(2022.12.06-ны өдрийн орчуулга)                                                     Unofficial translation

MONGOLIA LAW

November 13, 2019                                                                                     Ulaanbaatar city

ON GOVERNMENT SPECIAL FUNDS

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purposed of the Law

1.1.The purpose of this law is to regulate the relations with respect to the establishment of types of special government funds, their formation and spending, and performance reporting and monitoring.

Article 2.Legislation on Special Government Funds

2.1.The legislations on special government fund consists of the Fiscal Stability Law, the Budget Law, the Law on Debt Management, the Law on Glass Accounts, this law and other laws and legal acts enacted in conformity with them.

2.2.If an international treaty, to which Mongolia is party, provides otherwise, the provision of such international treaty shall apply.

Article 3.Scope of the Law

3.1.Unless otherwise provided by law, this law shall apply to relations with respect to formation, spending, management, organization and monitoring of all government special funds.

3.2.The relations with respect to formation and spending of Social Insurance Fund, Health Insurance Fund, Social Welfare Fund, Employment Support Fund, Fiscal Stability Fund, Future Heritage Fund, Armed Forces Development Fund, State Road Fund, Cinema Art Support Fund, Vocational Education and Training Support Fund shall be regulated by a special law, and the general relations will be governed by this law.

/This paragraph was amended by the law as of January 29, 2021/

/This paragraph was amended by the law as of July 2, 2021/

Article 4.Definition of Legal Terms

4.1.The following terms used in this law shall be understood as follows:

4.1.1."Government special fund" /hereinafter referred to as "special fund"/ means a special budget account for financing specific functions and objectives of the Government;

4.1.2."repayable loan" means a transfer of the state budget, which is provided with the condition that it will be returned to the budget after a certain period of time;

4.1.3."source granted under the condition without repayment" means transfers from the state budget intended to finance current expenses and capital expenditure.

CHAPTER TWO

SPECIAL FUND AND ITS TYPES

Article 5.Establishment and liquidation of special funds and their types

5.1.The income and expenditure statement of special funds is a component of the performance report of the integrated budget of Mongolia.

5.2.A special fund shall be established and liquidated by law.

5.3.A special fund has the following types:

5.3.1.environment and Climate Fund

5.3.2.education loan fund

5.3.3.universal service obligation fund

5.3.4.crime victim compensation fund

5.3.5.small and medium enterprise development fund

5.3.6.Government reserve fund

5.3.7.armed Forces Development Fund

5.3.8.future heritage fund

5.3.9.cinema Arts Support Fund

5.3.10.vocational education and training support fund

5.3.11.social insurance fund

5.3.12.social Welfare Fund

5.3.13.culture and art support fund

5.3.14.sports support fund

5.3.15.budget Stability Fund

5.3.16.state road fund

5.3.17.assistance fund to Mongolian citizens living abroad

5.3.18.employment support fund

5.3.19.fund for agricultural development

5.3.20.science and technology fund

5.3.21.health promotion fund

5.3.22.health insurance fund

5.3.23.development Fund for National Broadcasting.

/This sub-paragraph was added by the law as of December 12, 2019/

5.3.24.children's Fund

/This sub-paragraph was added by the law as of April 8, 2021/

5.3.25.fund to support activities to combat and prevent alcoholism.

/This sub-paragraph was added by the law as of July 5, 2022 and shall be enforced on January 1, 2023/

5.4.Except for the sub-paragraphs of 5.3.4, 5.3.6, 5.3.8, and 5.3.15 of this law, the special fund shall finance activities included in the Government's action program.

/This paragraph was amended by the law as of December 17, 2021/

5.5.When establishing a new special fund, the following requirements specified in this law must be complied:

5.5.1.to ensure that a source of forming the special fund is clear;

5.5.2.to form the special fund from sources other than those specified in Article 6.1.1 of this law;

5.5.3.to carry out stable activities in the medium term;

5.5.4.to be impossible to implement it in the form of a program in the current year's budget of a general manager;

5.5.5.to ensure that it is not overlapped with activities of other special funds;

5.5.6.be based on relevant estimations and survey.

5.6.The special fund shall be liquidated on the following grounds:

5.6.1.a special fund has fulfilled its initial purpose;

5.6.2.a special fund is reorganized;

5.6.3.it was found that the operation of a special fund is failed or inefficient;

5.6.4.it fails to meet the requirements specified in Article 5.5 of this law;

5.6.5.it has violated legislations on special government funds.

5.7.The central state administrative body in charge of finance and budget issues shall review and make a conclusion whether the requirements specified in paragraph 5.5 of this law are satisfied or whether any grounds specified in paragraph 5.6 of the same law have been occurred.

5.8.If it is considered that the conditions for the establishment of a new special fund or its liquidation have been formed, such issue shall be solved by the State Great Khural upon the proposal of the Government.

5.9.A formation or spending of the special fund shall be planned and reported in accordance with the procedures stipulated in the Budget Law.

CHAPTER THREE

SOURCES AND SPENDING OF SPECIAL FUNDS

Article 6.General sources of special funds

6.1.The special fund consists of the following general sources:

6.1.1.state budget funds;

6.1.2.donation and assistance;

6.1.3.revenue earned from activities of a special fund;

6.1.4.interest income.

6.2.State budget funds specified in sub-paragraph 6.1.1 of this law are of the following types:

6.2.1.repayable loan;

6.2.2.sources provided without repayment conditions.

6.3.Donations or assistance specified in sub-paragraph 6.1.2 of this law are subject to donations or contributions and assistance provided by foreign countries and international organizations, as well as foreign and domestic enterprises, organizations, or citizens.

6.4.The income specified in sub-paragraph 6.1.3 of this law includes the income from the main and auxiliary activities of the special fund.

Article 7.Environment and Climate Fund

7.1.The Environment and Climate Fund aims to protect the environment, prevent natural disasters, and support climate change mitigation.

7.2.In addition to the provisions of Articles 6.1.2, 6.1.3, and 6.2.2 of this Law, funds of the Environment and Climate Fund consist of the following sources:

7.2.1.a fee for the issuance of a license for natural travel and tourism activities in specially protected areas and a one-time fee for work and services in specially protected areas;

7.2.2.revenue generated from water pollution fees specified in Article 3.1.32 of the Water law;

7.2.3.revenue generated from compensation for damage caused to the environment and natural resources by citizens, enterprises, or organizations;

7.2.4.proceeds from the sale of confiscated weapons, vehicles, and means of transport, machinery and equipment used to commit crimes and violations against the environment;

7.2.5.proceeds from the sale of natural resources prepared illegally;

7.2.6.revenue generated from air pollution fees specified in Article 3.1.14 of the Air Law;

7.2.7.charitable donation specified in Article 31.1 of the Law on Forest.
7.2.8.revenue of fees for the use of genetic resources and traditional knowledge related to genetic resources;

/This sub-paragraph was added by the law as of December 30, 2021/

7.3.The funds of the Environment and Climate Fund shall be spent to finance the following measures:

7.3.1.study an evolution and change of natural resources and environmental conditions, collect and process information, and implement projects and measures to issue a conclusion;

7.3.2.encourage activities of citizens, enterprises or organizations that have introduced advanced methods and non-toxic, pollution control, waste-free and energy-efficient technologies for environmental protection, proper use and restoration of its resources, reduction of harmful effects on the environment;

7.3.3.organize trainings and advertising to improve public education to prevent crimes against the environment;

7.3.4.support ecological education and trainings provided for in Article 56 of the Law on Environmental Protection;

7.3.5.finance expert and laboratory expenses or an evaluation or analysis that are necessary for the investigation of crimes against the environment;

7.3.6.support climate change mitigation and adaptation and reduction of greenhouse gases;

7.3.7.establish green spaces and parks;

7.3.8.provide supports to the implementation of integrated measures to reduce air and environmental pollution;

7.3.9.destroy rodents and harmful insects;

7.3.10.protect water, eliminate water pollution and ensure monitoring and restoration;

7.3.11.improve public education and support cognitive activities to reduce potential risks caused by natural disasters.

7.3.12.establish, research, protect and restore genetic resources, create a database and ensure registration of traditional knowledge related to genetic resources, and develop a genetic fund.

/This sub-paragraph was added by the law as of December 30, 2021/

7.4.The Government shall approve the organization of the environment and climate fund, its procedure for fund spending and monitoring.

Article 8.Educational loan fund

8.1.The educational loan fund aims to implement the government's policy of supporting citizens who meet certain criteria and requirements for higher education by providing financial support, scholarships, and loans for tuition fees.

8.2.Funds of the education loan fund consist of the sources specified in Article 6.1 of this law.

8.3.Funds of the education loan fund shall be used to finance tuition loans to citizens, other financial support measures established by laws, and expenses related to fund operations and fixed assets in accordance with the regulations approved by the government.

8.4.The government shall approve the procedure for spending and monitoring the funds of the education loan fund.

Article 9.Universal Service Obligation Fund

9.1.The Universal Service Obligation Fund, within the framework of government policy, is intended to deliver essential telecommunications services to populations in rural, distantly located and remote areas at real prices, to build new networks, and to introduce, expand, or renovate modern advanced telecommunication technology.

9.2.Funds of the Universal Service Obligation Fund shall consist of sources specified in sub-paragraphs 6.1.2 and 6.1.3 of this Law and funds collected by legal entities engaged in telecommunication services.

9.3.Funds to be collected from legal entities engaged in telecommunication services specified in sub-paragraph 9.2 of this Law shall be equal to 3 percent of the net income after taxes.

9.4.Funds of the Universal Service Obligation Fund shall be used to finance the measures specified in sub-paragraph 9.1 of this Law.

9.5.The operation and repair and maintenance of buildings built with the funds of the Universal Service Obligation Fund shall be the responsibility of a legal entity engaged in telecommunication services using the facility.

9.6.It is prohibited to provide any subsidies, incentives or support from the funds of the Universal Service Obligation Fund.

9.7.The Government shall approve the procedure for forming and spending the universal service obligation fund.

Article 10.Crime Victim Compensation Fund

10.1.The crime victim compensation fund aims to provide compensation to family members of persons who lost their lives due to crimes committed on the territory of Mongolia or victims suffered serious injury as a result of the crimes specified in Article 10.3 of this law.

10.2.In addition to the provisions of sub-paragraphs 6.1.1 and 6.1.2 of this law, the funds of the crime victim compensation fund consist of the following sources:

10.2.1.amount of funds equal to 60 percent of money paid to the budget upon execution of the fine imposed by the court.

10.2.2.payment for damages from a person who has been found guilty by the court of the crime specified in Article 10.3 of this law under the valid court decision.

10.3.The funds of the crime victim compensation fund shall be used to provide compensation with respect to the following damages specified in a valid court decision to family members of persons who lost their lives due to crimes, or victims suffered serious injury as a result of the crimes specified in Article 10.1 /Murder/, Article 11.1 /Deliberate infliction of a serious injury to health /, Article 11.4 / Deliberate infliction of a less serious injury to health/, Article 12.1/ Rape/, Article 12.3 /Sexual exploitation/, Article 13.1 /Human trafficking/, Article 13.2 /Kidnapping/, Article 13.3 /Taking a hostage/, Article 13.4 /Forced disappearance/, Article 15.3 /Illegal taking of human blood, tissues or organs/, Article 15.5 /Illegal abortion/, Article 16.1 /Involving children into criminal actions/, Article 16.3 / Abandonment, vagrancy of a child or deliberate action to get a child lost/, Article 16.6 /Child traffic/, Article 16.7 /Child maltreatment/, Article 16.11 / Violation of guardian's duties/, Article 17.2 /Robbery/, Article 19.3 / A deliberate encroachment on the life of a high ranking official of a state/, Article 21.12 /Torture/, Article 29.1 /Planning, preparing, unleashing or waging an aggressive war/, Article 29.8 /Acts of terrorism/:

10.3.1.medical costs;

10.3.2.funeral expenses;

10.3.3.incomplete wages and similar income received less due to disability.

10.4.An amount of compensation to be provided to the crime victim shall be determined by the valid decision of the court on compensating the damage by a guilty party.

10.5.The Government shall approve the procedure for compensating crime victims from the Crime Victim Compensation Fund.

Article 11.Government's Reserve Fund

11.1.The government's reserve fund aims to finance an insufficient part of expenses for disaster protection measures of a state and local budget in order to organize activities step by step to eliminate any harmful effects of disasters specified in sub-paragraph 4.1.15 and activities to reduce a risk of disasters specified in sub-paragraph 4.1.8 of the Law on Disaster Prevention, and any immediate measures that cannot be foreseen or planned in the current year's budget.

/This paragraph was amended by the law as of May 14, 2020/

11.2.The government's reserve fund consists of the sources specified in sub-paragraphs 6.1.1 and 6.1.2 of this law.

11.3.The total amount of funds to be collected in the government's reserve fund shall not exceed 1 percent of the planned gross domestic product for the fiscal year.

11.4.The central state administrative body in charge of finance and budget issues shall plan an amount of funds to be collected from the state budget to the Government reserve fund in a given year in consideration of any researches and forecasts for the performance of expenses incurred in the previous year for the purposes specified in sub-paragraph 11.1 of this law and any potential natural and climate changes, fluctuations in the prices of export and import products in the world market and future prospects, and the possibility and capacity of the budget revenue.

11.5.Funds of the Government Reserve Fund shall be used to finance the following measures:

11.5.1.to reduce damage, limit a spread, eliminate consequences or mitigate a risk in the event of a general nuclear or radiological accident or any disaster or dangerous phenomenon as specified in the Law on Disaster Prevention;

/This sub-paragraph was amended by the law as of May 14, 2020/

11.5.2.to stop failures or eliminate damages in case of major technical accidents, such as damage to buildings, lines, networks, and equipment, destruction of vehicles, leakage of radioactive and toxic chemicals specified in the law on Disaster Prevention due to violation of production and technological procedures;

11.5.3.to eliminate the damage incurred to health, life, property of many people, and environment due to terrorist activities or explosions;

11.5.4.to implement a decision of the State Great Khural and the Government approved in the middle of the budget year in relation to the financing of measures specified in Article 11.1 of this law;

11.5.5.to bear any costs required for compliance with decisions issued by international courts or arbitrations and/or when the Government has been sued as a defendant;

11.5.6.to pay taxes, payments or fees that are not included in the current year's budget to be paid by Mongolia according to international agreements;

11.5.7.to pay expenses required for special re-election or public opinion referendums.

/This sub-paragraph was added by the law as of December 20, 2019/

11.6.The Government shall approve the procedure for spending and monitoring the funds of the Government's reserve fund.

Article 12.Armed Forces Development Fund

/This article was invalidated by the law as of January 29, 2021/

12.1.The Armed Forces Development Fund shall have a purpose to support the implementation of the Armed Forces Development Program and  improve the capacity of fulfill the duties of the Armed Forces.

12.2.In addition to the provisions of Articles 6.1.1 and 6.1.2 of this Law, funds of the Armed Forces Development Fund shall consist of the following sources:

12.2.1.appropiate part of compensation for participation in peace supporting activities determined by the Government;

12.2.2.compensation of basic and supplementary weapons, technical devices, equipment and materials being used by the Armed Forces of Mongolia in peace supporting activities;

12.2.3.income from sale of certain types of technics that have been decommissioned by removing from armament;

12.2.4.profit earned from the participation of military army, division, unit in nationwide construction development;

12.2.5.compensation of peace supporting training and preparation;

12.2.6.income from donations and assistance provided based on the framework of military and military-technical cooperation with foreign countries.

12.3.The funds of the Armed Forces Development Fund shall be spent to finance the following measures:

12.3.1.to increase the capacity of the armed forces to participate in peace supporting activities;

12.3.2.to provide training and preparation of armed forces manpower in order to participate in counter-terrorist special operations, to ensure the safety of human and the environment in the event of occurrence of a disaster, dangerous phenomenon, or accident, or when danger arises, and/or in the performance of other diversified duties as specified in the Law on Disaster Protection and to support of local security operations;

12.3.3.to restore and improve the armaments and technics of armed forces and strengthen the training material base;

12.3.4.to fund other activities related to participation in peace supporting operations.

12.3.5.to organize peace supporting operations and humanitarian training in Mongolia;

12.3.6.to improve the social security of officer cadets, captains, employees, and civil servants working in the defense sector;

12.3.7.to fund at least 70 percent of the income, other than donations and assistance designated for the purpose according to the provisions of the international agreement of the Armed Forces Development Fund with the purposes specified in Articles 12.3.1, 12.3.2, 12.3.3, 12.3.4, and 12.3.5 of this Law;

12.3.8.to provide a one-time grant to the family according to the Law on Pensions and Benefits for Military Serviceman in case of the loss of life of a military serviceman being participated in peace supporting operations.

12.4.The income and its spending specified in Article 12.2.6 of this law shall be referred to the classification of secret specified in the Law on State and Official secret in the connection with terms and conditions of the contract concluded with the given country.

12.5.The Government shall approve the procedure for formation and spending of the funds of the Armed Forces Development Fund.

Article 13.Culture and Art Supports Fund

13.1.The culture and arts supports fund aims to develop and promote culture and art, to register, study, protect, restore, and promote cultural heritage.

13.2.Funds of the Culture and Art Support Fund consist of the sources specified in Article 6.1 of this law.

13.3.Funds of the Culture and Art Support Fund shall be used to finance the following activities:

13.3.1.to protect, restore, and promote cultural heritage, and create and enrich an integrated database;

13.3.2.to implement projects and programs to create new works of art and literature and make them available to the public;

13.3.3.to create works of national traditional and classical artworks with budget funds;

13.3.4.to support the production of audio recordings, the publication of books, and the publication of professional newspapers and magazines promoting cultural heritage, national culture, and art abroad and locally;

13.3.5.to hold cultural and artistic performances, organize exhibitions of historical and cultural monuments and works of art abroad and locally;

13.3.6.to create works of art and organize cultural and artistic events for children to teach about art and aesthetics;

13.3.7.to purchase equipment, tools or musical instruments that are especially necessary for cultural and artistic organizations;

13.3.8.to purchase the best works of music, visual arts, and book publishing in the state fund;

13.3.9.to ensure participation of artists in international cultural and art festivals, competitions, exhibitions, and book fairs, and to award cultural workers and artists who have made special achievements in such events;

13.3.10.to glorify business entities, organizations, and citizens who have contributed to the development of national culture and art and the preservation and protection of cultural heritage;

13.3.11.to provide financial support for the training of Mongolian researchers, and the selection, publication, and promotion of the best works of Mongolian researchers and scientists.

13.4.The Government shall approve the procedures for spending and monitoring funds of the Fund for Culture and Art.

Article 14.Sports Support Fund

14.1.The sports support fund aims to engage the population in public physical activity and active movements, prepare high-level athletes and coaches under the scientific basis, develop national sports, implement anti-doping control at national competitions and festivals, and organize training and promotion of anti-doping activities, and conduct research and analysis in the field of physical education and sports.

14.2.Funds of the Sports Support Fund consist of the sources specified in sub-paragraphs 6.1.2, 6.1.3, and 6.2.2 of this law.

14.3.Funds of the Sports Support Fund shall be used to finance activities specified in Article 14.1 of this law.

14.4.The government shall approve the procedure for spending and monitoring funds of the sports support fund.

Article 15.Budget Stabilization Fund

15.1.The Budget Stabilization Fund will act as a financial instrument to ensure medium and long-term balance and stability of the integrated budget and implement a balanced budget regime.

15.2.Funds of the Budget Stabilization Fund consist of the following sources:

15.2.1.budget revenue exceeding the balanced budget revenue determined under the conditions specified in the Fiscal Stability law;

15.2.2.revenue of the balanced budget;

15.2.3.unspent free sources of the government's reserve fund of the previous year;

15.2.4.revenue generated from financial activities of the Budget Stabilization Fund;

15.2.5.other revenues.

15.3.Funds from the Budget Stabilization Fund may be transferred to the state budget for the following purposes:

15.3.1.to compensate the cuts of budget revenue caused by the difference between the balanced price and the market price from the funds that are previously accumulated in the Budget Stabilization Fund of the main types of mineral resources of which the price and physical volume is decreased from the planned, if a budget revenue decreases due to unforeseen circumstances and a budget balance is reduced by 4 percent of the gross domestic product from the approved amount;

15.3.2.to provide additional sources of budget financing generated due to the events specified in Article 8 of the Fiscal Stability Law;

15.3.3.to compensate the cuts of budget revenue caused by the difference between the balanced price and the market price from the funds that are previously accumulated in the fund of the main types of mineral resources of which the price and physical volume is decreased from the planned, if the market price of the main types of mineral resources is lower than the balanced price in the budget and the physical volume of export of the main types of minerals is reduced by 20 percent from the physical volume included in the budget;

15.3.4.to cover the budget deficit of that year.

15.4.The Government shall issue a decision to compensate the difference specified in Article 15.3.1 of this law and reflect it in the budget performance.

15.5.In the event that the funds of the Budget Stabilization Fund are not sufficient to fully finance the budget deficit specified in 15.3.1 of this Law, the Government may borrow a loan within the limits specified in 6.1.4 of the Fiscal Stability Law for the purpose of financing the deficit.

15.6.The central state administrative body in charge of finance and budget issues shall implement the management of financial resources aimed at keeping the liquidity of funds of the budget stabilization fund for financing for the purposes specified in Article 15.3 of this law, protecting against risks, and making efficient investments in the international financial market.

15.7.The implementation of the management of financial resources specified in Article 15.6 of this law shall be reflected in the consolidated budget performance of Mongolia and the consolidated financial report of the Government and presented to the State Great Khural.

15.8.The Government shall approve the procedure for spending and monitoring the funds of the budget stabilization fund.

Article 16.Small and Medium Enterprise Development Fund

16.1.The Small and Medium Enterprise Development Fund aims to support activities of small and medium enterprises.

16.2.Funds of the Small and Medium Enterprise Development Fund consist of the sources specified in Articles 6.1 and 16.4 of this Law.

16.3.In consideration of the actual growth of small and medium-sized industries and changes in the currency exchange rate, an amount of additional loans from the state budget to the fund and loan amount from loan repayments in the current year shall be reflected in a budget of the current year and approved by State Great Khural based on the proposal of the Government.

16.4.The Small and Medium Enterprise Development Fund may be allocated from the local budget, and its amount shall be reflected in a local budget of the current year and approved by the Citizens' Representatives meeting of the province, soum, the capital and city and district.

/This paragraph was amended by the law as of April 22, 2022/

16.5.The sources specified in 16.4 of this Law shall be used for local activities specified in 16.1 of this Law.

16.6.Funds of the Small and Medium Enterprise Development Fund shall be used to finance the following activities:

16.6.1.to provide a soft loan to support small and medium enterprises;

16.6.2.to provide loan interest subsidies to small and medium producers if they export their products;

16.6.3.to provide business and incubation advice or information, and ensure training and refresher training for small and medium-sized enterprises;

16.6.4.to support research and analysis in the small and medium production;

16.6.5.to organize and support national and international exhibitions, trade fairs and conferences for small and medium enterprises;

16.6.6.to provide equipment financial leasing services aimed at supporting small and medium enterprises purchased with state budget funds, if necessary;

16.6.7.to finance activities specified in Article 24.7 of this law;

16.6.8.to finance activities and expenses related to principal and debt settlement, and expenses related to fixed assets of the small and medium enterprise development fund.

16.7.The Government shall approve the procedure for granting soft loan specified in 16.6.1 of this Law, its selection, lending, repayment, and monitoring.

16.8.In the event that the soft loan specified in 16.6.1 of this law is granted through a bank, it shall be granted through a bank that regularly operates and has a branch in the local area that meets the appropriate ratio criteria.

16.9.In addition to the provisions of Article 16.8 of this law, additional requirements and conditions for banks may be established by the central state administrative body in charge of financial and budgetary matters.

Article 17.Fund of Assistance to Mongolian Citizens Living Abroad

17.1.The Fund of Assistance to Mongolian Citizens Living Abroad aims to protect the rights and legitimate interests of citizens living, working and studying abroad, and providing immediate legal assistance in case of violation of their rights, and improve access to and quality of civil state registration, notary and consular services.

17.2.Funds of Fund of Assistance to Mongolian Citizens Living Abroad shall consist of sources specified in 6.1.2 and 6.2.2 of this Law.

17.3.Funds of the Fund of Assistance to Mongolian Citizens Living Abroad will be used to finance the following activities:

17.3.1.to preserve and cremate or return corpse and cremains of a deceased to his/her homeland or to bury them in the country if the family of a citizen who died abroad does not bear any cost to bring his/her corpse or cremains to his/her homeland, or if his/her family and relatives have not been found or determined;

17.3.2.to provide medical care to a citizen or repatriate citizens who have been exposed to extremely dangerous natural disasters, terrorism, armed conflicts, or who have suffered severe injuries or have mental illness, or whose lives are in danger abroad due to accidents or crimes;

17.3.3.to return a citizen to his/her home country who is serving a prison sentence abroad or has been released from forced detention if he/she does not bear the cost to return to his/her home country;

17.3.4.to repatriate a citizen who is insolvent due to criminal damage or loss of property;

17.3.5.to provide national foreign passports or repatriation cards and other services related to repatriation to citizens specified in Articles 17.3.1, 17.3.2, 17.3.3, and 17.3.4 of this law;

17.3.6.to hire lawyers or translators required to engage the relevant legal and investigative bodies of the country to inspect and review issues related to citizens who have been victimized by crimes abroad, and to protect their interests;

17.3.7.to visit a citizen who is serving a prison sentence abroad from the diplomatic representative;

17.3.8.to pay fees for the translation of legal assistance requests and relevant documents to be delivered to foreign countries from the authorized government organizations of the Mongolian side as stipulated in the international agreement on mutual legal assistance concluded with foreign countries.

17.4.The Government shall approve the procedure for spending and monitoring funds of the Fund of Assistance to Mongolian Citizens Living Abroad.

Article 18.Science and Technology Fund

18.1.The science and technology fund aims to support the execution of theoretical basic research in leading areas of science and technology, the implementation of scientific, technological and innovation projects and measures, the introduction of the results of scientific work into production and services.

18.2.Funds of the Science and Technology Fund consist of the sources specified in 6.1.1, 6.1.2, and 6.1.3 of this Law.

18.3.Funds of the Science and Technology Fund shall be used to finance the following activities:

18.3.1.to carry out basic theoretical research of science and technology priorities;

18.3.2.to provide grants for the implementation of science and technology projects ordered by the government/state/;

18.3.3.to introduce the results of scientific research into production and services;

18.3.4.to implement innovation projects, ensure start-up financial support, and provide support to technology and production testing and orientation;

18.3.5.to finance expenses related to the operations and funds of the Science and Technology Fund;

18.3.6.to provide support for international promotion and sales of products and services created as a result of science and innovation.

18.4.Funds of the Science and Technology Fund shall not grant any subsidies or incentives.

18.5.The Government shall approve the procedures for awarding grants from the Science and Technology Fund, and spending or monitoring the funds.

Article 19.Health Promotion Fund

19.1.The Health Promotion Fund aims to support the organization of health information, training, promotion or advertising, advocacy, and surveillance research.

19.2.In addition to the sources specified in Articles 6.1.2 and 6.2.2 of this law, funds of the Health Promotion Fund consist of the following sources:

19.2.1.one percent of the excise tax from alcoholic beverages;

19.2.2.two percent of the customs and value-added tax from the import of drugs;

19.2.3.funds equal to 2 percent of tobacco excise tax.

19.3.Funds of the Health Promotion Fund shall be used to finance measures for the organization of health information, training, advertising, advocacy, and surveillance research in the following areas:

19.3.1.preventing non-communicable diseases;

19.3.2.preventing infectious diseases;

19.3.3.protecting the environmental health;

19.3.4.preventing accidents or injury, creating a healthy and safe living environment;

19.3.5.protecting mental health, and preventing toxic effects of alcohol, tobacco and drugs substances;

19.3.6.promoting the proper use of medicines;

19.3.7.improving the ethics of medical professionals, the transparency and responsibility of healthcare organizations.

19.4.Funds of the health Promotion Fund shall not grant any subsidies or incentives.

19.5.The Government shall approve the procedure for spending and monitoring funds of the Health Promotion Fund.

Article 20.Cinematography Support Fund

/This article was invalidated by the law as of July 2, 2021/

20.1.The Cinematography Support Fund shall have a purpose to support the development, production, promotion and distribution of cinematography.

/This paragraph was invalidated by the law as of July 2, 2021/

20.2.The funds of the Cinematography Support Fund shall consist of sources specified in Article 6.1 of this law.

/This paragraph was invalidated by the law as of July 2, 2021/

20.3.The funds of the Cinematography Support Fund shall be spent to finance the following measures:

/This paragraph was invalidated by the law as of July 2, 2021/

20.3.1.to provide soft loan for Mongolian and joint film production;

/This sub-paragraph was invalidated by the law as of July 2, 2021/

20.3.2.to support the improvement of film production and infrastructure;

/This sub-paragraph was invalidated by the law as of July 2, 2021/

20.3.3.to provide with support in participating in international film festivals and exhibitions with Mongolian films and organizing international film festivals in Mongolia;

/This sub-paragraph was invalidated by the law as of July 2, 2021/

20.3.4.to support the creation of feature and documentary film and children's and youth films at the order by the state;

/This sub-paragraph was invalidated by the law as of July 2, 2021/

20.3.5.to support the organization of human resources development and specialization activities in the film industry.

/This sub-paragraph was invalidated by the law as of July 2, 2021/

20.4.The Government shall approve the procedure for spending the fund of the Cinematography Support Fund, granting soft loan, selection, repayment and monitoring thereof.

/This paragraph was invalidated by the law as of July 2, 2021/

Article 21.Agricultural Support Fund

21.1.The Agricultural Support Fund aims to support agricultural and animal husbandry activities.

21.2.Funds of the Agricultural Support Fund shall consist of the sources specified in Article 6.1 of this Law.

21.3.Funds from the Agricultural Support Fund will be used to finance the following activities:

21.3.1.to grant discounted loans for the following purposes;

21.3.1.a.development of irrigation field, construction and restoration of irrigation systems;

21.3.1.b.development of arable farming of grown plants;

21.3.1.c.modernization of agricultural techniques and technologies.

21.3.2.to rehabilitate farmland and improve soil fertility;

21.3.3.to buy and sell wheat from agricultural producers that meets standard requirements;

21.3.4.to maintain fixed assets of the Agricultural Support Fund;

21.3.5.to conduct research related to determination of grazing capacity and wintering of animals;

21.3.6.to restore wells and create new water points;

21.3.7.to finance activities and expenses related to principal and debt settlement, and expenses related to fixed assets of the Agricultural Support Fund.

21.4.The Agricultural Support Fund shall not lend livestock.

21.5.The Government shall approve the procedure for granting soft loan specified in 21.3.1 of this Law, its selection, lending, repayment, and monitoring.

21.6.The soft loan specified in 21.3.1 of this law is granted through a bank that regularly operates and has a branch in the local area that meets the appropriate ratio criteria.

Article 21.Broadcasting Development Fund

/This article was added by the law as of December 12, 2019/

211.1.Funds of the Broadcasting Development Fund consist of the following sources:

211.1.1.state and local budget;

211.1.2.donation funds of domestic enterprises;

211.1.3.other sources.

211.2.Funds of the fund specified in Article 211.1 of this law shall be used to finance the following activities:

211.2.1.to deliver broadcasting services to people in remote without internet access;

211.2.2.to prepare and deliver national historical, cultural, traditional and children's and educational programs that are expensive to produce;

211.2.3.to support the production of broadcast radio and television programs.

211.3.The Government shall approve the charter of the Broadcasting Development Fund and the procedure for spending its funds.

Article 212.Children's Fund

/This article was added by the law as of April 8, 2021/

212.1.The Children's Fund aims to support the development, protection and participation of children and the development works for children.

212.2.In addition to those specified in 6.1.1 and 6.1.2 of this law, funds of the Children's Fund consists of the following sources:

212.2.1.sales revenue of attractive vehicle registration/plate numbers;

212.2.2.revenue from cultural, artistic and sports performances supporting development for children;

212.2.3.others.

212.3.Funds of the Children's Fund will be used to finance the following activities:

212.3.1.to support development for children with financing;

212.3.2.to reward children who have achieved success in cultural, artistic, and sports competitions and festivals in many countries, continents, and the world;

212.3.3.to support children with disabilities who are eligible to participate or are preparing to participate in cultural, art, and sports competitions and festivals in many countries, continents, and the world.

212.4.The government shall approve the procedures for spending and monitoring the funds of the Children's fund.

Article 213.Funds for Supporting Activities to Combat and Prevent Alcoholism

/This article was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.1.The fund for supporting activities to combat and prevent alcoholism aims to finance activities to combat and prevent alcoholism.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.The following activities will be financed:

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.1.to fight against alcoholism and publicize its harmful effects;

/This sub-paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.2.50 percent of the cost of responsible alcohol service training;

/This sub-paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.3.to deliver the necessary assistance and services to the population aimed at combating the detrimental effects of intoxication, drug addiction and screen time;

/This sub-paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.4.to increase access to buildings, equipment and other assistance and services for persons who have consumed excessive alcohol;

/This sub-paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.2.5.other activities against detrimental effects and consumption of alcohol and fighting against alcoholism,

/This sub-paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.3.The income of MNT 300 per liter of taxed alcoholic beverages from the performance of tax revenue collected in accordance with Article 6.11 of the Law on Excise shall be collected from time to time to the fund for supporting activities to combat and prevent alcoholism.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.4.Members of the Government in charge of finance, budget and legal affairs shall jointly approve the procedure related to the collection of funds from the performance of excise revenue to the fund for the support of alcoholism prevention and control activities as specified in Article 213.3 of this law.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.5.Funds of the fund for supporting activities to combat and prevent alcoholism shall be used to finance the activities specified in Article 213.1 of this law.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

213.6.The government shall approve the charter of the fund for supporting activities to combat and prevent alcoholism, the composition of its Board of Directors, its operation procedure, and the procedures related to the collection, formation and spending of funds of the fund.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

CHAPTER FOUR

MANAGEMENT AND FINANCING OF THE SPECIAL FUND

Article 22.Management and organization of special fund

22.1.The source of the special fund is placed in the integrated account of the state fund.

22.2.Unless otherwise specified in the law, members of the Government in charge of finance, budget and legal affairs shall jointly implement activities to manage the free cash flow of the special fund specified in sub-paragraphs 5.3.8., 5.3.11., 5.3.12., 5.3.15, 5.3.22 of this law in a way that minimizes a financial risk.

22.3. It is prohibited to establish an office for a special fund except as specified in 5.3.2, 5.3.5, 5.3.19, 5.3.20, and 5.3.25 of this law. The government shall approve the number of positions in the office.

/In this paragraph, "Article 5.3.20" was changed to "Article 5.3.20, Article 5.3.25" by the law as of July 5, 2022, and shall enter into force on January 1, 2023/

22.4.The special fund specified in Article 5.3.5 of this law may have a debt and receivables collection unit in order to settle overdue debts and receivables.

22.5.A general manager of the relevant budget shall be responsible for managing the formation and spending of the special fund, and monitor and report in accordance with the procedures specified in this law.

22.6.An amount of funds planned to be collected in the special fund by the general budget manager as specified in this law shall be reviewed by the central state administrative body in charge of finance and budget matters as per the procedures specified in the Budget Law, and shall be included in the statement of the budget framework for the current year and the state budget draft.

Article 23.Form of financing from the special fund

23.1.Based on the decision of the member of the Government in charge of the related issues, the funding of projects, programs and activities to be implemented with the funds of the special fund specified in 3.2 of this law and a special fund other than those specified in 5.3.2, 5.3.5, 5.3.6, and 5.3.19 of this law based shall be granted in the following form:

23.1.1.financing by performance upon provision of an advance or financing in stages in line with the specifics of works or service and an amount of capital required;

23.1.2.financing directly or financing fully one time after completion of works and services.

23.2.The central state administrative body in charge of finance and budget issues shall determine the form of financing in consideration of the characteristics of projects, activities, works and services to be financed with the funds of the government's reserve fund, and an amount of funds to be spent.

23.3.Funds to be granted from the government's reserve fund shall not be transferred directly to the current account of the government or non-government organizations or individuals implementing the project, activities or work and services.

23.4.Loan financing provided by the special fund specified in 5.3.5 and 5.3.19 of this law shall be granted in connection with the implementation of the project or be provided upon the purchase or project completion by the borrower.

23.5.Funding of the special fund shall be carried out in accordance with the procedures specified in the Budget Law.

23.6.The special fund specified in sub-paragraphs 5.3.2, 5.3.5, 5.3.18, and 5.3.19 of this law shall grant a loan to persons who do not have outstanding loans in the unified debt database or overdue loans in the credit information database specified in Article 39 of the Law on Debt Management.

CHAPTER FIVE

MANAGEMENT AND FINANCING OF THE SPECIAL FUND

Article 24.Special Fund Reporting and Transparency

24.1.A general budget manager shall prepare a half-yearly and full-year report on the spending of the special fund and reflect in a statement specified in in Article 54 of the Budget Law and submit it to the central state administrative body in charge of financial and budget issues.

24.2.Information on spending, performance, financed projects and measures of the special fund, together with relevant decisions, shall be integrated and publicly reported in the month in which the decision was made, and be reported regularly through the website of an organization and the glass account system within the term specified in the law in accordance with the procedures specified in the Glass Accounts law.

24.3.A final expenditure report of the special fund shall be audited in accordance with the Law on State Audit and a conclusion shall be issued thereupon.

24.4.The central state administrative body in charge of finance and budget issues shall include the expenditure reports of the government reserve's fund and budget stabilization fund in the statement specified in Article 54.4 of the Budget Law and report to the Government and the State Great Khural.

24.5.A final expenditure report of the special fund along with the audit report shall be provided to the public through the website and glass account of an organization within 20 days after the issuance of such report.

24.6.An amount of new loan sources, selection procedures, requirements, and list of submission documents to be provided by the special fund specified in 5.3.2, 5.3.5, 5.3.18, and 5.3.19 of this law shall be reported through its website and the information shall be regularly updated.

24.7.Presentation, selection and evaluation process of business plans of citizens and legal entities applying for loans, grants, and financial support from the special fund specified in 5.3.2, 5.3.5, 5.3.18, 5.3.19, and 5.3.20 of this law shall be reported openly and transparently through mass media.

Article 25.Monitoring the Spending of Special Funds

25.1.Funds of the special fund shall be monitored and inspected as per the procedures stipulated in Article 69 of the Budget Law.

25.2.The relevant Standing Committee of the State Great Khural may discuss the funds expenditure report of the special fund if it deems it necessary.

25.3.The central state administrative body in charge of finance and budget issues will monitor the process of funds spending of the government's reserve fund.

25.4.A general budget manager will monitor the spending of funds and the implementation of projects and activities implemented in the sector with the financing of the Government's reserve fund.

25.5.Representatives of professional or non-governmental organizations shall be included in the selection committee, project management committee, and control committee of projects and activities to be financed with funds of the special fund specified in Articles 5.3.2, 5.3.5, 5.3.18, and 5.3.19 of this law, and provide public participation in monitoring the spending and activities of the special fund.

25.6. Representatives of the public and private sectors shall be included in the selection committee for projects and measures to be financed with funds of the special fund specified in 5.3.25 of this law, and provide public participation in monitoring the spending and activities of the special fund.

/This paragraph was added by the law as of July 5, 2022 and shall enter into force on January 1, 2023/

CHAPTER SIX

MISCELLANEOUS

Article 26.Prohibitions in operation of the special fund

26.1.Funds of the special fund shall not be exceeded from the approved budget and not use or spend for purposes other than those prescribed by law.

26.2.An official who make a decision on financing projects and activities from the special fund shall take measures to prevent conflicts of interest in accordance with the procedures stipulated in the Law on Regulations of Public and Private Interests and Prevention of Conflicts of Interest in Public Service.

Article 27.Liability for Violation of Legislation

27.1.If the act of an official who violates this law is not criminal, he or she shall be liable as provided in the Civil Service Law.

27.2.Any person or legal entity that violates this law shall be charged with the responsibility specified in the Criminal Law or the Violation Law.

Article 28.Entry into force of the Law

28.1.This law shall be entered into force on January 1, 2020.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA G.ZANDANSHATAR