For the purpose of enhancing railway technical research and development, increasing testing and certification capacity, to promote the development of the railway industry and railway system safety, this Act is enacted for the establishment of the Railway Technology Research and Certification Center (hereinafter referred to as “the Center”).

The Center shall be incorporated in the form of a foundation in pursuance of this Act. Any and all matters not provided herein shall be governed by other applicable laws.

The scope of operation for the Center is as follows：
1. Studying railway system technical specifications, standards and safety inspection criteria, and providing consultancy and advice;
2. Providing railway system technical research and development, product testing, inspection and certification services;
3. Providing technical solutions for analysis, improvement and maintenance of railway equipment and components;
4. Providing technical support for railway accident investigation and safety inspection, and conducting personnel training and qualification;
5. Engaging in domestic and foreign railway technology information gathering, exchange and cooperation;
6. Entrusted by government agencies or other public and private organizations to handle the business stipulated in the preceding five sub-paragraphs; and
7. Conducting other matters related to the purpose of the establishment of the Center.

The competent authority for the Center is the Ministry of Transportation and Communications.

The initial fund for the Center is endowed by the competent authority with budget.
The national real estate that the Center needs to use for its operation shall be by means of leasing. Regulations on criteria of lease fee and favorable rentals shall be separately stipulated by the competent authority.
The lease fee mentioned in the preceding paragraph shall be charged not lower than land value tax, house tax as well as other taxes, charges and fees of the national real estate.

The sources of funds for the Center are as follows:
1. Interests of the initial fund;
2. Revenue from entrusted research and providing services;
3. Government subsidies for specific research projects;
4. Donations from domestic and foreign, public and private organizations and/or individuals; and
5. Other revenues.

The Center shall have a Board to be composed of 7 to 15 directors provided there shall always be an odd-number of directors; one of them shall serve as the chairperson of the Board. All of directors shall be selected by the competent authority from the following persons:
1. Officials of government agencies, government-owned or private transportation enterprise organizations in charge of the relevant business;
2. Domestic or foreign experts as well as scholars specializing in research or well-experienced in railway technology; and
3. Persons considered fair and impartial by society.
The directors selected and appointed by the competent authority under the preceding paragraph may be replaced with another person selected at any time who shall serve the remaining term of the predecessor.
The directors appointed or replaced in accordance with the preceding two paragraphs shall become effective upon the arrival of the appointment or replacement notice to the Center in accordance with the content of such notice.
Directors shall serve a term of 3 years, and may be re-appointed upon expiry of the term. The number of re-appointed directors shall not exceed two-thirds of the total number of directors to be appointed at the same time.
The directors in the preceding paragraph serving concurrently as public servants whose office changes following the change of their official posts shall not be counted in the number of directors to be re-appointed or the total numbers to be selected and appointed.
A director removed from office prior to expiry of such director’s tenure due to resignation, death or inability to exercise duties for any causes may be replaced with another who shall serve the remaining term of the predecessor.

The Center shall have 2 to 5 supervisors, appointed by the competent authority, who shall select one among themselves to act as the managing supervisor.
Supervisors shall serve a term of 3 years, and may be re-appointed upon expiry of the term.
The managing supervisor shall attend the Board meeting in a non-voting capacity. The competent authority may remove the managing supervisor from office and take such other necessary measure if the managing supervisor’s failure to attend the Board meeting is likely to endanger the benefit of the public or the Center.
The second, third and sixth paragraphs of the preceding Article shall apply mutatis mutandis to the appointment and replacement of supervisors as well as the selection and appointment of new supervisors.

The Center shall have one chief executive officer, who shall be hired by the Board. The chief executive officer shall handle the Center’s affairs under the direction and supervision of the Board.
The chief executive officer shall have professional knowledge of railway technology and operational management capability or experience.

The directors and supervisors of the Center are non-paid positions. This shall not apply to the chairperson who works full-time without receiving any other salary, monthly pension, monthly retirement pay or other pay of equivalent nature.
The part-time pay of directors and supervisors as well as the salary payment standards of the chairperson, the chief executive officer and other personnel of the Center shall be resolved by the Board and submitted to the competent authority for approval. The same shall apply in case of a change of the payment standards.

The Center shall have the same fiscal year as that of the government. The preparation and review of budget and final accounts shall follow the Budget Act, the Financial Statement Act as well as relevant laws and regulations in addition to the following:
1. Prior to the beginning of a fiscal year, a work plan and a budget shall be prepared and passed by the Board and submitted to the competent authority; and
2. Following the end of a fiscal year, the work result and final accounts shall be reviewed by the Board and audited by the supervisors, and then submitted to the competent authority.
The annual budget and final accounts prepared in accordance with the preceding paragraph shall be reported to the competent authority for review, which shall then report to the Legislative Yuan for review.

The charter of the endowment of the Center shall be stipulated in accordance with this Act as well as relevant laws and regulations, and shall at least record the following matters:
1. Purpose, name and location of the principal office;
2. Type and total amount of, and the way to keep and use, the endowment property;
3. Operation items;
4. Number, qualification, procedure for the appointment, term of office, selection and removal of directors and supervisors;
5. Organization, duties and powers and resolution method of the Board; and
6. The year, month and day when the charter of the endowment is stipulated.
The stipulation and amendment of the charter of the endowment mentioned in the preceding paragraph shall be reported to the competent authority for approval after a resolution by the Board.

The Center shall disclose to the public via its website the following:
1. The charter of the endowment;
2. The part-time pay and the salary payment standards in the second paragraph of Article 10;
3. Relevant materials in the first paragraph of Article 11 such as work plans, work results and supervisory reports, budgets, revenues and expenditures, lists of property, financial statements, etc.;
4. The list of the names of the grantors or donors and the respective grant or donation amount received by the Center as well as the list of the names of recipients of grants or donations as well as the respective amount from the Center; and
5. Other information necessary to facilitate the public’s supervision as designated to be disclosed by the competent authority.

The Center shall establish personnel, accounting, internal control and audit systems, and submit to the competent authority for approval.

The competent authority may order the Center to dissolve if any of the following circumstances occurs to the Center:
1. The continuance is no longer necessary because the establishment purpose has been attained, or it is unable or ineffective to attain the establishment purpose; or
2. The continuance is no longer necessary due to change of circumstances, which is determined by the competent authority.
The Center shall be liquidated by laws after its dissolution, where its properties will be confiscated to the National Treasury and the personnel shall be dismissed.

This Act shall become effective as of the date of promulgation.