Implementing Regulations for the Law of the People's Republic of China on Non-State Education Promotion

Implementing Regulations for the Law of the People's Republic of China on Non-State Education Promotion
Implementing Regulations for the Law of the People's Republic of China on Non-State Education Promotion

Order of the State Council [2004] No.399

March 5, 2004

The Implementation Regulations for the Law of the People's Republic of China on the Promotion of Privately-run Schools, which were adopted at the 4lst executive meeting of the State Council on February 25, 2004, are hereby promulgated and shall come into force on April 1, 2004.

Premier: Wen Jiabao

Attachment: Implementing Regulations for the Law of the People's Republic of China on the Promotion of Non-State Education Promotion

Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the Non-State Education Promotion Law of the People's Republic of China (hereinafter referred to as the "Law on the Promotion of Privately-run Schools").

Article 2 Social organizations or individuals other than government agencies may sponsor privately-run schools at various levels and of various types with non-governmental funds, provided that such privately-run schools are not for military, police, political or other special purposes.
The term "governmental funds" as used in the Law on the Promotion of Privately-run Schools and these Regulations shall mean funds allocated from the state treasury or financial funds obtained in accordance with the law which shall be turned over to the state treasury or a special financial account.

Article 3 People's governments at or above the county level may reward and commend any social organization or individual who has made outstanding achievements in donating funds to sponsor privately-run schools or has made other outstanding contributions to the development of the privately-run school undertakings.

Chapter II Sponsors of Privately-run Schools

Article 4 Social organizations or individuals other than government agencies may separately or jointly sponsor privately-run schools. Where a privately-run school is jointly sponsored, a joint sponsorship agreement shall be entered into whereby the purpose of the school, its educational objective, capital contributions of the parties concerned, capital contribution methods, the rights and obligations of the parties concerned and other matters are to be specified.

Article 5 Any sponsor of a privately-run school may make the capital contribution in cash, in kind, in land use rights, with intellectual property rights or other property.
The support of the State, tuition charged from students, borrowings made by a privately-run school, and donated property accepted shall not be part of the capital contribution made by a sponsor of the school.

Article 6 Any government-run school which participates in sponsoring a privately-run school shall not use governmental funds or affect the normal educational and teaching activities of the government-run school while doing so and shall be subject to approval issued by the competent administrative authority for education or the competent administrative authority for labor and social security in accordance with requirements of the State. Any privately-run school which a government-run school participates in sponsoring shall be an independent legal person, have a campus and basic educational and teaching facilities separated from the government-run school, apply an independent financial and accounting system, enroll students separately, and issue academic credentials independently.
Any government-run school which participates in sponsoring a privately-run school shall be lawfully entitled to the rights and interests of a sponsor and shall, in accordance with the law, perform the obligations of administering state-owned assets in order to prevent the loss of state-owned assets.
Any government-run school to which the compulsory education policy applies shall not be changed to a privately-run school.

Article 7 Any sponsor who participates in sponsoring a privately-run school with state-owned assets shall, in accordance with the provisions of the State concerning the supervision and administration of state-owned assets, engage an intermediary agency with the evaluation qualification to conduct the relevant evaluations in accordance with the law, shall determine the capital contributions in a reasonable manner in light of the evaluation results, and shall report the matter to the authority with the functions and duties of supervising and administering such state-owned assets for the record.

Article 8 Any sponsor of a privately-run school shall make the capital contributions in full and on time. During the existence of a privately-run school, any sponsor of the school shall not withdraw the capital contributions or appropriate management funds for the school.
Any sponsor of a privately-run school shall not raise funds from students or their parents or the general public to sponsor the school .

Article 9 Any sponsor of a privately-run school shall, in accordance with the provisions of in the Law on the Promotion of Privately-run Schools and these Regulations, work out the school's bylaws and, nominate and elect the members of the initial executive council or the board of directors or a decision-making body of other forms.
Any sponsor of a privately-run school that participates in the executive council, the board of directors or a decision-making body of other forms shall participate in school running and management activities in accordance with powers and procedures specified in the school bylaws.

Article 10 Institutions that conduct tests recognized by the State such as educational tests, professional qualification tests and technical proficiency tests shall not sponsor any privately-run school associated with the tests conducted by the institutions.

Chapter III Establishment of Privately-run Schools

Article 11 The authority to examine and approve the establishment of privately-run schools shall be granted in accordance with the provisions of relevant laws and regulations.

Article 12 Any sponsor of a privately-run school who completes the preparation work for the establishment of the school within three years of the date on which the approval for the preparation work is obtained may submit an application for the formal establishment of the school.

Article 13 Where an application for the formal establishment of a privately-run school providing formal pragrams is filed, the relevant examination and approval authority shall, after accepting the application, organize the evaluation thereof by an expert committee and the expert committee shall put forward advisory opinions.

Article 14 The following matters shall be specified in the bylaws of a privately-run school:
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