Article 1    With a view to strengthening the administration of State compensation funds, protecting the legitimate rights of citizens, legal persons and other organizations to State compensation, and promoting legal administration by State organs, 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").

Article 2    For the purposes of these Regulations, "State compensation funds" shall refer to funds that shall be given as compensation to claimants in accordance with the State Compensation Law.

Article 3    State compensation funds shall be borne by people's governments at all levels according to the financial management system on a hierarchical basis.
People's governments at all levels shall, according to actual situations, set aside a certain amount of State compensation funds to be included in the annual fiscal budget at the corresponding level. Supplementary funds shall be promptly arranged as required if the amount of the State compensation funds payable in the then-current year exceeds the corresponding annual fiscal budget at the same level.

Article 4    State compensation funds shall be under the unified administration by finance departments of the relevant people's governments.
The administration of State compensation funds shall be subject to supervision in accordance with the law.

Article 5    A claimant applying for State compensation shall submit a written application to the organ liable for compensation along with the following documents: proof of identity of the claimant, as well as the judgment that has entered into force, reconsideration decision, compensation decision, or written mediation agreement related to the application.
Where a claimant indeed has difficulty writing the application, the claimant may entrust another person with the writing or make an oral application. In the latter case, the organ liable for compensation shall faithfully record the application, and give the record to the claimant for verification or read out the same to the claimant. The claimant shall sign on the record as confirmation.

Article 6    Where the application materials are authentic, valid and complete, the organ liable for compensation shall be deemed to have accepted the application upon the receipt of said application materials. The organ liable for compensation shall notify in writing the claimant of the acceptance of the application.
Where the application materials are incomplete, the organ liable for compensation shall, on the spot or within three working days, send a one-off notification to the claimant of regarding the materials to be supplemented or corrected. If the claimant submits corrected or supplementary materials as required, it shall be deemed that the organ liable for compensation has accepted the application upon the receipt of the corrected or supplemented materials. Where the organ liable for compensation does not notify the claimant of the materials to be corrected or supplemented, it shall be deemed that the organ has accepted the application upon the receipt of the application materials.
Where the organ liable for compensation decides not to accept the application because the application materials contain false information or are invalid, it shall notify the claimant of the decision in writing and explain the reasons therefor.

Article 7    Where a claimant raises an objection to the decision of the organ liable for compensation not accepting the application, the claimant may, within ten days from the date of the receipt of the written notice, file an application with the relevant organ at the next higher level for review. The organ at the next higher level shall make a decision in accordance with the law within five working days upon the receipt of the application for review.
Where the organ at the next higher level deems that the decision not accepting the application is wrong, it shall, within three working days from the date of the review decision, notify the organ liable for compensation to accept the application, and inform the claimant of the same. The organ liable for compensation shall immediately accept the application upon the receipt of said notification.
Where the organ at the next higher level upholds the decision not accepting the application, it shall notify the claimant of the decision in writing and explain the reasons therefor within three working days from the date of the review decision.

Article 8    An organ liable for compensation shall, within seven days from the acceptance of the compensation application filed by a claimant, file a written application with the relevant finance department for fund payment according to the budget management authority limit, and submit the following materials:
(1) The application for State compensation filed by the claimant;
(2) The judgment that has entered into force, reconsideration decision, compensation decision, or mediation agreement; and
(3) The proof of identity of the claimant.

Article 9    Upon the receipt of the application materials submitted by an organ liable for compensation, the relevant finance department shall handle the application in light of the following circumstances:
(1) Where it is not within the authority of the finance department to pay for the State compensation funds stated in the application, the finance department shall return the application materials within three working days, and notify the organ liable for compensation in writing to apply with the finance department with the corresponding budget management authority;
(2) Where the application materials meet the requirements, the finance department shall be deemed to have accepted the application upon the receipt thereof, and notify the organ liable for compensation of the acceptance in writing;
(3) Where the application materials fail to meet the requirements, the finance department shall, within three working days, send a one-off notification to the organ liable for compensation regarding all the materials to be corrected or supplemented. The organ liable for compensation shall, within five working days, submit all the corrected or supplementary materials as required, and the finance department shall be deemed to have accepted the application upon the receipt of such materials.

Article 10    A finance department shall, within 15 days upon the acceptance of an application, pay for the State compensation according to the requirements of budgetary, fiscal and treasury management.
Where the finance department discovers that the compensation items and/or calculation standards are in violation of the State Compensation Law, it shall report the case to the organ making the compensation decision or its superior organ so that such organ shall deal with the case and/or subject relevant personnel to liability in accordance with the law.

Article 11    A finance department shall notify the organ liable for compensation and the claimant of the payment for State compensation within three working days from the date on which the payment is made.

Article 12    An organ liable for compensation shall, according to Articles 16 and 31 of the State Compensation Law, order the relevant staff members, the entrusted organizations or individuals to bear or recover part or all of the State compensation funds.
After making a decision according to provisions specified in the preceding paragraph, the organ liable for compensation shall notify the relevant finance department in writing of the decision.
The relevant staff members, the entrusted organizations or individuals shall, according to the provisions on fiscal revenue collection, hand over the State compensation funds borne by or recovered from them.

Article 13    Organs liable for compensation, finance departments and staff members thereof that involve any of the following acts shall be dealt with or subject to disciplinary action in accordance with the Regulations on Penalties and Sanctions for Fiscal Violations; where the act constitutes a criminal offense, the concerned party shall be subject to criminal liability in accordance with the law:
(1) Obtaining State compensation funds through fraudulent means, such as making false application or claim, among other things;
(2) Paying State compensation in violation of the scope and calculation standards prescribed in the State Compensation Law, resulting in the losses of fiscal funds;
(3) Failing to pay State compensation funds in accordance with the law;
(4) Retaining, withholding, misappropriating or encroaching on State compensation funds;
(5) Failing to order relevant staff members, entrusted organizations or individuals to bear the State compensation funds, or to recover the same from the staff members as required; or
(6) Failing to promptly hand over, as required, the State compensation funds borne by or recovered from relevant staff members, entrusted organizations or individuals to the State finance.

Article 14    These Regulations shall come into effect on the date of promulgation. The Measures for the Administration of State Compensation Funds promulgated by the State Council on January 25, 1995 shall be simultaneously repealed.