Regulations on the Administration of Internet Access Service Business Establishments (Chinese and English Text)

The following translation was retrieved from the Nanjing City Web site on February 4, 2007. The Chinese text was retrieved from the Internet Society of China Web site on March 7, 2006.

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Regulations on the Administration of Business Sites of Internet Access Services (05-13 14:58) Order [2002] No.363 of the State Council September 29, 2002 Chapter 1 General Provisions Article 1 The present Regulations have been formulated to strengthen the administration of business sites of Internet access services, to regulate the business actions of the operators, to safeguard the legal rights and interests of the public and the operators, to guarantee the healthy development of the business activities of Internet access services and to promote the building of socialist spiritual civilization. Article 2 Business sites of Internet access services in these Measures shall mean the sites of a profit-making nature, such as network bars, computer lounges etc, which provide the public with Internet access services through computer and other equipment. The sites that are affiliated to schools and libraries and that provide certain objects with Internet access services for obtaining the materials and information shall not be governed by the present Regulations, but shall conform to the relevant laws and regulations. Article 3 The operating entities of business sites of Internet access services (hereinafter referred to as operating entities) shall abide by the relevant laws and regulations, enhance the industrial self-discipline, voluntarily accept the supervision and administration by the relevant governmental departments in accordance with law and provide good services to the Internet users. The Internet users in the business sites of Internet access services shall abide by the relevant laws and regulations, comply with social ethics, and access to the Internet in a civilized and healthy way. Article 4 The departments of cultural administration of the people's governments at or above the county level shall be in charge of the examination and approval of the establishment of operating entities, and shall be in charge of the supervision and administration of the business activities of those operating entities established pursuant to law; the departments of public security shall be in charge of the supervision and administration of the security of information and networks, public security and fire control of the operating entities; the departments of industry and commerce administration shall be in charge of the registration and the management of business licenses of the operating entities, and shall investigate and punish the unlicensed business activities pursuant to law; the departments of telecommunication administration and other relevant departments shall, within their respective scope of duties, supervise and administer the operating entities in accordance with the present Regulations, and the relevant laws and administrative regulations. Article 5 The personnel of the departments of cultural administration, public security, industry and commerce administration and other relevant departments may not engage in any business activities of Internet access services or do so in a disguised form, neither may they participate in any business activities conducted by the operating entities or do so in a disguised form. Article 6 The state encourages the citizens, legal persons and other organizations to supervise the business activities of the operating entities, and will reward those with outstanding contributions. Chapter 2 Establishment Article 7 The state applies a permission system with respect to the operating entities. Without permission, no organization or individual may establish any business site of Internet access services or engage in any business activities of Internet access services. Article 8 To establish an operating entity, one shall employ the organizational form of enterprise and meet the following conditions: (1) Having the name, domicile, organizational structures and articles of association of an enterprise; (2) Having the funds that match its business activities; (3) Having the business sites that match its business activities and in conformity with the conditions for fire control provided for by the state; (4) Having a sound and perfect management system for security of information and networks and the corresponding technical measures for security; (5) Having fixed net addresses, and computers and subsidiary equipment that match its business activities; (6) Having the personnel for operation and management, for security management and the technical professionals that match its business activities and having obtained the practicing qualifications; (7) Other conditions provided for by laws, administrative regulations and the relevant departments under the State Council. The minimum area for business operations, the quantities of computers and subsidiary equipment, and the standard for the area of a single seat in the business sites of Internet access services shall be provided for by the department of cultural administration under the State Council. In the examination and approval of operating entities, apart from the conditions provided for in Paragraphs 1 and 2 of this Article, the total number of operating entities and the requirements for their layout provided for by the department of cultural administration under the State Council and the departments of cultural administration of the people's governments of the provinces, autonomous regions and municipalities directly under the central government shall also be met. Article 9 No business site of Internet access services may be set up within 200 meters around the campus of any secondary or elementary schools or in any residential buildings (yards). Article 10 To establish an operating entity, one shall file an application with the department of cultural administration of the local people's governments at or above the county level, and shall submit the following documents: (1) Notice of the approval-in-advance of the enterprise name and the articles of association; (2) Identification certifications of the legal representatives or the major principals; (3) Credit certifications; (4) Title certifications or the letter of intent on lease of the business sites; (5) Other documents need to be submitted pursuant to law. Article 11 The department of cultural administration shall make the decision within 20 workdays from the day of receipt of the application for establishment; and issue the documents of approval for preparation to those that meet the conditions after examination. After finishing the preparation, an applicant shall, by taking with it the documents of approval for preparation, apply for the examination of security of information and networks and fire control security with the department of public security at the corresponding level. The department of public security shall make the decision within 20 workdays from the day of receipt of the application; and shall issue the documents of approval if the applicant passes the examination of spot inspection. The applicant shall, by taking with it the documents of approval produced by the departments of public security, apply for the final examination with the department of cultural administration, which shall make the decision within 15 workdays from the day of receipt of the application pursuant to Article 8 of the present Regulations; and issue the Permit for Network Cultural Business Operations to those passing the examination of spot inspection. If the department of cultural administration finds out that an application fails to meet the conditions, or the department of public security finds out the application is unqualified, they shall respectively explain the reasons to the applicant by written form. The applicant may not start its business before it, by taking with it the Permit for Network Cultural Business Operations, applies for registration with the department of industry and commerce administration and draws the business license according to law. Article 12 An operating entity may not alter, lease, lend or assign through other forms the Permit for Network Cultural Business Operations. Article 13 If an operating entity is to change the address of a business site or to rebuild or expand a business site, to change the number of computers or other important matters, it shall obtain the consent of the original organ of examination. If an operating entity is to change its name, domicile, legal representative or major principal, registered capital, net address or to terminate the business activities, it shall make the alteration registration or written-off registration with the department of industry and commerce administration pursuant to law, and shall go through the relevant formalities or put that on record with the departments of cultural administration and public security. Chapter 3 Business Operations Article 14 Neither an operating entity nor an Internet user shall make use of a business site of Internet Access Services to produce, download, reproduce, consult, promulgate, spread or use through other forms the information containing any of the following contents: (1) Opposing the basic principles set up by the Constitution; (2) Endangering the unification, sovereignty and territorial integrity of the state; (3) Divulging state secrets, endangering state security or humiliating the national honor or damaging the interests of the state; (4) Inciting national enmity or discrimination, undermining solidarity of nationalities, or infringing upon the customs and habits of the nationalities; (5) Destroying State policies on religions, or spreading cults or superstitions; (6) Disseminating rumors, disturbing public order, or destroying social stability; (7) Disseminating obscenity, gambling, violence, or instigating others to commit crimes; (8) Humiliating or defaming others, or infringing upon the legitimate rights and interests of others; (9) Harming the social ethics or the excellent cultural traditions of the nationalities; (10) Other contents prohibited by laws or administrative regulations. Article 15 Neither an operating entity nor an Internet user shall conduct any of the following acts that endanger the security of information or networks: (1) Internationally producing or spreading computer virus and other destructive programs; (2) Illegally intruding into a computer information system or destroying the functions, data or applications of a computer information system; (3) Other activities prohibited by laws or administrative regulations. Article 16 An operating entity shall link to the Internet through the Internet service provider that has acquired the business permit pursuant to law, and no other method shall be used to link to the Internet. The computers provided by an operating entity to the Internet users to use must be linked to the Internet through local area network, and may not be linked to the Internet directly. Article 17 An operating entity may not operate any non-net games. Article 18 Neither an operating entity nor an Internet user may make use of the net games or other methods to gamble or gamble in a disguised form. Article 19 An operating entity shall use technical measures for its management, establish the system of in-house patrol, and if finding out any act listed in Articles 14, 15, 18 of the present Regulations or other illegal acts by the Internet users, stop such acts immediately and report to the departments of cultural administration and public security. Article 20 An operating entity shall hang the Permit for Network Cultural Business Operations and the business license up at an eye-catching position at the business site. Article 21 An operating entity may not accept any minors to enter its business site. An operating entity shall hang up a sign prohibiting minors from entering at an eye-catching position at the entrance of its business site. Article 22 The business hours of an operating entity shall be limited to 8:00 to 24:00 in a day. Article 23 An operating entity shall verify and register the identification cards or other valid certificates of the Internet users, and shall record the relevant net information. The registration and records reserved shall be kept for at least 60 days, and shall be provided when the departments of culture administration or public security consult them pursuant to law. The registration and records reserved may not be modified or deleted during the period of keeping. Article 24 An operating entity shall perform its duties with respect to the security of information and networks, the public security and the fire control, and shall observe the following provisions: (1) To prohibit lighting by fire or smoking, and hang the signs of no smoking; (2) To prohibit carrying in and keeping inflammable and explosive articles; (3) Not to install fixed and closed doors, windows or fences; (4) To prohibit blocking or locking the doors and windows, the protected channels for evacuation or the safety exits; (5) Not to stop using safety technical measures without permission. Chapter 4 Rules for Punishment Article 25 If any department of cultural administration, public security, industry and commerce administration or other relevant departments and the personnel thereof take advantage of their posts to accept property or other benefits from others and illegally approve any operating entity that fails to meet the legal conditions for establishment, or fail to perform their supervisory duties pursuant to law, or fail to investigate and punish the illegal acts found out, and thus violate the criminal law, the directly responsible personnel in charge and other directly responsible personnel shall be prosecuted for criminal responsibilities according to the provisions of the criminal law on the crimes of accepting bribes, abusing powers, neglecting duties or other crimes; those whose circumstances are not serious enough for criminal punishment shall be given the administrative sanctions of demotion, removal or dismiss. Article 26 If the personnel of the departments of cultural administration, public security, industry and commerce administration or other relevant departments engage in the business activities of Internet access services or do so in a disguised form, participate in the business activities conducted by the operating entities or do so in a disguised form, they shall be given the administrative sanctions of demotion, removal or dismiss. If the departments of cultural administration, public security, industry and commerce administration or other relevant departments conduct any of the acts listed in the preceding paragraph, the directly responsible personnel in charge and other directly responsible personnel shall be given administrative sanctions pursuant to law. Article 27 If anyone, in violation of the present Regulations, establishes a business site of Internet access services without permission, or engages in the business activities of Internet access services without permission, the department of industry and commerce administration shall, or together with the departments of public security, ban the offender, close down the site of illegal business activities, seize the special tools and equipment for illegal business activities; and the criminal responsibilities of those violating the criminal law shall be prosecuted; for those whose circumstances are not serious enough for criminal punishment, the department of industry and commerce administration shall confiscate their illegal gains and the special tools and equipment used in the illegal business activities; if the illegal business income is more than 10,000 yuan, a fine of more than 5 times but less than 10 times of the illegal business income shall be imposed on the offender concurrently; if the illegal business income is less than 10,000 yuan, a fine of more than 10,000 yuan but less than 50,000 yuan shall be imposed on the offender concurrently. Article 28 If an operating entity, in violation of the present Regulations, alters, leases, lends or assigns through other forms the Permit for Network Cultural Business Operations and violates the criminal law, it shall be prosecuted for criminal responsibilities pursuant to the provisions of the criminal law on the crimes of forging, altering or trading official documents, credentials and seals of the state organs; for those whose circumstances are not serious enough for criminal punishment, the department of cultural administration shall revoke their Permit for Network Cultural Business Operations and confiscate the illegal gains; if the illegal business income is more than 5,000 yuan, a fine of more than 2 times but less than 5 times of the illegal business income shall be imposed on the offender concurrently; if the illegal business income is less than 5,000 yuan, a fine of more than 5,000 yuan but less than 10,000 yuan shall be imposed on the offender concurrently. Article 29 If an operating entity, in violation of the present Regulations, makes use of the business site to produce, download, reproduce, consult, promulgate, spread or use through other forms the information containing the contents prohibited as provided for by Article 14 and violates the criminal law, it shall be prosecuted for criminal responsibilities; for those whose circumstances are not serious enough for criminal punishment, the organs of public security shall give a warning and confiscate the illegal gains; if the illegal business income is more than 10,000 yuan, a fine of more than 2 times but less than 5 times of the illegal business income shall be imposed on the offender concurrently; if the illegal business income is less than 10,000 yuan, a fine of more than 10,000 yuan but less than 20,000 yuan shall be imposed on the offender concurrently; if the circumstances are serious, the offender shall be ordered to stop the business for rectification, or even be deprived of its Permit for Network Cultural Business Operations by the department of cultural administration. An Internet user who commits any of the illegal acts listed in the preceding paragraph and violates the criminal law shall be prosecuted for criminal responsibilities pursuant to law; those whose circumstances are not serious enough for criminal punishment may be given punishments by the department of public security pursuant to the regulations on administrative punishments concerning public security. Article 30 If an operating entity, in violation of the present Regulations, commits any of the following acts, the department of cultural administration shall give it a warning and may impose on it a fine of less than 15,000 yuan concurrently; if the circumstances are serious, the offender shall be ordered to stop the business for rectification or even be deprived of its Permit for Network Cultural Business Operations: (1) Running business during the period other than the prescribed business hours; (2) Accepting minors to enter the business site; (3) Operating non-net games; (4) Stopping using technical measures for management without permission; (5) Failing to hang the Permit for Network Cultural Business Operations or the signs prohibiting minors from entering. Article 31 An operating entity that, in violation of the present Regulations, commits any of the following acts shall be given a warning by the department of cultural administration or public security pursuant to their respective authorities, and may be imposed on a fine of less than 15,000 yuan concurrently; if the circumstances are serious, the offender shall be ordered to stop its business for rectification and even be deprived of its Permit for Network Cultural Business Operations by the department of cultural administration: (1) Failing to link the computers provided to the Internet users to use to the Internet through local area network; (2) Failing to establish the system of in-house patrol, or failing to stop and report the illegal acts of Internet users to the departments of cultural administration and public security; (3) Failing to verify and register the valid identification certificates or record the relevant Internet access information of the Internet users; (4) Failing to keep the registrations and records for the prescribed period, or modifying, deleting the registrations or records within the period of keeping; (5) Failing to go through the relevant formalities or put on record with the departments of cultural administration and public security when altering the name, domicile, legal representative or major principal, registered capital, net address or termination of business activities. Article 32 An operating entity that, in violation of the present Regulations, commits any of the following acts shall be given a warning by the department of public security and may be imposed on a fine of less than 15,000 yuan concurrently; if the circumstances are serious, the offender shall be ordered to stop the business for rectification or even be deprived of the Permit for Network Cultural Business Operations by the department of cultural administration: (1) Lighting by fire or failing to stop the smoker smoking, or failing to hang the signs of no smoking; (2) Allowing the inflammable or explosive articles to be carried in or kept; (3) Installing fixed and closed doors, windows or fences at the business sites; (4) Blocking or locking the doors and windows, protected channels for evacuation or safety exits during the business period; (5) Stopping using the security technical measures. Article 33 Those violating the provisions of the state on the security of information and networks, public security administration, fire control administration, industry and commerce administration, and telecommunication administration and thus violating the criminal law shall be prosecuted for the criminal responsibilities pursuant to law; those whose circumstances are not serious enough for criminal punishments shall be punished by the public security organ, the department of industry and commerce administration and the body of telecommunication administration; those whose circumstances are serious shall be deprived of their permits by the organ originally issued the permits. Article 34 If an operating entity has been given the administrative punishment of revocation of the Permit for Network Cultural Business Operations for violation of the present Regulations, it shall make the alteration registration or written-off registration with the department of industry and commerce administration; if it fails to do so within the prescribed time limit, its business license shall be revoked by the department of industry and commerce administration. Article 35 If an operating entity has been deprived of its Permit for Network Cultural Business Operations for violation of the present Regulations, its legal representative or major principal may not be the legal representative or major principal of any operating entity within 5 years from the day of revocation of the Permit for Network Cultural Business Operations. If an operating entity established without permission has been banned pursuant to law, its major principal may not be the legal representative or major principal of any operating entity within 5 years from the day of the banning. Article 36 With respect to the administrative punishments executed pursuant to the present Regulations, the decision on fine and the collection of fine shall be separated pursuant to the relevant laws and administrative regulations; all the fines collected and the illegal gains confiscated must be handed over to the state treasury. Chapter 5 Supplementary Provisions Article 37 The present Regulations shall enter into force on November 15, 2002. And the Measures for the Administration of Business Sites of Internet Access Services promulgated by the Ministry of Information Industry, the Ministry of Public Security, the Ministry of Culture and the State Administration for Industry and Commerce shall be abolished simultaneously. Promulgated by The State Council on 2002-9-29