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LAW FOR SOCIAL INVESTMENT FUND

Prom. SG 32 2001

The law is passed by the 38th National Assembly on May 19, 1999 and is affixed with the official seal of the National Assembly.

Chapter I.

GENERAL PROVISIONS

Art. 1.

This law shall determine the basic principles and priorities of the national cultural policy, the culture organisations and the bodies for protection of culture, of its national identity and the ways for support and financing of culture activity and creators.

Art. 2.

The basic principles of the national cultural policy shall be:

Chapter II.

CULTURAL ORGANISATIONS

Art. 3.

(1) The cultural organisations shall implement activities for creating, dissemination and preservation of cultural values.

(2) The cultural organisations as form of ownership shall be state, municipal, private and with mixed participation.

Art. 4.

(1) Cultural institutes shall be state or municipal cultural organisations established with a special law or with an act of a body of the executive power or local authority.

(2) The cultural institutes shall:

(3) At restored right of ownership in immovable property conceded for use to state or municipal cultural institute the regional governor or the municipal council shall concede by the due order another equal property – state or municipal ownership.

Art. 5.

(1) The state cultural institutes shall be corporate bodies at budget maintenance which shall be established, transformed and closed by the Council of Ministers at a proposal by the Minister of Culture or with a law.

(2) The state cultural institutes shall be financed from the budget of the Ministry of Culture entirely or partially, with resources from the municipal budgets on the basis of concluded contracts with the Ministry of Culture or with the participation of other corporate bodies or individuals.

(3) The directors of the state cultural institutes shall be appointed by the Minister of Culture after conducting a competition, according testament system and by an order determined by the Minister of Culture.

Art. 6.

(1) The state cultural institutes at departments out of the Ministry of Culture shall be established, transformed and closed by the Council of Ministers at a proposal by the chief of the corresponding department in coordination with the Minister of Culture.

(2) The state cultural institutes of para 1 shall be financed entirely or partially by the budget of the corresponding department.

(3) The directors of the cultural institutes of para 1 shall be appointed by the chief of the corresponding department after conducting a competition.

Art. 7.

(1) State cultural institutes of national importance shall be these cultural institutes implementing national and representative functions for creating, permanent preservation and dissemination of cultural and historic values.

(2) The conditions and the order for acquisition and taking away statute of state cultural institute of national importance shall be determined with an ordinance by the Council of Ministers at a proposal by the Minister of Culture.

(3) The state cultural institutes of national importance shall be financed entirely and with priority from the budget of the Ministry of Culture.

Art. 8.

(1) The municipal cultural institutes shall be corporate bodies with independent budget which shall be established, transformed and closed with a decision of the municipal council coordinated with the Minister of Culture.

(2) The municipal cultural institutes shall be financed by the municipal budget.

(3) At compiling the municipal budgets for the corresponding year the extent of the subsidy for each of the municipal cultural institutes shall not be possible to be lower than this of the previous year regardless of the realised revenues from their activity.

(4) The determining of the subsidy of para 3 shall be at extent of the expenses not lower than the amount of the determined in the budget for the previous year.

(5) The directors of the municipal cultural institutes shall be appointed by the mayor of the municipality after conducting a competition according to a testimony system defined by the Minister of Culture.

Art. 9.

(1) The regional cultural institutes shall be corporate bodies with independent budget which shall implement cultural activity basically on the territory defined with the act for their establishment.

(2) The regional cultural institutes shall be established, transformed and closed by the Council of Ministers at a proposal by the Minister of Culture in coordination with the regional governor after a decision of the municipal council on which territory their headquarters are.

(3) The regional cultural institutes shall be financed by:

(4) The extent of the additional funds from the republican budget of para , item 1 shall be determined every year with the Law for the state budget of the Republic of Bulgaria at a proposal by the Minister of Culture.

(5) The directors of the regional cultural institutes shall be appointed by the mayors of the municipalities on which their headquarters are after conducting a competition.

(6) The conditions of the competition shall be coordinated with the Ministry of Culture.

Art. 10.

(1) The private cultural organisations shall be established, transformed and closed at initiative of individuals and/or private corporate bodies by the order of the Commercial law or the Law for the persons and the family.

(2) The creative unions shall be voluntary associations with non profit objective uniting persons implementing similar creative activity in the field of culture. The creative unions shall be able to approve tariffs for the minimum extent of the remuneration for their members being free lance.

Art. 11.

(1) The cultural organisations with mixed participation shall be established between the state, the municipalities, corporate bodies and individuals or between some of them.

(2) The relations between the parties of para 1 shall be provided with a foundation act.

Art. 12.

The private cultural organisations and the organisations with mixed participation shall equally participate with all the rest in the competitions for subsidy for creative projects and programmes under the conditions and by the order of this law.

Art. 13.

State cultural institutes shall also be the schools for arts and culture. They shall ensure the professional preparedness and training in the field of arts and culture and are under the direct management and methodical ruling of the Minister of Culture funded by the budget of the Ministry of Culture.

Chapter III.

BODIES AND ORGANISATIONS FOR PROTECTION OF CULTURE

Art. 14.

(1) The Ministry of Culture shall conduct policy for protection and development of culture in compliance with its functions and powers and observing the principles of this law.

(2) The activity of para 1 the Ministry of Culture shall implement through:

(3) The Ministry of Culture shall ensure publicity at developing and conducting of its policy for preservation and developing of culture through:

(4) The Ministry of Culture shall create and maintain an information register of the cultural organisations and institutes which shall in two months after establishing submit an application for entering into the register.

Art. 15.

(1) The national centres for arts and cultural activities shall be established, transformed and closed by the Council of Ministers at a proposal by the Minister of Culture who shall approve regulations for the structure, the tasks and the activity of the national centres.

(2) The national centres shall be corporate bodies at budget maintenance at the Ministry of Culture implementing the cultural policy in the corresponding cultural sphere.

(3) The national centres shall conduct competitions for financial support of cultural programmes and creative projects where could participate all cultural organisations and individual creators.

(4) The directors of the national centres shall be appointed by the Minister of Culture under the conditions of art. 5, para 3.

(5) (Revoked, SG 1/00)

(6) (Revoked, SG 1/00) The resources of para 5 shall be spent for development of the activity, the material – technical base and/or according to their purposed designation.

(7) The national centres shall render methodical support to the amateur art.

Art. 16.

(1) At implementing its functions the Ministry of Culture and the national centres shall be supported by public – expert councils and commissions in which participate representatives of the creative unions, the interested departments and organisations as well as separate creators and experts.

(2) The public – expert councils and commissions shall be consultative bodies created for defined cultural directions and for determined period of time with an order by the Minister of Culture or the director of the corresponding centre.

(3) The public – expert councils shall discuss important and current issues of the corresponding directions, express opinions and give recommendations about them to the management of the Ministry of Culture, consider and make proposals for projects and normative acts.

(4) The public – expert councils shall be able to express opinions in cases when certain works of art and culture impede the good morals, openly promote violence, pornography, racial, religious and national intolerance or threaten the development of the young.

Art. 17.

(1) The Bulgarian cultural institutes abroad shall be state cultural institutes and shall be methodically and financially managed by the Ministry of Culture. They shall be established and implement their activity in compliance with bilateral international agreements.

(2) The Bulgarian cultural institutes abroad shall promote the national cultural values in the corresponding countries and cooperage for the expansion of the participation of the Republic of Bulgaria in the different forms of international cooperation.

(3) The directors of the Bulgarian cultural institutes abroad shall be appointed by the Minister of Culture under the conditions of art. 5, para 2.

Art. 18.

(1) The municipalities shall form and realise their policy for protection and development of culture combining the principles of the national cultural policy with the local conditions and traditions.

(2) The municipal council shall take decisions about:

(3) At implementing their functions the municipalities shall be supported by public - expert councils and commissions where participate representatives of creative unions, interested departments and organisations as well as individual authors and experts.

(4) The public - expert councils and commissions shall be consultative bodies established for certain period with an order by the mayor of the municipality.

(5) The public - expert councils shall give opinions and assessments about the activity of the municipal cultural institutes, the regional cultural institutes, about combination of the principles of the national cultural policy with the local conditions and traditions, about individual works of art and culture which could impair the spiritual health of children and youths.

Chapter IV.

PROTECTION OF THE NATIONAL CULTURAL IDENTITY AND SPIRITUAL VALUES

Art. 19.

For stimulation of authors and performers of works connected with the Bulgarian history and traditions shall be established annual state reward which shall be handed over by the Prime Minister.

Art. 20.

For affirmation the spiritual values of the nation and the human standards and morale:

1. The Minister of Culture and the general directors of the Bulgarian National Radio and the Bulgarian National TV shall conclude every year contracts for programmes and broadcasts in the field of culture, including TV films, radio and TV theatre in the contracts being defined the obligations of the Bulgarian National Radio and the Bulgarian National TV for the creation, presentation and dissemination of the cultural values with priority presence of highly artistic Bulgarian production;

2. (Amend., SG 75/02) the Minister of Culture, the Minister of Education and Science, the Minister of Defence and the minister of youth and sport shall propose every year to the Council of Ministers cultural - educational programmes for children and youths which financing is provided in the budgets of the corresponding departments.

Art. 21.

(1) The Minister of Culture shall propose every year to the Council of Ministers cultural calendar for national events and commemorations of events and prominent persons. Their financing shall be provided in the budget of the Ministry of Culture for the corresponding year.

(2) The national cultural calendar shall be approved by the Council of Ministers.

Art. 22.

(1) for promotion of national culture at temporary export of valuable Art.s of the cultural – historic heritage and arts the corresponding guarantee shall be taken by the state through the Ministry of Finance.

(2) The decision of para 1 for each separate case shall be taken by the Council of Ministers at a proposal by the Minister of Culture.

Art. 23.

Visual and audio cultural products of national importance shall be preserved at the National film library and the National collection of records and tapes which shall be state cultural institutes.

Chapter V.

FINANCIAL SUPPORT OF CULTURE

Art. 24.

(1) National fund “Culture” shall be established.

(2) The National fund “Culture” shall be corporate body with off budget account and headquarters in Sofia.

(3) The fund shall support the development of culture collecting, managing and spending resources designated for the conducting of the national policy in the field of culture.

(4) The fund shall be able to possess immovable properties and chattels only as grant or testament.

(5) The Ministry of Culture shall ensure conditions for the activity of the fund.

Art. 25.

Bodies of the fund shall be the management council, the control council and the executive director.

Art. 26.

(1) The management council shall consist of chairman and 10 members.

(2) Chairman of the management council shall be the Minister of Culture.

(3) Members of the management council shall be: representatives of the organisations with non profit objective in the field of culture, creative professional organisations, culture activists, academic communities – connected with the culture, the municipalities and one representative of the Ministry of Culture and the Ministry of Finance.

(4) The members of the management council shall be appointed with an order by the Minister of Culture for a term of two years.

(5) Member of the management council shall be possible to be discharged before the elapse of the mandate:

Art. 27.

(1) The management council shall manage the activity of the fund. For this purpose it shall approve:

(2) The management council shall have sessions in the presence of two third of its members. The decisions shall be taken with a majority of more than half of all the members.

(3) The members of the management council shall receive remuneration determined with an order by the Minister of Culture.

(4) The management council shall be able to have sessions also at request by more than half of its members.

Art. 28.

The chairman of the management council shall:

Art. 29.

(1) The executive director shall:

(2) The executive director shall not be possible to be member of the management council. He shall participate in the sessions of the management council with consultative vote.

Art. 30.

(1) The control council shall consist of chairman and two members.

(2) Chairman of the control council shall be representative of the Ministry of Finance.

(3) Members of the control council shall be representatives of the Ministry of Culture and of the Ministry of Justice and Legal European Integration.

(4) (Corr., SG 34/01) The control council shall implement the control over the raising and the management of the resources of the National fund “Culture”.

Art. 31.

(1) The resources of the fund shall be collected from:

(2) The resources of the fund shall be spent for:

(3) The resources of the fund shall be conceded after conducting a competition and on the basis of the proposals made by expert commissions in the corresponding cultural field. The term for submitting the proposals and the announcement of the decision as well as the guarantee of the public character of this process shall be determined under conditions and by order defined by the Minister of Culture.

Art. 32.

(1) The resources of the fund shall be preserved in off budget accounts in levs and in foreign currency at the Bulgarian National Bank.

(2) The excess of the incomes over the expenses at the end of the year shall be a transitional remainder and shall be used during the following year for its designation.

Art. 33.

(1) For receiving resources from the fund shall be able to apply all cultural organisations including also organisations with non profit objective as well as individual cultural activists.

(2) Persons and organisations sanctioned under the order of art. 37 shall not have the right to apply for resources from the fund.

(3) The resources of the fund shall be conceded on the basis of concluded contracts under the conditions of art. 31, para 3.

(4) The persons spending the resources received from the fund not for their designation shall restore them in full extent with interest equal to the basic interest rate of the Bulgarian National Bank increased with 10 points.

Art. 34.

In three months term after the end of the calendar year the fund shall publish detailed report about its activity and intentions.

Art. 35.

(1) Individuals or corporate bodies and sole entrepreneurs shall be able to establish scholarships for education of students in Bulgarian art schools. The conditions for receiving scholarships shall be coordinated with the corresponding educational establishment.

(2) Individuals or corporate bodies and sole entrepreneurs shall be able to ensure the activity of the cultural organisations. The conditions under which is implemented the ensuring shall be agreed in writing between the parties.

Art. 36.

(1) The municipal council shall create municipal fund “Culture” and approve regulation for its work.

(2) The resources of the fund shall be collected from:

(3) The resources of the fund shall be spent for:

Chapter VI.

ADMINISTRATIVE AND PUNITIVE PROVISIONS

Art. 37.

(1) An individual or corporate body who does not fulfil his obligations under art. 31, para 1, items 2, 4, 5 and 8 shall be punished with a fine, respectively with proprietary sanction double in extent of the due sum.

(2) At second breach the fine, respectively proprietary sanction shall be four times the due sum.

Art. 38.

(1) The acts for establishing the breaches shall be compiled by officials of the Ministry of Culture empowered by the Minister of Culture.

(2) The punitive decisions shall be issued by the Minister of Culture or official empowered by him.

(3) The establishing of the violations, the issuing, appealing and execution of the punitive decisions shall be implemented by the order of the Law for the administrative breaches and penalties.

Additional provisions

§ 1. In the sense of this law:

1. “Culture” is the activity for creating. Research, dissemination and preservation of cultural values as well as the results of this activity.

2. “Cultural value” is authentic material evidence for human existence and activity which has importance for the development of the culture and is socially important.

3. “Cultural organisation” is a structure registered under the Law for the persons and the family or under the Commercial law or that has been established with an act of a body of the executive power or local authorities which subject of activity is creating, dissemination and preservation of cultural values in the field of theatre, music, cinema, audiovision, literature, fiction translation, dance, circus, plastic arts, architecture, design, folklore.

4. “Creator” is a person who creates and/or performs works of art.

5. “Amateur art” is cultural activity implemented by a person or a group of persons not professionally engaged in the field of art.

6. “Cultural – historic heritage” is a totality of cultural values that carry historic memory.

7. “Free lance profession” is the profession of persons exercised in the field of culture which is implemented independently.

Transitional and concluding provisions

§ 2. In six months term after the law enters into force:

1. The Council of Ministers shall at a proposal by the Minister of Culture approve the acts pointed out in this law for determining the statute of the cultural institutes.

2. The Minister of Culture shall prepare and submit to approval to the Council of Ministers a draft tariff for the fees which the cultural institutes could collect.

§ 3. The cultural organisations and institutes found by this law shall in six months after the law enters into force submit applications for entering into the information register of the Ministry of Culture.

§ 4. In the Law for the cultural heritage and the museums (prom. SG 29/69; amend. and suppl. SG 29/73, SG 36/79, SG 87/80, SG 102/81, SG 45/84, SG 45/89, SG 10, 14/90, SG 112/95, SG 31/96 – Decision No 5 of the Constitutional Court ; amend. SG 44/96, SG 117/97, SG 153/98) shall be made the following amendments and supplements:

1. Art. 12 shall be changed to:

a) the previous text shall become para 1 and in item a) at the end shall be added “and the declared by the National institute for cultural heritage”;

b) created shall be para 2:

“(2) The order for announcement and declaring of para 1, item a) shall be determined with an ordinance by the Minister of Culture.”

2. In art. 24 shall be made the following amendments and supplements:

a) the previous text shall become para 1;

b) created shall be para 2:

“(2) For production of goods, labels and design solutions having images of a cultural monument shall be issued a permission by the Ministry of Culture for which shall be collected annual fee in extent determined with a tariff of the Council of Ministers.”

3. In art. 34 the figures 10 000 and 100 000 shall be substituted respectively by 50 000 and

1 000 000.

4. In art. 35 the words “up to 20 000” shall be substituted by “from 50 000 to 500 000”.

§ 5. In the Law for protection at unemployment and encouragement of employment (prom. SG 120/97; amend. SG 155/98, SG 26/99) shall be made the following supplements:

1. In art. 18 shall be created item 7:

“7. Obligatory participation of those working without employment legal relations in the artistic companies of drama, musical and puppet theatres, film productions, operas, ballet, philharmonic, symphonic and chamber orchestras, choirs and folk ensembles.”

2. In art. 20, para 1 after the words “with employment contract” shall be added “or from the gross remuneration of the performers of art. 18, item 7”.

3. In art. 23, para 1 after the words “their general meeting” shall be added “without employment legal relations in the artistic companies of professional drama, musical and puppet theatres, circuses, film productions, operas, ballet, philharmonic, symphonic and chamber orchestras, choirs and folk ensembles” and after the words “the employer” shall be put a comma and added “the assignor”.

4. In art. 67 shall be made the following supplements:

a) in para 3 after the words “with employment contract” shall be put a comma and added “as well as artist – performers worked with employment contract during the corresponding calendar year”’;

b) created shall be para 4:

“(4) Right to money indemnification for unemployment shall have also the unemployed who have worked without employment legal relations in the artistic companies of drama, musical and puppet theatres, film productions, operas, ballet, philharmonic, symphonic and chamber orchestras, choirs and folk ensembles who are insured or have been subject to insuring for unemployment for a term at least 4 of the last 12 months.”

5. in art. 69 shall be created para 5:

“(5) The extent of the money indemnification for the persons of art. 67, para 4 shall be 60 percent of the received average monthly remuneration but not less than 80 percent of the minimum working salary established for the country.”

6. In art. 71 shall be created para 6:

“(6) The persons of art. 67, para 4 shall receive indemnification for unemployment for a term of 6 months.”

7. In art. 72, para 1 shall be created item 7:

“7. Works with new non employment legal relations in the artistic companies of drama, musical and puppet theatres, film productions, operas, ballet, philharmonic, symphonic and chamber orchestras, choirs and folk ensembles.”

§ 6. In art. 23, para 3 of the Law for the corporate income levying (prom. SG 115/97; corr. SG 19/98; amend. SG 21, 153/98, SG 12/99) shall be created items 13 and 14:

“13. the extent of the established and conceded scholarships for education of students in the Bulgarian art schools;

14. the extent of the gratuitously conceded resources for ensuring the activity of the cultural organisations in the calendar year.”

§ 7. In art. 22, para 1 of the Law for levying the incomes of individuals (prom. SG 118/97; SG 35/98 – Decision No 6 of the Constitutional Court of 1998; amend. SG 71, 153/98) shall be created items 4 and 5:

“4. the extent of the established and conceded scholarships for education of students in the Bulgarian art schools;

5. the extent of the gratuitously conceded resources for ensuring the activity of the cultural organisations in the calendar year.”

§ 8. This law shall repeal the Edict for theatres (SG 145/49).

§ 9. The provisions of § 5, 6 and 7 shall enter into force from January 1, 2000.

§ 10. The implementation of the law shall be assigned to the Minister of Culture.