Paragraph 1, Article 3 of the State Compensation Law is only applicable to the ”government-owned” public facility. However, with the transformation in the society, this provision cannot satisfy the objective to protect the people's right any longer. Though the latest decision of the Supreme Court shows that the scope of application of Paragraph 1, Article 3 of the State Compensation Law has been broadened, the ”private state-owned enterprise” issue still is unresolved. Therefore, it is necessary to resolve the issue by amendments to laws. In this paper, we interpret the requirements and application of Article 3 of the State Compensation Law according to the existing laws, interpretation about foreign legislation, the intent of the Supreme Court decisions, and also study the contents of proposals made at the Legislative Yuan and the existing outsourcing practices operated by the government, and then identify the orientation towards the amendments to laws and propose suggested provisions and certain alternative measures (aided under investment contract transfer and insurance contributions).