Decree No. 50/CP Issuing the Regulation on the Establishment and Operation of Local Flood and Storm Prevention Funds

DECREE

Issuing the Regulation on the establishment and operation of local flood and storm prevention funds

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Flood and Storm Prevention Ordinance dated March 20, 1993;

Considering the proposal of the Minister of Agriculture and Rural Development,

DECREE:

Article 1.- Now hereby promulgating with this Decree the Regulation on the establishment and operation of local flood and storm prevention funds.

Article 2.- This Decree shall take effect fifteen days from the date of signature. All previous regulations contrary to this Decree are abolished.

The Minister of Agriculture and Rural Development, the Minister of Finance, and the Central Steering Committee for Flood and Storm Prevention have the responsibility to coordinate with relevant ministries and sectors to guide and inspect the implementation of the Regulation promulgated with this Decree.

Article 3.- Ministers, Heads of ministerial-level agencies, Heads of government agencies, and Chairpersons of provincial People's Committees directly under the central government are responsible for implementing this Decree.

REGULATIONS ESTABLISHMENT AND OPERATION OF LOCAL FLOOD AND STORM PREVENTION FUNDS
(Issued together with Government Decree No. 50/CP dated May 10, 1997)

Chapter 1:
GENERAL PROVISIONS

Article 1. Local flood and storm prevention funds are established through annual contributions by organizations and individuals residing in the locality in accordance with the provisions of the law.

Local flood and storm prevention funds accept all voluntary donations from organizations and individuals both within and outside the country.

Local flood and storm prevention funds do not include the Day Labor Public Welfare Fund.

Article 2. Local flood and storm prevention funds may only be used to support the repair of dykes and embankments; prevent and mitigate the consequences of floods and storms.

The use of the Fund must ensure compliance with its purpose and according to the prescribed financial regulations.

Strictly prohibited is the misuse of the Fund for any purpose under any form.

Article 3. Local flood and storm prevention funds are managed by the People's Committee of the province or centrally governed city for use at the local level and can be used to assist other affected areas when floods or storms occur. The Fund is subject to state financial management by the higher-level financial authority and is opened with a separate account at the State Treasury.

The balance of the Fund at the end of the year is carried over to the next year.

Article 4. Local flood and storm prevention funds are independent financial organizations, subject to management by the provincial or centrally governed city authorities, operating without profit motive. The Chairman of the People's Committee of the province or centrally governed city is responsible for managing the Fund and is the account holder.

Article 5. The establishment, mobilization, use, and management of local flood and storm prevention funds shall be implemented in accordance with the Accounting and Statistics Ordinance and the provisions of this Regulation.

Chapter II:
OBJECTS AND CONTRIBUTION LEVELS FOR LOCAL FLOOD AND STORM PREVENTION FUNDS

Article 6. The following entities are responsible for contributing to the local flood and storm prevention fund:

1. Vietnamese citizens: Male from 18 years old to 60 years old; Female from 18 years old to 55 years old.

2. All domestic and foreign economic organizations located in the locality.

Article 7. The following entities are exempted or temporarily deferred from contributing to the local flood and storm prevention fund.

1. Exempted from contribution:

a. War invalids, disabled veterans, and those entitled to benefits similar to war invalids and disabled veterans.

b. Parents, spouses of martyrs.

c. Military personnel serving in the armed forces receiving subsistence allowance.

d. Students and pupils studying full-time in universities, colleges, high schools, and vocational training institutions.

đ. Persons with reduced work capacity of 21% or more.

e. Members of poor households receiving poverty reduction fund assistance; households in mountainous, island, remote, and newly economic zones exempted from agricultural land use tax.

g. Public utility enterprises and agricultural cooperatives.

2. Temporarily deferred from contribution:

a. Members of rural households in disaster-stricken areas if exempted from agricultural land use tax.

b. Enterprises and economic organizations exempted or reduced from business income tax.

Article 8. Authority to decide on exemption and deferral and duration thereof.

1. Authority to decide on exemption and deferral:

a. The Chairman of the People's Committee of the district, county, town, or city under the province has the authority to decide on exemption and deferral for the objects specified in Clause 1 and Point a, Clause 2, Article 7 of this Regulation.

b. The Chairman of the People's Committee of the province or centrally governed city has the authority to decide on exemption and deferral for the objects specified in Point b, Clause 2, Article 7 of this Regulation.

2. Duration of exemption and deferral:

The examination and decision on exemption and deferral of contributions to local flood and storm prevention funds are conducted once a year at the time of setting the collection targets for the Fund. In cases where contributors have already paid into the Fund but are later granted temporary deferral, the amount paid will be deducted from their contribution for the following year.

Article 9. The annual contribution levels for local flood and storm prevention funds are stipulated as follows:

1. Citizens within the age range specified in Clause 1, Article 6 of this Regulation shall pay annually an amount equivalent to one kilogram of rice (for members of agricultural households) or two kilograms of rice (for other categories) based on the rice price used for agricultural land use tax at the time of collection.

2. Enterprises belonging to various economic components located in the locality shall pay annually two ten-thousandths of their total production and business capital, but not exceeding five million dong, which can be included in product cost or circulation fees.

Chapter III:
COLLECTION, MANAGEMENT, AND USE OF LOCAL FLOOD AND STORM PREVENTION FUNDS

Article 10. By January 15 each year, the People's Committee of the province or centrally governed city shall allocate collection targets for local flood and storm prevention funds to districts, counties, towns, and cities under the province based on the contribution levels for the objects specified in Clause 1, Article 9 of this Regulation.

The People's Committees of districts, counties, towns, and cities under the province shall organize the collection of the Fund in accordance with Clause 2, Article 9 of this Regulation and allocate collection targets to organizations at the commune, ward, and town level.

Funds collected and all voluntary donations from organizations and individuals both within and outside the country shall be deposited into the account opened at the local State Treasury.

Article 11. Local flood and storm prevention funds shall be allocated as follows:

1. 60% shall be deposited into the provincial or centrally governed city flood and storm prevention fund.

2. 40% shall be deposited into the district, county, town, or city under the province flood and storm prevention fund;

3. A percentage of 3% to 5% of the total revenue shall be used to pay remuneration to those directly involved in collecting funds at the commune, ward, and town level.

Article 12. The collection of funds must be accompanied by a receipt form issued according to a unified model by the Ministry of Finance. The receipt shall be made in two copies; one copy serves as the settlement voucher with the district-level financial authority, and the other copy replaces the receipt given to the person paying the money.

Article 13. The People's Committee of districts, counties, towns, and cities directly under provinces manages and uses the Flood and Storm Prevention Fund allocated by the People's Committee of the province or centrally-administered city.

Article 14. The local Flood and Storm Prevention Fund shall be implemented in accordance with Article 29 of the Ordinance on Flood and Storm Prevention and shall be used for the following purposes:

Training participants involved in dike protection.

Conducting drills for flood and storm prevention plans.

Supporting the handling of dike incidents (for all existing dike levels).

Patrolling and guarding dikes during the rainy and storm season.

Supporting the repair of schools, hospitals, health stations, and other public facilities in the locality to mitigate the consequences caused by floods and storms.

Purchasing necessary equipment for rescue and relief operations for victims of floods and storms.

Article 15. The Chairman of the People's Committee of centrally-administered provinces and cities decides on the level of support to mitigate the consequences; decides on the reallocation of the Flood and Storm Prevention Fund from one county to another and allocates funds from the Fund to assist other localities in mitigating the consequences of floods and storms.

Article 16. Local-level Flood and Storm Prevention Command Boards must report the results of collections and prepare the budget for expenditures for the year to be reviewed by the same-level People's Committee at the end of the first quarter each year.

All levels of People's Committees are responsible for reporting the final accounts of the local Flood and Storm Prevention Fund to the same-level People's Council and the higher-level People's Committee in accordance with current laws.

At the end of the year, the People's Committee of centrally-administered provinces and cities reports the final accounts of the local Flood and Storm Prevention Fund to the Central Steering Committee for Flood and Storm Prevention, the Ministry of Agriculture and Rural Development, and the Ministry of Finance.

Chapter IV:
REWARD AND VIOLATION HANDLING

Article 17. Organizations and individuals who have achievements in building, managing, and contributing to the local Flood and Storm Prevention Fund shall be rewarded according to the general system of the State.

Individuals who fail to fully fulfill their obligation to contribute to the local Flood and Storm Prevention Fund shall be required to make up the payment in accordance with the law.

If organizations do not pay their full contribution obligations as prescribed, the fund collection agency shall request the banking institution to transfer funds from the organization's account into the local Flood and Storm Prevention Fund account.

Article 18. Persons assigned the tasks of collecting, managing, and using the local Flood and Storm Prevention Fund who violate the provisions of this Decree shall be subject to disciplinary action or criminal liability, depending on the nature and severity of the violation, and if material damage is caused, they must compensate according to the law.