Besides social welfare institutions, the municipal or county (city) competent authorities shall, according to the actual requirements, establish or assist the people to establish necessary institutions for implementation of this Act and provision of public assistance.
The charges payable by the assisted of the abovementioned social welfare institutions shall be subsidized by the competent authorities.
The institutions established by the municipal or county (city) competent authorities under the Paragraph 1 will not charge fees.

To establish a public or private assistance institution, application shall be submitted to the local competent authority for permission. With the permission for establishment granted, registration of the incorporated foundation shall be completed within 3 months. When there are justifiable reasons, application for postponement by 3 months may be submitted to the competent authority for approval.
After approval, the abovementioned application shall be reported to the central competent authority for review and reference.

The scale, area, facilities, staff, and other standards of public assistance institutions shall be determined by the central competent authority.

The competent authorities shall assist, supervise, and appraise the public assistance institutions.
Reward measures for public assistance institutions shall be determined by the competent authorities.
When a public assistance institution does not perform adequately, infringes upon the original approved establishment standards, or shall be improved according to the results of the appraisal mentioned in the first paragraph, the competent authority shall notify the institution to make improvements within a specified time limit.

Without due reasons, public assistance institutions shall not refuse to provide shelter entrusted by the competent authority under this Act.

Public assistance institutions shall accept staff dispatched by the competent authority to examine equipment, accounting and other records.

Public assistance institutions shall be operated by professionals.

Public assistance institutions shall use subsidies received from the government according to the specified purposes, and list them in detailed in accounting records. In case of infringement of the abovementioned provision, the department providing the subsidies may recall the subsidy.
The provisions added under the above paragraph shall be listed in the management and auditing processes of the institution’s property.