Presidência do Conselho de Ministros (Council of Ministers' Presidency)
Decree-Law
(This is not an official translation of the law)
The State incentive system for the Mass Media is regulated by Decree-Law no. 37-A/97, of the 31st of January, which was modified, by ratification, by Law no. 21/97, of the 27th of June, and subsequently by Decree-laws nos. 136/99, of 22nd of April, and 105/2000, of 9th of June.
After more than three years in application, it has become urgent to review the fore-mentioned incentive system in light of the subsequent results, and bearing in mind the profound transformation the mass media sector is going through.
The generalised adoption of digital technology, inherent market globalisation and the emergence of multimedia have multiplied the supply of and accessibility to information on a global scale, promoting incomparably more intense competition, which the Portuguese mass media organisations can not shun.
In an almost constant rapidly changing universe traditional agencies have the responsibility of enhancing the value of the comparative advantages they possess and taking advantage of the potential offered by new technologies to suitably exploit their segments of the market.
As the mass media is indispensable in exercising the fundamental rights of a democratic pluralist society, it is the responsibility of the State in its turn to participate in the efforts for modernisation and increasing professionalism of the sector that is imposed by technological evolution.
This effort assumes particular urgency in the case of organisations of local and regional scope, which, being dedicated to more localised information that the national organisations are not in the position to supply, sometimes face underprivileged social and economic environments. It is therefore justifiable that the State incentive system for the Mass Media continues to be directed fundamentally - though not exclusively - at local and regional media, contributing to enhance the entrepreneurial spirit indispensable for its assertion in the future.
Within this context, it is imperative to pay increasing attention to supporting the creation of Internet content in the Portuguese language, in the mass media sector.
It is also imperative to envisage greater openness and flexibility in the field of investments subject to State financial support, in order to enhance the value of projects that are particularly innovative and encourage professionalism.
Furthermore it is crucial to enable the more transparent and real functioning of the market in order to duly compensate the organisations that are better received by the public, in detriment to those that constitute unfair competition for them because of incorrect use of State incentives.
Lastly, it is important to promote scientific thought on the sector's problems, by providing incentives to encourage publications on the subject of the mass media.
These are the guiding principles of the new State incentive system for the Mass Media, laid down by this decree-law.
The government bodies of the Autonomous Regions have been heard:
Thus:
According to paragraph a) of no. 1 of article 198 of the Constitution, the Government decrees the following to serve as a general law of the Republic:
CHAPTER I
General clauses
Article 1.
Aims
This decree law creates the State incentive system for the mass media, with a view to ensuring appropriate conditions for exercising the right to information, by means of measures complementary to the vitalisation of the sector promoted by the respective economic agents.
Article 2.
Modes
1 - The State incentive system for the Mass Media consists of the following modes:
a) Indirect incentives, involving total or partial subsidisation by the State of postal charges for periodic publications, hereafter designated "postage paid";
b) Direct incentives, aimed at supporting the financing of projects within the scope of modernisation, innovation and entrepreneurial development, professional training and qualification, and others of relevant interest in the area of the mass media.
2 - The member of the Government responsible for the mass media may furthermore promote the establishment of protocols aimed at providing goods and services necessary for the activity of information organisations in more favourable conditions.
Article 3.
General conditions of access
1 - The following may benefit from the State incentive system for the mass media:
a) Owners or publishers of periodic publications classified as Portuguese according to the Press Law, as long as they are written in the Portuguese language;
b) Organisations that publish periodic publications in the Portuguese language and distribute exclusively by e-mail:
c) Audio radio broadcasting operators licensed or authorised by Law;
d) Associations and other organisations that promote incentives of relevant interest to the area of mass media.
2 - The following periodic publications are excluded from the application of this decree law:
a) Those pertaining to or published by political parties and associations, whether directly or by intermediary.
b) Those pertaining to or published by trade union associations or employers union associations or professional associations, whether directly or by intermediary, except for when included in nos. 3 and 4 of article 7.
c) Those pertaining to or published, directly or indirectly, by the central administration, whether regional or local, as well as by any services or departments dependent on the same, with the exception of municipal associations;
d) Those that are free of charge;
e) Those that are pornographic or that incite violence;
f) Those that are not sold mainly on Portuguese territory, unless aimed at Portuguese communities abroad or in African countries where Portuguese is the official language.
g) Those in which advertising content exceeds 50% of available space, including supplements and enclosures, calculated on the basis of three or more issues to be selected from those published 12 months prior to the date of submittal of the respective application;
h) Those that are not included in the concept of press, according to the law.
3 - The provisions of paragraphs d) and f) do not apply to periodical publications in the Portuguese language distributed exclusively by e-mail.
Article 4.
Preparation and decision-making
1 - It is the responsibility of the Media Institute to prepare the particulars of applications for the incentives envisaged in this decree-law.
2 - The necessary documentation for preparation of the particulars of the applications is issued by administrative ruling by the member of the Government responsible for Mass Media.
3 - The duly justified decision on granting the incentives envisaged in this decree law is the responsibility of the member of the Government responsible for the Mass Media, who may delegate the same to the Chairman of the Instituto da Comunicação Social (ICS - Media Institute).
4 - It is the responsibility of the Alta Autoridade para a Comunicação Social (AACS - High Authority for the Mass Media) to make declarations about the nature of the content of the publications referred to in paragraph e) of no. 2 of the previous article.
CHAPTER II
Postage paid
Article 5.
Definition
1 - Postage paid is understood as meaning state subsidisation of postal charges for periodical publications by means of an agreement for subscribers resident in Portugal or abroad.
2 - Postage paid exclusively covers costs for a weight not exceeding 200g per issue, including supplements and enclosures.
3 - Beneficiaries of postage paid are subject to the conditions for acceptance of packages imposed by the postal operator.
Article 6.
General information publications
1- Owners or publishers of general information periodical publications of regional scope or aimed at Portuguese communities abroad, may benefit from 95% subsidisation of postal charges for subscribers living abroad as long as they fulfil all of the following conditions at the date of submittal of application:
a) To have been publishing for at least six months;
b) To have been registered for at least six months;
c) To be registered as a monthly or less frequent publication;
d) To have had a distribution per edition of at least 1000 issues during the previous six months.
2 - Owners or publishers of general information periodical publications of regional scope or aimed at Portuguese communities abroad, may benefit from 80% subsidisation of postal charges for subscribers living abroad as long as they fulfil all of the conditions in paragraphs a) and b) of no. 1 and are in one of the following situations:
a) Have at least five professional employees with work contracts at their service, of which three should be journalists, and an average distribution per edition of at least 5000 issues during the six months prior to the date of submittal of application, if the frequency they are registered with is equal to or less than every three weeks;
b) Have at least three professional employees with work contracts at their service, of which two should be journalists, and an average distribution per edition of at least 3000 issues during the six months prior to the date of submittal of application, if the frequency they are registered with is more than every three weeks and equal to or less than weekly;
c) Have at least two professional employees with work contracts at their service, of which one should be a journalist, and an average distribution per edition of at least 1000 issues during the six months prior to the date of submittal of application, if the frequency they are registered with is more than weekly and equal to or less than fortnightly;
d) Have at least one professional employee with a work contract at their service, and an average distribution per edition of at least 1000 issues during the six months prior to the date of submittal of application, if the frequency they are registered with is more than fortnightly and equal to or less than monthly;
e) Have an average distribution per edition of at least 1000 issues during the six months prior to the date of submittal of application, as long as the frequency they are registered with is equal to or lower than monthly and advertising content does not take up more than 10% of available space, including supplements and enclosures in the period during which they benefit from the incentive;
f) Have an average distribution per edition of at least 1000 issues during the six months prior to the date of submittal of application, as long as the frequency they are registered with is equal to or lower than monthly and as long as there is no similar publication in the municipality where the publishing headquarters is situated.
3 - One single worker may not constitute the minimum number of employees stipulated in paragraphs a) to d) in the previous number for more than one periodic publication.
4 - The organisations included in the provisions of paragraphs a) to d) of no. 2 should keep organised accounts.
5 - Organisations that are not envisaged in nos. 2 to 4, but that are owners or publishers of general information periodic publications of regional scope or aimed at Portuguese communities abroad, may benefit from 60% subsidisation of their postal charges for subscribers as long as they fulfil all of the conditions in no. 1.
6 - Owners or publishers of periodic publications of an informative nature may also benefit from 80% subsidisation of their postal charges for subscribers resident in Portuguese speaking African countries as long as they fulfil the conditions in no. 1.
Article 7.
Specialised publications
1 - Owners or publishers of specialised periodic publications mentioned in this article may have access to postage paid, according to the following numbers.
2 - Associations representing the handicapped that publish publications regularly disseminating subjects of specific interest to the handicapped, and recognised as such in the opinion of the Government office that deals with social integration may benefit from 100% subsidisation of their postal charges for subscribers.
3 - Organisations that own or publish periodicals with a clear interest in scientific or technological matters and are recognised as such in the opinion of the Government office that deals with the areas of science and technology, may benefit from 80% or 95% subsidisation of their postal charges depending on whether they are destined for subscribers living in Portugal or abroad.
4 - Organisations that own or publish publications with a clear interest in literary or artistic matters and are recognised as such in the opinion of Government office that deals with the area of culture, may benefit from 80% or 95% subsidisation of their postal charges depending on whether they are destined for subscribers living in Portugal or abroad.
5 - Confederations of trade or employers unions forming part of the Comissão Permanente da Concertação Social do Conselho Económico e Social (Social Arbitration Standing Committee of the Economic and Social Council) that publish periodicals recognised in the opinion of the Government office that deals with the area of work relations as the official organ of a social partner may benefit from 80% or 95% subsidisation of their postal charges depending on whether they are destined for subscribers living in Portugal or abroad.
6 - Organisations that own or publish publications that encourage relations and exchanges with the people of Portuguese speaking countries and territories, and are recognised as doing so in the opinion of Government office that deals with co-operation, may benefit from 80% or 95% subsidisation of their postal charges depending on whether they are destined for subscribers living in Portugal or abroad, as long as the advertising content does not occupy more than 20% of available space, including supplements and enclosures during the period in which they benefit from postage paid.
7 - Organisations that own or publish publications that encourage equal opportunities, and are recognised as doing so in the opinion of Government office that deals with that area, may benefit from 80% or 95% subsidisation of their postal charges depending on whether they are destined for subscribers living in Portugal or abroad.
8 - In order to benefit from the provisions of nos. 2 and 3, the publications mentioned therein should be respectively registered with a frequency of publication no higher than quarterly or annually, have a minimum average distribution per edition of 500 or 300 issues during the six months prior to the date of submittal of application, and in any case, fulfil all the conditions in paragraphs a) and b) in no. 1 of article 6.
9 - The weight per issue to be considered for the purposes of postage paid, in respect of the publications mentioned in no. 3, is determined by joint official communication of the members of the Government responsible for the areas of science and technology and mass media.
10 - The publications mentioned in nos. 4 to 7 should fulfil all the conditions in no. 1 of article 6.
Article 8.
Support for the promotion of the publications
Within the limits stipulated in nos. 2 and 3 of article 5, organisations benefiting from postage paid have the right to full subsidisation of the postal costs of a number of issues equal to 15% of the total of those resorting to postage paid, designed to encourage the enticement of new readers and the publicising of the publication in question, especially in educational establishments, libraries, private social solidarity institutions and immigrant associations.
Article 9.
Requirements for subscriptions
1 - For the purposes of postage paid, a subscription is considered the bond by which, for a fixed period of time and by means of a payment made at the beginning of the agreement, one party undertakes to supply the other, called the subscriber, with an issue of each edition of a periodic publication of which the former is the owner or publisher.
2 - For each subscription postage for only one issue per edition will be considered, except when replacing one lost in the post or other exceptional situations that are duly justified.
3 - Evidence of the subscriptions should be given by providing the subscriber's identification and by presenting documents proving the respective payment has been made.
4 - Granting of postage paid is subject to compliance with minimum subscription prices, to be determined by an administrative rule from the member of the Government responsible for the area of Mass Media.
Article 10.
Equivalence as subscribers
For the purposes of this decree law, associates of non-profit making organisations that benefit from postage paid in accordance with article 7. are considered equivalent to subscribers, as long as they are in full enjoyment of their rights recognised by their respective articles of association.
Article 11.
Renewal
To facilitate payment of the corresponding renewal, issues posted immediately after the end of the period of the subscription will continue to benefit from postage paid, within the following limits:
a) For a period of time equivalent to half that of the subscription, up to a maximum of six months if the subscriber is resident in Portugal;
b) For a period of time equivalent to three-quarters that of the subscription, up to a maximum of nine months if the subscriber is resident abroad.
2 - In situations referred to in the previous number, for the purposes of postage paid, once renewal has been made it is considered that it began with the first edition immediately after the end of the period covered by postage paid.
Article 12.
Effects of granting concession
Concession of applications for postage paid comes into effect as from the date in which the interested party submits all the necessary documents for preparing the particulars of the process to the Instituto da Comunicação Social.
Article 13.
Beneficiary card
1 - Proof of the right to postage paid, particularly at the time of mailing, is provided by presenting a card issued by the Instituto da Comunicação Social, and contains the beneficiary number, the applicable level of state subsidisation, dates of issue and expiry, the title of the respective periodic publication and the designation of the applicant.
2 - The postage paid beneficiary card is valid for two years.
3 - When the situation of a periodic publication that qualifies it for a particular subsidy level changes, the Instituto da Comunicação Social will update the level of subsidisation applicable.
4 - The effects of the update mentioned in the previous number will be reported on the date of the occurrence that caused the change or the date that the change was reported to the Instituto da Comunicação Social, according to whether the new system is less or more favourable to the beneficiary.
5 - Any change in the level of subsidy warrants the issue of a new beneficiary card, which will have the same expiry date as the substituted card.
Article 14.
Obligations of beneficiaries
1 - Organisations benefiting from postage paid are obliged to inform the Instituto da Comunicação Social of any changes related to compliance with the general and specific requirements that qualify them for the granting of the incentive and the respective level. This information should be provided within 15 days of the occurrence of the change, without prejudice to the deadline stipulated in no. 4 of this article.
2 - The same organisations are obliged to inform the Instituto da Comunicação Social of the estimated number of subscribers to be considered in the following year, for the purposes of budget forecasts, before the 30th of June of each year.
3 - Organisations benefiting from postage paid, in accordance with paragraphs a) to d) of no. 2 of article 6., are furthermore obliged to print the names and professional portfolio numbers of the journalists that qualify it for its position on the scale of subsidisation in the respective publication, along with the items mentioned in no. 2 of article 15 of the Press Law.
4 - The substitution of any professional employee that has qualified the publication for its scale of subsidisation should take place within 60 days after the date of the occurrence that made it a requirement.
Article 15
Misuse
1 - Without prejudice to the provisions of the penal law, it is considered that postage paid is being misused when:
a) The organisation or the publication in question ceases to satisfy any of the general conditions of access;
b) The publication it relates to is published less frequently than the frequency with which it is registered, except during annual holiday periods;
c) The average circulation per edition is lower than the circulation stipulated for access to the incentive, based on a biannual evaluation.
d) The publication in question exceeds the limits of allowed advertising space mentioned in paragraphs g) of no. 2 of article 3. and e) of no. 2 of article 6. and in no. 5. of article 7.;
e) The number of professionals or journalists is lower than that stipulated in paragraphs a), b) c) or d) of no. 2 of article 6, if this was a stipulation for the applicable level of subsidy;
f) The organisation ceases to keep organised accounts, if this was a stipulation for the applicable level of subsidy ;
g) It involves the mailing of more than one issue per edition per subscriber, except when replacing one lost in the post or other exceptional situations that are duly justified.
2 - The use of the incentive to mail free periodic publications, namely as free copies, sale offers or exchanges is also considered misuse, except for the provisions of article 8.
3 - The use of the incentive to mail other publications that are non-beneficiary or that benefit from lower subsidisation as enclosures in beneficiary periodic publications is also considered misuse.
4 - The provisions of the previous number do not apply to supplements of periodic publications nor to advertising enclosures.
CHAPTER III
Direct Incentives
SECTION I
Incentives for technological modernisation
Article 16.
Characterisation
1 - Incentives for technological modernisation are aimed at promoting the quality of regional mass media organisations and their equivalent, by means of the use of new equipment, methods and technology.
2 - Incentives for technological modernisation consist of all of the following items:
a) Direct non-refundable subsidies for up to 50% of the cost of applications relevant to the approved project;
b) Partial reimbursement of the first 12 months' interest on bank loans on non-subsidised capital in accordance with the previous paragraph.
3 - For the purposes of the provisions of paragraph b) of the previous number, the level of applicable subsidies and the procedure for reimbursement are stipulated annually by an administrative ruling from the member of the Government responsible for the area of Mass Media.
Article 17.
Specific conditions of access
The following may benefit from incentives for technological modernisation:
a) Owners or publishers of national periodical publications in the Portuguese language that fulfil all of the following conditions:
i. They are general information publications
ii. They are of regional scope or aimed at Portuguese communities abroad, or encourage relations and exchanges with the people of Portuguese speaking countries and territories, and are recognised as doing so in the opinion of the Government offices that deal with co-operation;
iii. They are published no more frequently than once a month in the six months prior to the date application is submitted;
iv. They have been published and registered for at least three years before the date application is submitted;
v. They have had an average distribution per edition of at least 1000 issues during the six months prior to the date application is submitted, or at least 3000 issues in the case of those that encourage relations and exchanges with the people of Portuguese speaking countries and territories;
b) Groups of organisations that satisfy the conditions stipulated in the previous paragraph
c) Radio operators that supply program services that fulfil all of the following conditions:
i. That are of local scope
ii. That have general, informative or cultural content;
iii. That have been licensed or authorised for at least three years prior to the date application is submitted.
2 - On the date application is submitted, the applicants for incentives for technological modernisation should furthermore prove that they keep organised accounts.
Article 18.
Relevant applications
1 - The following applications are considered relevant for the purpose of incentives for technological modernisation:
a) Acquisition of equipment for:
i. Computing;
ii. Telecommunications;
iii. Reporting
iv. Graphics;
v. Audio radio broadcasting;
b) Acquisition of computer programs directly applicable to applicant's activity, including management programs;
c) Training courses aimed at correct use of the equipment and computer programs mentioned in the previous paragraphs, as long as they are associated with the acquisition of the same, and the respective amount including VAT does not exceed 15% of the total of the project.
2 - In each project, the total amount of the relevant applications including VAT may not exceed 12 million escudos.
SECTION II
Incentives for the creation of Internet content
Article 19.
Characterisation
1 - Incentives for the creation of Internet content are aimed at contributing towards giving Portuguese mass media organisations of local and regional scope or their equivalents access to new information and communication services and technologies, with a view to:
a) Fostering the creation of Internet content in the Portuguese language in the area of the Mass Media;
b) Promoting the use of new information and communication services as negotiating areas for the local and regional media.
2 - Incentives for the creation of Internet content involves a non-reimbursable subsidy of 75% of the cost of relevant applications of the approved project.
Article 20.
Specific conditions of access
1 - The following may benefit from incentives for the creation of Internet content:
a) Owners or publishers of periodic publications covered by articles 6. and 7. of this decree law;
b) Owners or publishers of exclusively e-mail periodic publications, as long as they have at least one journalist with a working contract at their service; as long as the content is mainly of a regional nature or directed at Portuguese communities abroad; or furthermore that encourage relations and exchanges with the people of Portuguese speaking countries and territories, and are recognised as doing so in the opinion of the Government office that deals with co-operation;
c) Radio operators that supply program services that fulfil all of the following conditions:
i. They provide program services of local scope;
ii. They have been licensed or authorised for at least one year prior to the date of presentation of the application;
d) Associations and other groups of organisations that satisfy the conditions covered in the previous paragraphs.
2 - At the date application is submitted, organisations applying for incentives for the creation of Internet content should furthermore prove that they keep organised accounts.
Article 21.
Relevant applications
1 - The following applications are considered relevant for the purposes of incentives for technological modernisation:
a) Costs for placing Internet pages on line for on line editions of periodic publications or for audio signal radio distribution, for a period of 12 months;
b) Acquisition of computer programs and equipment aimed at placing pages on the Internet, mentioned in the previous paragraph;
c) Training courses aimed at correct use of the equipment and computer programs mentioned in the previous paragraphs, as long as they are associated with the acquisition of the same, and the respective amount including VAT does not exceed 15% of the total of the project.
2 - In each project, the total amount of the relevant applications including VAT may not exceed 6 million escudos.
SECTION III
Incentives for innovation and entrepreneurial development
Article 22.
Characterisation
1 - Incentives for innovation and entrepreneurial development are aimed at subsidising entrepreneurial investment projects that reinforce the quality, professionalism and competitiveness of the mass media, mentioned in no. 1 of article 23.
2 - Without prejudice to the provisions of the following number, incentives for innovation and entrepreneurial development involve a non-reimbursable subsidy of 50% of the funds necessary to execute the approved project.
3 - Added to the percentage of subsidy mentioned in the previous number are the following:
a) 10%, in cases where the approved project is clearly innovative in terms of market and geographical area it is situated in;
b) 5% or 10%, in cases where the approved project gives rise to the net creation of one or more jobs, respectively, for a period of at least three years;
c) 2% or 3%, in cases where the jobs stipulated in the previous paragraph are filled by, respectively, one or more young first job seekers who have been unemployed for a long time, and either receive the minimum guaranteed income (income support benefit) or are handicapped;
d) 5%, in cases where the applicant made a profit in two of the three financial years prior to the application.
Article 23.
Specific conditions of access
1 - The following may benefit from incentives for innovation and entrepreneurial development:
a) Journalistic companies that are owners of national periodic publications in the Portuguese language that fulfil all of the following conditions:
i. They are general information publications;
ii. They are mainly of a regional scope or directed at Portuguese communities abroad, or furthermore that encourage relations and exchanges with the people of Portuguese speaking countries and territories, and are recognised as doing so in the opinion of the Government office that deals with co-operation;
iii. They have been registered and publishing for at least six months prior to the date application is submitted;
b) Radio operators that fulfil all of the following conditions:
i. They provide program services of local scope;
ii. They provide program services with generalist, informative or cultural content;
iii. They have been licensed or authorised for at least six months prior to application;
c) Groups of organisations that satisfy the conditions covered in the previous paragraphs.
2 - At the date application is submitted, organisations applying for incentives for innovation and entrepreneurial development should furthermore prove that they keep organised accounts and should present an economic and financial viability study of the investment project that forecasts the respective deadline for realisation and in which it is demonstrated that:
a) The aim of the investment project responds to the needs of the market it is aimed at;
b) Revenue from the activity during the three years following the conclusion of the investment project covers the operating costs and all fees and repayments relating to loans taken out.
3 - The same organisation may not apply in the same year for incentives for technological modernisation and for incentives for innovation and entrepreneurial development.
Article 24.
Relevant applications
1 - The following applications are considered relevant for the purposes of incentives for innovation and entrepreneurial development:
a) Construction of buildings and other premises directly linked to the exercise of the activity;
b) Refurbishment and renovation of premises, motivated by the development of the activity or aimed at improving health, hygiene and safety conditions;
c) Construction of social equipment that the company is legally obliged to have;
d) Acquisition of computer equipment and programs appropriate for the activity of the company and for its management;
e) Investment in tangible and intangible assets inherent to innovative initiatives within the context of the market and the region the project is situated in, particularly in the areas of introduction of information and communication technologies, distribution of periodic publications and marketing and advertising campaigns;
f) Costs relative to studies, diagnosis and audits to justify the project, particularly those relating to the economic and financial viability of the project and to its impact on the market and on the region it is situated in;
g) Costs with the technical assistance necessary for the execution of the applicant project, including those relative to certification of expenses by a Certified Public Accountant, within the scope of proving the projects were executed;
h) Other investments involved in projects that are related to the aims of no. 1 of article 22.
2 - On the provisions of the previous number, the following restrictions apply per project:
a) The amounts of the applications mentioned in paragraphs a), b) and c), including VAT, may not in their total, exceed 50% of the total of the project;
b) The amounts of the applications mentioned in paragraph d), including VAT, may not exceed 50% of the total of the project;
c) The amounts of the applications mentioned in paragraph e), including VAT, may not exceed 75% of the total of the project;
d) The amounts of the applications mentioned in paragraphs f) and g), including VAT, may not in their total, exceed 5% of the total of the project;
e) The overall amount of relevant applications, excluding VAT, may not exceed 30 million escudos.
3 - The approved projects should be executed within a period of two years from the date the incentive is granted.
Article 25.
Accompanying committee
1 - A committee accompanying the incentives for innovation and entrepreneurial development.is to be set up, consisting of two members designated by the Instituto da Comunicação Social, one of which will chair, one member named by the associations representing journalistic companies and one member named by the associations representing radio broadcasting companies.
2 - It is the accompanying committee's responsibility to:
a) Propose the regulations for the applicant investment projects, bearing in mind the criteria referred to in nos. 1 to 3 of article 38.;
b) Make declarations about the situations referred to in nos. 3 and 4 of article 35.;
c) Make declarations about the innovative content of applicant investment projects, for the purposes of paragraph a) of no. 3 of article 22.;
d) Provide an opinion on any changes to the approved projects, in order to qualify the decision mentioned in no. 2 of article 34.;
e) Provide an opinion, for the same purposes, on the possibility of the alienation or encumbrance of any of the tangible assets or equipment included in the approved projects, before the deadline in no. 5 of article 34.;
f) Accompany the execution of the benefited investment projects and carry out the final examination of the same.
Article 26.
Economic and financial viability of the projects
1 - The analysis of the economic-financial viability of the investment projects applying for incentives for innovation and entrepreneurial development is the responsibility of the Instituto da Comunicação Social.
2 - Projects which do not obtain a favourable opinion according to the previous number will be excluded by the accompanying committee mentioned in article 25.
Article 27.
Payment
1 - The payment referring to incentives for innovation and entrepreneurial development proceeds according to the phasing proposed in the approved project and according to the respective execution.
2 - The beneficiary may request an advance payment of up to 70% of the amount of the granted incentive, by means of presentation of an independent bank guarantee issued by a credit institution with its headquarters or a permanent branch in Portugal.
3 - Without prejudice to the provisions of the previous number, all payments referring to incentives for innovation and entrepreneurial development are dependent on presentation of documents proving the expenditure.
4 - Payment of the last 20% of the amount of incentive granted depends on the favourable opinion of the accompanying committee, made after the beneficiary presents a report that the project was executed correctly, certified by a Certified Public Accountant.
SECTION IV
Incentive for the training and qualification of human resources
Article 28.
Characterisation
Organisations mentioned in paragraph d) of no. 1 of article 3. that encourage courses of training and qualification of human resources in the areas of mass media and organisation and management of companies in the sector, may apply for incentives involving non-reimbursable grants to pay part of the costs.
Article 29.
Evaluation of the projects
The Institute of Employment and Professional Training will issue a prior opinion on the program and the costs of the training and qualification courses that are the object of applications for incentives, as well as on the curricula of the respective trainers.
SECTION V
Incentive for the publication of works on the Mass Media
Article 30.
Characterisation
1 - Incentive for the publication of works on the mass media involves partial non-reimbursable payment of publishing expenses.
2 - It is the responsibility of the member of the Government responsible for the area of mass media to annually stipulate the overall amount to be provided for the incentive, as well as the maximum amount to be granted for each incentive.
Article 31.
Specific conditions of access
Authors or publishers of investigations, Higher Education theses, essays and minutes of congresses, seminars and meetings on mass media subjects may apply for incentives for the publication of works on the mass media.
Article 32.
Selection and grading of the applications
1 - The member of the Government responsible for the area of mass media will nominate in January of each year a jury made up of three specialists of recognised competence in the areas of mass media and journalism.
2 - It is the responsibility of the jury mentioned in the previous number to rate the relative value of applicants publications, weighing up their scientific merit and the interest in their being publishing, and submit the graded list of the works recommended for publication to the member of the Government responsible for the area of mass media in March and September of each year.
3 - The jury will deliberate on the works for which the application process was duly prepared within the six-month period preceding it, and is extendible to those postponed because of lack of funds at the time of the deliberation immediately preceding it.
4 - The members of the jury are subject to the restrictions mentioned in article 44. of the Código do Procedimento Administrativo (Code of Administrative Procedures).
SECTION VI
Specific Incentives
Article 33.
Characterisation
The organisations mentioned in no. 1 of article 3. may apply for specific incentives aimed at contributing to the pursuit of activities or concretisation of initiatives of relevant interest to the area of mass media, such as the organisation of congresses and seminars, the award of journalism prizes, co-operation with other Portuguese speaking peoples, and other duly justified initiatives.
SECTION VII
Common Clauses
Article 34.
Obligations of beneficiaries
1 - It is the obligation of the beneficiaries of the incentives covered by this chapter to fully execute the projects in the exact terms of the approved application.
2 - Beneficiaries of the incentives covered by this chapter may make a duly justified request for authorisation from the member of the Government responsible for the area of mass media for any changes to the approved project.
3 - Beneficiaries of the incentives referred to in sections I and II of this chapter are obliged to present all documental proof of the actual application of the funds granted under the stipulated conditions, before the 31st of December of the year the incentive is granted, except in cases of postponement for justifiable reasons, granted by the member of the Government responsible for the area of Mass Media.
4 - The same beneficiaries may not partially or wholly sell, lease, alienate or encumber the various tangible assets or any equipment included in the approved projects, for at least two years from the date the incentive was granted and should guarantee, for the same period of time, its connection to the mass media organisations that justified the granting of the incentive, except in clearly justified cases when there is explicit authorisation from the member of the Government responsible for the area of Mass Media.
5 - The provisions of the previous number apply to the incentive for innovation and entrepreneurial development during the three years following the date of the conclusion of the project.
6 - Publications that benefit from the incentive mentioned in section V of this chapter should mention the Instituto da Comunicação Social as their sponsor.
7 - 100 copies of each one of the publications referred to in the previous number revert to the Instituto da Comunicação Social, a part of which is designed for distribution among public libraries or universities in Portugal and throughout Portuguese speaking countries and territories, as well as throughout Portuguese cultural centres abroad.
8 - Beneficiaries of incentives for the publication of works on the mass media are subject to the applicable legal obligations, as well as to any future special conditions stipulated by the member of the Government responsible for the area of Mass Media in the administrative rule granting the incentive.
Article 35.
Investments covered
1 - The incentives referred to in sections I to III of this chapter only cover equipment, computer programs or other tangible assets to be acquired or carried out at a date subsequent to application, except for the provisions of the following numbers.
2 - Incentives for technological modernisation and the creation of Internet content may include computer equipment and computer programs acquired during the 12 or 6 months respectively prior to the date of application, in situations that are duly justified and recognised by the member of the Government responsible for the area of mass media, and on issue of an opinion by the Instituto da Comunicação Social.
3 - The incentive for innovation and entrepreneurial development may also cover investments made in the six months prior to the date application is presented, in the conditions envisaged in the previous number, by means of the issue of an opinion by the accompanying committee mentioned in article 25.
4 - The incentives referred to in the present article do not cover the acquisition of second hand equipment and computer programs, except in duly justified situations from the technical and financial point of view at the time of the application, which should follow the envisaged formalities according to each case, in nos. 2 and 3.
Article 36.
Exclusion
Organisations that have already benefited from another national or regional incentive system for the same project may not apply for the incentives covered by sections I and II of this chapter.
Article 37.
Presentation of applications
1 - Applications for the incentives referred to in sections I and III of this chapter should be made during the month of March of each year, according to the stipulations in the administrative ruling mentioned in no. 2 of article 4.
2 - The incentive mentioned in section V of this chapter can be requested in two six-monthly periods, which end in January and July of each year, according to the stipulations in the administrative ruling indicated in the previous number.
Article 38.
Selection and grading of applicants
1 - Once the general and specific entry conditions have been fulfilled, applicants for the incentives covered in sections I and III of this chapter are selected in accordance with criteria to be stipulated in the administrative ruling from the member of the Government responsible for the area of mass media.
2 - The administrative ruling referred to in the previous number will establish the order of priorities to be considered, bearing in mind in particular the appropriateness of the project presented to the overall needs of the organisations applying; the absence of lucrative aims and the public utility of the latter; the incentives that they have benefited from during the immediately preceding years, either individually or collectively; the number of IT workers involved; the rate of development of the municipalities involved; and the respective competitive conditions, and, when applicable, the publishing frequency of the publications in question.
3 - In the case of the incentive for innovation and entrepreneurial development, the criteria for the establishment of priorities will be based namely on encouraging innovation and competitiveness of the projects in the market in which they are situated, on the soundness of the financial structure presented and on the net creation of jobs.
CHAPTER IV
Penalties
Article 39.
Civil and criminal liability
1 - General principles are observed in determining the manner of enforcing civil liability arising from infractions of the provisions of this decree-law.
2 - Acts or behaviour that are detrimental to interests that are protected by law, particularly the application of funds received as direct incentives for aims other than those for which they were granted and giving false information or incorrect data that induces an error as to the right to the incentive or the amount to be granted, are punishable according to criminal law.
Article 40.
Breaches
1 -The following constitute breaches and are actionable by fines of:
a) Between 100 000$00 and 1,000,000$00, for non-compliance of the provisions of nos. 2, 3 and 4 of article 14., nos. 3, 6, 7 and 8 of article 34. and no. 4 of article 35.;
b) Between 1,000,000$00 and 9,000,000$00, for non-compliance of the provisions of no. 1 of article 14., misuse of postage paid according to article 15. and breach of the provisions of nos.1, 2, 4 and 5 of article 34.
2 - If the violator is a single individual the fines are cut to one third.
3 - Negligence is punishable.
Article 41.
Additional penalty
Breaches may furthermore incur the additional penalty of withdrawal of the right to the incentive for a period of up to two years.
Article 42.
Responsibility in the matter of breaches
1 - The Instituto da Comunicação Social is responsible for processing the breaches covered in this decree.
2 - The enforcement of fines and additional penalties is the responsibility of the Chairman of the Instituto da Comunicação Social.
3 - 60% of the revenue from fines reverts to the State and 40% to the Instituto da Comunicação Social.
Article 43.
Reimbursement of amounts
1 - Carrying out a breach that directly produces an increase in the business results of the agent determines a conviction obliging restitution of the amounts received.
2 - Whenever relevant, calculation of the amount to be refunded will take into consideration any devaluation of the equipment, based on a useful life of three years, counting from the date stipulated for presentation of proof until that at which the non-compliance began.
3 - In the absence of a voluntary refund within a period of 30 days from the date of notification, it will be necessary to carry out forced collection according to the Tax Proceedings Code (Código de Processo Tributário).
4 - Interest at the legal rate will be due from the day after the end of the deadline for the refund mentioned in the previous number.
CHAPTER V
Inspection
Article 44.
Responsibility
Inspection of the application of the incentives granted in accordance with this decree-law, as well as that of the information provided by the beneficiary organisations with a view to obtaining the same, is the responsibility of the Instituto da Comunicação Social.
Article 45.
Scope
1 - Any of the organisations that are beneficiaries from the State incentive system for mass media may be the object of the inspection referred to in the previous article.
2 - Organisations that are beneficiaries of the incentives covered by this decree-law should provide all the items that are requested of them by the organisations who are responsible for accompaniment, control and inspection, as well as facilitate access by the inspectors to the respective premises, equipment, accounts and other items necessary for conducting their business. In the case of refusal it will be presumed that there is non-compliance with the legal conditions on which the granting of the incentive is based.
CHAPTER VI
Final and transitory clauses
Article 46.
Entry in force of the postage paid system
1 - The postage paid system covered in this decree-law comes into force on the 1st of March of 2001, except for the provisions of the following article.
2 - 28th of February 2001 is the expiry date for the postage paid beneficiary cards issued or to be issued in accordance with Decree-Law no. 37-A/97, of the 31st of January, modified, by ratification by Law no. 21/97, of 27th of June, by Decree-Law no. 136/99, of the 22nd of April, and by Decree-Law no. 105/2000, of the 9th of June.
3 - The validity of cards for beneficiaries of postage paid issued in accordance with the Decree-Law referred to in no. 2 that expired at an earlier date will be extended until the 28th of February 2001.
Article 47.
Transitory postage paid system
1 - In the cases referred to in nos. 1 of article 6 and 3 and 5 of article 7, State subsidisation of the postal costs for periodical publications for subscribers resident abroad is 98% until the 31st of December 2001.
2 - In cases of postal costs to subscribers resident in Portugal, the following subsidies are in force until the date mentioned in the previous number:
a) 90%, in the cases mentioned in nos. 2 of article 6 and 3 and 5 of article 7.;
b) 80%, in the cases mentioned in no. 5 of article 6.
Article 48.
Cover of charges
1 - The charges resulting from the application of this decree are annually recorded in the budget of the Instituto da Comunicação Social.
2 -The annual budget share relating to the incentive for technological modernisation will be shared among organisations that are owners or publishers of periodical publications and radio broadcasting companies, by official communication from the member of the Government responsible for the Mass Media, under proposal by the Instituto da Comunicação Social, once the number of applicants and the amount applied for has been weighed up.
3 - Of the funds referred to in no. 1., 3% is consigned to covering the charges resulting from inspection of compliance with the legislation applicable to the mass media, including studies and the issue of opinions.
Article 49.
Revocal rule
Decree-Law no. 37-A/97, of the 31st of January, modified, by ratification, by Law no. 21/97, of 27th of June, by Decree-Law no. 136/99, of 22nd April, and by Decree-Law no. 105/2000, of 9th of June, is hereby revoked, and the postage paid system stipulated therein is maintained until the date established in no. 1 of article 46.
Seen and approved in Cabinet meeting on the 18th of January 2001. - António Manuel de Oliveira Guterres - Jaime José Matos da Gama - Jorge Paulo Sacadura Almeida Coelho - Guilherme d' Oliveira Martins - Henrique Nuno Pires Severiano Teixeira - Fernando Manuel dos Santos Vigário Pacheco - Eduardo Luís Barreto Ferro Rodrigues - Mário Cristina de Sousa - José Estêvão Cangarato Sasportes - José Mariano Rebelo Pires Gago.
Enacted on the 31st of January 2001.
It is hereby published.
The President of the Republic, Jorge Sampaio.
Countersigned on the 7th of February 2001.
The Prime-Minister, António Manuel de Oliveira Guterres.
