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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II THE INVESTORS OF NON-STATE SCHOOLS CHAPTER III ESTABLISHMENT OF NON-STATE SCHOOLS CHAPTER IV ORGANIZATION AND ACTIVITIES OF NON-STATE SCHOOL CHAPTER V SCHOOL ASSETS AND FINANCIAL MANAGEMENT CHAPTER VI SUPPORT AND AWARD CHAPTER VII LEGAL LIABILITIES CHAPTER VIII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The present Regulations are formulated in accordance with the Non-state Education Promotion Law of the People's Republic of China (hereinafter referred to the NEPL). Article 2. Any social organizations or individuals, except the state organs, may run non-state schools of different types and levels with non-state financial funds, but may not run any special natured non-state schools engaging in military, police or political education. The term "the state financial funds" mentioned in the NEPL and the present Regulations refers to the funds allocated from the state treasury, or the lawfully obtained finance funds that shall be turned in to the state treasury or the special finance accounts. Article 3. Any social organizations or individuals who have made significant donations to the establishment of non-state schools or have made other outstanding contributions to the development of non-state undertaking shall be given awards by the people's government above the county level. CHAPTER II THE INVESTORS OF NON-STATE SCHOOLS Article 4. Any social organizations or individuals, except state organs, may establish non-state schools solely or jointly. Where a non-state school is run jointly, an agreement on the joint establishment of the non-state school shall be concluded, which shall specify the purposes of running the school, the goal of education and each party's amount and way of capital contributions, and rights and obligations. Article 5. The founder(s) of a non-state school may make contributions in cash, kinds, land use rights, intellectual property rights or rights of other property. The subsidies given by the state, the tuitions charged from the students, the money borrowed and the donated properties accepted by the non-state school shall not fall within the scope of capital contributions of the non-state school. Article 6. Where a state school participates in running a non-state school, it shall not use any state financial funds, shall not affect its own normal educational and teaching activities, and shall be subject to the approval of the administrative department of education or the administrative department of labor and social security in accordance with the conditions prescribed by the state. A non-state school with a state school as a participant shall be qualified as an independent legal person. It shall have a campus and basic educational and teaching facilities that are separate from the state school, shall adopt independent financial accounting system, shall enroll students separately and shall issue diploma certificates independently. A state school that participates in running a non-state school shall be entitled to enjoy the rights and interests of a founder in accordance with the law, shall perform the obligation of managing state-owned assets in pursuance of the law and shall prevent the loss of state-owned assets. Any state school engaging in compulsory education shall not be transformed into a non-state school. Article 7. Where a founder participates in running a non-state school by using state-owned assets, it shall, according to the relevant regulations of the state on the supervision of state-owned assets, hire a qualified intermediary institution to make assessment, shall determine the amount of capital contributions according to the assessment result, and shall report it to the institution responsible for the supervision of state-owned assets for archival purposes. Article 8. The founder(s) of a non-state school shall timely fulfill the obligation of making full contributions. During the existence of a non-state school, the founder (s) of a non-state school shall not withdraw capital contributions, shall not misappropriate the educational funds. When establishing a non-state school, the founder(s) shall not collect money from students or parents of students, shall not raise funds through public financing. Article 9. The investors of a non-state school shall, in accordance with the NEPL and the present Regulations, formulate articles of incorporation, elect the members of the first school council, board of directors or other decision-making bodies. Where a founder of a non-state school participates in the school council, board of directors or other decision-making bodies, it shall participate in the activities of establishing and managing the school according to the power and procedures prescribed in articles of incorporation thereof. Article 10. An institution undertaking the examination of education, professional qualification or technical grades acknowledged by the state shall not establish any non-state school related to the examination undertaken by it. CHAPTER III ESTABLISHMENT OF NON-STATE SCHOOLS Article 11. The power to examine and approve the establishment of non-state schools shall be implemented in accordance with the relevant laws and regulations. Article 12. The founder of a non-state school, which completes the preparations for the establishment of a non-state school within 3 years from the day when it obtains the letter of ratification for the establishment preparations, may apply for the formal establishment of the non-state school. Article 13. After the examination and approval organ accepts an application for the formal establishment of a non-state school engaging in diploma education, it shall organize an expert commission to conduct appraisal. The expert commission shall give consultation opinions. Article 14. The articles of incorporation of a non-state school shall include the following main items: (1) The name and address of the school; (2) The purposes, scale, level and form of the school; (3) The amount, sources and natures of the school assets; (4) The method for establishing the school council, board of directors or other decision-making bodies, the personnel structure, the term of office and the rules of procedure; (5) The legal representative of school; (6) Whether the contributors demand reasonable return; (7) Reasons for the school's self-termination; and (8) Procedure for modifying the articles of incorporation. Article 15. A non-state school shall use only one name. The name of a non-state school shall be in line with the laws and administrative regulations, and shall not impair public interests. Article 16. If an applicant who applies for the formal establishment of a non-state school is under any of the following circumstances, it shall be disapproved by the examination and approval organ, and shall be given written explanations: (1) The social organization or individual applying for the establishment of a non-state school doesn't meet the requirements in the laws and administrative regulations, or the state school engaging in compulsory education is transformed into a non-state school; (2) Collecting money from students or parents of students or raising funds through public financing for the establishment of a non-state school; (3) Having no corresponding conditions for the establishment of a non-state school, failing to meet the corresponding standards; (4) The articles of incorporation fails to meet the requirements in the present Regulation, and no modification is made after the applicant has been informed of the circumstance; or (5) The personnel structure of the school council, board of directors or other decision-making bodies doesn't meet the statutory requirements, or the schoolmaster, teachers or accounting personnel do not have legal qualifications, the applicant fails to get right after having been informed of the circumstance. Article 17. The examination and approval organ shall issue a license to a non-state school approved to be established in due form, and shall publicize it and its articles of incorporation. The format of the license for non-state schools shall be determined by the administrative department of education of the State Council. The administrative department of education and the administrative department of labor and social security of the State Council shall separately organize the printing and making of the licenses according to their respective functions. Article 18. When applying for the registration in accordance with the laws and administrative regulations, a non-state school shall submit the following materials to the registration organ: (1) The registration application; (2) The license; (3) The identity certification of the to-be-appointed legal representative; and (4) The articles of incorporation of school. The registration organ shall complete the registration process within 5 working days from the day when it receives the application materials as required in the preceding paragraph. CHAPTER IV ORGANIZATION AND ACTIVITIES OF NON-STATE SCHOOL Article 19. The person-in-charge of the school council, board of directors or any other decision-making body shall have good behavior, political rights and complete civil capacity. Any functionaries of the state organ may not be members of the school council, board of directors or any other decision-making body. Article 20. The school council, board of directors or any other decision-making institution shall hold at least one meeting every year. Upon proposal of one third of the members, the school council, the board of directors or other decision-making body may hold a temporary meeting. The school council, board of directors or any other decision-making body shall discuss the following important items, which may be adopted unless they are agreed upon by two thirds of the members: (1) To appoint or dismiss the schoolmaster; (2) To modify the articles of incorporation; (3) To make development plan; (4) To examine the budget and final accounts; (5) To decide the division, mergence and termination of the school; (6) Other important matters stipulated in the articles of incorporation of the school. The articles of incorporation of non-state school shall be submitted to the examination and approval organ for archival purposes, and shall be publicized by the examination and approval organ. Article 21. The schoolmaster of a non-state school shall independently exercise the powers in teaching and administrative work. The schoolmaster shall raise a plan on the establishment of internal institutions of the non-state school and shall submit it to the school council, the board of directors or any other decision-making body for approval. Article 22. A non-state school engaging in higher education or secondary occupational technical diploma education may, according to its purposes and goal, set up specialties, offer curricula and select textbooks by itself. However, the non-state school shall report its specialties, curricula and textbooks to the examination and approval organ for archival purposes. A non-state school engaging in senior secondary education may carry out educational and teaching activities independently. However, the educational and teaching activities of this non-state school shall meet the standards for the curricula formulated by the administrative department of the State Council. The textbooks selected by it shall be subject to the examination and approval in accordance with the law. A non-state school engaging in preschool education may carry out educational and teaching activities independently. But it shall not violate any related laws and administrative regulations. A non-state school mainly engaging in occupational qualification training or occupational technical training may carry out training activities according to the occupational standards of the state. Article 23. The teacher employed by a non-state school shall have the qualification of a teacher and meet the requirements for taking the position of a teacher in pursuance of the Teachers Law of the People's Republic of China and the relevant administrative regulations. A non-state school shall have a certain number of full-time teachers. In a non-state school engaging in diploma education, the number of full-time teachers shall not be less than one third of the total number of teachers. Article 24. A non-state school may hire teachers and employees independently. When hiring a teacher or employee, the non-state school shall conclude an employment contract with him (her), clarifying the rights and obligations of both parties. When hiring other personnel, the non-state school shall conclude labor contracts with them. When hiring foreign employees, the non-state school shall comply with the relevant regulations of the state. Article 25. A non-state school shall establish teachers training system, shall offer good conditions for the employed teachers to accept corresponding moral and political training and professional training. Article 26. A non-state school shall offer corresponding curricula, carry out educational and teaching activities and guarantee the educational and teaching quality according to the commitments in the enrollment brochures and advertisements. The non-state school shall offer schoolhouses ant teaching facilities and equipment that meet the standards. Article 27. A non-state school shall have the enrollment right equivalent to that of a state school of the same level and category. It may determine the enrollment scope, standards and ways by itself. However, it shall abide by the relevant regulations of the state when enrolling students to accept higher diploma education. The administrative department of education and the administrative department of labor and social security of the people's governments of at (above) the county level shall provide equal treatments to the non-state schools of other places to enroll local students, shall not practice regional closure, and shall not collect illegal fees. Private schools shall recruit overseas students in accordance with the relevant State regulations. Article 28. A non-state school shall formulate rules for the management of students' records and teaching activities, and submit them to the examination and approval organ for archival purposes. Article 29. When applying for the relevant scientific research projects or programs set up by the state, the non-state school and its teachers, other employees and educatees shall be entitled to enjoy the rights equal to those of a state school and its teachers, other employees and educatees. The educatees of a non-state school shall be entitled to enjoy the rights equal to those of the educatees of state school in the aspects of going to a school of a higher grade, employment, social preferential treatments, being chosen as advanced persons through public appraisal, and medical insurance. Article 30. Where a non-state school engaging in higher diploma education meets the requirements for granting degrees, it may, after being subject to examination and approval in accordance with relevant laws and administrative regulations, acquire corresponding qualifications for granting degrees. Article 31. When the administrative department of education, the administrative department of labor and social security and other relevant departments organize related activities of granting prizes or awards for excellence through appraisal, art and sport activities, bid invitations for programs and projects, they shall offer equal chances to the non-state schools, and their teachers, other employees and the educatees. Article 32. The administrative department of education and the administrative department of labor and social security shall strengthen their routine supervision over the non-state schools, shall regularly organize and authorize intermediary organizations to evaluate the management and educational quality of the non-state schools, and shall encourage and support the non-state schools to carry out teaching research activities, and shall push the non-state schools to increase the educational and teaching quality. When the administrative department of education and the administrative department of labor and social security conduct supervision over the non-state schools, they shall note down the supervisory information and the handling results, which shall be affixed with the signatures of the supervisors and then be kept in archives. The general public shall be entitled to consult the supervisory records of the administrative department of education and the administrative department of labor and social security. Article 33. Where a non-state school is terminated, the examination and approval organ shall withdraw the license of the non-state school, notify the registration organ and make an announcement. CHAPTER V SCHOOL ASSETS AND FINANCIAL MANAGEMENT Article 34. A non-state school shall, in pursuance of the Accounting Law of the People's Republic of China and the unified accounting system of the state, conduct accounting calculations, formulate financial accounting statements. Article 35. The items and standards for the tuitions collected by a non-state school from the educatees who accept diploma education shall be reported to the administrative department of price for approval and publicity. The items and standards for the tuitions collected from other educatees shall be reported to the administrative department of price for archival purposes and for publicity. The specific measures shall be formulated by the administrative department of price of the State Council jointly with the administrative department of education and the administrative department of labor and social security. Article 36. The supervision and management of the state-owned assets among a non-state school's assets shall be implemented in accordance with the relevant regulations of the state. The uses and management of the donated properties accepted by a non-state school shall be implemented according to the relevant provisions in the Welfare Donations Law of the People's Republic of China. Article 37. By the end of each fiscal year, a non-state school established by using donations or set up by investors without demanding reasonable returns shall withhold at least 25% of the yearly increase of net assets as the development fund for the construction and maintenance of the school and the purchase and replacement of teaching equipment. A non-state school established by investors who demand reasonable returns shall withhold at least 25 % of the yearly net yields as the development fund. CHAPTER VI SUPPORT AND AWARD Article 38. A non-state school established by using donations or by investors without demanding reasonable returns shall be entitled to enjoy the preferential policies on tax or other aspects equal to those enjoyed by a state school. A non-state school established by investors who demand reasonable returns shall be entitled to enjoy preferential tax policies, which shall be formulated by the administrative department of finance and the administrative department of taxation of the State Council jointly with the relevant administrative departments of the State Council. A non-state school shall go through the tax registration formalities in accordance with the law, and shall undergo the formalities for the cancellation of tax registration in pursuance of the law when it is terminated. Article 39. A non-state school may set up a foundation to accept donated properties, and shall be subject to supervisions in accordance with the relevant provisions of the laws and administrative regulations. In accordance with the law, a non-state school may name the schoolhouses or other educational, teaching and living facilities after the donators. With regard to the donators who have made special contributions to the development of non-state schools, their names may be used as the names of the non-state schools: for the non-state schools engaging in higher education for diplomas, they shall be subject to the approval of the administrative department of education of the State Council according to the requirements prescribed by the state; other non-state schools shall be subject to the approval of the administrative department of education or the administrative department of labor and social security of the people's governments of provinces, autonomous regions and municipalities. Article 40. Where the non-state schools in western regions, remote and poverty-stricken areas and regions inhabited by the minority ethnic groups apply for loans for their own development, they shall be entitled to enjoy the relevant credit preferential policies of the state. Article 41. The people's government at (above) the county level may, according to the specific circumstances within its administrative area, establish a special fund for the development of non-state education. The special fund for the development of non-state education shall be subject to the administration of the department of finance, and may be used after the administrative department of education or the department of labor and social security has reported for approval to the department of finance of the same level. Article 42. The people's government of the county level may, according to the needs of carrying out compulsory education, sign an agreement with a non-state school, authorizing it to undertake part of the task of compulsory education. Where the people's government of the county level authorizes a non-state school to undertake the task of compulsory education, it shall appropriate corresponding educational fund to this non-state school according to the number of the students accepting compulsory education and the average educational fund for students in state schools carrying out compulsory education. The fees collected by the authorized non-state school from the students studying in this school under the agreement shall not exceed those collected by a local state school of the same level and category. Article 43. The administrative department of education shall establish and perfect the relevant regulations jointly with the pertinent administrative departments for the purpose of ensuring the reasonable flow of teachers between state schools and non-state schools. Article 44. Where the investors demand reasonable returns according to the articles of incorporation of a non-state school, they may acquire reasonable returns by the end of each fiscal year from the surplus of the school according to a certain proportion. The term "the surplus of the school" mentioned in the NEPL and the present Regulations refers to the yearly net yields after deducting the costs, social donations and assets given by the state and after withholding the development fund and other necessary expenses in accordance with the present Regulations. Article 45. In light of the following factors, a non-state school shall determine the proportion for the investors' returns from the surplus of the school: (1) The items and standards of the collected fees; (2) The proportion of the expenses on educational and teaching activities and perfection of school conditions in the collected fees; and (3) The school's management level and educational quality. Comparing with other non-state schools of the same level and category, if a non-state school collects rather high fees, but it uses a low proportion of the collected fees in educational and teaching activities and the perfection of school conditions and gets low management level and educational quality, the proportion for the investors' returns from the school surplus shall not be higher than other non-state schools of the same level and category. Article 46. A non-state school shall publicize the materials regarding the management level and educational quality as well as its financial status. The school council, board of directors or any other decision-making body of a non-state school shall, according to Articles 44 and 45 of the present Regulations, make a decision on the proportion for the investors' returns. The non-state school shall, within 15 days from the day when it makes such a decision, submit the decision and the materials related to its management level and educational quality and financial status to the examination and approval organ for archival purposes. Article 47. Where a non-state school is under any of the following circumstances, its investors shall not get any returns: (1) Issuing false enrollment brochures and swindling money or property; (2) Increasing items of fees or standard for fees without permission and the circumstance is serious; (3) Illegally granting or counterfeiting diploma certificates or vocational qualification certificates; (4) Having obtained a school license by means of cheating, or counterfeiting, altering, buying, selling, leasing or lending a school license; (5) Failing to conduct accounting computation, formulate financial accounting statements according to the Accounting Law of the People's Republic of China and unified accounting system of the state, and the finance and assets management are in a mess; (6) Having been punished by the tax organ due to violating the laws and administrative regulations of the state on the administration of tax collection; (7) There is any serious hidden safety risk in the schoolhouses or other educational and teaching facilities and equipment, but it fails to take any measures in time and cause any serious casualty accident; or (8) The educational and teaching quality is rather low, which produces bad consequences in the society. An investor that withdraws the registered capital away or misappropriates the school fund shall not obtain any returns. Article 48. Besides the support provided for in the NEPL and the present Regulations, the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government may, in light of their actual circumstances, formulate support and award measures for the purpose of promoting the development of non-state education. CHAPTER VII LEGAL LIABILITIES Article 49. Under any of the following circumstances, the examination and approval organ shall confiscate the returns obtained by the investors, and shall order the non-state school to stop the enrollment of students. If the circumstance is serious, it shall withdraw the school license; if any crime is constituted, the liable persons shall be subject to criminal liabilities: (1) It isn't stipulated in the articles of incorporation of a non-state school that the investors demand reasonable returns, but the investors obtain returns without permission; (2) Obtaining returns that shall not be obtained in violation of Article 47 of the present Regulations; (3) The investors withhold returns from other funds of the non-state school rather than the surplus of the school; (4) Failing to calculate the surplus of the school or determine the proportion for the returns in accordance with the present Regulations; or (5) The proportion for the investors' returns from the surplus of the school is too high, which produces bad consequences in the society. Article 50. Where a non-state school fails to submit the decision on the proportion for the investors' returns and the publicized materials relating to its management level and educational quality and financial status to the examination and approval organ for archival purposes, or submits any false materials to the examination and approval organ for archival purposes, the non-state school shall be ordered to get right and be given a warning by the examination and approval organ. If it has any illegal gains, they shall be confiscated. If the circumstance is serious, it shall be ordered to stop the enrollment of students and its school license shall be withdrawn. Article 51. If the management of a non-state school is in a mess and its educational and teaching activities are seriously affected, and the non-state school is under any of the following circumstances, it shall be punished in accordance with Article 62 of the NEPL: (1) The school council, the board of directors or any other decision-making body fails to exercise its functions in accordance with the law; (2) The teaching conditions are obviously unable to satisfy the teaching requirements, the educational and teaching quality is very low, but no measure is taken in time; (3) There is any serious safety risk in the schoolhouses or other educational and teaching facilities or equipment, but no measure is taken in time; (4) Failing to conduct accounting computation, formulate financial accounting statements in pursuance of the Accounting Law of the People's Republic of China and the unified accounting system of the state, and the management of finance and assets is in disorder; (5) Infringing upon the legitimate rights and interests of the educatees, which produces extremely bad consequences; or (6) Hiring or dismissing teachers in violation of the regulations of the state. CHAPTER VIII SUPPLEMENTARY PROVISIONS Article 52. The non-state schools lawfully established prior to the implementation of the present Regulations may exist continuously, but shall change their school license via the original examination and approval organs within 1 year from the day when the present Regulations are implemented. Article 53. The support and award measures provided for in the present Regulations shall be applicable to Sino-foreign cooperative educational institutions. Article 54. The present Regulations shall be implemented as of April 1, 2004. |
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