Programs for the Promotion of Special Zones for Structural Reform (Summary) Office for the Promotion of Special Zones for Structural Reform October 11, 2002 1. Outline for the System of Special Zones for Structural Reform (1) An integrated bill that includes the following content will be compiled. A draft for Basic Policies of Special Zones for Structural Reform (listing regulations that should be taken for special measures for structural reform) will be compiled by the Prime Minister and subsequently adopted by the Cabinet. Local governments will create a plan for special zones for structural reform and will request certification by the Prime Minister. The Prime Minister will certify the said plan in the cases that the plan is deemed to contribute to regional revitalization. As for special measures for regulations, provided that it is deemed that they are in accordance with previously established content, the heads of related administrative institutions will grant their approval. The content of the special measures will be stipulated in the Special Zones for Structural Reform Law for legal items and in the ministerial ordinances for items related to ministerial ordinances base on the Basic Policies. In the case that the plan no longer meets certification standards, it will be possible for the Prime Minister to withdraw certification. (2) The Headquarters for the Promotion of Special Zones for Structural Reform will be established with the Prime Minister as Chief of Headquarters. (3) Requests for regulatory reform that should be realized as part of special zones will be periodically accepted from local governments and the private sector. 2. Regulations on which special measures can be taken Examples of special measures for regulations that can be implemented for special zones Entry into agricultural activity by corporations other than agricultural production corporations will be accepted (Agricultural Land Law). A diverse curriculum that does not depend on courses of study will be formulated by utilizing the system for R & D schools (School Education Law). Port facilities, which are administrative assets, will be leased to private sector corporations (Port and Harbor Law). Conditions to use national university facilities by private sector corporations at reasonable prices will be relaxed. Examples of regulatory reform that will be set for nationwide implementation (Time frame and content have been be clarified) Regulations related to the dispatch of workers (such as the limitation in principle to a one-year dispatch period, expanding the range of operations to which workers can be dispatched to include the manufacturing sector, etc.) and restrictions placed on job placement-related work (such as implementing free job placement by local governments, etc.) will be eased. The payment of local taxes through private entities such as convenience stores will be authorized. A clinical training system will be used for foreign physicians. 3.Schedule The "Special Zones for Structural Reform Bill" which includes the content of 1.(1) will be submitted to the current extraordinary session of the Diet. The items in 2.(ii) will be considered with a view toward the Second Report of the Council for Regulatory Reform which is scheduled for December 2002. Proposals will again be accepted from local governments and the private sector regarding the regulations that are not included in the program stated above with January 15, 2003 as the deadline. A system will be established that will assess the effects and influences of special measures for regulations to be implemented for special zones within one year after the Special Zones for Structural Reform Bill is passed.