China Abolishes Administrative Licensing for Establishing Elder Care Institutions Effective Immediately

VCBeat (WeChat ID: vcbeat) has learned that on December 29, 2018, Presidential Order No. 24 emphasized that the “Decision of the Standing Committee of the National People’s Congress on Amending Seven Laws Including the Labor Law of the People’s Republic of China” was adopted at the Seventh Session of the Standing Committee of the 13th National People’s Congress of the People’s Republic of China on December 29, 2018, and is hereby promulgated, effective as of the date of promulgation.

At its 7th Session, the Standing Committee of the 13th National People’s Congress decided to amend the Law of the People’s Republic of China on the Protection of the Rights and Interests of the Elderly.

VCBeat has compiled the revised content:

(1) Delete Article 43.

(The original content of Article 43 was: The establishment of an elderly care institution shall meet the following conditions: (1) It has its own name, domicile, and articles of association; (2) It has funds commensurate with the content and scale of its services; (3) It has management personnel, professional technical personnel, and service personnel who meet the relevant qualification requirements; (4) It has basic living quarters, facilities and equipment, and activity venues; (5) Other conditions prescribed by laws and regulations.)

(II) Article 44 is renumbered as Article 43 and amended to read: “The establishment ofPublic Welfare Elderly Care Institutions, the corresponding procedures shall be handled in accordance with the lawRegistration。“  

“EstablishmentFor-profit Elderly Care Institutions, shallRegistration with the Market Supervision and Administration Department。

"Elderly Care InstitutionsService activities may commence upon registration., and to the civil affairs departments of people's governments at or above the county levelFiling。”

(The original text of Article 44 read: The establishment of non-profit elderly care institutions shall require an application for administrative licensing from the civil affairs department of the people's government at or above the county level; upon approval, the corresponding registration shall be completed in accordance with the law. The establishment of for-profit elderly care institutions shall require registration with the administration for industry and commerce, followed by an application for administrative licensing from the civil affairs department of the people's government at or above the county level. The civil affairs departments of the people's governments at or above the county level shall be responsible for the guidance, supervision, and management of elderly care institutions, while other relevant departments shall exercise supervision over such institutions in accordance with their respective duties.)

(III)Add a new article as Article 44: “Local people’s governments at all levels shall strengthen their leadership over the management of elderly care institutions within their respective administrative areas,Establishing a Comprehensive Regulatory System for Elderly Care Institutions。
“Civil affairs departments of people’s governments at or above the county level are responsible for providing guidance, oversight, and administration of elderly care institutions; other relevant departments shall exercise supervision over such institutions in accordance with their respective duties.”

(IV)Add a new article as Article 45: “The civil affairs departments of people’s governments at or above the county level shall, in accordance with the law, perform their supervisory and inspection duties and may take the following measures:

(1) Obtain information from elderly care institutions and individuals;

(2) Enter the elderly care institutions suspected of violating laws and regulations to conduct on-site inspections;

(3) Reviewing or copying relevant contracts, invoices, account books, and other related materials;

(4) Where an elderly care institution is found to pose risks that may endanger personal health and the safety of life and property, it shall be ordered to make corrections within a specified time limit; if it fails to do so within such period, it shall be ordered to suspend operations for rectification.

"Civil affairs departments of people's governments at or above the county level shall comply with the provisions of the Administrative Compulsion Law of the People's Republic of China and other relevant laws and administrative regulations when investigating suspected illegal activities by elderly care institutions."

(V) Delete Article 78.

(The original content of Article 78 was:Where an elderly care institution is established without authorization, the civil affairs department of the people’s government at or above the county level shall order rectification; if the institution meets the statutory conditions for elderly care institutions as prescribed by laws and regulations, the relevant procedures shall be completed retroactively in accordance with the law; if it fails to meet the statutory conditions within the specified time limit, it shall be ordered to cease operations and the elderly residents shall be properly resettled; if damages are caused, civil liability shall be borne in accordance with the law.

Source: The National People's Congress of China Website