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Measures of Chengdu Municipal People's Government for the Administration of Franchising
Article 1 (Purpose Basis)

In order to make full use of the market competition mechanism to allocate public resources, create an open, fair and just market environment, and protect public interests, public safety and the legitimate rights and interests of franchisees, these measures are formulated in accordance with the People's Republic of China (PRC) Administrative Licensing Law and other laws and regulations, combined with the actual situation in Chengdu. Article 2 (Definitions of Terms)

The term "government franchising" as mentioned in these Measures refers to the development and utilization of limited natural resources, the allocation of public resources and the market access right of specific industries directly related to public interests obtained through specific procedures.

The term "transfer of franchise rights" as mentioned in these Measures refers to the behavior of the government granting franchise rights to operators within a certain period of time.

The term "transfer of franchise rights" as mentioned in these Measures refers to the act of the operator transferring the franchise rights to other operators or investors during the franchise period. Article 3 (Scope of Application)

These Measures shall apply to the transfer, operation and management of franchise rights within the administrative area of this Municipality.

The following projects that are directly related to the public interest and involve the allocation of public resources and the development and utilization of limited natural resources can be franchised:

(a) urban water supply, gas supply and heating;

(2) Sewage treatment and garbage disposal;

(3) Urban rail transit and other public transportation;

(four) other projects stipulated by laws, regulations and rules. Article 4 (Division of Powers)

Within the administrative area of this Municipality, the franchise rights shall be managed by the people's governments at the municipal, district (city) and county levels as a whole. The main body of franchising is the municipal or district (city) county people's government.

The Municipal People's Government shall uniformly manage the right to operate bus lines, natural gas pipe networks and pipeline gas within the administrative area of this Municipality, and the franchise rights in five urban areas (including Chengdu High-tech Zone) such as Jinjiang, Qingyang, Jinniu, Wuhou and Chenghua and other areas designated by the Municipal People's Government.

The people's governments of other districts (cities) and counties outside the five urban areas shall, in accordance with these Measures, determine a government department to be responsible for the management of franchise rights within its jurisdiction. Article 5 (Decision-making Management Body)

The Municipal People's Government shall set up a franchise management committee (hereinafter referred to as the Municipal Franchise Committee) to be responsible for the decision-making and management of franchise transfer, and on behalf of the Municipal People's Government, examine and approve the franchise transfer scheme (hereinafter referred to as the transfer scheme) and franchise transfer contract (hereinafter referred to as the franchise contract) reported by the competent department of industry.

The office of the Municipal Franchise Committee (hereinafter referred to as the Municipal Franchise Office) is located in the municipal development and reform department, and its main responsibilities are:

(a) to formulate the city's franchise policy, the preparation of the city's franchise annual transfer plan;

(two) to organize a hearing on the franchise transfer project involving the overall economic and social development of the city and major livelihood issues;

(three) organize relevant departments and experts to review the transfer plan submitted by the competent department of industry;

(four) to guide and coordinate the implementation of the city's franchise transfer, supervise the transfer procedures according to law, and check the signing and performance of the franchise contract;

(five) to handle the daily work of the Municipal Franchise Committee and submit the annual franchise supervision and inspection report to the Municipal People's government. Article 6 (Executive Body)

City construction, transportation, energy, water, environmental protection, urban management, tourism, civil affairs, public security, forestry and landscape industry departments (hereinafter referred to as industry departments) are responsible for the specific management of the franchise within the scope of their functions and powers, and their main responsibilities are as follows:

(a) the preparation of the annual transfer plan of franchise projects within the scope of authorization;

(two) according to the procedures within the scope of authorization to organize the implementation of franchising, and save the franchise project files;

(three) the establishment of franchise project evaluation system, the development of public goods and services quality evaluation standards;

(four) to supervise the franchisee to fulfill the statutory obligations and obligations agreed in the franchise contract;

(five) to supervise the implementation of the franchisee's business plan, the quality of public products and services, and the safety in production;

(six) to establish a public participation mechanism, accept public complaints against franchisees, and investigate and deal with illegal acts in a timely manner according to law;

(seven) to formulate an emergency plan for temporary takeover, and to temporarily take over the franchise projects in an emergency that endangers or may endanger public interests and public safety;

(eight) to assist the relevant departments to calculate the cost of the franchisee and put forward opinions on price adjustment;

(nine) keep the business secrets and technical secrets known in the franchise management.

The relevant administrative departments of state-owned assets, finance, price, industry and commerce, auditing and supervision shall, in accordance with their respective duties, supervise and manage franchise activities. Article 7 (Form and Term of Operation)

Franchising can take the following forms:

(1) Grant the investment, construction and management right of the project to a legal person or other organization within a certain period of time, and hand it over to the people's government that granted the franchise right free of charge after the expiration;

(two) to grant the right to operate the completed project to a legal person or other organization within a certain period of time, and hand it over to the people's government that granted it the franchise after the expiration of the period;

(3) Entrusting citizens, legal persons or other organizations to provide public products and services within a certain period of time.

The operating period of items (1) and (2) of the preceding paragraph shall not exceed 30 years at the longest; The term of operation in Item (3) shall not exceed 8 years at the longest; Where laws, regulations and rules provide otherwise, such provisions shall prevail.