Regulations of the Honduran Film Law

PURPOSE OF THE REGULATION. The provisions contained in this Regulation are of public order and social interest, and are intended to establish the regulatory framework for the application of the Cinematography Law of Honduras, Decree No. 3 – 2019 dated January 29, 2019, as well as the regulation of the various substantive aspects of cinematographic and audiovisual activity; the promotion and encouragement of the production, distribution and exhibition of cinematographic works, audiovisual works, promotion of cinematographic infrastructure projects and the establishment of both conditions that favor their creation and dissemination as well as measures for the conservation of cinematographic and audiovisual heritage, all of this in a context of promoting a self-sustainable Cinematographic Industry in Honduras, the defense, and promotion of identity and cultural diversity.

The scope of application of the provisions of the Cinematography Law of Honduras and this Regulation applies to natural or legal persons who develop activities within the national territory promoting the creation, production, distribution, exhibition, development of cinematographic infrastructure and cinematographic training.

DEFINITIONS. For purposes of this regulation, the following definitions are adopted: (1) Cinematographic Activity: The conjunction of the concepts of the Cinematographic Industry and National Cinematography. (2) Participating Agents: Those who are legally registered with the General Directorate of Cinematography (DGC) and who participate in the filmmaking process. For purposes of the Cinematography Law of Honduras and this Regulation, the following shall be considered Participating Agents: cinematographic producers, cinematographic distributors, cinematographic exhibitors, cinematographic studios, providers of creative and artistic services, cinematographic technical personnel and any other natural or legal person that, in the consideration of the National Council of the Cinematographic Industry (CNIC), its activity is related to the Cinematographic Industry. (3) Animation: A cinematographic production mechanism in which images are produced through drawings, computer design and other techniques, such that when projected they produce the sensation of movement. (4) Single Filming Notice: It is the document that shall be presented before the General Directorate of Cinematography (DGC) announcing the start of filming in places within the Republic of Honduras where the filming will take place, with which the production company, producer or legal representative, if necessary, will manage the corresponding municipal and local permits to proceed with the filming. The sole purpose of the Single Filming Notice consists of obtaining a measurement of the total number of National Cinematographic Works carried out within the national territory. (5) Certification of National Cinematographic Work: Certification granted by the General Directorate of Cinematography (DGC) to Honduran Audiovisual Works that, being carried out as a unique production or as a co-production even with foreign participation, is considered as a Honduran film, when it incorporates as a minimum the following requirements:

• a)

  That it has a participation of Honduran labor (production team) of at least sixty-five percent (65%) and/or that the Director or Producer or Production Company is Honduran; exempt from this consideration is the artistic talent of actors and actresses; and,

• b)

  That at least thirty percent (30%) of the capital invested by natural or legal person comes from national funds.

• c)

  That at least thirty percent (30%) of the filming or shooting is carried out in national territory. For purposes of this Law, the following terms are considered analogous: "Honduran Film," "National Film" or "Honduran Audiovisual Work." (6) Producer: The natural person in charge of the making of a film and who has responsibility for all Actors, Technicians, Directors and Workers in the cinematography field and who will be subject to what is established in

numeral 13) of the Copyright Law and Related Rights. (7) Production Company: The legally constituted legal person that has all necessary means for the production, filming of films and any other need, including distribution in projection halls. (8) National Council of the Cinematographic Industry (CNIC): Is the Administrative Body governing the General Directorate of Cinematography. (9) Cinematographic Co-production: Cinematographic work that is made by two (2) or more producers whether natural or legal persons in Honduras or between natural or legal persons of other countries. (10) General Directorate of Cinematography (DGC): Is the administrative body responsible for formulating plans, strategies, issuing certifications, institutional development programs and any other function that grants the Cinematography Law of Honduras and this Regulation. (11) Distributor: Natural or legal person who dedicates 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. (12) Exhibitor: Natural or legal person who is in charge of the operation of a cinema hall, as owner, tenant, concessionaire or under any other form that confers such right. (13) Fund for Cinematographic Development (FONDECI): Is the financial body in charge of administering the resources received from the State of Honduras for the functioning of the General Directorate of Cinematography (DGC) under the supervision of the National Council of the Cinematographic Industry (CNIC) in accordance with what is established in its Operating Plan. (14) Cinematographic Industry: 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 regardless of their nationality. (15) Audiovisual Work: The one that consists of a sequence of associated images, with or without sound, intended for exhibition by means of devices suitable for public communication of the image and sound. Audiovisual works include cinematographic ones and all those expressed by means analogous to cinematography. (16) Cinematographic Work: Any work of cinematographic language referring to real or imaginary facts, resulting from the fixation in images with or without sound of forms susceptible to being perceived by the human sight, such that when these are reproduced generates an impression of movement. All of this regardless of the physical support it uses, the technology that permits the fixation of images or sounds and the means used for their reproduction or dissemination. The following are considered as such: works for cinema, video, DVD, on compact disc or on any other physical support, by digital, analog procedures or any other that is 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. (17) Honduran Cinematographic Work of Feature Film: Is the work carried out as a unique production or a co-production even with foreign participation, that incorporates as a minimum the following requirements: a) That the language is 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 has been carried out in Honduran territory; c) Minimum duration of eighty (80) minutes; and, d) That it meets the requirements for Certification of National Cinematographic Work. (18) Honduran Cinematographic Work of Short Film: The one that, being carried out as a unique production or a co-production even with foreign participation, incorporates as a minimum the following requirements:

• a)

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

• b)

  Maximum duration of thirty-five (35) minutes;

• c)

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

• d)

  That it meets the requirements for Certification of National Cinematographic Work. (19) Honduran Cinematographic Work of Medium-length Film: The one that meeting equal conditions of artistic, technical and economic participation as those provided in the case of Feature Film and Short Film, has a duration intermediate between one and the other. (20) Honduran Cinematographic Work of Fiction Series: The one that, being carried out as a unique production or a co-production even with foreign participation, incorporates as a minimum the following requirements:

  • a)

    That the language is 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 has been carried out 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; or minimum duration of 30 minutes with a minimum of six (6) episodes per series.

  • d)

    That it meets the requirements for Certification of National Cinematographic Work. (21) Foreign Film: The one that does not meet the requirements to be considered as a Honduran cinematographic work. (22) Registry of Cinematographic or Audiovisual Works: The registration of a cinematographic or audiovisual work is in charge 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 in charge of the Censorship Commission dependent on the Secretariat of State in the Offices of Governance, Justice and Decentralization. (23) National Cinematography Registry: The General Directorate of Cinematography (DGC) shall create the National Cinematographic Registry (RNC) so that any natural or legal person dedicated to the production of cinematographic and audiovisual works shall register as a Participating Agent. The main purpose of the National Cinematographic Registry (RNC) shall be to keep a registry of national cinematographic works produced within the national territory or exhibited in national cinema halls, as well as the registry of persons, companies and all those who are active within the National Cinematographic Industry. (24) Cinema Hall: A place open to the public, equipped with a projection screen that, through the payment of a price or any other form of transaction, grants the right of admission to the projection of films in any format. This concept is analogous to "Screen" or "Exhibition Hall." (25) National Cinematography Seal: A figurative sign that identifies the Republic of Honduras as the place in which a cinematographic or audiovisual work is totally or partially carried out, which must be placed and displayed when such work has been carried out in accordance with one of the

The National Council of the Cinematographic Industry (CNIC), is the highest hierarchical body of the General Directorate of Cinematography (DGC), its main function is the application of the Cinematography Law of Honduras and this regulation.

The National Council of the Cinematographic Industry (CNIC), shall be constituted by the principal and their respective alternate in accordance with article 5 of the Cinematography Law of Honduras, in the following manner:

• a)

  One (1) representative of the Executive Branch, duly authorized by the Head of the Executive Branch for such purpose.

• b)

  The principal of the General Directorate of Cinematography (DGC), who has voice but no right to vote.

• c)

  Three (3) representatives from the private sector, constituted as follows: 1. Two (2) representatives from the Private Sector linked to cinema halls and distributors, who must be appointed by the Honduran Council of Private Enterprise (COHEP). 2. One (1) representative from the National Tourism Chamber of Honduras (CANATURH).

• d)

  Two (2) representatives from the Associations of the Cinematographic Industry in Honduras, with extensive experience in the production, direction and distribution of films, constituted by: 1. One (1) representative from the Association called Cinematographic Industry of Honduras (ICH). 2. One (1) representative from the Association called Honduran Association of Filmmakers Magic Lantern.

The Board of Directors of the CNIC mentioned in article 6 numeral 1 of the Cinematography Law of Honduras shall have the following structure: a) One President b) One Vice President c) Secretary d) Comptroller I e) Comptroller II f) Vocal Member I g) Vocal Member II The Secretary shall be designated by the National Council of the Cinematographic Industry (CNIC) in accordance with what this Regulation establishes.

The representatives of the National Council of the Cinematographic Industry (CNIC), in addition to those established in the Law, must comply with the following requirements: General requirements: a) Over 35 years of age. b) Be in full exercise of their civil rights and enjoy good conduct. Special requirements for representatives of the private sector (COHEP): a) That they be persons directly related to cinema halls and cinematographic distributors in Honduras. b) That they have knowledge of the national audiovisual field, the Cinematographic Industry and its development in Honduras. Special requirements for representatives of the private sector (CANATURH): a) That they have knowledge of how to integrate the tourism sector for the promotion of the Cinematographic Industry. b) That they have knowledge of the national audiovisual field, the Cinematographic Industry and its development in Honduras. Special requirements for representatives of Cinematographic Associations: a) That they have directly participated in the production and/or direction of cinematographic works at the national and international level. b) That they have extensive experience in the commercialization and presentation of feature film projects and other audiovisual content at the national and international level. The representatives of the private sector and the representatives of the Cinematographic Industry Associations of Honduras must, through their respective organizations, present within sixty (60) days prior to the end of each term, a candidate for the position with their respective alternate, who must meet the same requirements.

The National Council of the Cinematographic Industry (CNIC), in addition to those described in articles 6 and 7 of the Cinematography Law of Honduras, shall have the following functions:

• a)

  To establish and update through Resolution the national cinematographic policy;

• b)

  To evaluate and approve the annual execution reports submitted by the General Directorate of Cinematography (DGC) in January of each year;

• c)

  To know and decide on the budget proposal submitted to it by the General Directorate of Cinematography (DGC) within the last two months of each year,

• d)

  To decide and arrange through Resolution the call for bids, categories of support, available funds and bases for the contests for the assignment of economic support.

• e)

  To approve the norms and internal regulations necessary for the technical and administrative functioning of the General Directorate of Cinematography (DGC) and the Fund for Cinematographic Development (FONDECI).

• f)

  Formation of the Selection Committees for the economic allocations and contests.

• g)

  To review each year the rates that will be charged by the General Directorate of Cinematography (DGC) for the procedures carried out.

• h)

  To establish the minimum technical and structural requirements that a legal person must meet so that its registration in the National Cinematography Registry be issued in the categories of cinematographic studios and specialized technical services.

• i)

  To establish the design of the National Cinematography Seal.

• j)

  To issue the resolutions and norms established in the Cinematography Law of Honduras and this Regulation, as well as all those that are pertinent for the adequate application thereof.

• k)

  To know and approve on the hiring of administrative personnel for the effective functioning of the Institution.

• l)

  All those that are for the development of the Cinematographic Industry.

The members of the National Council of the Cinematographic Industry (CNIC) shall exercise their functions Ad Honorem, but at the moment of exercising the representation of the Council in events, seminars and other related acts that benefit the Cinematographic Industry of Honduras, they shall be assigned as per diem the amount that for such purpose is allocated in the Annual Operating Plan approved by the National Council of the Cinematographic Industry (CNIC).

Meetings. The National Council of the Cinematographic Industry (CNIC) shall meet ordinarily every one hundred twenty (120) days and extraordinarily as many times as required by the President of the Council or two (2) members of the Council or the Director of the General Directorate of Cinematography (DGC), who are those who may request the Secretariat of the National Council of the Cinematographic Industry (CNIC) to initiate the established convocation procedure.

Convocation. The convocations of the National Council of the Cinematographic Industry (CNIC) shall be made at least seven (7) days before the date of the meeting, through physical or electronic communication.

Quorum. The National Council of the Cinematographic Industry (CNIC) shall be constituted with more than half of its voting members. If the required quorum is not constituted, a new convocation shall be made and the members who are present may deliberate on the matters submitted.

Resolutions. The resolutions and decisions of the National Council of the Cinematographic Industry (CNIC) must be approved with the majority of attending voting members.

In case of a tie in a vote, it shall be resolved through the casting vote, a faculty that the President of the National Council of the Cinematographic Industry (CNIC) possesses or, in their absence, by whoever presides over the assembly.

The approval of the Annual Operating Plan for the execution of resources from the Fund for Cinematographic Development (FONDECI) and the budget of the General Directorate of Cinematography (DGC) requires, in a mandatory manner, the favorable vote of 4 of the members present once quorum is established.

The minutes of sessions shall be drafted by the Secretary of the National Council of the Cinematographic Industry (CNIC), which must contain the following requirements:

• a)

  Place, date and time at which the meeting is held.

• b)

  List of members of the National Council of the Cinematographic Industry (CNIC) who have attended the session, indicating each sector they represent.

• c)

  Agenda of matters discussed.

• d)

  Decisions and resolutions approved, with the number of votes by which they were adopted.

• e)

  The signature of members attending the meeting, which must be affixed no later than at the following meeting.

Secretariat of the National Council of the Cinematographic Industry (CNIC). The Secretary of the National Council of the Cinematographic Industry (CNIC) shall be elected by the Council; his functions shall be limited to those designated to him by the Law and this Regulation. He shall have the right to speak, but shall not have the right to vote in the decisions of the National Council of the Cinematographic Industry (CNIC).

The Secretary of the National Council of the Cinematographic Industry (CNIC) shall have the following functions:

• a)

  Keep an updated record of the members of the National Council of the Cinematographic Industry (CNIC).

• b)

  Jointly prepare with the President of the National Council of the Cinematographic Industry (CNIC) and/or the Director of the General Directorate of Cinematography (DGC), the agenda corresponding to each session.

• c)

  Prepare and timely send ordinary and extraordinary convocations to all members of the National Council of the Cinematographic Industry (CNIC).

• d)

  Prepare the minutes corresponding to the assemblies of the National Council of the Cinematographic Industry (CNIC).

• e)

  Organize and maintain at all times an updated file of all minutes of assemblies and activities of the National Council of the Cinematographic Industry (CNIC), as well as all resolutions issued by said body.

• f)

  Send to the General Directorate of Cinematography (DGC), certified copies of all documents that form part of the file, so that said body has its own file.

• g)

  Issue, upon request of any person, certified copies of said minutes and resolutions, as well as any other certification that may be required regarding the content of these documents.

Logistics Unit of the National Council of the Cinematographic Industry. It shall be under the charge of the National Council of the Cinematographic Industry (CNIC) and shall exercise the functions of planning and management, when required by the Council.

Functions of the Logistics Unit of the National Council of the Cinematographic Industry (CNIC). The exercise of these functions implies:

• a)

  Support the National Council of the Cinematographic Industry (CNIC) in the operational aspects it requires for its functioning.

• b)

  Receive instances and communications directed to the National Council of the Cinematographic Industry (CNIC) as the superior hierarchical body of the General Directorate of Cinematography and forward it to each of its members.

• c)

  Facilitate the contracting of any technical advice required by the National Council of the Cinematographic Industry (CNIC) for the exercise of the functions that the Law and this Regulation place in charge of said entity.

• d)

  Provide logistical support to the tasks and functions of the National Council of the Cinematographic Industry (CNIC).

• e)

  Any other function that may be assigned to it by resolution of the National Council of the Cinematographic Industry (CNIC) or by other regulations.

The General Directorate of Cinematography (DGC) is responsible for the application of the Cinematography Law of Honduras and this Regulation, as well as for the execution of the policy established by the National Council of the Cinematographic Industry (CNIC) to regulate the activity of the Cinematographic Industry of Honduras. It is created as a Deconcentrated Body of the Presidency of the Republic, with legal personality and its own assets, which shall function with technical, administrative and financial independence. Its organization, functioning and powers are regulated by the Cinematography Law of Honduras and this Regulation or other regulations.

The General Directorate of Cinematography (DGC) must have a manual of functions, approved by the National Council of the Cinematographic Industry (CNIC), in which the specific responsibilities of each of its departments are detailed in accordance with what is established in the Cinematography Law.

The budget of the General Directorate of Cinematography (DGC) must be administered in accordance with the Annual Operating Plan that is approved by the National Council of the Cinematographic Industry (CNIC).

The budget in addition to what is contained in

Article 11 of the Cinematography Law of Honduras shall be comprised of:

• a)

  Own Resources: Those income collected by the General Directorate of Cinematography (DGC) to finance actions of the same.

• b)

  Internal Donations: Transfers from persons or institutions that develop activity in the national territory.

• c)

  External Donations: Those income from foreign governments and international organizations.

• d)

  Internal Credit: Those that come from the use of credit from internal sources.

• e)

  External Credit: Income from credits granted by foreign governments, international organizations and international financial entities.

• f)

  Other income that for this purpose is designated by the Ministry of Finance and any other entity.

Powers. The General Directorate of Cinematography (DGC), in addition to those described in

Article 8 of the Cinematography Law of Honduras, shall have the following powers:

• a)

  Ensure that the processes established in the Cinematography Law of Honduras and this regulation are complied with.

• b)

  Ensure that the Cinematographic Industry contributes to the economic, social and cultural development of Honduras.

• c)

  Execute the policies and regulations for cinematographic and audiovisual activity, in aspects related to the scope of application of the Cinematography Law of Honduras and this Regulation.

• d)

  Propose to the National Council of the Cinematographic Industry (CNIC), the plans and programs to be executed by the General Directorate of Cinematography (DGC).

• e)

  Prepare the operating budget of the General Directorate of Cinematography (DGC) and submit it for consideration of the National Council of the Cinematographic Industry.

• f)

  Prepare the proposed Operating Plan for execution of the Fund for Cinematographic Development (FONDECI).

• g)

  Prepare and present to the National Council of the Cinematographic Industry (CNIC) the annual execution reports of the Fund for Cinematographic Development (FONDECI) in January of each year.

• h)

  Evaluate and decide on applications for Certification of National Cinematographic Work, in accordance with the requirements established in the Law and this Regulation for such purposes.

• i)

  Monitor the production, commercialization and distribution of cinematographic and audiovisual works.

• j)

  Facilitate and support initiatives for the development of cinematographic infrastructure in Honduras.

• k)

  Perform, prior to exhibition, the classification of cinematographic works together with the Ministry of Human Rights, Justice, Governance and Decentralization.

• l)

  Prepare proposals for regulations and internal norms of the General Directorate of Cinematography (DGC), which shall be submitted for approval by the National Council of the Cinematographic Industry (CNIC).

• m)

  Process applications for economic allocations to be approved by the National Council of the Cinematographic Industry (CNIC).

• n)

  Prepare and execute agreements for allocation of resources from the Fund for Cinematographic Development (FONDECI), in accordance with the terms that the National Council of the Cinematographic Industry (CNIC) approves through resolutions. o) Execute with the approval of the National Council of the Cinematographic Industry (CNIC) agreements, contracts or agreements of cooperation or donation with national and international, public or private organizations, which shall be subject to the terms and conditions established by the donor for the management, administration and disbursement of donated funds. p) Perform evaluations, verifications and recommendations established in the procedures for the application of tax incentives contemplated in the Cinematography Law of Honduras and this Regulation. q) Decide all remedies for reconsideration that are submitted to it in accordance with this Regulation or general administrative procedures.

The Director of the General Directorate of Cinematography (DGC) shall report hierarchically to the National Council of the Cinematographic Industry (CNIC) and shall be responsible for the execution of programs and projects aimed at the sustainable development of the national Cinematographic Industry.

In addition to those granted in Article 10 of the Cinematography Law of Honduras, the Director shall have the following powers:

• a)

  Direct the technical and administrative activities of the General Directorate of Cinematography (DGC).

• b)

  Distribute tasks and assign responsibilities to the personnel under his charge.

• c)

  Coordinate and regulate the execution of policies for cinematographic and audiovisual activities in aspects related to the scope of application of the Law and this Regulation.

• d)

  Promote the development of cinematographic production and promotion, attending to the modernization and internationalization of the Cinematographic Industry.

• e)

  Promote policies directed at national or foreign investors of financial and commercial entities, public and private, so that they create financial spaces that facilitate the sustainable development of the national Cinematographic and audiovisual Industry.

• f)

  Support, within the scope of Tax Legislation, the application of tax incentives contemplated in the Cinematography Law of Honduras to promote the development of the Cinematographic Industry.

• g)

  Execute collaboration agreements with national and international, public or private entities, necessary for the promotion of cinematographic activity and the training of professionals in the area.

• h)

  Collaborate with different educational entities to promote the knowledge and dissemination of cinema in different educational fields.

• i)

  Develop the market for national cinematographic and audiovisual works, stimulating the creation of new audiences and reinforcing the conditions for expansion, independence and sustainability of the national Cinematographic Industry.

• j)

  All other measures that help the development of the national Cinematographic Industry.

The holder of the General Directorate of Cinematography (DGC) must meet the requirements set forth in Article 9 of the Cinematography Law of Honduras: 1: Be Honduran by birth. 2: Be older than thirty-five (35) years of age. 3: Be in full enjoyment and exercise of his civil rights. 4: Be a professional with extensive and demonstrated experience, minimum ten (10) years, in the areas of cinematographic and audiovisual production; and, 5: Be of recognized honorability.

The selection process for candidates to apply for the position of Director of the General Directorate of Cinematography (DGC) shall be conducted sixty (60) days before the end of the four (4) year period that the Director has to exercise his functions. This process shall be the responsibility of the National Council of the Cinematographic Industry (CNIC), who shall deliberate based on the capacity, suitability, aptitude, work history and personal background within the scope of the National Cinematographic Industry that the candidates for the position possess, in addition to the requirements established in Article 9 of the Cinematography Law of Honduras and the present Regulation. In the event that the applicants do not meet the necessary requirements, the members of the National Council of the Cinematographic Industry (CNIC) shall have the authority to declare the selection process void and may, with four (4) votes in favor, in plenary session of the members that make up the National Council of the Cinematographic Industry (CNIC), send to the Head of the Executive Branch a single candidate for his appointment.

The Director may be reelected for one additional period, in accordance with Article 9 of the Cinematography Law. He must formally present his intention to continue for an additional period before the National Council of the Cinematographic Industry (CNIC), which shall resolve within a period of five (5) days. In order for it to be favorable, he must have four (4) votes in favor from the members of the National Council of the National Cinematographic Industry (CNIC).

The Director may be suspended or removed from the exercise of his functions, at the discretion of the National Council of the Cinematographic Industry (CNIC), in the following cases:

• a)

  For violation of any of the prohibitions or non-compliance with any of the obligations established in the present Regulation.

• b)

  For manifest inability or inefficiency in the performance of the position, according to the result of two consecutive annual evaluations that are not satisfactory.

• c)

  For absence from the position without justified cause for 3 or more consecutive days.

• d)

  The repeated non-compliance with the duties inherent to his position.

• e)

  The adoption of resolutions, agreements or decisions declared manifestly illegal by the competent body or that cause serious harm to the public interest.

• f)

  Disobedience to the orders and instructions issued by the National Council of the Cinematographic Industry (CNIC).

• g)

  For the commission of a fault classified as serious by the National Council of the Cinematographic Industry (CNIC).

• h)

  For any act of violence, insults, slander or ill-treatment in which the public servant incurs.

• i)

  And all other conduct contemplated in the Public Administration Laws and duties of public officials. The National Council of the Cinematographic Industry (CNIC) shall have the authority to suspend the Director while the disciplinary process is carried out or at the discretion of the Council. In such situation the Sub-director shall assume the leadership of the General Directorate of Cinematography (DGC).

The National Council of the Cinematographic Industry (CNIC) may not apply the sanction of dismissal without first having heard the corresponding arguments, conducted the appropriate investigations, admitted the evidence that corresponds and issued an opinion, as established by the Civil Service Law.

The administration of the Fund for Cinematographic Development (FONDECI) shall correspond to the National Council of the Cinematographic Industry (CNIC) and to the General Directorate of Cinematography (DGC) in accordance with Article 25 of the Cinematography Law of Honduras. The resources referred to in Articles 11 and 13 numeral 1 of the Cinematography Law of Honduras shall be allocated in accordance with what is established in the Operating Plan that for such purpose shall be submitted before the National Council of the Cinematographic Industry (CNIC) by the holder of the General Directorate of Cinematography (DGC) as indicated in Article 10 numeral 6 of the Cinematography Law of Honduras. Likewise, for the support, promotion and permanent encouragement of the National Cinematographic and Audiovisual Industry, in order to provide a system of financial support, guarantees and investments for the benefit of producers, distributors, marketers and exhibitors of national films, as well as for the development of educational policies aimed at developing a sustainable Cinematographic Industry.

The resources that will make up the Fund for Cinematographic Development (FONDECI) are provided for in Article 13 of the Cinematography Law of Honduras.

• a)

  Resources allocated to it from the General Budget of the Republic.

• b)

  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).

• c)

  Resources that derive from sanctions imposed in accordance with the Law.

• d)

  Interest and income from deposits and financial certificates of its ownership.

• e)

  Resources from the repayment of credits granted.

• f)

  Unused resources from previous fiscal years.

FONDECI resources shall be allocated in accordance with Article 14 of the Cinematography Law of Honduras to the following categories: a. Promote, foster and develop educational plans and programs for training in cinematographic areas. b. Support the production, distribution and commercialization of national cinematographic works. c. Conservation and preservation of national cinematographic and audiovisual memory. d. Support all activity that fosters professional training through the financing of scholarships, internships or residencies in educational institutions or programs in the cinematographic and audiovisual area. e. Programs for conservation and promotion of national film and audiovisual heritage. f. Policies for the protection of copyright in the commercialization, distribution and exhibition of cinematographic works. g. Creation of the National Cinematographic Registry. h. Support investment in infrastructure to improve and stimulate the growth of the Cinematographic Industry. i. Optimize and improve national cinema exhibition networks and access. j. Foster participation in national and international festivals of national cinematographic works. k. The promotion and marketing, national and international, of activities for the dissemination, distribution and exhibition of national cinematographic works. l. All those activities that aim to support and encourage the development of a self-sustainable Cinematographic Industry. m. The National Council of the Cinematographic Industry (CNIC) may expand the categories or projects that are to foster the development of a sustainable Cinematographic Industry.

Limit to the Fund for Cinematographic Development (FONDECI). The resources of the Fund for Cinematographic Development (FONDECI) coming from the disbursement made by the State of Honduras in accordance with Article 13 numeral 1 of the Cinematography Law of Honduras, without prejudice to what is established in the State Contracting Law and when used for the financing of a cinematographic production, shall be used only for investment in production expenses, filming costs, equipment rental and post-production services. Fund contributions cannot be used for salary expenses. No beneficiary of any of the categories established in Article 35 of the present Regulation or any beneficiary of the resources of the Fund for Cinematographic Development (FONDECI) established in Article 13 numeral 1 of the Cinematography Law of Honduras may receive economic allocations that exceed fifty percent (50%) of the general budget of the project or of the cinematographic work.

Preparation of the Operating Plan. In the month of November of each year, the General Directorate of Cinematography (DGC) shall submit to the National Council of the Cinematographic Industry (CNIC) the proposal of the Operating Plan for the Execution of the Resources of the Fund for Cinematographic Development (FONDECI) for the following year, which must include:

• a)

  Budget for the internal operation of the General Directorate of Cinematography (DGC).

• b)

  Budget for the operation of the National Council of the Cinematographic Industry (CNIC).

• c)

  Budget for allocations according to Operating Plan.

• d)

  Other amounts determined by the Law or by regulations and normative provisions approved by resolution of the National Council of the Cinematographic Industry (CNIC).

For the approval of the Operating Plan for the Execution of the Resources of the Fund for Cinematographic Development (FONDECI), 4 votes in favor shall be required from the members that make up the National Council of the Cinematographic Industry (CNIC).

In the month of January of each year the General Directorate of Cinematography (DGC) shall send to the National Council of the Cinematographic Industry (CNIC) a report containing the financial details, income, expenses, allocations, investments and supporting documents of the Execution of the Operating Plan of the previous year. This report must also contain the status of the execution of the granted funds.

The beneficiaries of resources from the Fund for Cinematographic Development (FONDECI) may be natural or legal persons who are dedicated to the development of the national Cinematographic Industry.

All applicants to be beneficiaries of the resources of the Fund for Cinematographic Development (FONDECI) in the production and co-production of cinematographic works must submit an application in any of the categories established in Article 35 of the present Regulation.

Every applicant for economic allocation from the Fund for Cinematographic Development (FONDECI) must submit documentation that evidences his registration in the National Cinematographic Registry (RNC).

In the event that the applicant is a current beneficiary of the Fund for Cinematographic Development (FONDECI) and is in breach of the obligations derived from the current agreement, they may not request new economic allocation until said situation is remedied. Those applicants who are current and in compliance with their existing agreements shall have no restrictions in requesting new economic allocations from FONDECI. SECTION IV COMPETITIONS FOR ECONOMIC ALLOCATIONS

The economic allocations shall be evaluated and awarded based on the norms and regulations established by the National Council of the Cinematographic Industry (CNIC) and the General Directorate of Cinematography (DGC).

The economic allocations shall be governed by the bases that the National Council of the Cinematographic Industry (CNIC) shall establish for such purpose, by means of a Resolution that shall include, in a non-limiting manner, the modality, the support categories, the amounts to be allocated in each category, the conditions, the selection procedure, the deadlines and calendars, the documentary requirements, the general and particular selection criteria, the conditions and obligations derived from the allocation, and the required guarantees.

Every application must be submitted to the General Directorate of Cinematography (DGC) following the norms, requirements, criteria, and deadlines established by the National Council of the Cinematographic Industry (CNIC).

In addition to what is stipulated in articles 15 of the Cinematography Law of Honduras and articles 36 and 31 of this regulation, every applicant for economic allocations from the Fund for Cinematographic Development (FONDECI) shall prove at the time of submission an availability of financing of at least fifty percent (50%) of the total budget of the presented project, for which they must provide the following documents:

• a)

  Sworn statement of the legal representative duly authenticated, detailing the total budget.

• b)

  Bank operating certificate showing the availability of funds corresponding to fifty percent (50%) of the total project budget.

• c)

  In case the applicant does not yet have the funds for fifty percent (50%) of the total project budget, the applicant must provide Letter or Letters of commitment from investors, sponsors, or institutional support, showing that they are committed to covering the remaining budget.

• d)

  The Beneficiary, within ninety (90) business days following notification of being selected for economic allocation, must prove the availability of funds corresponding to fifty percent (50%) of the total budget of the cinematographic work.

The evaluation of the economic allocations shall be the responsibility of a Selection Committee that the National Council of the Cinematographic Industry (CNIC) shall designate by Resolution. Said Committee shall be composed of three (3) experts, national or foreign, designated by the National Council of the Cinematographic Industry (CNIC), who have experience and recognized trajectory in cinematographic activities. If necessary, the head of the General Directorate of Cinematography (DGC) may be designated as a member of the Selection Committee by the National Council of the Cinematographic Industry (CNIC). The Selection Committee may also request that the General Directorate of Cinematography (DGC) contract expert technicians when required.

In case of resignation or impossibility of participation of one or several members of the Selection Committee, the National Council of the Cinematographic Industry (CNIC) shall proceed with their replacement.

The members of the Selection Committee shall perform their functions ad honorem, but in case the evaluation process requires expenses related to logistics or other similar matters, they shall be assigned as per diems the amount that for such purpose is allocated in the Annual Operating Plan approved by the National Council of the Cinematographic Industry (CNIC).

For the selection of beneficiaries of the resources of the Fund for Cinematographic Development (FONDECI), the Selection Committee shall take into consideration the following criteria:

• a)

  Technical, artistic, and cultural value of the work or project;

• b)

  Technical and financial viability;

• c)

  Experience and trajectory of the applicant or applicants;

• d)

  Sustainability of the project.

The decisions of the Selection Committee shall be made by simple majority.

The Selection Committee must evaluate and select the projects and applications within a period of forty-five (45) business days counted from the receipt of the admitted projects.

The Selection Committee shall send to the National Council of the Cinematographic Industry (CNIC) for its approval, the list of selected projects, with recommendations of the amounts to be allocated and the modality of resource distribution. SECTION V EXECUTION OF THE RESOURCES OF THE FUND FOR CINEMATOGRAPHIC DEVELOPMENT (FONDECI)

The obligations of every beneficiary of resources from the Fund for Cinematographic Development (FONDECI) are:

• a)

  To execute an agreement for allocation of resources and comply with its terms;

• b)

  To present a detailed report of the use of funds;

• c)

  To place the National Cinematography Seal.

Content of the agreement. The agreement for allocation of resources must contain at least the following:

• a)

  The allocated amount and its objectives;

• b)

  The modalities and deadlines for disbursement of resources;

• c)

  The characteristics of the presented project;

• d)

  The project execution calendar; and, e. The bank guarantees and penalties related to non-compliance thereof. f. Total budget of the project.

Natural or juridical persons who breach the agreement for allocation of resources granted by the Fund for Cinematographic Development (FONDECI), prior to any warning or action by the General Directorate of Cinematography (DGC), shall have the right to present in writing to said Directorate the reasons for non-compliance, in order to reach a conciliatory agreement. If no conciliatory agreement can be reached, the General Directorate of Cinematography (DGC) shall have the option to make its claim through the corresponding legal channels.

The funds allocated by the State of Honduras through the corresponding budgetary item, as designated by Article 13, numeral 1 of the Cinematography Law of Honduras and which forms part of the Fund for Cinematographic Development (FONDECI) shall be governed by the provisions of this Regulation. Any resource other than what is provided in the preceding paragraph, which enters the General Directorate of Cinematography (DGC) in the form of donations, contributions, or financing made by National and International Organizations or private entities, shall be administered through the General Directorate of Cinematography (DGC) in accordance with what is established in the agreements, contracts, or conventions that are entered into for such purpose. CHAPTER V SECTION I REGIME OF TAX INCENTIVES FOR NATIONAL CINEMATOGRAPHIC INVESTMENT

In order for a beneficiary to be able to use the incentive established in Articles 16 for Honduran cinematographic works of feature films and Article 17 for Honduran cinematographic works of fiction series of the Cinematography Law of Honduras, they must comply with the following requirements: 1. That it be a commercial company or entity domiciled in the Republic of Honduras. 2. That the exclusive activity of the commercial company or entity be the production of cinematographic or audiovisual works. 3. That it have current registration in the National Cinematographic Registry (RNC). 4. That it be current in its tax obligations with the Tax Administration System (SAR).

The following national cinematographic works are excluded from this incentive: 1. Works whose main content is the simple representation or linear reproduction of real events, including news facts, artistic and sporting events, awards ceremonies and/or shows. 2. Works whose main purpose is the marketing, advertising, or promotion of products, services, institutions, and businesses. 3. Works of an institutional character, intended to highlight the image, trajectory, or services of an institution. 4. Works with a fundamentally pedagogical objective, of instruction or training of any nature. 5. Works with essentially pornographic content.

For the purposes of what is stipulated in Articles 16 and 17 of the Cinematography Law and of this Regulation, donors shall be considered any natural or legal person, taxpayer obligor classified as a small, medium, or large taxpayer that makes a donation with the purpose of supporting the production of Honduran cinematographic projects of feature films and fiction series, duly authorized by the General Directorate of Cinematography (DGC).

Natural or legal persons that make donations to the production of national cinematographic works that have the corresponding resolution for fiscal incentive, in accordance with Articles 16 and 17 of the Cinematography Law of Honduras, may deduct from their Gross Annual Net Income one hundred percent (100%) in the year or fiscal period in which they granted the donation.

The donations referred to in Articles 16 and 17 of the Cinematography Law of Honduras, which are made in the form of support for the production of Honduran cinematographic works of feature films and fiction series, shall have the following limits: For Honduran cinematographic works of feature films: a. Natural or legal persons, categorized as small and medium taxpayers, the deduction limit per fiscal period shall be equivalent to Fifty Thousand Dollars (US$50,000.00). b. Natural or legal persons, categorized as large taxpayers, the deduction limit per fiscal period may not exceed the equivalent of One Hundred Thousand Dollars (US$100,000.00). For Honduran cinematographic works of fiction series: a. Natural or legal persons, categorized as small and medium taxpayers, the deduction limit per fiscal period shall be equivalent to Fifty (50) minimum salaries. b. Natural or legal persons, categorized as large taxpayers, the deduction limit per fiscal period may not exceed the equivalent of One Hundred (100) minimum salaries. SECTION II REQUIREMENTS TO OBTAIN RESOLUTION FOR TAX INCENTIVE FOR NATIONAL CINEMATOGRAPHIC INVESTMENT

Any beneficiary requesting the process to obtain the resolution for incentive established in Articles 16 for Honduran cinematographic works of feature films and

for Honduran cinematographic works of fiction series of the Cinematography Law of Honduras must submit the following documents: 1. Application Form in which the general data of the project are stated. 2. Identification Document of the legal representative. 3. Certificate of registration of the applicant before the National Cinematographic Registry (RNC). 4. Copy of the National Tax Registry (RTN). 5. Certificate of tax solvency. 6. Copy of current Operating License. 7. Copy of the Definitive Certification of National Cinematographic Work.

The total value of donations made in favor of the cinematographic work must be for an amount equal to or less than the budget of the work approved by the General Directorate of Cinematography (DGC) in the Definitive Certification of National Cinematographic Work.

Once the application is presented together with all the requirements that are established, the General Directorate of Cinematography (DGC) shall process it accordingly and within a period of thirty (30) business days, shall issue the corresponding resolution and shall notify the applicant within a period of no more than ten (10) days.

The resolution for incentive issued by the General Directorate of Cinematography (DGC) shall have a validity period of two (2) years, counted from the day following notification. The beneficiary may only receive donations in the form of incentive during the period of validity of the resolution. SECTION III REQUIREMENTS FOR INTERNATIONAL PRODUCTIONS THAT FILM IN NATIONAL TERRITORY

The General Directorate of Cinematography (DGC) in collaboration with the Secretariat of State in the Offices of Finance shall create the forms and mechanisms so that international productions may request the exemptions that exempt them from the payment of taxes generated in the acquisition or purchase of goods and services in Honduras that are necessary and are related to the production of the cinematographic work, in accordance with

of the Cinematography Law of Honduras.

All international productions that enter the territory of the Republic of Honduras with the purpose of carrying out filming projects, television content, cinematographic works, or audiovisual works, must have the filming permit that shall be issued by the General Directorate of Cinematography (DGC), and they shall also be obligated to comply with the requirements established by the Cinematography Law of Honduras: 1. Complete the international production request form, which must be signed by the International Producer and the National Producer. 2. Certificate of Registration of the National Producer as a participating agent, issued by the General Directorate of Cinematography (DGC). 3. Accreditation where the local producer is established as the local representative of the international production. 4. General description of the cinematographic or audiovisual work, summary of the project. 5. List of places or locations in national territory where the production will take place. 6. Filming schedule. 7. List of all national or foreign personnel, with proper identification, who participate in the production of the cinematographic or audiovisual work. 8. Every international production must have thirty percent (30%) of national technical labor at all times, as stipulated in the Cinematography Law of Honduras and this Regulation. Excluded from the thirty (30%) percent mentioned in the preceding paragraph are third-party suppliers and logistics equipment. 9. List of national and international service providers who will provide their services to the production. 10. Receipt of payment for the filing of the filming permit request.

Once the application is presented together with all the requirements that are established, the General Directorate of Cinematography (DGC) shall process it accordingly and within a period of five (5) business days, shall respond by granting or denying the permit. In the case that the permit is denied, a reasoned response shall be given of the facts or omissions for which the permit is not granted. Without prejudice to the right that each applicant has to make a new request again, correcting the reasons for which their permit was not granted.

International productions that begin filming within national territory without authorization from the General Directorate of Cinematography (DGC) shall be sanctioned in accordance with the provisions of this Regulation.

International productions that require submitting any request before any Institution of the State of Honduras must do so through the General Directorate of Cinematography (DGC), which in turn shall provide follow-up within a period of fifteen (15) business days. CHAPTER IV SECTION I CERTIFICATION OF NATIONAL CINEMATOGRAPHIC WORK

The Certification of National Cinematographic Work is the document issued by the General Directorate of Cinematography (DGC) to Honduran Audiovisual Works that, being carried out as a unique production or as a co-production even with foreign participation, have complied with the requirements established for feature-length cinematographic works in article 2 numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation.

The minimum capital referred to in article 2, numeral 4, subsection b, may be contributed by one or more natural or legal persons.

Types of Certifications. The General Directorate of Cinematography (DGC) shall issue the following Certifications: a. PROVISIONAL CERTIFICATION, which shall have a validity period of two (2) years and shall be delivered to the applicant within a period not exceeding fifteen (15) business days after submission of the request. b. DEFINITIVE CERTIFICATION; is the final document that shall be issued by the General Directorate of Cinematography (DGC) to the Cinematographic Work that has completed all production and post-production processes and is in conditions to be exhibited to the Public.

The request to apply for Provisional Certification of National Cinematographic Work shall be presented before the General Directorate of Cinematography (DGC), forty-five (45) business days before the start of production.

Requirements to obtain PROVISIONAL CERTIFICATION. The request shall be presented before the General Directorate of Cinematography (DGC); for this purpose, national feature-length cinematographic works shall comply with the requirements established in article 2 numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation, the applicant must also present the following documents: 1. Complete request form. 2. Copy of the identity card of the legal representative. 3. Registration certificate as Participating Agent issued by the General Directorate of Cinematography (DGC). 4. Copy of copyright registration of the script. 5. Type of cinematographic or audiovisual work. 6. Provisional shooting schedule, including days and locations. 7. Project budget. 8. Receipt of payment of the corresponding fee for issuance of the provisional certificate.

Once the request is presented before the General Directorate of Cinematography (DGC), the documentation shall be verified so that national feature-length cinematographic works comply with the requirements established in article 2 numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation. In accordance with said evaluation, it shall grant the Provisional Certification within a period not exceeding fifteen (15) business days.

The General Directorate of Cinematography (DGC) shall issue a certification that includes, in a non-limiting manner, the title of the work, certification number, project data, date of issuance and validity period. In case of denial, the applicant may reformulate their request with the pertinent modifications.

In cases of co-productions, the certification shall include the data of all co-producers and the different nationalities of the work.

Requirements to obtain DEFINITIVE CERTIFICATION: The applicant may submit their request for issuance of Definitive Certification of National Cinematographic Work, accompanied by the following requirements: a. A sworn statement from the applicant, affirming that in the case of national feature-length cinematographic works they comply with the requirements established in article 2 numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation, with the approved budget and that the cinematographic work is completed. b. An execution report that includes the following elements:

• 1)

  Validation of the executed budget with documentary support;

• 2)

  Sworn statement of the final list of creative, technical and artistic personnel, in accordance with what is established for national feature-length cinematographic works that comply with the requirements established in article

numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article

numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation. In the case that the final executed budget is greater than the budget approved in the Provisional Certification, the applicant must justify with the proper documentation.

The General Directorate of Cinematography (DGC), for the issuance of the Definitive Certification, shall only verify and validate that national feature-length cinematographic works have complied with the requirements established in article 2 numeral 4 and numeral 16 of the Cinematography Law of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of fiction series cinematographic works that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Cinematography Law of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation, the documents and requirements indicated in article 104 of this Regulation, within a period not exceeding fifteen (15) business days, counted from the date of delivery of all documents. Once the period established in the preceding paragraph has elapsed, the applicant shall be notified via email that they may withdraw the Definitive Certification of National Cinematographic Work from the General Directorate of Cinematography (DGC).

Persons who by their own means have carried out their cinematographic projects without having requested the Provisional Certification of National Cinematographic Work prior to execution; may submit their request complying with the requirements established for obtaining Provisional Certification and Definitive Certification together. SECTION II CERTIFICATION OF NATIONAL CINEMATOGRAPHIC WORK OF CO-PRODUCTIONS

Cinematographic works produced in co-production with other countries shall be considered as a national cinematographic work and may apply for the obtainment of the National Cinematographic Work Certification; provided that they meet the requirements for feature-length cinematographic works of article 2 numeral 4 and numeral 16 of the Law of Cinematography of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of cinematographic works of fiction series that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Law of Cinematography of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation.

Co-productions may obtain the Certification of National Cinematographic Work, provisional and definitive, under the terms established for feature-length cinematographic works in article 2 numeral 4 and numeral 16 of the Law of Cinematography of Honduras and article 3 numerals 5, 17 and the others contained in this Regulation. In the cases of cinematographic works of fiction series that comply with the requirements established in article 2 numeral 4 and numeral 19 of the Law of Cinematography of Honduras and article 3 numerals 5, 20 and the others contained in this Regulation, they shall, moreover, have the same benefits and shall be subject to the same conditions and procedures as Honduran cinematographic works that are not produced in co-production.

In addition to the documents established in article 77 of this Regulation, cinematographic co-productions shall present, jointly with their application for Provisional Certification of National Cinematographic Work, the following requirements:

• a)

  Copy of the co-production agreement;

• b)

  Budget with itemized breakdown of the contribution of each co-producer;

For the obtainment of Definitive Certification, in addition to the requirements established in article 81 of this regulation, the applicant shall present a Report of the execution of the production carried out by each co-producer, duly notarized in the country of origin.

The Provisional and Definitive Certifications of National Cinematographic Work of co-productions shall be issued in as many originals as co-producers participate in the work. CHAPTER VII DEVELOPMENT OF THE CINEMATOGRAPHIC MARKET AT NATIONAL LEVEL SECTION I INCENTIVE TO NATIONAL CINEMATOGRAPHIC WORKS

In order to develop the cinematographic market, cinema theaters and national producers shall coordinate the scheduling of exhibitions, so that there is a minimum of three (3) weeks between the premiere of each national film; this time between premieres in cinema theaters shall be reviewed every three (3) years to verify whether the number of films has increased and if it requires modification.

To define the date of premiere in cinema theaters of a national cinematographic work, the producer or legal representative shall request from the exhibitor with a minimum of ninety (90) days in advance, with the following requirements: a. Letter of Request. b. Present the cinematographic or audio-visual work completed. c. Present all publicity material of the cinematographic work such as: trailer or previews, finished posters.

The exhibitor shall respond to the producer within ten (10) business days, counted from the day following the date on which the request was made by the producer with all the requirements established in the preceding article.

Given that one of the objectives of the Law of Cinematography of Honduras and this Regulation is to promote the development of a National Cinematographic Industry and a sustainable cinematographic market, cinema theaters and exhibitors shall grant to producers and distributors of national cinematographic works equitable treatment regarding percentages and distribution of income per national cinematographic work, in the same manner as with international films exhibited within national territory.

The General Directorate of Cinematography (DGC) shall be the entity responsible for ensuring compliance with what is established in the preceding articles in conjunction with cinema theaters and national producers. SECTION II PARTICIPATING AGENTS

The participating agents referred to in article 21 of the Law of Cinematography of Honduras are all those natural or legal persons that fall within the following categories: 1. Cinematographic producers. 2. Cinematographic Production Companies. 3. Cinematographic distributors. 4. Cinematographic exhibitors. 5. Cinematographic studios. 6. Creative and artistic cinematographic personnel. 7. Technical cinematographic personnel. 8. Associations, festivals and non-profit organizations of the cinematographic sector. 9. Cinematographic academic entities. 10. Cinematographic technical services companies. 11. All those that fall within the scope of the National Cinematographic Industry and comply with the requirements established by the National Council of the Cinematographic Industry (CNIC) in this Regulation.

The General Directorate of Cinematography (DGC) shall issue in favor of the Participating Agent a registration certificate, which may be requested for three (3) or five (5) years with the following information: 1. Category or categories in which the participating agent is registered. 2. Registration number. 3. Name of the registration holder. 4. Registration validity period. 5. Date of issuance. 6. Signature and seal of the Holder of the General Directorate of Cinematography. SECTION III BENEFITS

So that the Participating Agents may enjoy the benefits established in article 22 of the Law of Cinematography of Honduras, the General Directorate of Cinematography (DGC) shall have the authority to: a. Create the corresponding procedure so that natural or legal persons who register as participating agents may have their proper identification. b. Create the Directory of Participating Agents with the information gathered by the National Cinematographic Registry (RNC). This directory shall be a database of those who are active within the National Cinematographic Industry and of Cinematographic Works that are produced within National Territory. c. A technical department shall be created within the General Directorate of Cinematography (DGC), with specialized personnel so that they may provide their services in favor of participating agents who need technical advice for the development of their projects. d. The General Directorate of Cinematography (DGC) may enter into agreements with institutions of the Financial System, Public or Private, that facilitate the obtainment of credit in favor of participating agents. It may also advise in the carrying out of such procedures. CHAPTER VIII SINGLE FILMING NOTICE

It is the document containing information that shall be presented before the General Directorate of Cinematography (DGC), announcing the beginning of a filming in the locations of the Republic of Honduras where the filming shall be carried out with which the production company, producer or legal representative, in case it is necessary, shall manage the corresponding municipal and local permits to proceed with its filming. The sole purpose of the Single Filming Notice consists of obtaining a measurement of the total number of National Cinematographic Works that are produced within national territory.

The Single Filming Notice must be notified by the Legal Representative of the company, producer or producers of the National Cinematographic Work, three (3) days prior to the beginning of filming and for such purpose it must be accompanied by the following documents: 1. Complete the Single Filming Notice form online. 2. Identification document of the legal representative. 3. Registration certificate as Participating Agent issued by the General Directorate of Cinematography (DGC). 4. Type of cinematographic work. 5. General data of the filming (Dates and Places of Filming)

Once the request is confirmed, the system that the General Directorate of Cinematography (DGC) shall implement for such purpose will generate in favor of the applicant the Single Filming Notice receipt, the number with which the request was submitted, the date and place of issuance. CHAPTER IX SECTION I NATIONAL CINEMATOGRAPHY REGISTRY (RNC)

The National Cinematography Registry (RNC) is created so that any natural or legal person that is included within the definition of Participating Agents referred to in article 2 numeral 2 of the Cinematography Law of Honduras must perform the pertinent procedures for their proper registration. Likewise, it is established as a mechanism for gathering information on national cinematographic and audiovisual activity.

The National Cinematography Registry (RNC) shall be under the charge of the General Directorate of Cinematography (DGC).

Participating Agents may register in the National Cinematography Registry (RNC) before the General Directorate of Cinematography (DGC) in any of the categories established by article 94 of this regulation.

Natural or legal persons whose activities are contained in more than one of the categories referred to in article 94 may request, in the same process, registration for each one of the activities they perform within the scope of the Cinematographic Industry.

General Requirements for Registration. For registration in the National Cinematography Registry (RNC) the applicant must submit the following documents: 1. Complete online form. 2. Request that indicates the name of the applicant, their general data and the description of the activity or activities to which they are dedicated. 3. Copy of Identity Document. 4. Copy of the National Tax Registry (RTN). 5. Receipt of payment of the corresponding fee for the category or categories in which they request registration. SECTION II REGISTRY OF CINEMATOGRAPHIC OR AUDIOVISUAL WORKS

Every cinematographic work produced or exhibited within the national territory must be registered in the National Cinematography Registry (RNC), so that the General Directorate of Cinematography (DGC) can count the number of national cinematographic works produced within the national territory and every cinematographic work exhibited in national cinema theaters.

The registration request must be submitted jointly with the following documents: 1. Complete request form. 2. Certificate of registration as a Participating Agent issued by the General Directorate of Cinematography (DGC). 3. Informative sheet that includes: Title of the cinematographic work, producer, director, main actors, nationality, duration, synopsis, genre or type of work, original language, dubbing or subtitles included, year of the work. 4. Receipt of payment of the corresponding fee for registration. SECTION III REGISTRY OF CINEMA THEATERS

Every cinema theater must be registered in the National Cinematography Registry (RNC), for which purpose the following documents must be accredited:

• a)

  Submit a request with the general data of the Legal Representative, data of the establishment, address, telephone numbers, among others.

• b)

  Certificate of Registration in the National Cinematography Registry (RNC) issued by the General Directorate of Cinematography (DGC).

• c)

  Technical sheet of the establishment that describes the characteristics of the projection equipment, characteristics of the screens, capacity of the venue, evacuation and safety plans.

• d)

  Receipt of payment of registration fee. CHAPTER X FINES AND SANCTIONS SECTION I INFRACTIONS

The General Directorate of Cinematography (DGC) shall hear and sanction administrative infractions in accordance with article 23 of the Cinematography Law of Honduras. The application of sanctions by the General Directorate of Cinematography (DGC) is independent of those that another authority could apply in the exercise of its powers in accordance with the legal provisions applicable in the national territory.

The application of administrative sanctions does not exclude the criminal sanctions that individuals may incur for conduct of such nature. Neither does it exclude the possibility of demanding compensation for damages and losses caused to the General Directorate of Cinematography (DGC).

Disciplinary measures shall be applied according to the type of infraction and its severity; these may be: a) Written reprimand. b) Fines. c) Disqualification from obtaining resources from the Fund for Cinematographic Development (FONDECI).

For the processing of procedures and the imposition of sanctions, the General Directorate of Cinematography shall refer to the Administrative Procedure Law and the Law of Administrative Contentious Jurisdiction, after having completed the administrative proceedings.

The resolutions issued by the General Directorate of Cinematography (DGC) in the exercise of its functions entrusted by the Cinematography Law of Honduras and this Regulation may be appealed by means of the Review Appeal before the hierarchical superior (CNIC), within fifteen (15) business days from the date the resolution is notified, under the terms established by the Administrative Procedure Law. Once the aforementioned term has elapsed without the affected party filing the Review Appeal, the resolution in question shall become final.

This Regulation shall enter into force on the day of its publication in the Official Gazette "La Gaceta".

Within thirty (30) business days following the issuance of this Regulation, the National Council of the Cinematographic Industry (CNIC) shall issue a resolution establishing the rates for services to be requested before the General Directorate of Cinematography (DGC).

Within a period of ninety (90) business days from the publication of this Regulation in the Official Gazette La Gaceta, the various application forms and information presentation models for the different procedures to be conducted before the National Council of the Cinematographic Industry (CNIC) and the General Directorate of Cinematography (DGC) shall be made available to users.

Within forty-five (45) days of the issuance of this Regulation, notification shall be given to the different Institutions that comprise the State of Honduras that the General Directorate of Cinematography (DGC) is the entity responsible for certifying, ensuring, regulating, and executing compliance with the provisions established in the Cinematography Law of Honduras and this Regulation. And for the purposes deemed convenient, this CERTIFICATION is extended, which is CONFORMED WITH ITS ORIGINAL, in the city of Tegucigalpa, municipality of the Central District, on the twenty-first day of the month of January of the year two thousand twenty-one. __________________________________ GUILLERMO JOSÉ VALLADARES CASTELLANOS SECRETARY