ORDER OF THE MINISTER FOR CULTURE AND SPORTS OF THE REPUBLIC OF KAZAKHSTAN

of May 17, 2019 No. 140

About approval of Rules of financing and standard rates of the amounts of financing of production of the film projects applying for recognition by their national movies

According to the subitem 9) of article 5 of the Law of the Republic of Kazakhstan "About cinematography" I ORDER:

1. Approve:

1) Rules of financing of the film projects applying for recognition by their national movies according to appendix 1 to this order;

2) standard rates of the amounts of financing of production of the film projects applying for recognition by their national movies according to appendix 2 to this order.

2. For culture and art of the Ministry of Culture and sport of the Republic of Kazakhstan in the procedure established by the legislation to provide to department:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this order the direction its in electronic form in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "Institute of the legislation and legal information of the Republic of Kazakhstan" the Ministries of Justice of the Republic of Kazakhstan for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) within two working days after enforcement of this order placement it on Internet resource of the Ministry of Culture and sport of the Republic of Kazakhstan;

4) within two working days after execution of the actions provided by this Item, submission to Department of legal service of the Ministry of Culture and sport of the Republic of Kazakhstan of data on execution of actions.

3. To impose control of execution of this order on the supervising vice-Minister for Culture and Sports of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication.

Appendix 1

to the Order of the Minister for Culture and Sports of the Republic of Kazakhstan of May 17, 2019 No. 140

Rules of financing of the film projects applying for recognition by their national movies

Chapter 1. General provisions

1. These rules of financing and standard rates of the amounts of financing of production of the film projects applying for recognition by their national movies (further – Rules) are developed according to the subitem 9) of article 5 of the Law of the Republic of Kazakhstan "About cinematography" and determine procedure for financing and establish standard rates of the amounts of financing of production of the film projects applying for recognition by their national movies.

2. The basic concepts used in these rules:

1) all-studio expenses – the expenses formed in connection with the organization, servicing and management of production of the film projects which are not considered in other Articles of the estimate;

2) the subject of cinema activities – the physical person which is subject of entrepreneurship which core activities are: production of the movie and (or) film chronicle, hire of the movie, display of the movie, recovery of the movie, maintenance of cinema hall, production of film materials, performance of works and rendering services in production of the movie, educational, scientific, research, publishing, advertizing and propaganda activities in the field of cinematography, storage of the movie; cinema organization;

3) the cinema organization – the legal entity whose core activities are: production of the movie and (or) film chronicle, hire of the movie, display of the movie, recovery of the movie, maintenance of cinema hall, production of film materials, performance of works and rendering services in production of the movie, educational, scientific, research, publishing, advertizing and propaganda activities in the field of cinematography, storage of the movie;

4) the receiver of financial resources – the subject of cinema activities which signed the agreement on financing of the film project applying for recognition by its national movie;

5) authorized body – the central executive body performing management and cross-industry coordination in the field of cinematography;

6) the State center of support of national cinema – the single operator on provision of the state support in type of financing of the film projects applying for recognition by their national movies and national movies, including to the legal entity with absolute participation of the state in the authorized capital which main object of activity is production of movies, in the amount of at least thirty five percent from the total amount of the annual amount of the state financial support (further – the single operator).

Chapter 2. Procedure for financing of the film projects applying for recognitions by their national movies

3. Authorized body following the results of the competitive selection made according to Rules of selection of the film projects applying for recognition by their national movies for the rendering the state financial support on their production approved by the order of the acting minister of culture and sport of the Republic of Kazakhstan of March 15, 2019 No. 64 (it is registered in the Register of state registration of regulatory legal acts at No. 18405), makes the decision on financing of the film projects applying for recognition by their national movies (further – film projects).

4. Within 10 (ten) working days after the publication of the order the authorized body signs the contract with the single operator for services in provision of the state financial support for the film projects applying for recognition by their national movies.

5. The single operator within 15 (fifteen) working days after the conclusion of the contract with authorized body, signs with the receiver of financial resources the agreement on financing of film projects (further – the agreement).

6. Financing is performed by the single operator step by step based on the signed agreement.

7. The receiver of financial resources during implementation of film projects redistributes financial resources between the expenditure items approved by him (except for the salary fund) on the amount no more than 10 (ten) percent from the total amount of expense budget on the film project within one stage without approval of the single operator.

8. The receiver of financial resources submits to the single operator within the terms established by the agreement the act of the performed works (the rendered services) with appendix of the interim statement for each stage, and also the closing statement on completion of implementation of film projects, including the report on use of the allocated financial resources on production of film projects.

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