Act on General Rules for Incorporated Administrative Agencies


Published: 2014

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Act on General Rules for Incorporated Administrative Agencies (Tentative translation)

Table of Contents

Chapter I General Provisions

Section 1 General Rules (Articles 1 to 10)

Section 2 Incorporated Administrative Agency System Evaluation Committee (Articles 12 to 12-8)

Section 3 Incorporation (Articles 13 to 17)

Chapter II Officers and Employees (Articles 18 to 26)

Chapter III Administration of Operations

Section 1 General Rules (Articles 27 to 28-4)

Section 2 Agency Managed under the Medium-term Objectives (Articles 29 to 35-3)

Section 3 National Research and Development Agency (Articles 35-4 to 35-8)

Section 4 Agency Engaged in Administrative Execution (Articles 35-9 to 35-12)

Chapter IV Finance and Accounting (Articles 36 to 50)

Chapter V Personnel Management

Section 1 Agency Managed under the Medium-term Objectives and National Research and Development Agency (Articles 50-2 to 50-11)

Section 2 Agency Engaged in Administrative Execution (Articles 51 to 63)

Chapter VI Miscellaneous Provisions (Articles 64 to 68)

Chapter VII Penal Provisions (Articles 69 to 72)

Supplementary Provisions

Chapter I General Provisions

Section 1 General Rules

(Purpose)

Article 1 (1) The purpose of this Act is to provide for common matters that serve as the basis for the system of Incorporated Administrative Agencies, including the basis for the administration of these agencies, and to achieve the establishment of the Incorporated Administrative Agency system and the secure implementation of the affairs and businesses conducted by Incorporated Administrative Agencies from a public viewpoint, interdependently with laws that provide for matters concerning the name, purpose, and scope of operations, etc. of the respective Incorporated Administrative Agencies (hereinafter referred to as the "Individual Laws"), thereby contributing to the stability of the lives of the citizenry and to the sound development of society and the economy.

(2) The organization, administration and management of the respective Incorporated Administrative Agencies are governed by the provisions of this Act, in addition to the provisions of the relevant Individual Laws.

(Definitions)

Article 2 (1) The term "Incorporated Administrative Agency" as used in this Act means a juridical person, incorporated pursuant to the provisions of this Act and the relevant Individual Law as an Agency Managed under the Medium-term Objectives, a National Research and Development Agency or an Agency Engaged in Administrative Execution, for the purpose of effectively and efficiently conducting, from among the affairs and businesses that need to be implemented securely from a public viewpoint, such as the stability of the lives of the citizenry, society and the economy, and that do not need to be implemented directly by the State itself, those affairs that may not necessarily be implemented properly if entrusted to private entities or that need to be conducted monopolistically by a single entity (hereinafter referred to as "Affairs of Public Nature, etc." in this Article).

(2) The term "Agency Managed under the Medium-term Objectives" as used in this Act means a juridical person provided for by the relevant Individual Law as an Incorporated Administrative Agency whose purpose is to conduct, from among the Affairs of Public Nature, etc., those affairs that are required to be executed by the agency from a medium-term perspective in light of the characteristics of such affairs while displaying its independency and autonomy to a certain extent (excluding those to be conducted by a National Research and Development Agency), in accordance with a plan for achieving the objectives concerning the administration of its operations that are set by the State for a medium term, and thereby promoting the public interest through the provision of diverse and quality services that precisely meet the demands of citizens.

(3) The term "National Research and Development Agency" as used in this Act means a juridical person provided for by the relevant Individual Law as an Incorporated Administrative Agency whose purpose is to conduct, as its major operations, from among the Affairs of Public Nature, etc., those affairs that are related to experiment, research or development in science and technology (hereinafter referred to as "Research and Development") and that are required to be executed by the agency from a medium-term perspective in light of the characteristics of such affairs while displaying its independency and autonomy to a certain extent, in accordance with a plan for achieving the objectives concerning the administration of its operations that are set by the State for a medium and long term, and thereby ensuring the maximum results of Research and Development in order to contribute to the sound development of the national economy and other public interests through the improvement in the level of science and technology in Japan.

(4) The term "Agency Engaged in Administrative Execution" as used in this Act means a juridical person provided for by the relevant Individual Law as an Incorporated Administrative Agency whose purpose is to conduct, from among the Affairs of Public Nature, etc., those affairs that are required to be securely executed under the instructions of the State or other considerable involvement of the State given closely in relation to the administrative affairs of the State, in accordance with a plan for achieving the objectives concerning the administration of its operations that are set by the State for each business year, and thereby accurately and securely executing such Affairs of Public Nature, etc.

(Public Nature, Transparency and Independency of Operations)

Article 3 (1) Given that the affairs and businesses that Incorporated Administrative Agencies conduct need to be securely implemented from a public viewpoint, such as ensuring the stability of the lives of the citizenry, society and the economy, these agencies must endeavor to administer their operations properly and efficiently.

(2) Incorporated Administrative Agencies must endeavor to make the status of their organization and administration clear to citizens through such means as publicizing the contents of their operations pursuant to the provisions of this Act.

(3) When implementing this Act and the Individual Laws, sufficient consideration must be given to the characteristics of the affairs and businesses of Incorporated Administrative Agencies as well as the independency of Incorporated Administrative Agencies in the administration of their operations, so that the affairs and businesses of the Incorporated Administrative Agencies are conducted appropriately in light of the social and economic situations at home and abroad.

(Name)

Article 4 (1) The name of an Incorporated Administrative Agency is provided by the relevant Individual Law.

(2) A National Research and Development Agency is to use the term "国立研究開発法人" (referring to "National Research and Development Agency") as part of its name.

(Purpose)

Article 5 The purpose of an Incorporated Administrative Agency is provided by the relevant Individual Law within the scope of the respective purposes referred to in Article 2, paragraph (2), paragraph (3) or paragraph (4).

(Legal Personality)

Article 6 An Incorporated Administrative Agency is a juridical person.

(Office)

Article 7 (1) An Incorporated Administrative Agency establishes its principal office at the location provided by the relevant Individual Law.

(2) An Incorporated Administrative Agency may establish any secondary offices at necessary locations.

(Financial Basis)

Article 8 (1) An Incorporated Administrative Agency must have the stated capital and any other financial basis that are necessary for securely implementing its operations.

(2) The government may make capital contributions to an Incorporated Administrative Agency pursuant to the provisions of the relevant Individual Law if it finds this to be necessary in order to have the Incorporated Administrative Agency securely implement the operations thereof.

(3) If any of the important property of an Incorporated Administrative Agency which is specified by Ordinance of the Competent Ministry (meaning an Ordinance of the Cabinet Office or the relevant ministry that has jurisdiction over the Incorporated Administrative Agency concerned; provided, however, that with regard to an Incorporated Administrative Agency under the jurisdiction of the Nuclear Regulation Authority, an Ordinance of the Nuclear Regulation Authority is such Ordinance of the Competent Ministry; the same applies hereinafter) is found to be no longer necessary for securely implementing its operations for the future due to a review of its operations, changes in the social and economic situations or any other grounds, the Incorporated Administrative Agency must dispose of said property (hereinafter referred to as "Unnecessary Property") pursuant to the provisions of Article 46-2 or Article 46-3.

(Registration)

Article 9 (1) An Incorporated Administrative Agency must complete its registration pursuant to the provisions of Cabinet Order.

(2) The matters that must be registered pursuant to the provisions of the preceding paragraph cannot be asserted against a third party until after they are registered.

(Restriction on Use of Name)

Article 10 No person other than an Incorporated Administrative Agency or National Research and Development Agency may use the term "独立行政法人" (referring to "Incorporated Administrative Agency") or "国立研究開発法人" (referring to "National Research and Development Agency" as part of its name.

(Application Mutatis Mutandis of the Act on General Incorporated Associations and General Incorporated Foundations)

Article 11 The provisions of Article 4 and 78 of the Act on General Incorporated Associations and General Incorporated Foundations (Act No. 48 of 2006) apply mutatis mutandis to Incorporated Administrative Agencies.

Section 2 Incorporated Administrative Agency System Evaluation Committee

(Establishment)

Article 12 An Incorporated Administrative Agency System Evaluation Committee (hereinafter referred to as the "Committee") is set up within the Ministry of Internal Affairs and Communications.

(Affairs under Jurisdiction)

Article 12-2 (1) The Committee takes charge of the following affairs:

(i) to state its opinions to the Minister of Internal Affairs and Communications pursuant to the provisions of Article 28-2, paragraph (2);

(ii) to state its opinions to the competent minister pursuant to the provisions of Article 29, paragraph (3), Article 32, paragraph (5), Article 35, paragraph (3), Article 35-4, paragraph (3), Article 35-6, paragraph (8), Article 35-7, paragraph (4) or Article 35-11, paragraph (7);

(iii) to make recommendations to the competent minister pursuant to the provisions of Article 35, paragraph (4) or Article 35-7, paragraph (5);

(iv) to offer its opinions to the Prime Minister pursuant to the provisions Article 35-2 (including the cases where applied mutatis mutandis pursuant to Article 35-8 after deemed replacement);

(v) to investigate and deliberate on important matters concerning the system of evaluation of the administration of operations of Incorporated Administrative Agencies (referred to as the "Evaluation" in the following item), and to state its opinions to the Minister of Internal Affairs and Communications if it finds this to be necessary;

(vi) to investigate and deliberate on important matters concerning the implementation of the Evaluation, and to state its opinions to the competent minister when it finds that the Evaluation has been implemented in an extremely improper manner; and

(vii) to process other matters that are placed under its authority by law.

(2) When the Committee states its opinions pursuant to the provisions referred to in item (i) or item (ii) of the preceding paragraph or pursuant to the provisions of item (v) or item (vi) of said paragraph, it must publish the contents of such opinions.

(Organization)

Article 12-3 (1) The Committee is composed of not more than ten committee members.

(2) Temporary members may be appointed for the Committee if this is necessary in order to have them investigate and deliberate on any special matters.

(3) Expert members may be appointed for the Committee if this is necessary in order to have them investigate any matters requiring expertise.

(Appointment of Committee Members)

Article 12-4 (1) Committee members and temporary members are appointed by the Prime Minister from among persons with the relevant knowledge and experience.

(2) Expert members are appointed by the Prime Minister from among persons with the knowledge and experience on the matters requiring the relevant expertise.

(Term of Office of Committee Members)

Article 12-5 (1) The term of office of a committee member is two years; provided, however, that the term of office of a committee member appointed to fill a vacancy is the remaining period of his/her successor.

(2) Committee members may be reappointed.

(3) Temporary members are to be dismissed upon the conclusion of the investigation and deliberation on the special matters for which they have been appointed.

(4) Expert members are to be dismissed upon the conclusion of the investigation on the matters requiring the expertise for which they have been appointed.

(5) Committee members, temporary members and expert members serve on a part-time basis.

(Chairperson)

Article 12-6 (1) The Committee has a chairperson who is elected from among the committee members.

(2) The chairperson presides over the affairs of the Committee and represents the Committee.

(3) If the chairperson is unable to attend to his/her duties, a committee member who has been designated by the chairperson in advance performs the duties of the chairperson on his/her behalf.

(Request for Submission of Materials)

Article 12-7 The Committee may request the head of the relevant administrative organ to submit materials, express opinions, provide explanation and offer any other necessary cooperation if it finds this to be necessary in order to carry out the affairs under its jurisdiction.

(Delegation to Cabinet Order)

Article 12-8 In addition to what is provided for in this Section, the organization as well as the members and other officials of the Committee and any other necessary matters concerning the Committee are specified by Cabinet Order.

Section 3 Incorporation

(Procedure for Incorporation)

Article 13 The procedure concerning the incorporation of an Incorporated Administrative Agency is as provided for in this Section, except as otherwise provided for by the relevant Individual Law.

(Person Who Is to Be the President or an Auditor of an Agency)

Article 14 (1) The competent minister nominates a person who is to be the president of an Incorporated Administrative Agency (hereinafter referred to as the "Agency President") and a person(s) who is to be an auditor(s) thereof.

(2) A person who is nominated to be the Agency President or an auditor pursuant to the provisions of the preceding paragraph is deemed to be appointed respectively as the Agency President or auditor at the time of the formation of the Incorporated Administrative Agency as provided for in this Act.

(3) The provisions of Article 20, paragraph (1) apply mutatis mutandis to the nomination of a person who is to be the Agency President as referred to in paragraph (1).

(Organizing Committee Members)

Article 15 (1) The competent minister appoints organizing committee members for the purpose of processing the affairs concerning the incorporation of an Incorporated Administrative Agency.

(2) When organizing committee members complete the preparation for incorporating an Incorporated Administrative Agency, they must notify the competent minister thereof and hand over the affairs concerning the incorporation to the person who is nominated to be the Agency President pursuant to the provisions of paragraph (1) of the preceding Article, without delay.

(Registration of Incorporation)

Article 16 When the person who is nominated to be the Agency President pursuant to the provisions of Article 14, paragraph (1) takes over the affairs pursuant to the provisions of paragraph (2) of the preceding Article, said person must complete the registration of the incorporation without delay pursuant to the provisions of Cabinet Order.

Article 17 An Incorporated Administrative Agency is formed upon the registration of its incorporation.

Chapter II Officers and Employees

(Officers)

Article 18 (1) An Incorporated Administrative Agency has an Agency President and an auditor(s) in place as its officers, pursuant to the provisions of the relevant Individual Law.

(2) An Incorporated Administrative Agency may have other officers in place in addition to the officers provided for in the preceding paragraph, pursuant to the provisions of the relevant Individual Law.

(3) The title of the Agency President of an Incorporated Administrative Agency, the titles and the fixed number of its officers provided for in the preceding paragraph, and the fixed number of its auditors are specified by the relevant Individual Law.

(Duties and Authority of Officers)

Article 19 (1) The Agency President represents the Incorporated Administrative Agency and presides over its operations.

(2) The officers provided for by the relevant Individual Law (excluding the Agency President) perform the duties of the Agency President on his/her behalf when the Agency President is unable to attend to his/her duties, and perform the duties of the Agency President when the post is vacant, as determined by the Agency President.

(3) The duties and authority of the officers put in place pursuant to the provisions of paragraph (2) of the preceding Article are specified by the relevant Individual Law.

(4) An auditor audits the operations of an Incorporated Administrative Agency. In this case, the auditor must prepare an audit report, pursuant to the provisions of Ordinance of the Competent Ministry.

(5) Auditors may request reports on affairs and businesses from officers (excluding another auditor(s)) and employees, or investigate the status of the operations and property of the Incorporated Administrative Agency at any time.

(6) When an Incorporated Administrative Agency intends to submit the following documents to the competent minister, its auditor must investigate these documents:

(i) documents concerning the authorization, approval, certification and notification under the provisions of this Act, as well as reports and other documents specified by Ordinance of the Ministry of Internal Affairs and Communications; and

(ii) other documents specified by Ordinance of the Competent Ministry.

(7) An auditor may request reports on the business from a Subsidiary of the Incorporated Administrative Agency (meaning a juridical person specified by Ordinance of the Ministry of Internal Affairs and Communications as a juridical person whose management is controlled by an Incorporated Administrative Agency; the same applies hereinafter) or investigate the status of the operations and property of the Subsidiary if this is necessary in order to perform the duties of the auditor.

(8) The Subsidiary referred to in the preceding paragraph may refuse the report or investigation referred to in said paragraph if reasonable grounds for such refusal exist.

(9) An auditor may submit his/her opinions to the Agency President or the competent minister if the auditor finds this to be necessary based on the results of an audit.

(Duty to Report to the Agency President)

Article 19-2 If an auditor finds that an officer (excluding another auditor) engages in or is likely to engage in misconduct or finds any fact which would constitute violation of this Act, the relevant Individual Law or any other laws and regulations or any extremely improper fact, the auditor must notify the Agency President thereof and report the information to the competent minister without delay.

(Appointment of Officers)

Article 20 (1) The Agency President is appointed by the competent minister from among the following persons:

(i) persons who have advanced knowledge and experience concerning the affairs and businesses conducted by the Incorporated Administrative Agency; and

(ii) in addition to what is set forth in the preceding item, persons who are competent to properly and efficiently administer the affairs and businesses conducted by the Incorporated Administrative Agency.

(2) An auditor is appointed by the competent minister.

(3) When the competent minister intends to appoint the Agency President or an auditor pursuant to the provisions of the preceding two paragraphs, the minister must endeavor to make use of Open Recruitment (meaning the recruitment of candidates by announcing by public notice the details of the duties, the working terms and conditions, and other necessary matters concerning the office of the Agency President or auditor; hereinafter the same applies in this paragraph). Other than when using Open Recruitment, the competent minister must also endeavor to take the necessary measures to appoint a person who is considered to be suitable for the office, such as seeking a recommendation of the candidate from another person, while securing transparency.

(4) Officers put in place pursuant to the provisions of Article 18, paragraph (2) are appointed by the Agency President from among the persons set forth in the items of paragraph (1).

(5) When the Agency President appoints an officer pursuant to the provisions of the preceding paragraph, the president must notify the competent minister of such appointment and publicize it without delay.

(Term of Office of Officers of an Agency Managed under the Medium-term Objectives)

Article 21 (1) The term of office of the president of an Agency Managed under the Medium-term Objectives begins on the date of appointment and ends on the last day of the period for the medium-term objectives provided for in Article 29, paragraph (2), item (i) (simply referred to as the "Period for the Medium-term Objectives" in the following paragraph) which is specified for the Agency Managed under the Medium-term Objectives and which includes said date of appointment.

(2) The term of office of an auditor of an Agency Managed under the Medium-term Objectives is specified as corresponding to each Period for the Medium-term Objectives, and it begins on the date of appointment and ends on the Date of Approval of Financial Statements (meaning the date on which the financial statements referred to in Article 38, paragraph (1) are approved pursuant to the provisions of said paragraph; the same applies hereinafter) for the last business year within said corresponding Period for the Medium-term Objectives; provided, however, that the term of office of an auditor of an Agency Managed under the Medium-term Objectives appointed to fill a vacancy is the remaining period of his/her successor.

(3) The term of office of an officer of an Agency Managed under the Medium-term Objectives (excluding the president and an auditor of the Agency Managed under the Medium-term Objectives; hereinafter the same applies in this paragraph) is specified by the relevant Individual Law; provided, however, that the term of office of an officer of an Agency Managed under the Medium-term Objectives appointed to fill a vacancy is the remaining period of his/her successor.

(4) Officers of an Agency Managed under the Medium-term Objectives may be reappointed.

(Term of Office of Officers of a National Research and Development Agency)

Article 21-2 (1) The term of office of the president of a National Research and Development Agency begins on the date of appointment and ends on the last day of the period for the medium to long-term objectives provided for in Article 35-4, paragraph (2), item (i) (simply referred to as the "Period for the Medium to Long-term Objectives" in this paragraph and the following paragraph) which is specified for the National Research and Development Agency and which includes said date of appointment; provided, however, that if the Period for the Medium to Long-term Objectives is six years or seven years and the competent minister finds it to be particularly necessary in order to appoint a person who is considered to be more suitable for the office, the term of office of the first president of a National Research and Development Agency to be appointed on or after the first day of the Period for the Medium to Long-term Objectives (hereinafter simply referred to as the "First Day" in this paragraph and the following paragraph) may be specified as a period that begins on the date of appointment and ends on the day specified in each of the following items according to the cases set forth respectively in these items:

(i) if the Period for the Medium to Long-term Objectives is six years: the day on which a period of three years elapses from the First Day; or

(ii) if the Period for the Medium to Long-term Objectives is seven years: the day on which a period of three or four years elapses from the First Day.

(2) Notwithstanding the provisions of the preceding paragraph, if the competent minister finds it to be particularly necessary in order to appoint a person who is considered to be more suitable as a person who is to be the president of the National Research and Development Agency pursuant to the provisions of Article 14, paragraph (1) and the Period for the Medium to Long-term Objectives is not less than six years and not more than seven years, the term of office of the president of the National Research and Development Agency, who is deemed to be appointed at the time of its formation as provided for in paragraph (2) of said Article, may be specified as a period that begins on the date of appointment and ends on the day specified in each of the following items according to the cases set forth respectively in these items:

(i) if the Period for the Medium to Long-term Objectives is six years: the day on which a period of three years elapses from the First Day;

(ii) if the Period for the Medium to Long-term Objectives is more than six years and less than seven years: the last day of the last business year that ends by the day on which a period of four years elapses from the First Day; or

(iii) if the Period for the Medium to Long-term Objectives is seven years: the day on which a period of three or four years elapses from the First Day.

(3) Notwithstanding the provisions of the preceding two paragraphs, the term of office of the president of a National Research and Development Agency appointed to fill a vacancy is the remaining period of his/her successor.

(4) The term of office of an auditor of a National Research and Development Agency is specified as corresponding to the term of office of the president of the National Research and Development Agency (including the term of office of the president of the National Research and Development Agency appointed to fill a vacancy; hereinafter the same applies in this paragraph), and it begins on the date of appointment and ends on the Date of Approval of Financial Statements for the business year in which the last day of said corresponding term of office of the president of the National Research and Development Agency falls; provided, however, that the term of office of an auditor of a National Research and Development Agency appointed to fill a vacancy is the remaining period of his/her successor.

(5) The term of office of an officer of a National Research and Development Agency (excluding the president and an auditor of the National Research and Development Agency; hereinafter the same applies in this paragraph) is specified by the relevant Individual Law; provided, however, that the term of office of an officer of a National Research and Development Agency appointed to fill a vacancy is the remaining period of his/her successor.

(6) Officers of a National Research and Development Agency may be reappointed.

(Term of Office of Officers of an Agency Engaged in Administrative Execution)

Article 21-3 (1) The term of office of the president of an Agency Engaged in Administrative Execution begins on the date of appointment and ends on the last day of the last business year that ends by the day on which a period specified in units of year by the relevant Individual Law elapses from said date of appointment; provided, however, that the term of office of the president of an Agency Engaged in Administrative Execution appointed to fill a vacancy is the remaining period of his/her successor.

(2) The term of office of an auditor of an Agency Engaged in Administrative Execution is specified as corresponding to the term of office of the president of the Agency Engaged in Administrative Execution (including the term of office of the president of the Agency Engaged in Administrative Execution appointed to fill a vacancy; hereinafter the same applies in this paragraph), and it begins on the date of appointment and ends on the Date of Approval of Financial Statements for the business year in which the last day of said corresponding term of office of the president of the Agency Engaged in Administrative Execution falls; provided, however, that the term of office of an auditor of an Agency Engaged in Administrative Execution appointed to fill a vacancy is the remaining period of his/her successor.

(3) The term of office of an officer of an Agency Engaged in Administrative Execution (excluding the president and an auditor of the Agency Engaged in Administrative Execution; hereinafter the same applies in this paragraph) is specified by the relevant Individual Law; provided, however, that the term of office of an officer of an Agency Engaged in Administrative Execution appointed to fill a vacancy is the remaining period of his/her successor.

(4) Officers of an Agency Engaged in Administrative Execution may be reappointed.

(Officers' Duty of Loyalty)

Article 21-4 Officers of an Incorporated Administrative Agency must, in connection with its operations, observe the laws and regulations, the dispositions made by the competent minister under the laws and regulations, the statement of operational procedures and other regulations established by the Incorporated Administrative Agency, and perform their duties with due loyalty to the Incorporated Administrative Agency.

(Officers' Duty to Report)

Article 21-5 If an officer (excluding an auditor) of an Incorporated Administrative Agency finds any fact that is likely to cause extreme harm to the Incorporated Administrative Agency, the officer must report such fact to the auditor immediately.

(Disqualification of Officers)

Article 22 A government official or an official of a local public entity (excluding a part-time official) is ineligible to be an officer of an Incorporated Administrative Agency.

(Dismissal of Officers)

Article 23 (1) If an officer appointed respectively by the competent minister or the Agency President becomes a person who is ineligible to be an officer pursuant to the provisions of the preceding Article, the minister or the president must dismiss said officer.

(2) If an officer appointed respectively by the competent minister or the Agency President falls under any of the following items or is otherwise found to be unfit to serve as an officer, the minister or the president may dismiss said officer:

(i) if the officer is found to be unable to perform his/her duties due to a mental or physical disorder; or

(ii) if the officer violates an obligation in the course of his/her duties.

(3) In addition to what is provided for in the preceding paragraph, if the results of the operations of the Incorporated Administrative Agency have deteriorated due to the improper performance of the duties by an officer (excluding an auditor) appointed respectively by the competent minister or the Agency President and the minister or the president finds it inappropriate to have said officer continue to perform those duties, the minister or the president may dismiss said officer.

(4) If, pursuant to the provisions of the preceding two paragraphs, the Agency President dismisses an officer appointed thereby, the president must notify the competent minister of such dismissal and publicize it without delay.

(Limitation on Right to Represent)

Article 24 The Agency President or any other officer with the right to represent is not entitled to the right to represent with regard to matters for which there is a conflict of interest between the Incorporated Administrative Agency and the president or said officer. In this case, an auditor represents the Incorporated Administrative Agency.

(Appointment of Agent)

Article 25 The Agency President or any other officer with the right to represent may appoint an agent who is authorized to conduct all judicial or extra-judicial acts concerning a part of the operations of the Incorporated Administrative Agency, from among the officers without the right to represent or the employees of the Incorporated Administrative Agency.

(Officers' Liability to Compensate for Damage)

Article 25-2 (1) If an officer or accounting auditor (referred to as "Officer, etc." in paragraph (4)) of an Incorporated Administrative Agency is negligent in performing the duties thereof, said officer or accounting auditor bears liability to compensate for any damage arising from such negligence to the Incorporated Administrative Agency.

(2) The Officer, etc. bearing the liability referred to in the preceding paragraph may not be exempted from that liability without the approval of the competent minister.

(3) The competent minister must consult with the Minister of Internal Affairs and Communications before granting the approval referred to in the preceding paragraph.

(4) Notwithstanding the provisions of the preceding two paragraphs, an Incorporated Administrative Agency may provide in its statement of operational procedures that if the Officer, etc. bearing the liability referred to in paragraph (1) has performed the duties thereof in good faith and without gross negligence, and the Incorporated Administrative Agency finds it to be particularly necessary while taking into account the details of the facts that have caused the liability, the status of performance of duties by the Officer, etc., and other circumstances, the Incorporated Administrative Agency may exempt the Officer, etc. from that liability, with the approval of the competent minister, up to the amount calculated by deducting the amount specified by the Minister of Internal Affairs and Communications in consideration of the characteristics of the affairs and businesses of the Incorporated Administrative Agency, the responsibility of the Officer, etc. and other circumstances, from the amount for which the Officer, etc. is liable to compensate for damage.

(Appointment of Employees)

Article 26 Employees of an Incorporated Administrative Agency are appointed by the Agency President.

Chapter III Administration of Operations

Section 1 General Rules

(Scope of Operations)

Article 27 The scope of operations of an Incorporated Administrative Agency is specified by the relevant Individual Law.

(Statement of Operational Procedures)

Article 28 (1) On commencing operations, an Incorporated Administrative Agency must prepare a statement of operational procedures and obtain the authorization therefor from the competent minister. The same applies when the agency intends to revise such statement.

(2) The statement of operational procedures referred to in the preceding paragraph must contain the matters concerning the development of a system for ensuring that the performance of duties by its officers (excluding auditors) complies with this Act, the relevant Individual Law and any other laws and regulations and any other system for ensuring the proper operations of the Incorporated Administrative Agency, and other matters specified by Ordinance of the Competent Ministry.

(3) When an Incorporated Administrative Agency obtains the authorization referred to in paragraph (1), it must publicize the authorized statement of operational procedures without delay.

(Formulation of Guidelines for Evaluation)

Article 28-2 (1) The Minister of Internal Affairs and Communications must formulate the guidelines for setting the medium-term objectives referred to in Article 29, paragraph (1), the medium to long-term objectives referred to in Article 35-4, paragraph (1), and the annual objectives referred to in Article 35-9, paragraph (1) and for conducting the evaluation referred to in Article 32, paragraph (1), Article 35-6, paragraphs (1) and (2), and Article 35-11, paragraphs (1) and (2), and must notify the competent minister of such guidelines and publicize them. The same applies when the minister revises such guidelines.

(2) When the Minister of Internal Affairs and Communications intends to formulate or revise the guidelines referred to in the preceding paragraph, the minister must ensure that the contents of the guidelines related to the matters concerning the affairs and businesses in Research and Development, which are drafted by the Council for Science, Technology and Innovation pursuant to the provisions of the following Article, are reflected appropriately in the guidelines to be formulated or revised, and must hear the opinions of the Committee in advance.

(3) The competent minister must set the medium-term objectives referred to in Article 29, paragraph (1), the medium to long-term objectives referred to in Article 35-4, paragraph (1), and the annual objectives referred to in Article 35-9, paragraph (1), and conduct the evaluation referred to in Article 32, paragraph (1), Article 35-6, paragraphs (1) and (2), and Article 35-11, paragraphs (1) and (2), according to the guidelines referred to in paragraph (1).

(Drafting of Guidelines Related to Matters Concerning Affairs and Businesses in Research and Development)

Article 28-3 The Council for Science, Technology and Innovation drafts the guidelines referred to in paragraph (1) of the preceding Article which are related to the matters concerning the affairs and businesses in Research and Development, upon the request of the Minister of Internal Affairs and Communications and in light of the characteristics of the affairs and businesses in Research and Development.

(Treatment of Evaluation Results)

Article 28-4 An Incorporated Administrative Agency must ensure that the results of the evaluation referred to in Article 32, paragraph (1), Article 35-6, paragraph (1) or paragraph (2) or Article 35-11, paragraph (1) or paragraph (2) are reflected appropriately in the medium-term plan referred to in Article 30, paragraph (1) and the annual plan referred to in Article 31, paragraph (1), the medium to long-term plan referred to in Article 35-5, paragraph (1) and the annual plan referred to in Article 31, paragraph (1) as applied mutatis mutandis pursuant to Article 35-8 after deemed replacement, or the business plan referred to in Article 35-10, paragraph (1), and in the improvement of the administration of its operations, and must publicize for each fiscal year how the evaluation results are reflected in these items.

Section 2 Agency Managed under the Medium-term Objectives

(Medium-term Objectives)

Article 29 (1) The competent minister must set objectives concerning the administration of the operations to be achieved by an Agency Managed under the Medium-term Objectives during a period of not less than three years and not more than five years (hereinafter referred to as "Medium-term Objectives"), and give instructions to the Agency Managed under the Medium-term Objectives with regard to these objectives and publicize them. The same applies when the minister revises those objectives.

(2) The Medium-term Objectives are to specifically set forth the following matters:

(i) the Period for the Medium-term Objectives (meaning the period specified by the competent minister to the extent of the period referred to in the preceding paragraph; the same applies hereinafter);

(ii) matters concerning the improvement of the quality of the services provided to citizens and any other operations;

(iii) matters concerning the improvement of the efficiency of the administration of the operations;

(iv) matters concerning the improvement of the financial conditions; and

(v) other important matters concerning the administration of the operations.

(3) When the competent minister intends to set or revise the Medium-term Objectives, the minister must hear the opinions of the Committee in advance.

(Medium-term Plan)

Article 30 (1) When an Agency Managed under the Medium-term Objectives is given the instructions referred to in paragraph (1) of the preceding Article, it must prepare a plan for achieving the Medium-term Objectives (hereinafter referred to as a "Medium-term Plan" in this Section) pursuant to the provisions of Ordinance of the Competent Ministry based on the Medium-term Objectives and obtain the authorization for such a plan from the competent minister. The same applies when the agency intends to revise such plan.

(2) The Medium-term Plan is to specify the following matters:

(i) the measures to be taken for achieving the objectives concerning the improvement of the quality of the services provided to citizens and any other operations;

(ii) the measures to be taken for achieving the objectives concerning the improvement of the efficiency of the administration of the operations;

(iii) the budget (including an estimate of personnel expenses), an income and expenditure plan, and a funding plan;

(iv) the maximum amount of short-term borrowings;

(v) if the agency has any Unnecessary Property or any property that is expected to be Unnecessary Property, a plan for disposal of such property;

(vi) if the agency intends to transfer or provide as collateral any important property other than the property provided for in the preceding item, a plan therefor;

(vii) use of a surplus; and

(viii) other matters concerning the administration of the operations specified by Ordinance of the Competent Ministry.

(3) If the competent minister finds that the Medium-term Plan authorized thereby as referred to in paragraph (1) has become inappropriate for implementing the matters set forth in items (ii) through (v) of paragraph (2) of the preceding Article properly and securely, the minister may order such Medium-term Plan to be revised.

(4) When an Agency Managed under the Medium-term Objectives obtains the authorization referred to in paragraph (1), it must publicize the authorized Medium-term Plan without delay.

(Annual Plan)

Article 31 (1) Prior to the start of each business year, an Agency Managed under the Medium-term Objectives must establish a plan for the administration of the operations for said business year (referred to as an "Annual Plan" in the following paragraph) pursuant to the provisions of Ordinance of the Competent Ministry based on the Medium-term Plan as authorized under paragraph (1) of the preceding Article, and must notify the competent minister of such plan and publicize it. The same applies when the agency revises such plan.

(2) With regard to the Annual Plan of an Agency Managed under the Medium-term Objectives for its first business year, the phrase "Prior to the start of each business year, ... the Medium-term Plan as authorized under paragraph (1) of the preceding Article" in the preceding paragraph is deemed to be replaced with "Without delay after obtaining the authorization referred to in paragraph (1) of the preceding Article for the first Medium-term Plan prepared since its formation, ... said Medium-term Plan."

(Evaluation on Results of Operations in Each Business Year)

Article 32 (1) An Agency Managed under the Medium-term Objectives must undergo an evaluation conducted by the competent minister after the end of each business year with regard to the matters specified in each of the following items according to the business year among the years set forth respectively in these items to which the relevant business year corresponds:

(i) a business year other than the business years set forth in the following item and item (iii): the results of the operations during the relevant business year;

(ii) the business year immediately preceding the last business year within the Period for the Medium-term Objectives: the results of the operations during the relevant business year and the results of the operations during the Period for the Medium-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium-term Objectives; or

(iii) the last business year within the Period for the Medium-term Objectives: the results of the operations during the relevant business year and the results of the operations during the Period for the Medium-term Objectives.

(2) When an Agency Managed under the Medium-term Objectives intends to undergo the evaluation referred to in the preceding paragraph, it must submit to the competent minister a report which clearly indicates the matters specified in item (i), item (ii) or item (iii) of said paragraph and the results of its self-evaluation on these matters within three months from the end of each business year pursuant to the provisions of Ordinance of the Competent Minister, and must publicize such report.

(3) The evaluation referred to in paragraph (1) must be conducted by comprehensively assessing the matters specified in item (i), item (ii) or item (iii) of said paragraph. In this case, the evaluation on the results of the operations provided for in the items of said paragraph during the relevant business year must be conducted by investigating and analyzing the status of the implementation of the Medium-term Plan during the relevant business year and by taking into consideration the results of such investigation and analysis.

(4) When the competent minister conducts the evaluation referred to in paragraph (1), the minister must notify the Agency Managed under the Medium-term Objectives of the results of the evaluation and publicize such results without delay. In this case, if the competent minister conducts the evaluation on the results of the operations during the Period for the Medium-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium-term Objectives as provided for in item (ii) of said paragraph, the minister must also notify the Committee of the results of the evaluation without delay.

(5) The Committee must state its opinions to the competent minister with regard to the results of the evaluation that it has been notified of pursuant to the provisions of the preceding paragraph if it finds this to be necessary.

(6) The competent minister may order the Agency Managed under the Medium-term Objectives to improve the administration of its operations or take any other necessary measures if the minister finds this to be necessary based on the results of the evaluation referred to in paragraph (1).

Article 33 Deleted

Article 34 Deleted

(Review at the End of the Period for the Medium-Term Objectives)

Article 35 (1) When the competent minister conducts the evaluation on the results of the operations during the Period for the Medium-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium-term Objectives as provided for in Article 32, paragraph (1), item (ii), the minister is to make a review, by the end of the Period for the Medium-term Objectives, with regard to the necessity for having the Agency Managed under the Medium-term Objectives continue its operations or maintain its organization and the overall aspects of its operations and organization, and must take measures for the discontinuation or transfer of its operations or the disestablishment of its organization or any other required measures based on the results of such review.

(2) The competent minister must notify the Committee of the results of the review referred to in the preceding paragraph and the details of the measures to be taken pursuant to the provisions of said paragraph and publicize such results and details.

(3) The Committee must state its opinions to the competent minister with regard to the matters that it has been notified of pursuant to the provisions of the preceding paragraph if it finds this to be necessary.

(4) In the case referred to in the preceding paragraph, the Committee may make recommendations to the competent minister with regard to the reform or discontinuation of any major affairs and businesses of the Agency Managed under the Medium-term Objectives.

(5) If the Committee makes recommendations as referred to in the preceding paragraph, it must report the contents of the recommendations to the Prime Minister and publicize such contents.

(6) If the Committee makes recommendations as referred to in paragraph (4), it may request reports from the competent minister with regard to the measures that the minister has taken or intends to take based on its recommendations.

(Offering of Opinions to the Prime Minister)

Article 35-2 If the Committee makes recommendations pursuant to the provisions of paragraph (4) of the preceding Article and finds it to be particularly necessary, it may offer its opinions to the Prime Minister to propose that the measures under the provisions of Article 6 of the Cabinet Act (Act No. 5 of 1947) be taken with regard to the matters for which it has made the recommendations.

(Rectification of Illegal Acts)

Article 35-3 If the competent minister finds that an Agency Managed under the Medium-term Objectives or its officer or employee has engaged in misconduct or committed an act that violates this Act, the relevant Individual Law or any other laws and regulations or is likely to engage in misconduct or commit such act, or if an Agency Managed under the Medium-term Objectives administers its operations in an extremely improper manner and it is obvious that the public interest would be harmed if such administration of the operations were left unaddressed, and the minister finds it to be particularly necessary, the minister may order the Agency Managed under the Medium-term Objectives to take the necessary measures for rectifying such misconduct or act or for improving the administration of the operations.

Section 3 National Research and Development Agency

(Medium to Long-term Objectives)

Article 35-4 (1) The competent minister must set objectives concerning the administration of the operations to be achieved by a National Research and Development Agency during a period of not less than five years and not more than seven years (hereinafter referred to as "Medium to Long-term Objectives"), and give instructions to the National Research and Development Agency with regard to these objectives and publicize them. The same applies when the minister revises those objectives.

(2) The Medium to Long-term Objectives are to specifically set forth the following matters:

(i) the Period for the Medium to Long-term Objectives (meaning the period specified by the competent minister to the extent of the period referred to in the preceding paragraph; the same applies hereinafter);

(ii) matters concerning the maximization of the results of Research and Development and the improvement of the quality of any other operations;

(iii) matters concerning the improvement of the efficiency of the administration of the operations;

(iv) matters concerning the improvement of the financial conditions; and

(v) other important matters concerning the administration of the operations.

(3) When the competent minister intends to set or revise the Medium to Long-term Objectives, the minister must hear the opinions of the Committee in advance.

(4) When the competent minister intends to hear opinions concerning the Medium to Long-term Objectives pursuant to the provisions of the preceding paragraph, the minister must hear the opinions of a council, etc. (meaning the organ provided for in Article 37 or Article 54 of the Act for Establishment of the Cabinet Office (Act No. 89 of 1999) or Article 8 of the National Government Organization Act (Act No. 120 of 1948)) which is specified by Cabinet Order (hereinafter referred to as the "Council for Research and Development") with regard to the matters concerning the affairs and businesses in Research and Development (excluding those specified by Cabinet Order as minor affairs or businesses; the same applies in Article 35-6, paragraph (6) and Article 35-7, paragraph (2)) in advance.

(5) The competent minister may appoint a Foreign National (meaning a person who does not have Japanese nationality; the same applies in the following paragraph) who has great insight in Research and Development as a member of the Council for Research and Development.

(6) In the case referred to in the preceding paragraph, a member of the Council for Research and Development who is a Foreign National may not preside over the affairs of the Council for Research and Development or represent the Council for Research and Development, and the number of such members may not exceed one-fifth of the total number of members of the Council for Research and Development.

(Medium to Long-term Plan)

Article 35-5 (1) When a National Research and Development Agency is given the instructions referred to in paragraph (1) of the preceding Article, it must prepare a plan for achieving the Medium to Long-term Objectives (hereinafter referred to as a "Medium to Long-term Plan" in this Section) pursuant to the provisions of Ordinance of the Competent Ministry based on the Medium to Long-term Objectives and obtain the authorization for such a plan from the competent minister. The same applies when the agency intends to revise such plan.

(2) The Medium to Long-term Plan is to specify the following matters:

(i) the measures to be taken for achieving the objectives concerning the maximization of the results of Research and Development and the improvement of the quality of any other operations;

(ii) the measures to be taken for achieving the objectives concerning the improvement of the efficiency of the administration of the operations;

(iii) the budget (including an estimate of personnel expenses), an income and expenditure plan, and a funding plan;

(iv) the maximum amount of short-term borrowings;

(v) if the agency has any Unnecessary Property or any property that is expected to be Unnecessary Property, a plan for disposal of such property;

(vi) if the agency intends to transfer or provide as collateral any important property other than the property provided for in the preceding item, a plan therefor;

(vii) use of a surplus; and

(viii) other matters concerning the administration of the operations specified by Ordinance of the Competent Ministry.

(3) If the competent minister finds that the Medium to Long-term Plan authorized thereby as referred to in paragraph (1) has become inappropriate for implementing the matters set forth in items (ii) through (v) of paragraph (2) of the preceding Article properly and securely, the minister may order such Medium to Long-term Plan to be revised.

(4) When a National Research and Development Agency obtains the authorization referred to in paragraph (1), it must publicize the authorized Medium to Long-term Plan without delay.

(Evaluation on Results of Operations in Each Business Year)

Article 35-6 (1) A National Research and Development Agency must undergo an evaluation conducted by the competent minister after the end of each business year with regard to the matters specified in each of the following items according to the business year among the years set forth respectively in these items to which the relevant business year corresponds:

(i) a business year other than the business years set forth in the following item and item (iii): the results of the operations during the relevant business year;

(ii) the business year immediately preceding the last business year within the Period for the Medium to Long-term Objectives: the results of the operations during the relevant business year and the results of the operations during the Period for the Medium to Long-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium to Long-term Objectives; or

(iii) the last business year within the Period for the Medium to Long-term Objectives: the results of the operations during the relevant business year and the results of the operations during the Period for the Medium to Long-term Objectives.

(2) If the term of office of the first president of a National Research and Development Agency to be appointed on or after the first day of the Period for the Medium to Long-term Objectives is specified pursuant to the provisions of the proviso to Article 21-2, paragraph (1), or the term of office of the president of a National Research and Development Agency who is deemed to be appointed at the time of its formation pursuant to the provisions of Article 14, paragraph (2) is specified pursuant to the provisions of Article 21-2, paragraph (2), such National Research and Development Agency must undergo an evaluation conducted by the competent minister after the end of the business year in which the last day of the term of office of such president of the National Research and Development Agency (hereinafter referred to as the "First President of the National Research and Development Agency" in this paragraph) (including the term of office of the president of the National Research and Development Agency appointed to fill a vacancy) falls, with regard to the results of the operations during the period between the business year in which the date of appointment of the First President of the National Research and Development Agency falls and the end of the business year in which said last day falls, in addition to the evaluation under the provisions of the preceding paragraph.

(3) When a National Research and Development Agency intends to undergo the evaluation referred to in paragraph (1), it must submit to the competent minister a report which clearly indicates the matters specified in item (i), item (ii) or item (iii) of said paragraph and the results of its self-evaluation on these matters and publicize such report within three months from the end of each business year, pursuant to the provisions of Ordinance of the Competent Minister.

(4) When a National Research and Development Agency intends to undergo the evaluation referred to in paragraph (2), it must submit to the competent minister a report which clearly indicates the results of the operations provided for in said paragraph and the results of its self-evaluation on these results of the operations and publicize such report within three months from the end of the business year in which the last day provided for in said paragraph falls, pursuant to the provisions of Ordinance of the Competent Minister.

(5) The evaluation referred to in paragraph (1) or paragraph (2) must be conducted by comprehensively assessing the matters specified in paragraph (1) item (i), item (ii) or item (iii) or the results of the operations provided for in paragraph (2). In this case, the evaluation on the results of the operations provided for in the items of paragraph (1) during the relevant business year must be conducted by investigating and analyzing the status of the implementation of the Medium to Long-term Plan during the relevant business year and by taking into consideration the results of such investigation and analysis.

(6) When the competent minister intends to conduct the evaluation referred to in paragraph (1) or paragraph (2), the minister must hear the opinions of the Council for Research and Development with regard to the matters concerning the affairs and businesses in Research and Development in advance.

(7) When the competent minister conducts the evaluation referred to in paragraph (1) or paragraph (2), the minister must notify the National Research and Development Agency of the results of the evaluation and publicize such results without delay. In this case, if the competent minister conducts the evaluation on the results of the operations during the Period for the Medium to Long-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium to Long-term Objectives as provided for in paragraph (1), item (ii), the minister must also notify the Committee of the results of the evaluation without delay.

(8) The Committee must state its opinions to the competent minister with regard to the results of the evaluation that it has been notified of pursuant to the provisions of the preceding paragraph if it finds this to be necessary.

(9) The competent minister may order the National Research and Development Agency to improve the administration of its operations or take any other necessary measures if the minister finds this to be necessary based on the results of the evaluation referred to in paragraph (1) or paragraph (2).

(Review at the End of the Period for the Medium to Long-Term Objectives)

Article 35-7 (1) When the competent minister conducts the evaluation on the results of the operations during the Period for the Medium to Long-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium to Long-term Objectives as provided for in paragraph (1), item (ii) of the preceding Article, the minister is to make a review, by the end of the Period for the Medium to Long-term Objectives, with regard to the necessity for having the National Research and Development Agency continue its operations or maintain its organization and the overall aspects of its operations and organization, and must take measures for the discontinuation or transfer of its operations or the disestablishment of its organization or any other required measures based on the results of such review.

(2) When making the review pursuant to the provisions of the preceding paragraph, the competent minister must hear the opinions of the Council for Research and Development with regard to the matters concerning the affairs and businesses in Research and Development.

(3) The competent minister must notify the Committee of the results of the review referred to in paragraph (1) and the details of the measures to be taken pursuant to the provisions of said paragraph and publicize such results and details.

(4) The Committee must state its opinions to the competent minister with regard to the matters that it has been notified of pursuant to the provisions of the preceding paragraph if it finds this to be necessary.

(5) In the case referred to in the preceding paragraph, the Committee may make recommendations to the competent minister with regard to the reform or discontinuation of any major affairs and businesses of the National Research and Development Agency.

(6) If the Committee makes recommendations as referred to in the preceding paragraph, it must report the contents of the recommendations to the Prime Minister and publicize such contents.

(7) If the Committee makes recommendations as referred to in paragraph (5), it may request reports from the competent minister with regard to the measures that the minister has taken or intends to take based on its recommendations.

(Application Mutatis Mutandis of Provisions Concerning Administration of Operations)

Article 35-8 The provisions of Articles 31, 35-2, and 35-3 apply mutatis mutandis to a National Research and Development Agency. In this case: in Article 31, paragraph (1), the phrase "paragraph (1) of the preceding Article" is deemed to be replaced with "Article 35-5, paragraph (1)" and the term "Medium-term Plan" is deemed to be replaced with "Medium to Long-term Plan referred to in said paragraph"; in Article 31, paragraph (2), the phrase "as authorized under paragraph (1) of the preceding Article" is deemed to be replaced with "referred to in Article 35-5, paragraph (1) as authorized under said paragraph" and the phrase "authorization referred to in paragraph (1) of the preceding Article for the first Medium-term Plan" is deemed to be replaced with "authorization referred to in Article 35-5, paragraph (1) for the first Medium to Long-term Plan (meaning the medium to long-term plan referred to in said paragraph; hereinafter the same applies in this paragraph)"; and in Article 35-2, the phrase "paragraph (4) of the preceding Article" is deemed to be replaced with "Article 35-7, paragraph (5)."

Section 4 Agency Engaged in Administrative Execution

(Annual Objectives)

Article 35-9 (1) The competent minister must set objectives for each business year concerning the administration of the operations to be achieved by an Agency Engaged in Administrative Execution (hereinafter referred to as "Annual Objectives"), and give instructions to the Agency Engaged in Administrative Execution with regard to these objectives and publicize them. The same applies when the minister revises those objectives.

(2) The Annual Objectives are to specifically set forth the following matters:

(i) matters concerning the improvement of the quality of the services provided to citizens and any other operations;

(ii) matters concerning the improvement of the efficiency of the administration of the operations;

(iii) matters concerning the improvement of the financial conditions; and

(iv) other important matters concerning the administration of the operations.

(3) The Annual Objectives referred to in the preceding paragraph must contain the matters that should serve as a reference from a medium-term perspective with regard to the matters set forth in the items of said paragraph.

(Business Plan)

Article 35-10 (1) When an Agency Engaged in Administrative Execution is given the instruction referred to in paragraph (1) of the preceding Article for each business year, it must, prior to the start of the relevant business year, prepare a plan for achieving the Annual Objectives (hereinafter referred to as a "Business Plan" in this Article) pursuant to the provisions of Ordinance of the Competent Ministry based on the Annual Objectives and obtain the authorization for such a plan from the competent minister. The same applies when the agency intends to revise such plan.

(2) With regard to the Business Plan of an Agency Engaged in Administrative Execution for its first business year, the term "each business year" in the preceding paragraph is deemed to be replaced with "the first business year since its formation" and the phrase "prior to the start of the relevant business year" in said paragraph is deemed to be replaced with "without delay."

(3) The Business Plan is to specify the following matters:

(i) the measures to be taken for achieving the objectives concerning the improvement of the quality of the services provided to citizens and any other operations;

(ii) the measures to be taken for achieving the objectives concerning the improvement of the efficiency of the administration of the operations;

(iii) the budget (including an estimate of personnel expenses), an income and expenditure plan, and a funding plan;

(iv) the maximum amount of short-term borrowings;

(v) if the agency has any Unnecessary Property or any property that is expected to be Unnecessary Property, a plan for disposal of such property;

(vi) if the agency intends to transfer or provide as collateral any important property other than the property provided for in the preceding item, a plan therefor;

(vii) other matters concerning the administration of the operations specified by Ordinance of the Competent Ministry.

(4) If the competent minister finds that the Business Plan authorized thereby as referred to in paragraph (1) has become inappropriate for implementing the matters set forth in the items of paragraph (2) of the preceding Article properly and securely, the minister may order such Business Plan to be revised.

(5) When an Agency Engaged in Administrative Execution obtains the authorization referred to in paragraph (1), it must publicize the authorized Business Plan without delay.

(Evaluation on Results of Operations in Each Business Year)

Article 35-11 (1) An Agency Engaged in Administrative Execution must undergo an evaluation conducted by the competent minister after the end of each business year with regard to the results of its operations in the relevant business year.

(2) In addition to the evaluation under the provisions of the preceding paragraph, an Agency Engaged in Administrative Execution must undergo an evaluation conducted by the competent minister after the end of the last business year within a period specified by Ordinance of the Competent Ministry, which is not less than three years and not more than five years, with regard to the status of the implementation during said period of the matters concerning the improvement of the efficiency of the administration of the operations specified in the Annual Objectives.

(3) When an Agency Engaged in Administrative Execution intends to undergo the evaluation referred to in paragraph (1), it must submit to the competent minister a report which clearly indicates the results of the operations provided for in said paragraph and the results of its self-evaluation on these results of the operations and publicize such report within three months from the end of each business year, pursuant to the provisions of Ordinance of the Competent Minister.

(4) When an Agency Engaged in Administrative Execution intends to undergo the evaluation referred to in paragraph (2), it must submit to the competent minister a report which clearly indicates the status of the implementation of the matters provided for in said paragraph and the results of its self-evaluation on the status of the implementation of these matters and publicize such report within three months from the end of the business year provided for in said paragraph, pursuant to the provisions of Ordinance of the Competent Minister.

(5) The evaluation referred to in paragraph (1) or paragraph (2) must be conducted by comprehensively assessing the results of the operations provided for in paragraph (1) or the status of the implementation of the matters provided for in paragraph (2).

(6) When the competent minister conducts the evaluation referred to in paragraph (1) or paragraph (2), the minister must notify the Agency Engaged in Administrative Execution of the results of the evaluation and publicize such results without delay. In this case, if the competent minister conducts the evaluation referred to in paragraph (1) or paragraph (2), the minister must also notify the Committee of the results of the evaluation without delay.

(7) The Committee must state its opinions to the competent minister with regard to the results of the evaluation that it has been notified of pursuant to the provisions of the preceding paragraph if it finds this to be necessary.

(Supervision Order)

Article 35-12 The competent minister may issue an order to an Agency Engaged in Administrative Execution as necessary for the supervision of its operations if the minister finds this to be particularly necessary in order to ensure that the agency achieves the Annual Objectives or to enforce this Act or the relevant Individual Law.

Chapter IV Finance and Accounting

(Business Year)

Article 36 (1) The business year of an Incorporated Administrative Agency begins on April 1 each year and ends on March 31 of the following year.

(2) Notwithstanding the provisions of the preceding paragraph, the first business year of an Incorporated Administrative Agency begins on the date of its formation and ends on March 31 of the following year (March 31 of the same year in the case of an Incorporated Administrative Agency formed during the period from January 1 to March 31).

(Corporate Accounting Principles)

Article 37 The accounting of an Incorporated Administrative Agency is to be based on corporate accounting principles, as a general rule, pursuant to the provisions of Ordinance of the Competent Ministry.

(Financial Statements)

Article 38 (1) For each business year, an Incorporated Administrative Agency must prepare a balance sheet, a profit and loss statement, documents concerning the appropriation of profits or the disposal of losses, other documents specified by Ordinance of the Competent Ministry, and any annexed detailed statements thereof (hereinafter referred to as "Financial Statements"), and must submit them to the competent minister within three months from the end of the relevant business year and obtain the competent minister's approval.

(2) When an Incorporated Administrative Agency submits Financial Statements to the competent minister pursuant to the provisions of the preceding paragraph, it must attach thereto a business report prepared for the relevant business year prepared pursuant to the provisions of Ordinance of the Competent Ministry and a statement of accounts prepared in accordance with the categories of the budget, and also attach an audit report concerning the Financial Statements and the statement of accounts (in the case of an Incorporated Administrative Agency that needs to be audited by an accounting auditor pursuant to the provisions of paragraph (1) of the following Article, an audit report and an accounting audit report; the same applies hereinafter).

(3) When an Incorporated Administrative Agency obtains the approval of the competent minister under the provisions of paragraph (1), it must give public notice of the Financial Statements in an official gazette without delay, and must keep the Financial Statements as well as the business report, the statement of accounts and the audit report referred to in the preceding paragraph in each office and make them available for public inspection for a period specified by Ordinance of the Competent Ministry.

(4) An Incorporated Administrative Agency may give public notice of the annexed detailed documents referred to in paragraph (1) and any other documents specified by Ordinance of the Competent Ministry by any of the methods set forth below, in lieu of giving public notice under the provisions of the preceding paragraph:

(i) publication in a daily newspaper that publishes matters on current affairs; or

(ii) by Electronic Public Notice (meaning a method of public notice, whereby measures specified by Ordinance of the Ministry of Internal Affairs and Communications are implemented to make the information which should be given in public notice available to the general public, through a method using an electronic data processing system or using other information communications technology specified by Ordinance of the Ministry of Internal Affairs and Communications; hereinafter the same applies in the following paragraph).

(5) If an Incorporated Administrative Agency gives public notice by way of Electronic Public Notice pursuant to the provisions of the preceding paragraph, it must maintain said public notice for the period specified by Ordinance of the Competent Ministry referred to in paragraph (3).

(Audit by Accounting Auditor)

Article 39 (1) An Incorporated Administrative Agency (excluding an Incorporated Administrative Agency whose operational size, including its capital amount, fails to reach the standards provided by Cabinet Order; hereinafter the same applies in this Article) must be audited by an accounting auditor, in addition to being audited by an auditor, with regard to the Financial Statements, the business report (limited to the portion related to accounting) and the statement of accounts. In this case, an accounting auditor must prepare an accounting audit report pursuant to the provisions of Ordinance of the Competent Ministry.

(2) An accounting auditor may inspect and copy the following documents or request reports on accounting from officers (excluding auditors) and employees at any time:

(i) if accounting books or related materials are prepared in the form of a document, that document; and

(ii) if accounting books or related materials are prepared in Electromagnetic Records (meaning a record made in an electronic form, a magnetic form or any other form not recognizable to human perception, which is used in information processing by computers and specified by Ordinance of the Ministry of Internal Affairs and Communications; hereinafter the same applies in this item), anything recorded in said Electromagnetic Records and displayed by a method specified by Ordinance of the Ministry of Internal Affairs and Communications.

(3) If it is necessary for the performance of an accounting auditor's duties, the accounting auditor may request reports on accounting from a Subsidiary of an Incorporated Administrative Agency or investigate the status of the operations and property of an Incorporated Administrative Agency or its Subsidiary.

(4) The Subsidiary referred to in the preceding paragraph may refuse the report or investigation referred to in said paragraph if reasonable grounds for such refusal exist.

(5) An accounting auditor may not use any of the persons as specified in the following items in the course of performing the duties thereof:

(i) a person set forth in Article 41, paragraph (3), item (i) or item (ii);

(ii) an officer or employee of an Incorporated Administrative Agency or its Subsidiary for which said accounting auditor is appointed as an accounting auditor pursuant to the provisions of Article 40; or

(iii) a person who continuously receives remuneration for the services other than the services of a certified public accountant (including a foreign certified public accountant provided for in Article 16-2, paragraph (5) of the Certified Public Accountants Act (Act No. 103 of 1948); the same applies in Article 41, paragraph (1), and paragraph (3), item (ii)) or an audit corporation, from an Incorporated Administrative Agency or its Subsidiary for which said accounting auditor is appointed as an accounting auditor pursuant to the provisions of Article 40.

(Report to Auditor)

Article 39-2 (1) If an accounting auditor, in the course of performing the duties thereof, finds any misconduct or a material fact which would constitute violation of this Act, the relevant Individual Law or any other laws and regulations in relation to the performance of duties by an officer (excluding an auditor), the accounting auditor must report this to an auditor without delay.

(2) An auditor may request reports on auditing from an accounting auditor if the auditor finds this to be necessary in order to perform the duties thereof.

(Appointment of Accounting Auditor)

Article 40 An accounting auditor is appointed by the competent minister.

(Qualifications of Accounting Auditor)

Article 41 (1) An accounting auditor must be a certified public accountant or an audit corporation.

(2) An audit corporation appointed as an accounting auditor must appoint from among its members a person who is to perform the duties of an accounting auditor and notify the Incorporated Administrative Agency of said person. In this case, the audit corporation may not appoint a person set forth in item (ii) of the following paragraph.

(3) None of the persons set forth below can be an accounting auditor:

(i) a person who may not audit Financial Statements pursuant to the provisions of the Certified Public Accountant Act;

(ii) a person who receives remuneration on an ongoing basis for performing services other than the services of a certified public accountant or an audit corporation from the Subsidiary of the Incorporated Administrative Agency to be audited or officers thereof, or a spouse of such person; or

(iii) an audit corporation, half or more of whose members fall into the category of person set forth in the preceding item.

(Term of Office of Accounting Auditor)

Article 42 The term of office of an accounting auditor is until the Date of Approval of Financial Statements for the first business year that ends after the date of the appointment.

(Dismissal of Accounting Auditor)

Article 43 If an accounting auditor falls under any of the following items, the competent minister may dismiss the accounting auditor:

(i) the accounting auditor has violated the obligations of his/her duties or has been negligent in the performance thereof;;

(ii) the accounting auditor has engaged in conduct unbecoming of an accounting auditor; or

(iii) due to a mental or physical disorder, the accounting auditor is unable to perform his/her duties or is incapable of bearing the demands of his/her duties.

(Disposal of Profits and Losses)

Article 44 (1) For each business year, an Incorporated Administrative Agency must, when profits have accrued as a result of the calculation of profits and losses, offset any losses carried forward from the preceding business year, and if there is a remainder, it must record the amount of the remainder as reserve funds; provided, however, that this does not apply if it appropriates the amount of the remainder for the use referred to in paragraph (3) pursuant to the provisions of said paragraph.

(2) For each business year, an Incorporated Administrative Agency must, when losses have occurred as a result of the calculation of profits and losses, record the losses by reducing the amount of the reserve funds under the provisions of the preceding paragraph, and if there is a shortfall, it must dispose of the amount of the shortfall as a loss carried forward.

(3) When there is a remainder provided for in paragraph (1), an Agency Managed under the Medium-term Objectives and a National Research and Development Agency may appropriate all or a part of the amount of the remainder for the use of a surplus referred to in Article 30, paragraph (2), item (vii) for a Medium-term Plan (meaning a Medium-term Plan referred to in Article 30, paragraph (1) as authorized under said paragraph (or a revised plan if the agency obtains authorization for revision under the provisions of the second sentence of said paragraph); the same applies hereinafter) or the use of a surplus referred to in Article 35-5, paragraph (2), item (vii) for a Medium to Long-term Plan (meaning a Medium to Long-term Plan referred to in Article 35-5, paragraph (1) as authorized under said paragraph (or a revised plan if the agency obtains authorization for revision under the provisions of the second sentence of said paragraph); the same applies hereinafter), by obtaining the approval of the competent minister.

(4) The disposal of reserve funds under the provisions of paragraph (1) is specified by the relevant Individual Law.

(Borrowings)

Article 45 (1) An Incorporated Administrative Agency may make short-term borrowings within the scope of the maximum amount of short-term borrowings referred to in Article 30, paragraph (2), item (iv) for the Medium-term Plan of an Agency Managed under the Medium-term Objectives, in Article 35-5, paragraph (2), item (iv) for the Medium to Long-term Plan of a National Research and Development Agency, or in Article 35-10, paragraph (3), item (iv) for the Business Plan (meaning a Business Plan referred to in Article 35-10, paragraph (1) authorized under said paragraph (or a revised plan if the agency obtains authorization for revision under the provisions of the second sentence of said paragraph); the same applies hereinafter) of an Agency Engaged in Administrative Execution; provided, however, that an Incorporated Administrative Agency may make short-term borrowings exceeding said maximum amount if it obtains the authorization from the competent minister regarding the presence of unavoidable circumstances.

(2) Short-term borrowings under the preceding paragraph must be reimbursed within the relevant business year; provided, however, that, when the short-term borrowings cannot be reimbursed due to a shortage of funds, only the amount that cannot be reimbursed may be refinanced by obtaining the authorization of the competent minister.

(3) The short-term borrowings that have been refinanced pursuant to the provisions of the proviso to the preceding paragraph must be reimbursed within one year.

(4) An Incorporated Administrative Agency may not make long-term borrowings or issue bonds, unless otherwise provided for by the relevant Individual Law.

(Delivery of Financial Resources)

Article 46 (1) The government may, within the scope of the budget, deliver to an Incorporated Administrative Agency an amount of money equivalent to all or part of the necessary amount to be appropriated to the financial resources for its operations.

(2) For the purpose of the administration of the operations, an Incorporated Administrative Agency must endeavor to use the funds under the provisions of the preceding paragraph in an appropriate and efficient manner in accordance with the provisions of laws and regulations as well as the Medium-term Plan of an Agency Managed under the Medium-term Objectives, the Medium to Long-term Plan of a National Research and Development Agency or the Business Plan of an Agency Engaged in Administrative Execution, bearing in mind that said funds are procured from tax collected from citizens and other invaluable financial resources.

(Payment to National Treasury in relation to Unnecessary Property)

Article 46-2 (1) An Incorporated Administrative Agency is to make payment to the national treasury in relation to any Unnecessary Property pertaining to contribution or expenditure from the government (excluding any property which is in the form of contribution of money)(hereinafter referred to as "Unnecessary Property Pertaining to Government Contribution, etc." in this paragraph) with an authorization of the competent minister, without delay; provided, however, that the Incorporated Administrative Agency is not required to obtain an authorization of the competent minister if it specifies the plan referred to in Article 30, paragraph (2), item (v) for a Medium-term Plan of an Agency Managed under the Medium-term Objectives, the plan referred to in Article 35-5, paragraph (2), item (v) for a Medium to Long-term Plan of a National Research and Development Agency, or the plan referred to in Article 35-10, paragraph (3), item (v) for a Business Plan of an Agency Engaged in Administrative Execution, and it makes payment to the national treasury in relation to the Unnecessary Property Pertaining to Government Contribution, etc. in accordance with the relevant plan.

(2) An Incorporated Administrative Agency may make payment to the national treasury in the amount calculated in accordance with the standards specified by the competent minister to the extent of the amount of income derived from the transfer of Unnecessary Property Pertaining to Government Contribution, etc. (excluding money; hereinafter the same applies in this paragraph and the following paragraph) with the authorization of the competent minister (if there is any amount exceeding the book value of said property (hereinafter referred to as "Amount Exceeding the Book Value" in the following paragraph), such amount is excluded), in lieu of making payment to the national treasury in relation to the Unnecessary Property Pertaining to Government Contribution, etc. pursuant to the provisions of the preceding paragraph; provided, however, that the Incorporated Administrative Agency is not required to obtain an authorization of the competent minister if it specifies the plan referred to in Article 30, paragraph (2), item (v) for a Medium-term Plan of an Agency Managed under the Medium-term Objectives, the plan referred to in Article 35-5, paragraph (2), item (v) for a Medium to Long-term Plan of a National Research and Development Agency, or the plan referred to in Article 35-10, paragraph (3), item (v) for a Business Plan of an Agency Engaged in Administrative Execution, and it pays said amount to the national treasury in accordance with the relevant plan.

(3) In the case referred to in the preceding paragraph, if there is any Amount Exceeding the Book Value derived from the transfer of Unnecessary Property Pertaining to Government Contribution, etc., an Incorporated Administrative Agency is to pay such amount to the national treasury without delay; provided, however, that this does not apply to the amount authorized if the agency obtains an authorization from the competent minister for the exemption of payment of all or part of said amount.

(4) If an Incorporated Administrative Agency makes payment to the national treasury pursuant to the provisions of paragraph (1) or paragraph (2), and the Unnecessary Property Pertaining to Government Contribution, etc. for which said payment is made pertains to the contribution from the government, the amount specified by the competent minister as the portion pertaining to the Unnecessary Property Pertaining to Government Contribution, etc. for which said payment is made, out of the stated capital of the agency, is to be deemed to have not been contributed by the government to the agency, and the agency is to reduce the amount of its stated capital commensurate with such amount.

(5) In addition to what is provided for in the preceding paragraphs, the matters necessary for the disposal of the Unnecessary Property Pertaining to Government Contribution, etc. are specified by Cabinet Order.

(Return of Contribution from Private Sector, etc. Pertaining to Unnecessary Properties)

Article 46-3 (1) With regard to any Unnecessary Property pertaining to the contribution from non-government parties (hereinafter referred to as "Unnecessary Property Pertaining to Contribution from the Private Sector, etc." in this Article), an Incorporated Administrative Agency must give a notice to the contributor pertaining to said property (hereinafter simply referred to as "Contributor" in this Article) pursuant to the provisions of Ordinance of the Competent Ministry, to the effect that said Contributor is entitled to request return of its equity interest, in all or part, in the amount specified by the competent minister as the amount of contribution pertaining to said property, with an authorization of the competent minister; provided, however, that the Incorporated Administrative Agency is not required to obtain an authorization of the competent minister if the agency specifies the plan referred to in Article 30, paragraph (2), item (v) for a Medium-term Plan of an Agency Managed under the Medium-term Objectives, the plan referred to in Article 35-5, paragraph (2), item (v) for a Medium to Long-term Plan of a National Research and Development Agency, or the plan referred to in Article 35-10, paragraph (3), item (v) for a Business Plan of an Agency Engaged in Administrative Execution, and gives a notice to inform the Contributor of the entitlement to make a request for return in accordance with the relevant plan.

(2) A Contributor may file a request for return of equity interest with an Incorporated Administrative Agency only for the period from the day when the Contributor receives the notice under the provisions of the preceding paragraph to the day when one month elapses from said date.

(3) When an Incorporated Administrative Agency receives a request under the provisions of the preceding paragraph, it must return the equity interest for which the request was made pursuant to the provisions of the preceding paragraph to the Contributor who made such request, in the amount calculated in accordance with the standards specified by the competent minister to the extent of the Unnecessary Property Pertaining to Contribution from the Private Sector, etc. for which the request was made or to the extent of the amount of income derived from the transfer of said property (excluding money; if there is any amount exceeding the book value of said property, such amount is excluded) (if the calculated amount is less than the amount of the requested equity interest, the equity interest in the amount specified by the competent minister out of said equity interest must be returned).

(4) When an Incorporated Administrative Agency returns equity interest pursuant to the provisions of the preceding paragraph, the amount of the stated capital of the agency which corresponds to the returned equity interest is to be deemed to have not been contributed by the Contributor to the agency, and the agency is to reduce its stated capital commensurate with such amount.

(5) If a Contributor fails to make a request for return of equity interest under paragraph (2), or makes a request for the part of the equity interest in relation to the Unnecessary Properties Pertaining to Contribution from the Private Sector, etc. pursuant to the provisions of said paragraph, the Incorporated Administrative Agency does not return the equity interest for which no request for return was made.

(Investment of Surplus Funds)

Article 47 An Incorporated Administrative Agency must not invest the surplus funds that occurred in the course of its operations, except when using such funds by any of the following methods:

(i) acquisition of national government bonds, local government bonds, government guaranteed bonds (meaning bonds for which the government guarantees the redemption of the principal and the payment of the interest) or any other securities designated by the competent minister;

(ii) deposits with a bank or any other financial institution designated by the competent minister; and

(iii) money trusts in a financial institution engaged in the trust business (meaning a financial institution that has been authorized under Article 1, paragraph (1) of the Act on Engagement in Trust Business by a Financial Institution (Act No. 43 of 1943)).

(Limitation on Disposition of Property)

Article 48 When an Incorporated Administrative Agency intends to transfer or provide as collateral any important property, other than Unnecessary Property, which is specified by Ordinance of the Competent Ministry, it must obtain the authorization of the competent minister; provided, however, that this does not apply when the agency specifies the plan referred to in Article 30, paragraph (2), item (vi) for a Medium-term Plan of an Agency Managed under the Medium-term Objectives, the plan referred to in Article 35-5, paragraph (2), item (vi) for a Medium to Long-term Plan of a National Research and Development Agency, or the plan referred to in Article 35-10, paragraph (3), item (vi) for a Business Plan of an Agency Engaged in Administrative Execution, and it transfers said important property or provides it as collateral in accordance with the relevant plan.

(Rules on Accounting)

Article 49 On commencing operations, an Incorporated Administrative Agency must establish the rules on matters concerning accounting and notify the competent minister of such rules. The same applies when it revises such rules.

(Delegation to Ordinance of the Competent Ministry)

Article 50 In addition to what is provided for in this Act and any Cabinet Order based on this Act, the necessary matters concerning the finance and accounting of Incorporated Administrative Agencies are specified by Ordinance of the Competent Ministry.

Chapter V Personnel Management

Section 1 Agency Managed under the Medium-term Objectives and National Research and Development Agency

(Remuneration of Officers)

Article 50-2 (1) The remuneration and retirement allowances (hereinafter referred to as the "Remuneration, etc.") of officers of an Agency Managed under the Medium-term Objectives must take into consideration the performance of the respective officers.

(2) An Agency Managed under the Medium-term Objectives must specify the standards for the payment of the Remuneration, etc. of its officers, and must notify the competent minister of such standards and publicize them. The same applies when it revises such standards.

(3) The standards for the payment of the Remuneration, etc. referred to in the preceding paragraph must be specified by taking into consideration the salaries and retirement allowances (hereinafter referred to as the "Salaries, etc.") of national government employees, the Remuneration, etc. of officers of private enterprises, the results of the operations of the relevant Agency Managed under the Medium-term Objectives, and any other circumstances.

(Prohibition of Concurrent Holding of Positions by Officers)

Article 50-3 While in office, an officer (excluding a part-time officer) of an Agency Managed under the Medium-term Objectives must not serve as an officer of an organization for profit or engage in a business for profit independently, except when the officer obtains the approval of the appointer thereof.

(Restriction on Request for Officers and Employees of Other Agency Managed under the Medium-term Objectives)

Article 50-4 (1) An officer or employee of an Agency Managed under the Medium-term Objectives (excluding a part-time officer or employee; hereinafter referred to as an "Officer or Employee of an Agency Managed under the Medium-term Objectives") must not, for the purpose of seeking a position with a Closely-Related Corporation, etc. for another Officer or Employee of said Agency Managed under the Medium-term Objectives, after separation from the service, or a person who formerly served as an Officer or Employee of said Agency Managed under the Medium-term Objectives, provide said Closely-related Corporation, etc. with information on said other Officer or Employee of said Agency Managed under the Medium-term Objectives or said person who formerly served as an Officer or Employee of said Agency Managed under the Medium-term Objectives, request said Closely-related Corporation, etc. to provide information on said position, or demand or request said Closely-related Corporation, etc. to offer a position to said other Officer or Employee of said Agency Managed under the Medium-term Objectives, after separation from the service, or to said person who formerly served as an Officer or Employee of said Agency Managed under the Medium-term Objectives.

(2) The provisions of the preceding paragraph do not apply in any of the following cases:

(i) when said officer or employee conducts the act in question for the purpose of seeking a position with a Closely-related Corporation, etc. for another Officer or Employee of said Agency Managed under the Medium-term Objectives who is or was engaged in operations specified by Cabinet Order as those which require special consideration for smooth re-employment, such as basic research and operations relating to welfare, or for a person who formerly served as an Officer or Employee of said Agency Managed under the Medium-term Objectives and who was engaged in these operations;

(ii) when said officer or employee conducts the act in question for the purpose of seeking a position with an Agency, etc. Subject to Aggregation of Retirement Allowance for an Officer or Employee Scheduled to Receive an Aggregate Retirement Allowance;

(iii) when said officer or employee conducts the act in question for the purpose of seeking a position with a Closely-related Corporation, etc. for another Officer or Employee of said Agency Managed under the Medium-term Objectives who formerly served as a researcher of a university or any other education and research institution and who was employed as an employee solely engaged in research activities for a fixed term of office (the term must be ten years or shorter);

(iv) when said officer or employee conducts the act in question for the purpose of seeking a position with a Closely-related Corporation, etc. for another Officer or Employee of said Agency Managed under the Medium-term Objectives, who has never assumed a position other than those designated by the competent minister as the position without substantial decision-making authority for the organization of said Agency Managed under the Medium-term Objectives, if it is expected that said other officer or employee will be compelled to leave said agency as a result of the downsizing of the operations or the streamlining of the internal organization of said agency based on the results of the evaluation referred to in Article 32, paragraph (1) (excluding the evaluation of the results of the operations during the Period for the Medium-term Objectives that are expected to be achieved by the end of said period as provided for in item (ii) of said paragraph); or

(v) when said officer or employee conducts the act in question for the purpose of seeking a position with a Closely-related Corporation, etc. for another Officer or Employee of said Agency Managed under the Medium-term Objectives, who is eligible to receive an assistance under the relevant plan for finding new employment after the separation from the service for said agency, if said agency prepares a plan on the measures for assisting Officers or Employees of said Agency Managed under the Medium-term Objectives in finding new employment after the separation from the service so as to implement the measures under the provisions of Article 35, paragraph (1) which are expected to result in compelling its officers or employees in the number not less than the number specified by Cabinet Order, and obtains a certification for such a plan from the competent minister.

(3) The term "Closely-related Corporation, etc." referred to in the preceding two paragraphs means an Enterprise for Profit, etc. (meaning a private enterprise whose purpose is to engage in commerce, industry or financial business or any other business for profit (hereinafter referred to as an "Enterprise for Profit" in this paragraph) and a corporation other than an Enterprise for Profit (excluding the national government, international organizations, local governments, Agencies Engaged in Administrative Execution, and Specified Local Incorporated Administrative Agencies provided for in Article 2, paragraph (2) of the Local Incorporated Administrative Agency Act (Act No.118 of 2003)); the same applies hereinafter), which is specified by Cabinet Order as a juridical person to be in close relationship with the relevant Agency Managed under the Medium-term Objectives in terms of capital relationship, business transactions, etc.

(4) The term "Agency, etc. Subject to Aggregation of Retirement Allowance" referred to in paragraph (2), item (ii) means an Enterprise for Profit, etc. which is specified by the Minister of Internal Affairs and Communications from among those whose operations are closely related to the affairs or businesses of an Agency Managed under the Medium-term Objectives (limited to an Enterprise for Profit, etc. which provides in its rules on retirement allowances (including benefits equivalent thereto) that if an Officer or Employee of an Agency Managed under the Medium-term Objectives becomes an officer or employee of an Enterprise for Profit, etc. at the request of the president of said agency with no interruption between the two periods of service, the length of service as an Officer or Employee of an Agency Managed under the Medium-term Objectives is to be aggregated with the length of service as an officer or employee of said Enterprise for Profit, etc.).

(5) The term "Officer or Employee Scheduled to Receive an Aggregate Retirement Allowance" referred to in paragraph (2), item (ii) means an Officer or Employee of an Agency Managed under the Medium-term Objectives who, at the request of said Agency Managed under the Medium-term Objectives, is to retire to become an officer or employee of an Agency, etc. Subject to Aggregation of Retirement Allowance (meaning an Agency, etc. Subject to Aggregation of Retirement Allowance provided for in the preceding paragraph; the same applies hereinafter) with no interruption between the two periods of service, and is expected to be reemployed by said Agency Managed under the Medium-term Objective after working for said Agency, etc. Subject to Aggregation of Retirement Allowance with no interruption between the two periods of service, unless there are special circumstances, and who is specified by Cabinet Order.

(6) In addition to what is provided for in the paragraph (1), an officer or employee of an Agency Managed under the Medium-term Objectives must not demand or request an Enterprise for Profit, etc. to offer a position with said enterprise, etc. to another officer or employee of said Agency Managed under the Medium-term Objectives, after the separation from the service, or to a person who formerly served as an officer or employee of said Agency Managed under the Medium-term Objectives, in relation to engaging in or having engaged in an act, in the course of duties thereof, which violates this Act, the relevant Individual Law or other laws and regulations, or the statement of operational procedures, rules provided for in Article 49 or any other regulations established by said agency (hereinafter referred to as "Violation of Laws and Regulations, etc."), or in relation to engaging or having engaged another officer or employee of said Agency Managed under the Medium-term Objectives in committing a Violation of Laws and Regulations, etc.

(Restriction on Job-Seeking Involving Violation of Laws and Regulations, etc. While in Office)

Article 50-5 An officer or employee of an Agency Managed under the Medium-term Objectives must not demand an Enterprise for Profit, etc. to offer a position with said Enterprise for Profit, etc. or promise to an Enterprise for Profit, etc. to assume a position with said Enterprise for Profit, etc. after the separation from the service, in relation to engaging or having engaged in any Violation of Laws and Regulations, etc. or in relation to engaging or having engaged another officer or employee of said Agency Managed under the Medium-term Objectives in committing a Violation of Laws and Regulations, etc.

(Notification of Request, etc. for Violation of Laws and Regulations, etc. by Reemployed Officers or Employees)

Article 50-6 If an officer or employee of an Agency Managed under the Medium-term Objectives receives a demand or request as set forth in the following items, the officer or employee must notify the president of said Agency Managed under the Medium-term Objectives to that effect pursuant to the provisions of Cabinet Order:

(i) a demand or request for a Violation of Laws and Regulations, etc. made within the period of two years after the separation from the service by a person who formerly served as an Officer or Employee of an Agency Managed under the Medium-term Objectives and who has assumed the position with an Enterprise for Profit, etc. after separation from the service (hereinafter referred to as a "Reemployed Officer or Employee" in this Article) to an officer or employee who belongs to an organization specified by Ordinance of the Competent Ministry as an internal organization of said Agency Managed under the Medium-term Objectives to which said Reemployed Officer or Employee had belonged within five years before the separation from the service, where such demand or request relates to a sale and purchase contract, lease contract, contract for work or any other contract concluded between said Agency Managed under the Medium-term Objectives and said Enterprise for Profit, etc., or to the affairs concerning the disposition provided for in Article 2, item (ii) of the Administrative Procedure Act (Act No. 88 of 1993) and rendered to said Enterprise for Profit, etc. (limited to those pertaining to the operations of said Agency Managed under the Medium-term Objectives; referred to as "Contracts Handling Affairs, etc." in the following item), which fall within the scope of duties of said Reemployed Officer or Employee within the period of five years before the separation from the service;

(ii) in addition to what is set forth in the preceding item, a demand or request for a Violation of Laws and Regulations, etc. made within the period of two years after the separation from the service by a Reemployed Officer or Employee who had assumed the position of an officer or a position specified by Ordinance of the Competent Ministry as a managerial or supervisory position of said Agency Managed under the Medium-term Objectives to an officer or employee of said Agency Managed under the Medium-term Objectives, in relation to the Contracts Handling Affairs, etc.; and

(iii) in addition to what is set forth in the preceding two items, a demand or request for a Violation of Laws and Regulations, etc. made by a Reemployed Officer or Employee, in relation to a contract between said Agency Managed under the Medium-term Objectives and an Enterprise for Profit, etc. (limited to an enterprise, etc. with which said Reemployed Officer or Employee presently holds a position) for which said Reemployed Officer or Employee made the decision as to the conclusion thereof while in office in said Agency Managed under the Medium-term Objectives, or in relation to a disposition provided for in Article 2, item (ii) of the Administrative Procedure Act and rendered from said agency to said enterprise, etc. for which said Reemployed Officer or Employee made the decision.

(Notification to President of Agency Managed under the Medium-term Objectives)

Article 50-7 (1) If an Officer and Employee of an Agency Managed under the Medium-term Objectives (excluding an Officer or Employee Scheduled to Receive an Aggregate Retirement Allowance provided for in Article 50-4, paragraph (5)) makes a promise to assume a position with an Enterprise for Profit, etc. after the separation from the service, said officer or employee must promptly notify the president of said Agency Managed under the Medium-term Objectives of the matters specified by Cabinet Order, pursuant to the provisions of Cabinet Order.

(2) The president of the Agency Managed under the Medium-term Objectives who received the notification under the provisions of the preceding paragraph is to take personnel management measures from the standpoint of securing fairness in the operations of said Agency Managed under the Medium-term Objectives, so as to ensure that the duties of said officer or employee who made the notification will be performed in a proper manner.

(Measures to Be Taken by President of Agency Managed under Medium-term Objectives)

Article 50-8 (1) If the president of an Agency Managed under the Medium-term Objectives finds that any officer or employee of said Agency Managed under the Medium-term Objectives has committed an act in violation of any of the provisions of Article 50-4 through the preceding Article, the president must take supervisory measures against said officer or employee and measures necessary to ensure the compliance of said Agency Managed under the Medium-term Objectives with these provisions.

(2) If the president of an Agency Managed under the Medium-term Objectives receives the notification under the provisions of Article 50-6 and finds any evidence for a demand or request as mentioned in the notification, the president must take measures necessary to ensure the prevention of the occurrence of a Violation of Laws and Regulations, etc. pertaining to said demand or request.

(3) For each year, the president of an Agency Managed under the Medium-term Objectives must prepare a report on the notification under the provisions of Article 50-6 and the details of the measures referred to in the preceding two paragraphs and submit it to the competent minister pursuant to the provisions of Cabinet Order.

(Delegation to Cabinet Order)

Article 50-9 The procedures necessary for the implementation of the provisions of Article 50-4 through the preceding Article are specified by Cabinet Order.

(Salaries of Employees)

Article 50-10 (1) The salaries of employees of an Agency Managed under the Medium-term Objectives must take into consideration the merit of the performance of the duties of the respective employees.

(2) An Agency Managed under the Medium-term Objectives must specify the standards for the payment of the Salaries, etc. of its employees, and must notify the competent minister of such standards and publicize them. The same applies when the agency revises such standards.

(3) The standards for the payment of the Salaries, etc. referred to in the preceding paragraph must be determined by taking into consideration the Salaries, etc. of national government employees to whom the Act on Remuneration of Officials in the Regular Service (Act No. 95 of 1950) applies, the Salaries, etc. of employees of private enterprises, the results of the operations of the relevant Agency Managed under the Medium-term Objectives, the nature of duties of employees, the employment status of employees, and any other circumstances.

(Application, Mutatis Mutandis, to National Research and Development Agency)

Article 50-11 The provisions of Article 50-2 through the preceding Article apply mutatis mutandis to a National Research and Development Agency. In this case, the phrase "Article 32, paragraph (1)" in Article 50-4, paragraph (2), item (iv) is deemed to be replaced with "Article 35-6, paragraph (1)," and the phrase "Period for the Medium-term Objectives" is deemed to be replaced with "Period for the Medium to Long-term Objectives," and the phrase "Article 35, paragraph (1)" in item (v) of said paragraph is deemed to be replaced with "Article 35-7, paragraph (1)."

Section 2 Agency Engaged in Administrative Execution

(Status of Officers and Employees)

Article 51 The officers and employees of an Agency Engaged in Administrative Execution are national government employees.

(Remuneration, etc. of Officers)

Article 52 (1) The Remuneration, etc. of officers of an Agency Engaged in Administrative Execution must take into consideration the performance of the respective officers.

(2) An Agency Engaged in Administrative Execution must specify the standards for the payment of the Remuneration, etc. of its officers, and must notify the competent minister of such standards and publicize them. The same applies when the agency revises such standards.

(3) The standards for the payment of the Remuneration, etc. referred to in the preceding paragraph must be specified by making reference to the Salaries, etc. of national government employees, and by taking into consideration the Remuneration, etc. of officers of private enterprises, the results of the operations of the relevant Agency Engaged in Administrative Execution, the estimate of personnel expenses referred to in Article 35-10, paragraph (3), item (iii) for the Business Plan, and any other circumstances.

(Services of Officers)

Article 53 (1) An officer of an Agency Engaged in Administrative Execution (hereinafter simply referred to as an "Officer" from this Article through Article 56 and Article 69) must not divulge any secret which the Officer has come to know in the course of his/her duties. The same applies after said Officer has retired.

(2) The provisions of the preceding paragraph do not apply to information required for the investigation at the Reemployment Surveillance Commission delegated pursuant to the provisions of Article 18-4 of the National Public Service Act (Act No. 120 of 1947) as applied mutatis mutandis pursuant to paragraph (1) of the following Article, and pursuant to the provisions of paragraph (6) of the following Article.

(3) If an Officer is requested by the Reemployment Surveillance Commission to make a statement or to testify for the purpose of the investigation referred to in the preceding paragraph, the Officer must not refuse such request without reasonable grounds.

(4) While in office, an Officer must not become an officer of a political party or any other political organization, or actively engage in a political campaign.

(5) While in office, an Officer (excluding a part-time Officer; the same applies in the following Article) must not engage in any other service for remuneration, operate a business for profit, or carry out any other operations for monetary profit, except when the Officer obtains the approval of the appointer.

(Retirement Management of Officers)

Article 54 (1) The provisions of Article 18-2, paragraph (1), Article 18-3, paragraph (1), Article 18-4, Article 18-5, paragraph (1), Article 18-6, Article 106-2 (excluding paragraph (2), item (iii)), Article 106-3, Article 106-4, and Article 106-16 through Article 106-27 of the National Public Service Act (including penal provisions pertaining to these provisions), as well as the provisions of Article 109 (limited to the portion pertaining to items (xiv) to (xviii)) and Article 112 of said Act apply mutatis mutandis to an Officer or a former Officer. In this case: in Article 18-2, paragraph (1) of said Act, the phrase "affairs relating to the government positions and categories for a recruiting examination and human resources to be secured by way of a recruiting examination; affairs relating to the ability to perform standards duties, basic policy on initial appointment and promotion, etc., special rules on recruitment, etc. of executive officials and education course for executive official candidates (including affairs necessary for the implementation of the Basic Standard provided for in Article 33, paragraph (1), which relate to the assurance of education and utilization of excellent human resources to respond to the change in demand administrative services); affairs relating to the method of determination of salary schedules of officials to whom the Designated Service Salary Schedule under Article 6-2, paragraph (1) of the Act on Remuneration of Officials in the Regular Service apply, and the determination and amendment of the fixed number of service grades under Article 8, paragraph (1) of said Act; and affairs relating to personnel evaluation of officials (meaning the evaluation of official's work performance after understanding their abilities and achievements shown in the course of duty in order to form a basis for appointment, remuneration, status, and other personnel management; the same applies hereinafter), education, efficiency, welfare, service discipline, and retirement management, etc. of officials (except those particulars under the jurisdiction of the National Personnel Authority, pursuant to the provisions of Article 3, paragraph (2))" is deemed to be replaced with "affairs relating to retirement management of officers"; in Article 18-3, paragraph (1) and Article 106-16 in said Act, the phrase "Article 106-2 to Article 106-4" is deemed to be replaced with "Article 106-2 through Article 106-4 as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-2, paragraphs (2) and (4), Article 106-3, paragraph (2) and Article 106-4, paragraph (2) of said Act, the phrase "the preceding paragraph" is deemed to be replaced with "the preceding paragraph as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-2, paragraph (2), item (ii) and paragraph (4), Article 106-3, paragraph (2), item (i), Article 106-4, paragraph (1) and Article 106-23, paragraph (1) of said Act, the phrase "official scheduled to receive an aggregate retirement allowance" is deemed to be replaced with "officer scheduled to receive an aggregate retirement allowance"; in Article 106-2, paragraph (2), item (ii) of said Act, the phrase "including cases where the purpose is to have an officer scheduled to receive an aggregate retirement allowance provided for in paragraph (4) as applied mutatis mutandis by replacing the terms under Article 54-2, paragraph (1) of the Act on General Rules for Incorporated Administrative Agency, assume a position in the aggregate retirement allowance corporation provided for in the following paragraph as applied mutatis mutandis pursuant to the provisions of paragraph (1) of the same Article" is deemed to be replaced with "including the cases where the purpose is to have an employee scheduled to receive an aggregate retirement allowance provided for in paragraph (4) assume a position in the Agency, etc. Subject to Aggregation of Retirement Allowance provided for in the following paragraph"; in Article 106-2, paragraph (3) and Article 106-24, paragraph (2) of said Act, the phrase "item (ii) of the preceding paragraph" is deemed to be replaced with "item (ii) of the preceding paragraph, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-2, paragraph (4) of said Act, the phrase "item (ii) of paragraph (2)" is deemed to be replaced with "paragraph (2), item (ii), as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies," and the phrase "appointed by means of selection" is deemed to be replaced with "appointed"; in Article 106-3, paragraph (2), item (i) of said Act, the phrase "paragraph (4) of the preceding Article" is deemed to be replaced with "paragraph (4) of the preceding Article, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-4, paragraph (3) of said Act, the phrase "the preceding two paragraphs" is deemed to be replaced with "the preceding two paragraphs, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-4, paragraph (4) of said Act, the phrase "the preceding three paragraphs" is deemed to be replaced with "the preceding three paragraphs, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-4, paragraph (5) of said Act, the phrase "the preceding paragraphs" is deemed to be replaced with "the preceding paragraphs, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-22 of said Act, the term "Article 106-5" is deemed to be replaced with "Article 106-16 as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 106-23, paragraph (3) of said Act, the phrase "promptly notify the particulars pertaining to the said notification to the Prime Minister, when the official who submitted the said notification is an official holding a managerial or supervisory government position (hereinafter referred to as a "managerial official") specified by Cabinet Order" is deemed to be replaced with "promptly notify the Prime Minister of the particulars pertaining to the said notification"; in Article 106-24 of said Act, the phrase "paragraph (1) of the preceding Article" is deemed to be replaced with "paragraph (1) of the preceding Article as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 109, item (xviii) of said Act, the phrase "a demand or request (including a demand or request listed in item (xiv) through the preceding item, as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agency) from reemployed officials listed in item (xiv) through the preceding item" is deemed to be replaced with "a demand or request (including a demand or request listed in item (xiv) through the preceding item) from a Reemployed Officer and Employee set forth in item (xiv) to the preceding item as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agency"; in Article 112, item (i) of said Act, the phrase "Article 106-2, paragraph (1)" is deemed to be replaced with "Article 106-2, paragraph (1) as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 113, item (i) of said Act, the phrase "Article 106-4, paragraphs (1) to (4)" is deemed to be replaced with "Article 106-4, paragraphs (1) through (4) as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; in Article 113, item (ii) of said Act, the phrase "Article 106-24, paragraph (1)" is deemed to be replaced with "Article 106-24, paragraph (1) as applied mutatis mutandis pursuant to Article 54, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies"; any other necessary technical changes in interpretation are specified by Cabinet Order.

(2) If it is necessary in relation to the investigation referred to in Article 18-3, paragraph (1) of the National Public Service Act as applied mutatis mutandis pursuant to the preceding paragraph, the Prime Minister may summon a witness, or request the submission of documents as may be considered relevant to the matter to be investigated or copies thereof.

(3) When the Prime Minister finds it necessary in relation to the investigation referred to in Article 18-3, paragraph (1) of the National Public Service Act as applied mutatis mutandis pursuant to paragraph (1), the Prime Minister may summon an Officer or a former Officer who is under investigation to appear and question said Officer, or may enter the place where said Officer works (including places where said Officer has worked before as an Officer), inspect books, documents and other objects as necessary, or question the persons concerned.

(4) A person who conducts an on-site inspection pursuant to the provisions of the preceding paragraph must carry an identification card and present it to the persons concerned.

(5) The authority to conduct an on-site inspection pursuant to the provisions of paragraph (3) must not be construed as being granted for criminal investigation purposes.

(6) The Prime Minister delegates the authority under the provisions of paragraphs (2) and (3) to the Reemployment Surveillance Commission.

(Accident Compensation for Officers)

Article 55 Compensation for an accident in the line of public duty or a commuting accident of an Officer or welfare services for an Officer who was involved in an accident in the line of public duty or a commuting accident is governed by the rules for an employee of an Agency Engaged in Administrative Execution.

(Exclusion of Officers from Application of the Industrial Accident Compensation Insurance Act)

Article 56 The provisions of the Industrial Accident Compensation Insurance Act (Act No. 50 of 1947) do not apply to Officers.

(Salaries of Employees)

Article 57 (1) The salaries of employees of an Agency Engaged in Administrative Execution must be in accordance with the contents of their duties and the level of their responsibility and must take into consideration the efficiency demonstrated by the respective employees.

(2) An Agency Engaged in Administrative Execution must specify the standards for the payment of salaries of its employees, and must notify the competent minister of such standards and publicize them. The same applies when the agency revises such standards.

(3) The standards for the payment of salaries referred to in the preceding paragraph must be specified by making reference to the salaries of national government employees to whom the Act on Remuneration of Officials in the Regular Service applies, and by taking into consideration the salaries of employees of private enterprises, the results of the operations of the relevant Agency Engaged in Administrative Execution, the estimate of personnel expenses referred to in Article 35-10, paragraph (3), item (iii) for the Business Plan, and any other circumstances.

(Working Hours of Employees)

Article 58 (1) An Agency Engaged in Administrative Execution must provide rules on the working hours, recesses, holidays and leave of its employees, and must notify the competent minister of such rules and publicize them. The same applies when the agency revises such rules.

(2) The rules referred to in the preceding paragraph must take into consideration the working conditions of national government employees to whom the Act on Working Hours, Leave, etc. for National Public Officers Engaged in Regular Services (Act No. 33 of 1994) applies, and any other circumstances.

(Exclusion of Employees from Application of Other Laws)

Article 59 (1) The following provisions of the laws do not apply to employees of an Agency Engaged in Administrative Execution (hereinafter simply referred to as "Employees" in this Article):

(i) the provisions of the Industrial Accident Compensation Insurance Act;

(ii) the provisions of Article 18, Article 28 (excluding the first sentence of paragraph (1)), Articles 62 through 70, Article 70-3, paragraph (2), Article 70-4, paragraph (2), Article 75, paragraph (2) and Article 106 of the National Public Service Act;

(iii) the provisions of the Act on Special Allowances for National Public Officers Serving in Cold Districts (Act No. 200 of 1949);

(iv) the provisions of the Act on Remuneration of Officials in the Regular Service;

(v) deleted;

(vi) the provisions of Article 5, paragraph (2), Article 8, Article 9, Articles 16 through 19, and Articles 24 through 26 of the Act on Childcare Leave, etc. of National Public Officers (Act No. 109 of 1991);

(vii) the provisions of the Act on Working Hours, Leave, etc. for National Public Officers Engaged in Regular Services;

(viii) the provisions of Articles 7 through 9 of the Act on Special Measures of Employment and Remuneration of Officials with Fixed Term of Office in the Regular Service (Act No. 125 of 2000);

(ix) the provisions of Article 5, paragraph (2) and Article 7 of the Act on National Public Officers' Leave for Self-Development, etc. (Act No. 45 of 2007); and

(x) the provisions of Article 5, paragraph (2) and Article 8 of the Act on Leave of National Government Employees Relocating due to Job Transfer of Spouses (Act No. 78 of 2013).

(2) With regard to the application of the National Public Service Act to Employees, the term "government" in Article 2, paragraph (6) of said Act is deemed to be replaced with "Agency Engaged in Administrative Execution provided for in Article 2, paragraph (4) of the Act on General Rules for Incorporated Administrative Agencies (hereinafter referred to as an 'Agency Engaged in Administrative Execution)," the phrase "the government or governmental institutions" in paragraph (7) of said Article is deemed to be replaced with "the Agency Engaged in Administrative Execution," the term "the Prime Minister" in Article 34, paragraph (1), item (v) of said Act is deemed to be replaced with "the Agency Engaged in Administrative Execution," the phrase "specified by Cabinet Order" in paragraph (2) of said Article is deemed to be replaced with "specified and publicized by an Agency Engaged in Administrative Execution," the phrase "may effect, with the approval of the National Personnel Authority" in Article 60, paragraph (1) of said Act is deemed to be replaced with "may effect," the phrase "may, with the approval of the National Personnel Authority" in said paragraph is deemed to be replaced with "may," the phrase "the head of the government agency employing that official" in Article 70-3, paragraph (1) of said Act is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution for which said employee works," the phrase "the head of the government agency employing that official" in Article 70-4, paragraph (1) of said Act is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution for which said employee works," the term "the administrative organization" in Article 78, item (iv) of said Act is deemed to be replaced with "the organization," the phrase "a law on remuneration" in Article 80, paragraph (4) of said Act is deemed to be replaced with "the standards for the payment of salaries provided for in Article 57, paragraph (2) of the Act on General Rules for Incorporated Administrative Agencies," the phrase "by the rules of the National Personnel Authority" in the items of Article 81-2, paragraph (2) of said Act is deemed to be replaced with "by the president of the Agency Engaged in Administrative Execution," the phrase "one year, with the approval of the National Personnel Authority" in Article 81-3, paragraph (2) of said Act is deemed to be replaced with "one year," the phrase "the head of the government agency employing him/her" in Article 100, paragraph (2) of said Act is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution for which said employee works," the phrase "the head of the government agency having jurisdiction over" in said paragraph is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution," the term "the government" in Article 101, paragraph (1) of said Act is deemed to be replaced with "the Agency Engaged in Administrative Execution for which said employee works," the term "government agencies" in paragraph (2) of said Act is deemed to be replaced with "Agency Engaged in Administrative Execution," the phrase "the head of the government agency employing that official" in Article 103, paragraph (2) of the Act is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution for which said employee works," and the phrase "the Prime Minister and the head of the government agency employing that official" in Article 104 of said Act is deemed to be replaced with "the president of the Agency Engaged in Administrative Execution for which said employee works."

(3) With regard to the application of the provisions of Article 5 and Article 6, paragraph (3) of the Act on Treatment, etc. of National Public Officers Engaged in Regular Services Dispatched to International Organizations, etc. (Act No. 117 of 1970), the phrase "no more than one hundred percent of the salary, dependency allowance, district allowance, wide-area transfer allowance, researcher adjustment allowance, housing allowance and term-end allowance" in Article 5, paragraph (1) of said Act is deemed to be replaced with "salary," the phrase "rules of the National Personnel Authority (in the case where the dispatched official is subject to the application of the Act on the Salaries of Public Prosecutors (Act No. 76 of 1948), the rules provided for in Article 3, paragraph (1) of said Act" in paragraph (2) of said Article is deemed to be replaced with "the standards on the payment of salaries provided for in Article 57, paragraph (2) of the Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999)," and the term "the State" in Article 6, paragraph (3) of said Act is deemed to be replaced with "an Agency Engaged in Administrative Execution provided for in Article 2, paragraph (4) of the Act on General Rules for Incorporated Administrative Agencies," and the term "said Act" is deemed to be replaced with "the National Public Officers' Accident Compensation Act."

(4) With regard to the application of the provisions of Article 3, paragraph (1), Article 12, paragraph (1), Article 15 and Article 22 of the Act on Childcare Leave, etc. of National Public Officers: in the proviso to Article 3, paragraph (1) of said Act, the phrase "the leave to be given in cases specified by rules of the National Personnel Authority such as the case where it is appropriate that an employee is absent from work due to childbirth, among the special leave provided for in Article 19 of the Act on Working Hours," is deemed to be replaced with "the leave for childbirth of an employee, among the types of leave specified by the rules under the provisions of Article 58, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999)," the phrase "the period specified by rules of the National Personnel Authority pursuant to the provisions of said Article" is deemed to be replaced with "the period specified by the rules," the phrase "within the period specified by rules of the National Personnel Authority" is deemed to be replaced with "within the period specified by the rules," the phrase "said leave, or the leave specified by rules of the National Personnel Authority as being equivalent to said leave pursuant to the provisions of Article 23 of the Act on Working Hours" is deemed to be replaced with "said leave"; in Article 12, paragraph (1) of said Act, the phrase "the working arrangement provided for in any of the following items (in the case of an employee subject to the application of the provisions of Article 7, paragraph (1) of the Act on Working Hours, the working arrangement set forth in item (v))" is deemed to be replaced with "the working arrangement specified by the president of the Agency Engaged in Administrative Execution provided for in Article 2, paragraph (4) of the Act on General Rules for Incorporated Administrative Agencies so that the number of working hours would be within a range between the number of hours obtained by the sum of One-Fifth of the Working Hours (meaning the number of hours calculated by multiplying said Employee's regular working hours per week (hereinafter referred to as "Weekly Working Hours" in this paragraph) by one-fifth and Rounding-up (meaning rounding-up of a fraction less than the minimum unit of five minutes; hereinafter the same applies in this paragraph); the same applies in Article 15), multiplied by two, and One-Tenth of the Working Hours (meaning the number of hours calculated by multiplying the Weekly Working Hours by one-tenth and Rounding-up; the same applies in said Article), and the number of hours obtained by multiplying One-Eighth of the Working Hours (meaning the number of hours calculated by multiplying the Weekly Working Hours by one-eighth and making a Round-up) by five"; in Article 15 of said Act, the phrase "within the range between 19 hours 25 minutes to 19 hours 35 minutes" is deemed to be replaced with "within the range between the number of hours obtained by the sum of One-Fifth of the Working Hours multiplied by two and One-Tenth of the Working Hours and the number of hours obtained by multiplying One-Tenth of the Working Hours by five"; and in Article 22 of said Act, the phrase "from Article 15 to the preceding Article" is deemed to be replaced with "Article 15 and the preceding two Articles."

(5) With regard to the application of the provisions of Article 12, paragraph (3), item (iv) and Article 39, paragraph (8) of the Labor Standards Act (Act No. 49 of 1947) to Employees, the phrase "Article 2, item (i) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of 1991)" in Article 12, paragraph (3), item (iv) of said Act is deemed to be replaced with "Article 3, paragraph (1) of the Act on Childcare Leave, etc. of National Public Officers (Act No. 109 of 1991)," the phrase "item (ii) of said Article" in said item is deemed to be replaced with "Article 2, item (ii) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of 1991)," the phrase "Article 2, item (i) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave" in Article 39, paragraph (8) of said Act is deemed to be replaced with "Article 3, paragraph (1) of the Act on Childcare Leave, etc. of National Public Officers," and the phrase "item (ii) of said Article" in said paragraph is deemed to be replaced with "Article 2, item (ii) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave."

(6) With regard to the application of the provisions of Article 74, paragraph (4) of the Mariners Act (Act No. 100 of 1947) to Employees, the phrase "Article 2, item (i) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of 1991)" in said paragraph is deemed to be replaced with "Article 3, paragraph (1) of the Act on Childcare Leave, etc. of National Public Officers (Act No. 109 of 1991)," and the phrase "item (ii) of said Article" in said paragraph is deemed to be replaced with "Article 2, item (ii) of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of 1991)."

(Report to the Diet)

Article 60 (1) For each business year, an Agency Engaged in Administrative Execution must report the number of its employees who are required to engage in full-time service (including employees who are not required to engage in full-time service and who are specified by Cabinet Order, such as those who have received a disposition of administrative leave or suspension from duty under the provisions of Article 79 or Article 82 of the National Public Service Act and those who are exempted from an obligation to give undivided attention to their duty pursuant to the provisions of any laws or regulations; referred to as "Full-time Employees" in the following paragraph) to the competent minister, pursuant to the provisions of Cabinet Order.

(2) For each year, the government must report the number of Full-time Employees of an Agency Engaged in Administrative Execution to the Diet.

(3) An Agency Engaged in Administrative Execution must notify the Prime Minister of the matters specified by the Prime Minister as being necessary for the enforcement of the provisions of Chapter III, Section 8 and Chapter IV (including the cases where applied mutatis mutandis pursuant to Article 54, paragraph (1)) of the National Public Service Act, by the day specified by the Prime Minister.

Article 61 Deleted

Article 62 Deleted

Article 63 Deleted

Chapter VI Miscellaneous Provisions

(Report and Inspection)

(1) When the competent minister finds it to be necessary for the enforcement of this Act, the minister may have an Incorporated Administrative Agency report on the status of its operations, assets and liabilities or have employees of the ministry enter the office of an Incorporated Administrative Agency and inspect the status of its operations or books, documents and other necessary objects. (1) (1) When the competent minister finds it to be necessary for the enforcement of this Act, the minister may have an Incorporated Administrative Agency report on the status of its operations, assets and liabilities or have employees of the ministry enter the office of an Incorporated Administrative Agency and inspect the status of its operations or books, documents and other necessary objects.

(2) When an employee of the competent ministry conducts an on-site inspection pursuant to the provisions of the preceding paragraph, the employee must carry an identification card and present it to the persons concerned.

(3) The authority to conduct an on-site inspection pursuant to the provisions of paragraph (1) must not be construed as being granted for criminal investigation purposes.

Article 65 Deleted

(Dissolution)

Article 66 The rules for the dissolution of an Incorporated Administrative Agency are provided separately by law.

(Consultation with Minister of Finance)

Article 67 The competent minister must consult with the Minister of Finance in any of the following cases:

(i) when the competent minister intends to set or revise Medium-term Objectives pursuant to the provisions of Article 29, paragraph (1);

(ii) when the competent minister intends to set or revise Medium to Long-term Objectives pursuant to the provisions of Article 35-4, paragraph (1);

(iii) when the competent minister intends to set or revise Annual Objectives pursuant to the provisions of Article 35-9, paragraph (1);

(iv) when the competent minister intends to grant an authorization under the provisions of Article 30, paragraph (1), Article 35-5, paragraph (1), Article 35-10, paragraph (1), the proviso to Article 45, paragraph (1), the proviso to Article 45, paragraph (2), or Article 48;

(v) when the competent minister intends to grant an approval under the provisions of Article 44, paragraph (3);

(vi) when the competent minister intends to grant an authorization under the provisions of Article 46-2, paragraph (1), paragraph (2), the proviso to paragraph (3) of said Article, or Article 46-3, paragraph (1); and

(vii) when the competent minister intends to make a designation under the provisions of Article 47, item (i) or item (ii).

(Competent Minister)

Article 68 The competent minister and Ordinance of the Competent Ministry under this Act are specified by the relevant Individual Law.

Chapter VII Penal Provisions

Article 69 A person who falls under any of the following items is punished by imprisonment with required labor for not more than three years or a fine of not more than one million yen. The same applies to any person who has attempted, ordered, intentionally permitted, instigated, or has been an accessory to the accomplishment of the acts provided for in the following items:

(i) a person who refused to make a statement or to testify in violation of the provisions of Article 53, paragraph (3) without reasonable grounds;

(ii) a person who was summoned as a witness pursuant to the provisions of Article 54, paragraph (2) and made a false statement;

(iii) a person who was summoned as a witness pursuant to the provisions of Article 54, paragraph (2) but refused to appear without reasonable grounds, or a person who refused to respond to the request for submission of documents or copies thereof pursuant to the provisions of said paragraph without reasonable grounds;

(iv) a person who was requested to submit documents or copies thereof pursuant to the provisions of Article 54, paragraph (2) and submitted documents or copies thereof containing any false information; and

(v) a person who refused, obstructed or avoided an inspection under Article 54, paragraph (3), or refused to make a statement or made a false statement in response to the question (excluding an Officer or a former Officer who is under investigation under Article 18-3, paragraph (1) of the National Public Service Act as applied mutatis mutandis pursuant to Article 54, paragraph (1)).

Article 69-2 A person who has divulged a secret in violation of the provisions of Article 53, paragraph (1) is punished by imprisonment with required labor for not more than one year or a fine of not more than 500,000 yen.

Article 70 If an Incorporated Administrative Agency fails to make a report under the provisions of Article 64, paragraph (1) or makes a false report, or refuses, obstructs or avoids an inspection under the provisions of said paragraph, the officer or employee who has committed such violation is punished by a fine of not more than 200,000 yen.

Article 71 (1) If an Incorporated Administrative Agency falls under any of the following items, its officer who has committed the violation in question is punished by a fine of not more than 200,000 yen:

(i) if an Incorporated Administrative Agency fails to obtain an authorization or approval of the competent minister when said authorization or approval is required pursuant to the provisions of this Act;

(ii) if an Incorporated Administrative Agency fails to make a notification to the competent minister or the Prime Minister or makes a false notification when said notification is required pursuant to the provisions of this Act;

(iii) if an Incorporated Administrative Agency fails to publicize matters or publicizes false matters when said publication is required pursuant to the provisions of this Act;

(iv) if an Incorporated Administrative Agency fails to make a registration in violation of Cabinet Order under the provisions of Article 9, paragraph (1);

(v) if an Incorporated Administrative Agency obstructs the investigation under Article 19, paragraph (5) or paragraph (6) or Article 39, paragraph (3);

(vi) if an Incorporated Administrative Agency violates an order of the competent minister under the provisions of Article 30, paragraph (3), Article 32, paragraph (6), Article 35-3 (including the cases where applied mutatis mutandis in Article 35-8), Article 35-5, paragraph (3), Article 35-6, paragraph (9), Article 35-10, paragraph (4) or Article 35-12;

(vii) if an Incorporated Administrative Agency fails to submit a report under the provisions of Article 32, paragraph (2), Article 35-6, paragraph (3) or paragraph (4), or Article 35-11, paragraph (3) or paragraph (4), fails to state the matters required to be stated in a report, or submits a report stating false matters;

(viii) if an Incorporated Administrative Agency fails to keep or make available for public inspection the Financial Statements, the business report, the statement of accounts or the audit report in violation of the provisions of Article 38, paragraph (3);

(ix) if an Incorporated Administrative Agency invests surplus funds that accrued in the course of operations, in violation of the provisions of Article 47; or

(x) if an Incorporated Administrative Agency fails to make a report under Article 50-8, paragraph (3) (including the cases where applied mutatis mutandis pursuant to Article 50-11) or Article 60, paragraph (1), or makes a false report.

(2) If an officer of a Subsidiary of an Incorporated Administrative Agency obstructs the investigation under Article 19, paragraph (7) or Article 39, paragraph (3), the officer is punished by a fine of not more than 200,000 yen.

Article 72 A person who has violated the provisions of Article 10 is punished by a fine of not more than 100,000 yen.

Supplementary Provisions

(Effective Date)

Article 1 This Act comes into effect as of the date on which the Act for Partial Revision of the Cabinet Act (Act No. 88 of 1999) comes into effect.

(Transitional Measures Concerning Restriction on Use of Name)

Article 2 The provisions of Article 10 do not apply for six months after this Act comes into effect with regard to a person who actually uses the term "独立行政法人" (referring to "Incorporated Administrative Agency") as part of its name at the time this Act comes into effect.

(Delegation to Cabinet Order)

Article 3 In addition to what is provided for in the preceding Article, transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.

(Loan without Interest by the State)

Article 4 (1) Until otherwise provided by law, the State may, within the scope of the budget, provide a loan to an Incorporated Administrative Agency without interest for all or part of the funds to be appropriated to the expenses required for the development of its facility that falls under Article 2, paragraph (1), item (ii) of the Act on Special Measures Concerning Promotion of Social Infrastructure Development Through Use of Proceeds from Sale of the Stock of Nippon Telegraph and Telephone Corporation (Act No. 86 of 1987). In this case, the provisions of Article 45, paragraph (4) do not apply.

(2) The period for reimbursement of the loan by the State referred to in the preceding paragraph is a period specified by Cabinet Order not exceeding five years (including a grace period not exceeding two years).

(3) In addition to what is provided for in the preceding paragraph, the method of reimbursement, advance reimbursement, and any other necessary matters concerning the reimbursement of the loan under the provisions of paragraph (1) are specified by Cabinet Order.

(4) When the State provides a loan to an Incorporated Administrative Agency under the provisions of paragraph (1), it is to provide a subsidy in an amount equivalent to the loan with regard to the development of the facility for which the loan has been provided, and the subsidy is to be provided by delivering an amount equivalent to the reimbursement money for the loan at the time of the reimbursement of the loan.

(5) With regard to the application of the provisions of the preceding paragraph, if an Incorporated Administrative Agency reimburses the loan without interest which it has received under the provisions of paragraph (1) ahead of the due date for reimbursement specified based on the provisions of paragraphs (2) and (3) (excluding the cases specified by Cabinet Order), said reimbursement is deemed to be made on the arrival of the due date for reimbursement.

Supplementary Provisions [Act No. 66 of 2014]

(Effective Date)

Article 1 This Act comes into effect as of April 1, 2015; provided, however, that the provisions of the following Article through Article 4 of the Supplementary Provisions, and Articles 9, 12, and 15 of the Supplementary Provisions come into effect as of the date of promulgation.

(Preparatory Actions)

Article 2 (1) The formulation of the guidelines referred to in Article 28-2, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies revised by this Act (hereinafter referred to as the "New Act") as under the provisions of said paragraph, the drafting of the guidelines referred to in Article 28-3 of the New Act as under the provisions of said Article, the setting of Medium-tem Objectives referred to in Article 29, paragraph (1) of the New Act as under the provisions of said paragraph, the setting of Medium to Long-term Objectives referred to in Article 35-4, paragraph (1) of the New Act as under the provisions of said paragraph, the setting of Annual Objectives referred to in Article 35-9, paragraph (1) of the New Act as under the provisions of said paragraph, and procedures and other actions necessary for these may be conducted before this Act comes into effect, as governed by Article 28-2, paragraphs (1) and (2), Article 28-3, Article 29, Article 35-4, paragraphs (1) through (4), and Article 35-9 of the New Act. In this case: in Article 28-2, paragraph (2), Article 29, paragraph (3), and Article 35-4, paragraph (3), the phrase "Committee" is deemed to be replaced with "council specified by Cabinet Order referred to in Article 32, paragraph (3) prior to the revision by the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014)"; and in paragraph (4) of said Article, the phrase "council, etc. (meaning the organ provided for in Article 37 or 54 of the Act for Establishment of the Cabinet Office (Act No. 89 of 1999) or in Article 8 of the National Government Organization Act (Act No. 120 of 1948) which is specified by Cabinet Order (hereinafter referred to as the "Council for Research and Development")" is deemed to be replaced with "Incorporated Administrative Agencies Evaluation Committee provided for in Article 12, paragraph (1) prior to the revision by the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014)".

(2) When the council specified by Cabinet Order referred to in Article 32, paragraph (3) of the Act on General Rules for Incorporated Administrative Agencies prior to the revision by this Act (hereinafter referred to as the "Former Act") states its opinions pursuant to the provisions of Article 28-2, paragraph (2), Article 29, paragraph (3), or Article 35-4, paragraph (3) of the New Act, which are to govern pursuant to the preceding paragraph after deemed replacement, it must publicize the content of such opinions.

(3) As of the day on which this Act comes into effect (hereinafter referred to as the "Date of Coming into Effect"), the guidelines formulated and the Medium-term Objectives, Medium to Long-term Objectives, and Annual Objectives set pursuant to the provisions of paragraph (1) are respectively deemed to be the guidelines referred to in Article 28-2, paragraph (1) of the New Act formulated pursuant to the provisions of paragraphs (1) and (2) of said Article, the Medium-term Objectives referred to in Article 29, paragraph (1) of the New Act set pursuant to the provisions of said Article, the Medium to Long-term Objectives referred to in Article 35-4, paragraph (1) of the New Act set pursuant to the provisions of paragraphs (1) through (4) of said Article, and the Annual Objectives referred to in Article 35-9, paragraph (1) of the New Act set pursuant to the provisions of said Article.

Article 3 (1) The appointer of the members of the Incorporated Administrative Agencies Evaluation Committee (simply referred to as the "Appointer" in the following paragraph) may appoint a Foreign National (meaning a person who does not have Japanese nationality; the same applies in the following paragraph and paragraph (3)) who has great insight in Research and Development as provided for in Article 2, paragraph (3) of the New Act, as a member of the Incorporated Administrative Agencies Evaluation Committee.

(2) The Appointer must not engage a member of the Incorporated Administrative Agencies Evaluation Committee who is a Foreign National in any affairs other than stating his/her opinions to the competent minister pursuant to the provisions of Article 35-4, paragraph (4) of the New Act, which are to govern pursuant to paragraph (1) of the preceding Article after deemed replacement.

(3) In the case referred to in paragraph (1), a member of the Incorporated Administrative Agencies Evaluation Committee who is a Foreign National may not preside over the affairs of the Incorporated Administrative Agencies Evaluation Committee or represent the Incorporated Administrative Agencies Evaluation Committee, and the number of such members must not exceed one-fifth of the total number of the members of the Incorporated Administrative Agencies Evaluation Committee.

(Transitional Measures Concerning Affairs under Jurisdiction of the Incorporated Administrative Agencies Evaluation Committee)

Article 4 With regard to the application of the provisions of Article 12, paragraph (2), item (ii) of the Former Act during the period from the date of promulgation of this Act to the day preceding the Date of Coming into Effect, the phrase "this Act or the relevant Individual Law" in said item is deemed to be replaced with "this Act, the relevant Individual Law, or the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014)."

(Transitional Measures Concerning Restriction on Use of Name)

Article 5 The provisions of Article 10 of the New Act (limited to the part pertaining to a National Research and Development Agency (meaning the National Research and Development Agency provided for in Article 2, paragraph (3) of the New Act; the same applies hereinafter)) do not apply for six months after this Act comes into effect with regard to a person who actually uses the term "国立研究開発法人" (referring to "National Research and Development Agency") as part of its name at the time this Act comes into effect.

(Transitional Measures Concerning Duties and Authority of Auditors and Accounting Auditors as well as Officers' Duty to Report)

Article 6 The provisions of Article 19, paragraphs (4), (5), (7), and (8), Article 19-2, Article 21-5, Article 39, paragraphs (1) through (4), and Article 39-2 apply to matters that have arisen prior to the Date of Coming into Effect.

(Transitional Measures Concerning Term of Office of Officers)

Article 7 (1) With regard to the term of office of a person who actually serves as the president or an auditor of an Incorporated Administrative Agency (meaning the Incorporated Administrative Agency provided for in Article 2, paragraph (1) of the New Act; hereinafter the same applies in this paragraph) at the time this Act comes into effect (including the term of office of the president or an auditor of an Incorporated Administrative Agency appointed to fill a vacancy), the provisions then in force remain applicable, notwithstanding the provisions of Article 21, Article 21-2 or Article 21-3 of the New Act.

(2) If the provisions of the preceding paragraph apply to the term of office of a person who serves as an auditor of an Agency Managed under the Medium-term Objectives (meaning the Agency Managed under the Medium-term Objectives provided for in Article 2, paragraph (2) of the New Act; the same applies hereinafter) as of the Date of Coming into Effect, with regard to the application of the provisions of Article 21, paragraph (2) of the New Act to the term of office of the first auditor of an Agency Managed under the Medium-term Objectives to be appointed on or after the day following the Date of Coming into Effect (excluding an auditor of the Agency Managed under the Medium-term Objectives appointed to fill a vacancy): in Article 21, paragraph (2) of said Act, the phrase "is specified as corresponding to each Period of the Mid-term Objectives, and it" is deemed to be deleted, and the phrase "said corresponding Period of the Medium-term Objectives" is deemed to be replaced with "the Period for the Medium-term Objectives which is provided for the Agency Managed under the Medium-term Objectives and which includes said date of appointment."

(3) If the provisions of paragraph (1) apply to the term of office of a person who serves as the president of a National Research and Development Agency as of the Date of Coming into Effect, with regard to the application of the provisions of the proviso to Article 21-2, paragraph (1) of the New Act to the term of office of the first president of a National Research and Development Agency to be appointed on or after the day following the Date of Coming into Effect (excluding the president of a National Research and Development Agency appointed to fill a vacancy): in the proviso to said paragraph, the phrase "Period for the Medium to Long-term Objectives is six years or seven years" is deemed to be replaced with "Period from the day following the last day of the term of office of the president of a National Research and Development Agency (including the term of office of the president of a National Research and Development Agency appointed to fill a vacancy) to which the provisions of Article 7, paragraph (1) of the Supplementary Provisions of the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014) apply (hereinafter referred to as the "Initial Date" in this paragraph) to the last day of the Period for the Medium to Long-term Objectives in which the Initial Date falls (hereinafter referred to as the "Remaining Period" in this paragraph) is not less than six years and less than seven years" and the phrase "first day of the Period for the Medium to Long-term Objectives (hereinafter simply referred to as the "First Day" in this paragraph and the following paragraph)" is deemed to be replaced with "Initial Date"; and in item (i) of said paragraph, the phrase "Period for the Medium to Long-term Objectives" is deemed to be replaced with "Remaining Period" and the phrase "First Day" is deemed to be replaced with "Initial Date"; and in item (ii) of said paragraph, the phrase "Period for the Medium to Long-term Objectives is seven years" is deemed to be replaced with " Remaining Period is more than six years and less than seven years" and the phrase "day on which a period of three or four years elapses from the First Day" is deemed to be replaced with "last day of the last business year that ends by the day on which a period of four years elapses from the Initial Date."

(4) If the provisions of paragraph (1) apply to the term of office of a person who serves as an auditor of a National Research and Development Agency as of the Date of Coming into Effect, with regard to the application of the provisions of Article 21-2, paragraph (4) of the New Act to the term of office of the first auditor of a National Research and Development Agency to be appointed on or after the day following the Date of Coming into Effect (excluding an auditor of a National Research and Development Agency appointed to fill a vacancy): in Article 21-2, paragraph (4) of said Act, the phrase "is specified as corresponding to the term of office of the president of the National Research and Development Agency (including the term of office of the president of the National Research and Development Agency appointed to fill a vacancy; hereinafter the same applies in this paragraph), and it" is deemed to be deleted and the phrase "said corresponding term of office of the president of the National Research and Development Agency" is deemed to be replaced with "the term of office of the president of the National Research and Development Agency (including the term of office of the president of the National Research and Development Agency appointed to fill a vacancy) as of said date of appointment."

(5) If the provisions of paragraph (1) apply to the term of office of a person who serves as an auditor of an Agency Engaged in Administrative Execution (meaning the Agency Engaged in Administrative Execution provided for in Article 2, paragraph (4) of the New Act; the same applies hereinafter) as of the Date of Coming into Effect, with regard to the application of the provisions of Article 21-3, paragraph (2) of the New Act to the term of office of the first auditor of an Agency Engaged in Administrative Execution to be appointed on or after the day following the Date of Coming into Effect (excluding an auditor of an Agency Engaged in Administrative Execution appointed to fill a vacancy): in Article 21-3, paragraph (2) of said Act, the phrase "is specified as corresponding to the term of office of the president of the Agency Engaged in Administrative Execution (including the term of office of the president of the Agency Engaged in Administrative Execution appointed to fill a vacancy; hereinafter the same applies in this paragraph), and it" is deemed to be deleted and the phrase "said corresponding term of office of the president of the Agency Engaged in Administrative Execution" is deemed to be replaced with the "term of office of the president of the Agency Engaged in Administrative Execution (including the term of office of the president of the Agency Engaged in Administrative Execution appointed to fill a vacancy) as of said date of appointment."

(Transitional Measures Concerning Medium-term Objectives of an Incorporated Administrative Agency that Becomes an Agency Managed under the Medium-term Objectives or a National Research and Development Agency)

Article 8 (1) The Medium-term Objectives referred to in Article 29, paragraph (1) of the Former Act with regard to which, at the time this Act comes into effect, an Incorporated Administrative Agency (meaning the Incorporated Administrative Agency provided for in Article 2, paragraph (1) of the Former Act; the same applies hereinafter) that becomes an Agency Managed under the Medium-term Objectives or a National Research and Development Agency as of the Date of Coming into Effect is actually subject to the instructions given by the competent minister pursuant to the provisions of under Article 29, paragraph (1) of the Former Act are deemed to be the Medium-term Objectives referred to in Article 29, paragraph (1) of the New Act with regard to which the competent minister has given instructions pursuant to the provisions of said paragraph or the Medium to Long-term Objectives referred to in Article 35-4, paragraph (1) of the New Act with regard to which the competent minister has given instructions pursuant to the provisions of said paragraph.

(2) The Medium-term Plan referred to in Article 30, paragraph (1) of the Former Act with regard to which, at the time this Act comes into effect, an Incorporated Administrative Agency that becomes an Agency Managed under the Medium-term Objectives or a National Research and Development Agency as of the Date of Coming into Effect actually holds the authorization granted pursuant to the provisions of Article 30, paragraph (1) of the Former Act (such Medium-term Plan is referred to as the "Former Medium-term Plan" in Article 10, paragraph (2) of the Supplementary Provisions) is deemed to be the Medium-term Plan referred to in Article 30, paragraph (1) of the New Act with regard to which the Incorporated Administrative Agency is granted the authorization referred to in said paragraph (referred to as the "New Medium-term Plan" in Article 10, paragraph (2) of the Supplementary Provisions) or the Medium to Long-term Plan referred to in Article 35-5, paragraph (1) of the New Act with regard to which the Incorporated Administrative Agency is granted the authorization referred to in said paragraph (referred to as the "New Medium to Long-term Plan" in Article 10, paragraph (2) of the Supplementary Provisions).

(Special Provisions Concerning the Period for the Medium-term Objectives of an Incorporated Administrative Agency that Becomes an Agency Engaged in Administrative Execution)

Article 9 The Period for the Medium-term Objectives (meaning the Period for the Medium-term Objectives provided for in Article 29, paragraph (2), item (i) of the Former Act; the same applies hereinafter) of an Incorporated Administrative Agency (limited to an Incorporated Administrative Agency that becomes an Agency Engaged in Administrative Execution as of the Date of Coming into Effect) which has been specified prior to the Date of Coming into Effect and which is to end on or after the Date of Coming into Effect, is to end on the day preceding the Date of Coming into Effect, notwithstanding the provisions of said item.

(Transitional Measures Concerning Annual Plans and Business Plans)

Article 10 (1) Except in the cases provided for in the following paragraph, with regard to the application of the provisions of Article 31, paragraph (1) of the New Act (including the cases applied mutatis mutandis pursuant to Article 35-8 of the New Act after deemed replacement) or Article 35-10, paragraph (1) of the New Act for the business year in which the Date of Coming into Effect falls: in Article 31, paragraph (1) of the New Act, the phrase "Prior to the start of each business year,...the Medium-term Plan as authorized under paragraph (1) of the preceding Article" is deemed to be replaced with "Without delay after obtaining the authorization referred to in paragraph (1) of the preceding Article for the first Medium-term Plan prepared on or after the date on which the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014) comes into effect,...the Medium-term Plan"; in Article 31, paragraph (1) applied mutatis mutandis pursuant to Article 35-8 of the New Act after deemed replacement, the phrase "Prior to the start of each business year, ...the Medium-term Plan as authorized under Article 35-5, paragraph (1)" is deemed to be replaced with "Without delay after obtaining the authorization referred to in Article 35-5, paragraph (1) for the first Medium to Long-term Plan (meaning the Medium to Long-term Plan referred to in Article 35-5, paragraph (1); hereinafter the same applies in this paragraph) prepared on or after the date on which the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies comes into effect,...the Medium to Long-term Plan"; and in Article 35-10, paragraph (1) of the New Act, the phrase "each business year" is deemed to be replaced with "the first business year on or after the date on which the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies comes into effect" and the phrase "prior to the start of the relevant business year" is deemed to be replaced with "without delay."

(2) With regard to the application of the provisions of Article 31, paragraph (1) of the New Act (including the cases applied mutatis mutandis pursuant to Article 35-8 of the New Act after deemed replacement) for the business year in which the Date of Coming into Effect falls in the cases where a Former Medium-term Plan is deemed to be a New Medium-term Plan or a New Medium to Long-tern Plan pursuant to the provisions of Article 8, paragraph (2) of the Supplementary Provisions: in Article 31, paragraph (1) of the New Act, the phrase "Prior to the start of each business year, ...as authorized under paragraph (1) of the preceding Article" is deemed to be replaced with "Without delay after the date on which the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014) comes into effect,...as deemed to be authorized under paragraph (1) of the preceding Article, pursuant to the provisions of Article 8, paragraph (2) of the Supplementary Provisions of said Act"; and in Article 31, paragraph (1) applied mutatis mutandis pursuant to Article 35-8 of the New Act after deemed replacement, the phrase "Prior to the start of each business year, ...as authorized under Article 35-5, paragraph (1)" is deemed to be replaced with "Without delay after the date on which the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies comes into effect,... as deemed to be authorized under Article 35-5, paragraph (1), pursuant to the provisions of Article 8, paragraph (2) of the Supplementary Provisions of said Act."

(Transitional Measures Concerning Evaluation on the Results of Operations)

Article 11 (1) The provisions of Article 32 of the New Act also apply to the evaluation on the results of the operations during the business year that ended on the day preceding the Date of Coming into Effect and during the Period for the Medium-term Objectives of an Incorporated Administrative Agency that has become an Agency Managed under the Medium-term Objectives as of the Date of Coming into Effect.

(2) The provisions of Article 35-6, paragraphs (1) and (3) and paragraphs (5) through (9) of the New Act also apply to the evaluation on the results of the operations during the business year that ended on the day preceding the Date of Coming into Effect and during the Period for the Medium-term Objectives of an Incorporated Administrative Agency that has become a National Research and Development Agency as of the Date of Coming into Effect.

(3) The provisions of Article 35-11, paragraphs (1), (3), (5), and (6) of the New Act also apply to the evaluation on the results of the operations during the business year that ended on the day preceding the Date of Coming into Effect of an Incorporated Administrative Agency that has become an Agency Engaged in Administrative Execution as of the Date of Coming into Effect.

(4) The provisions of Article 35-11, paragraphs (2) and paragraphs (4) through (7) of the New Act apply mutatis mutandis to the evaluation on the results of the operations during the Period for the Medium-term Objectives that ended on the day preceding the Date of Coming into Effect of an Incorporated Administrative Agency that has become an Agency Engaged in Administrative Execution as of the Date of Coming into Effect. In this case: in paragraph (2) of said Article, the phrase "a period specified by Ordinance of the Competent Ministry, which is not less than three years and not more than five years" is deemed to be replaced with "the Period for the Medium-term Objectives provided for in article 29, paragraph (2), item (i) prior to the revision by the Act for Partial Revision of the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014)" and the phrase "status of the implementation during said period of the matters concerning the improvement of the efficiency of the administration of the operations specified in the Annual Objectives" is deemed to be replaced with "results of the operations during said Period for the Medium-term Objectives"; in paragraph (4) of said Article, the phrase "status of the implementation of the matters provided for in said paragraph and the results of its self-evaluation on the status of the implementation of these matters" is deemed to be replaced with "results of the operations during the Period for the Medium-term Objectives provided for in said paragraph and the results of its self-evaluation on the status of these results of the operations"; and in paragraph (5) of said Article "status of the implementation of the matters" is deemed to be replaced with "results of the operations during the Period for the Medium-term Objectives."

(5) The provisions of the preceding paragraph do not apply if the Period for the Medium-term Objectives specified prior to the Date of Coming into Effect ends on the day preceding the Date of Coming into Effect and as a result said Period for the Medium-term Objectives becomes one year or less, as provided for in Article 9 of the Supplementary Provisions.

(6) If an Agency Engaged in Administrative Execution fails to submit a report under the provisions of Article 35-11, paragraph (4) of the New Act applied mutatis mutandis pursuant to paragraph (4) or fails to state in a report the matters that should be stated therein or submits a report containing a false statement, the officer of the Agency Engaged in Administrative Execution who has committed such violation is punished by a non-criminal fine of not more than 200,000 yen.

Article 12 The provisions of Article 35 of the Former Act do not apply to the Period for the Medium-term Objectives which is specified for an Incorporated Administrative Agency that becomes an Agency Engaged in Administrative Execution as of the Date of Coming into Effect and in which the day preceding the Date of Coming into Effect falls.

(Transitional Measures Concerning Duty of Confidentiality)

Article 13 With regard to the duty of a person who formerly served as an officer of a Specified Incorporated Administrative Agency provided for in Article 2, paragraph (2) of the Former Act not to divulge any secret that the person has come to know in the course of performing his/her duties as provided for in Article 54, paragraph (1), the provisions then in force remain applicable even after the Date of Coming into Effect.

(Transitional Measures Concerning the Application of Penal Provisions)

Article 14 With regard to the application of penal provisions to acts committed after this Act coming into effect, and acts committed after this Act coming into effect in the cases where the provisions then in force are to remain applicable pursuant to the provisions of the preceding Article, the provisions then in force remain applicable.

(Delegation of Other Transitional Measures to Cabinet Order)

Article 15 In addition to what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, transitional measures necessary for the enforcement of this Act (including transitional measures concerning penal provisions) are specified by Cabinet Order.