JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following law.

PREAMBLE

Film and audiovisual activity is a strategic sector of our culture and our economy. As an artistic manifestation and creative expression, it is a basic element of a country's cultural entity. Their contribution to technological advancement, economic development and job creation, together with their contribution to the maintenance of cultural diversity, are sufficient elements for the State to establish the necessary measures for its promotion and promotion, and determine the most appropriate systems for the conservation of film heritage and its dissemination within and beyond our borders. All of this, considering that audiovisual culture, of which cinema is undoubtedly a fundamental part, is present in all areas of society today.

Therefore, it is considered necessary to adopt an appropriate regulatory framework based on four fundamental principles: the definition and support of the independent sectors that exist in our cinematography, both in the field of production as in the distribution and exhibition. The creation of mechanisms to avoid the imbalances that currently exist in the audiovisual market. The adaptation of the new technologies and formats that have been introduced in this field, with special attention to how much the imminent digitalization processes assume. Support for creation and authors as a source of origin of the relationship that works have to maintain with their natural recipients, citizens.

The industrial character of cinematographic and audiovisual activity and the whole of the action of its agents of production, distribution and exhibition must be very present, together with its cultural dimension, so that the protection and promotion policy can be considered within the legal framework and the mechanisms and tools that make it possible to improve the competitiveness of our companies, including aid and tax incentives or the integration into specific research and development policies.

Therefore, with the objective of improving the industrial fabric of companies operating in the sector, enabling their strengthening and facilitating the development of their activity in an open and competitive market, they are established in the new measures of promotion and protection and the existing ones. The purpose of these measures is to consolidate and strengthen the business structure, to finance and to write down the costs of the investments necessary for the strengthening of a continuous level of production of works of different content and with a sufficient quality to ensure their profitability and their possibilities for access to the public.

The Law introduces the concept of the integration of cinematography in the whole of the audiovisual sector, considering this as a whole, with its specificities, for the benefit of film and television, conceiving production Film and audiovisual content as the basic content of television and television as an important element in the dissemination, promotion and financing of cinematography.

It is also the objective of this Law to articulate the relationship between the different subjects operating in the sector, from the creators, producers, technical and artistic personnel, technical industries, distributors, exhibitors and companies videographic. In order to achieve this objective, the role of public authorities is essential in order to promote proper management of new needs that society, in general, and the audiovisual sector, in particular, are demanding. To this end, and without prejudice to the role that the Autonomous Communities play in their respective fields of competence, the General Administration of the State assumes this objective, which materializes in the process of transformation of the Institute of Cinematography and Audiovisual Arts in the State Agency to achieve greater efficiency and agility in management, and in the stabilization of the Cinematography and Audiovisual Protection Fund to provide financial security for the professionals, with particular attention to the independent sectors. Another of the objectives of the Law is the reinforcement of the guardianship for the maintenance of the free competition in the business relations in the case of behaviors that can restrict the competition, including among these, in the field of the practices commercial distribution and exhibition, the demand for the hiring of batch films, so that in order to achieve the exhibition of one of them, the hiring of other films has to be accepted. Likewise, in order to strengthen this access to the diversity of cultural production, the screen share of the community cinema is also regulated to ensure its presence in the exhibition halls.

The need to clarify various concepts not covered by previous legal regulations has led to the elaboration of a wide range of definitions to delimit terms used in film activity and The European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European Commission, the European a cinematographic or audiovisual work in order to obtain Spanish nationality and, therefore, their potential for access to public aid.

Furthermore, the dispersal of excessive legal standards has made it possible to collect in a single text the different aspects affecting the activities of the audiovisual sector, repealing those which were unnecessary or inoperative.

The development of new technologies and the digital revolution, as well as innovations in the field of R & D + i, are also included in the text of the Law, as elements of potential impact in the field of creation in the economic growth of the country and in the increase of jobs.

The determined intervention against the conduct and activities that violate the intellectual property rights is also contemplated in this Law, as the reproduction, representation or dissemination of cinematographic films and other audiovisual works not authorised by their owners, in addition to being a flagrant violation of their rights, constitute a serious harm to all the sectors involved, which makes it necessary, also from this rule, to collaborate with the eradication of such behaviors.

This Law is based on Articles 14, 16 and 20 of the Spanish Constitution and is based on the principles of freedom of expression and pluralism, in the promotion of the cultural and linguistic diversity of our country, in support of the original versions of the works as basic protection of their authors, in the diffusion of the European cinema of whose environment Spain is an active member and of the Ibero-American cinema as a natural reference of our cinematography and audiovisual industry, in the protection of minors, in the attention of human diversity, accessibility and non-discrimination on the grounds of disability, as well as respect for gender equality. It is also inspired by Article 44.1 of the Constitution which provides that public authorities will promote and protect access to culture, to which everyone is entitled.

The promotion measures contained in this Law are fully developed in a cultural field, with absolute relevance to the objectives and guiding principles of the Convention on the Protection and Promotion of the Diversity of the cultural expressions, adopted at the UNESCO General Conference held in Paris on 20 October 2005, being ratified by Spain, according to the instrument of ratification published in the "Official State Gazette" of 12 February 2005. of 2007, as well as with full respect for other international agreements in the field, such as the Universal Declaration of Language Rights.

The consideration given in this Law to the autonomic action takes into account the socio-economic reality in which the film and audiovisual industry develops from the point of view of the competences of the European Communities. Autonomous, taking into account the multi-cultural and plurilingual dimension of the State in order to materialize the intervention of the public authorities in the preservation and stimulation of the cultural values of the social body.

The Law consists of 40 articles, twelve additional provisions, a transitional provision, a repeal and five endings. The text of the text is available in four chapters, subdivided in turn, some of them in sections.

Chapter I is dedicated to general provisions such as object, scope, and definitions.

Chapter II, the Management of Cinematography and the Audiovisual, begins with a regulation of matters common to all sectors, such as those relating to the nationality of cinematographic and audiovisual works and the Register Administrative of Companies, continues with a specific section dedicated to the defense of the competition, to end up regulating by differentiated sections the specific aspects of ordination of each one of the audiovisual sectors. It is worth noting, in relation to the general rules concerning the exhibition, the establishment of concrete measures against audiovisual piracy, consisting in the establishment of an express ban on the recording of works, in the communication to the holders of the same and in actions intended to be carried out by the public. These specific measures fall within the general objective of the Institute of Cinematography and the Audiovisual Arts to promote the fight against these practices and the collaboration with the competent bodies for the protection and the defence of intellectual property.

Chapter III contains the various incentive and incentive measures, also broken down by sections, whose objects include aid for the creation and development of production, distribution, conservation and promotion, as well as other support and incentives related to access to credit, the use of new technologies and promotion abroad. Taking into account the nature of the measures envisaged, it is essential to establish a State aid system which, on the basis of the uneven implementation in the territory of the actors involved in the various aspects of the Film industry, to ensure its full effectiveness within the basic management of the sector, and to ensure the same access, access and enjoyment of aid for all potential beneficiaries with independence from its geographical origin. In accordance with the established case-law of the Constitutional Court in the field of grants, these grounds make it essential to maintain an aid fund which will be centrally managed. Consequently, the provisions of Chapter III of this Law, and their subsequent regulatory development, constitute a body of rules circumscribed to the regulation of the State aid system, without prejudice to the establishment of different measures for the promotion by the Autonomous Communities, governed by their own rules. It also provides for measures to promote exhibition halls, given their character as a vehicle for access to culture, in collaboration with the Autonomous Communities.

Finally, it is also the object of this Chapter III to recognize the specialties provided in the Law for the tax incentives applicable to the cinematography sector, in accordance with the tax regulations. In addition, in order to make better use of tax incentives, the constitution and use of existing legal figures will be encouraged in order to enable the film sector to benefit from the tax treatment they entail. It is also recognised that the full effectiveness of these figures requires a strengthening of legal certainty in the application of tax incentives, thereby reducing by half the deadline for responding to binding tax consultations. the film sector in front of the Tax Administration. In this context, the fiscal incentives are stable until 31 December 2011 and, in order to assess their effectiveness properly, the commitment to jointly present the Ministry of Economy and Finance and the Ministry of Finance is acquired. Ministry of Culture a study on the same and a proposal to adapt to the economic reality and the Community legislation.

Chapter IV regulates the sanctioning regime, where certain infringements and sanctions are more precisely defined than on previous occasions, making them more appropriate and effective in relation to the purposes of pursue.

As for the final part, the content of the additional first provision relating to the transformation of the Institute of Cinematography and Audiovisual Arts into the State Agency, and the forecast of the second provision relating to the collective bodies with participation in certain areas, including, finally, the possibility for viewers to express their views as a means of obtaining useful information for possible actions to be performed from the Institute.

It is also noteworthy that the final provision of the first provision in Law 28/1998 of 13 July on the sale of movable property, the object of which is the creation of an additional section for the registration of audiovisual works and recordings.

This Law, for which the affected sectors and the Autonomous Communities have been consulted, is dictated by the provisions of Article 149.2 of the Constitution, which provides that, without prejudice to the The State shall consider the service of culture as duty and essential attribution. However, they are covered by the following titles: Articles 7, 10 to 18, 22 and 23, 24 to 27, 28, 31, 32, 33, 34 and 38 to 40, as well as the additional eleventh provision are made under Article 149.1.13. of the Constitution; Articles 8 and 9 are given in application of Article 149.1.1. of the Constitution; Article 35 is issued under the provisions of Article 149.1.15. of the Constitution; the additional provision seventh is given in application of the article 149.1.30. 1st of the Constitution; the eighth and ninth additional provisions are dictated under the article 149.1.7. 1st of the Constitution; the first provision is made in application of article 149.1.6. of the Constitution, and article 21 and the second and fourth final provisions are dictated under the protection of article 149.1.14

CHAPTER I

General provisions

Article 1. Object.

This Law aims at the ordination of the various substantive aspects of the cinematographic and audiovisual activity developed in Spain; the promotion and promotion of the production, distribution and exhibition of works Film and audiovisual and the establishment of conditions which favour its creation and dissemination as well as measures for the conservation of cinematographic and audiovisual heritage, all in a context of defence and promotion of the cultural identity and diversity.

Article 2. Scope.

The provisions of this Law apply to natural persons resident in Spain and to Spanish companies and nationals of other Member States of the European Union and the European Economic Area established in Spain conformity with the legal system, which carry out activities of creation, production, distribution and film and audiovisual display as well as related technical industries.

Article 3. Competent organ of the General Administration of the State.

In the field of the General Administration of the State and without prejudice to the functions of other ministerial departments, it is up to the Ministry of Culture, through the Institute of Cinematography and the Arts Audiovisual, the exercise of the state functions that are determined in this Law.

Article 4. Definitions.

For the purposes of this Law, the following definitions shall apply:

(a) Film film: All audiovisual works, fixed in any medium or medium, in whose production the work of creation, production, assembly and post-production is defined and which is intended, in the first term, to its commercial exploitation in cinema halls. Mere reproductions of events or representations of any kind are excluded from this definition.

(b) Other audiovisual works: Those which, in compliance with the requirements of point (a), are not intended to be displayed in cinematographic rooms, but reach the public through other means of communication.

c) Feature film: Film film having a duration of sixty minutes or more, as well as the film film with a duration of more than forty-five minutes, produced in support of 70 mm. format, with a minimum of 8 drilling by image.

d) Short film: Film film having a duration of less than sixty minutes, except for the 70 mm format provided for in the preceding letter.

e) Film for television: The unitary audiovisual work of fiction, with creative characteristics similar to those of cinematographic films, whose duration is greater than 60 minutes, has final outcome and with the singularity that its commercial exploitation is intended for broadcast or broadcast by television operators and does not include, in the first place, the exhibition in cinema halls.

(f) Spanish film: The one that has obtained a certificate of Spanish nationality, issued in accordance with the provisions of Article 12.

g) Television series: The audiovisual work consisting of a set of episodes of fiction, animation or documentary with or without a common generic title, intended to be broadcast or broadcast by television operators successive and continuous, each episode being able to correspond to a narrative unit or to have a continuation in the next episode.

h) Animation series Pilot: The animation audiovisual work that marks the characteristics and style that will have to have a series and allows the producer to finance and promote it.

i) New performer: He who has not led or co-directed more than two qualified feature films for commercial exploitation in film exhibition halls.

j) Creative personnel: creative personnel of a film or audiovisual work shall be considered as:

-The authors, who for the purposes of article 5 of this Law are the director, the screenwriter, the director of photography and the composer of the music.

-The actors and other artists who participate in the work.

-The creative personnel of a technical nature: the chief assembler, the artistic director, the sound chief, the figure and the head of characterization.

k) Television operator: The natural or legal person who assumes the editorial responsibility for television programming and who transmits it or makes it broadcast by a third party, as provided for in Article 3 of the Law 25/1994 of 12 July 1994 incorporating into the Spanish legal system Directive 89 /552/EEC on the coordination of laws, regulations and administrative provisions of the Member States relating to the pursuit of television broadcasting.

l) Film exhibition room: Local or film exhibition grounds open to the public by price or consideration fixed by the right of assistance for the screening of certain films, either permanent or seasonal local, and whatever their location and ownership.

m) Film complex: The premises that have two or more display screens and whose operation is carried out under the ownership of the same natural or legal person with identification under the same label.

n) Independent Producer:

1. Any natural or legal person who is not the subject of a dominant influence by a media service provider/audiovisual broadcast or a private television channel holder, nor, on the other hand, has a dominant influence, is, in any of the cases, for reasons of ownership, financial participation or for having the power to condition, in some way, the decision-making of the respective administrative or management bodies.

Without prejudice to other assumptions, it shall be understood, in any case, that the dominant influence exists when any of the following circumstances are present:

1. The membership of a production company and a service provider of audiovisual communication/broadcasting and/or a holder of a television channel to a group of companies, in accordance with the provisions of Article 42 of the Code Trade.

2. The possession, directly or indirectly, by a provider of an audiovisual communication/broadcasting service or a television channel holder of at least 20 per 100 of the share capital, or 20 per 100 of the rights of a production company's vote.

3. The possession, directly or indirectly, of a production company of at least 20 per 100 of the voting rights of a media service provider/audiovisual broadcast or television channel holder.

4. The acquisition by the production company, during the last three social exercises, of more than 80 per 100 of its cumulative turnover from the same service provider of communication/audiovisual broadcasting or The holder of a state-wide television channel. This shall not apply to production companies whose business figure has been less than EUR 4 million during the three preceding social years, or during the first three years of the business of the undertaking.

5. The possession, directly or indirectly, by any natural or legal person of at least 20 per 100 of the subscribed capital or voting rights of a production company and, at the same time, of at least 20 per 100, of the social capital or the voting rights of a service provider of audiovisual communication/broadcasting and/or a television channel operator.

2. Also, a natural or legal person who is not related to a non-Community capital company, depending on the company's executive bodies, its shareholding, its decision-making capacity or its business strategy.

n) Independent distributor: Aquella natural or legal person who, exercising the activity of film or audiovisual distribution, is not primarily engaged by a non-Community equity firm, nor does it depend on It is based on its executive bodies, its shareholders, its decision-making capacity or its business strategy.

It shall also be considered as independent of the distribution company which is not primarily engaged by a television operator, by a communications network or by public capital, whether or not they have a Community character; of them according to their executive organs, their shareholding, their decision-making capacity or their business strategy.

or) Independent Exhibitor: The natural or legal person who exercises the activity of a film exhibition and whose majority or egalitarian capital has no non-Community character.

Also, that it is not primarily engaged by non-Community production or distribution companies, nor does it depend on them according to their executive bodies, their shareholders, their decision-making capacity or their strategy business.

Equally, not primarily involved by a television operator, by a communications network or by public capital, whether or not they have a Community character, nor are they dependent on them according to their executive bodies, their shareholders, their decision-making capacity or their business strategy.

p) Technical industries: The set of industries necessary for the production of cinematographic or audiovisual work, from the filming to the achievement of the first standard copy or the digital master, the more necessary for the distribution and dissemination of the work by any means.

CHAPTER II

Cinematography and Audiovisual Management

Section 1. General Provisions

Article 5. Nationality of cinematographic and audiovisual works.

1. The Spanish nationality shall be the works carried out by a Spanish production company, or another Member State of the European Union established in Spain, to which it is issued by a certified competent authority of Spanish nationality. recognition that they meet the following requirements:

a) That the cast of authors of cinematographic and audiovisual works, understood by such director, the writer, the director of photography and the composer of the music, is formed, at least 75 per 100, by persons with Spanish nationality or any of the other Member States of the European Union, of the States party to the Agreement on the European Economic Area, or who hold a residence card or authorization in force in Spain or in any of the other Member States those States.

In any case, the film director will be required to always comply with that requirement.

b) That actors and other artists involved in the production of a cinematographic or audiovisual work are represented at least 75 per 100 by persons who meet the requirements of nationality or residence set in the letter above.

c) That creative personnel of a technical nature, as well as other technical personnel involved in the development of a cinematographic or audiovisual work, are represented, each at least 75 per 100 per cent. persons who comply with the nationality or residence requirements set out in point (a) of this paragraph.

d) That the cinematographic or audiovisual work be performed preferably in its original version in any of the official languages of the Spanish State.

e) That the filming, except for the requirements of the indent, the post-production study and the laboratory work are carried out on Spanish territory or other Member States of the European Union. In the case of animation works, production processes must also be carried out in such territories.

2. They shall also have the consideration of Spanish cinematographic or audiovisual works carried out under co-production with foreign companies, in accordance with the conditions required for this purpose by the specific regulation on the subject or by the relevant international conventions and those affecting the Ibero-American Community of Nations.

3. Community work shall mean a certificate of nationality issued by one of the Member States of the European Union.

Article 6. Protection of cinematographic and audiovisual heritage.

1. The Institute of Cinematography and Audiovisual Arts, through the Spanish Filmoteca, will ensure the safeguarding and dissemination of Spanish film and audiovisual heritage through the preservation and restoration of original media, as well as copies of films, digital works, photographs, music and sounds, scripts, books, material used in films and museum pieces in the history of cinema, posters and articles published as elements of dissemination or marketing.

2. The beneficiaries of the public aid covered by this Law will be obliged to submit a copy of the cinematographic or audiovisual work, in perfect conditions and with their definitive etalonage, to the Spanish Filmoteca and, if necessary, to the Filmotecs of the Autonomous Communities.

3. The provisions of the above paragraphs are without prejudice to the powers of the Autonomous Communities in respect of their assets, which shall be governed by their own rules.

Article 7. Administrative Registry of Film and Audiovisual Companies.

1. To be a beneficiary of certificates of qualification, credits, aids and other stimuli established in this Law, it will be necessary to register in the Administrative Registry of Film and Audiovisual Companies, integrated in the Institute of Cinematography and the Audiovisual Arts.

In this Register, of a public nature, they shall be entered, for the purposes provided for in this Law and in the terms that are regulated by law, the natural or legal persons of the companies established in Spain, as the holders of cinema exhibition halls, even if they do not have a business form, that perform any activity of those included in paragraph 3 of this Article.

2. The registration of a company in the register of cinematographic and audiovisual companies of a Autonomous Community which has established it, shall be registered in the Register of the Institute of Cinematography and the Audiovisual Arts, without the need for the company to process a second application for registration.

3. The Register shall be structured in Sections, covering all cinematographic and audiovisual activities: production, distribution, exhibition, laboratories, filming and dubbing studies, audiovisual material and other related activities determine regulentarily.

Article 8. Qualification of films and audiovisual works.

1. Before proceeding to the marketing, dissemination or advertising of a film or audiovisual work by any means or in any medium in Spanish territory, it must be qualified by groups of ages of the public to which it is intended, by means of a decision of the Director of the Institute of Cinematography and the Audiovisual Arts, to report from the Qualification Commission or the competent bodies of those Autonomous Communities which have powers for the qualification of films and audiovisual materials. The exception of audiovisual works which, in accordance with their specific rules, are subject to self-regulation.

2. For the purposes of Law 25/1994 of 12 July, incorporating Directive 89 /552/EEC into the Spanish legal system, on the coordination of laws, regulations and administrative provisions of the Member States, concerning the pursuit of television broadcasting activities, the rating agency shall, in sufficient time, inform the television operators subject to that Law of the qualification which has been given to the films cinematographic or audiovisual works for dissemination in exhibition rooms or other media audiovisual.

Article 9. Advertising of the qualification of films and audiovisual works.

1. The qualifications of films and other audiovisual works should be made known to the public, as a guide, by the appropriate means in each case. To this end, the competent body shall regulate the obligations of those carrying out communication, distribution or marketing acts.

2. Films and other audiovisual works of a pornographic nature or which make use of violence will be described as 'X' films. The public display of these films will be made exclusively in the "X" rooms, which will in no case have access to those under the age of 18, and this ban should be visibly included for information from the public. The other "X" qualified audiovisual works may not be sold or rented to minors and may not be within the reach of the public in establishments where minors have access.

3. In the advertising or presentation of films and other audiovisual works described as 'X', only their title and the data on the technical and artistic information of the film, except for any iconic representation or reference, may be used. argummental. Such advertising may only be displayed inside the premises where the film is planned or marketed, or included in the media or advertising billboards. In no case shall the title of the film explain its pornographic or apologetic character of the violence.

Section 2. Defense of Competition

Article 10. Defence of free competition.

The Institute of Cinematography and the Audiovisual Arts or, where appropriate, the competent bodies of the Autonomous Communities, will ensure that free competition in the market is not altered. For these purposes, they shall inform the National Competition Commission or, where appropriate and where appropriate, of the respective Competition Bodies of the Autonomous Communities, the acts, agreements or practices of which it is aware and which provide evidence that they are contrary to the law of the defence of competition, by communicating all the factual elements within their scope and, where appropriate, by sending a non-binding opinion of the rating which the facts deserve.

Section 3 Of Production

Article 11. General rules.

1. Before performing an activity of production affected by any of the measures provided for in this Law, the production companies must register in the Administrative Registry of Film and Audiovisual Companies or in the register of a company Autonomous Community.

2. They are obligations of the production companies, derived from the acquisition of the incentive measures, the presentation of the films or other audiovisual works which are the subject of the same for their qualification by age groups of the public to which they are (a) to obtain the certificate of Spanish nationality and the documentary accreditation of its cost of production in accordance with the rules to be laid down. They must also give a copy of the cinematographic or audiovisual work to the Spanish Filmoteca and, where appropriate, the Filmotecs of the Autonomous Communities, and grant authorization for use to the Institute of Cinematography and the Arts Audiovisual for the activities of promotion of Spanish cinematography abroad. The production companies shall undertake the commitment to temporarily maintain ownership of the rights of the film or other audiovisual works on their property, in the terms that are determined by law.

Article 12. Certificate of Spanish nationality for a cinematographic or audiovisual work.

The certificate of Spanish nationality of a film or audiovisual work not intended for commercial exploitation in exhibition rooms may be issued ex officio, or at the request of the person concerned, by the Institute of the Cinematography and the Audiovisual Arts or the Autonomous Community, where appropriate, at the time of the qualification of the cinematography and the Autonomous Community, after verification that the conditions laid down in Article 5 are met.

Article 13. Accreditation of the cost of films.

1. For the purposes of calculating the aid provided for in this Law, the cost of a film shall be the total of the costs incurred by the production company up to the achievement of a standard copy or a digital master, plus the derivative of certain basic concepts for their proper implementation and promotion.

2. An investment by the producer in a film shall be the amount provided by the producer with own resources or with non-reintegrable resources, or as a transfer of the operating rights of the film.

In no case may the subsidies received, nor the contributions made by any government, entity or company of public ownership, nor those made in respect of the producer, be computed as investment by the producer. co-producer or associated producer, or through any other financial contribution, by companies providing television services.

3. In the case of films made in co-production with other countries, the cost and investment of the producer to be documented shall be that of the costs incurred by the Spanish production company in the film.

Section 4. Of Distribution

Article 14. General rules.

1. Before performing the activities of film distribution, the distribution companies must register in the Administrative Registry of Film and Audiovisual Companies or in the own registry of an Autonomous Community.

2. The companies that are legally constituted and that credit the relevant rights of exploitation of conformity and in compliance with the law in force, will be able to distribute in Spain cinematographic works from any country in any version, folded or subtitled, in the various official languages of the State, all without prejudice to the powers conferred on the Ministry of Economic Affairs and Finance with regard to the importation of films and respect to the rules of competition, in particular in relation to box office revenues.

For these purposes, the provisions of Article 10 of this Law will apply to conduct which, assuming a concerted practice of commercial practices, may restrict competition in the terms provided for in Law 15/2007, of 3 July, Defense of the Competition. In addition, the provision of Article 10 will apply to the requirement on the part of the distribution companies for the recruitment of batch films, so that in order to achieve the exhibition of one of them, it will have to accept the hiring of others. films.

Section 5. Of The Exhibition

Article 15. General rules.

1. Prior to the commencement of his or her activities, a film exhibition hall shall be registered in the Administrative Register of Motion Picture and Audiovisual Enterprises or in the own register of an Autonomous Community, and the room included in the the register of the operator. Each room shall be presumed to be in operation in accordance with the declared season and shall be operated by the operator who has so stated in the Register.

2. The rules governing the operation of the rooms shall be regulated by the competent bodies.

3. The recording of projected films in film exhibition halls or in other premises or venues open to the public, including free access, shall be prohibited.

Those responsible for the exhibition rooms or other premises or enclosures mentioned in the previous paragraph shall ensure that such recordings are avoided, warning of their prohibition and may prohibit the introduction of cameras or any other type of instrument intended to record image or sound. They shall also communicate to the owners of the works any attempt to write them.

4. Public administrations carrying out cinematographic projections free of charge or with a symbolic price shall not include in their programming films of less than 12 months of age from their release in exhibition rooms, except in the case of cases in which, from the representative bodies of the film and video-sector exhibitors, it is communicated to those authorities that there is no injury to the commercial activity of the companies.

5. The state and regional authorities, in the field of their respective competences, will be able to collaborate with local administrations in the creation of municipal halls of ownership that promote the cinema in its various expressions, provided that in the municipalities where they intend to be located there is a deficit of exhibition halls of private ownership, or those municipal halls of ownership offer cultural programming of alternative character other than that of the commercial halls.

Article 16. Control of attendance and performances of cinematographic works.

1. The holders of the cinema exhibition halls shall comply with the procedures laid down or which may be established in accordance with the rules governing the control of assistance and the declaration of returns which enable it to be known as accurately, rapidly and reliability of the revenue generated by the films through their exploitation in the cinema exhibition halls, in detail sufficient to support the administrative action and the exercise of legitimate rights of the In the case of the Commission, the Commission has taken into account the fact that the intellectual property. For these purposes, the Institute of Cinematography and the Audiovisual Arts or the competent bodies of the Autonomous Communities may be assisted by the information provided by entities established for the purpose of obtaining data implementation throughout Spain and recognised professional solvency.

2. The regulatory procedure for such control procedure shall be that which is regulated by the competent bodies.

3. For the purposes set out in this Article, the appropriate mechanisms of collaboration between the Institute of Cinematography and the Audiovisual Arts and the corresponding organs of the Autonomous Communities shall be established.

Article 17. General rules for "X" Rooms.

1. Authorization for the operation of "X" rooms shall be granted, at the request of the person concerned, by the competent authority of the Autonomous Community where the room is intended to be established. Such authorization must be entered in the Register of Companies of the Institute of Cinematography and the Audiovisual Arts, or in the competent autonomic, prior to the commencement of its activities.

2. The rooms must inform the public of their character by the indication of Room "X", which will appear as exclusive label of the local, not being able to project other films that the qualified as "X" films. In the case of a cinema complex where there are commercial rooms and 'X' rooms, the rooms must operate independently and independently in relation to the commercial rooms.

Article 18. Screen quota.

1. Cinema exhibition rooms shall be required to programme within each calendar year cinematographic works of the Member States of the European Union in any version, in such a way that, at the end of each calendar year, at least 25 per 100 of the total of the sessions which have been scheduled with Community cinematographic works. The annual total count shall be the exception of the sessions in which third-country cinematographic works are displayed in the original version subtitled.

2. In order to comply with the screen quota, they shall have a double value in the calculation of the percentage provided for in the preceding paragraph in those sessions where they are projected:

a) Community films of original fiction subtitled to one of the official Spanish languages.

b) Community animation films.

c) Community documents.

(d) Programs composed of groups of Community short films whose total duration is more than sixty minutes.

e) Community films incorporating accessibility systems for persons with physical or sensory disabilities, in particular the sub-title and the audio description.

(f) Community films which are screened in cinemas or film complexes which, in the course of the year, obtain a gross collection of less than EUR 120,000.

g) Community films when they remain in operation in the same room for more than 18 consecutive days or for a consecutive period of 3 weekends.

3. The provisions of this article will also apply to film screenings in exhibition rooms based on videographic, digital or any other support that technical advances could provide.

4. In the film complexes formed by two or more exhibition rooms, registered in the Administrative Registry of Film and Audiovisual Companies, the fulfillment of the above mentioned proportions can be executed by the complex as a whole, with the total number of sessions projected by the complex on an annual basis.

5. Films produced by public administrations, advertising or propaganda of political parties, qualified as "X" films and those which, by firm judgment, are declared to constitute a crime shall not account for the compliance with this obligation.

6. Five years after the law's full entry into force, the Ministry of Culture will assess the cultural, economic and industrial impact of the screen fee.

CHAPTER III

Promotion and incentive measures for cinematography and the audiovisual sector

Section 1. General Provisions

Article 19. General provisions.

1. The Institute of Cinematography and Audiovisual Arts, within the budgetary limits approved for each financial year:

(a) It shall establish incentive measures for the production, distribution, exhibition and promotion within and outside of cinematographic films and other audiovisual works, with particular regard to the dissemination of works of cultural interest, as well as for the conservation in Spain of negatives, photochemical or digital masters and other equivalent supports by means of the annual call for aid.

b) Promote and promote independent production, with specific incentives, additional aid for the depreciation of films and measures to facilitate the competitiveness and development of enterprises.

(c) Facilitate access to loans on favourable terms by means of a payment of financial charges and the extension of the system of bank guarantees for obtaining them, in the different areas of film activity and audiovisual, with priority given to projects incorporating accessibility measures, such as the sub-title and the audio description.

(d) Support, in the framework of tax legislation, the implementation of different measures or schemes that contribute to the promotion of cinematography and the audiovisual sector.

e) Subscribe to collaboration agreements with public or private entities necessary for the promotion of cinematographic and audiovisual activities, as well as for the training of professionals. It will collaborate with the different educational administrations to promote the knowledge and dissemination of cinema in the different educational fields.

f) Promote the performance of R & D + i activities in the film and audiovisual field.

g) Establish measures to promote gender equality in the field of film and audiovisual creation.

h) Promote the work of the competent bodies to act against the activities of intellectual property rights and especially in the prevention of intellectual property rights. It shall also collaborate with any organ or entity in activities that are aimed at protecting and defending intellectual property.

i) You can set prizes in recognition of a career path.

2. The following cinematographic or audiovisual works may not benefit from the promotion measures provided for in this Law:

(a) Those produced directly by television operators or other audiovisual media service providers.

(b) Those financed entirely by public administrations.

c) Those with essentially advertising content and those of political propaganda.

d) Those who have obtained the "X" film rating.

e) Those who violate or do not respect the rules on the assignment of intellectual property rights.

(f) Those who, by final judgment, were declared at some extreme constitutive of crime.

g) Those produced by companies with labour debts, in accordance with the provisions of Article 24.3.

3. In the General Budget of the State, a Fund for the Protection of Cinematography and Audiovisual, whose management will be carried out by the Institute of Cinematography and Audiovisual Arts, will be provided annually, without prejudice to the the existence of other specific allocations, the aid provided for in this Law.

4. The provisions of the above paragraphs are without prejudice to any incentive measures which the Autonomous Communities may undertake in the field of their respective powers, which shall be governed by their own rules.

Article 20. Applicable rules.

1. The aid scheme provided for in this Law will be subject to the provisions of Law 38/2003 of 17 November, General of Grants and Royal Decree 887/2006 of 21 July, for which the Regulation of the Law is adopted.

2. The State aid scheme provided for in this Law, which will include, on the basis of the rules governing them, the specialities for granting them, appropriate to the characteristics of the sector to which they are intended, will be developed.

3. Pursuant to Article 88.3 of the Treaty establishing the European Community, the regulatory bases for aid shall be notified to the European Commission in order to verify their compatibility with the common market.

Article 21. Tax incentives.

1. The tax incentives applicable to the cinematography sector will be those established in the tax legislation with the specialties provided for in this Law.

2. For a better use of the tax incentives provided for in the tax legislation, in particular those regulated in Articles 34.1 and 38.2 of the recast of the Law on Corporate Tax, approved by the Royal Legislative Decree 4/2004, of 5 March, the Institute of Cinematography and Audiovisual Arts will promote:

(a) The formation of economic interest groups in accordance with the provisions of Law 12/1991 of 29 December of economic interest groups, to which the tax regime established in the Articles 48 and 49 of the said recast text and other implementing rules.

(b) the investments of venture capital institutions in the film sector, as provided for in Law 25/2005 of 24 November, regulating risk capital institutions and their management companies, to which they are subject to the tax arrangements provided for in Article 55 of that recast text and other implementing rules shall apply to them.

Section 2. Development and Development Aid

Article 22. Support for scripting and project development.

1. The creation by means of the granting of aid to natural persons for the development of feature-length scripts shall be encouraged, which shall be developed in time to be determined by regulation.

In the granting of such aid, consideration will be given to the proposal of a collegiate body created for this purpose, which will assess, in particular, the quality and originality of the projects presented, the film feasibility and, in its case, the professional history of the scriptwriters. This collegiate body will also have the task of reporting on the quality of the scripts once they have been completed.

The amount of such aid shall be set out in the relevant call, with the maximum limit to be fixed.

2. Aid may also be granted to independent producers for the development of feature-length projects, with preference for those who are based on scripts which have received support for their writing as provided for in paragraph 1. previous. For the granting of such aid, there shall be a collegiate body which shall report on the concurrents to the call, assessing:

a) The originality and quality of the dash.

b) The budget and its suitability for project development.

c) The solvency of the producer and its financing plan.

In the case of projects based on scripts which would have obtained support for their writing as provided for in paragraph 1, the production company must carry out the development of the project with the scriptwriter. same.

The amount of such aid may not exceed 60 per 100 of the budget, nor the amount to be regulated.

Article 23. Aid for cultural and non-regulated training projects.

1. It will be possible to establish measures that support projects that, belonging to the theoretical field or the edition, among others, are capable of enriching the Spanish audiovisual landscape from a cultural perspective, as well as those projects that support specific non-regulated training programmes for professionals, including creative and technical staff, or public.

2. For the granting of such aid, which will be proposed by a collegiate body, consideration will be given to:

a) The contribution of the project to the knowledge and dissemination of film culture.

b) The specific theoretical scope in which the project is developed.

c) The career path of the natural person, company or entity that presents it.

d) The feasibility of the project from an economic point of view.

e) Its ability to reach broad professional or public sectors.3. The aid for cultural projects shall not exceed 60 per 100 of the amount of its budget, nor the maximum amount to be laid down in regulation.

Section 3. Production Aid

Article 24. General criteria.

1. In the granting of production aid, and irrespective of the fact that some of the production costs of films in other countries may be incurred in accordance with the co-production agreements and the implementing directives, it is necessary to be able to All aid for films other than those made in Spanish-foreign co-production shall comply with the following requirements, in terms which are determined in accordance with the following conditions:

a) Employ, in its original version, some of the official Spanish languages.

b) Use in your bearings the Spanish territory in a majority way.

c) Carry out the post-production study and the laboratory work mainly in Spanish territory. Such a requirement shall also be required in the production processes of the animation works.

In the event of failure to meet any of the above requirements, the aid to which the production company may be eligible shall be reduced by 10 per 100 for each of the paragraphs which do not comply with the film.

2. The production companies must be holders of the rights of ownership of the audiovisual works produced to the extent necessary for the exploitation and marketing of such works, with the exception of the provisions of the legislation of intellectual property in the field of the transmission and exercise of the rights of such nature.

3. In order to qualify for such aid, the production companies must provide documentation of the fulfilment of the obligations they have undertaken with the creative, artistic and technical staff, as well as with the technical industries, as follows:

(a) In the case of aid for depreciation or short films, the fulfilment of the obligations relating to the film which is submitted to such aid shall be established.

(b) In the case of aid for the production of feature films and short films on a project, the accreditation shall cover the obligations of the previous film of the same producer which has received State aid, unless such accreditation would have already been carried out in accordance with the provisions of the preceding letter.

4. The total amount of aid provided for in this Section shall be less than 50 per 100 of the cost of the films produced, with the exceptions resulting from the application of Articles 25 and 27.

Article 25. Aid for the production of feature films on the project.

1. Aid may be granted to independent producers for projects which have a special cinematographic, cultural or social value, whether documentary or experimental, or to incorporate new producers.

Aid may also be granted for television film projects and animation series, provided that the initiative of them belongs to independent producers.

2. For the granting of such aid, account shall be taken of the proposal of a collegiate body which, in the formulation of its reports, shall be considered to be:

a) The quality and artistic value of the project.

b) The budget and its adequacy for the implementation of the budget.

c) The financing plan to ensure its viability.

(d) The solvency of the production company and the fulfilment by it on previous occasions of the obligations arising from the production of aid.

It will also be assessed that the project will implement gender equality measures in the creative activities of direction and script. The projects of independent producers located in the Canary Islands shall also be assessed in a specific manner in their outermost region status.

3. The introduction of substantial changes to the approved projects must be notified to the granting body for authorisation, which may revoke the aid in the event that no such obligation is met.

4. The project aid shall be non-communicable and shall not exceed the investment of the producer or 60 per 100 of the budget of the project, with the ceiling of the amount to be established.

Article 26. Aid for the depreciation of feature films.

1. The promotion of the production of feature films may be supplemented by the granting of aid to producer companies for the depreciation of the cost of production of films, taking into account objective criteria of an automatic nature, such as: acceptance of the public in the period of screening in film exhibition halls and the collection obtained by them, as well as their reception by the spectators through other means of dissemination. Other criteria may be laid down for the granting of the aid provided for in this Article, which shall also be automatic.

2. Aid for amortisation shall take two forms, compatible with each other:

(a) General aid, which may be chosen by companies producing films released during the period of time to be determined by regulation. The amount of this aid, which may never exceed 50 per 100 of the cost of the film or 75 per 100 of the investment of the producer, with the ceiling laid down in the regulatory development, shall be established on the basis of a percentage of the gross box office collection that gets the film in movie theaters during that period.

(b) Supplementary aid, which may be chosen by the film-producing undertakings which, for the period of time to be determined by regulation, have not had any aid in respect of the projects provided for in the Article 25. In order to obtain this aid, the films must have exceeded the minimum collection which is determined. The amount of this aid shall be established on the basis of a percentage of the producer's investment, with the maximum limit of the amount to be fixed.

Additional support may provide for additional incentives for films made by independent producers with continuous production in the three years preceding the call and more flexible film requirements of a documentary character or using a language which, together with Spanish, is official in an Autonomous Community.

3. Non-independent production companies will be eligible for depreciation aid provided that all feature films produced are in co-production with independent production companies, with a maximum percentage of investment of 60 per 100 of the budget of each film.

4. The production companies that opt for such aid must have previously credited the cost of the concurrent films to the call, in accordance with the provisions of Article 13.

5. In order to establish the amount of the general aid for depreciation, account shall be taken of the budgetary availability for such aid, the volume of applications for each call and the total collection of the aid. films that compete with the same.

6. In order to establish the amount of the additional aid for depreciation, account shall be taken of the budgetary availability for such aid, the volume of applications for each call and the total investment of the producers of all the films that compete with it.

7. The cumulative amount of the general aid and the additional aid may not exceed 50 per 100 of the cost of the film or 75 per 100 of the investment of the producer, with the maximum limit of the amount to be determined as regulated.

A producer or a group of producers who have the majority of the same shareholders may not receive in the same call an amount greater than 15 per 100 of the total amount reserved for each financial year budget for the granting of such aid.

Article 27. Aid for the production of short films.

1. The promotion of production of short films shall be carried out for independent producers by granting aid on a project or by short films which are compatible with each other and which will be awarded on the basis of a report from the This shall be the case in which the proposal shall assess:

a) The characteristics and feasibility of the project.

b) The quality and artistic value of the script.

c) The project budget or, if any, the cost of the film.

d) The financing plan.

2. The maximum amount of project support shall not exceed 60 per 100 of the budget or the amount to be determined for each call. The short film aid will be limited to 75 per 100 of the producer's investment. The sum of these aids may not exceed the cost of the film subject to them.

Section 4. Distribution Aids

Article 28. Aid for the distribution of films.

1. Aid may be granted to independent distributors for the development of promotion and distribution plans in Spain for films of long and short film, Community and Ibero-American films, in order to stimulate their distribution, mainly in original version, in exhibition rooms, with special attention to the quality of the films, to the incorporation of new technologies of communication and to the facilities of access to films for people with disabilities.

2. The aim of the aid will be to subsidise up to 50 per 100 of the cost of copying, subtitling, advertising and promotion, the technical means and resources needed to bring the films closer to the public. disabilities, with the maximum limit of the amount to be regulated.

3. Plans for the distribution and promotion of long-film films should include a minimum of 15 provinces and 5 Autonomous Communities. In short film films, which must form a set to be distributed in one film session, the territorial scope will be a minimum of 4 provinces and 2 Autonomous Communities.

4. For the granting of such aid, consideration will be given to the proposal of a collegiate body which will study the applications submitted, assessing:

(a) The quality and cultural interest of the films distributed concurrent to the call.

b) The budget for the execution of the film distribution and promotion plan.

c) The territorial scope in which they are to be distributed.

d) The incorporation of new technologies in the distribution and measures that facilitate access to films for people with disabilities.

e) The history of the distribution company and its previous participation and experience in the distribution of quality films and outstanding artistic values.

5. In addition, in terms of regulations, aid may be granted to the distribution of films of long and short film, community and Latin American, in video or through the Internet, provided that incorporate an audio-description system for blind and visually impaired persons, as well as a special subtitling system that allows for the understanding of such films by deaf and hearing impaired persons.

Section 5.

Article 29. Aid for cinema exhibition halls.

1. In order to promote the access of viewers to the diversity of cultural production, it will be possible to establish, in collaboration with the Autonomous Communities and in the way that they are regulated, support measures for the independent exhibition which, in its annual programming, includes, in a proportion of more than 40 per 100, Community and Ibero-American feature films, with preference towards those offering them in their original version, as well as a minimum number of short films with the same characteristics.

Aid may also be provided to independent exhibition halls that programme Community and Ibero-American feature films in their original version for a continuous period of more than three weekends.

2. In order to facilitate and facilitate technological modernization in the exhibition sector, aid to independent exhibition halls which have an impact on the exhibition may be established in collaboration and cooperation with the Autonomous Communities. modernization, with special attention to the incorporation of digital projection systems.

3. In addition, with the aim of promoting the permanence and stability of cinema exhibition halls located in small urban or rural areas, and the maintenance of a stable and forthcoming cultural offer in this area, they will be able to establishing aid to independent exhibition rooms which have difficult access to copies of Community and Ibero-American films.

4. In addition, support may be provided for the purpose of adapting the exhibition halls to the accessibility conditions for persons with disabilities and technical equipment for the subtitling and the audio description.

5. The provisions of the preceding paragraphs shall apply without prejudice to the powers of the Autonomous Communities in these matters.

Section 6. Conservation Aid

Article 30. Aid for the conservation of film heritage.

Aid may be granted for the performance of inter-positive and inter-negative films for producers or film holders who undertake not to export, in the terms which are determined by regulation, the original negative of the same and deposit the corresponding support in the Spanish Filmoteca or Filmoteca of the competent Autonomous Community, in order to promote the conservation of the film heritage. Similarly, and in similar terms, aid for the conservation of masters in digital or other forms of support may be granted, in accordance with the technological developments that occur.

The maximum amount of aid may not exceed 50 per 100 of the cost of performing the interpositive and internegative and sound material necessary for the duplication of the film, or, where appropriate, of the digital support corresponding, with the maximum limit of the amount to be regulated.

Section 7. Promotion Aid

Article 31. Support for participation in festivals.

In order to contribute to the diffusion of the cultural and artistic values of Spanish cinema, it will be possible to establish aids to the companies producing the films selected by international festivals of recognition prestige.

In order to obtain these aids, a film must have been selected by some or some of the festivals to be determined in the annual call. In the light of the importance of the parties selected by a collegiate body, the amount of aid corresponding to the film or films involved shall be established, and shall be intended in a substantive manner to participation and promotion in the event, according to a plan previously established and presented.

Article 32. Support for the organisation of festivals and competitions.

1. Aid may be granted to the organisation and development of film festivals or festivals of recognised prestige to be held in Spain and to those who devote particular attention to the programming and dissemination of Community cinema, Ibero-American, animated films, documentaries and short films.

2. For the granting of such aid, which shall be proposed by a collegiate body, it shall be considered as:

a) The scope of the festival within the film and citizen world.

b) Your history and history over the years.

c) The international character of its programming, especially valuing the specific attention it devotes to the community and Ibero-American cinematography in its different modalities.

d) The financial strength of the festival to cater for such programming.

e) The incidence of the festival in the national and international audiovisual industry.

f) Your coverage by the media.

3. The aid for the performance of festivals and competitions may not exceed 50 per 100 of the budget submitted for completion, with the maximum limit of the amount to be determined by regulation.

Section 8. Other aids and incentives

Article 33. Film and audiovisual funding.

In order to create a financial framework favourable to the film and audiovisual industry, collaboration agreements with banks and credit institutions will be possible to facilitate and extend the financing of the activities of producers, distributors, exhibitors and the technical and video sector industries, as well as for the development of the infrastructure or technological innovation of these sectors. The system of bank guarantees may also be extended in order to make it easier for the industry to obtain such funding.

Article 34. New technologies.

1. Incentives for the performance of audiovisual works shall be established which, using new technologies and innovations which are produced in this field, are intended to be disseminated in different media to the exhibition, television or video rooms. domestic.

2. For the granting of such aid, which will be proposed by a collegiate body, consideration will be given to:

a) The originality and quality of the dash.

b) The use of new technologies for the creation of audiovisual works.

c) The project budget and its financing plan.

d) Your broadcast plan on media other than display rooms, television, or home video.

e) The capacity of the project for the audiovisual work to access new audiences.

3. The maximum amount of aid may not exceed 50 per 100 of the project budget, nor the amount to be determined by regulation.

Article 35. Research, Development and Innovation.

1. Aid may be granted to cinematographic and audiovisual companies for the implementation of R & D + i activities within the framework of the National Plan for Scientific Research, Technological Development and Innovation, in the field of production, distribution, display and technical industries, with special consideration for projects dedicated to animation image mode.

2. In order to obtain such aid, the maximum amount of which may not exceed 50 per 100 of the budget, the submission of a scientific research, development and technological innovation plan by the applicant companies will be necessary, it shall reach a temporary level of up to three years, specifying the objectives to be achieved, where appropriate, within each of those annuities and their subsequent development in the following.

3. This plan will be assessed by a collegiate body, which will verify its compliance with the guidelines established for activities that are likely to be considered as R & D + i, and which will also take into consideration:

(a) The potential impact of the results that can be obtained from the qualitative and quantitative point of view.

b) The feasibility of incorporating the project into the framework of the sector to which the project belongs.

c) The budget and its adequacy for the purposes pursued.

4. The Institute of Cinematography and the Audiovisual Arts may adopt the additional measures of promotion that are relevant to ensure and facilitate the technological update in the audiovisual sector.

Article 36. Promotion of cinematography and audiovisual in co-official languages other than Spanish.

Without prejudice to the provisions of Article 19.3, and in order to assist in the promotion and protection of the use of the co-official languages other than the Castilian in cinematography and the audiovisual, promoting cultural plurality of Spain and equal opportunities for the languages of each territory in the field of audiovisual expression and dissemination, a fund of aid or specific appropriations shall be established which shall be transferred in their entirety to the bodies the competent authorities of the Autonomous Communities, who shall manage them in accordance with their powers.

This contribution from the State, based on the principle of co-responsibility, will be provided annually in the General Budget of the State and will be devoted to the promotion of the production, distribution, exhibition and promotion of the industry. cinematographic and audiovisual in these languages.

Article 37. External promotion.

The Institute of Cinematography and the Audiovisual Arts, in its work of cultural promotion abroad, will facilitate the presence of Spanish cinema in the world and organize samples or cycles that they will make known more widely Spanish cinema in strategic places, in collaboration and cooperation with the Autonomous Communities.

The Institute will also be able to collaborate with public or private entities that promote Spanish cinema outside our borders, looking for a better and more marketing of Spanish films abroad.

CHAPTER IV

Sanctioning Regime

Article 38. Competencies.

The regime of infringements and penalties will be in accordance with the provisions of Law 30/1992 of 26 November, of the Legal Regime of Public Administrations and of the Common Administrative Procedure, and of the procedure for the exercise of sanctioning power, approved by Royal Decree 1398/1993 of 4 August. The procedure shall be initiated by the Director of the Institute of Cinematography and the Audiovisual Arts and the instruction to the General Secretariat of the same body, without prejudice to the powers of the Autonomous Communities.

In the field of the powers of the General Administration of the State, the President of the Institute shall be responsible for the resolution of the sanctioning procedures for very serious infringements, and the Director for the resolution of the procedures for serious and minor infringements.

Article 39. Violations.

The violations of the provisions of this Law are classified in very serious infractions, serious infractions and minor infractions.

1. These are very serious violations:

(a) Non-compliance with the screen share in a percentage higher than 60 per 100, referred to the number of exhibition sessions of Community films to be projected in each room, in accordance with the provisions of the Article 18.

(b) Non-compliance with the provisions of Articles 9.2, 9.3 and 17 relating to "X" films and rooms.

c) The conduct typified as very serious by Law 38/2003, of November 17, General of Grants.

d) The untruth or manipulation of the performance data of the cinematographic works reflected in the display declaration reports referred to in Article 16.2.

2. These are serious violations:

(a) Non-compliance with the screen share in percentage equal to or less than 60 per 100 and above 30 per 100, referred to the number of exhibition sessions of Community films to be projected in each room, in application of the provisions of Article 18.

b) The conduct typified as serious by Law 38/2003, of November 17, General of Grants.

(c) To market or disseminate cinematographic or audiovisual films without having been rated by age groups, as set out in Article 8.1.

(d) Non-compliance, by way of action or omission, of the obligations for the use of regulatory banknotes and the issuance of display declaration reports referred to in Article 16.2 when they prevent performance control of the cinematographic works displayed and the unjustified delays in the referral of those reports in excess of one month over the prescribed time-limits.

3. They are minor infractions:

(a) Non-compliance with the screen share as a percentage equal to or less than 30 per 100, referred to the number of exhibition sessions of Community films to be projected in each room, in accordance with the provisions of the Article 18.

b) The behaviors typified as mild in Law 38/2003, of November 17, General of Grants.

(c) Non-compliances, by action or omission, as provided for in Article 9.1 concerning the advertising of the rating of films and audiovisual works.

(d) Failure to comply with the registration and notification obligations relating to the Administrative Registry of Film and Audiovisual Enterprises referred to in Article 7.

e) Non-compliances, by action or omission, of the performance control obligations of the cinematographic works displayed when they are not serious or very serious.

Article 40. Penalties.

1. Infringements shall be punished:

a) Mild, with warning or fine of up to 4,000 euros.

b) The serious ones, with a fine of up to 40,000 euros.

c) The very serious, with a fine of up to 75,000 euros.

2. The violations established in Law 38/2003 of 17 November, General of Grants will be sanctioned according to the provisions of the same.

3. If the infringements are qualified, the penalties shall be graduated to the mere negligence or intentionality of the infringer, to the recidivism in previously sanctioned infringements, to the percentage of the infringement in the case of the offences provided for in Article 39 (1) (a), (2) (a) and (3) (a) and, where applicable, the collection of the living room and the number of inhabitants of the population.

Additional disposition first. State Agency for Cinematography and Audiovisual Arts.

The government, according to the provision of the additional provision fifth of Law 28/2006, of State Agencies for the improvement of the public services, will proceed to transform the current autonomous agency Institute of the Cinematography and Audiovisual Arts in the State Agency for Cinematography and Audiovisual Arts, whose main purposes will be the promotion, promotion, management and support of cinematographic and audiovisual activities, conservation of film heritage, the exterior projection of cinematography and the arts audiovisual and cooperation with the Autonomous Communities in terms of cinematographic and audiovisual matters, without prejudice to the powers conferred on them.

The functions and the organic structure of the Agency shall be determined by the Statute for which the Agency is governed, in accordance with the provisions of this Law and the regulatory regulations of the State Agencies, in which the participation, in its Governing Council, of the Autonomous Communities, as well as of professional sectors related to the Agency's purposes and activities, may be established.

Once the effective constitution of the State Film Agency and the Audiovisual Arts is produced, the references contained in this Law to the Institute of Cinematography and the Arts Audiovisual means shall be understood as the State Agency for Cinematography and Audiovisual Arts.

Additional provision second. Collegiate bodies.

1. With regard to the qualification of cinematographic and audiovisual works and aid, the Institute of Cinematography and the Audiovisual Arts will have the participation of collegiate bodies, to which the established legal system will apply. In Law 30/1992, of 26 November, of the Legal Regime of Public Administrations and of the Common Administrative Procedure, and in whose composition the participation, if any, of the different related professional sectors will be sought with the subject matter of which the relevant collegiate body is familiar. In addition, parity between men and women will be sought, in accordance with the Plan for Gender Equality in the General Administration of the State.

2. The Institute of Cinematography and the Audiovisual Arts will be able to obtain the opinion of the spectators in order to know their approaches to the situation and development of the Spanish audiovisual industry.

Additional provision third. Access to cinema for people with disabilities.

1. Public administrations, in the field of their respective competences, shall promote the accessibility of the cinema of persons with physical or sensory disabilities, ensuring regular, standardised and non-discriminatory use of the means audiovisual.

2. Aid for video distribution and the Internet will have as a requirement for access to the incorporation of audio-description systems for blind and visually impaired persons, as well as a special sub-title system that allows for the understanding of such films by deaf and hearing impaired persons. The granting of distribution aid in exhibition halls will specifically assess the incorporation of systems that facilitate access to films for people with disabilities. The Collegiate Body for the assessment of both aid may seek the advice of an independent expert in respect of the accessibility conditions to be submitted.

3. The Institute of Cinematography and the Audiovisual Arts will collaborate with the National Disability Council in those initiatives that address proposals for action and improvement regarding the situation and progress of the accessibility of cinema to persons with disabilities.

4. The Spanish Centre for the Subtitling and Audiovisual (CESYA) of the Royal Board on Disability is the state technical centre of reference in the field of audiovisual accessibility for people with disabilities, as regards the production, distribution and exhibition of cinematographic and audiovisual works.

5. The companies holding exhibition halls of cinematographic and audiovisual works which have a page or website will inform through this means of the conditions of accessibility of both the rooms and the audiovisual works. to display, so that potential disabled users can know that information in good time.

Also, it will be promoted that the exhibition rooms have spaces reserved for people who use a wheelchair or have some kind of physical disability that prevents them from accommodating in the seats of the rooms.

Additional provision fourth. Consultations on tax incentives.

The period of reply to the consultations made to the tax administration during the six months following the entry into force of this Law, on the application of the subsidy for export activities and the deduction for cinematographic and audiovisual productions covered by Articles 34.1 and 38.2 of the recast of the Companies Tax Act, adopted by Royal Decree-Law 4/2004 of 5 March 2004, in the event of the creation of the Film or audiovisual is carried out by a grouping of economic interest, will be reduced to half.

Additional provision fifth. Monitoring.

During the last half of 2011, the Ministry of Economy and Finance, assisted by the Ministry of Culture, will present to the government a study on the effectiveness of the various aids and incentives for production. Cinematographic and audiovisual in force during the years 2007 to 2011, and, where appropriate, will match the same to the needs of the Spanish economy, respecting the Community rules.

Additional provision sixth. Conventions for the promotion of cinematography and audiovisual in co-official languages other than Spanish.

The Ministry of Culture, by agreement, will concretize the appropriations provided for in Article 36 of this Law, so that the amount received by each Autonomous Community with a co-official language is equivalent to the sum of contributions to the support and promotion of the production, distribution, exhibition and promotion of audiovisual in a co-official language other than Spanish in the previous financial year.

The allocation received by each Autonomous Community shall not exceed 50 per 100 of the total of the aid which the audiovisual undertakings resident in that Community have received from the Institute of Cinematography and the Arts Audiovisual in the previous year.

Additional provision seventh. Access of film and audiovisual products to the education system.

The public administrations, within their respective competences, will promote the accessibility of film and audiovisual products to the education system through training programmes, so that their contents can also be integrated into that.

Additional disposition octave. Working conditions and quality of employment.

With the aim of improving the quality of the employment of workers in the cinema sector and thereby improving their working conditions, systems or systems may be established by sector collective agreements procedures for the representation of workers through trade union or bipartite representatives between employers ' and trade unions, aimed at promoting compliance with labour and social legislation in the sector of the cinema.

Additional provision ninth. Study on trade union implementation.

The government, within the maximum period of one year since the adoption of this Law, will prepare a study on the implementation of trade union organizations in the film and audiovisual sector.

In the light of the results of the previous study, legal initiatives, or other initiatives, aimed at improving the quality of the employment of workers in these sectors, and thereby improving the quality of life, can be promoted. their working conditions, through the mechanisms of employee involvement that are considered relevant.

Additional provision 10th. Promotion of the premiere and exhibition of European cinema.

The General Administration of the State may establish agreements with RTVE or other television operators with the aim of developing specific programmes to promote the premiere and display of European cinema and, especially, the one made in one of the official Spanish languages.

Additional provision eleventh. Promotion of agreements with the Spanish animation industry.

In order to promote the Spanish animation industry, the Institute of Cinematography and the Audiovisual Arts will promote the subscription, updating and renewal of agreements between RTVE and the sector that promote the performance of animation products: feature films, short films and series.

Additional disposition twelfth. Film exhibition and access to the diversity of production.

The government will recognize the contribution of the exhibition sector to citizens ' access to the diversity of film production through the fulfilment of the screen share for films originating in the States. (a) Member States of the European Union, by means of the regulatory development of the aid provided for in Article 29 of this Law, with a special impact on those intended for the technological modernisation of the rooms and the support for the small urban or rural areas, as well as the adaptation of the rooms to the conditions of accessibility for people with disabilities.

Single transient arrangement. Temporary validity of certain rules.

As long as there is no corresponding regulatory development and in all that does not oppose the provisions of this Law, the following rules will remain in force:

(a) Chapters III and IV of Royal Decree 81/1997 of 24 January, for which Law 17/1994, of 8 June 1994, of the Protection and Promotion of Cinematography is partially developed, and the rules concerning the the production of films in co-production, cinema exhibition halls and the qualification of film films, except for the rating of "X" films.

b) Royal Decree 526/2002 of 14 June, which regulates measures to promote and produce cinematography and the production of films in coproduction.

(c) Royal Decree 1652/2004 of 9 July approving the Regulation governing the compulsory investment for the advance financing of film and film films and films for television, European and

(d) Order of 7 July 1997 for the application of the rules of application of Royal Decree 81/1997 of 24 January 1997 in the fields of screen and distribution of films, exhibition halls, registration of undertakings and qualification of cinematographic and audiovisual works, in those aspects not expressly repealed by this Law.

(e) Order of 14 December 2006, order of 14 December 2006, to give effect to the rules of application of Royal Decree 526/2002 of 14 June on measures for the promotion and promotion of cinematography and the production of Co-production films, and the regulatory basis for such measures is established.

Single repeal provision. Regulatory repeal.

The provisions of this Law and in particular the following provisions shall be repealed as many provisions:

(a) Law 15/2001 of 9 July promoting and promoting cinematography and the audiovisual sector, with the exception of its second provision.

b) Articles 4 and 8 of Law 3/1980, of 10 January, of regulation of screen quotas and film distribution.

(c) Articles 1, 2 and 6 of Law 1/1982, of 24 February, governing the special rooms for cinematographic display, the Spanish Filmoteca and the fees for dubbing fees.

(d) Royal Decree 81/1997 of 24 January, for which Law 17/1994 of 8 June 1994, of the Protection and Promotion of Cinematography, is partially developed, and rules concerning the making of films are updated and recast co-production, cinema exhibition halls and film film ratings, except for Chapters III and IV.

(e) Chapter I, Chapter III, paragraph 10, and the fourth, fifth, sixth and seventh final provisions of the Order of 7 July 1997 laying down rules for the application of Royal Decree 81/1997 of 24 January 1997, Screen and distribution of films, exhibition halls, business registers and the qualification of cinematographic and audiovisual works.

Final disposition first. Amendment of Law 28/1998 of 13 July on the sale of movable property in instalments.

A fourth additional provision is added in Law 28/1998, of July 13, for the sale of movable property, which will have the following wording:

" Additional provision fourth. Section of audiovisual works and recordings.

An additional section is created in the Register of Furniture for the purposes of the registration, with effectiveness against third parties, of the audiovisual works and recordings, their rights of exploitation and, where appropriate, of the annotations of demand, liens, charges, limitations of disposal, mortgages, and other actual duties imposed on them, in the form that is determined to be regulated. "

Final disposition second. Amendment of the Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and of the partial modification of the Laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage, and the recast text of the Companies Tax Law, approved by the Royal Legislative Decree 4/2004 of 5 March 2004.

1. With effect for the tax periods starting from 1 January 2007, new wording is given to paragraphs 3 and 4 of the second repeal provision of Law 35/2006 of 28 November of the Income Tax on Persons Physical and partial modification of the Laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage, that will be written as follows:

" 3. With effect for the tax periods starting from 1 January 2012, Article 35 and Article 38 (2) of the recast text of the Companies Tax Act, approved by the Royal Legislative Decree, are repealed. 4/2004, of 5 March.

4. For the purposes of the tax periods starting from 1 January 2014, Article 34 (1) and Article 38 (1), (3) and (7) of the recast text of the Company Tax Act, adopted by Real, are hereby repealed. Legislative Decree 4/2004 of 5 March 2004. '

2. With effect for the tax periods starting from 1 January 2007, new wording is given to paragraph 4 and a paragraph 5 is added to the additional tenth provision of the recast text of the Companies Tax Act, adopted by Royal Decree-Law 4/2004 of 5 March 2004, which will be worded as follows:

" 4. The deductions provided for in Article 38 (1) and (3) of this Law shall be determined by multiplying the deduction rates set out in those paragraphs by the coefficients laid down in the additional provision of this Act. The percentage of deduction that will result will be rounded to the top unit.

5. The percentage of deduction laid down in Article 38 (2) of this Law shall be 18%. This percentage shall be 5% for the financial co-producer. "

3. With effect for the tax periods starting from 1 January 2007, paragraphs 2 and 3 of the transitional provision twenty-first of the recast text of the Companies Tax Act, adopted by the Commission, are amended as follows: Royal Decree-Law 4/2004 of 5 March, which will be worded as follows:

" 2. The deductions provided for in Article 35 and Article 38 (2) of this Law, pending application at the beginning of the first tax period starting from 1 January 2012, may be applied within the period and with the requirements set out in Chapter IV of Title VI of this Law, as applicable at 31 December 2011. Those requirements are equally applicable to the consolidation of deductions in tax periods initiated before that date.

3. The deductions provided for in Article 38 (1) and (3) of this Law, pending application at the beginning of the first tax period starting from 1 January 2014, may be applied within the time limit and with the requirements laid down in Article 38 (3). established in Chapter IV of Title VI of this Law, in accordance with the wording of 31 December 2013. Those requirements are equally applicable to the consolidation of deductions in tax periods initiated before that date. '

Final disposition third. Competitive titles.

The Law is dictated by the provisions of Article 149.2 of the Constitution, which provides that, without prejudice to the powers that the Autonomous Communities may assume, the State shall consider the service of culture as essential duty and attribution, with the exception of the following Articles:

1. Articles 8 and 9 are issued under the terms of Article 149.1.1. of the Constitution, which reserves the State the regulation of the basic conditions that guarantee the equality of all Spaniards in the exercise of rights and in the fulfilment of constitutional duties.

2. Articles 7; 10 to 18; 22 and 23; 24 to 27; 28; 31, 32, 33, 34 and 38 to 40, as well as the additional eleventh provision are issued under Article 149.1.13. of the Constitution, which reserves the State the competence on the basis and coordination of the general planning of economic activity.

3. Article 35 is issued in accordance with the provisions of Article 149.1.15. on the promotion and general coordination of scientific and technical research.

4. The seventh additional provision is made under Article 149.1.30. of the Constitution concerning the basic rules for the development of Article 27 of the Constitution.

5. The eighth and ninth additional provisions are issued under Article 149.1.7. of the Constitution, which reserves the State the labour law, without prejudice to its execution by the organs of the Autonomous Communities.

6. The first provision is made under Article 149.1.6. of the Constitution, which reserves the State the commercial law.

7. Article 21 and the second and fourth final provisions are given in accordance with Article 149.1.14, which reserves the State's competence over the General Finance and Debt of the State.

Final disposition fourth. Regulatory development and enablement.

1. The Government is authorised to issue any provisions necessary for the implementation and development of this Law in the field of its powers.

2. Where technical or opportunity reasons so advise, the Government, or the Autonomous Communities, may amend the percentages laid down in Article 18 for the purposes of compliance with the screen quota and in Article 24 for the amounts of aid to production.

Final disposition fifth. Entry into force.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State" except as provided for in Article 36, which shall enter into force on 1 January 2009.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this law.

Madrid, December 28, 2007.

JOHN CARLOS R.

The President of the Government,

JOSE LUIS RODRIGUEZ ZAPATERO