration application materials, be responsible for activities in the course of applying to register a social service organization, and must not carry out activities unrelated to the application in the name of the social service organizations they are applying to establish.

Article 13: The names of social service organizations shall comply with the provisions of laws, regulations, rules and policies, and must not be contrary to social morals and customs.

The names of social service organizations must correspond to their registered region, operational scope, and organization type, and accurately reflect their character.

Social service organizations registered by civil affairs departments of people's governments below the provincial level shall bear the name of the relevant administrative region.

Article 14: The charters of social service organizations shall clearly indicate the following matters:

(1) Name and domicile;

(2) Purpose and scope of operations;

(3) Amount and sources of registered capital;

(4) the organizational structure, production procedures, authority, and rules for formal discussions;

(5) The qualifications, duties, selection procedures, term of office, and removal procedures for directors, supervisors and responsible parties;

(6) asset management and utilization systems;

(7) Conditions and procedures for termination of the organization and for asset disposition after termination;

(8) Procedures for revising the charter;

(9) other matters that should be provided for in the Charter.

Article 15: The registration management organs shall issue a decision to authorize or not register within 30 days of receiving all valid application materials provided for in article 12 of this Regulation. Where the situation is complicated, an appropriate extension may be given upon permission of the civil affairs department at the level above, but the extended period must not exceed 60 days.

Those that are approved to register and have had their charter reviewed and approved will be issued a "Certificate of Registration as a Social Service Organization Legal Person". Registration matters indicated on the "Certificate of Registration as a Social Service Organization Legal Person" will include: the name, domicile, purpose, scope of operations, legally-designated representative and responsible parties, and registered capital.

Social service organizations established by review and consent of professional supervisory units shall also include the professional supervisory unit.

Article 16: In any of the following circumstances, the registration management organs will not give approval and will explain the reasons to the applicant in writing:

(1) There is evidence showing that the purpose or operational scope of the social service organization applying to register is not eligible under article 3 of these Regulations.

(2) there were misrepresentations or falsehoods at the time of the application to register;

(3) The establishment requirements of article 11 of these Regulations are not met;

(4) The future directors, supervisors, or responsible parties have circumstances provided for in article 32 of these Regulations making them unfit to serve;

(5) there are other situations prohibited by laws or administrative regulations.

Article 17: Social service organizations use their registration certificate to apply to have an official seal cut, to open bank accounts, and send a sample of the seal and the bank account numbers to the registration management organs to file for the record.

Where there is a change in the directors or supervisors of social service organizations, it shall be reported to the registration management organs to file for the record.

Article 18: Where there are changes in social service organizations' registration matters, an application for modification of the registration shall be reported to the registration management organs within 30 days of the changes.

Revisions of social service organizations' charters shall be upon review and approval of the registration management organs.

Applications to modify registration matters or approved charters of ocial service organizations established by review and consent of professional supervisory units shall first have the review and consent of the professional supervisory unit.

Article 19: Where the establishment or modification of social service organizations involves major public interests, the registration management organs may solicit opinions of relevant departments or hear opinions through other means such as discussion sessions or hearings, and the necessary time will not be calculated into the period for review. The registration management organs shall inform the applicants of the time required.

Article 20: In any of the following circumstances, social service organizations shall terminate and apply to the registration management organs to withdraw their registration:

(1) Termination in accordance with the charter;

(2) The board of directors decides to terminate;

(3) where termination is required due to division or merger;

(4) It is not possible to continue engaging in service activities as provided by the purpose of the charter;

(5) Where they have been deregistered or the registration certificate is revoked in accordance with law;

(6) The social service organization cannot pay off debts, and has assets insufficient to pay off outstanding debts, or conspicuously lacks capacity to make payment.

Article 21: Within 30 days after conditions for deregistration manifest, social services organizations shall establish liquidation groups with the guidance of the professional supervisory unit, registration management organs, and other relevant agencies, and begin liquidation.

Where social services organizations have not formed a liquidation team and conducted liquidation within the time limit, the liquidation team did not fulfill its duties or circumstances which harm the social service organizations' assets exist, creditors may apply to the people's courts to designated relevant personnel as the liquidation team and to conduct the liquidation.

Where no creditors apply within 1 year of the appearance of conditions of disolution, the professional supervisory units of social service organizations reviewed and established through it, or the registration management organs of directly registered social service organizations, may apply to the people's courts.

During the liquidation period, social service organizations must not carry out activities other than liquidation.

Social service organizations with the dissolution conditions provided in Article 26 (6) shall follow the relevant procedures under the "PRC Bankruptcy Law".

Article 22: The liquidation team has the following authority during the liquidation period:

(1) liquidate the social service organization's assets, separately compiling debt and asset lists;

(2) Notify and inform creditors;

(3) Handle the social service organization's unfinished business relevant to liquidation;

(4) Pay all owed taxes as well taxes generated from the process of liquidation;

(5) Clear up credits and debts;

(6) Handle the social service organization's assets remaining after debts are repaid;

(7) Represent the social service organization in civil litigation activities;

The members of the liquidation team shall perform their duties in accordance with law and must not exploit their authority to accept bribes or other illegal income, and must not appropriate the social service organization's assets.

Liquidation team members bear responsibility for compensation for losses suffered by the social service organization or creditors caused by intent or gross negligence.

Responsible parties, directors, and staff of social service organizations shall cooperate with liquidation teams' work, and shall bear responsibility for compensation of losses suffered by the social service organization or creditors caused by intent or gross negligence.

Article 23: The liquidation team shall notify creditors within 10 days of its establishment, and publish a notice in newspapers within 60 days. Creditors shall report their claims to the liquidation team within 30 days of receiving notification, or if no notification is received, within 45 days of the public announcement.

Creditor's claims shall explain matters relevant to the claim and provide supplementary materials. The liquidation team shall register creditor's claims.

During the period for reporting claims, the liquidation team must not pay out creditors' claims.

Article 24: After handling the social service organization's property and compiling lists of credits and debts, the liquidation team shall formulate a liquidation plan and report to the board of directors or a people's court for confirmation.

Payout priority of social service organizations' assets, following payment of liquidation costs, follow this order:

(1) Repaying fees to those owed services;

(2) Paying workers' salaries;

(3) Social insurance fees and legally prescribed compensation;

(4) Payment of owed taxes;

(5) Reimbursement of other debts.

The assets remaining after social service organizations repay debts shall be used for social services and public interest goals designated by the charter; and where they cannot be disposed of in accordance with the charter, the registration management organs organize their donation to non-profit organizations of the same character as the social service organization and having a similar purpose, an announce this to the public. Assets of private non-enterprise units registered before the implementation of these Regulations remaining after payment of debts shall be determined by the Ministry of Civil Affairs under the State Council together with other relevant departments.

Article 25: Within 15 days of completing liquidation, social service organizations shall handle de-registration formalities with the registration management organs.

When social services organizations apply for deregistration, they shall submit a written application for deregistration and a liquidation report to the registration management organ. Social service organizations registered through the review and consent of a professional supervisory unit shall also submit the professional supervisory units review and consent documents.

Registration management organs shall approve deregistration within 30 days of receipt of all valid documents, issue a proof of deregistration certificate, and collect the registration certificate, seal, and financial certificates.

Article 26: Establishment, modifications, and deregistration carried out in accordance with these Regulations shall be reported to the public by the registration management organs after registration.

 

Chapter IV: Organizational Structure

 

Article 27: Social service organizations establish a board of directors with 3-25 directors.

The first directors are jointly nominated by the applicant and donors, and confirmed through consultation. Subsequent directors are nominated by the Board of Directors and elected. The term for directors is set forth in the charter, and each term must not exceed 5 years. Upon completion of a director's term, they may be re-elected.

The Board of Directors establishes one Chairperson, and may establish vice-chairs.

Article 28: The Board of Directors is the social service organization's decision-making body and performs the following duties:

(1) Revising the Charter;

(2) Making division, merger, or termination decisions;

(3) Deciding matters relating to appointment and dismissal of the Chairperson, vice-chairs and directors;

(4) Confirming candidates for legally-designated representative, and appointing and dismissing responsible parties of implementation bodies;

(5) Formulating internal management systems;

(6) Deliberating annual work plans, financial budgets, and final financial reports;

(7) Deliberating major business activities, the handling of major assets, and important activities involving foreign interests;

(8) Deliberating annual work reports and financial accounting reports;

(9) Other authority provided for in the charter.

The board of directors shall record its discussions in meeting records and resolutions. and directors who are present shall sign the meeting records and resolutions.

Resolutions made by the Board of Directors in violation of these regulations or charter provisions are invalid.

The Chairperson convenes and presides over the meetings of the board of directors; if the Chairperson does not perform their duties, through a simple majority of the directors may jointly select a deputy director or director to convene and preside over meetings.

Article 29: Social service organizations may establish implementation bodies. Implementation bodies work under the leadership of a responsible party for the implementation body, who is responsible for organizing and implementing the board of directors' resolutions and other authority provided by the charter.

Responsible parties of implementation bodies that are not directors attend meetings without voting powers.

Article 30: Social service organizations may establish supervisors or a board of supervisors comprised of three or more people. Social services organizations which are registered as, or designated as, charitable organizations shall establish supervisors.

Supervisors are selected by the principle donors, professional supervisory units, and registration management organs. The term of office for supervisors is the same as for directors, and they may serve successive terms, but must not serve more than two terms. Directors, responsible parties, financial personnel, and their close relatives cannot serve part time as supervisors.

Supervisors perform the following duties:

(1) Lawfully supervise social service organizations' carrying out of activities according to the charter;

(2) Attend meetings of the board of directors as non-voting delegates, and have the right to raise questions and offer suggestions to the Board of Directors;

(3) Supervise the work of the legally-designated representative, review financial affairs and accounting information;

(4) Have authority to reflect conditions back to the professional supervisory units, registration management organs, and taxation and accountancy authorities;

(5) Other powers granted by the charter.

Article 31: The responsible party of a social service organization serves as its legally-designated representative in accordance with the provisions of the charter. Where laws or administrative regulations otherwise provide, follow those provisions.

Article 32: Those with any of the following circumstances must not serve as a social service organization's responsible party, director or supervisor:

(1) Persons lacking or having limited civil capacity;

(2) Those who have been punished for an intentional crime, where 5 years has not yet elapsed since the completion of the criminal penalty;

(3) Those who served as the legally-designated representative of social organizations whose registration certificate was revoked for violations of the law and bore personal responsibility, within 5 years since the date of revocation;

(4) those with other situations provided for by laws or administrative regulations making them unfit to serve.

The election or appointment of responsible parties, directors, and supervisors contrary to the provisions of the preceding paragraph is void. Where responsible parties, directors, or supervisors manifest the circumstances provided for in the preceding paragraph during their terms of office, social service organizations shall remove them from office in accordance with its charter.

Employees of State organs must not serve as social service organizations' responsible parties.

The number of directors who are close relatives with each other must not exceed one-third of the total number of directors. Directors who receive salary from the social service organization must not exceed one-third of the total number of directors.

Article 33: The responsible party, directors, or supervisors of social service organizations shall obey the law, regulations, and the charter of the social service organization, to faithfully perform their duties and preserve the interests of the social service organization, and must not exhibit the following conduct:

(1) Violating policy-making procedures or internal management regulations, exceeding authority or slacking in the performance of duties;

(2) Concealing situations in the course of work, or making false reports;

(3) Having transactions with the social service organization, harming the interests of the unit;

(4) Participating in any policy decisions related to one's personal interests or exploiting one's position to obtain unfair advantage;

(5) Other conduct in violation of duties of loyalty and dilligence that harms the interests of the unit.

Those who violate the provisions in the preceding paragraph resulting in loss suffered by the social service organization shall assume responsibilities for compensation.

 

Chapter V: Activity Norms and Asset Management

 

Article 34: Social service organizations carrying out activities that require obtaining business permits shall apply to the relevant business approval organs for a permit or approval documents in accordance with laws and administrative regulations.

Article 35: Social service organizations registered with civil affairs departments of county-level people's governments may set up branch organizations in the county-level administrative region in which it is domiciled.

Branch organizations are a constituent part of the social services organization without standing as a legal person; they shall carry out activities in accordance with the purpose and operational scope of the social service organization's charter within the scope authorized by the social service organization and using the full standard name of the social service organization to which they belong.

Article 36: Assets of social service organizations include:

(1) Registered funds;

(2) Assets donated by society;

(3) Income obtained carrying out social services within the approved scope of operations, government funding and income from government procurement of services.

(4) Assets formed through maintaining or increasing value;

(5) Other lawful assets.

Article 37: Social service organizations shall follow the principles of lawfullness, safety and efficacy to manage their assets.

Social service organizations' assets shall be used in accordance with the charter, and must not be divided among the applicants, donors, and the responsible parties.

Social service organizations' assets must not be privately divided, embezzled, withheld, or misappropriated by any organization or individual.

Social services organizations using state property shall obey the relevant provisions regarding the supervision and management of state property.

Social services organizations must not use their assets as guarantees for other organizations or individuals, or give loans unrelated to their charitable purposes, and must not become a joint liability investor for the debts of an investments organization.

Assets from government funding, and assets that a donation agreement provides must not be used as investments, must not be used for investment.

Article 38: Where social service organizations have transactions with parties having related interests, the principles of openness, fairness, and equity shall be followed and the interests of the social service organization must not be harmed.

When boards of directors deliberate transactions with parties having related interests, directors with an interest in the transaction shall be recused from voting, and must not act as a voting proxy for other directors.

Article 39: Social service organizations' acceptance of donations and carrying out of fundraising activities shall follow the relevant laws and administrative regulations and comply with their charters' goals and scope of operations. Donated assets which are accepted shall be utilized in the time, method, and purpose agreed upon with the donor.

Donors have the right to make inquiries to social service organizations on the use and management of donated assets, and to submit opinions and suggestions.

Article 40: Social service organizations shall set up a financial system in accordance with the national unified accounting system, draft financial accounting reports and sound internal control mechanisms, regulate the use of receipts, and accept the supervision of finance departments.

The assets of social service organizations originating from state funding or societal donations and funding shall be subjected to the supervision of audit organs.

The capital flow for social service organizations carrying out activities shall only be through the accounts filed for the record with the registration management organs, and must not utilize the accounts of other organizations or individuals.

Article 41: Social service organizations and their staffs may not forge, alter, rent, lend, or transfer their own registration certificates or seals.

Where registration certificates or seals are lost or destroyed, social service organizations shall publicly declare them as void and apply for replacements.

Article 42: Social service organizations accepting foreign donations, carrying out foreign cooperation, entering international organizations, and so forth, shall follow the relevant national regulations and establish a corresponding management scheme.

 

Chapter VI: Information Disclosure

 

Article 43: The registration management organs and other relevant government departments shall promptly disclose the following information to the public:

(1) Matters relating to social service organizations' registration and permits;

(2) a list of social service organizations registered or designated as charitable organizations;

(3) tax incentives, funding subsidies and other benefit measures for social service organizations;

(4) The outcomes of any inspections, random inspections or evaluations of social service organizations;

(5) The outcomes of commendations and punishments of social service organizations;

(6) Other information that laws and regulations provide shall be disclosed.

The registration management organs and other relevant government departments shall establish information-sharing mechanisms on social service organizations.

Article 44: Within 30 days of the following information being produced or being modified, social service organizations shall disclose it to the public through the unified information platform of the registration management organs and through other methods to facilitate inquiries form the public:

(1) Registration matters;

(2) the charter;

(3) The list of responsible parties, directors, and supervisors;

(4) The contents of services and fee standards;

(5) The acceptance and use of donations;

(6) Tax benefits, funding subsidies, and government procurements of service situations;

(7) Transactions with parties of common interests;

(8) The imposition of administrative punishments;

(9) The setting up of branch organizations;

(10) Other information that shall be disclosed in accordance with law.

Article 45: Between January 1 and June 30th each year, social service organizations shall submit the previous year's work report to the registration management organs through the registration management organs' uniform information platform.

The content of social service organizations' annual work reports includes:

(1) Basic information;

(2) The state of operational activities;

(3) The state of the organizations' structure;

(4) The status of supervision and management from relevant departments;

(5) supervisor's comments;

(6) performance on information disclosure obligations;

(7) financial accounting reports;

(8) Other information requested by the registration management organs.

Information in items (1)-(6) of the preceding paragraph shall be disclosed to the public, and social service organizations choose whether to publicly disclose information in items (7),(8) .

The annual reports and disclosed content of social service organizations that have been lawfully registered or designated as charitable organizations shall include a registered audit report of a registered accountant.

Article 46: Social service organizations shall be responsible for the veracity, completeness, and timeliness of disclosures. Information disclosure shall be convenient for public access, and must not have any misrepresentations, misleading statements or major omissions. Where social service organizations have been registered or designated as charitable organizations by civil affairs departments shall also disclose relevant organizational and activity information in accordance with law.

Social service organizations shall make information archives of information that has already been disclosed and preserve it well.

Information involving state secrets, commercial secrets, or personal privacy, as well as any other information that laws or administrative regulations provide is not to be disclosed, must not be disclosed. Information that a donor does not consent to being disclosed must not be disclosed.

 

Chapter VII: Supervision and Management

 

Article 47: Registration and Management Organs perform the following supervision and management duties:

(1) Approval of the establishment, amendment, and deregistration of foundations and the approval of their charters;

(2) Prompting social service organizations to perform their information disclosure obligations, and conduct random checks on information disclosed by social service organizations;

(3) Conduct supervision and management of how social service organizations carry out activities in accordance with these regulations and their charters;

(4) Lawfully investigating and disciplining social service organizations with conduct violating these Regulations.

Article 48: Civil affairs departments are to establish systems for recording social service organizations' assessments, credit histories, annual work reports, and irregular activities; and announce relevant information on social service organizations to the public through the unified information platform.

Article 49: Registration management organs have authority to adopt the following measures against social service organizations suspected of violating provisions of this Regulation.

(1) to meet with the responsible party and relevant staff;

(2) to carry out on-site inspections at the domicile and the site of the unlawful conduct;

(3) to request the responsible party make explanations, to consult and reproduce materials related to the matters, and to seal documents or materials that might be removed, destroyed, concealed or tampered with;

(4) to conduct investigations and inquiries with relevant units and individuals regarding situations related to supervision and management;

(5) to inquire into social service organizations' accounts, with the approval of the people's governments at the same level;

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

No fewer than two employees will conduct on-scene investigations or inspections, and they shall present lawful idetification documents and inspection or investigation notices.

Relevant units and individuals shall cooperate when registration management organs perform their registration and management duties in accordance with law.

Article 50: Professional supervisory units perform the following supervision and management duties:

(1) Be responsible for the social service organizations establishment, modification, or deregistration, as well as examinations before approval of the charter;

(2) Supervise and guide social service organizations' compliance with the constitution, laws, regulations, rules, and relevant national policies, and to their charters, in carrying out activities;

(3) Supervise and guide the social service organization in formulating annual work reports and performing information disclosure obligations;

(4) Assisting the registration management organs and other relevant departments in their investigation of social service organizations' violations;

(5) Working with other relevant departments to guide social service organizations in liquidation matters;

Article 51: Departments of people's governments at the county level or above with functions such as in foreign affairs, development and reform, public security, finance, human resources and social security, audits, taxation, and so forth, are to perform supervision and management duties for social service organizations' matters in their field, and lawfully investigate and handle any conduct violating laws and regulations and promptly report this to the registration management organs.

Article 52: Registration management organs shall establish a social supervision mechanisms, encouraging the public to supervise social service organizations' lawful carrying out of activities. The public and the news media may supervise the social services activities carried out by social service organizations. The public may report any social service organizations' conduct in volation of laws or regulations to the registration management organs and other relevant departments departments in accordance with law; and the relevant departments shall promptly accept the case.

Social service organizations may establish industry organizations to carry out industry management and supervision.

Article 53: Registration management organs place social service organizations with any of the following situations on list of irregularities or a list of serious illegalities, and announce this to the public through the unified information platform.

(1) Those who fail to make public their annual reports or relevant organizational information in the time provided by these Regulations;

(2) Disclosed information that conceals the true situation or is false or misleading;

(3) other situations in violation of laws or regulations.

Specific implementation measures will be formulated by the Ministry of Civil Affairs under the State Council.

 

Chapter VIII: Legal Responsibility

 

Article 54: The registration management organs are to deregister social service organizations that obtained registration through fraud or misrepresentations. The Registration Management Organs may fine the directly responsible persons up to 50,000 yuan.

Article 55: Where social service organizations no longer possess registration requirements, the registration management organs are to order that corrections be made within a set period of time, and where after that deadline the requirements are still not met, they will revoke the registration certificate.

Article 56: Where social service organizations have any of the following circumstances, the registration management organs will order them to correct the situation and may give warnings or order them to stop activities in a fixed period of time; where there are unlawful gains, those gains are to be confiscated; and a fine of 10,000 to 30,000 yuan may be imposed, either independtly or in conjunction with other punishments; where the circumstances are serious, registration certificates may be revoked:

(1) Forgery, modifying or renting, lending or transferring registration certificates or seals;

(2) Exceeding the objectives and operational scope of the charter provisions to carry out activities;

(3) Where supervision and inspections were refused or not accepted as provided, or where the truth was concealed or falsified during supervision and inspections.

(4) Where regulations were not followed in handling changes to the registration, authorizations, or filings on the record, or true circumstances were concealed, falsified or misrepresented;

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

(6) privately divided, embezzled, withheld, or misappropriated social service organizations' assets;

(7) Violating relevant national provisions to raise funds, acquiring income or accepting and using donations or funding;

(8) Other situations in violation of this Regulation.

Where social service organizations have any of the circumstances listed in the preceding paragraph, the registration management organs may give a warning or impose a fine of up to 10,000 yuan to the legally-designated representative, responsible party, or directly responsible personnel. For the circumstance listed in item (7) of the preceding paragraph, an order is to be given to the relevant responsible party to return the property by a certain deadline, and where a loss is caused to the social service organization, responsibility for compensation is borne in accordance with law.

Article 57: If the social service organization violates other laws or regulations, it will be handled by the relevant national organs in accordance with law. Where the relevant national organs find that a registration certificate should be revoked, the registration certificate will be revoked by the registration management organs.

Article 58: The registration management organs will order disolution where activities are carried out in the name of a social service organization without having registered, and of one's own volition, as well as where activities continue to be carried out in the name of a social service organization after registration has been withdrawn or revoked, and the circumstances are minor; where the circumstances are serious, or dissolution is refused, it will be shut down and illegal assets and unlawful gains will be confiscated; the responsible party may be fined up to 20,000 RMB. Where there are violations of public security, they shall be lawfully given a public security administrative sanction; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Activities carried out on own volition, without obtaining permits or approval documents as required by laws and administrative regulations, shall be investigated by the relevant business approval agencies in conjunction with registration management organs.

Article 59: After registration management organs decide to modify registrations, withdraw registration, or revoke a registration certificate, and the social service organization refuses or is unable to hand over its original registration certificate or seals, the registration management organs are to announce that the registration is voided.

Article 60: Where personnel of registration management organs abuse their authority, use their influence for personnel gain, or neglect their duties, and it constitutes a crime, and a crime is constituted, criminal responsibility is pursued in accordance with law; where a crime is not constituted, [administrative] sanctions are given in accordance with law.

 

Chapter IX: Supplementary Provisions

 

Article 61: The "responsible party of a social service organizations" as used in these Regulations refers to the Chaipreson, vice-chair, or responsible party for an implementation body.

"Parties with related interests" as used in these Regulations refers to organizations or individuals to whom the interests of social service organizations might be transferred by directors, supervisors, and responsible parties that mutually check and influence each other.

Article 62: Social service organizations registered under these Regulations that are charitable organization in nature, shall also comply with the relevant provisions of the People's Republic of China Charity Law。

Article 63: The Ministry of Civil Affairs under the State Council will draft registration measures, name management provisions, and sample standardized charters, annual reports and registration certificates for social service organizations.

Article 64: The Ministry of Civil Affairs under the State Council will follow relevant laws and administrative regulations to seperately provide specific registration and management measures for social service organizations with elements concerning foreign interests.

Where mainland China has agreements with the Hong Kong S.A.R., the Macao S.A.R. and the Taiwan region on the establishment of social service organizations, proceed in accordance with those agreements.

Where China has agreements with foreign countries on the establishment of social service organizations, proceed in accordance with those agreements.

Article 65: These Regulations will take effect on XX/XX/XX; the "Provisional Regulations on the Registration and Management Private Non-enterprise units" published by the State Council on October 25, 1997, are simultaneously abolished.

Private non-profit enterprises that have already registered prior to these Regulations taking effect shall apply to change their registration certificates in accordance with provisions of the Ministry of Civil Affairs under the State Council within 2 years of these Regulations taking effect.

 

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