In Bulgarian

FILM INDUSTRY ACT

National Film Centre

Executive Agency

Sofia, 2004

 Please note that the later amendments in that Act that raised the state subsidy for the Bulgarian cinema

are not in this English version of the Film Industry Act

 

CHAPTER ONE

BLANKET REGULATIONS

 

Art. 1. This Act provides for the relations pertaining to film industry, distribution, promotion and exhibition of films throughout the Republic of Bulgaria and the state support for film industry, thus creating conditions for its development.

Art. 2. /1/ Within the meaning of the Act, film industry comprises production, distribution, exhibition and storage of films.

/2/ Activities in line with the storage of films are carried out by the Bulgarian National Film Archives in its capacity of a state-run cultural institution of national importance.

Art. 3. /1/ State support in the field of film industry is implemented to achieve the purposes as stated bellow:

            1. Recognition of film works as a field of importance for the national culture;

            2. Stimulation of filmmaking, distribution, promotion and exhibition of national film productions;

            3. Encouraging creation and distribution of film products of high artistic value;

            4. Protection and preservation of film works as part of the European and world cultural heritage.

/2/ State-policy priorities in the field of film production:

            1. The right of public access to various forms of film creativity;

            2. Protection of the rights and interests of spectators;

            3. Support for aspiring talents and young creators;

            4. Promotion of Bulgarian cinema both throughout this country and abroad;

            5. Setting satisfactory conditions for filming foreign productions in the territory of this country.

/3/ The state support in the field of film industry adheres to the following principles:

            1. Protection of the authors' right of free expression;

            2. Equality between creators and organizations working in the field of film industry;

            3. Protection of intellectual property in the field of film creativity.

Art. 4. The state support under this Act is carried out in cooperation with professional associations and legal persons on non-profit-making basis in the field of film industry.

 

CHAPTER TWO

NATIONAL FILM CENTRE EXECUTIVE AGENCY

Art. 5. The National Film Centre Executive Agency (Agency) is an administration with the Minister of Culture, a legal body, with offices in Sofia; the maintenance of which is formed out of budgetary funds and revenues collected from its own activities.

Art. 6. /1/ The Agency:

            1. Supports creating, distributing and exhibiting Bulgarian films in this country and abroad;

            2. Drafts enactment bills in the field of film industry;

            3. Keeps the register under this Act;

            4. Works in cooperation with other countries' similar organizations, with Funds and Programs of the Council of Europe and the European Union;

            5. Works in interaction with legal persons on non-profit-making basis in the field of film industry, with the professional associations of filmmakers and with the associations collectively administering copyrights in the field of film industry in this country;

            6. Organizes and supports festivals, programs and reviews of Bulgarian and foreign films in the Republic of Bulgaria and promotion of Bulgarian films abroad;

            7. Carries out information activities, collects and generalizes data about production, distribution and exhibition of films and makes them public.

            8. Mediates in signing framework agreements between professional associations of filmmakers on defining a protective mechanism for paying fees in the field of film industry;

            9. Contributes to protecting copyrights and related rights in the field of film industry;

            10. Administers producer's rights of Bulgarian films, when granted such rights under an act or a contract;

            11. Supports education and training of skilled workers in the field of film industry;

            12. Performs other functions related to implementation and observation of the Act or assigned by the Minister of Culture.

/2/ The activities, structure and the organization of the functioning of the Agency, as well as the staff are stipulated in a Working Regulations adopted by the Council of Ministers on a proposal from the Minister of Culture.

Art. 7. /1/ The Agency is managed and represented by a CEO (Executive Director).

/2/ The Executive Director of the Agency is appointed by the Minister of Culture after holding a contest for a 5-year term of office;

/3/ Executive Director of the Agency may be a person of Bulgarian citizenship, who is a Master of social sciences, economics or law or M.A. with at least 5 years standing in the field of film industry.

/4/ Ineligible to the office of the Executive Director are persons who:

            1. Have one-man businesses; who are general partners, directors or members of Steering Committees, Supervisory Boards or Boards of Directors of trading corporations;

            2. Members of managing, control or supervisory bodies of legal persons on non-profit-making basis performing activities in the field of film industry, or who are paid fees by such bodies in whatever form.

Art. 8 /1/ With the Executive Director consultative and expert bodies are being established as follows:

            1. National Film Council;

            2. National Creative Committee;

            3. National Film Rating Committee;

            4. National Technical Committee;

            5. Financial Committee.

/2/ Members of the consulting and expert bodies pursuant to and in compliance with para 1. are paid for their participation in the aforesaid bodies as stipulated by the Working Regulations of the Agency.

/3/ The activities of the bodies pursuant to and in compliance with para 1. are being serviced by the administrative units of the Agency.

Art. 9. /1/ The National Film Council is being appointed for a 3-year term of office by the order of the Executive Director of the Agency and comprises twelve members: persons who have at least five years of service in the field of film industry.

/2/ One of the members of the National Film Council must be a representative of the Agency and the rest of the members are being nominated by the professional and guild organizations and persons carrying out activities in the field of film industry.

/3/ The National Film Council:

            1. Draws up and proposes to the Minister of Culture via the Executive Director of the Agency a National program of the development of the film industry;

            2. Proposes and grounds together with the Executive Director to the Minister of Culture the amount of state support for implementing the national policy in the field of film industry;

            3. Proposes to the Executive Director an annual quota for making Bulgarian debut films;

            4. Proposes Bulgarian films to be presented at European or world competitions and for nominations.

Art. 10. /1/ The National Creative Committee is being appointed for a 2-year term of office by the order of the Executive Director of the Agency. It comprises nine members, of them six are being nominated by professional and guild organizations and associations carrying out activities in the field of film industry, two members of the National Film Council, and one is a representative of the Agency.

/2/ The National Creative Committee considers and selects the film projects for state support.

Art. 11. /1/ The National Film Rating Committee is being appointed for a 2-year term of office by the order of the Executive Director of the Agency. It consists of four panels of seven members each, and their decisions are of equal value.

/2/ Each of the panels of the Committee pursuant to para /1/ comprises:

            1. One psychologist;

            2. One sociologists;

            3. Two representatives of the National Film Council;

            4. One representative of the Ministry of Culture;

            5. One representative of the Ministry of Education and Science;

            6. One representative of the Agency.

/3/ The National Film Rating Committee proposes to the Executive Director of the Agency a rating for each of the films to be distributed and/or exhibited in the territory of the Republic of Bulgaria.

Art 12. /1/ The National Technical Committee is being appointed for a 2-year term of office by the order of the Executive Director of the Agency. It consists of five members:

            1. Two image experts;

            2. Two experts in sound

            3. One expert in cinema and video techniques.

/2/ The National Technical Committee evaluates the technical quality of the completed films that were granted state support under this Act.

Art. 13. /1/ The Financial Committee is being appointed for a 2-year term of office by the order of the Executive Director of the Agency. It consists of seven members of proven skills in organizing and financing in the field of film industry. Of them:

            1. Four representatives of the National Film Council;

            2. One representative of the Bulgarian National Television;

            3. One representative of the Ministry of Culture;

            4. One representative of the Agency.

/1/ The Financial Committee:

            1. Proposes to the Executive Director of the Agency the amounts of state support for each of the projects that have been selected by the National Creative Committee on the ground of expert evaluation;

            2. Makes expert evaluations of the projects for international coproductions with Bulgarian participation and proposes to the Executive Director of the Agency the amounts of state support for each of the individual projects.

            3. Makes expert evaluations and proposes to the Executive Director of the Agency the amount of support for distribution and/or exhibition of films.

Art. 14 /1/ Two months prior to the expiration of the terms of office of each of the bodies pursuant to art 8, para 1, 1 and 2, the Minister of Culture makes public a list of the professional and guild organizations and associations, implementing activities in the field of film industry, as well as their quotas. In compliance with their constituent acts and their fixed quotas the professional and guild organizations and associations nominate their representatives for participation in the bodies pursuant to art 9 and 10.

/2/ One and the same person may not be nominated for a member of the same body for two successive terms of office.

/3/ The Executive Director appoints as members to the consultative and expert bodies in their capacity of representatives of organizations and associations pursuant to art. 1 only persons nominated in compliance with this art.

Art. 15. The working order of the National Film Council and the National Committees is stipulated by the Working Regulations pursuant to art. 6, para 2.

 

CHAPTER THREE

FINANCING

Section I

Revenues

Art. 16. /1/ The Agency is a secondary disposer of budgetary credits with the Minister of Culture.

/2/ The annual State Budget Act of the Republic of Bulgaria stipulates the transfer from the budget of the Ministry of Culture to the Agency.

/3/ The Agency administers the following revenues:

            1. Taxes collected under this Act;

            2. Fines and penalty payments under this Act;

            3. Ceded rights to use Bulgarian films, granted to the Agency under law or contracts;

            4. Revenues in line with the execution of contracts on financing the production, distribution and exhibition of films or other audiovisual works;

            5. Penalties and interests on inexecutions of contracts, wherein the Agency is a party;

            6. Donations;

            7. Interests on deposits of Agency's own funds;

            8. Other revenues provided for in an Act.

Art. 17. The State Budget Act provides annually for:

            1. A subsidy to the Agency, the yearly amount of which should not be less than the total of the average budgets for the previous year of 5 feature films, 10 full-length documentaries and 120 minutes animation;

            2. Means for membership fees in international organizations, funds and programs in the field of film industry, wherein the Republic of Bulgaria is a member.

            3. Means for the maintenance of the Agency.

Section II

Expenditures

Art. 18. /1/ The means accumulated pursuant to and in compliance with art. 16, para 3 and art. 17, 1, are being spent for state support for projects in the field of production, promotion, distribution and  exhibition of Bulgarian films, as well as of films made under circumstances of coproduction with European countries or countries the Republic of Bulgaria has sealed arrangements with in the field of film industry.

/2/ The means pursuant to and in compliance with para 1 are being allotted, as follows:

            1. No less than 10 percent for financing pursuant to and in compliance with art. 32;

            2. Up to 5 percent for financing pursuant to and in compliance with art. 34;

            3. No less than 85 percent for financing pursuant to and in compliance with art. 28, para 1;

/3/ The means pursuant to and in compliance with art. 17, 2 are being spent for special purposes and expediently.

 

CHAPTER FOUR

REGISTRATION

Art. 19. /1/ The Agency establishes and keeps a register of:

 

            1. Bulgarian film producers;

            2. Distributors of films in the territory of the Republic of Bulgaria;

            3. Exhibitors of films in the territory of the Republic of Bulgaria

            4. Places for exhibitions in the Republic of Bulgaria;

            5. Film productions, made by foreign producers in the territory of the Republic of Bulgaria, including coproductions with Bulgarian producers;

            6. Films, granted visas for distribution and exhibition in the territory of the Republic of Bulgaria.

/2/ The producer, respectively the person carrying out distribution and/or exhibition applies for registration by sample under para 1, 1-5.

/3/ The registration under para 1 is conducted by the Agency ex officio.

/4/ Only persons registered under the Commerce Act are subject to registration under para 1, 1-3.

Art. 20. /1/ Enclosed with the application for registration entry in compliance with art. 19, para 1, 1-3, are:

            1. A certified copy of the decision on judicial registration;

            2. A certificate of actual judicial registration;

            3. A registration certificate or an identification card in the BULSTAD register;

            4. A certificate of tax registration;

            5. A document verifying a paid registration tax.

/2/ Enclosed with the application for registration entry in compliance with art. 19, para 1, 4 are:

            1. Declaration verifying the location, kind and working regime of the place for exhibition, the kind of cinema facilities and number of the seats;

            2. A document verifying a paid registration tax.

/3/ The application form for registration entry under art. 19, para 1, 5 is being submitted no later than in a 14-day term prior to the start of the work on making a production in the territory of the Republic of Bulgaria. Enclosed with the application are:

            1. Career record of the producer;

            2. Copy of the contract with the Bulgarian executive producer or film producer;

            3. Copy of the license agreement on granting copyrights or any other proof allowing to verify the grant of copyrights for commercial usage of the film;

            4. Copy of the script;

            5. List of the creative and technicians' teams of the participating countries;

            6. Calendar plan of the production in its part for realization in the territory of the Republic of Bulgaria;

            7. Plan of the locations;

            8. Draft budget of the project in its part in the territory of the Republic of Bulgaria;

            9. A document of paid registration tax.

Art. 21 /1/ The Agency comes up with a stand on the application for registration entry in a 7-day term as of the submission of the application and issues a registration certificate.

/2/ In case of diminutions and/or inaccuracy in the papers submitted, the applicant is informed in writing in a 3-day term to rectify them. In case of non-rectification of the diminutions and/or inaccuracy within a one-month term as of the information, the application is considered to be withdrawn.

/3/ The effect of the registration and the registration certificate are termless under art. 19, para 1, 1-4, and under art. 19, para 1, 5, they are valid for the period for realizing the registered production.

Art. 22. The changes in the data, subject to registration, are subject to registration under art. 19, para 1, in a 14-day term of their setting in.

Art. 23. /1/ The registration is obliterated by the order of the Executive Director of the Agency and the certificate issued is nullified:

            1. At the request of the registered person;

            2. In case of death of the registered subject, when the latter is a physical person, or for judicial persons, in cases of winding-up and liquidation;

            3. When establishing falsehood of some of the circumstances stated;

            4. When a penal provision for a repeated offence has come into effect.

/2/ The order under art. 1, 3 and 4, is appeal able under the Administrative Procedure Act.

/3/ The obliteration of the registration and the nullification of the certificate are announced by the Agency in an appropriate manner.

Art. 24. The method of keeping the register under this chapter is determined by the order of the Minister of Culture.

Art. 25. For registration entry under art. 19, para 1, taxes are collected according to a tariff adopted by the Council of Ministers on a proposal from the Minister of Culture.

 

CHAPTER FIVE

STATE SUPPORT FOR FILM INDUSTRY

Section I

Blanket Regulations

Art. 26. /1/ The State through the Agency supports:

1. Production, distribution, exhibition of Bulgarian films;

2. Distribution and exhibition of films made under circumstances of co-production with European countries or countries the Republic of Bulgaria has sealed arrangements with in the field of film industry.

3. Promotion of Bulgarian films nominated at international film festivals.

/2/ The state support is implemented through allotting special-purpose financial means.

/3/ Persons who have been granted state support, render accounts and prove the expediency of the means spent to the Agency.

/4/ Persons who spend the allotted financial means inexpediently, pay back the full amount under the sealed contracts along with the due interests and penalties;

/5/ The members of the National Film Council and the National Committees as well as the employees of the Agency are not allowed to apply for financial support under this Act;

/6/ Applicants to the Agency for financial support for a project pay charges amounting to the rates provided for in the tariff under Art. 25.

Art. 27. /1/ The evaluation criteria for projects, applying for state support, are as follows:

            1. Artistic potential of the project in the context of European cultural diversity;

            2. Commercial and circulation potential of the project;

            3. Economic validity of the draft budget;

            4. Completeness of the strategic plan, submitted by the producer, in line with the management and promotion of the project;

            5. Artistic experience of the producer and director, recognition of their previous works gained from spectators, at world festivals, nominations by professional associations and organizations.

/2/ The provisions pursuant to and in compliance with para 1, 5 are not to be applied to state support for debut Bulgarian films.

Section II

State Support for Film Industry

Art. 28. /1/ State support in the field of film industry is provided for:

            1. Making Bulgarian films;

            2. Making films under circumstances of coproduction with European countries or countries the Republic of Bulgaria has sealed arrangements with in the field of film industry and audiovision.

            3. Making films under circumstances of coproduction with the Bulgarian National Television or other TV national station;

            4. Developing projects, including creating scripts for Bulgarian films or films under circumstances of international coproduction with Bulgarian participation;

            5. Making Bulgarian debut films;

/2/ The financial support pursuant to and in compliance with art. 1, 1, must not be less than 30 percent of the average previous-year budget year for the respective kind of films and must not exceed 80 percent of the budget of the respective aspiring project.

/3/ The amount of the state support for films pursuant to and in compliance with para 1, 2 wherein the foreign co-producers have ensured the financing, must not exceed 10 percent of the means for film production pursuant to and in compliance with art. 18, para 2, 3.

/4/ Financial support pursuant to and in compliance with para 1, 4, must not exceed 5 percent of the average previous-year budget for the respective kind of films.

/5/ The National Film Council proposes a quota each year for financing film projects pursuant to and in compliance with para 1, 5, amounting to no more than 10 percent of the means for film production pursuant to and in compliance with art. 18, para 2, 3.

/6/ No less than 75 percent of the special-purpose financial means allotted under this Act must be spent in the territory of the Republic of Bulgaria. The National Film Council may set higher rates for these expenditures each year.

Art. 29. /1/ Only those producers can apply for support pursuant to and in compliance with art. 28 who are entered in the register pursuant to and in compliance with art. 19, para 1, and who are not in arrears with the Agency and/or the fisc.

/2/ Projects that incite to violence, religious, racial or ethnic intolerance or pornography are banned from support.

Art. 30. /1/ State support pursuant to and in compliance with art. 28 is carried out through granting special-purpose means after holding a competition.

/2/ The Executive Director of the Agency opens the competition procedure by an order containing:

            1. Kinds of film projects pursuant to and in compliance with art. 28, para 1;

            2. The total of the financial means to support the aspiring projects;

            3. Deadline for applications;

            4. Date, place and hour of the competition;

            5. Special requirements from the applicants, when necessary.

/3/ The National Creative Committee considers the submitted projects and evaluates them applying the criteria pursuant to and in compliance with art. 27.

/4/ The decision taken by the National Creative Committee pursuant to and in compliance with the para 3 is considered by the Financial Committee who propose to the Executive Director of the Agency the amount of the state support for each of the projects. The proposed total of the state support must not exceed the financial means pursuant to and in compliance with para 2, 2.

/5/ The Executive Director of the Agency issues an order to select the supported project and fix the amount of the state support on the basis of the decisions made by the National Creative and Financial Committees.

/6/ The Executive Director of the Agency, giving his rationales, refuses to issue an order pursuant to and in compliance with para 5, if the decisions pursuant to and in compliance with para 3 and 4 are made in violation of this Act or the Working Regulations of the Agency;

/7/ The order pursuant to and in compliance with para 5 and the refusal pursuant to and in compliance with para 6 are issued in a 7-day term as of the date of the decision taken by the Financial Committee and are aired in the office building of the Agency in a place accessible to all persons concerned, and the applicant is informed in written form in a 3-day term.

/8/ Participants in the competition may lodge appeals against the order pursuant to and in compliance with para 5 and the refusal pursuant to and in compliance with para 6, which order is appeal able by the participants in the competition as provided in the Administrative Procedure Act.

/9/ On the basis of the validated order pursuant to and in compliance with para 5 the Executive Director of the Agency seals a contract on state support with the winner.

Art. 31. State support for projects for which financing has been ensured by a foreign co-producer from an European country or a country the Republic of Bulgaria has sealed arrangements with in the field of film industry, is being carried out without holding a contest. In such cases the projects are applying to the Agency and are considered by the Financial Committee with the latter fixing the amounts of the state support.

Section III

State Support for Distribution and Exhibition of Films

Art. 32. /1/ State support for distribution and exhibition is granted to Bulgarian films or to films, made under circumstances of coproduction with European countries or countries the Republic of Bulgaria has sealed arrangements with in the field of film industry.

/2/ The state support for the places of exhibition is being granted in the form of special-purpose financial means amounting up to 50 percent of the average revenues per exhibition pursuant to and in compliance with para 1 for a six-month period, prior to the exhibition date of the film, according to the number of exhibitions.

/3/ The state support for distributors is granted in the form of special-purpose financial means amounting up to 50 percent of their budgets for distribution and promotion of films pursuant to and in compliance with para 1.

/4/ The state support for distribution and exhibition of European films, excluding the cases pursuant to and in compliance with paras 2 and 3, is granted to the amount of up to 25 percent of the costs of the distributor and up to 25 percent of the revenues from tickets sold per film per place of exhibition.

Art. 33. /1/ The state support under art. 32 is granted at the request of persons carrying out film exhibitions and distribution, who submit information about their activities pursuant to and in compliance with art. 43.

/2/ The Financial Committee considers the requests submitted and proposes to the Executive Director of the Agency the amount of the state support as defined in compliance with art. 32, paras 2, 3, and 4.

/3/ On the basis of the decision taken by the Financial Committee, the Executive Director of the Agency issues an order to fix the amount of the state support.

/4/ The Executive Director, giving his rationales, refuses to issue an order pursuant to and in compliance with para 3, when the decision pursuant to and in compliance with para 2 is taken in violation of the provisions of this Act or the Rules of Procedure of the Agency.

/5/ The order pursuant to and in compliance with para 3 and respectively the  refusal pursuant to and in compliance with para 4 are issued in a 7-day term as of the date of the decision taken by the Financial Committee and are aired in the office building of the Agency in a place accessible to all persons concerned, and the applicant is informed in written form in a 3-day term.

/6/ The order pursuant to and in compliance with para 3 and the refusal pursuant to and in compliance with para 4 may be appealed against by persons concerned as provided in the Administrative Procedure Act.

/7/ On the basis of the validated order pursuant to and in compliance with para 3 the Executive Director of the Agency seals a contract with the winner of state support.

Art. 34. The Agency supports promotion of Bulgarian films at international festivals in the form of special-purpose financial means for advertising materials, prints and subtitling, as well as for other costs related to the presentation of the films.

Art. 35. Only those persons can apply for state support pursuant to and in compliance with art. 32 and 34 who are entered in the register pursuant to and in compliance with art. 19, para 1, and who are not in arrears with the Agency and/or the fisc.

 

CHAPTER SIX

DISTRIBUTION AND EXHIBITION OF FILMS.

PROVIDING INFORMATION

Art. 36. Distribution and/or exhibition of films in the territory of the Republic of Bulgaria may be carried out only after distribution visas are being issued.

Art. 37. /1/ Visas pursuant to and in compliance with art. 36 are issued at requests in writing by persons distributing the films. The request contains:

            1. Name/title of the applicant and a certificate of entry in the public register of the Agency;

            2. Purpose of the visa: distribution and/or exhibition;

            3. Title of the film in the original language if it is not in Bulgarian; title of the film in Bulgarian under which it is proposed for distribution and/or exhibition in the Republic of Bulgaria;

            4. The name/title and address of the producer of the film;

            5. The name of the holder of the rights who ceded the rights of distribution and/or exhibition and his/her notification address;

            6. Duration of the film or length in meters;

            7. Type of the film support;

            8. Number of the film prints to be distributed or exhibited;

            9. The earliest possible date on which the distributor is able to exhibit the film before the National Film Rating Committee;

            10. A supposed date for the start of the distribution and/or the exhibition of the film in the territory of the Republic of Bulgaria

            11. The rate assigned in the producing country, if it is not the Republic of Bulgaria.

/2/ Enclosed herewith in compliance with para 1 are:

            1. Film Captions;

            2. An annotation on the film up to one page;

            3. A copy of the contract, certifying granted distribution and/or exhibition rights in the territory of the Republic of Bulgaria with a legalized translation in case the original is not in Bulgarian;

            4. A document for paid-up charge.

/3/ In case there are diminutions in the submitted papers, the Agency instructs the applicant to rectify them in a fortnight. Should the diminutions be not rectify in the aforementioned term, the application is considered to be withdrawn.

/4/ The National Film Rating Committee considers the request in a 7-day term as of the date of receiving the duly made application and assigns one of the following ratings:

            1. Rating A , when the film confirms the ideals of humanism or popularizes the national and world cultures or contributes to upbringing children;

            2. Rating B, when the film is in no way contrary to the universal rules of morality in this country, has no restrictive recommendations from the Committee and does not fall in rating A;

            3. Rating C, when the film contains certain erotic scenes or scenes with drinking, taking drugs or stimulants or a few scenes of violence;

            4. Rating D when the film contains quite a number of erotic scenes or scenes with drinking, taking drugs or stimulants or a considerable number of scenes showing violence;

            5. Rating X, when the film is naturalistically erotic or shows violence in an ostentatious manner.

/5/ Films the contents of which is contrary to the universal rules of morality, that laud or exculpate atrocity, violence or taking drugs, that incite to racial, sexual, religious or national hatred, are not rated.

/6/ The decision of the National Film Rating Committee pursuant to and in compliance with paras 4 or 5, is made known to the applicant in a 3-day term. The decision is appealable to the Executive Director of the Agency in a 7-day term after the persons concerned were informed about the decision. In such cases the Executive Director asks another panel of the Committee to come up with a stand and the latter express their opinion in a 7-day term as of the date the appeal has been received.

/7/ The Executive Director of the Agency issues by order a distribution and/or exhibition visa or a refusal in a 3-day term as of the final decision of the Committee.

/8/ The Executive Director of the Agency refuses to issue visas when:

            1. The applicant is not holding the distribution and/or exhibition rights in the territory of the Republic of Bulgaria;

            2. The film has not been rated pursuant to and in compliance with para 5;

/9/ The order pursuant to para 7 is appealable under the Administrative Procedure Act.

Art. 38. The visa contains:

            1. Number;

            2. The original title of the film under which the film will be distributed/exhibited in the territory of the Republic of Bulgaria;

            3. The title of the film as originated;

            4. Name/title of the producer;

            5. Name/title of the holder of the rights for distribution and/or exhibition of the film in the Republic of Bulgaria;

            6. Film rating and age restriction if any;

            7. Purpose of the visa: distribution and/or exhibition;

            8. Deadline for distribution and/or exhibition by the rights-holder in the territory of the Republic of Bulgaria as stipulated in the contract;

Art. 39. On the basis of a validated distribution and/or exhibition visa the Agency enters the film in the public register ex officio.

Art. 40 /1/ The validated distribution and/or exhibition visa is displayed prominently for all spectators in the place where the exhibition is made.

/2/ The image of the visa is put in each of the film prints before the first flash.

/3/ When the film is distributed on video recorders or DVDs the image of the visa is put on each of the supports.

Art. 41. /1/ Exhibitions and distribution of A full-length animation films are carried out in a dubbed versions in Bulgarian language.

/2/ In all notices or ads about the distribution and/or exhibition of a film, as well as on the packagings in which the film is being distributed, as well as in the distribution and/or exhibition visa the following inscriptions are to be put depending on the rate of the film:

            1. Rating A: Recommended to children.

            2. Rating C: Not recommended to children under the age of 12.

            3. Rating D: No persons under the age of 16 are admitted.

            4. Rating X: No persons under the age of 18 are admitted.

/3/ During exhibitions of C films no persons under the age of 12 are admitted unless accompanied by an adult.

/4/ During exhibitions of D films no persons under the age of 16 are admitted in.

/5/ Exhibitions of X films are to be carried out on condition that the place is specialized in exhibiting only X films and no persons under the age of 18 are admitted there.

/6/ Selling or renting of supports with D films to persons under the age of 16 and X films to persons under the age of 18 is prohibited.

/7/ The film may be distributed and/or exhibited in the territory of the Republic of Bulgaria only in the form it was issued a visa to.

/8/ A film distributed and/or exhibited in the territory of the Republic of Bulgaria has to have final titles reading all the creative persons, performers and technicians, who have taken part in the making of the film, the titles of the music pieces, used fully or partially in the film, as well as the holders of the copyrights or of the performer's or producer's rights.

Art 42. A tax is paid to be issued a distribution and/or exhibition visa the amount of which tax is set in the tariff under art. 25.

Art. 43. /1/ Persons carrying out distribution and/or exhibition  provide the Agency with statistic data necessary for the implementation of the duties of the Republic of Bulgaria under international contracts.

/2/ The statistic data pursuant to para 1 contains:

            1. Distributed or exhibited titles;

2. Number of shows of each title per time zone;

            3. The total of the admissions per place for exhibition per exhibited film per time zone;

            4. The total of films sold or rented on video tapes or other supports.

            5. Revenues per title per distribution;

            6. Revenues per title per show.

/3/ The information pursuant to and in compliance with para 1 has to be submitted until the 15th of the next month.

/4/ The information pursuant to and in compliance with para 1 is submitted as per sample approved by the Executive Director of the Agency.

/5/ Office holders, authorized by the Executive Director of the Agency, make checkups of the cinema theatres and exert control over the veracity of the information pursuant to para 2.

Art. 44. No less than 15 percent of the total of yearly time per place of exhibition has to be intended for European films. The time for showing of Bulgarian films must not be less than 5 percent of the total yearly time per place for exhibition, equally allocated throughout the time zones.

Art. 45. With regard to film distribution the following periods are to be observed:

            1. For video exhibitions the period is at least three months as of the premiere in a place for exhibition, unless the distribution contract provides otherwise;

            2. For exhibition on TV channels at least six months as of the premiere in a place for exhibition.

 

CHAPTER SEVEN

ADMINISTRATIVE PENAL PROVISIONS

Art. 46. /1/ Those carrying out producer's or distributor's activities or exhibiting films without a registration under this Act, will be levied a fine on amounting to 8,000 to 20,000 levs, and in cases the perpetrators are legal persons or have one-man businesses, the punishment is penalty payment of the same amount.

/2/ In case of a repeated offense pursuant to para 1, the fine or penalty payment amounts to 16,000 to 40,000 levs.

Art. 47. /1/ Those distributing or carrying out exhibitions of films without being issued distribution visas or in violation of the provisions pursuant to and in compliance with art. 40 and art. 41, are imposed fines on amounting from 5,000 levs to 15,000 levs, and in cases the perpetrator is a legal person or has a one-man business, the punishment is penalty payment of the same amount.

/2/ In case of a repeated offense pursuant to para 1, the fine or penalty payment amounts to 10,000 to 30,000 levs.

 

Art. 48. /1/ Those withholding information under the conditions and terms pursuant to and in compliance with art. 43, 1-4 or impeding an office holder to make a check as provided in art 43, 5, are imposed fines amounting from 1,000 levs to 5,000 levs, and in cases the perpetrators are legal persons or have one-man businesses, the punishment is penalty payment of the same amount.

/2/ In case of a repeated offense pursuant to para 1, the fine or penalty payment amounts to 2,000 to 10,000 levs.

Art. 49. /1/ Those carrying out exhibitions in violation of art. 44 are imposed fines on, amounting from 7,000 to 14,000 levs, and in cases the perpetrators are legal persons or have one-man businesses, the punishment is penalty payment of the same amount.

/2/ In case of a repeated offense pursuant to para 1, the fine or penalty payment amounts to 14,000 to 28,000 levs.

Art. 50. Those distributing films in violation of art. 45 are imposed fines or penalty payments on, amounting from 5,000 to 10,000 levs.

/2/ In case of a repeated offense pursuant to para 1, the fine or penalty payment amounts to10,000 to 20,000 levs.

Art. 51. /1/ The acts determining administrative infringements are issued by officials authorized by the Executive Director of the Agency.

/2/ The penal provisions are issued by the Minister of Culture or by an official authorized by the Minister.

/3/ Establishing of infringements, issues, appeals and implementations of penal provisions are carried out under the Administrative Violations and Sanctions Act.

SUPPLEMENTARY PROVISIONS

1. Within the meaning of this Act:

1. Film is a sequence of related images of whatever length, either accompanied or not by sound, creating an effect of motion, regardless of the nature of the material object, on which the works are brought into being, in the form of feature, animation or documentary cinematographic works, earmarked for distribution or exhibition.

2. Bulgarian Film is a film meeting one of the following conditions:

a/. Has 19 points in compliance with Application No 1.

b/. The film has a original version in Bulgarian language and at least two of its authors are Bulgarian citizens with one of them being either the scriptwriter or director;

c/ The financial participation of the Bulgarian producer amounts to no less than 20 percent of the film budget and the Bulgarian elements represent at least 15 points in compliance with Application No 1.

3. European Film is a film meeting the following conditions:

a/ the European elements represent at least 15 points in compliance with Application No 2;

b/ The film is being produced in its major part by one or more producers from European countries.

4. Debut Film is the first feature film made by a director, out of the process of training at a higher school, with length of up to 30 minutes (feature film or documentary) and 3 minutes (animation).

5. Film Production is a creative process comprising the following stages: development, shooting, editing, sound and rating.

6. Print of the film is a durable material object on which the film is recorded, copied from the original by whatever means, allowing later on to reproduce the work or communicate it to other persons directly or through whatever devices or facilities;

7. Author is a person in the sense of art. 62, para 1 of the Copyright and Neighbouring Rights Act;

8. Exhibition is a show or broadcast of a film with commercial purposes in whatever way through whatever devices in whatever place accessible to an unlimited number of people;

9. Place for Exhibition is a hall or any place, including in the open air, supplied with the necessary equipment and technical means for a show with commercial purposes.

10. Distribution is a sell-out, exchange, donation, renting or borrowing copies of a film, as well as an offer for sell-out or renting such copies;

11. Promotion is any activity organized to popularize the film and encourage its distribution and sell, including its show at national or international events, film festivals or film markets;

12. Average Revenues Per Exhibition are the revenues from the tickets sold divided by the number of the exhibitions;

13. Average Budget of a Feature Film is the budget of a feature film longer than 2,600 m, (over 90 min. long), shot on a 35'' stock, calculated on the basis of the accounts rendered for the costs of the films completed and budgetary costs of the films in production for the previous year, including the costs for making 5 prints for distribution of the film, translation and subtitling into two foreign languages, as well as the expenditures for advertisement and promotion amounting to 10 percent of the budget sum, re-evaluated according to the official inflation index for the previous year;

14. Average Budget of a Documentary is the budget of a documentary longer than 1,600 m, (over 60 min. long), shot on a 35'' stock, calculated on the basis of the accounts rendered for the costs of the films completed and budgetary costs of the films in production for the previous year, re-evaluated according to the official inflation index for the previous year;

15. Average Budget of an Animation Film is the budget of an animation film, shot on a 35'' stock, defined on the basis of one minute screen time, calculated on the basis of the accounts rendered for the costs of the films completed and budgetary costs of the films in production for the previous year, re-evaluated according to the official inflation index for the previous year;

16. Film Caption is the list of the leading creative and technical persons taking part in the making of the film, as well as of the actors who play the leading and supporting parts and roles with special participation.

17. Full-length Film is a film lasting over 70 minutes;

18. Repeated is the violation committed in a one-year term after the penal provision was enforced, penalizing the violator for the same violation.

19. Producer is a person in the sense of art. 62, 3 of the Copyright and Neighbouring Rights Act;

20. Film Original is the material object on which the initial record of the film has been made and of which the film may be reproduced in an unlimited number of copies in whatever way;

21. International Coproduction is a film with the participation of a Bulgarian producer among others.

TRANSITIONAL AND CLOSING PROVISIONS

2. /1/ The Council of Ministers transforms the National Film Centre with the Ministry of Culture into an Executive Agency National Film Centre with the Ministry of Culture in a one-month term after the Act takes effect.

/2/ The activities, property, archives, rights and obligations, including the official and legal relations of the employees from the administration of the National Film Centre with the Ministry of Culture devolve on the Executive Agency National Film Centre.

/3/ Until the constitution of the bodies, as provided by art. 8, 1, their functions are performed  by the respective Committees with the National Film Centre with the Ministry of Culture.

3. In a 2-month term after the Act takes effect, the Minister of Culture issues an ordinance pursuant to art. 24 and proposes to  the Council of Ministers projects of a working regulations of the Executive Agency National Film Centre and a tariff for fees under art. 25.

4. /1/ Persons pursuant to and in compliance with art. 19,1, paras 1-3 are obliged to register in a 3-month term after the Act takes effect.

/2/ Persons registered by the National Film Centre with the Ministry of Culture keep their registration for a 6-month term after the Act takes effect.

/3/ Distribution and exhibition visas issued by the National Film Centre with the Ministry of Culture maintain their validity.

5. /1 In a 2-month period after the Act takes effect, the Minister of Culture announces by an order the list under art. 14.

/2/ In a one-month period as of the announcement of the order under art. 1, the organizations and associations under art. 14, as well as the Ministry of Education and Science and the Bulgarian National Television nominate their representatives for the National Film Council and the National Committees with the Agency.

7. The implementation of the Act is assigned to the Minister of Culture.

The Act was adopted by the 39th National Assembly on November 19, 2003, and sealed with the official stamp of the National Assembly.

President of the National Assembly:

Ognian Gerdjikov

Application No 1 to 1, 2, a/ and c/

 

Bulgarian Elements                                                   Points of Evaluation

 

Creative Party of right-holders under the Copyright and Neighbouring Rights Act:

Scriptwriter                                                                                                      3

Director                                                                                                            3

Composer                                                                                                        1

Director of Photography                                                                               1

_________________________________________________

Total                                                                                                                8

 

Note:

As for the animation films, it is as follows:

Scriptwriter                                                                                                      2

Director                                                                                                            2

Composer                                                                                                        1

Art Director                                                                                                     3

_________________________________________________

Total                                                                                                                 8

 

European Elements                                                    Points of Evaluation

Creative party of Actors:

Leading Part                                                                                                     3

Supporting Part                                                                                               2

Bit Part                                                                                                              1

 ______________________________________

Total                                                                                                                 6

Leading, supporting and bit parts are being evaluated on the basis of the importance of the role and/or the number of shooting days.

 

Creative party of technicians and shooting crew:

Sound and sound-mixing                                                                                1

Editing                                                                                                                1

Sets and costumes                                                                                           1

Studio or locations                                                                                           1

Post-production place                                                                                     1

_________________________________________________

Total                                                                                                                   5

_________________________________________________

Total                                                                                                                  19

 

Application No 2 to 1, 3, "a":

 

European Elements                                                    Points of Evaluation

 

Scriptwriter                                                                                                      3

Director                                                                                                            3

Composer                                                                                                        1

Director of Photography                                                                               1

First Part                                                                                                          3

Second Part                                                                                                     2

Third Part                                                                                                         1

Sound and sound-mixing                                                                              1

Editing                                                                                                              1

Sets and costumes                                                                                          1

Studio or locations                                                                                          1

Post-production place                                                                                    1

_________________________________________________

Total                                                                                                                 19

 

 

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