The increase rate of the treasury funds appropriated by the State Council and the local people's governments at all levels for the implementation of the compulsory education policy shall be higher than that of the current income of treasury so as to ensure the gradual increase of the average compulsory funds based on the number of attending students as well as the gradual increase of the salaries of the school staff and the average public-use operating fund for students.

Article 43 The basic standards on the average public-use operating funds for students of schools shall be formulated by the public finance department of the State Council jointly with the administrative department of education, and shall be adjusted according to the status of economic and social development at the opportune time. The formulation and adjustment of the basic standards on the average public-use operating funds for students of schools shall satisfy the basic needs for education and teaching.

The people's governments of the provinces, autonomous regions, municipalities directly under the Central Government shall, in light of the actual circumstances of their respective administrative areas, formulate standards on the average public-use operating funds for school students, which shall not be lower than the national standards.

The standards on the average public-use operating funds for students of special schools (classes) shall be higher than the standards on the average public-use operating funds for students of the ordinary schools.

Article 44 The compulsory education operating funds shall be jointly paid by the State Council and the local people's governments at all levels according to their respective functions. The people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall be responsible for formulating plans and implementing the plans. The operating funds essential for rural compulsory education shall, according to the items and proportions as specified by the State Council, be paid by the people's governments at all levels.

For school-age children and adolescents whose families have financial difficulties, the people's governments at all levels shall provide them with gratuitous textbooks, and give living cost subsidies to boarding students.

The concrete measures for guaranteeing the operating funds for compulsory education shall be formulated by the State Council.

Article 45 The people's governments at all levels shall separately list the compulsory education operating funds in their financial budgets.

When the people's governments at the county level prepare budgets, they shall not only be more favorable to the schools in rural areas and weak schools, but also arrange the compulsory education operating funds in a balanced manner.

Article 46 The State Council and the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall regulate the public finance transfer payments system, expand the general transfer payment scale, regulate the transfer of special payments for compulsory education, and support; and direct the local people's governments at all levels to make more payments for compulsory education. The local people's governments at all levels shall ensure that the transfer payments paid to them by the people's governments at the upper level for compulsory education is used for compulsory education under relevant provisions.

Article 47 The State Council and the local people's governments at the county level or above shall, in light of the actual needs, establish special funds to support the rural areas and ethnic minority areas to carry out compulsory education.

Article 48 The state encourages social organizations and individuals to make donations for compulsory education, and to set up compulsory education funds in pursuance of the provisions of the State on the administration of foundations.

Article 49 The compulsory education operating funds shall be used for compulsory education in strict compliance with the budget. No organization or individual may illegally occupy or misappropriate any compulsory education operating fund, or illegally charge a school any fee or apportion any expense to a school.

Article 50 The people's governments at the county level or above shall establish sound systems for audit and supervision, and statistical announcement.

Chapter VII Legal Liabilities

Article 51 Where any of the relevant departments of the State Council or any of the local people's governments at all levels fails to perform the function of guaranteeing the operating funds for compulsory education by violating Chapter VI of this Law, the State Council or the superior local people's governments shall order it to make corrections within a time limit. If the circumstances are serious, an administrative sanction shall be given to the directly liable person-in-charge and other directly liable persons.

Article 52 Where any of the local people's governments at the county level or above is under any of the following circumstances, the people's government at the upper level shall order it to make corrections. If the circumstances are serious, an administrative sanction shall be given to the directly liable person-in-charge and other directly liable persons:

(1) It fails to formulate and adjust plans on the setup of schools under the relevant provisions of the State;

(2) The school construction isn't in line with school-running standards, requirements for selection of site and construction standards as prescribed by the State;

(3) It does not inspect the school buildings regularly, nor does it repair or rebuild them timely; or

(4) It fails to arrange the compulsory education operating funds in a balanced manner in accordance with this Law.

Article 53 Where any of the people's governments at the county level or above or its administrative department of education is under any of the following circumstances, the people's government at the upper level or its administrative department of education shall order it to make corrections within a time limit, and criticize it by circulating a notice. If the circumstances are serious, an administrative sanction shall be given to the directly liable person-in-charge and other directly liable persons:

(1) Dividing the schools into key schools or non-key schools; or

(2) Changing the nature of any public school or doing so in disguise.

Where any of the administrative departments of education of the people's governments at the county level, or the people's governments of townships and towns fails to take measures to organize school-age children or adolescents to go to school or fails to prevent them from discontinuing their schooling, it shall be subject to legal liabilities according to the provisions of the preceding paragraph.

Article 54 Under any of the following circumstances, the people's government at an upper level or its administrative department of education, public finance department, price administrative department and audit organ shall, according to their respective functions, order it to make corrections within a time limit. If the circumstances are serious, the directly liable person-in-charge and other directly liable persons shall be given a sanction:

(1) Illegally occupying or misappropriating any compulsory education operating fund; or

(2) Illegally charging a school any fee or apportion any expense to a school.

Article 55 Where any school or teacher violates the Education Law or Teachers Law in the compulsory education work, the school or the teacher shall be punished in accordance with the Education Law or Teachers Law.

Article 56 Where a school charges any fee in violation of the provisions of the State, the administrative department of education of the people's governments at the county level shall order it to refund the charges and a sanction given to the directly liable person-in-charge and other directly liable persons-in-charge in accordance with the law.

Where a school publicizes commodities or services to students for benefits, it shall be criticized by the administrative department of education of the people's government at the county level by circulating a notice. The illegal gains, if any, shall be confiscated. The directly liable persons-in-charge and other directly liable persons shall be given a sanction.

Where any of the functionaries of the State organs or textbook examiners participates in the compilation of any textbook or does so in disguise, the peoples' government at the county level or above or its administrative department of education shall, in light of its respective functions and authorizations, order him/her to make corrections within a time limit and give him/her an administrative sanction, and shall confiscate the illegal gains, if any.

Article 57 Where a school is under any of the following circumstances, it shall be ordered to make corrections within a time limit by the administrative department of education of the people's government at the county level. If the circumstances are serious, the directly liable persons-in-charge and other directly liable persons in charge shall be given a sanction in accordance with the law:

(1) Failing to accept school-age children and adolescents with disabilities, who are able to receive ordinary education, to study along with the normal classes;

(2) Establishing key classes alongside with non-key classes;

(3) Expelling any students in violation of this Law; and

(4) Choosing and using any textbook that fails to be examined and approved.

Article 58 Where the parents or any other statutory guardian of school-age children or adolescents fail to send them to receive compulsory education according to the provisions of this Law without justifiable reasons, they shall be criticized by the people's government at the township level or the administrative department of education of the people's government at the county level of the locality and be ordered thereby to make a correction.

Article 59 Under any of the following circumstances, a penalty shall be meted out according to the relevant laws or administrative regulations:

(1) Forcing any school-age children or adolescent by menace or coax to leave school or quit his school education;

(2) Illegally employing any school-age children or adolescent who should be receiving compulsory education; or

(3) Publishing any textbook which fails to be examined and approved according to law.

Article 60 Anyone who violates any of the provisions of this Law in such a way as to constitute a crime shall be subject to criminal liability according to the law.

Chapter VIII Supplementary Provisions

Article 61 The measures for implementing the policy of exempting sundry expenses from school-age children or adolescents shall be formulated by the State Council.

Article 62 Where any private school operated by any social organization or individual implements compulsory education, it shall be governed by the relevant provisions of the Law on Promoting Non-State Education. Where it is not provided for in the Law on Promoting Non-State Education, the present Law shall apply.

Article 63 This Law shall go into force as of September 1, 2006.

Source: www.moe.gov.cn