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2. Organization of the Cabinet Legislation Bureau Commissioner-General of the Cabinet Legislation Bureau Deputy Commissioner-General of the Cabinet Legislation Bureau Director -General of the First Department Executive Secretary of the Administration Office of the Commissioner -General Director -General of the Second Department Director -General of the Third Department Director- General of the Fourth Department Constitutional Archives Research Office Counselors Legal Research Officer General Affairs Division Accounts Division Investigation Officer 2

3. 1. Main work of the Cabinet Legislation Bureau Opinion-Giving Work Giving opinions on legal issues to the Prime Minister and to individual ministers as well as to the entire Cabinet. By the First Department. Examination Work Examining legislative bills, draft Cabinet orders and draft treaties that are to be raised to Cabinet meetings. By the Second, the Third, and the Fourth Departments. 3

4. 2. Opinion Giving Work The interpretation of a law is carried out by the individual ministry that is in charge of the law and thus enforces it. This particular ministry, however, may have doubts as to the interpretation of the law. There may also be disputes as to the interpretation of a law among the ministries concerned. Upon the request from the ministry or the ministries in such cases, the Cabinet Legislation Bureau gives its opinions on the legal issue(s) involved. Work such as this is called "opinion-giving work". The interpretation of law ultimately is determined through court rulings. Within the executive branch, however, the interpretation of law becomes unified through the opinion-giving work of the Bureau. 4

5. Example - During the recession, many individuals borrowed money beyond their repayment capacity and went bankrupt or became heavily indebted. - Money-Lending Business Control and Regulation Law which enforces necessary regulation on “money-lending business” such as consumer loans was amended in 2006. - In the amendment, aggregate debt control was introduced. Concretely, lenders are obliged to investigate the borrowers’ repayment capacity and prohibited from lending money exceeding one-third of borrowers’ annual income including loans from other lenders (except for home loans, etc). - Since this amendment, some lenders attempted to circumvent this control by selling goods and giving a refund, not lending money. 5

6. 1. Subscription of Buying goods (125,000 yen) 3. Goods (1,000 yen) & Cash Refund(100,000 yen) Consumer (Credit Card Holder) Credit Card Company Lender (Selling Goods) 2. Demand for Payment (125,000 yen) 0. For example, consumer wishes to borrow 100,000 yen. 1.The lender suggests consumer to buy goods for 125,000 yen with a cash refund of 100,000 yen. 2.The lender demands payment to credit card company as a franchisee and receives 125,000 yen. 3.Then, the lender returns 100,000 yen and the goods (such as a toy necklace of 1,000 yen). “Money-Lending Business” regulated under the law means the business of loaning money or acting as an intermediary for the lending or borrowing of money (including acting as an intermediary for delivering money through discounts of negotiable instruments, mortgage by sale, or any other method similar thereto, or for providing or receiving money through such method) With the inquiry from the regulatory agency, the Cabinet Legislation Bureau concluded that this type of business will be regulated under the law. (notes) 6

7. There are two types of legislative bills - those submitted by the Cabinet, and those submitted by Diet members or committees. All legislative bills submitted by the Cabinet are drafted by the relevant ministries and then examined by the Cabinet Legislation Bureau before being raised to Cabinet meetings. Cabinet orders are enacted by the Cabinet, either on the basis of authorization by law or for the purpose of implementing law. All draft orders are examined by the Cabinet Legislation Bureau before being raised to Cabinet meetings. Examination points 1. Legislation must gain public support, as well as ensure compliance by the public. 2. Rights and duties must be clearly stated. 3. Legislation must be in line with the Constitution and other existing legislations. The Cabinet has the authority to conclude treaties, some of which requires Diet approvals before or after conclusion. All such treaties are examined by the Cabinet Legislation Bureau before being raised to Cabinet meetings. 3. Examination Work 7

8. Bills Drafted by GovernmentBills Drafted by the Diet Members YearSubmission (A) Enactment (B) Rate (B/A) Submission (C) Enactment (D) Rate (D/C) 1947-20109356824088.1%4961148630.0% 20061039491.3%771823.4% 200710710396.3%1063533.0% 2008957376.8%751824.0% 2009817288.9%1012322.8% 2010834756.6%842226.2% Figures on Legislation 8

9. Legislation regarding Great East Japan Earthquake Since the Great East Japan Earthquake, 20 bills and 71 cabinet orders are enacted to deal with the earthquake. Types of LegislationExamples Protecting victims’ rights - Extending deadlines for six month such as driver’s license among others. - Extending date of local assembly/governors Rebuilding victims’ lives - Tax measures (such as exemption for property tax on assets damaged by tsunami. ) Legislation for reconstruction - Basic policy and governmental body for reconstruction of the damaged region. 9