Chapter I General Provisions

Article 1 This Law is formulated in accordance with the Constitution with a view to safeguarding the right of citizens, legal persons and other organizations to State compensation according to law, and promoting the exercise by State organs of their functions and powers according to law.

Article 2 Where State organs or State functionaries, in exercising their functions and powers, infringe upon the lawful rights and interests of the citizens, legal persons and other organizations, thereby causing damage to them, the victims shall have the right to State compensation in accordance with this Law.

The organs liable for compensation as stipulated herein shall discharge their duties of compensation in a timely manner according to this law.

Chapter II Administrative Compensation

Section I Scope of Compensation

Article 3 The victim shall have the right to compensation if an administrative organ or its functionaries, in exercising their administrative functions and powers, commit any of the following acts infringing upon the right of the person of a citizen:

(1) Detaining a citizen in violation of the law or unlawfully taking compulsory administrative measures in restraint of his personal freedom;

(2) Unlawfully taking a citizen into custody or depriving him of his right of the person by other unlawful means;

(3) Using or instigating or indulging violence such as beating one up and abuse, thereby causing bodily injury or death to a citizen;

(4) Unlawfully using weapons or police restraint implements, thereby causing bodily injury or death to a citizen; or

(5) Other unlawful acts causing bodily injury or death to a citizen.

Article 4 The victim shall have the right to compensation if an administrative organ or its functionaries, in exercising their functions and powers, commit any of the following acts infringing upon property right:

(1) Illegally inflicting administrative sanctions such as imposition of fines, revocation of certificates and licenses, ordering suspension of production and business, or confiscation of property;

(2) Illegally implementing compulsory administrative measures such as sealing up, distraining or freezing property;

(3) Illegally requisitioning or expropriating properties; or

(4) Other illegal acts causing damage to property.

Article 5 The State shall not be liable for compensation in any of the following circumstances:

(1) Individual acts of a functionary of an administrative organ, which have nothing to do with the exercise of his functions and powers;

(2) Damage arisen from acts done by citizens, legal persons or other organizations themselves; or

(3) Other circumstances provided by law.

Section II Claimants to Compensation and Organs Liable for Compensation

Article 6 Victimized citizens, legal persons or other organizations shall have the right to demand compensation.

In case of death of a victim, his heirs or other relatives in maintenance relationship with him shall have the right to demand compensation.

In case of termination of a victimized legal person or other organization, the successor to the rights shall have the right to demand compensation.

Article 7 Where an administrative organ and its functionaries, in exercising their administrative powers, infringe upon the lawful rights and interests of a citizen, a legal person or other organizations, thereby causing damage to them, the administrative organ shall be the organ liable for compensation.

Where two or more than two administrative organs in jointly exercising their administrative functions and powers infringe upon the lawful rights and interests of a citizen or a legal person or other organizations, thereby causing damage to them, the administrative organs jointly exercising their administrative functions and powers shall be the organs jointly liable for compensation.

Where an organization in exercising the administrative powers conferred on it by law, rules and regulations infringe upon the lawful rights and interests of a citizen or a legal person or other organizations, thereby causing damage to them, the empowered organization shall be the organization liable for compensation.

Where an organization or an individual, in exercising the administrative powers entrusted to it or him by an administrative organ, infringes upon the lawful rights and interests of a citizen or a legal person or other organizations, thereby causing damage to them, the administrative organ that did the entrustment shall be the organ liable for compensation.

Where an organ liable for compensation has been abolished, the administrative organ that continues to exercise the former's functions and powers shall be the organ liable for compensation; if there is no administrative organ that continues to exercise the former's functions and powers, the administrative organ that abolished the former organ shall be the organ liable for compensation.

Article 8 If reconsideration of a case has been made, the administrative organ that first did the tortious act shall be the organ liable for compensation; however, if the outcome of the reconsideration aggravates the damage, the organ undertaking the reconsideration of the case shall carry out its compensatory obligations as regards the increased portion of damages.