More oversight, fewer associations: What the new rules mean

[Photo: Renato Marques]

A new draft law, currently under public consultation, proposes changes to local associations’ management and operations, as well as to the procedures for establishing and running an association in the future.

While the public consultation is still ongoing (until September 23), meaning the document is not yet final, experience shows that final bills rarely receive many or significant amendments from public consultations.

In a recent closed-door session for members of the Legislative Assembly, the government said 19 of the 33 lawmakers participated and expressed support for the legislative review.

According to the government statement, lawmakers said the proposed law affirms the “guarantees of the Basic Law regarding freedom of association and the fundamental rights” of residents.

Lawmakers were also quoted as saying that the revision “contributes to improving the internal management system of associations and effectively guiding them toward positive development.”

Most significant changes

As the Times previously reported, most of the amendments aim to introduce, directly or indirectly, mechanisms for closer supervision of associations’ activities and ensure they comply with all regulations on the protection of national security.

One proposed change notes the need for “improvements to the system for guaranteeing the right of association.”

According to the government, the local legislation on associations “has been in effect for many years and leaves much room for improvement; it is therefore advisable to take a further step toward clarifying the basic requirements for the formation of an association, such as the requirement regarding the association’s name, the qualifications of the founders and members of governing bodies, the number of members of governing bodies, and the content of the bylaws.”

As in other sections of the amendments, it is noted that associations have an important role in several aspects of civil society, including electoral participation, and they also have a voice in major projects and development strategies.

In addition to the eligibility of founding members and other aspects mentioned, it is also said that the amendments are proposed to “better promote the high-quality development of associations; it is also advisable to establish specific regulations regarding the operation, supervision, and corresponding consequences for associations after their formation.”

Citing concerns over what the government calls “social governing” and the groups’ contribution to “social stability,” it is proposed to reinforce supervision mechanisms, including introducing a mechanism for the forced dissolution of associations that fail to comply with the regulations.

This mechanism also amends the procedures for analyzing bylaws, proposing to remove this duty from the Public Prosecutions Office (MP) and centralize it under the Identification Services Bureau (DSI).

It is also proposed that the DSI “be authorized to refuse the formation of an association on the grounds of the need to safeguard national security, public order, or the rights and freedoms of third parties.” In such a case, “the DSI may seek the assistance and opinions of other public agencies and entities, as well as private entities, and may request that the Macau SAR’s Commission for the Defense of National Security review the association in question.”

Among the two types of associations that fall under closer scrutiny are the “branches or subsidiaries of foreign incorporated associations” and those associations in which “half or more than half of the members of the governing bodies or the remaining members are non-residents of the Macau SAR (i.e., “associations of non-local persons”).

On a different aspect, and one that falls under the whole group of associations, the government wants to regulate and exercise further supervision over meeting minutes, in which it is proposed to regulate what type of content will be mandatory to include, as well as specific regulations for non-in-person participation in general assembly meetings, including videoconference participation.

Another aspect highlighted is the introduction of a new mechanism for the “declaration of overseas funding,” as well as cases in which local associations join international organizations or large groups such as federations and others.

In this particular case, it is noted that these rules aim to “effectively prevent external forces from illegally carrying out activities in Macau through associations,” with it being proposed that, “if an association receives funding from an entity located outside Macau, in addition to being required to report this fact to the DSI, the DSI, following an assessment, may also require the association in question to submit documents and information, such as activity reports, financial statements, and other materials, and may also request information from other public agencies and entities.”

Reducing the number is the priority

As the government admitted, one of the new law’s priorities is to reduce the total number of registered local associations, which amounts to some 12,400.

According to officials, of the over 12,000 associations, around 5,000 (40%) have been inactive or dormant for a long time, including some with initial records dating from before the handover that technically have ceased operations but have never filed for the dissolution of the association.

With the new mechanisms and regulations, the government aims to tackle this issue immediately, effectively reducing the number of associations registered and operating in Macau.

In the public consultation materials, the DSI compared these associations to “abandoned cars occupying parking slots,” noting that by “cleaning up non-operating associations,” the government would create better conditions for existing, operating associations to thrive.