Non-state Education Promotion Law of China

· Document Number：Order No. 55 of the President of the People's Republic of China

· Area of Law： Education

· Level of Authority： Laws

· Date issued：11-07-2016

· Effective Date：09-01-2017

· Status： Effective

· Issuing Authority： Standing Committee of the National People's Congress

Non-state Education Promotion Law of China
(Adopted at the 31st Session of the Standing Committee of the Ninth National People's Congress on December 28, 2002; amended for the first time in accordance with the Decision on Amending the Cultural Relics Protection Law of the People's Republic of China and Other Eleven Laws as adopted at the Third Session of the Standing Committee of the Twelfth National People's Congress on June 29, 2013; and amended for the second time in accordance with the Decision on Amending the HYPERLINK "javascript:ESLC(206065,0)" Non-state Education Promotion Law of the People's Republic of China as adopted at the 24th Session of the Standing Committee of the Twelfth National People's Congress of the People's Republic of China on November 7, 2016 )
Contents 
Chapter I General Provisions
Chapter II Establishment
Chapter III The Organizations and Activities of a School
Chapter IV Teachers and the Educated
Chapter V School Assets and Financial Management
Chapter VI Management and Supervision
Chapter VII Support and Incentives
Chapter VIII Modification and Termination
Chapter IX Legal Liabilities
Chapter X Supplementary Provisions
Chapter 1 General Provisions 
Article 1 The Present Law is formulated in accordance with the Constitution and the Education Law with a view to implementing the strategy of developing the country by relying on science and education, promoting the sound development of non-state education undertaking and protect the legal rights and interests of private schools and the educated.
Article 2 The present Law shall be applicable to the activities that any public organs or individuals, except for the state organs, run schools or other educational institutions to meet the demand of the society by utilizing non-state financial funds. Those not covered by the present Law shall be in accordance with the Education Law and other laws governing education.
Article 3 Non-state education is a public undertaking. It's a part of the socialist education undertakings.
The country adopts the policies of active encouragement, full support, correct guidance, and administration by law.
The people's governments of all levels shall list the non-state education undertaking into the programs of national economy and social development.
Article 4 A non-state school shall abide by the laws and regulations, follow the state's educational policies, guarantee the education quality and commit itself to the training of talents for the cause of socialist construction.
Non-state schools shall abide by the principle of separating education from religion. No organization or individual may make use of religion to conduct activities that interfere with the educational system of the State.
Article 5 Non-state schools and public schools are of the same legal status. The state protects the non-state schools' autonomy of operation.
The state protects the lawful rights and interests of the founder(s), the president, the faculty and the educated of a non-state school.
Article 6 The state encourages donations to running schools.
The state will award and commend those bodies and individuals who have made outstanding contributions in the development of non-state education undertaking.
Article 7 The administrative department for education under the State Council shall be responsible for the overall planning, comprehensive coordination and macro-management of non-state education work of the whole nation.
The administrative departments of human resources and social security and other relevant departments under the State Council shall, within their respective functions and responsibilities defined by the State Council, be responsible for the different aspects of non-state education.
Article 8 The educational administrative departments of local people's governments at or above the county level shall manage the non-state education within their respective administrative area.
The administrative departments of human resources and social security and other relevant departments of local people's governments at or above the county level shall, within their respective functions and responsibilities, be responsible for the different aspects of non-state education.　
Article 9 The grass roots organizations of the Communist Party of China in a non-state school shall carry out activities according to the provisions of the Constitution of the Communist Party of China and strengthen the building of the Party.
Chapter II Establishment
Article 10 The social bodies applying for the establishment of a non-state school shall be qualified as a legal person.
As for the individuals that run non-state schools shall have political rights and full civil capacity.
A non-state school shall have legal person requirements.
Article 11 The establishment of a non-state school shall meet the needs of the development of local education and shall satisfy the requirements in the Education Law and relevant other laws and regulations.
The standards for the establishment of a non-state school shall be executed by reference to those for the establishment of a state school of the same level and category.
Article 12 Those non-state schools engaging in diploma education, pre-school education, self-taught examination, and other cultural education shall subject to the examination and approval of the administrative departments for education of the people's governments at or above the county level in accordance with their authorities defined by the state. Those non-state schools mainly engaging in training of professional skills and vocational qualifications shall subject to the examination and approval of the administrative departments of human resources and social security in accordance with their authorities defined by the state and shall submit a copy to the educational administrative departments for archival purposes.
Article 13 In applying for the preparations of establishing a non-state school, the applicant shall submit the following materials to the examination and approval organ:
(1)An application. An application shall include such elements as the founder, purposes, scale, level, form, conditions, interior management system, financing and management etc.
(2) The founder's name, domicile or name and address.
(3) Sources of the assets, the amount of the fund and effective evidential documents, which shall clearly include the property ownership.
(4) As for the donated school assets, an agreement of donation shall be submitted and it shall include the name of the donator(s), the amount of the donated assets, uses and management methods and relevant effective certification documents.
Article 14 Within 30 days as of the acceptance of the application, the examination and approval organ shall make a decision of approval or disapproval in written form.
It shall issue a letter of ratification for the establishment preparations to the approved applicants. And it shall give explanations to the disapproved.
The term for the establishment preparations shall not exceed 3 years. For those exceeding 3 years, the founder(s) shall re-file the application.
Article 15 Applying for establishing a non-state school in due form, the founder shall submit the following materials to the examination and approval organ:
(1)the letter of ratification for the establishment preparations;
(2)a report on the proceeding of the establishment preparations;
(3)articles of incorporation of the school, the name of the members in the first school council, the board of directors and other decision-making bodies;
(4)valid certification documents of the school assets;
(5)evidential qualification documents of the president, the teachers and the accountants.
Article 16 Those that meet the requirements for running a school and reach the establishment standards may directly apply for the establishment in due form and shall submit the materials as required in Article 12 and paragraphs (3), (4) and (5) of Article 14 of the present Law.
Article 17 Within 3 months as of the acceptance of an application for establishing a non-state school in due form, the examination and approval organ shall make a decision of approval or disapproval in written form, and which shall be served to the applicant. As for an applicant for establishing a non-state college or university, the examination and approval organ may make a decision of approval or disapproval in written form within 6 months as of the acceptance of the application, and the decision shall be served to the applicant.
Article 18 The examination and approval organ shall issue a license to the non-state schools approved to be established in due form.
The examination and approval organ shall give explanations to those disproved.
Article 19 A founder of a non-state school may independently choose to form a nonprofit or profit non-state school. However, it shall not form any profit non-state school providing compulsory education.
A founder of a non-profit non-state school shall not obtain any benefits from school running and shall use all of the school's school-running balance in school-running.
A founder of a profit non-state school may obtain benefits from school running and use the school's school-running balance under the Company Law, and other relevant laws, and administrative regulations.
After obtaining a license for running a school, a non-state school shall conduct legal person registration, and a registration authority shall handle the formalities for the school according to the law.
Chapter III The Organizations and Activities of a School
Article 20 A non-state school shall establish a board of governors, board of directors or other forms of decision-making bodies and establish corresponding supervision mechanism.
A founder of a non-state school shall, according to the authority and procedures as prescribed in the bylaw of the school, participate in the running and management of the school.
Article 21 The school council or the board of directors shall be organized by the founders, or their representative(s), the president, the representative(s) of the faculty and staff. More than 1/3 of the members of the school council or the board of the directors shall have more than five years of educational and teaching experiences.
The school council or the board of directors shall consist of at least five persons, with one acting as the director-general of the school council or chairman of the board of directors. Their names shall be reported to the examination and approval organ for archival purposes.
Article 22 The school council or the board of directors shall exercise the following functions and powers:
(1) to appoint and to dismiss the president of the school;
(2) to modify the articles of incorporation of the school and to formulate the school rules & regulations;
(3) to make development program and to ratify annual work plan;
(4) to raise funds for the school, to check the budget and the final accounts;
(5) to decide the number of faculty and staff and the wage standards;
(6) to decide the division, merge and termination of the school;
(7) to decide other significant matters.
The functions and powers of other forms of decision-making bodies shall be executed by reference to this Article.
Article 23 The legal representative of a non-state school shall be the director-general of the school council or the chairman of the board of directors or the president.
Article 24 Non-state schools appoint their presidents by referring to the appointment requirements for the presidents of public schools of the same type and level, but the age requirement may be appropriately loosened.
Article 25 The president of a non-state school shall be in charge of teaching and administrative work. He (she) shall exercise the following functions and powers:
(1)to execute the decisions made by the school council, the board of directors and other forms decision-making bodies;
(2)to carry out the development program, to make annual work plans, financial budget and to formulate school rules & regulations;
(3)to employ and dismiss the faculty and staff members, to give them award or punishments;
(4)to launch activities of teaching and scientific research, to ensure the teaching quality;
(5)to take charge of the routine management of the school;
(6)other powers authorized by the school council, the board of directors and other forms of decision-making bodies.
Article 26 In accordance with pertinent regulations, a non-state school may confer its students a diploma, or a certificate of completion, or a training course certificate in light of their respective category, required number of years of schooling and scores.
For the students who accept vocational training, those have been appraised as qualified by the certifying agency ratified by the government may be conferred a national vocational qualifications certificate.
Article 27 A non-state school shall ensure the faculty and staff's participation in the democratic management and supervision through the faculty and staff representative assembly, in which the teachers are the principal, or through other forms.
The teachers and other workers of a non-state school are entitled to establish a labor union in accordance with the Trade Union Law for the purposes of protecting their legitimate rights and interests.
Chapter IV Teachers and the Educated
Article 28 The teachers and the educated have the same legal status as those of a public school.
Article 29 The teachers employed by a non-state school shall be qualified in teaching as required by the state.
Article 30 A non-state school shall provide moral education and professional training for the teachers.
Article 31 A non-state school shall guarantee the faculty's wages, welfare treatments, and other lawful rights and interests, and pay social insurance premiums for them.
The state shall encourage non-state schools to purchase supplementary pension insurance for the faculty under the provisions of the state.
Article 32 In the aspects of professional training, appointment of position, the calculating method of teaching age and working age, award and social activities etc., the faculty and staff of a non-state school and those of a state school shall enjoy identical rights in accordance with the law.
Article 33 A non-state school shall safeguard the legitimate rights and interests of the educated.
A non-state school shall create a student management system and may give award or punishment to the students.
Article 34 In the aspects of entering a higher school, employment, social special treatment and the public appraisal of advanced individual, the teachers in a non-state school and those of a state school of the same level and category shall enjoy identical rights.
Chapter V School Assets and Financial Management
Article 35 A non-state school shall formulate a financial, accounting and assets management system according to law and shall set up accounting books pursuant to relevant regulations of the state.
Article 36 A non-state school shall enjoy all the legal person property rights formed by the invested assets of the founders, state-owned assets, donated properties and the school's accumulated assets.
Article 37 During the period of a non-state school's continuous existence, all its assets shall be managed and used by this school, no institution or individual is allowed to encroach upon.
No institution or individual is allowed to collect any nominal fees in violation of the laws and regulations.
Article 38 The items and standards of the fees collected by a non-state school shall be determined according to the school-running cost, market demand, and other factors, be announced to the public, and be subject to the supervision of the competent departments.
The specific measures for the collection of fees by non-profit non-state schools shall be developed by people's governments of provinces, autonomous regions, and municipalities directly under the Central Government; and the standards for the collection of fees by profit non-state schools shall be subject to market regulation and be independently determined by schools.
The fees collected by non-state schools shall be mainly used for their education and teaching activities, improving the school-running conditions, and ensuring the treatment of the faculties.
Article 39 The use of the assets and the financial management of a non-state school shall be subject to the supervision of the examination and approval organ and other relevant departments.
By the end of every fiscal year, a non-state school shall make financial statement and entrust an accounting firm to audit in accordance with the law and publicize the auditing results.
Chapter VI Management and Supervision
Article 40 The administrative departments for education and other relevant departments shall guide the work of teaching and teacher's training of the non-state schools.
Article 41 The administrative departments of education and relevant departments shall supervise non-state schools according to the law, establish an information announcement and credit file system of non-state schools, and promote the improvement in the school-running quality; and organize or authorize private intermediaries to assess the school-running level and education quality, and announce the assessment results to the public.
Article 42 The enrollment brochures and advertisements of the non-state schools shall be reported to the examination and approval organ for archival purposes.
Article 43 Where a non-state school infringes upon the legitimate rights and interests of the educated, the educated and their relatives are entitled to complain to the administrative departments for education and at other relevant departments. Pertinent departments shall make timely solutions.
Article 44 The state supports and encourages social intermediary organizations to offer services to the non-state schools.
Chapter VII Support and Award
Article 45 The people's governments at (or above) the county level may establish special funds to support the development of non-state schools, to award and commend the collectives and individuals that have made outstanding contributions.
Article 46 All people's governments at or above county level may support non-state school by purchasing services, granting student loans, issuing scholarship and grants, leasing and transferring idle state-owned assets, and taking other measures; and may support non-profit non-state school by granting government subsidies, fund awards, motivation with donations, and taking other support measures.
Article 47 A non-state school may enjoy preferential tax policies as prescribed by the state; and non-profit non-state schools may enjoy the same preferential tax policies as state schools.
Article 48 A non-state school may accept donations from the citizens, legal persons or other bodies in accordance with relevant laws and regulations of the state.
The state shall give tax preference to the citizens, legal persons or other bodies that make donations to non-state schools and commend them.
Article 49 The state encourages the financial institutions to support the development of non-state education by means of credits.
Article 50 Where a people's government entrusts a non-state school to undertake the task of compulsory education, it shall appropriate relevant education funds to this school according to the entrustment agreement.
Article 51 For a newly built or expanded non-profit non-state school, the people's government shall, under the principles as those applicable to state schools, offer preference for use of land by allocation and other ways. “For a newly built or expanded profit non-state school, the people's government shall supply land under the provisions of the state.
Land for education shall not be used for other purposes.
Article 52 The state shall take measures to support and encourage social bodies and individuals to run non-state schools in regions inhabited by the minority ethnic groups and in the outlying and poverty-stricken areas for the development of educational undertakings.
Chapter VIII Modifications and Termination
Article 53 The division or merge of a non-state school shall be reported to the examination and approval organ for approval via the school council or the board of directors after the financial liquidation has been completed.
Within 3 months as of the acceptance of an application for division or merge of a non-state school, the examination and approval organ shall make a written reply to the applicant. For an application of division or merge of a non-state college or university, the examination and approval organ may also make a written reply to the applicant within 6 months as of the acceptance of the application.
Article 54 Where a non-state school is to modify its founders, the proposition shall be put forward by the founders, and after the financial liquidation has been completed, it shall be reported to examination and approval organ upon the consent of the school council or the board of directors.
Article 55 Modifications of a non-state school's name, level or category shall be reported to the examination and approval organ for approval.
The examination and approval organ shall make a written reply to the applicant within 3 months as of the acceptance of the application for changing into another non-state school. For an application of changing into a non-state college or university, the examination and approval organ may also make a written reply within 6 months as of the acceptance of the application.
Article 56 A non-state school shall terminate under any of the following circumstances:
(1)as required by the articles of incorporation of the school and upon the approval of the examination and approval organ;
(2)the license to run a school has been revoked;
(3)It is unable to keep on running the school because of insolvency.
Article 57 When a non-state school terminates, it shall make proper arrangement for the students at school. When a non-state school engaged in compulsory education terminates, the examination and approval organ shall assist the school in arranging the students to continue their school education.
Article 58 When a non-state school terminates, it shall make financial liquidation in accordance with the law.
Where a non-state school requests for the termination itself, the school shall organize the liquidation. Where a non-state school is canceled by the examination and approval organ in accordance with the law, the examination and approval organ shall organize the liquidation. Where a non-state school is unable to keep on running the school because of insolvency, the people's court shall organize the liquidation.
Article 59 The properties of a non-state school shall be cleared according to following order:
(1)repaying the students tuition fees, incidental expenses and other fees;
(2)paying the faculty and staff their wages and social insurance fees;
(3)repaying other debts.
The property of a non-profit non-state school left after repaying the aforesaid debts shall continuously be used for the running of other non-profit schools; and the property of a profit non-state school left after repaying the aforesaid debts shall be disposed of under the relevant provisions of the Company Law.
Article 60 Where a non-state school is terminated, the examination and approval organ shall take back its license, destroy its seals and make deregistration.
Chapter IX Legal Liabilities
Article 61 Where a non-state school violates the Education Law or the Teachers Law, it shall be given punishments in accordance with the Education Law or the Teachers Law.
Article 62 A non-state school that conducts any of the following acts shall be ordered to take corrective action within a prescribed time limit by an administrative department of education, administrative department of human resources and social security, or another relevant department of the people's government at or above the county level and be given a warning; a school that has illegal proceeds shall be subject to confiscation of the illegal proceeds after refunding of the fees collected; where the circumstances are serious, the school shall be ordered to cease students enrollment and have its license for running a school revoked; and where a crime is constituted, the criminal liability shall be investigated for in accordance with the law.
(1) It conducts division or combination of a non-state school without permission.
(2) It changes the name, level, category, or founder of a non-state school without permission.
(3) It issues false enrollment brochures or advertisements for the purpose of cheating property or money.
(4) It illegally confers or forges a diploma, a certificate of completion, a training course certificate, or a vocational qualification certificate.
(5) It causes adverse social impact due to poor management that has affected teaching.
(6) It has obtained a license for running a school by submitting false evidential documents or by taking other fraudulent means of concealing some important facts.
(7) It forges, alters, sells or buys, leases or lends the license for running a school.
(8) It stops running a school maliciously, spirits the capital away, or appropriates the funds of running a school.
Article 63 An administrative department of education, an administrative department of human resources and social security, or another relevant department of the people's government at or above the county level that conducts any of the following acts shall be ordered by a higher authority to make correction; where the circumstances are serious, the directly responsible person in charge and other directly liable persons shall be given disciplinary actions according to the law; where economic losses are caused, it shall assume the liability for compensation according to the law; and where a crime is committed, the criminal liability shall be investigated for in accordance with the law:
(1) It has accepted an application for formation, but fails to make a reply within the prescribed time limit.
(2) It grants approval to an application inconsistent with the requirements of this Law.
(3) It is negligent in administration and has caused serious consequences.
(4) It collects fees in violation of the relevant provisions of the state.
(5) It infringes upon the lawful rights and interests of a non-state school.
(6) It has other acts of abusing power and practicing favoritism.
Article 64 Any individual or entity that forms a non-state school without permission in violation of the relevant provisions of the state shall be ordered by the administrative department of education or administrative department of human resources and social security of the local people's government at or above the county level in its locality, in conjunction with the public security department, civil affairs department, administrative department for industry and commerce, and other relevant departments, to stop running a school and refund the fees collected, and the founder shall be subject to a fine of not less than one time but not more than five times the illegal income; where an act in violation of public security administration is constituted, the public security organ shall impose public security administration punishment according to the law; and where a crime is constituted, the criminal liability shall be investigated for in accordance with the law.
Chapter X Supplementary Provisions
Article 65 The term “non-state schools” in the present Law include other non-state educational institutions established in accordance with the law.
The term “president” in the present Law includes the main administrative person-in-charge of other non-state educational institutions.
Article 66 The measures governing the jointly-run schools within China by overseas institution or individual shall be separately formulated by the State Council.
Article 67 The present Law shall be implemented as of September 1, 2003 and the Provisions for Schools Run by Social Resources promulgated by the State Council on July 31, 1997 shall be abolished at the same time.