CHAPTER I The General Provisions

(Purpose) Article 1. The purpose of this Law is to stipulate fundamental matters common to the entire field of social welfare services, and in conjunction with the Daily Life Security Law (Law No.144 of 1950), the Child Welfare Law (Law No.164 of 1947), the Law for the Welfare of the Disabled Persons (Law No.283 of 1949) and other laws aiming at social welfare, to secure fair and appropriate practice of social welfare services, and thus to assist in the promotion of social welfare.

(Definition) Article 2. "Social welfare services" , in this Law, shall mean the first-type social welfare services and the second-type social welfare services. 2 Services as listed in each of the following items shall be the first-type social welfare services: (1) Services rendered through the operation of institutions for the aged, relief institutions, rehabilitation institutions or other institutions which provide lodging to the destitute free of or at small charges for the purpose of providing aid for living, and services of providing aid for funeral to the destitute, as provided for by the Daily Life Security Law; (2) Services rendered through the operation of infant homes, mothers'homes, homes for dependent neglected and abused children, homes for feeble-minded children, homes for blind, deaf and dumb children, homes for physically weak children, homes for crippled children or homes for juvenile training and education, as provided for by the Child Welfare Law; (3) Services rendered through the operation of institutions for rehabilitation and guidance for the disabled persons, institutions for the rehabilitation of the persons with acquired blindness or sheltered workshops for the disabled persons, as provided for by the Law for the Welfare of the Disabled Persons; (4) Services rendered through the operation of public pawn shops or workshops and by providing loans for the destitute at no or low interest rate. 3 Services as listed in each of the following items shall be the second-type social welfare services: (1) Services rendered by providing to the destitute at their homes, food, clothing, other daily necessities or money needed to obtain these, or providing consultation on living; (2) Services rendered through the operation of lying-in agencies, day nurseries or children's recreational agencies, and services promoting the welfare of children through consultation, as provided for by the Child Welfare Law; (3) Services rendered free of or at small charges through the operation of institutions manufacturing artificial limbs or other prosthetic appliances, Braille libraries, Braille publishing institutions and services of providing free of or at small charges consultation for rehabilitation of the disabled persons, as provided for by the Law for the Welfare of the Disabled Persons; (4) Service rendered by renting to the destitute simple houses free of or at small charges, or services of allowing them to utilize lodging or other institutions free of or at small charges; (5) Services rendered by providing to the destitute medical care free of or at small charges; (6) Services of providing coordination or financial aid to the services stated in each item of the preceding paragraph and in each of the preceding items. 4 "Social welfare services" in this Law shall not include services as listed under each of the following items: (1) Rehabilitation works provided for by the Law for the Immediate Aid to Offenders, etc. (Law No.203 of 1950); (2) Services rendered for a period not longer than six months (or three months with respect to services stated in item (6) of the preceding paragraph); (3) Services rendered by corporations or associations for the benefit of the corporation or association members; (4) Services listed under each item of paragraph 2 and under items (1) to (5) inclusive of the preceding paragraph, and with respect to which those who receive regular case are less than five persons in the case of institutional care, and less than twenty persons in other cases; (5) Of the services listed under paragraph 3 item (6), services of providing financial aid to social welfare services, not reaching to 500,000 yen in amount of aid during each fiscal year, or not reaching to 50 during the same fiscal year in the number of social welfare services receiving such aid.

(Purpose of social welfare services) Article 3. Social welfare services shall be operated with the purpose of providing the persons in need of measures of relief, nurture or rehabilitation with the assistance which will enable them, without impairing their spirit of independence, to live as normal members of society.

(Operating body of the social welfare services) Article 4. Of the social welfare services, the first-type social welfare services shall be operated, as a principle, by the State, local public bodies or social welfare juridical persons.

(Guiding principles of operation of services) Article 5. The State, the local public bodies, the social welfare juridical persons or other persons operating social welfare services shall clarify their respective responsibilities in accordance with what is provided for in each of the following items: (1) The State and the local public bodies shall not delegate the responsibilities placed on them by laws to other persons operating social welfare services, nor shall they request financial assistance from these; (2) The State and the local public bodies shall respect the independence of other persons operating social welfare services, and shall not interfere with them unduly; (3) The persons operating social welfare services shall not unduly request financial or managerial assistance from the State and the local public bodies. 2 The provision of item (1) of the preceding paragraph shall not preclude the State or the local public bodies from consigning, with respect to the social welfare services operated thereby, to the persons operating social welfare services the measures of accommodating or other measures relative to persons in need of relief, etc.

CHAPTER II The Social Welfare Council

(Social Welfare Council) Article 6. The Social Welfare Council shall be established in order to investigate and deliberate on fundamental matters common to the entire field of social welfare services and other related important matters. 2 The Social Welfare Council shall be under the supervision of the Minister of Welfare and shall answer the questions posed by the latter, or present opinions to the administrative agencies concerned.

(Organization) Article 7. The Social Welfare Council shall be organized with members not exceeding thirty in number. 2 What it is necessary in order to investigate and deliberate on special matters, the Temporary Members Committee may be established in the Social Welfare Council not exceeding one-third of the total number of the members of the Council.

(Members) Article 8. The members and the temporary members shall be appointed by the Minister of Welfare from among the persons listed under each of the following items: (1) Persons engaging in social welfare services; (2) Persons of learning and experience in social welfare services; (3) Personnel of administrative agencies concerned. 2 The number of members who are appointed from among the personnel of the administrative agencies concerned shall not exceed one-third of the total number of the members. 3 The term of office of the members who have been appointed from among the persons engaging in social welfare services or the persons of learning and experience in social welfare services shall be one year, and in the case of vacancy, the term of office of the supplementary members shall be the remainder of the term of office of their prodecessors.

(Chairman) Article 9. The Social Welfare Council shall have one chairman elected by the mutual voting of the members. The chairman shall preside over the affairs of the Council.

(Specialized subcommittees) Article 10. In the Social Welfare Council, the Specialized Subcommittee on Daily Life Security shall be established in order to investigate and deliberate on matters related to the enforcement of the Daily Life Security Law. 2 The Social Welfare Council may, in order to investigate and deliberate on matters other than those stated in the preceding paragraph, establish specialized subcommittees as needed. 3 The members and temporary members who shall belong to the specialized subcommittees shall be nominated by the chairman of the Council. 4 The provision stated in Article 8 paragraph 2 shall apply mutatis mutandis to the members who are to belong to the specialized subcommittees.

(Miscellaneous affairs) Article 11. The miscellaneous affairs of the Social Welfare Council shall be handled by the Social Affairs Bureau of the Ministry of Welfare.

(Conduct of business) Article 12. Other than those provided for by this Law, matters necessary for the conduct of business of the Social Welfare Council, such as the procedure of proceedings, etc. shall be stipulated by the Social Welfare Council.

CHAPTER III The Office of Welfare

(Establishment) Article 13. To, Do, Fu and prefectures and the cities coming under Article 155 paragraph 2 of the Local Autonomy Law (Law No.67 of 1947) shall establish the welfare districts by by-law, covering the areas under their jurisdiction (excluding, in the case of To, Do, Fu or prefecture, areas of cities and those of towns and villages where offices of welfare are established), and shall establish in each of such districts an office of welfare having jurisdiction over the district concerned. 2 The number of welfare districts stated in the preceding paragraph shall be as enumerated in the annexed table. 3 The cities other than those stated in paragraph 1 shall, by by-law, establish the offices of welfare having jurisdiction over the areas of the respective cities. 4 Towns and villages may, by by-law, establish offices of welfare having jurisdiction over the areas of the respective towns or villages. 5 In accordance with the provisions of the Local Autonomy Law, towns and villages may, in the case of necessity, establish partial-affairs associations, in which the offices of welfare under the preceding paragraph may be established. In this case, the areas of the towns and villages, establishing the said partial-affairs associations, shall be the areas under the jurisdiction of the offices of welfare. 6 The office of welfare shall be in charge of the administrative matters relating to relief, nurture or rehabilitation as provided for by the Daily Life Security Law, the Child Welfare Law and the Law for the Welfare of the Disabled Persons. 7 The establishment or abolition of offices of welfare operated by the town or village shall take place at the beginning or the end of any fiscal year. 8 The town or village shall, when it wishes to establish or abolish the office of welfare, obtain the approval of the governor of To, Do, Fu or prefecture six months previously.

(Organization) Article 14. The office of welfare shall have the chief and at least the staff members stated below; provided that, when the chief of office personally conducts guidance and supervision in cases where this does not interfere with the execution of his functions, the staff stated under item (1) need not be established: (1) Staff engaging in guidance and supervision; (2) Staff engaging in actual services; (3) Clerical staff. 2 The chief of office shall be under the direction and supervision of the governor of To, Do, Fu or prefecture or the mayor of city, town or village, and shall be in charge of the affairs of the office. 3 The staff engaging in guidance and supervision shall be under the direction and supervision of the chief of office, and shall be in charge of guidance and supervision over the actual services. 4 The staff engaging in actual services shall be under the direction and supervision of the chief of office, and shall be in charge of business of interviewing the persons in need of relief, nurture or rehabilitation by making or without making visits to their homes, investigating assets, environmental circumstances, etc. of those persons, forming judgement as to the presence or absence of need for care and other disposition, and the kind of disposition needed, and providing these persons with guidance on living, etc. 5 The clerical staff shall be under the direction and supervision of the chief of office and shall be in charge of miscellaneous affairs of the office. 6 The staff of office stated under paragraph 1 items (1) and (2) shall be the social welfare secretaries.

(Fixed number of staff of office) Article 15. The fixed number of the staff of office shall be stipulated by by-law; provided that, the number of staff engaging in actual services shall not, for each office, be less than the number stated under each of the following items: (1) In each office established by To, Do, Fu or prefecture, six if the households under assistance amenable to the Daily Life Security Law (hereinafter referred to as "the households under assistance" ) are not more than three hundred and ninety, and one shall be added for every sixty-five households under assistance; (2) In each office established by the city, three if the households under assistance are not more than two hundred and forty, and one shall be added for every eighty households under assistance; (3) In each office established by the town or village, two if the households under assistance are not more than one hundred and sixty, and one shall be added for every eighty households under assistance.

(Duties) Article 16. The chief of office and the staff of office stated under Article 14 paragraph 1 items (1) and (2) shall engage exclusively in the functions provided for in paragraphs 2 to 4 inclusive of the same Article; provided that, it is not prohibited that in the case of proviso to paragraph 1 of the same Article, the chief of office will carry out guidance and supervision of the actual services, or in the offices of welfare established by the town or the village, in cases where there is no hindrance to the execution of the duties of the staff of office engaging in the actual services, these staff of office will engage in the business of other social welfare services conducted by the town or the village concerned.

CHAPTER IV The Social Welfare Secretary

(Establishment) Article 17. To, Do, Fu and prefectures, and the cities shall have the social welfare secretaries. 2 Towns and villages may have the social welfare secretaries. 3 The social welfare secretaries under the preceding two paragraphs shall function in assisting the administrative matters of the governor of To, Do, Fu or prefecture or the mayor of city, town or village relative to the enforcement of this Law, the Daily Life Security Law, the Child Welfare Law and the Law for the Welfare of the Disabled Persons.

(Qualification requirements) Article 18. The social welfare secretaries shall be the administrative officials or the technical officials, and shall be persons aged twenty years or more, who are equipped with fine personality, mature thinking and strong interest in the promotion of social welfare, and further they shall be appointed from among those who fall under any of the following items: (1) Persons who have studied subjects related to social welfare as designated by the Minister of Welfare in universities under the School Education Law (Law No.26 of 1947), universities under the former University Ordinance (Imperial Ordinance No.388 of 1918), higher schools under the former Higher School Ordinance (Imperial Ordinance No.389 of 1918), or the specialized schools under the former Specialized School Ordinance (Imperial Ordinance No.61 of 1903), and graduated therefrom; (2) Persons who have completed the studies at any training agency or short course as designated by the Minister of Welfare; (3) Persons who have passed the social welfare workers'examinations as designated by the Minister of Welfare.

CHAPTER V The Guidance and Supervision, and Training

(Guidance and supervision) Article 19. The governors of To, Do, Fu and prefectures and the mayors of the cities coming under Article 155 paragraph 2 of the Local Autonomy Law shall formulate necessary plans in order to perform guidance and supervision over the execution of business by the personnel of office and its subdivisions relative to the enforcement of this Law, the Daily Life Security Law, the Child Welfare Law and the Law for the Welfare of Disabled Persons, and shall put such plans into effect.

(Training) Article 20. In order to develop the ability of the personnel engaging in the business related to the enforcement of this Law, the Daily Life Security Law, the Child Welfare Law and the Law for the Welfare of the Disabled Persons, necessary training shall be performed by the governors of To, Do, Fu and prefectures for the personnel of the offices and their subdivisions as well as of the cities, towns and villages, and further by the mayors of cities coming under Article 155 paragraph 2 of the Local Autonomy Law for the personnel of their offices and their subdivisions.

(Personnel to be in charge of execution of guidance and supervision or training) Article 21. The personnel in charge of execution of guidance and supervision or training as provided for in the preceding two Articles shall be the social welfare secretaries who have had experience of engaging in the business related to social welfare with the State or with the local public bodies for three years or more.

CHAPTER VI The Social Welfare Juridical Person

Section 1 The General Rules

(Definition) Article 22. "The social welfare juridical person" in this Law shall be the juridical person created under the provisions of this Law for the purpose of performing social welfare services.

(Name) Article 23. Persons who are not social welfare juridical persons shall not use as a part of their names the term "social walfare juridical person" or other terms liable to be confused with this term.

(Requirement) Article 24. The social welfare juridical person shall be equipped with assets necessary for the execution of social welfare services.

(Profitable business) Article 25. The social welfare juridical person may, in so far as the social welfare services operated by it are not impaired, engage in business aiming at profit-making, in order to use the profit thereof for the operation of the social welfare services. 2 The accounts related to the profit-making business stated in the preceding paragraph shall be kept separate from the accounts related to the social welfare services executed by the sociall welfare juridical person concerned, and shall be accounted for as a special account.

(Address) Article 26. The address of the social welfare juridical person shall be the location of its principal office.

(Registration) Article 27. The social welfare juridical person shall, in accordance with the provisions of Cabinet Order, register its establishment, new establishment of any branch office, change in matters already registered such as change of address of its offices, etc., dissolution, amalgamation, appointment or change of the liquidator, and the completion of liquidation, on each occasion. 2 Any matter which is required to be registered under the provision of the preceding paragraph may not be set up against the third person until the registration thereof has been effected. 3 The matters registered shall effect public notice at the Registry Office without delay.

(Provisions applying mutatis mutandis) Article 28. The provisions of Article 43 (Capacity of the juridical persons to enjoy right) and Article 44 (Capacity of the juridical person liable in offenses) of the Civil Code (Law No.89 of 1896) shall apply mutatis mutandis to the social welfare juridical person.

Section 2 The Establishment

(Application for approval) Article 29. The person who wishes to establish a social welfare juridical person, shall fix at least by the articles of incorporation the matters listed under each of the following items, and shall in accordance with the procedures fixed by the Ministry of Welfare Ordinance, obtain the approval of the Minister of Welfare on such articles of incorporation: (1) The object; (2) Total amount of assets; (3) Name; (4) The kind of social welfare service; (5) Location of office; (6) Matters relating to the officers; (7) Matters relating to meetings; (8) Matters relating to management of assets and accounting; (9) Matters relating to the board of councillors, if such is established; (10) In case any undertaking with the object of profit-making is executed, the kind thereof; (11) Matters relating to dissolution; (12) Matters relating to alteration of the articles of incorporation; (13) Method of public notice. 2 The officers at the beginning of establishment shall be stipulated by the articles of incorporation. 3 If a stipulation is set up relative to the person to whom the surplus assets are to revert in the matters stated in paragraph 1 item (11), such a person shall be so stipulated as to be selected from among the social welfare juridical persons or other persons engaging in social welfare services.

(Approval) Article 30. When an application is made for the approval as provided for in paragraph 1 of the preceding Article, the Minister of Welfare shall examine whether or not the assets of the social welfare juridical person making such application meet the requirement under Article 24, whether or not the contents of the articles of incorporation and the procedure of establishment violate the provisions of laws and orders, etc. and so shall determine on the approval of the articles of incorporation in question.

(Supplementing the articles of incorporation) Article 31. When the person wishing to establish a social welfare juridical person dies without fixing the matters listed under Article 29 paragraph 1 item (3) to item (13) inclusive, the Minister of Welfare shall, on the application of any person interested, or by authority of his post, fix these matters.

(Times of coming into existence) Article 32. The social welfare juridical person shall come into existence by completing registration for establishment at the locality of its principal office.

(Provisions applying mutatis mutandis) Article 33. The provisions of Article 41 (application with necessary modifications of provisions on gifts and testamentary bequest), Article 42 (Reversion of property given by way of endowment) and Article 51 paragraph 1 (Inventory of assets)(the part exclusively relating to the time of incorporation) of the Civil Code shall apply mutatis mutandis to the establishment of the social welfare juridical person. In this case, "as from the time when the permission for its creation is granted," in Article 42 paragraph 1 of the same Code shall read "as from the time when the social welfare juridical person came into existance."

Section 3 The Management

(Fixed number, term of office, appointment and disqualification of officers) Article 34. The social welfare juridical person shall have three or more directors and one or more supervisors as its officers. 2 The term of office of the officers shall not exceed two years;provided that the re-appointment is not prohibited. 3 Among the officers, with respect to each officer, the number of the officer, the spouse and relatives within the third degree thereof shall not exceed one-half of the total number of the officers. 4 The person who falls under any of the following items may not be appointed officer of the social welfare juridical person: (1) The person who has violated the provisions of the Daily Life Security Law, the Child Welfare Law, the Law for the Welfare of the Disabled Persons or this Law, and has been condemned to a penalty and has not completed, or is not yet free from undergoing the execution of such penalty; (2) The officer at the time of dissolution of the social welfare juridical person which has been ordered to dissolve by the order of dissolution issued by the Minister of Welfare under the provision of Article 54 paragraph 2.

(Filing the vacancy of officer) Article 35. When more than one-third of the fixed number of the directors or the supervisors have become vacant, the vacancy shall be filled without delay.

(The directors'power of representation) Article 36. The directors shall represent the social welfare juridical person in all the business of the social welfare juridical person; provided that, their power of representation may be restricted by the articles of incorporation.

(Determination of the business) Article 37. The business of the social welfare juridical person shall be determined by a majority vote of the directors, unless otherwise provided for by the articles of incorporation.

(Duties of the supervisors) Article 38. The supervisors shall perform the duties as listed under each of the following items: (1) To supervise the state of business conducted by the directors; (2) To supervise the state of assets of the social welfare juridical person; (3) When anything out of order is discovered as a result of the supervision over the state of business conducted by the directors or the state of assets of the social welfare juridical person, to make a report to that effect to the board of councillors (or in the case of absence of the board of councillors, to the Minister of Welfare); (4) When it is necessary in order to make the report stated in the preceding item, to request the directors to call the meeting of the board of councillors; (5) To state opinion to the directors on the state of business conducted by the directors or the state of assets of the social welfare juridical person.

(Prohibition on dual function by the supervisor) Article 39. The supevisor shall not be concurrently the director, member of the board of councillors or the personnel of the social welfare juridical person.

(The board of councillors) Article 40. In the socical welfare juridical person, there may be established a board of councillors. 2 The board of councillors shall be organized by the board members whose number shall exceed twice the fixed number of the directors. 3 It may be so provided for by the articles of incorporation, that the important matters of the business of the social welfare juridical person shall require the decision by the board of councillors.

(Alteration of the articles of incorporation) Article 41. The alteration of the articles of incorporation shall not take effect unless the approval of the Minister of Welfare is obtained. 2 The provision of Article 30 shall apply mutatis mutandis to the approval stated in the preceding paragraph.

(Accounting) Article 42. The fiscal year of the social welfare juridical person shall begin on April 1, and end on March 31 of the next year. 2 The social welfare juridical person shall prepare, within two months after the completion of each fiscal year, a report on undertaking, an inventory of assets, a balance sheet and a statement of income and expenditure, and keep the same in each of its offices at all times. 3 The directors shall submit the documents stated in the preceding paragraph to the supervisors.

(Provisions applying mutatis mutandis) Article 43. The provisions of Article 55 to Article 57 inclusive (Restriction on and delegation of power of representation;provisional director;special representative) of the Civil Code and Article 35 paragraph 1 (Jurisdiction of the Court) of the Law of Procedure in Noncontentious Matters (Law No.14 of 1898) shall apply mutatis mutandis to the social welfare juridical person. In this case, in Article 55 of the Civil Code, "by the articles of incorporation, by the act of endowment or by a resolution of the general meeting" shall read "by the articles of incorporation" and in Article 56 of the same Code, "the Court...... on the application of any person interested or of a public procurator" shall read "the Minister of Welfare...... on the application of any person interested or by authority of his post" .

Section 4 The Dissolution and the Amalgamation

(Causes of dissolution) Article 44. The social welfare juridical person shall be dissolved by any of the following causes: (1) The consent of two-thirds or more of the directors and if in addition the articles of incorporation require the resolution of the board of councillors, such resolution; (2) The happening of any cause of dissolution specified in the articles of incorporation; (3) The impossibility of completion of the undertaking which forms the object; (4) Amalgamation; (5) Bankruptcy; (6) Order for dissolution issued by the Minister of Welfare. 2 The dissolution by force of the cause listed under item (1) or item (3) of the preceding paragraph shall not take effect unless the approval or recognition of the Minister of Welfare has been given. 3 The liquidator shall, when the dissolution is effected by force of the cause listed under paragraph 1 item (2) or (5), file a notification to that effect to the Minister of Welfare without delay.

(Reversion of surplus assets) Article 45. The surplus assets of the dissolved social welfare juridical person shall, excepting the cases of amalgamation and bankruptcy, revert to the person to whom the property is to revert, as stipulated by the articles of incorporation, at the time notification is made to the Minister of Welfare of the completion of liquidation. 2 Any property which is not disposed of in accordance with the provision of the preceding paragraph shall revert to the National Treasury.

(Amalgamation) Article 46. The social welfare juridical person may be amalgamated with other social welfare juridical persons.

(Procedure of amalgamation) Article 47. In effecting the amalgamation of social welfare juridical persons, the consent of two-thirds or more of the directors, and, in addition, if the articles of incoporation require the resolution of the board of councillors, such resolution, shall be required. 2 The amalgamation shall not take effect unless the approval of the Minister of Welfare is obtained. 3 The provision of Article 30 shall apply mutatis mutandis to the approval stated in the preceding paragraph.

Article 48. The social welfare juridical person shall, when the approval of the Minister of Welfare as provided for in paragraph 2 of the preceding Article has been obtained, prepare an inventory of assets and a balance sheet within two weeks from the date on which the notification of such approval was made. 2 The social welfare juridical person shall, within the period of time stated in the preceding paragraph, give public notice to creditors that they may present objection, if any, during a fixed period of time, and further, give separate notice of the same effect to each known creditor;provided that such fixed period of time shall not be shorter than two months.

Article 49. When no creditor has presented objection to the amalgamation during the period stated in paragraph 2 of the preceding Article, it shall be considered that the amalgamation has been consented. 2 When the creditors present any objection, the social welfare juridical person shall satisfy their claims or furnish them with comparable security, or trust comparable property with a trust company or bank engaging in trust business for the purpose of furnishing satisfaction to the mortgagees.

Article 50. When a social welfare juridical person is to be created by amalgamation, business relating to the creation of the said social welfare juridical person, such as preparation of the articles of incorporation, etc., shall be attended to by the joint action of the persons selected by each social welfare juridical person.

(Effect of amalgamation) Article 51. The social welfare juridical person continuing to exist after amalgamation or the social welfare juridical person created by amalgamation shall succeed the entire rights and obligations of the social welfare juridical person which ceased to exist by the amalgamation (including the rights and obligations possessed by the said social welfare juridical person under such disposition as the approval, etc. of the administrative agencies concerning its undertaking).

(Time of amalgamation) Article 52. The amalgamation of social welfare juridical persons shall take effect by completion of registration at the locality of the principal office of the social welfare juridical person continuing to exist after the amalgamation or of the social welfare juridical person created by the amalgamation.

(Provisions applying mutatis mutandis) Article 53. The provisions of Article 70, Article 73 to Article 76 inclusive, Article 77 paragraph 2 (exclusively the portion relating to filing of report) and Article 78 to Article 83 inclusive (Dissolution and liquidation of the juridical person) of the Civil Code, as well as the provisions of Article 35 paragraph 2, Article 36, Article 37-(2), Article 136 to Article 137 inclusive, and Article 138 (Supervision over liquidation of the juridical person) of the Law of Procedure in Non-contentions Matters shall apply mutatis mutandis to the dissolution and liquidation of the social welfere juridical person. In this case, in Article 77 paragraph 2 and Article 83 of the Civil Code, "the competent authorities" shall read "the Minister of Welfare" .

Section 5 The Financial Aid and the Supervision

(General supervision) Article 54. The Minister of Welfare may, when he recognizes it as necessary in order to ascertain whether or not laws and orders, the disposition by the administrative agencies made on the basis of laws and orders as well as the articles of incorporation are observed, collect report from the social Welfare juridical person on the state of its business or accounting, or cause the personnel concerned to inspect the state of business and assets. 2 When the social welfare juridical person has violated laws and orders, the disposition by the administrative agencies made on the basis of laws and orders or the articles of incorporation, the Minister of Welfare may order dissolution;provided that he may do so only when the purpose of supervision is not attained by other means. 3 The Minister of Welfare shall, in ordering dissolution of the social welfare juridical person in accordance with the provision of the preceding paragraph, allow an opportunity for the social welfare juridical person in question to make explanations to the personnel designated by the Minister of Welfare. In the case, written notice shall be given to the social welfare juridical person in question in advance, stating the date, time and place for the presentation of explanations as well as the reasons for the disposition to be made. 4 The social welfare juridical person, which has received the notice stated in the preceding paragraph, may cause its agent to appear, and present evidences advantageous for itself. 5 The person who has listened to the explanations shall prepare written record of the explanations and a report with his opinion on the determination of the disposition, and submit those to the Minister of Welfare.

(Suspension of profit-making undertaking) Article 55. The Minister of Welfare may, when he recognizes the existence of any reason falling under any of the following items with respect to the social welfare juridical person engaging in undertakings the object of which is profitmaking in accordance whth the provision of Article 25 paragraph 1, order such social welfare juridical person to suspend such undertakings: (1) That such social welfare juridical person engages in undertakings other than those fixed by its articles of incorporation; (2) That such social welfare juridical person makes use of the profit accruing from such undertakings for the purpose other than the social welfare services performed by such social welfare juridical person; (3) That the continuation of such undertakings constitutes impediment to the social welfare services performed by such social welfare juridical person.

(Financial aid and supervision) Article 56. The State or the local public body may, when the social welfare service institutions operated by the social welfare juridical person have suffered damage caused by disaster, and when it recognizes the need for immediate restoration thereof, grant subsidies, or disburse loans, or transfer or lend other properties under conditions more advantageous than ordinary to such social welfare juridical person in accordance with the procedure provided for by Ministerial Ordinance or by-law of the local public body concerned; provided that, the application of the provisions of the National Property Law (Law No.73 of 1948) and Article 8 paragraph 1 (Restriction on the disposal of the properties of the local public bodies) of the Local Finance Law (Law No.109 of 1948) shall not bo precluded. 2 When the financial aid has been provided to the social welfare juridical person in accordance with the provision of the preceding paragraph, the Minister of Welfare or the chief of the local public body shall have the authority listed in each of the following items, in order to secure effective attainment of the purpose of such aid: (1) To obtain report on the state of business or of accounting; (2) In case it is recognized that the budget of the social welfare juridical person is inadequate in view of the purpose of the financial aid, to make advice that modification of such budget be made; (3) When the officer of the social welfare juridical person has violated laws and orders, disposition by the administrative agencies on the basis of laws and orders or the articles of incorporation, to make advice that such officer be discharged. 3 When the social welfare juridical person did not obey the disposition made in accordance with the provision of the preceding paragraph, the State or the local public body may order refund of all or part of the subsidy or loans provided, or the properties transferred or lent. 4 The provisions of Article 54 paragraph 3 to paragraph 5 inclusive shall apply mutatis mutandis to the case where the discharge is advised under the provision of paragraph 2 item (3) or the refund is ordered under the provision of the preceding paragraph.

CHAPTER VII The Social Welfare Service

(Establishment of institutions) Article 57. When the city, town or village (including the special ward;hereinafter the same in this Chapter) or social welfare juridical person intends to establish an institution to operate the first-type social welfare services, the report shall be filed before the commencement of the services with the governor of To, Do, Fu or prefecture where such institution (hereinafter referred to as the "social welfare institution" ) is established, as to the matters listed in each of the following items: (1) Name and kind of the institution; (2) Name or title, address, personal history and state of assets of the establisher; (3) By-law, articles of incorporation or other basic stipulations; (4) Scope and structure of the building or other equipments; (4) Expected date of commencement of the service; (6) Names and personal histories of the manager of the institution and the staff officers in charge of actual duties; (7) Methods of treatment of persons in need of care, etc. 2 The person other than the State, To, Do, Fu or prefecture, city, town or village, and the social welfare juridical person, shall, when he intends to establish the social welfare institution and operate the first-type social welfare services, oftain before the commencement of the services the permission of the governor of To, Do, Fu or prefecture where such institution is established. 3 The person who wishes to obtain the permission stated in the preceding paragraph, shall file an application with the competent governor of To, Do, Fu or prefecture, describing the matters stated in each of the following items in addition to the matters listed in each of the items of paragraph 1: (1) Methods of procurement and management of the fund with which the services are to be operated; (2) The state of assets of the manager of the institution; (3) Authority to use the building or other equipments; (4) Policy on fiscal management; (5) Disposition in the case of absence of the operator of the services or the manager of the institution. 4 The governor of To, Do, Fu or prefecture shall, on receipt of the application for permission stated in paragraph 2, conduct a screening on whether or not it meets the ninimum standards fixed by the Minister of Welfare under the provision of Article 60, and in addition screen such application by the standards listed in each of the following items: (1) There shall be financial basis necessary for the operation of the services concerned; (2) The operator of the services concerned shall be socially trustworthy; (3) The staff officers in charge of actual duties shall be equipped with experience, interest and ability concerning social welfare services; (4) The fiscal management of the services concerned shall be similar in nature to that of the social welfare juridical person so that it will be handled separately from other sorts of fiscal management, and so forth; (5) There shall be no intention of operating the services concerned for avoiding taxation or for other unjust purposes. 5 The governor of To, Do, Fu or prefecture shall, when he recognizes that the application meets the standards provided for in the preceding paragraph after the screening provided for in the same paragraph, grant permission for the establishment of the social welfare institution concerned. 6 The governor of To, Do, Fu or prefecture may, in granting the permission stated in the preceding paragraph, attach conditions which he recognizes as necessary in order to secure a proper operation of the services concerned.

(Alteration) Article 58. The person who has filed the report in accordance with the provision of paragraph 1 of the preceding Article shall, when any alteration has occurred in the matters stated in the report, file a report to that effect with the governor of To, Do, Fu or prefecture, within one month of the date of such alteration. 2 The person who has obtained the permission stated in paragraph 2 of the preceding Article shall, when he wishes to make alterations in the matters listed in paragraph 1 items (4), (5) and (7) of the same Article, and in paragraph 2 items (1), (4) and (5) of the same Article, obtain the permission of the governor of To, Do, Fu or prefecture concerned. 3 The provisions of paragraph 4 to paragraph 6 inclusive of the preceding Article shall apply mutatis mutandis to the case where the application is made in accordance with the provision of the preceding paragraph.

(Abolition) Article 59. When the person who is operating the social welfare services by filing the report under the provision of Article 57 paragraph 1 or by obtaining the permission under the provision of paragraph 2 of the same Article, wishes to abolish such services, a report to that effect shall be filed with the governor of To Do, Fu or prefecture concerned one month before the date of such abolition.

(Minimum standards of institutions) Article 60. The Minister of Welfare shall fix minimum standards which will be requisite on the scope and structure of the equipments of the social welfare institution and the methods of treatment of the persons in need of care, etc. 2 The establisher of the social welfare institution shall observe the standards stated in the preceding paragraph.

(Manager) Article 61. The social welfare institution shall have a full-time manager.

(Commencement of the first-type social welfare services which do not require institution) Article 62. When the city, town or village or the social welfare juridical person has started the first-type social welfare services which do not require institution, a report shall be filed with the governor of To, Do, Fu or prefecture of the place where the services are operated, stating the matters listed under each of the following items, within one month from the commencement of such services: (1) The title of the operator and the location of the principal office; (2) The kind and contents of services; (3) By-law, articles of incorporation or other basic stipulations. 2 The person other than the State, To, Do, Fu or prefecture, city, town or village, and the social welfare juridical person, shall, when he wishes to operate the first-type social welfare services which do not require institution, obtain before the commencement of the services the permission of the governor of To, Do, Fu or prefecture where the services are to be operated. 3 The person who wishes to obtain the permission stated in the preceding paragraph, shall file an application with the competent governor of To, Do, Fu or prefecture, stating the matters listed in each item of paragraph 1 and in Article 57 paragraph 3 items (1), (4) and (5). 4 The governor of To, Do, Fu or prefecture shall, on receipt of the application for permission stated in paragraph 2, screen it by the standards stated in each item of Article 57 paragraph 4. 5 The provisions of Article 57 paragraphs 5 and 6 shall apply mutatis mutandis to the case stated in the preceding paragraph.

(Alteration and abolition) Article 63. The person who is operating the social welfare services by filing the report under the provision of paragraph 1 of the preceding Article or by obtaining the permission under the provision of paragraph 2 of the same Article, shall, when the matters stated in the report or the matters stated in the application for permission have undergone alteration, file a report to that effect to the competent governor of To, Do, Fu or prefecture within one month of the date of such alteration. The same shall apply when the services have been abolished.

(The second-type social welfare services) Article 64. The person other than the State and To, Do, Fu or prefecture, shall, when he has started the second-type social welfare services, file a report to the governor of To, Do, Fu or prefecture of the place where the services are to be operated, stating the matters listed in each item of Article 62 paragraph 1, within one month of the date of the commencement of the services. 2 The person who has filed the report in accordance with the provision of the preceding paragraph shall, when the matters contained in the report has undergone alteration, file a report to that effect to the competent governor of To, Do, Fu or prefecture, within one month of the date of such alteration. The same shall apply when the services have been abolished.

(Investigation) Article 65. The governor of To, Do, Fu or prefecture may, in order to attain the purpose of this Law, request the person operating the social welfare services to submit reports on matters recognized as necessary, or cause the personnel concerned to inspect the institution, books, documents, etc., and otherwise the state of operation of the services.

(Order for improvement) Article 66. When it has come to be recognized that the institution of the person operating the social welfare services by filing the report as provided for in Article 57 paragraph 1 or by obtaining the permission as provided for in paragraph 2 of the same Article does not meet the minimum standards stated in Article 60, the governor of To, Do, Fu or prefecture may order the person operating such services to take necessary steps to conform with the standards of the same Article.

(Cancellation of permission, etc.) Article 67. When the person operating the social welfare services by filing the report as provided for in Article 57 paragraph 1, Article 62 paragraph 1 or Article 64 paragraph 1 or by obtaining the permission as provided for in Article 57 paragraph 2 or Article 62 paragraph 2, has violated the conditions under the provision of Article 57 paragraph 6 (including the case where the same applies mutatis mutandis under Article 58 paragraph 3 and Article 62 paragraph 5) or Article 69 paragraph 2, or has violated the provision of Article 58 paragraph 1 or 2, Article 63 or Article 64 paragraph 2, or has not responded to the request for report under the provision of Article 65, or has submitted a false report, or has refused, impeded or avoided the inspection or investigation by the personnel concerned as provided for in the same Article, or has violated the order under the provision of the preceding Article, or has unduly promoted personal gains through such services, or has engaged in an improper action concerning the treatment of the persons in need of care, etc., the governor of To, Do, Fu or prefecture may restrict such a person in the operation of the social welfare services, order suspension of such services or cancel the permission stated in Article 57 paragraph 2 or Article 62 paragraph 2. 2 When the person operating the social welfare services in violation of the provision of Article 57 paragraph 1 or 2, Article 62 paragraph 1 or 2, or Article 64 7 paragraph 1 has unduly promoted profits concerning such services, or has engaged in improper action concerning the treatment of the person in need of care, etc., the governor of To, Do, Fu or prefecture may restrict such a person in the operation of social welfare services or order the suspension of such services.

(Hearing) Article 68. The provisions of Article 54 paragraph 3 to paragraph 5 inclusive shall apply mutatis mutandis to the cases where the governor of To, Do, Fu or prefecture restricts, orders suspension of, or cancels the permission on, the social welfare services, under the provisions of the preceding Article.

(Collection of donations) Article 69. When the person who is or will be operating the social welfare services, wishes to collect donations in order to obtain fund necessary for the operation of such services, he shall obtain, one month in advance of the commencement of such collection, the permission of the governor of To, Do, Fu or prefecture who has jurisdiction over such area of collection (or of the Minister of Welfare in the case where the area of collection covers two or more of To, Do, Fu and prefectures), by submitting to him, in accordance with the procedure fixed by the Ministry of Welfare Ordinance, a written statement describing plainly, the period, area, method and use, etc. of the collection. 2 The permission stated in the preceding paregraph may be accompanied by conditions on the period of collection, use of the donations, and the disposal of property acquired through, the donations. 3 The person who has collected donations by obtaining the permission stated in paragraph 1, shall submit a report on the results of the collection, without delay after the period of collection is over, to the administrative agency from which the permission on collection has been obtained, in accordance with the procedure provided for by Ministry of Welfare Ordinance.

(Exception from application) Article 70. The provisions of Article 57 to Article 68 inclusive shall not apply to the institutions, for the establishment of which the permission or approval of the administrative agency, or the filing of report to the administrative agency is required under other laws.

CHAPTER VIII The Community Chest and the Social Welfare Conference

(Community Chest) Article 71." The Community Chest"in this Law shall mean the collection of donations conducted throughout the area of To, Do, Fu or prefecture as a unit, for the purpose of distributing such donations to the majority of the persons (excepting the State and local public bodies) operating in such area the social welfare services or rehabilitation works under the Law for the Immediate Aid to Offenders, etc.

(Community Chest Committee) Article 72. The services rendered through the Community Chest shall be the first-type social welfare services, regardless. of the provisions of Article 2. 2 The social welfare juridical person established for the purpose of conducting the Community Chest services shall be called the Community Chest Committee. 3 Any person other than the Community Chest Committee shall not undertake the Community Chest. 4 Any person other than the Community Chest Committees and the Federation thereof shall not use in their names the term "Community Chest Committee" or any other term liable to be Confused with this.

(Approval on Community Chest Committee) Article 73. The Minister of Welfare shall, in approving the establishment of the Community Chest Committee, conduct screening on the matters as listed in each of the following items, in addition to the matters provided for in Article 30: (1) The Social Welfare Conference should be in existence within the area covered by the Community Chest concerned; (2) The operation of the services should not be liable to be influenced by the will of a perticular person or persons; (3) The beneficiaries of the Community Chest should not be included among the officers or the members of the board of councillors; (4) The officers or the members of the board of councillors should be persons who represent fairly the opinion of the people in various walks of life within the area covered by the Community Chest concerned.

(Social Welfare Conference) Article 74. The Social Welfare Conference (hereinafter referred to as "the Conference" ) stated in item (1) of the preceding Article shall be an organization with the purpose of engaging in undertakings, as listed under each of the following items, in the area of To, Do, Fu or prefecture as a unit, participated in by the majority of persons operating social welfare services or rehabilitation works in such area: (1) Investigation on services aiming at social welfare; (2) Coordinated planning on services aiming at social welfare; (3) Coordination, adjustment and financial aid in services aiming at social welfare; (4) Promotional and informational activities on services aiming at social welfare. 2 The personnel of the administrative agencies concerned may become officers of the Conference or of the Federation thereof; provided that, they shall not exceed one-fifth of the total number of the officers. 3 The Conference shall not without due reasons refuse the application for participation when such is made by the persons operating social welfare services or rehabilitation works or the volunteers in the social welfare services.

(Period of Community Chest) Article 75. The Community Chest Committee may conduct the Community Chest once every year only within a period fixed by the Minister of Welfare.

(Publication and reporting of plans) Article 76. The Community Chest Committee shall, in conducting the Community Chest, consult in advance the opinion of the Social Welfare Conference, determine the goal of the Community Chest, the scope of beneficiaries and method of allocation, publish these and submit a report to the governor of To, Do, Fu or prefecture.

(Character of Community Chest) Article 77. The Community Chest shall be based on the voluntary cooperation of the donors.

(Allocation of Community Chest) Article 78. The Community Chest shall not be allocated to persons other than those who are operating services aiming at social welfare. 2 The State and the local public bodies shall not interfere with the allocation of the donations.

(Publication and reporting of the results) Article 79. When the allocation of the donations has been completed, the Community Chest Committee shall publish, within one month, the total amount collected, the names or titles of the beneficiaries and the amounts allocated, as well as submit a report to the governor of To, Do, Fu or prefecture.

(Dissolution order given to the Community Chest Committee) Article 80. The Minister of Welfare may issue an order for dissolution against the Community Chest Committee, not only in the case where the cause as stated in Article 54 paragraph 2 has arisen, but also in the case where it has come to be recognized that it does not conform with the standards as stated in each item of Article 73; provided that, this action shall be restricted to the case in which the purpose of supervision can not be achieved by other means.

(Prohibition on collection of donations by the beneficiaries) Article 81. The beneficiaries of the Community Chest shall not collect donations in order to obtain fund necessary for the operation of their undertakings during one year after they have received the allocation.

(Exception from application) Article 82. The provisions of Article 69 shall not apply to the Community Chest conducted by the Community Chest Committee.

(Federation) Article 83. The Community Chest Committees or the Conferences may respectively establish, for the entire nation as a unit, the Federation of Community Chest Committees or the Federation of Social Welfare Conferences, in order to achieve mutual liaison and coordination of ndertakings.

CHAPTER IX Miscellaneous Provisions

Article 84. The person coming under any of the following items shall be punished with penal servitude not exceeding six months or a fine not exceeding fifty thousand yen: (1) The person who violated the order for suspension provided for in Article 55, and continued the operation of his undertakings; (2) The person who violated the provision of Article 57 paragraph 2 or Article 62 paragraph 2; (3) The person who violated the restriction or the order for suspension as provided for in Article 67 paragraph 1 or 2, or the person who continued the operation of the social welfare services notwithstanding the cancellation of permission under the provision of paragraph 1 of the same Article; (4) The person who collected donations without obtaining the permission as provided for in Article 69 paragraph 1, or in violation of the conditions attached to the permission stated in paragraph 2 of the same Article; (5) The person who used the donations or disposed of the properties obtained therewith, in violation of the conditions as provided for under Article 69 paragraph 2.

Article 85. The person coming under any of the following items shall be punished with a fine not exceeding ten thousand yen: (1) The person who did not submit the report as provided for in Article 69 paragraph 3, or the person who made a false report; (2) The person who neglected the publication and the report as provided for in Article 76 or Article 79.

Article 86. In case any representative of the juridical person or proxy of the juridical person or of the person or employee or other workman thereof has committed any act mentioned in the preceding two Articles in connection with the business of the juridical person or the person, the juridical person itself or the person himself, in addition to the person who has so acted shall be liable to the fine described in the respective Articles;provided that the juridical person or the person shall be excepted in the case where it has been proved that the officers of the juridical person (meaning the directors, managing directors or other persons similar to these) or the person (or the legal proxy in the case where the person is incompetent) has not been neglecting a fair degree of caution in preventing the proxy of the juridical person or the person or the employee or other workman thereof from committing the act of violation in question.

Article 87. In the case coming under any of the following items, the director, the supervisor or the liquidator of the social welfare juridical person shall be punished with a fine not exceeding ten thousand yen: (1) When the registration in accordance with the provisions of the Cabinet Order based upon this Law has been neglected or when an untrue registration has been made; (2) When the keeping of the inventory of assets under the provision of Article 51 paragraph 1 of the Civil Code as applies mutatis mutandis in Article 33 has been neglected, or when the matters required to be entered on such inventory have not been entered or when an untrue entry has been made; (3) When the keeping of documents under the provision of Article 42 paragraph 2 has been neglected, or when the matters to be entered in such documents have not been entered, or when an untrue entry has been made; (4) When the provisions of Article 48 or Article 49 paragraph 2 have been violated; (5) When the application for adjudication of bankruptcy as provided for in Article 70 or Article 81 paragraph 1 of the Civil Code as applies mutatis mutandis in Article 53 has been neglected; (6) When the public notice as provided for in Article 79 paragraph 1 or Article 81 paragraph 1 of the Civil Code as applies mutatis mutandis in Article 53 has been neglected or when an untrue public notice has been given.

Article 88. The person who has violated the provision of Article 23 or Article 72 paragraph 4 shall be subjected to a noncriminal fine not exceeding five thousand yen.

(Executive order) Article 89. Excepting those especially provided for by this Law, regulations necessary for the procedures of enforcement of this Law and for the execution thereof shall be fixed by Ministry of Welfare Ordinance.