Rules Of Shenzhen Municipal Utilities Franchising

Original Language Title: 深圳市公用事业特许经营办法

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(Released March 21, 2003, Shenzhen Municipal People's Government, the 124th) Chapter I General provisions article in order to improve the efficiency and quality of service of public utilities, protect the public interest and the legitimate rights and interests of the franchise, promote the development of public utilities, these measures are formulated.
    Article franchises of public utilities in these measures refers to the municipal government special licenses qualified enterprises or other organizations at a certain time and within the scope of business of a public utility.
    Third Government social funds and foreign capital are encouraged to take wholly-owned, joint venture, cooperation, construction of public facilities, public utilities under franchise. Article fourth utility franchises should give priority to ensuring the public interest is not compromised.
    Franchisees should ensure sustainable, safe, high quality, efficient, fair and affordable universal service.
    Franchise owners through legitimate business receive a reasonable return and bear the risks.
    Article fifth franchise and the Government should establish mechanisms for public participation, and encourage the public to monitor public utilities.
    Sixth public utilities regulators (hereinafter referred to as regulators) is responsible for the supervision and management of public utilities under franchise, in accordance with their duty of supervision and management functions of other government departments.
    Chapter seventh franchises franchises of public utilities authority is Government or authorized by regulators. Eighth authorizes the principal can be taken tenders, recruitment or the provisions of other laws, rules and regulations, fair and just to set a public utility franchise issued by the public utilities under franchise authorized Shenzhen book (hereinafter authorisation) granted in the form of qualified applicants.
    Specific conditions stipulated by the invitation to tender documents, the recruitment.
    Applicants apply for franchises of public utilities, utility ownership and disposition, transfer of shares and the management of public utilities and other associated matters such as responsibility for the operation of the corresponding commitments.
    Article Nineth Tenders awarded the franchise, according to bidding procedures under the law of the country, and the specific measures determined by call for tender, the tender documents.
    Article tenth recruitment in these measures, refers to the authorized body to be authorized to operate public utilities after the authorized body or the agencies entrusted to the applicant an invitation through the due diligence and negotiation of intent to determine operator candidates, submitted to the Review Committee identified priority negotiations, negotiated by an authorized person.
    11th authorization shall set forth the following major items: (a) the authorized person, authorized person, (ii) contents of the franchise period, regional, and (iii) public ownership and disposition of facilities; (d) the franchise back; (v) the franchisee's obligations and responsibilities.
    Qian paragraph by said franchise who of obligations and responsibility including: (a) comply with legal and the regulations, and regulations; (ii) utilities service standard and requirements; (three) maintenance and construction public facilities; (four) accept regulatory sector supervision and in accordance with legal, and regulations, and regulations for of temporary took over and other control measures; (five) accept public supervision; (six) implementation in accordance with legal, and regulations and the regulations provides developed or adjustment of price; (seven) other.
    12th authorization is the statutory basis for franchisees in the franchise business, franchise-wide provisions may not go beyond the powers of attorney.
    Without authorization, shall not act as public utilities under franchise.
    13th Government public utility franchise fee for the use of different features of relief.
    Article 14th franchisee is allowed to transfer, lease, mortgage, disposition franchise. 15th franchise right to terminate when the period expires. Franchisee franchise extension of the application should be submitted the extension application before the expiry of the time allotted. Authorized body reviews have concluded that meet the conditions for extension, can be postponed.
    But an extension of no more than twice.
    Provisions referred to in the preceding paragraph by the method shall be separately identified in the annex. 16th article franchise who has following case one of of, authorized subject recovered franchise right: (a) to transfer, and rental, and pledge, way disposition franchise right of; (ii) for transfer Enterprise equity and appeared not meet authorized qualification conditions of; (three) up not to utilities products, and service of standard and requirements, serious effect public interests of; (four) for business management poor, caused major security accident, serious effect public interests of; (five) for business management poor, financial status serious deterioration,
    Endangering public utilities (vi) are not investment, construction of public facilities in urban planning, rectification by regulators refused to correct, and (VII) arbitrarily closed, closed, and (VIII) violates the commitments made by applies for franchise rights; (IX) other circumstances as stipulated by laws, rules and regulations. Article 17th recover the franchise decision by the authorized body of written notice to the franchisee. Licensee can in writing within 30 working days after receipt of notice in writing to plead or request hearings.
    Franchisee may request a hearing, the authorized body shall organize the hearing.
    Franchisees to take back the franchise decision, may apply for administrative reconsideration or bring an administrative lawsuit in accordance with law.
    During the 18th franchise, a force majeure event occurs, which does not operate correctly, the franchisee application and approved by the authorized body, early termination of their franchises.
    After 19th franchises were withdrawn or terminated, the original franchisees should be authorized within the stipulated time, the assets necessary to maintain the normal operation of the franchise business and profile, in the normal running conditions specified by the transfer of an authorization under the main unit.
    After 20th franchises were withdrawn or terminated, the Government of the original franchisees to maintain the normal operation of the franchise business as part of net value of fixed assets investment and construction, giving reasonable compensation.
    Franchise is under this article 16th following the withdrawal of original franchisee for the Government to grant franchises and transfer the necessary costs of compensation.
    Article 21st franchises were withdrawn or terminated, in front of the complete take over of units specified, the franchisee should be requested by the authorized body, carry out guard duties in good faith, continue to maintain the normal operation of the service.
    Chapter III utility 22nd government investment construction of facilities for public use, ownership vested in the Government, the Government can use a public facility by way of lease to the franchisee. Franchisee should be in accordance with the urban planning and construction of a new public facilities. Franchise was withdrawn or terminated, the public facilities according to its commitment goes to the Government.
    Need compensation, according to the way in which Government or agreed to give investors a reasonable compensation. Article 23rd franchisees should be allowed in accordance with the planning requirements of other operators to connect its public facilities.
    Provisions relating to charging price management.
    Article 24th franchisees for construction and maintenance of public facilities need access to certain areas and buildings should be prior consultation with the owner, ownership and the relevant staff should be facilitated. 25th maintenance utilities to comply with associated road and green management, field stations and pipeline modification shall be subject to the overall arrangements for the City Planning Department.
    Due to emergencies when repair is required, the licensee can implement repair, notify the relevant departments, and go through the relevant formalities.
    Article 26th Charter operators deal with utility status and performance of regular maintenance, and facilities operation reports on time supervision departments.
    27th Charter operators deal with drawings and other information on the utilities to collect, sort, organize, and archive, improving public facilities information management system, and connected with the Government.
    28th Government for reasons of public interest needs to be requisitioned for public facilities, the franchisee should cooperate, the Government should give investors a reasonable compensation.
    Fourth chapter price 29th Government pricing authorities and the authorities responsible for public utilities price, or adjustments.
    Article 30th utility prices should follow the principle that reasonable compensation costs, taxes, benefits, saving resources, the promotion of development and social tolerance.
    31st price by the cost of public utilities, taxes and profit.
    Cost refers to the average social costs, including manufacturing costs and expenses for the period should be accounted for in the price. Franchise operators a reasonable return of profits.
    According to the characteristics of different industries, respectively, approved by the net assets or net fixed assets income rate.
    Article 32nd costs approved by the following methods: (a) the purchase price of raw materials and fixed assets of Government-set prices, approved by the prescribed prices; a market-regulated prices, purchased by approved by the average market price, the actual purchase price is lower than the average market price of, approved by the actual purchase price.
    (B) the total salary costs, marketing costs and administrative expenses ratio, according to the same or similar business for nearly 3 years these three share total cost total cost total cost approved by the Community average, and refer to the city. (C) depreciation of fixed assets has to be and provision of utility assets related to a product or service, but the above except for assets belonging to the Government-owned utility; idle for more than 9 months of fixed assets not included in the recorded depreciation area. Idle assets revert to continuous use for more than 3 months before they can record depreciation.
    Asset depreciation by the financial sector, price departments and regulators and the franchise is determined according to the principle of reasonable. Article 33rd price departments shall establish a regular audit system, set up cost information database, effective cost control system.
    If necessary, develop or adjust the cost price should be audited by a qualified auditing organization, ensuring the authenticity and accuracy of price-cost. Article 34th price departments ascertain the specific rate of return approved by regulators, together in this way in the annex thereto. Yields down by price, in conjunction with regulatory departments for social average profit level, interest rate and price index and other factors, a proposal the Municipal Government to determine.

    Prices in conjunction with regulatory authorities an annual assessment of yield level and, if necessary, be adjusted.
    35th utility pricing or adjustment according to the following procedures: (a) supervised by the franchise owners, public utilities Commission, consumer organizations, industry associations or regulators apply in writing to the competent authorities, or by pricing the price of Department or other relevant departments according to the price law, direct pricing, pricing schemes, price departments and hearing. (B) prices Department after receiving a written request, preliminary review application materials are complete and verified, the application materials are complete, applicants should be required within a correction.
    After a written application, that meet the conditions for a hearing, shall on the date of acceptance of the application within 15th hearing decisions, and coordination with relevant departments in the preparation of the hearing.
    (C) prices Department hearing decision should be made within 3 months of hearings, and held a hearing in the 10th, will hire at least representative served on the hearing and hearing materials, hearings should be held above two-thirds representative to attend the hearing. (D) prices Department regulators proposed price programmes should be fully taken into account when hearing the views, formed by the pricing authority and scope of the programme approval.
    Summary of the report should be submitted simultaneously to the hearing, hearing transcripts and related materials.
    (E) approval of the pricing program, from price to the public sector, the public, government announcements on the website and other media, and organizations. Article 36th to ensure that utility prices relatively stable, according to different characteristics of the utility industry establish a price regulation provision, for use in public regulation of prices and profits.
    Specific measures shall be prescribed separately.
    37th franchisees should be implemented price regulation and Government-set prices. Fifth chapter regulatory 38th article regulatory sector on franchise who for supervision management, perform following duties: (a) is responsible for utilities franchise right of tender, and recruitment, specific organization work; (ii) developed products, and service quality evaluation standard; (three) supervision franchise who perform statutory obligations; (four) accepted public on franchise who of complaints; (five) on franchise who violations for investigation; (six) on franchise who of 5 years business plans and annual business plans proposed views and recommends,
    And supervision implementation; (seven) supervision check franchise who provides of products and service quality; (eight) assist price sector developed and adjustment price, accounting and monitoring cost and the costs; (nine) review franchise who of annual report; (10) to municipal Government submitted on franchise who of annual supervision check report; (11) emergency situation Shi temporary took over utilities business; (12) legal, and regulations, and regulations provides of other duties.
    Franchisees should be 5 years and annual business plans, annual reports, key members of the Board of Directors and management team changes, Board of Directors resolutions in accordance with this annex or other agreed, determining the time submitted to the regulatory authorities for the record or review. 39th article regulatory sector on franchise who of daily regulatory including: (a) products or service of quality whether meet requirements; (ii) industry association provides of service satisfaction degrees whether reached; (three) franchise who of annual and 5 years period of business approach, and investment plans whether by provides record, and implementation; (four) business business and financial situation whether good; (five) whether perform commitment; (six) whether implementation price provides; (seven) Board and business team main members of change, and
    Whether the provisions of the resolutions of the Board of the record; (h) other matters stipulated by laws, rules and regulations.
    40th utility Oversight Committee, established under article, the Commission is responsible for collecting, franchising, the views of the public, legislative, regulatory and other proposals put forward, on behalf of the public to monitor the public utilities under franchise.
    The sixth chapter of legal responsibility 41st Charter breach to the 23rd, 26th, and 27th article, the regulatory authority shall order correction within, and fines of between 50,000 yuan and 500,000 yuan.
    Franchisees in contravention of this article 12th, 14th, 19th, 21st, and 22nd of article, the regulatory authority shall order correction within, and a fine of between 500,000 yuan and 1 million Yuan.
    Franchisee may violate the provisions of this article 37th, by the price departments shall punish.
    42nd franchisee refuses to accept the decision of regulators may initiate administrative reconsideration or administrative proceedings in accordance with law.
    Article 43rd regulators who abuses his power, malpractice, neglect their duties, bribe, shall be given administrative sanctions constitutes a crime, criminal responsibility shall be investigated according to law. Seventh chapter supplementary articles article 44th has made a utility management enterprise or other organization authorized authorization can be granted directly to the companies or other organizations.
    But the provisions of the second paragraph of this article eighth commitment cannot be remitted. Article 45th annex includes specific provisions relating to public utility franchise of this approach.
    Accessories can be released with these measures can also be published separately.
    Regulators may be based on the methods, annexed to this approach to develop specific management measures or other matters agreed.
                          46th these measures shall come into force on May 1, 2003.