Miscellaneous

Regulations on Administration of State Compensation Expenses

(Adopted at the 138th Executive Meeting of the State Council on December 29，2010，and promulgated by Decree No.589 of the State Council of the People's Republic of China on January 17，2011)

Article　1　These Regulations are formulated in accordance with the State Compensation Law of the People's Republic of China (hereinafter referred to as the State Compensation Law)，for the purpose of strengthening administration of State compensation expenses，ensuring the rights of citizens，legal persons and other organizations to obtain State compensation in accordance with law，and promoting the exercise by State organs of their functions and powers in accordance with law.

Article　2　The term“State compensation expenses”in these Regulations means the expenses for compensation that shall be paid to claimants to compensation in accordance with the provisions of the State Compensation Law.

Article　3　State compensation expenses shall be borne by the People's governments at various levels in accordance with the level-to-level fiscal management system.

People's governments at various levels shall，in light of their actual conditions，set aside a certain amount of funds for State compensation expenses and include the funds in the annual fiscal budgets at their respective levels.If the amount of funds paid for State compensation expenses in a year exceeds the amount set aside in their annual fiscal budgets，they shall，in accordance with the provisions，prepare additional funds in a timely manner.

Article　4　State compensation expenses shall be placed under the unified administration of the finance departments of the People's governments at various levels.

The administration of State compensation expenses shall be subject to supervision in accordance with law.

Article　5　Where a claimant to compensation applies for payment of State compensation，he shall submit a written application to the organ liable for compensation，together with the relevant judgment that has come into effect，the decision on reconsideration，the decision on compensation or mediation document，as well as his identity certificate.

Where a claimant really has difficulty in writing an application，he may entrust another person with the writing，or may make the application orally，which shall be transcribed truthfully by the organ liable for compensation，verified by or read out to the claimant，and signed by him by way of confirmation.

Article　6　Where the application materials are truthful，effective and complete，the organ liable for compensation shall be deemed to have accepted the application once it receives such materials.The said organ that accepts the application shall notify the claimant of the same in writing.

Where the application materials are incomplete，the organ liable for compensation shall，on the spot or within three working days，notify the claimant at once of all the materials that need to be supplemented or corrected.Where the claimant submits the materials supplemented or corrected as is required by the organ liable for compensation，the said organ shall be deemed to have accepted the application upon receipt of such materials.Where the said organ fails to notify the claimant of the need to make any supplementation or correction，it shall be deemed to have accepted the application upon receipt of the application materials.

Where the application materials are false or invalid，so the organ liable for compensation decides to reject the application，the said organ shall notify the claimant of the same in writing and explain the reasons therefor.

Article　7　Where a claimant is not satisfied with the decision made by the organ liable for compensation on rejection of his application，he may，within ten days from the date of receipt of the written notification，apply for review to the immediate superior of the said organ.The said superior shall，within five working days from the date of receipt of the application for review，make a decision in accordance with law.

Where the immediate superior deems that the decision on rejection of the application is wrong，it shall，within three working days from the date of making the decision after review，notify the organ liable for compensation that the organ shall accept the application，and notify the claimant of the same.The said organ shall immediately accept the application upon receipt of the notification.

Where the immediate superior maintains the decision on rejection of the application，it shall，within three working days from the date of making the decision after review，notify the claimant in writing and explain the reasons therefor.

Article　8　The organ liable for compensation shall，within seven days from the date of acceptance of a claimant's application for payment of compensation and in light of the limits of power over budget management，submit to the relevant finance department a written application for payment，together with the following materials:

(1)the claimant's application for payment of State compensation;

(2)the judgment that has come into effect，the decision on reconsideration，the decision on compensation or mediation document; and

(3)the claimant's identity certificate.

Article　9　Upon receipt of the application materials sent by the organ liable for compensation，the finance department shall handle the case depending on the specific circumstances，as follows:

(1)where，according to the limits of power over budget management，the State compensation applied for is not to be paid by the department，it shall，within three working days，return the application materials to the organ liable for compensation and notify the said organ in writing that the organ shall apply to the finance department that has the necessary power;

(2)where the application materials meet the requirements，it shall be deemed to have accepted the application upon receipt of the materials，and it shall notify the organ liable for compensation of the same in writing; or

(3)where the application materials do not meet the requirements，it shall，within three working days，notify the organ liable for compensation at once of all the materials that need to be supplemented or corrected.The said organ shall，within five working days，present all the materials supplemented or corrected as required，and the department shall be deemed to have accepted the application upon receipt of such materials.

Article　10　The finance department shall pay State compensation expenses within 15 days from the date of acceptance of an application and in accordance with the relevant provisions on budget and State treasury administration.

Where the finance department discovers that the compensation items or rates are in breach of the provisions of the State Compensation Law，it shall refer the case to the organ that has made the decision on compensation or the superior of the organ for handling and investigating the persons concerned for liability in accordance with law.

Article　11　The finance department shall，within three working days from the date it pays State compensation expenses，notify the organ liable for compensation and the claimant to State compensation.

Article　12　The organ liable for compensation shall，in accordance with the provisions of Articles 16 and 31 of the State Compensation Law，order the staff member involved，entrusted organization or individual to bear，or recover from such staff member，part or the whole of State compensation expenses.

The organ liable for compensation shall notify the relevant finance department in writing of the decision it has made in accordance with the preceding paragraph.

The staff member involved or the entrusted organization or individual shall，in accordance with the provisions on collection of fiscal revenues，turn over the State compensation expenses borne by or recovered from him or it.

Article　13　Where the organ liable for compensation，the finance department or any of its staff members commits one of the following acts，it or he shall be dealt with or given a sanction in accordance with the provisions of the Regulations on Penalties and Sanctions for Fiscal Violations; if a crime is constituted，criminal liability shall be investigated for in accordance with law:

(1)obtaining the funds for State compensation expenses by such means as making fraudulent reports or claims;

(2)awarding State compensation at variance with the scope or rates of compensation prescribed in the State Compensation Law，thus causing losses to government funds;

(3)failing to pay State compensation expenses in accordance with law;

(4)withholding，delaying payment of，misappropriating or taking illegal possession of funds for State compensation expenses;

(5)failing to，in accordance with the provisions，order the staff member involved or the entrusted organization or individual to bear State compensation expenses，or recover State compensation expenses from the staff member involved; or

(6)failing to turn over，in a timely manner，the State compensation expenses that are，as should be，borne or recovered to the finance department in accordance with the provisions.

Article　14　These Regulations shall be effective as of the date of promulgation.The Measures for Administration of State Compensation Expenses promulgated by the State Council on January 25，1995，shall be repealed simultaneously.