Procedure For Compensation By State For Damage Caused To Owner Of International Exhibition

Link to law: https://www.riigiteataja.ee/en/eli/ee/VV/reg/515052015001/consolide
Published: 2013-10-01

Procedure for compensation by state for damage caused to owner of international exhibition

Passed 26.09.2013 Annex 140

The Regulation shall be laid down on the basis of § 29 of the Museums Act.

§ 1.  Scope of the regulation

This Regulation establishes the procedure for submission and review of application for the grant of guarantees (hereinafter application) for payment of compensation (hereinafter compensation for damage to the exhibition) to cover direct material damage (hereinafter damage) caused to the owner of a thing of significant artistic or historical value or a set of exhibition consisting of such things (hereinafter exhibition), making a decision on the guarantee of the compensation for damage to exhibition, notification of the damage upon the event of damage, review and assessment of damage, payment of compensation for damage to the exhibition and for reclaim of the compensation for damage to the exhibition by the state.

§ 2.  Submitting an application

(1) Upon planning temporary exhibition, the guarantee of compensation for damage to the exhibition may be applied for by a state museum and a museum using a state-owned museum collection under the terms provided by Chapter 4 of the Museums Act and pursuant to the procedure established in this Regulation.
(2) The guarantee of compensation for damage to the exhibition may be applied for, if the total value of the exhibition evaluated in monetary terms (hereinafter value of exhibition) is at least:
1) 65,000 euros for an inbound exhibition;
2) 10,000 euros for an outbound exhibition.
(3) Value of exhibition shall be assessed by the grantor of the exhibition on the basis of specific interest based on artistic or historical value and particularities of a singular item, regardless of its utility.
(4) If the value of exhibition is less than ten million euros, the application shall be submitted to the Ministry of Culture at least six months prior to the transfer of exhibition to the transporter.
(5) In justified cases, the Ministry of Culture shall be entitled, as an exception, to shorten the term provided for in subsection 4.
(6) If the value of exhibition exceeds ten million euros, the application shall be submitted to the Ministry of Culture no later than at the beginning of the year preceding the year of transferring the exhibition to the transporter, in order to enable submission of planned title of the exhibition, the period of transportation and exhibition and the owner of the exhibition in the annual State Budget Act pursuant to clause § 28 (3) 3) of the Museums Act.
(7) Application shall be complemented by the following:
1) expert assessment reflecting significant artistic or historical value and value of the exhibition evaluated in monetary terms;
2) data reflecting the guarantee to be granted to the exhibition pursuant to equivalent legislation of a foreign state;
3) documents in proof of evidence that the organisation of work of the transporter and exhibitor of the exhibition and the exhibition space or building ensure the preservation of the exhibition and comply with the conditions set by the grantor of the exhibition for the purpose of exhibiting thereof;
4) explanation about the procedure for assessing the condition of things forming part of the exhibition before transfer of the exhibition to the transporter and after receipt of the exhibition from the transporter.

§ 3.  Committee for review of applications

(1) The Minister of Culture shall constitute a single or standing Advisory Committee (hereinafter committee) for review of the compensation application mentioned in clause § 5 4) and in the application.
(2) Composition of the committee shall be confirmed by the order of the Minister of Culture.
(3) The committee consists of at least five members, including representatives of the Ministry of Culture and the Ministry of Finance and experts of art, museology, insurance, security and fire safety, if necessary.
(4) Meetings of the committee shall be convened and chaired by chairman of the committee or vice-chairman of the committee in the absence of the chairman.
(5) Meetings of the committee shall be recorded in minutes.

§ 4.  Review of application and making decision on the guarantee of the compensation for damage to the exhibition

(1) Committee shall review the submitted application and the documents attached thereto and demand submission of additional information and documents, if necessary.
(2) On the basis of the submitted documents, the committee shall make one of the following proposals to the Minister of Culture:
1) to guarantee the compensation for damage to the exhibition to the extent indicated in the application;
2) to guarantee the compensation for damage to the exhibition to a reduced extent;
3) to refuse from the guarantee of the compensation for damage to the exhibition.
(3) Upon making a proposal mentioned in clauses 1 and 2 of subsection 2, the committee shall be guided by the following:
1) the upper limit specified in clause 28 (3) 1) of the Museums Act;
2) artistic or historical value and value of the exhibition evaluated in monetary terms;
3) amount of the guarantee to be granted to the exhibition pursuant to equivalent legislation of a foreign state.
(4) Committee shall make a proposal to refuse from the guarantee of compensation for damage to the exhibition, if it becomes evident from the documents that:
1) application has not been submitted within the period provided for in subsections § 2 (4) -(6);
2) value of the exhibition evaluated in monetary terms does not correspond to the provisions of subsection § 2 (2);
3) the exhibition has no significant artistic or historical value;
4) the submitted documents do not show with sufficient certainty that preservation of the exhibition shall be ensured and the conditions set by the grantor of the exhibition for the purpose of exhibiting thereof shall be complied with;
5) in case of the decision on the guarantee of the compensation for damage to the exhibition, the upper limit of the total amount of compensation for damage to the exhibition guaranteed by the state shall be determined for the exhibitions to be exposed within the calendar year provided by § 28 (3) 1) of the Museums Act shall be exceeded.
(5) Committee shall be entitled to establish mandatory additional requirements for ensuring preservation of exhibition in the proposal mentioned in clause 1 of subsection 2.
(6) It may be determined by the committee in the proposal mentioned in clause 2 of subsection 2 that the guaranteed compensation for damage to the exhibition shall cover only part of the composition, value, period of the exhibition or transportation, territory or risks and the part not ensured shall be guaranteed on the basis of the insurance contract to be concluded pursuant to the Law of Obligations Act.
(7) On the basis of the proposal of the committee, the Ministry of Culture shall prepare a draft order of the Government of the Republic about making a decision on the guarantee of the compensation for damage to the exhibition or refusal thereof and the Minister of Culture shall submit this draft to the Government of the Republic session.
(8) If the Government of the Republic has authorised the Minister of Culture to decide on granting the guarantee of the compensation for damage to the exhibition or refusal thereof, the Ministry of Culture shall prepare a draft ministerial directive on the basis of the proposal of the committee.
(9) The decision on granting the guarantee of the compensation for damage to the exhibition or refusal thereof shall be made by the Government of the Republic or the Minister of Culture on the basis of the authorisation by the Government of the Republic.
(10) The order of the Government of the Republic or directive of the Minister of Culture shall set out the following:
1) planned title of the exhibition;
2) list and description of things forming a part of the exhibition;
3) period of transportation of the exhibition;
4) place and time of exhibition;
5) owner of exhibition;
6) amount of the extent to which the payment of compensation for damage to the exhibition is guaranteed;
7) additional requirements and conditions specified in subsections 5 and 6.

§ 5.  Notification of the damage upon the event of damage

Upon the event of damage, a museum that has applied for guaranteeing the compensation for damage to the exhibition undertakes immediately:
1) to notify the Ministry of Culture;
2) in cooperation with foreign state exhibitor or foreign state agency that has granted the exhibition for the purpose of exhibiting thereof in Estonia, to start preparing an expert assessment in order to determine the extent of the damage occurred and to conduct or order necessary expert analyses;
3) to forward to the Ministry of Culture all the available information concerning the event of damage, in order to determine whether the state undertakes to pay the compensation for damage to the exhibition and the amount thereof;
4) to submit to the Ministry of Culture a compensation application along with the documents prepared in relation to the event of damage showing the extent of damage and the amount of the applied compensation for damage to the exhibition, as well as the occurrence of circumstances enabling the compensation and absence of circumstances excluding the compensation.

§ 6.  Review and assessment of damage

(1) Committee shall review the application submitted pursuant to clause § 5 4) and the documents attached thereto and demand submission of additional information and documents, if necessary.
(2) On the basis of the submitted documents, the committee shall determine whether:
1) the damage meets the conditions mentioned in § 26 of the Museums Act and additional requirements and conditions set out in the decision on guaranteeing the compensation for damage to the exhibition;
2) the damage has occurred in the period specified in clause 28 (1) 1) of the Museums Act;
3) the amount of damage corresponds to the information submitted in the documents.
(3) On the basis of the submitted documents, the committee shall make one of the following proposals to the Minister of Culture:
1) to pay compensation for damage to the exhibition to the extent indicated in the application;
2) to pay compensation for damage to the exhibition to a reduced extent;
3) to refuse from the payment of compensation for damage to the exhibition.
(4) The amount of the compensation for damage to the exhibition shall be planned in the state budget in accordance with the proposal mentioned in subsection 3 and the State Budget Act.
(5) Upon planning the amount of the compensation for damage to the exhibition, the following amounts shall be deducted therefrom both for inbound and outbound exhibition:
1) the amount of deductible specified in clause 28 (3) 2) of the Museums Act;
2) the amount to be compensated on the basis of insurance contract concluded pursuant to the Law of Obligations Act or the guarantee granted to the exhibition pursuant to equivalent legislation of a foreign state.

§ 7.  Payment of the compensation for damage to the exhibition

(1) Compensation for damage to the exhibition shall be paid from the state budget through the Ministry of Culture.
(2) Compensation for damage to the exhibition shall be paid as follows:
1) in the case of restoration or replacement of inbound or outbound exhibition, the compensation for damage to the exhibition shall be paid to the restorer or replacer of the exhibition on the basis of the document attesting the expenditure;
2) if it is not possible to restore or replace an inbound exhibition, the compensation for damage to the exhibition shall be paid to the person or foreign state agency that has granted the exhibition for the purpose of exhibiting thereof in Estonia.
(3) If it is impossible to restore or replace the outbound exhibition, the compensation for damage to exhibition shall not be paid.

§ 8.  Reclaim of the compensation for damage by the state

(1) To the extent of the amount paid as compensation for damage to the exhibition, the state has a right of recourse against the person who is responsible for the damage occurred.
(2) In the matters related to reclaim, the state shall be represented by the Minister of Culture who has a right to delegate an authorisation.
(3) If a person to whom was paid the compensation for damage to the exhibition receives compensation for the same damage from the person responsible for the damage, on the basis of the guarantee granted to the exhibition pursuant to insurance contract or equivalent legislation of a foreign state or from some other source and this amount has not been deducted from the compensation for damage before the payment, then this person undertakes to notify the Ministry of Culture immediately thereof and pay back the compensation to the extent of the amount of the compensation for damage received from other source(s).

§ 9.  Implementation of the Regulation

(1) Application for payment of the compensation for damage to the exhibition shall not submitted to the Ministry of Culture before the European Commission has taken a decision authorising the compensation for damage prescribed in this Regulation or a decision that the compensation does not constitute a state aid.
(2) The Ministry of Culture shall publish on its webpage the decision of the European Commission mentioned in subsection 1.

Andrus Ansip
Prime Minister
Rein Lang
Minister of Culture
Heiki Loot
Secretary of State
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