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REGULATIONS GOVERNING PERFORMANCES FOR BUSINESS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-08-11 Effective Date  1997-10-01  

Regulations Governing Performances for Business



Chapter I  General Provisions
Chapter II  Examination and Approval of Performing Units and Individual
Chapter III  Control over Performing Activities for Business
Chapter IV  Penalty Provisions
Chapter V  Supplementary Provisions

(Adopted at the 61st Executive Meeting of the State Council on August 1,

1997, and promulgated by Decree No.229 of the State Council of the People's
Republic of China on August 11, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of enhancing
control over performances for business, bringing about the flourishing of
the cause of socialist art and literature, satisfying the requirements of
the people in cultural life and promoting the building of socialist spiritual
civilization.

    Article 2  These Regulations shall be observed in engaging in performing
activities for business and in the exercise of supervision and control over
performing activities for business within the territory of the People's
Republic of China.

    Art performing troupes, sites for performances and brokerage agencies for
performances (hereinafter referred to as performing units for business) as
well as individual performers may engage in all types of performing activities
for business only upon acquisition of a licence of performances for business
pursuant to the provisions of these Regulations.

    Article 3  Performances for business must adhere to the orientation of
serving the people and socialism, persist in putting social benefits first,
carry forward fine national culture, and enrich and improve people's
spiritual life.

    Article 4  The State encourages and supports performances of fine
national arts, encourages and supports performances for rural areas,
teenagers and children.

    Article 5  The State prohibits and bans illegal performing activities,
and safeguards the legitimate rights and interests of performing units and
performers.

    Article 6  The administrative department of culture under the State
Council shall be responsible for the work related to the control of
performances for business nationwide. The department of public security
and the department of industry and commerce administration under the State
Council shall exercise control over performing activities according to law
pursuant to the division of their respective duties and responsibilities.

    Administrative departments of culture of local people's governments at
or above the county level shall be responsible for the work related to the
control of performances for business within their respective administrative
areas. The departments of public security and departments of industry and
commerce administration of local people's governments at or above the county
level shall exercise control over performing activities for business within
their respective administrative areas according to law pursuant to the
division of their respective duties and responsibilities.

    Article 7  The State gives rewards to units and individuals having made
outstanding contributions to the cause of performing arts.
Chapter II  Examination and Approval of Performing Units and Individual
Performers

    Article 8  The administrative department of culture under the State
Council shall be responsible for the formulation of the overall plan for
performing units nationwide; administrative departments of culture of people's
governments of the provinces, autonomous regions and municipalities directly
under the Central Government should, pursuant to the overall state plan,
determine the aggregate, distribution and structure of performing units
within their respective administrative areas.

    Article 9  Establishment of an art performing troupe should fulfil the
following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having performers and staff members with performing skills;

    (3) having a fixed address and instruments and equipment commensurate
with the requirement of performances; and

    (4) having funds commensurate with its size.

    In addition to the qualifications prescribed in the preceding paragraph,
examination and approval of establishment of art performing troupes should
also conform to the plan of the aggregate, distribution and structure of
art performing troupes.

    Article 10  For application for the establishment of an art performing
troupe for business, an application should be filed with the administrative
department of culture of the people's government at or above the county level
pursuant to the authority of examination and approval prescribed by the State;
that which has been approved upon examination and verification shall obtain
a "licence for performances for business".

    The unit having obtained the "licence for performances for business"
should apply to the department of industry and commerce administration for
registration on the strength of the licence and may engage in performing
activities for business only upon obtaining a business licence; however,
art performing troupes whose funds are verified and allocated by the
State are exceptions.

    Article 11  Establishment of a site for performances for business should
fulfil the following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having a building suitable for performances, necessary instruments and
equipment and appropriate specialized managers;

    (3) with security facilities and hygiene conditions conforming to
prescribed state standards; and

    (4) having necessary funds.

    Article 12  For application for the establishment of a site for
performances for business, an application should be filed with the
administrative department of culture of the people's government at or above
the county level pursuant to the authority of examination and approval
prescribed by the State; that which has been approved upon examination
and verification shall obtain a "licence for performances for business".

    The unit having obtained the "licence for performances for business"
should apply to the public security organ for security examination and
approval and to the administrative department of health for the acquisition
of a "hygiene licence" on the strength of the licence, and apply to the
department of industry and commerce administration for registration on the
strength of the licence, and may engage in performing activities for
business at the said site for performances only upon acquisition of a
business licence.

    Article 13  Establishment a brokerage agency for performances should
fulfil the following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having competent business departments;

    (3) having employees with corresponding professional levels;

    (4) having a fixed address and business scope; and

    (5) having funds commensurate with its size.

    Article 14  For application for the establishment of a brokerage agency
for performances, an application should be filed with the administrative
department of culture of the people's government at or above the provincial
level pursuant to the authority of examination and approval prescribed by the
State; that which has been approved upon examination and verification shall
obtain a "licence for performances for business".

    The unit having obtained the "licence for performances for business"
should apply to the department of industry and commerce administration for
registration on the strength of the licence, and may go into business only
upon acquisition of a business licence.

    Article 15  Performing units for business should have qualifications of
a legal person and acquire the qualifications of a legal person upon
registration after verification and approval according to law and undertake
civil responsibilities independently with all its corporate property.

    Article 16  The State prohibits the establishment of art performing
troupes, sites for performances and brokerage agencies for performances
operated by Sino-foreign joint ventures, Sino-foreign cooperative ventures
and foreign capital.

    The State permits the reconstruction and new construction of sites for
performances for business with external funds; however, external contributors
shall not take part in operations and management. Specific measures shall be
worked out separately.

    Article 17  Individual performers engaging in performing activities for
business should file an application with the administrative department of
culture of the people's government at or above the county level of the
locality wherein he/she resides pursuant to the authority of examination
and approval prescribed by the State on the strength of personal ID cards
and the certification of the neighborhood office or the village or
township people's government of the place of domicile; he/she who has been
approved upon examination and verification shall obtain a "licence for
performances for business".

    Article 18  Administrative departments of culture of people's governments
at or above the county level should make a decision on the approval or
non-approval within 60 days starting from the date of receipt of an
application for the establishment of a performing unit.

    Article 19  For change in name, residence, leading person-in-charge or
legal representative by an art performing troupe, or a site for performances,
or a brokerage agency for performances for business, or change in business
scope by a brokerage agency for performances, an application should be filed
with the original licensing organ for going through the formalities of change
in registration.

    A performing unit or an individual performer for business not engaging in
performing activities without any justifiable reason in one year shall have
the "licence for performances for business" nullified by the original
licensing organ.
Chapter III  Control over Performing Activities for Business

    Article 20  The State encourages and supports art performing troupes and
individual performers to go into the midst of the common people and exert
their efforts to create and perform fine programs with unity of ideological
content and artistic content which are highly attractive and have strong
appeal and are welcomed by broad masses of people.

    Article 21  The State encourages and supports performing units and
individual performers for business to present free performing activities
to the common people, rural areas and industrial and mining enterprises on a
regular basis.

    Article 22  The State prohibits holding of performing activities
containing the following contents:

    (1) that which endangers state security, honour and social stability;

    (2) that which instigates nationality separation, infringes on minority
nationality customs and habits and disrupts solidarity of nationalities;

    (3) that propagates obscenity, pornography and superstition or plays up
violence;

    (4) that which performs in ways that are terror-striking, cruel or
ruin performers' health;

    (5) that which attracts audience with physical defects or display of
physical deformities; and

    (6) other contents prohibited under provisions of laws and regulations.

    Article 23  An art performing troupe for business may organize on its own
performing activities for business of the unit itself, or may organize
performing activities for business in association with other art performing
troupes.

    Any unit should obtain the consent of the employer unit in employing
personnel of an art performing troupe to take part in performances of the
unit.

    Article 24  Holding of combined performances for business should be
sponsored by a brokerage agency for performances.

    Combined performances for business referred to in the preceding paragraph
mean temporary combination of performances for business in addition to
the independent performances of an art performing troupe or combined
performances.

    Article 25  For sponsorship of combined performances by a brokerage
agency for performances, a submission shall be made to the department which
issued the "licence for performances for business" for examination and
approval 20 days prior to the date of performance; for holding of
performances in provinces, autonomous regions and municipalities directly
under the Central Government outside the locality wherein the brokerage
agency for performances is located, a submission should be concurrently
made to the relevant administrative department of culture of the people's
government at or above the county level of the locality wherein the
performances are to be held for examination and approval.

    Article 26  An individual performer may take part in performing activities
for business sponsored by an art performing troupe for business or by a
brokerage agency for performances, but must not hold performing activities
for business on his/her own.

    Article 27  For holding of national performing activities for business or
holding of performing activities for business entitled with such words as
"China", "Chinese" or "National", a submission should be made to the
administrative department of culture under the State Council for examination
and approval.

    Article 28  Sponsorship of evaluation and award-giving activities for
cultural and artistic performances shall be handled pursuant to the relevant
state provisions.

    Article 29  Invitations to art performing troupes or individuals from the
Hong Kong Special Administrative Region and the regions of Macau and Taiwan
as well as foreign countries for performances for business shall be handled
by brokerage agencies for performances for foreign-related performance
businesses; the sponsor unit should make a submission to the administrative
department of culture under the State Council for examination and approval
30 days prior to the date of performance, and it may sign a formal contract
only upon approval; unless it is provided for otherwise by the State.

    An art performing troupe or an individual performer for business
leaving the country for performances for business should make a submission
to the administrative department of culture under the State Council for
approval pursuant to relevant state provisions.

    Article 30  An art performing troupe or a brokerage agency for
performances for business sponsoring performances for business should sign
a performance contract with the site of performances, units and individuals
participating in combined performances should sign performance contracts
with the brokerage agency for performances. The performance contract shall
carry the following particulars:

    (1) time of performance and number of performances;

    (2) place of performance;

    (3) leading performers and program contents;

    (4) ticketing arrangement of the performance;

    (5) mode of final settlement of the revenue and expenditure of the
performance; and

    (6) other matters that require to be carried.

    Article 31 Parties signing the performance contract should strictly
implement the agreement in the performance contract. A violator of the
agreement in the performance contract should bear responsibility for the
violation according to law.

    Causing losses to the audience due to violation of the agreement in
the performance contract should give compensation according to law.

    Article 32  For holding of performing activities for business by occupying
a park, or a square, or a street, or a guest house, or a hotel, or a stadium
(indoor stadium) or other sites for non-business performances, a submission
should be made to the administrative department of culture, the public
security organ and other departments concerned of local people's government
of the locality for approval.

    Article 33  On-the-job performers of art performing troupes for business
or teachers and students of specialized art colleges and schools participating
in performing activities outside their own units shall be subject to the
consent of the unit he/she is in. Specific measures shall be worked out by the
administrative department of culture under the State Council.

    Article 34  For necessity of change in sponsor unit or holding unit, or
art performing troupe or leading performers, time, place and number of
performance and main contents of program of performance of
a performing activity for business upon approval, a separate report should
be submitted pursuant to the provisions of this Chapter for approval.

    Article 35  Sites for performances for business shall not provide services
in site for art performing troupes or individual performers without a "licence
for performances for business" and performing activities for business without
approval.

    While holding performances for business, the number of audience a site
for performance accommodates shall not exceed the maximum number of persons
allowed. The site for performance should be responsible for the maintenance
of order during performance and ensure the safety of the audience.

    Article 36  Art performing troupes or individual performers for business
shall not suspend performance without any justification or deceive audience
with such falsified means as feigned singing or passing oneself off as others.

    Contents of advertisements for performances for business must be true and
lawful, and must not mislead or deceive audience.

    Contents of advertisements for performances for business should be subject
to the verification and approval of the examination and approval department of
the performing activities.

    Article 37  The ticket price of performances for business and rate for
site rent for the site for performances for business shall observe state
provisions concerning price control.

    Article 38  Income accrued from performances by performers shall be taxed
according to law.

    Article 39  Revenue from performances at charity shows for donation
shall, excluding the necessary expenditure for costs, be paid to the unit
accepting the donation in full, the sponsor unit and performers (staff
members) must not take remuneration out of it. For organization of
performances for donation for social welfare, a report shall be submitted to
the administrative department of culture at the same level for examination and
approval upon verification and approval of the department of civil affairs of
the local people's government at or above the county level of the locality.
Chapter IV  Penalty Provisions

    Article 40  Establishment of a performing unit for business on one's own
without approval, or engagement in performances for business without
acquisition of a licence for performances for business in violation of the
provisions of these Regulations shall be banned by the administrative
department of culture, with the illegal income confiscated and be
concurrently imposed a fine more than three times and less than five times of
the illegal income; where there is no illegal income, a fine less than RMB
5,000 Yuan may concurrently be imposed.

    Article 41  For performances containing contents prohibited under
Article 22 of these Regulations in violation of the provisions of these
Regulations, the administrative department of culture shall direct the
offender to stop the performing activities, confiscate the illegal income;
where the circumstances are serious, the original licensing organ
shall direct the offender to suspend operations for consolidation or revoke
the "licence for performances for business"; violations of provisions of
public security administration shall be subject to penalties for public
security violations by the public security organ; where the offence
constitutes a crime, criminal responsibility shall be investigated
according to law.

    Article 42  For sponsorship of combined performances on one's own or
invitation on one's own of art performing troupes or individuals from
the Hong Kong Special Administrative Region and the regions of Macau and
Taiwan as well as foreign countries for performances for business in
violation of the provisions of these Regulations, the administrative
department of culture shall direct the offender to stop performing activities,
confiscate the illegal income of the units or individuals participating in
the performances; confiscate the illegal income of the organizer(s) and
concurrently impose a fine more than five times and less then ten times of
the illegal income; where there is no illegal income, a fine more than RMB
5,000 Yuan and less than RMB 20,000 Yuan shall be imposed; where the
circumstances are serious, the original licensing organ shall direct
the offender to suspend operations for consolidation or revoke the "licence
for performances for business".

    Article 43  For suspension of performances without any justification or
practice of fraud and engagement in deceptive performances by such means as
feigned singing or passing oneself off as somebody else in violation of the
provisions of these Regulations, the administrative department of culture
shall issue a criticism of the performer himself/herself in a circular,
confiscate the illegal income and concurrently impose a fine more than
twice and less than five times of the illegal income; where there is no
illegal income, a fine less than RMB 5,000 Yuan may be imposed; where the
circumstances are serious, the offender shall be banned from taking
part in performing activities for business for one year.

    Article 44  For reception on one's own by a site for performances for
business of art performing troupes for business, performances organized by
a brokerage agency without a "licence for performances for business", or of
performing activities for business without approval in violation of the
provisions of these Regulations, the administrative department of culture
shall direct it to stop the performing activities, confiscate the illegal
income, and concurrently impose a fine more than three times and less than
five times of the illegal income; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the "licence for performances for business".

    Article 45  For a site for performances for business causing disorder
during performances or a safety accident in violation of the provisions of
these Regulations, the administrative department of culture shall direct it
to amend and give it a warning; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the "licence for performances for business"; for
violations of the provisions of public security administration, the
public security organ shall impose penalties for public security violations
according to law; where the offence constitutes a crime, criminal
responsibility shall be investigated according to law.

    Article 46  For embezzlement of revenue from charity performances in
violation of the provisions of these Regulation, the administrative
department of culture shall, in conjunction with the department of civil
affairs, direct the holding unit to hand over the illegal income to the
unit accepting the donation and impose a fine more than three times and less
than five times of the illegal income; where the circumstances are serious,
the original licensing organ shall direct it to suspend operations for
consolidation or revoke the "licence for performances for business";
where the offence constitutes a crime, criminal responsibility shall be
investigated according to law.

    Article 47  For an art performing troupe or a brokerage agency for
performances for business employing on its own members without gaining advance
consent of their employer units or individuals without obtaining a "licence
for performances for business" in violation of the provisions of these
Regulations to participate in performing activities for business, the
administrative department of culture shall administer a warning, and
concurrently impose a fine of more than RMB 500 Yuan and less than RMB
5,000 Yuan; for a unit subject to more than three cumulative administrative
penalties, the original licensing organ shall revoke its "licence for
performances for business".

    Article 48  For an individual participating in performances for business
on one's own without the consent of the employer unit in violation of the
provisions of these Regulations, the administrative department of culture
shall direct the person in question to stop performing activities, confiscate
the illegal income, impose a fine of more than 100% and less than 300% of the
illegal income and impose administrative sanctions according to law.

    Article 49  For an individual performer holding on one's own performances
for business in violation of the provisions of these Regulations, the
administrative department of culture shall direct the person in question to
stop performing activities, confiscate the illegal income, and concurrently
impose a fine of more than RMB 5,000 Yuan and less than RMB 10,000 Yuan;
where the circumstances are serious, the original licensing organ shall
revoke the "licence for performances for business".

    Article 50  For leasing or transfer of a "licence for performances for
business" in violation of the provisions of these Regulations, the
administrative department of culture shall direct the violator to stop
the illegal activities, confiscate the illegal income, and impose a
fine of more than three times and less than five times of the illegal income;
where there is no illegal income, a fine of less than RMB 5,000 Yuan may
concurrently be imposed; where the circumstances are serious, the
original licensing organ shall revoke the "licence for performances for
business".

    Article 51  Performances infringing on the copyright of others shall be
dealt with pursuant to the provisions of the Copyright Law of the People's
Republic of China.

    Violations of state laws and regulations governing industry and commerce,
taxation and public health administration shall be penalized by the
departments of administration concerned according to law.

    Article 52  Administrative departments of culture and their functionaries
infringing on the legitimate rights and interests of art performing troupes
or individual performers, sites for performances and brokerage agencies for
performances or abusing their power, neglecting their duties, indulging in
self-seeking misconduct, taking part in or covering up illegal performing
activities in violation of the provisions of laws and regulations constituting
a criminal offence shall be investigated of the criminal responsibilities
according to law; where the offence does not constitute a crime,
administrative sanctions shall be imposed according to law.
Chapter V  Supplementary Provisions

    Article 53  Performing units for business the establishment of which
has been approved and individual performers already under registration
prior to the implementation of these Regulations should renew the formalities
pursuant to the relevant provisions of these Regulations within three months
starting from the date of implementation of these Regulations.

    Article 54  All provinces, autonomous regions and municipalities
directly under the Central Government may formulate specific control
measures with respect to the performing activities of roving folk artists
by referring to the provisions of these Regulations.

    Article 55  These Regulations shall come into force as of October 1, 1997.



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