The Legislative Affairs Office of the State Council of China Wednesday made public a draft regulation on the management of state compensation funds to solicit public submissions.

Previously, the Ministry of Finance submitted the draft regulation to the State Council for approval.

According to the draft regulation, state compensation funds should be listed into the annual budget of governments, and if the due amount of state compensation surpasses the budget, governments should increase their budget to cover the difference.

The draft regulation also makes finance departments responsible for paying state compensation. They should pay due compensation within 15 working days after receiving the application.

The draft regulation specifies conditions under which compensation applicants, responsible government agencies, and the fund management agencies shall be punished, to prevent fraudulent compensation claims.

State compensation refers to compensation paid to citizens and organizations whose rights are violated by the state.

The draft regulation is available on the website www. chinalaw.gov.cn and public submissions will be accepted until Nov. 1, 2010.