Film Industry Law of Honduras

By virtue of its character associated with the cultural heritage of the Republic of Honduras and the formation of collective identity, cinematographic and audiovisual activity is of social interest; therefore, the purpose of this Law is the development of the Cinematographic Industry, including all its sectors and activities, to summon the conditions for participation, competitiveness, and protection of national cinematography, without prejudice to what is established in the Copyright Law and Related Rights and the International Treaties and Conventions signed and ratified by Honduras.

For the purposes of this Law, the following terms are understood to mean:

• 1)

  Cinematographic Activity: The conjunction of the concepts of the Cinematographic Industry and National Cinematography.

• 2)

  Participating Agents: Those who are legally registered in the General Directorate of Cinematography (DGC) and who participate in the process of film production.

• 3)

  Sole Notice of Filming: The document that shall be presented before the General Directorate of Cinematography (DGC) announcing the start of a filming in the places of the Republic of Honduras where the filming will take place, with which the production company shall manage the corresponding municipal and local permits to proceed with the filming.

• 4)

  Certification of National Cinematographic Work: Certification granted by the General Directorate of Cinematography (DGC) to the film that, whether made as a sole production or as a coproduction even with foreign participation, is considered a Honduran film, when it incorporates at minimum the following requirements: a) That it counts on the participation of Honduran labor (production team) of at least sixty-five percent (65%) and/or that the director or producer or production company be Honduran, exempt from this consideration the artistic talent of actors and actresses; and, b) That at least thirty percent (30%) of the capital invested by natural or legal person be derived from national funds. For purposes of this Law, the following terms are considered analogous: "Honduran Film," "National Film," or "Honduran Audiovisual Work." 5) Producer: The natural person in charge of the realization of a film and who has responsibility for all actors, technicians, director, and workers in the cinematography field and shall be subject to what is established in Article 9, numeral 13) of the Copyright Law and Related Rights. 6) Production Company: The legally constituted legal person that has all the necessary means for the production, filming of movies and any other need, including distribution in projection halls. 7) National Council of the Cinematographic Industry (CNIC): The governing Administrative Body of the General Directorate of Cinematography. 8) Cinematographic Coproduction: A cinematographic work that is carried out by two (2) or more producers that may be developed by natural or legal persons in Honduras or between natural or legal persons of other countries. 9) General Directorate of Cinematography (DGC): The administrative body in charge of formulating plans, strategies, issuing certifications, institutional development programs, and any other function granted by this Law. 10) Distributor: A natural or legal person dedicated to the commercialization of exhibition rights of cinematographic works in any medium or format, without prejudice to Articles 22 and 25 of the Copyright Law and Related Rights. 11) Exhibitor: A natural or legal person who has charge of the operation of a cinema hall, as owner, lessee, concessionaire, or under any other form that confers the right. 12) Fund for Cinematographic Development (FONDECI): The financial body in charge of administering the resources received by the General Directorate of Cinematography (DGC) to support the National Cinematographic Industry. 13) Cinematographic Industry: A cultural industry that interrelates moments and activities of production of goods and services in the audiovisual field of cinema, especially those of creation, realization, production, distribution, exhibition of goods and services that are interrelated there, independent of their nationality. 14) Audiovisual Work: That which consists of a sequence of associated images, with or without sound, intended for exhibition by means of devices suitable for public communication of image and sound. 15) Cinematographic Work: Any work proper to cinematographic language referred to real or imaginary facts, resulting from the fixation in images with or without sound of forms susceptible to being perceived by human sight, such that when these are reproduced generates an impression of movement. All this regardless of the physical medium used, the technology that allows the fixation of images or sounds, and the means used for its reproduction or dissemination. The following are considered as such: works for cinema, video, DVD, on compact disc, or on any other physical medium, by digital procedures, analogous or any other that may be invented in the future with the same purpose. The following are considered cinematographic works: Feature films, short films, medium-length films, documentaries, series, and fiction miniseries. 16) Honduran Cinematographic Feature Film Work: It is the work realized as a sole production or a coproduction even with foreign participation, that incorporates at minimum the following requirements:

  • a)

    That the language be Spanish or another language or dialect spoken in Honduran territory;

  • b)

    That in case it has a language different from Spanish, at least sixty percent (60%) of the filming shall have been realized in Honduran territory;

  • c)

    Minimum duration of eighty (80) minutes; and, d) That it counts with the requirements for Certification of National Cinematographic Work. 17) Honduran Cinematographic Short Film Work: That which, being made as a sole production or a coproduction even with foreign participation, incorporates at minimum the following requirements: a) That the language be Spanish or another language or dialect spoken in Honduran territory; b) Maximum duration of thirty-five (35) minutes; and, c) That it counts with the requirements for Certification of National Cinematographic Work. 18) Honduran Cinematographic Medium-Length Film Work: That which, meeting equal conditions of artistic, technical, and economic participation as those provided for in the case of the Feature Film and the Short Film, has a duration intermediate between one and the other. 19) Honduran Cinematographic Fiction Series Work: That which, being made as a sole production or a coproduction even with foreign participation, incorporates at minimum the following requirements:

    • a)

      That the language be Spanish or another language or dialect spoken in Honduran territory;

    • b)

      That in case it has a language different from Spanish, at least sixty percent (60%) of the filming shall have been realized in Honduran territory;

    • c)

      Minimum duration of forty-five (45) minutes per episode of the fiction series; and a minimum of four (4) episodes per series; and, d) That it counts with the requirements for Certification of National Cinematographic Work. 20) Registry of Cinematographic or Audiovisual Works: The registration of a cinematographic or audiovisual work is the responsibility of the Administrative Office of Copyright and Related Rights of the General Directorate of Intellectual Property, dependent on the Institute of Property (IP); the classification and validation of the work shall be the responsibility of the Censorship Commission dependent on the Secretary of State in the Offices of Governance, Justice, and Decentralization. 21) Cinema Hall: A public venue, equipped with a projection screen that, through the payment of a price or any other negotiation modality, confers the right of admission to the projection of films in any medium. This concept is analogous to "Screen" or "Exhibition Hall." CHAPTER II GENERAL PURPOSES

The State shall promote all measures within its reach for the achievement of the national purposes set forth in Article 1 of this Law regarding cinematographic activity in Honduras, these being the following:

• 1)

  To promote sustained and dynamic growth of cinematographic activity and industry in the country;

• 2)

  To make possible the concrete means of productive return among the sectors that make up the Cinematographic and Audiovisual Industry toward their common activity, stimulate national and foreign investment in the productive field of goods and services included in this cultural industry, and facilitate cinematographic management;

• 3)

  To contribute by all means within its reach to the industrial and artistic development of national cinematography, to the cultural protection of the Nation, and to cultural diversity through national cinematography, as well as to the conservation, preservation, and dissemination of this as a means of generating own collective imagination and memory, and as a means of expression of National Identity in the national territory and in the international community;

• 4)

  To promote the national territory and the cinematographic services installed or to be installed, in order to attract the filming and production of national and foreign cinematographic works and, in general, the production of audiovisual works in the country; and,

• 5)

  To develop means of training for audiovisual creation, as well as for reading and understanding of audiovisual content and concepts, with the objective of promoting critical and creative perspectives regarding this type of cultural content and its relationships with social life.

To achieve the purposes and objectives set forth in the preceding Article, the State must develop through this Law and through pertinent regulations and policies the following instruments and measures that lead to:

• 1)

  The formation, articulation, and restructuring of Public Administration entities related to cinematographic activity and the establishment of the bodies or institutions that may be necessary for the purposes of consolidating such activity, especially the General Directorate of Cinematography (DGC);

• 2)

  The establishment of a Tax Incentive Regime for Cinematographic Activity in the Republic of Honduras for national and foreign investment therein, according to the parameters established in the Tax Code;

• 3)

  To allocate the funds resulting from tax incentives to the Fund for Cinematographic Development (FONDECI), whose resources shall be used for the fulfillment and self-sufficient operation of cinematographic activities directed by the General Directorate of Cinematography (DGC);

• 4)

  The facilitation of procedures in the different customs offices of the country, with the customs service obligated to provide all necessary collaboration in order to achieve prompt and effective customs clearance and establishment of a special tariff regime for the processes of production of national or foreign cinematographic films within the national territory. This includes the facilitation and encouragement of the importation of raw materials, capital, and equipment;

• 5)

  Contracting of services related to cinematographic activity and installation in the country of companies and technical services proper to cinematographic activity; and,

• 6)

  Promotion of educational and training plans in cinematography in accordance with the purposes of this Law. CHAPTER III NATIONAL COUNCIL OF THE CINEMATOGRAPHIC INDUSTRY (CNIC)

The National Council of the Cinematographic Industry (CNIC) is hereby created, which shall function as the Superior Body of the General Directorate of Cinematography (DGC), having in its charge the administration and formulation of policies and shall be composed in the following manner:

• 1)

  One (1) representative of the Executive Branch: a) Head of the Communication and Strategy Directorate;

• 2)

  The Head of the General Directorate of Cinematography (DGC).

• 3)

  Three (3) representatives of the private sector: a) Two (2) representative owners of the Private Sector linked to cinema halls and distributors appointed by the Honduran Council of Private Enterprise (COHEP); and, b) One representative of the National Chamber of Tourism of Honduras (CANATURH).

• 4)

  Two (2) representatives of the Associations of the cinematographic industry in Honduras with extensive experience in the production, direction, and distribution of films. a) One representative of the Association called CINEMATOGRAPHIC INDUSTRY OF HONDURAS (ICH); b) One representative of the Association called Honduran Association of Filmmakers Magic Lantern; and, The owner representatives shall designate and accredit their respective alternates before the Council, who shall substitute for them in case of temporary absence.

The conditions for the operation of the National Council of the Cinematographic Industry (CNIC) and its members are the following:

• 1)

  The members of the National Council of the Cinematographic Industry (CNIC) at their first meeting shall elect their board of directors and other positions;

• 2)

  The members of the National Council of the Cinematographic Industry (CNIC) shall exercise their functions Ad Honorem;

• 3)

  The members of the National Council of the Cinematographic Industry (CNIC) shall exercise their functions for a period of four (4) years and may be reelected for only one (1) additional period;

• 4)

  Convocations to sessions shall be made at least ten (10) days before the date of the meeting by means of physical or electronic communication;

• 5)

  For quorum to be constituted, the presence of all members of the National Council of the Cinematographic Industry (CNIC) is necessary; if quorum is not met, a new convocation shall be made on the same occasion for the meeting to be held within the following three (3) hours with the members present, and for the validity of its Resolutions, the favorable vote of more than half of the attending members shall be required;

• 6)

  In the votes of the National Council of the Cinematographic Industry (CNIC), if there is a tie, the President of the National Council of the Cinematographic Industry (CNIC) shall have a tiebreaking vote; and,

• 7)

  The Secretary of the National Council of the Cinematographic Industry (CNIC) shall keep Minutes of the sessions, which must be signed by the attending members.

The National Council of the Cinematographic Industry (CNIC) has the following functions: 1) To approve the Annual Operating Plan, as well as any of its modifications; 2) To establish within the last two (2) months of each year, through an act of general character the activities, percentages, amounts, limits, modifications, expense lines for each year, within the parameters established in this Law and other requirements and conditions necessary to grant incentives with resources from the Fund for Cinematographic Development (FONDECI) in the following year; 3) To approve the programs and projects that are presented before the General Directorate of Cinematography (DGC) by natural or legally constituted legal persons that request it; 4) To grant financial support for the production and realization of cinematographic works through the Fund for Cinematographic Development (FONDECI), in accordance with the requirements and limitations of this Law and its Regulations; 5) To request from public and private entities the information and collaboration that may be necessary for the exercise of its powers; 6) To prepare and approve the Regulations necessary for the organization and implementation of the Fund for Cinematographic Development (FONDECI) and of the General Directorate of Cinematography (DGC); 7) To hold ordinary sessions every four (4) months and extraordinary sessions when necessary; 8) To issue Resolutions for the fulfillment of its powers and duties; 9) To exercise the administration of the Fund for Cinematographic Development (FONDECI), through the General Directorate of Cinematography (DGC); and, 10) Those others assigned to it in this Law and its respective Regulations. The competencies of the General Directorate of Cinematography (DGC) as branches throughout the national territory, whose competencies are the following:

• 1)

  To outline the policies and adopt decisions for the cultural, artistic, industrial, and commercial development of national cinematography, as well as for its conservation, preservation, and dissemination;

• 2)

  To promote and ensure conditions of participation and competitiveness for Honduran cinematographic work;

• 3)

  To certify works of national cinematography to be eligible for the use of tax incentives with which national and foreign production companies that produce within the national territory shall be benefited in accordance with what is provided in this Law;

• 4)

  To ensure compliance with constitutional, legal, and regulatory provisions related to cinematographic activity in the country, as well as the adequate operation and provision of cinematographic services;

• 5)

  To prepare a National Plan for Cinematographic Development specifying objectives, priorities, and policies. In this regard, for the formulation of plans and programs proper to the sector, the Directorate in coordination with the private sector and associations shall prepare the National Plan for Cinematographic Development to be included in the Plan of the Nation with the objective of promoting the National Identity of Hondurans through audiovisual productions. The plans and programs that are prepared must be fundamentally based on the proper use of natural and cultural resources, respect for human dignity, and respect for the communities receiving cinematographic filmings;

• 6)

  To determine the sanctions and fines as appropriate for operators of cinematographic activity; as well as to impose them in accordance with the parameters defined in its Regulations;

• 7)

  To execute Agreements of collaboration with national and international entities, public and/or private, necessary for the promotion of cinematographic and audiovisual activities, as well as for the training of professionals, representation of the country in organisms and international entities;

• 8)

  To appoint commissions and committees in representation of the country and the field, before institutions and international and national organizations with the approval of the National Council of the Cinematographic Industry (CNIC);

• 9)

  To develop the market of national and audiovisual cinematographic works and promote coproductions with other countries, encouraging the creation of new audiences and strengthening the conditions for expansion and independence of the national film industry;

• 10)

  To promote and bring to the attention of the competent bodies to act against illicit activities that violate Intellectual Property rights and especially in the prevention of such, such as piracy. It shall also collaborate with any body or entity in those activities aimed at the protection and defense of Intellectual Property;

• 11)

  To collaborate jointly with the Censorship Committee, a dependence of the Secretary of State in the Offices of Governance, Justice, and Decentralization, to ensure respect for and protection of the audience through the classification of productions;

• 12)

  To have participation in all activities within the scope of its competence; and,

• 13)

  To issue Certificates of National Cinematographic Work as established by this Law.

The General Directorate of Cinematography (DGC) is hereby created as a sector entity of cinematographic activities in Honduras, as a Deconcentrated Body of the Presidency of the Republic, with legal personality and its own patrimony, functioning with technical, administrative, and financial independence, its organization, operation, and powers are regulated in this Law and its Regulations. It has its domicile in the City of Tegucigalpa, Municipality of the Central District, with authority throughout the national territory, and may establish branches throughout the national territory; whose competencies are the following:

The General Directorate of Cinematography (DGC) shall be headed by a Director, whose appointment corresponds directly to the President of the Republic, following the selection of three (3) candidates who shall be nominated by the National Council of the Cinematographic Industry (CNIC), taking into account the following requirements:

• 1)

  To be Honduran by birth;

• 2)

  To be thirty-five (35) years of age or older;

• 3)

  To be in full enjoyment and exercise of civil rights;

• 4)

  To be a professional with extensive and demonstrated experience, minimum of ten (10) years, in the areas of cinematographic and audiovisual production; and,

• 5)

  To be of recognized honorability. The position of Director shall be exercised as a paid position for four (4) years from appointment. Being able to be reelected for only one (1) additional period. The National Council of the Cinematographic Industry (CNIC), in an extraordinary meeting with the favorable vote of a qualified majority, may submit to the President of the Republic a request for removal from office, which the President shall have final decision authority over.

It corresponds to the Director General of Cinematography (DGC) the following:

• 1)

  To exercise legal representation of the Directorate;

• 2)

  To direct the operation of the Directorate and execute the decisions of the National Council of the Cinematographic Industry (CNIC);

• 3)

  To appoint and remove personnel and execute the respective professional or technical service contracts of the Directorate;

• 4)

  To supervise the proper use of the funds of the Fund for Cinematographic Development (FONDECI);

• 5)

  To issue and sign the Agreements and Resolutions that must be adopted in execution of its Law and Regulation with the approval of the National Council of the Cinematographic Industry (CNIC);

• 6)

  To prepare and propose to the National Council of the Cinematographic Industry (CNIC) the projects of the Operating Plan, Budget Project, and Internal Regulations for approval;

• 7)

  To execute the national plans and programs for cinematographic development that the National Council of the Cinematographic Industry (CNIC) shall have approved, coordinating them with the corresponding bodies;

• 8)

  To have in its charge the supervision and ensure the fulfillment of the provision of cinematographic production. As well as the imposition of the sanctions and fines that are appropriate in accordance with this Law with the approval of the National Council of the Cinematographic Industry (CNIC);

• 9)

  To direct and conduct abroad, by all appropriate means, the promotional actions necessary to promote Honduran cinematographic production and to publicize the cinematographic production facilities in the country;

• 10)

  To conduct the pertinent negotiations with national and foreign investors in order to establish businesses and investments that could be realized in the future;

• 11)

  To schedule the preparation and distribution of official publications and information on cinematographic matters and coordinate that which is carried out by public and private sectors;

• 12)

  To keep updated the statistics and records that relate to cinematographic activities in Honduras;

• 13)

  To provide to the National Council of the Cinematographic Industry (CNIC) the logistical inputs it requires for its internal operation, as well as facilitate its access to any technical and administrative resource necessary for the fulfillment of its functions;

• 14)

  To ensure and supervise the imposition of the sanctions established in its Regulations; and,

• 15)

  Those others assigned to it in this Law and its respective Regulations.

The budget of the Directorate shall be established following approval by the National Council of the Cinematographic Industry (CNIC), based on the annual programming of activities, with charges to the Fund for Cinematographic Development (FONDECI) and, without prejudice to other funds it may receive through the execution of International Cooperation Agreements and/or Agreements. CHAPTER V FUND FOR CINEMATOGRAPHIC DEVELOPMENT (FONDECI)

The Fund for Cinematographic Development (FONDECI) is hereby created, which has the purpose of permanent promotion and development of the National Cinematographic Industry, which allows providing a system of financial support with legal guarantees that ensure both national and foreign investments, for the benefit of national cinematographic producers and to attract international investment to Honduras.

The Fund for Cinematographic Development (FONDECI) has the following resources:

• 1)

  The Fund for Cinematographic Development (FONDECI) shall receive from the State of Honduras an annual disbursement in the amount of Forty Million Lempiras (L.40,000,000.00) which is its primary source of financing, which must be approved in the General Budget of Income and Expenses of the Republic;

• 2)

  The resources derived from operations, financial returns, the sale or liquidation of its investments, and other resources that are generated, capitalized or reserved by the Fund for Cinematographic Development (FONDECI);

• 3)

  Donations, transfers, and national or international contributions received in cash;

• 4)

  Any other resource allocated to it from the General Budget of Income and Expenses of the Republic;

• 5)

  The goods and resources resulting from the execution of National and International Agreements and the implementation of projects;

• 6)

  Inheritances, legacies, donations, or contributions from natural or legal persons, national or foreign; and,

• 7)

  Other goods and resources it acquires under any title.

The resources of the Fund for Cinematographic Development (FONDECI) shall be allocated to the following purposes: 1) To promote, encourage, and develop educational plans and programs for training in cinematographic areas and other aspects related to this Law. The funds from the Fund for Cinematographic Development (FONDECI) shall always be allocated for scholarships, workshops, endowments, and screenwriting contests; and, 2) To promote and publicize national cinematography and the related educational activities, in the national and international territory.

The funds of the Fund for Cinematographic Development (FONDECI) without prejudice to what is established in the Public Contracting Law, and when used for the financing of cinematographic production, shall be used for investment in production expenses, filming expenses, equipment rental, and post-production services. The contributions of the Fund for Cinematographic Development (FONDECI) cannot be used for salary expenses. CHAPTER VI TAX INCENTIVE REGIME FOR NATIONAL CINEMATOGRAPHIC INVESTMENT

TAX INCENTIVE REGIME FOR NATIONAL CINEMATOGRAPHIC INVESTMENT FOR HONDURAN FEATURE FILM CINEMATOGRAPHIC WORKS. Natural or legal persons who make cash donations to duly authorized Honduran cinematographic projects by the General Directorate of Cinematography (DGC), for purposes of determining their taxable net income, in addition to those established in this Law, may deduct from their gross income for the fiscal period in which they make the donation, the amount corresponding to one hundred percent (100%) of the value of the donation up to the maximum amount established in the following paragraph. For purposes of the preceding paragraph, tax obligors categorized as large taxpayers shall have a deduction limit per fiscal period that may not exceed the equivalent of One Hundred Thousand Dollars ($100,000.00) and tax obligors categorized as medium and small taxpayers, the deduction limit per fiscal period shall be the equivalent of Fifty Thousand Dollars ($50,000.00). It is established that the Tax Incentive Regime for National Cinematographic Investment for Honduran cinematographic works cannot be linked to or used for other advertising activities or advertising purposes unrelated to the cinematographic work, or for the benefit of natural or legal persons who make donations to cinematographic projects.

TAX INCENTIVE REGIME FOR NATIONAL CINEMATOGRAPHIC INVESTMENT FOR HONDURAN FICTION SERIES CINEMATOGRAPHIC WORKS. Legal persons who make donations to duly authorized Honduran cinematographic projects by the General Directorate of Cinematography (DGC), for purposes of determining their taxable net income, in addition to those established in this Law, may deduct from their gross income for the fiscal period in which they make the donation, the amount corresponding to one hundred percent (100%) of the value of the donation up to the maximum amount established in the following paragraph. For purposes of the preceding paragraph, tax obligors categorized as large taxpayers shall have a deduction limit per fiscal period that may not exceed the equivalent of One Hundred Minimum Wages (100) and tax obligors categorized as medium and small taxpayers, the deduction limit per fiscal period shall be the equivalent of Fifty Minimum Wages (50) per year. It is established that the tax incentive regime, the national cinematographic investment for Honduran cinematographic works, cannot be linked to or used for other advertising activities or advertising purposes unrelated to the cinematographic work, or for the benefit of natural or legal persons who make donations to cinematographic projects.

REQUIREMENT TO QUALIFY FOR THE TAX INCENTIVE REGIME BENEFIT. All cinematographic works that wish to enjoy the benefits of the Tax Incentive Regime for National Cinematographic Investment must have the Certification of National Cinematographic Work, which shall be issued by the General Directorate of Cinematography (DGC) in order to be eligible to use the Tax Incentive Regime for National Cinematographic Investment.

BENEFITS FOR INTERNATIONAL PRODUCTIONS THAT FILM ON NATIONAL TERRITORY. Any international production that films in Honduras and that legally enters with the objective of recording in Honduran territory and with authorization to carry out the same, shall have the right to request before the Secretary of State of the Treasury Department the exemptions that relieve it from the payment of taxes generated in the acquisition of goods and services acquired in Honduras that are necessary for the production of the work, which must be previously certified by the General Directorate of Cinematography (DGC). All international productions that film in Honduras must have the participation of Honduran labor, production equipment of at least thirty percent (30%). Likewise, they shall have the facility to request from the General Directorate of Cinematography (DGC) funds or contributions in case that the production carried out is considered a coproduction with joint participation with a national production company that must have a minimum of three (3) years of recognized trajectory in the national cinematographic industry and the production is classified as being of national interest. CHAPTER VII IMPLEMENTATIONS FOR THE DEVELOPMENT OF THE CINEMATOGRAPHIC MARKET AT THE NATIONAL LEVEL

INCENTIVE FOR NATIONAL CINEMATOGRAPHIC WORKS. With the objective of incentivizing national productions: 1) Cinema theaters and national producers shall coordinate the programming of exhibitions, so that there is a minimum of three (3) weeks between the premiere of each national film; this time between premieres shall be reviewed every three (3) years to verify if the number of films has increased and if it requires modification; and, 2) Cinema theaters are prohibited from charging extraterritorial rates or additional charges such as VPF or any other similar charge, to Other National Cinematographic Works or National Products.

PARTICIPATING AGENTS. Those that are legally registered with the General Directorate of Cinematography (DGC) and the same may be beneficiaries of the Fund for Cinematographic Development (FONDECI). Any service provider that is qualified as such by the General Directorate of Cinematography (DGC) may charge members a fee or monthly payment to be eligible for the benefits.

BENEFITS. The benefits of the Participating Agents that are registered in the National Cinematography Registry (RNC) are as follows:

• 1)

  Obtain the Participating Agent Identification;

• 2)

  Be included in the catalogs, directories and guides prepared by the General Directorate of Cinematography (DGC);

• 3)

  Acquire recognition of the category corresponding to the quality of their services, as well as request its modification when they meet the requirements established in the respective Regulations;

• 4)

  Receive advice from the General Directorate of Cinematography (DGC) regarding general information, promotion and execution of projects, market research and cinematography promotion campaigns;

• 5)

  Receive assistance as appropriate from the General Directorate of Cinematography (DGC) for obtaining credits, incentives and facilities of various kinds, intended for the installation, expansion and improvement of cinematographic services;

• 6)

  Obtain from the General Directorate of Cinematography (DGC) when appropriate its intervention and support in the proceedings carried out before other Authorities;

• 7)

  Have access to cinematographic promotion and training programs promoted or carried out by the General Directorate of Cinematography (DGC); and,

• 8)

  The others indicated in the regulatory provisions.

FINES AND SANCTIONS. The General Directorate of Cinematography (DGC) shall impose sanctions for violation of the provisions contained in this Law. As the case may be, there shall be written reprimands and fines that shall range between five (5) and ten (10) minimum wages in a progressive manner and for recidivism. The challenges arising from the application of sanctions and enforcement of fines established in this Law shall be known in accordance with the administrative contentious process not without first having exhausted the administrative remedies. The sanctioning procedure as the case may be shall be established in the regulations of this Law. CHAPTER VIII TRANSITORY PROVISIONS

OBLIGATION TO REGISTER AGENTS. All Participating Agents must register in the National Cinematography Registry (RNC) from the time the Regulations of this Law have been published.

ADMINISTRATION OF FUNDS. For the organization and operation of the General Directorate of Cinematography (DGC), the Secretary of State of the Treasury Department shall allocate the resources mentioned in articles 11 and 13 of this Law to the Fund for Cinematographic Development (FONDECI). These funds shall be administered by the General Directorate of Cinematography (DGC) and the National Council of the Cinematographic Industry (CNIC).

REGULATIONS. The Regulations of this Decree must be approved by the Council of the Cinematographic Industry (CNIC), within a period of ninety (90) business days counted from the date of publication of this Decree.

EFFECTIVE DATE. This Decree repeals any legal provision that opposes it and shall enter into force as of the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Chamber of the National Congress, on the twenty-ninth day of the month of January of the year two thousand nineteen. ANTONIO CESAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Branch Therefore: Execute. Tegucigalpa, M.D.C., October 25, 2019. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICES OF GOVERNANCE, JUSTICE AND DECENTRALIZATION HÉCTOR LEONEL AYLA ALVARENGA