(1) This present Act shall apply to the radio and television transmission and associated broadcasting of programs.

(2) If it is so provided in a separate international convention, this Act shall also apply to broadcasters outside Hungary.

1. Transmission time shall mean the total of broadcasting time and the time used for broadcasting information other than programme items. Information not qualifying as programme items include the standard frequency signal, monoscope, programme signal, interval signal, time announcement, any communication by the announcer not related to programme items and also the interruption of programmes due to technical malfunction.

2. Basic service shall mean the broadcast services provided to subscribers paying the lowest subscription fees within the programme transmission system.

3. Qualifying holding of shares shall mean

a) direct and indirect holding of interests in an enterprise the total of which ensures control in excess of 25 percent of ownership or voting rights, irrespective of the citizenship or registered office of the owner;

b) a situation that, based on power provided by the founding document (Articles) or by share holding of priority rights, facilitates significant control over the enterprise in terms of the appointment (removal) of the decision maker or members of the supervisory bodies or by other means.

4. Hidden advertising shall mean a programme item or programme announcement which, in the disguise of neutral information, encourages the purchasing of a product or using of a service or acting in accordance with any other commercial conduct.

5. Value added service shall mean the distribution of programs and information not related to the broadcasting of programmes.

6. Feature production shall mean the production of any feature film, television film, television play, television serial or series, documentary, popular scientific feature or animated film.

7. Prime broadcast time shall mean the period between 6.30 am and 9.30 am on the radio and 18.30 and 21.30 on television.

8. Networking shall mean the connection of two or more broadcasters to broadcast the same programme simultaneously or near-simultaneously.

9. Network broadcaster shall mean the broadcaster whose programme or programme item is distributed through a network transmission, and who is responsible for the broadcasting.

10. Local broadcast shall mean broadcasting, the signal area of which covers a maximum of one hundred thousand residents or within a city of maximum five hundred thousand residents as an annual average population.

11. Charity announcement shall mean a programme item or part thereof released in a programme without financial or any other consideration which solicits assistance for a natural person, a group of natural persons or a group of non-governmental organisation, foundations, etc. established for the purpose of assisting such persons or groups.

12. On-screen signal shall mean any text, stationary picture or computer graphics broadcast before or after the television broadcasting time or in between programme items but not as part of the programme.

13. Supplementary broadcasting shall mean additional information closely related to broadcasting transmitted concurrently with radio or television broadcast signals on the same distribution or transmission channel, by means of an ancillary technical device.

14. Conventional advertising shall mean any advertisement that does not qualify as a direct offer advertisement.

15. Regional broadcasting shall mean broadcasting within a signal area wider than the local broadcasting area, but covering less than half of the country’s population.

16. Public announcement shall mean

a) a programme item serving the purpose of catching the attention of the public in the interest of some cause, published at the request of, and contents specified by, a natural person or an organisation performing central or local governmental tasks.

b) a programme item published for purposes other than the promotion of political interests which solicits support for some cause in the interest of the public, promotes such events or cause, or warns the public of factors endangering the realisation of such a cause.

17. Public broadcaster shall mean the broadcaster, providing mainly public service programme items in his broadcast, regulated by his own broadcasting code approved by the National Radio and Television Commission

18. Public service programme shall mean a programme of which public service programme items constitute a determining part, and which informs listeners or viewers within the signal area of the broadcaster on issues of public interest.

19. Public service programme item shall mean a programme item serving the information, cultural, civil and lifestyle needs and demands of listeners or viewers within the broadcaster’s signal (national, regional, local) area, in particular

a) a work of art featuring universal, Hungarian, national and ethnic minority cultural values, or a communication illustrating the life of nations and ethnic minorities living within Hungary as well as information presenting the views of minorities,

b) conveying information for educational or training purposes,

c) informative broadcast on scientific activities and achievements,

d) aimed at the realisation of freedom of religious persuasion and beliefs and also programme items demonstrating Church and religious activities,

e) programme items for the child and the young

f) dissemination of information helpful in everyday life, providing assistance to citizens in legal and public matters, or promoting issues of healthy lifestyle, environmental protection or road safety.

g) programme items produced for the benefit of groups of individuals seriously disadvantaged due to their age, physical or mental conditions or social situation,

h) news broadcasting.

20. Public service broadcaster shall mean the broadcaster operating under the regulation of public service broadcasting code, with a primary responsibility of which is the regular broadcasting of public service programme, who is basically maintained on funds of public money, under social supervision and whose basic rights and duties are laid down in this present Act.

21. Indirect ownership shall mean the holding of equity or exercising of voting rights in one enterprise (hereinafter: the primary enterprise) through the equity or votes or a sequence of thereof, one or more enterprises (hereinafter: secondary enterprises). If the rate of the equity held and of voting rights are different, the larger rate of the two shall be considered as the prevailing rate of ownership. For the purpose of calculating the extent of indirect ownership, the prevailing rate of ownership in the secondary enterprise shall be multiplied by the secondary enterprise’s prevailing rate of direct ownership in the primary enterprise. If the natural person or legal entity holds a majority of shares in the secondary enterprise, then the direct holding shall be multiplied by one. In the case of a natural person holding equity or voting rights, his rate of ownership shall include all the shares and voting rights held by his close relatives (as laid down in [b] of Section 685. of the Civil Code).

22. Direct offer advertisement shall mean an advertisement soliciting to purchase, sell or lease products or use services by means of directly contacting the commercial distributor or service provider.

23. Cross-border broadcasting shall mean the non-satellite broadcasting the targeted signal area of which, as defined by the technical specification of the broadcasting channels used for its dissemination, is mostly outside the territory of the Republic of Hungary, as well as Hungarian satellite broadcasting with signal areas outside Hungary.

24. Broadcasting in Hungary shall mean the broadcasting

a) the broadcaster of which is a natural person resident in Hungary or by a legal entity or economic association without a legal personality with a registered office in Hungary, or

b) the distribution equipment or network designed for transmitting the programme has been installed within the boundaries of the Hungarian Republic.

However, un-altered concurrent broadcasting originating from outside the Hungarian Republic, shall not qualify as broadcasting in Hungary.

25. Programme shall mean the edited and publicly released sequence of radio or television programme items.

26. Dissemination of signals shall mean the concurrent and un-altered transmission of signals generated by the broadcaster to the receiver equipment of eligible users, through cable networks or non-programme broadcasting radio telecommunication systems from the broadcaster’s operating plant, or from the broadcaster’s program dissemination terminal points, or by means of employing a separate transmitting organisation, but excluding networks with a capability of serving less than 10 connected receivers. A cable network within the boundaries of one single land property (e.g. jointly owned block of flats) shall not qualify as dissemination of signals.

27. Broadcasting time shall mean the total time of programme items released in the programme during a specified period of time.

28. Programme item shall mean any sound or image, or the combination thereof representing a whole unit or edited to form a whole unit from separate components, limited by the main title or credits referring to the whole of the assembly, other distinguishing announcements if and as necessary, and a clear marking of its end.

29. Distribution of signals shall mean the unaltered and simultaneous transmission of signals generated by the broadcaster to the radio and television transmitter stations or disseminating networks through a cable network, surface antennae, or non-programme broadcasting satellite radio telecommunication system.

30. Broadcasting shall mean the regular provision, to anyone operating an appropriate receiving equipment, of radio or television programs with a permanent designation, on the specified and publicly disclosed channel of any programme distributor, at transmission times published in advance.

31. Broadcaster shall mean the enterprise licensed under the provisions of this present Act, editing the sequence of programme items or selecting programme items to be broadcast within the programme.

32. Transmission shall mean a one-way radio telecommunication procedure for the transmitting of sound, images and other signals via surface or satellite systems targeted at a theoretically unlimited number of users in the possession of an appropriate receiver.

33. Programme distribution shall mean the simultaneous and unaltered forwarding of signals generated by the broadcaster through electronic means (by ways of transmission or signal dissemination) to the user’s receiving equipment.

34. Non-profit oriented broadcaster shall mean the broadcaster who undertakes to promote the causes of national, ethnic or other minority interests, interests of groups in a disadvantaged position, or intend to serve as a forum of a residential or local community - provided that he recycles any (separately disclosed and accounted) profits generated by his broadcasting activity into the continuation and development of his broadcasting activity.

35. National interest representation organ or professional body shall mean the representative or professional body established under the provisions of Act No. 2 of 1989. the nationwide operation of which can be demonstrated in its foundation documents.

36. National broadcasting shall mean broadcasting over an area that covers at least fifty percent of the country’s entire population.

37. Periodicals of national circulation shall mean the daily paper whose daily net circulation reaches a minimum of one thousand copies each in at least ten counties or at least forty thousand copies in Budapest, or the weekly paper whose weekly net circulation reaches a minimum of five hundred copies each in at least ten counties or at least thirty thousand copies in Budapest.

38. Composite programme item shall mean an assembly of several programme items under the same main title.

39. Political advertisement shall mean a programme item which a party or political movement

a) asks for, or exerts influence to, support the participation or its candidate’s success in an election or to initiate the calling of a referendum,

b) promotes its name, activity, objectives, slogan, logo or its public image.

40. Subliminal advertising shall mean advertising, which, due to the short duration or any other reason, exerts influence upon exposure on the viewer or listener by means of a sound or light stimulus that is considered below the threshold of stimulus necessary for psychologically conscious perception.

41. Advertisement (commercial) shall mean any programme item disclosing information to the public, or broadcasting time made available for such purpose, which for a fee or other consideration, which promotes the sale or use of the specified or illustrated goods (product, service, real estate property, right or obligation) available for a price or consideration, or assists in making any other impact according to the desire of the advertiser.

42. Internally produced programme item shall mean a programme item produced, in majority, by

a) a natural person who is engaged by the broadcaster in a legal relationship of employment, or

b) a natural person who is resident in Hungary, a legal entity or an economic association without a legal personality with a registered head office in Hungary - at the expense of the broadcaster, hence the legal proprietary rights associated with the new program thus created belong to the broadcaster.

43. Specialised broadcasting shall mean broadcasting in the programme of which at least eighty percent of the daily broadcasting time is featuring programme items of the same kind as specified by the broadcaster in his application or undertaken in his registration.

44. Sponsorship shall mean any contribution of financial or other nature made available to the broadcaster towards the production or publication of a programme item (which does not qualify as an advertisement) with the aim of promoting the name, trademark, logo or other distinguishing mark or image of the sponsor or of a third party specified by the sponsor.

45. Enterprise shall mean, regardless of its profitability, the activity and ownership position, under the provisions of this present Act, of a natural person, legal entity or economic association without a legal personality.

46. Cable transmitter shall mean a signal disseminator who performs his activity by means of a closed network of telecommunication circuits.

47. Signal area shall mean

b) in the case of broadcasting through a cable transmission system, the inhabited area in which a cable network is installed and where the residents of the area can be connected to the trunk cable for a fee applicable in the locality of the area;

c) in the case of broadcasting through a wireless radio signal dissemination system, the geographically defined area where the level of useful signals emitted by the transmission service forwarding the programme as well as the calculated level of interference protection reach the minimum value necessary for acceptable quality reception in the relevant broadcasting agreement,

d) in the case of networked programme distribution systems, the totality of the signal areas of the individual distribution systems.

48. Music programme item shall mean a programme item composed of music pieces protected under the copyright provisions.

(1) Within the limits of the law, broadcasting can be exercised freely, information and opinions can be distributed freely through broadcasting, Hungarian and foreign programmes intended for public reception can be received freely within the Republic of Hungary. Within the constraints of the law, broadcasters are free to decide on the contents of the broadcast and can be held liable for such broadcast.

(2) The broadcaster must observe and honour the constitutional order of the Republic of Hungary, his activity may not offend human rights and must not be instrumental to the rise of hatred against individuals, sexes, populations, nations, or ethnic, linguistic or other minorities or against churches or groups of a religious persuasion.

(3) Broadcasting must not be intended to offend or prejudice, explicitly or indirectly, any minority or majority or to present or prejudice minorities or majorities based on racial criteria.

(1) Information provided about domestic or foreign events, affairs and controversial issues that are of public interest, must be versatile, factual, up to date, objective and balanced.

(2) The totality of the programme items presented to the public in the broadcast or any group of such programme items by content or nature shall not be in the service of any party or political movement or the views thereof.

(3) The broadcaster’s commentators, newscasters, reporters regularly appearing in the political informative and news programme items, regardless of the legal relationship of their employment, may not attach their comments or evaluating explanations - except news commentary - within the broadcaster’s framework of activity.

(4) The origin of any opinion or evaluating comment expressed in the programme relating to a news item must be disclosed together with its nature and author, clearly distinguished from the news item itself.

Section 5.

(1) Prior to the broadcasting of visual or sound effects which are offensive to persuasion of religion or faith, violent or conductive to disturbing effect in any other way as well as to the broadcasting of any programme items the content of which may be harmful to the personality, mental or physical development of minors, the audience must be warned of this fact.

(2) Any programme intended or suitable for education in matters of religion or faith may only be broadcast after the such nature of the programme item is disclosed.

(3) In a programme item intended for minors, no images or sound depicting violence as an example to be followed shall be broadcast.

(4) Program items that are harmful to the personality development of minors, in particular depicting the self-justified application of violence as an image of conduct may only be presented to the public between 23.00 and 5.00 am. Prior to broadcasting of such programme items, the public must be warned of the fact.

(1) National and regional television stations shall have such programs amounting to at least ten percent, later, from the 1^st January, 1999 at least fifteen percent of their annual broadcasting time, or such programmes purchased for the equivalent of at least eight percent, later, from 1^st January, 1999 at least twelve percent of their annual expenditure - as defined under Section 15 Paragraph (7) of Act No. 18 of 1991 on Finance and Accountancy, that were commissioned from a producer or were produced by an external enterprise either on the specific commission of the broadcaster , or purchased from the said enterprise as a programme item created not longer than five years.

In this enterprise the purchasing broadcaster may not have direct or indirect holding of ownership, and nor may a manager, executive officer or close relative thereof - as is laid down under Section 685. b) of the Civil Code - hold an interest in the enterprise or be employed by the enterprise. The such acquired programme items must be Hungarian produced items.

(2) Programmes shown under networking shall be taken into consideration for the purposes of the requirements set forth in Paragraph (1) only in respect of the network broadcaster.

(3) Hungarian produced programme items shall comprise at least fifteen percent, later twenty percent from 1^st January, 1999 of the annual broadcasting time - net of feature films, advertisements, news, live coverage of sporting events, quiz and game shows - of national and regional television broadcasting.

(1) The national and regional broadcaster, with the exception of the specialised broadcaster, must provide public service programme items for at least ten percent of the total broadcasting time.

(2) Public service programme items of at least twenty-five minutes duration must be broadcast in prime time. If the broadcaster does not transmit any programme at prime time, he must broadcast public service programme items of at least twenty-five minutes duration between 7.00 and 18.30.

(3) At prime broadcasting times, the national television must broadcast a separate and uninterrupted news programme of at least twenty minutes duration, the national radio of at least fifteen minutes. News items taken over from other broadcasters may not exceed twenty percent of the total of the news programme.

(4) Surface antenna broadcasting national television station may not operate as a specialised broadcaster.

(1) If a broadcaster covers any event - that is otherwise accessible for the public - under an exclusive contract, another broadcaster may publish in his programme or news coverage concurrently with or after the exclusive contract a part of the broadcast (programme item) to an extent not exceeding the free use of copyright items in the radio or television as provided by the copyright law.

(2) Publication of the part of the broadcast coverage of the event is in compliance with the needs of the programme or news if it does not exceed ten percent of the exclusive broadcast (programme item) or fifty seconds’ duration.

(1) With the exception of intentional deception, broadcasters shall have no responsibility under the provisions of this present Act for the claims made in an advertisement.

(2) No persuasion of conscience or faith shall be broadcast in the form of advertising.

(3) No advertisement shall be placed directly preceding or directly following the broadcast of a programme item about the events of national holidays or religious or church ceremonies.

(4) Neither the voice or the image of persons announcing news or regularly appearing in current political affairs programmes shall be featured in a commercial or political advertising.

(5) Indirect or subliminal advertising shall not be broadcast.

(1) During election campaigns the publication of political advertisements in broadcasting shall be governed by the provisions of the relevant Acts on the election of Members of Parliament, members and mayors of local government Corporations, on the election of minority self-governments and social insurance self-governments. Outside election campaigns, political advertisements may be broadcast exclusively in connection with a previously announced referendum.

(2) No political advertisements shall be published in cross-border broadcasting.

(1) The party commissioning the publication of the advertisement, public interest announcement, charity plea or political advertising, or any other party having an interest in the publication thereof, shall not influence the content of the programme item or its position within the programme - with the exception of the time-slot - in any way that would prejudice the broadcaster’s responsibility or freedom.

(2) The broadcaster shall not be held responsible for the contents of public interest announcements, charity plea or political advertisements under the provisions of this present Act.

(1) No advertisement promoting or providing information on tobacco products, weapons, fire-arms explosives, medicines exclusively obtainable on doctors’ prescription or medical treatments shall be broadcast.

(2) Advertisement promoting alcoholic drinks shall not

a) be targeted at minors and shall not depict a minor consuming alcoholic drinks,

b) encourage the consumption of alcohol to excess and shall not depict excessive alcohol consumption in a positive, or abstinence in a negative light,

c) imply the idea that consuming drinks of low alcohol content would, in itself, prevent excessive alcohol consumption,

d) claim that consuming alcoholic drinks has a beneficial effect on health,

e) be broadcast in prime broadcasting time, with the exception drinks of low alcohol content,

f) be published directly preceding or directly following the broadcast of programme items intended for minors.

(1) Advertisements shall not directly suggest to minors that they should encourage their parents or other adults to purchase toys, other goods or render services.

(2) The advertisement shall not be deceptive concerning the advertised toy’s true nature.

(3) Advertisements shall not depict children in a violent situation and shall not promote violent conduct.

(4) An advertisement targeted at minors shall not use the minors’ trust in parents or teachers as a mans of achieving its aim.

(1) Commercial advertisements, public interest announcements, charity pleas and political advertising shall be disclosed

a) specifying this nature of the programme item immediately preceding and directly following its broadcast, and also

b) clearly separated from other programme items by visual or acoustic means.

(2) The source of broadcasting public interest announcement or charity plea must be unambiguously identified. The broadcaster may not demand a consideration for the publication of a public interest announcement or a charity plea under the provision of Section 2 Paragraph (18) a) of this present Act.

(3) Duration of a public interest announcement may not exceed two minutes. This restriction does not apply to the public interest announcement specified in Section 137. of this present Act.

(1) Conventional advertising may not exceed fifteen percent of the daily broadcasting time. Advertising time may reach twenty percent if it also includes direct offer advertising.

(2) Within any one hour’s duration of the broadcasting time, conventional advertising may not exceed twelve minutes.

(3) The total duration of direct offer advertising may not exceed one hour per day.

(4) The above restrictions in Paragraph (1) and (3) do not apply to direct offer advertising broadcast between midnight and five o’ clock in the morning.

(5) The non-profit oriented broadcaster may not show more than three minutes of advertising per hour.

(6) Paragraphs (1) to (3) shall not apply to broadcasting specialised exclusively to the ordering of goods or services.

(7) Paragraphs (1) to (3) shall not apply to on-screen text broadcasting if its signal area does not exceed the local broadcast signal area.

(8) The national and regional television, with the exception of the broadcaster specialised on showing no feature films, is under obligation to use six percent of his advertising revenue for the creation of new Hungarian films. These, at least one half of it, could be feature films, documentary films, popular scientific films or animated films, and thirty percent shall be non-internally produced creation. This obligation may be met by means of paying in moneys to the account of a public foundation or state funds formed for the support of Hungarian film production unconditionally, with the exception of securing the screening rights. From this aspect, the paid in sums shall be taken into consideration with a multiplier of two.

(1) Advertisements may be published between programme items.

(2) Under the conditions specified in paragraphs (3) to (6), advertising may be placed within the programme item in such a manner that it will not offend the value of the programme item or the performing rights and copyright interests associated with the programme item.

(3) Advertising, within programme items composed of several parts, and within live coverage of sport and other events in which there are natural breaks, may be published between the component parts and the breaks.

(4) Advertising may not interrupt or shorten the programme item which

a) is a news or topical political programme item not exceeding thirty minutes in duration,

b) is directed to minors below the age of 14, and its duration does not exceed thirty minutes,

c) is covering the events of national holidays, or

e) is of religious nature.

(5) Time interval between the broadcast of advertisements or of a collection of advertisement placed within a programme item shall be not less than twenty minutes.

(6) Feature film productions longer than forty-five minutes may be interrupted by commercials once in every 45-minute period, subject to the permission of the copyright owner. If the total duration of the feature film is at least twenty minutes longer than twice or more times forty-five minutes, the film may be interrupted on one further occasion. At least twenty minutes of broadcasting time must elapse between such integrated commercials.

(1) The sponsor of a sponsored programme item must be identified immediately before or after the broadcasting.

(2) A sponsored programme item shall not encourage or influence to make use of, or refrain from using, the business services of the sponsor or of any third party specified by him.

(3) The sponsor shall not influence the content of the programme or the sponsored programme item or its position within the programme - with the exception of the time-slot - in any way that would prejudice the broadcaster’s responsibility or freedom.

(4) No programme item - with the exception of a programme preview - in which the trademark, distinguishing sign, logo or slogan of the sponsor appears, shall be published.

(5) No political news programme shall be sponsored.

(6) This Section, with the exception of Paragraph (5) shall not apply to broadcasting specialised exclusively in facilitating the direct ordering of goods or services.

(1) No programme item shall be sponsored by

a) political parties or political movements,

b) the enterprise producing, as its core activity, a product that may not be advertised under the provisions of this present Act, or who engage in the wholesale distribution of, or provide services related to, such products. This prohibition does not apply to the sponsoring tied to the publishing of the name and trademark of the enterprise associated with a medicine product or medical treatment.

(1) No licence shall be issued exclusively for supplementary broadcasting activities.

(2) Supplementary broadcasting shall be provided exclusively by licensed broadcasters.

(3) Intention to provide supplementary broadcasting shall be indicated in the broadcasting licence application, or communicated in the form of a notice, at a later date.

Section 21.

(1) Broadcasters are entitled to provide value added services.

(2) If a broadcaster fails to commence the provision of some possible value added service within one hundred and eighty days after the commencement of exercising his broadcasting rights (with the exception of satellite broadcasting), the programme distributor may lay claim thereto.

(3) The claim defined in Paragraph (2) can be enforced by the submission of a notice to the National Radio and Television Commission (hereinafter: Commission) and to the broadcaster within 180 days after the claim arises. After the expire of this deadline, the one, out of the broadcaster and the programme distributor, to be the first to announce his claim to this effect to the Commission, shall be entitled to provide the value added service. If neither the broadcaster nor the programme distributor wishes to provide the value added services, the broadcaster and the programme distributor may enter into an agreement with a third party telecommunications service provider for this purpose.

(4) Value added services may be started within 60 days following the notice and they shall be provided continuously in accordance with the content of the notice.

(5) The right to provide value added services shall expire together with the expire of broadcasting rights.

(1) Only broadcasters established under the provisions of this present Act may engage in public service broadcasting.

(2) The Commission may, upon application, declare a broadcaster public broadcaster if it undertakes to meet the obligations expected from public broadcasters.

(3) The Commission declares the broadcaster a public broadcaster by the fact of the broadcaster’s acceptance of the broadcasting code. The Commission shall promulgate the broadcasting code in Muvelodesi Kozlony (Official Publication of the Ministry of Culture and Education).

(4) Public service broadcasters and public broadcasters shall be exempt from the payment of broadcasting fee.

(1) It will be the duty of the public broadcaster and of the public service broadcaster to respect the dignity and other interests of the nation, national, ethnic, linguistic and other minorities, and not to offend the dignity of other nations.

(2) The public broadcaster and public service broadcaster shall regularly provide comprehensive information objectively, in a balanced accurate and factual manner, on domestic and international events deserving public interest, also on any event, interrelations, controversial issues, opinion, including diverse views on events, that may have significant influence over the lives of citizens living within the broadcast’s signal area. In the course of performing these tasks, the broadcaster shall ensure the publication of public interest announcements specified in Section 137.

(3) The public broadcaster and the public service broadcaster shall ensure the representation of the diversity of programme items and views, including the presentation of minority views and shall provide for the satisfaction of the interest of a broad circle of, and the largest number of groups of, viewers at a high standard by means of a wide variety of programme items.

(4) The public broadcaster and the public service broadcaster shall pay special attention to

a) fostering the values of the universal and national cultural heritage, to the assertion of cultural diversity,

b) presenting programme items contributing towards the physical, mental and moral development of minors, to serving their interests and enrichment of their knowledge,

c) presenting the values of religious, national, ethnic or other minority cultures,

d) making information important for groups of severely disadvantaged individuals due to their age, physical, mental and social conditions accessible for them,

e) presenting programme items that reflect the social, economic and cultural life of different regions of the country.

(1) The public service broadcaster and the public broadcaster may not broadcast advertisements for the total duration in excess of six minutes within any one hour broadcasting time calculated in any manner. The total advertising time may not exceed four minutes per hour in the average of daily broadcasting time.

(2) The presentation of on-screen signals with advertising content shall constitute a part of the duration of advertising.

(3) Advertising in public service broadcast and public broadcast may be published exclusively in between programme items, or, in the case of composite programme items, in between programme components. In the case of coverage of sports or other events having natural breaks, advertising may be placed in between the parts and during the natural breaks.

(4) No alcoholic drinks or tobacco products shall be advertised in the programme of a public service broadcaster or a public broadcaster. No programme item of a public service broadcaster or a public broadcaster may be sponsored by an enterprise of which the main activity is production or distribution of alcoholic drinks or tobacco products.

(5) Persons regularly appearing in public service broadcast or in public broadcast as internal or external staff, irrespective of their employment status, shall not appear in commercial or political advertising at any broadcaster in sound or image.

(6) Programme items depicting the wanton use of violence as an example to be followed or depicting sexuality deprived of its human features shall not be published.

a) programme items of religious and church content,

b) programme items representing or covering of artistic or cultural events,

c) programme items in the mother tongue of national and ethnic minorities, or depicting the life and culture of national and ethnic minorities,

d) programme items produced for the benefit of groups of seriously disadvantaged individuals due to their age, physical, mental and social conditions.

(1) It is the duty of public service broadcaster to assist in fostering the culture and mother tongue of national and ethnic minorities living in Hungary, to provide information to those minorities in their mother tongue. The public service broadcaster shall fulfill this duty by means of broadcasting in national, or, taking the geographical distribution of the residential location of those minorities, regional or local broadcast with programme items responding to the needs of minorities, and on television through the use of subtitles or multilingual transmission, as required. The broadcasting time used for nationality and ethnic programme items, whether in national or regional totals, shall not be less than the respective times used at the time of this present Act coming into effect.

(2) The principles of using the available broadcasting times at the public service broadcaster for minorities programme items shall be determined autonomously by the self-governments of national and ethnic minorities - lacking of which, by their national organisations. The public service broadcaster must take their defined principles, that may not influence the content and programme editing into consideration.

Section 27.

(1) The public service broadcaster shall provide for the permanent safekeeping and maintenance of cultural values and documents of historic importance in his archives, he shall provide for collecting, filing and storing those at an adequate professional standard.

(2) The rules governing archiving and of the means to utilise archives shall be jointly determined by the Board of Trustees and the Commission in a separate regulation.

(1) Public service television, starting from the 1^st January, 1997 shall

a) compose at least fifty-one percent of its annual broadcasting time net of advertising, news, sports coverage, quiz and game shows, of Hungarian produced programme items and, including these, at least seventy percent of European produced programme items;

b) compose at least thirty percent of its broadcasting time, calculated at the average in any one calendar month, net of advertising, news, sports coverage, quiz and game shows, of Hungarian produced programme items and, including these, at least fifty-one percent of European produced programme items;

c) not less than fifteen percent, and, from 1^st January, 1999 twenty percent of the total annual broadcasting time used for screening feature films shall be composed of features produced by Hungarian citizens, or Hungarian nationals, or produced in association of Hungarian artists, or of Hungarian produced feature films, of which not less than twenty percent is new production and thirty percent is not Hungarian Television’s or Duna Television’s internally produced feature. These rates shall also apply to children’s and youth programme items;

d) compose at least ten percent, from the 1^st January, 1999 not less than fifteen percent of its annual broadcasting time net of advertising and sports coverage, of Hungarian, but not internally produced programme items.

(2) The rates specified in Paragraph (1) shall also apply at prime broadcasting times.

(3) Not less than thirty percent of the annual broadcasting time of the public service radio used for transmitting music programmes shall be composed of works created by authors or produced with the participation of performers who are Hungarians by citizenship or nationality, or of Hungarian produced programme items.

(4) The public service broadcaster shall comply with the obligations laid down in this Title in each and every broadcasting service it provides, respectively.

(1) It is the duty of the public service broadcaster to prepare its public service broadcasting code; of the public broadcaster to prepare his broadcasting code.

(2) The public service broadcasting code or the broadcasting code shall regulate the following:

a) the assurances for independence from political parties and neutrality of political movements,

b) the principles of a balanced and objective presentation of the news, current political affairs and controversial issues, also of the different opinions and diversity of views,

c) the professional criteria required for fostering the mother tongue culture,

d) the order of presenting the life and culture of national and ethnic minorities living within Hungary, with regards to Section 26 Paragraph (2) of this present Act,

e) the system of objective presentation of the diversity of cultural, scientific, religious views and beliefs,

f) the method of publishing programs to be marked with a distinguishing code,

g) the rules in relation to minors,

h) the advertising activity and sponsoring programme items,

I) the publishing of public interest announcements,

j) the assurance and extent of independence and responsibility of programme editors employed by public service broadcasters and public broadcasters, the assurance of their participation in the determination of programme editing principles whilst respecting the assertion of citizens’ rights to freedom of information,

k) the code of conduct and the rules of conflicting interests regarding the staff, in particular staff employed in political and news programme items,

l) the professional rules of programme production activity,

m) the general requirements of cross-border broadcasting and also broadcasting specified under Section 134. Paragraph (3) and the principles of the means to meet those requirements, and also of the covering of the planned signal area.

(3) The public service broadcasting code or the broadcasting code shall ensure that the appointment of external staff or commissions made by the public service broadcaster or the public broadcaster do not offer opportunity for unfair advantages for the employees of the public service broadcaster or public broadcaster.

(4) The draft public service broadcasting code shall be submitted for approval to the Board of Trustees of the Public Foundation, within nine months from the date this present Act comes into effect. The Board of Trustees may approve the draft in agreement with the Commission.

(1) Whilst the Hungarian Radio and Hungarian Television provide public service broadcast to the overall majority of the country’s population, Duna Television does so primarily to Hungarians living outside the borders of the Republic of Hungary.

(2) The service provided to the overall majority of the population shall mean, in the case of wireless radio broadcast, at least one transmission within the 87.5-108.0 MHz frequency band with a signal area receivable by not less than eighty percent of the population, in the case of television signals distributed through surface antennae, at least one transmission with a ninety percent signal area.

(1) The National Radio and Television Commission protects and promotes the freedom of speech by means of facilitating the broadcasters’ entering in the markets, by means of disassembling information monopolies and of preventing the development of new ones, by means of protecting the independence of broadcasters; and also by monitoring adherence to the constitutional principles of free press and by reporting its findings to Parliament.

(2) Members of the Commission are only governed by this present Act, and in the course of performing their duties, they may not be ordered otherwise.

(1) The Commission is an independent legal entity reporting directly to Parliament, managing its economic activities in accordance with the rules of law regulating the economic affairs of organs operating under the state budget. The Commission’ s financial budget shall be approved in a separate Parliamentary Act, charged to the sources specified in Section 77. Paragraph (3) of that Act, according to the framework of conditions laid down in Section 84. Paragraphs (2) and (3) of the same Act, based on the submission made by the relevant budgetary Parliamentary commission based on the Commission’s draft proposal. The Commission’s financial management shall be audited by the State Audit Office.

(2) The Commission shall, until the approval of its new financial budget, operate on the basis of its latest approved financial budget.

(3) The Commission’s registered head office shall be in Budapest.

(4) The Office of Commission shall be the Commission’s administrative organ.

(5) Subsequent to the expire of the term of appointment, the duration of appointment of a Member of the Commission shall be deemed as continuous employment status, or a public employment or civil service status, or service legal status, or, in Courts or Prosecutor’s Offices, term of service status.

(6) From the date of the Commission’s formation, the employer of a Member of the Commission shall allow, by request, the Member to take unpaid leave for the whole or part of the duration of his appointment as a Member. However, the unpaid leave shall, for the purpose of calculating the length of pensionable service, qualify as employment.

(7) A Member, who, prior to his election to the Commission, discontinued his former continuous employment status, public employment or civil service status, service legal status or, in Courts or Prosecutor’s Offices, his term of service status, in order to comply with the rules laid down in this present Act concerning the conflict of interests, shall be reinstated, upon his written application submitted within 30 days from the discontinuation of his appointment as a Member, to his former employment or legal status.

(8) In the case of a Member of the Commission, the national insurance rules applicable to employees shall apply in such a manner that his remuneration from the Commission shall serve as the base for national insurance and pension contributions. Payment and accounting of these contributions also the administration and filing thereof shall be regulated within the framework of the agreements made between the Office of the National Radio and Television Commission and the National Health Insurance Fund also between the Commission and the National Pension Assurance Board.

(9) Employees of the office are civil servants, hence the provisions of Act No 23 of 1992 on the legal status of civil servants (hereinafter: Civil Service Act) shall apply in their case, with the deviations laid down in this present Act. The head of the office shall be nominated and appointed by the Chairperson of the Commission, who will exercise the employer’s rights over his employment. The legal status of the head of the office is the equivalent to that of a deputy secretary of the state.

(10) The office may also employ external advisors on a contractual basis.

(1) The Commission is elected for a four-year term by a single majority of all Members of Parliament. The Chairperson and Members of the Commission may not be relieved.

(2) No less than five Members shall constitute the Commission.

(3) The Chairperson of the Commission shall be jointly nominated by the President of the Republic and the Prime Minister.

(4) The other Members of the Commission shall be nominated by the Parliamentary factions. Each Parliamentary factions shall nominate one Member. If on the side of the Government or of the Opposition there is only one parliamentary faction, that one faction shall be entitled to nominate two Members.

(5) Nominations of Commission Membership candidates shall be made within eight days from the commencement date of the Commission election procedures. The nominated candidates shall be interviewed - but not concluding in a vote - by the competent Parliamentary committee of cultural and press issues. It will not be necessary to interview a candidate again, who, having failed to be elected before, was re-nominated by a Parliamentary faction.

(6) The election of Members shall be held within fifteen days from the nominations. A new candidate shall be nominated to replace a candidate who failed to win the necessary votes, within fourteen days from the election. A candidate may not be nominated again if he failed to win at least ten percent of all members of Parliament.

(7) The Commission is considered to be formed when all its Members are elected. However, the Commission may be formed if any one of the Parliamentary factions fails to nominate its candidate within the deadline specified in Paragraph (5); and, if that Parliamentary faction wishes to, it may, exercise its nominating right after the formation of the Commission, and Parliament shall elect a Member based on this late nomination for the remaining term of the Office of the Commission.

(8) If a new Parliamentary faction is formed subsequent to the election of the Commission, Parliament shall elect a new Member, based on the nomination of this new faction, for the remaining term of the Office of the Commission.

(1) Only a person in the possession of a higher education degree, with no criminal record and with no less than five years’ professional experience may be nominated as a Member of the Commission. Professional experience mean the activities in particular, of information, programme editing and production, telecommunications, frequency management and also the technical, legal, administrative, economic, cultural scientific and public opinion polling activities associated therewith.

(2) He/she who is

a) the President of the Republic, the Prime Minister, a member of the Government, the Mayor of Budapest, a mayor, chairman or deputy chairman of a County Corporation of elected representatives, a Member of Parliament or his employee, a national or regional officer of a political party;

b) the head, member of the governing body, or manager, or anyone who has a legal status of appointment or employment with a broadcaster, programme distributor, press publisher or press distributor;

c) a broadcaster, programme distributor, press publisher, press distributor or anyone who has a direct or indirect interest held in such an enterprise;

d) a member of the Board of Trustees of, or an employee of, the Hungarian Radio Public Foundation, of Hungarian Television Public Foundation or of the Public Television Foundation ‘Hungaria’.

(3) A close relative - according to the term defined in Paragraph b) of Section 685. of the Civil Code - of a person specified under a)-c) of Paragraph (2), may not be a Member of the Commission.

(4) The candidate must make, prior to his election, a written statement, in which he declares that no conflict of interests exists in connection with the status he is seeking, or, that he undertakes, subject to his being elected, to terminate the interests that may give rise to conflict with his status.

(1) A Member of the Commission shall not

a) have a legal status which in effect entitles him to an appointment or employment with a broadcaster, programme distributor, press publisher or press distributor;

b) be the owner of the organ (member, share holder, member of its Commission of Directors or of its Supervisory Committee, manager, or also its auditor) specified in a), including the member of the administering organ of the foundation.

(2) A close relative - according to the term defined in Paragraph b) of Section 685. of the Civil Code - of a Member of the Commission shall not be the owner of the organ (member, share holder), specified in a) member of its Commission of Directors, Board of Trustees or of its Supervisory Committee, managing director, or also its auditor.

(3) The restrictions on conflict of interests specified in (1) and (2) shall also apply for the first six months subsequent to the discontinuation of the Membership status in the Commission.

(4) For the whole term of the broadcasting licence, the Member, for the first half of the licence term, the close relative - according to the term defined in Paragraph b) of Section 685. of the Civil Code - of the Member of the Commission, shall not establish such a legal status with the broadcaster receiving its broadcasting rights during the Member’s term of office, that could qualify as appointment or employment. In the case of a programme distributor the term of prohibition is four years for the Member and two years for his close relative, subsequent to the discontinuation of the membership status in the Commission.

(5) A Member of the Commission shall not be involved in party political activity, nor shall he make a party political statement.

(1) The Member of the Commission shall not disclose any state secret, service and business secret obtained in the course of performing his duties.

(2) Upon coming into his office, the Member of the Commission shall, in front of the Speaker of Parliament, take the oath the wording of which constitutes an Annex to this present Act.

(3) The Member of the Commission shall be under obligation to make a statement of his personal assets, at the time of his taking and of leaving office. These statements of personal assets shall be safely kept by the Speaker of Parliament.

(1) The office of a Member of the Commission shall come to an end

a) upon the expire of the Commission’s term,

b) upon his resignation,

c) upon the establishment of a conflict of interests,

d) through dismissal,

e) through expulsion,

f) upon losing the appointment,

g) upon the death of the Member,

h) upon the discontinuation of the nominating Parliamentary faction,

I) upon the termination of the Commission’s appointment (as specified in Section 45. Paragraph (1) Sub-paragraph c))

(3) If a conflict of interests arises in connection with a Member or the Chairperson of the Commission, and the cause of the rise of such conflict of interests is not eliminated within ten days after the cause was created, or after the date of the Commission Session establishing the existence of such conflict of interests, then the full Commission Session will declare, in the form of a Commission Resolution, that the Member’s or Chairperson’s office is terminated. From the time of adopting the Resolution, the Member or Chairperson of the Commission shall not exercise his authority associated with his office.

(4) The Member’s office shall be terminated by dismissal if the Member fails to fulfill his duties for an uninterrupted period of three months due to reasons beyond his control.

(5) The Member’s office shall be terminated by expulsion if

a) the Member fails to fulfil his duties due to reasons for which his responsibility can be established,

b) the Member’s culpability was established by a Ruling of a Court and the Member was given a prison sentence, in force.

(6) The investigating authority shall notify the Commission of any criminal proceedings in progress against a Member or the Chairperson of the Commission. For the time until proceedings are concluded the full Commission Session may suspend the subject of investigation, in the case of a Member, by a simple majority vote, in the case of the Chairperson, by a two-thirds majority vote.

(7) If a Parliamentary faction ceases to qualify for two nominees to the Commission, the faction must state, within fifteen days, which of the two Members elected concurrently shall continue his office as the faction’s nominee. If the Parliamentary faction fails to make the statement, the mandate of both concurrently elected Members shall be terminated, and the faction may exercise its nomination right again. If the two Members have won their mandate at different times, the mandate of the more recently elected Member shall be terminated.

(8) If the Commission Session is deliberating a motion on an issue of a conflict of interests or of expulsion of a Member, the Member in question may not cast his vote, and the unanimous vote of all Members entitled to vote shall be needed to reach a Resolution. If no unanimous conclusion is reached by the Commission, the Chairperson offers the motion to Parliament for decision. In this case, resolution on the conflict of interests, of dismissal or of expulsion lies with a two-thirds majority vote of Members of Parliament.

(9) In the case of such a motion is made against the Chairperson of the Commission in processes defined in Paragraphs (3), (6) and (8), the Member empowered - by the Commission’s procedural order - to exercise the Chairperson’s authority, shall proceed.

Section 38.

(1) If a Member’s term of office is terminated, nomination procedure shall start within eight days. Nomination for the new Member shall be made by the Parliamentary faction originally nominating the former Member whose seat is vacated.

(2) The term of the new Member’s appointment shall be the same as the residual period of the Commission’s term.

(1) Remuneration (fees and entitlements) of the Chairperson of the Commission shall be equivalent to those of a departmental minister, remuneration of a Member shall be equivalent to that of a permanent secretary. Members and the Chairperson shall also be entitled to forty working days’ annual holiday each.

(2) Subsequent to the expire of the Members’ and Chairperson’s term of office, the Members and Chairperson - if they are not re-elected - shall be entitled to their regular remuneration for an additional six months.

(3) A Member of the Commission, if relieved from his office due to health reasons, shall be entitled to a compensation, equivalent to six months’ usual remuneration, or to not more than the remuneration equivalent due for the term actually served from the election up to the relief.

(4) In the case of dismissal on the grounds of conflict of interests, or expulsion, the Member or Chairperson shall not be entitled to any compensation.

(1) The Commission shall determine its own procedural order and publish it in "Official Announcements of Hungary".

(2) The procedural order will include the matters related the Members’ and Chairperson’s activities not regulated in this present Act.

(3) If the Chairperson cannot, with apologies, attend the Commission Session, another Member shall carry out the Chairperson’s tasks, following the order of substitution laid down in the Commission’s procedural order.

(1) It will be the responsibility of the Commission to

a) fulfil the tasks of inviting tenders and evaluating tender bids for broadcasting rights and for satellite channels made available for broadcasting under the regulation of Governmental organs;

b) perform the supervisory and control tasks laid down in this present Act,

c) operate a Complaints Committee for examining individual notices,

d) operate a programme monitoring and analysis service; and to submit the studies and findings of this service to the concerned organs, namely to the Hungarian Radio Public Foundation, Hungarian Television Public Foundation, Public Television Foundation ‘Hungaria’ and to the public service broadcasters continuously and free of charges;

e) form and express opinion on the draft bills related to frequency management;

f) delegate a number - specified in a separate Act - of members to the National Telecommunications and Informatics Council;

g) fulfil the tasks associated with broadcasting contracts;

h) maintain official and public records on broadcasts and programme distribution operated pursuant to broadcasting contracts or registration respectively;

i) regularly monitor the compliance with broadcasting agreements made with the Commission;

j) draft position papers and recommendations on the conceptual issues of the development of Hungarian broadcasting system, including multi-channel cable television systems and the audio-visual context, also to participate in the decision-making concerning those;

k) initiate proceedings in consumer protection issues and against practices of unfair market competition;

l) provide the state administration the information necessary for planning of central budget and control the enforcement thereof;

m) determine and publish the broadcast fee(s) applicable to broadcasting by programme distribution and by satellite; and also to

n) perform its other tasks laid down in this present Act or in other statutes of law pursuant to the authorisation of this present Act.

(2) The Commission fulfils its task laid down in Paragraph (1), Sub-paragraph I) by means of receiving and recording of the programme, or examining the programme recorded by the broadcaster and also by means of authority inspection.

(1) The Commission, in the course of formulating its frequency management concept associated with broadcasting, shall take non-profit oriented broadcasting into consideration.

(2) The Commission shall publish its frequency management concept associated with broadcasting in Muvelodesi Kozlony.

(1) The Commission shall send a report on its operation in the previous year to Parliament by not later than 1^st March, every year. The report shall cover, in particular

a) whether the objectives of freedom of opinion, provision of balanced information are met,

b) the ownership position of broadcasters and of periodical and daily publications connected to broadcasters, as laid down in Chapter Eight of this present Act,

c) how frequency management meets the needs of broadcasting, and also

d) the economic situation and financial conditions of broadcasting, initiating possible changes in legislation if necessary.

(1) The Chairperson may not exercise his vote related to issues specified in Sections 45. and 46.

(2) The extent of the Chairperson’s vote can be expressed in a simple fraction the value of which is calculated by the following formulae:

a) if an equal number of Members are nominees of the governing and of the opposition Parliamentary factions, then the numerator shall be one and denominator shall be the number of Members plus one,

b) if not equal number of Members are nominees of the governing and of the opposition Parliamentary factions, then the numerator shall be one and denominator will be one plus twice the larger number of Members nominated by the governing or by the opposition parties.

(3) The extent of a Member’s vote can be expressed in a simple fraction the value of which is calculated by the following formulae:

a) if the Chairperson is entitled to exercise his vote, the extent of the total Chairperson’s vote shall be deducted from the total extent of the votes, then fifty percent of the residue shall be divided equally amongst the members nominated by the governing faction and the other fifty percent shall be divided equally amongst the members nominated by the opposition faction.

b) if the Chairperson is not entitled to cast his vote, then fifty percent of the votes shall be divided equally amongst the members nominated by the governing faction and the other fifty percent shall be divided equally amongst the members nominated by the opposition faction.

(4) The Commission shall, with the exception of the cases provided in Sections 45. and 46., bring its resolutions by a simple majority vote calculated by the formulae specified in Paragraphs (2) and (3).

(1) The procedure for adjudicating bids received in response of tender invitations for the national radio and television broadcasting licence shall be in the following manner:

a) in the first round of votes, the Chairperson is not entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

b) if the first round of votes is inconclusive, the Commission shall have a second vote not earlier than three days and not later than eight days after the first round. In this round, the Chairperson shall also be entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

c) if the vote specified in b) is also inconclusive, the Commission shall be dissolved - without the termination of the Chairman’s appointment. Within thirty days from the dismissal of the Commission, Parliament shall elect new Members according to the provisions laid down in Section 33. of this present Act, with the difference that Members of the previous Commission may not be nominated in the course of this election.

(2) The Commission elected as laid down in Paragraph (1) Sub-paragraph c) shall adjudicate the bids received, as follows:

a) in the first round of votes, the Chairperson is also entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

b) if the first round of votes is inconclusive, the Commission shall have a second vote not earlier than three days and not later than eight days after the first round. In this round, the Chairperson shall also be entitled to cast his vote. A two-thirds majority is required for the validity of a resolution. If the vote is still inconclusive, a new tender shall be invited within sixty days.

(1) The procedure for determining the general terms and conditions of tender, and the specific tender conditions and invitation for national and regional radio and television broadcasting licence and for adjudicating bids received in response to tender invitations for regional radio and television broadcasting licence shall be as follows:

a) in the first round of votes, the Chairperson is not entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

b) if the first round of votes is inconclusive, the Commission shall have a second vote not earlier than three days and not later than eight days after the first round. In this round, the Chairperson shall also be entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

c) if the second round of votes in a matter of general conditions or inviting a tender is inconclusive, the Commission shall have a third vote, not earlier than thirty days and not later than sixty days after the second round. In this round too, the Chairperson shall be entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

d) if the second round of votes on the adjudication of a bid for regional radio and regional television broadcasting licence is inconclusive, a new tender shall be invited within sixty days.

(2) The procedure for adjudicating tender bids for local radio and television broadcasting licence shall be as follows:

a) in the first round of votes, the Chairperson is entitled to cast his vote. A two-thirds majority is required for the validity of a resolution;

b) if the first round of votes is inconclusive, the Commission shall have a second vote not earlier than three days and not later than eight days after the first round. The Chairperson shall be entitled to cast his vote in this round too. A simple majority is required for the validity of a resolution

(3) If the adjudication of bids is inconclusive, a new tender shall be invited within sixty days.

(1) Complaints related to the violation of the criteria of providing balanced information as laid down in Section 4. of this present Act, shall be assessed by the Commission’s Complaints Committee (hereinafter: Complaints Committee).

(2) Members of the Complaints Committee are independent, subordinated only to the law, and, in the course of performing their duties, shall accept no orders from anyone.

(3) A person, who is a member of the Board of Trustees of the Hungarian Radio Public Foundation, of the Hungarian Television Public Foundation or of the Public Television Foundation ‘Hungaria’, nor a person who could not be elected as a Member of the Commission, may not be a member of the Complaints Committee. The detailed regulation of the Complaints Committee members’ function shall be included in the Commission’s Standing Procedures.

(4) Any member of the Complaints Committee shall, without delay, inform the Chairperson of the Commission about any cause of a conflict of interests. If criminal proceedings are in progress against a member of the Complaints Committee, the investigating authority shall inform the Commission to this effect.

(5) If a conflict of interests exists or a Court rules that a Member of the Complaints Committee was guilty of a wilful criminal offence the Commission shall terminate the position of such member of the Complaints Committee.

(1) Council composed of three members shall proceed in individual cases. One of this members of the proceeding Council shall be a person with a degree in law.

(2) The Standing Procedures of the Complaints Committee as well as the procedures of the Councils acting in individual cases, including the rules of expulsion of a proceeding member of the Complaints Committee on the grounds of impartiality, shall be defined by the Commission. In the course of this elaboration, the principles of equality of parties, transparency and neutrality shall be taken into consideration.

(3) The Standing Procedures of the Complaints Committee shall also include the rules of proceeding in cases of complaint not falling under Section 4. In such cases, the Complaints Committee studies the complaint and informs the complainant, the broadcaster, and the public if necessary, on the Committee’s views on the case.

(4) The administrative tasks of the Complaints Committee shall be carried out by the Commission’s Office.

(5) The Commission shall discuss and evaluate the decisions arrived at by the Complaints Committee at least once in every six months’ period.

(1) If a broadcaster provides one-sided information on social issues concerning the population of the signal area, especially if it only offers the opportunity to represent a single or one-sided view on the controversial issue, or if he seriously violates the fundamental principle of the provision of balanced information, then the representative of the undisclosed opinion or the injured party himself (hereinafter: the complainant) may raise an objection to the broadcaster.

(2) The complainant may, in writing, request the broadcaster to publish his opinion of the objected communication with conditions similar to those of the objected communication, within forty-eight hours, or, in the case of a complainant residing (staying or operating) outside the borders of the Republic of Hungary, eight days after the original publication, or in the case of a repeated publication, after the last showing of the objected communication.

(3) The Broadcaster shall make a decision to accept or reject the complaint, within forty-eight hours from the receipt of the complaint. The complainant shall be immediately informed on the decision. Within forty-eight hours of the receipt of such decision, or, in the absence of a decision within six days following the publication of the objected communication - twelve days in the case of a complainant staying abroad -, the complainant may lodge a complaint in writing with the Complaints Committee with accurate identification of the broadcaster and the programme item representing the objected view. A complaint may also be lodged with the Complaints Committee if the broadcaster fails to act upon the complaint in spite of his statement accepting the case for complaint. In this case, the complaint shall be lodged with the Complaints Committee within forty-eight hours following the expiration of the time undertaken for acting upon the complaint.

(4) The Complaints Committee shall decide upon the issues submitted by the complainant within fifteen days after the complaint is lodged.

(5) At the request of the Complaints Committee, the broadcaster shall make available to the Complaints Committee the recording of the disputed programme item and any related information requested without delay.

(6) The Complaints Committee may hear both the broadcaster and the complainant. Failure to attend the hearing shall not hinder the forming of a conclusion.

(1) The Complaints Committee shall reject unfounded complaints or those that are not lodged in accordance with the conditions laid down in this present Act.

(2) If in the opinion of the Complaints Committee the broadcaster has violated the requirement for the provision of balanced information, then the broadcaster shall publish - with no explanatory comment from his part - the findings of the Complaints Committee at the time and in the manner specified in the Complaints Committee’s standpoint, or, alternatively, the broadcaster shall offer the complainant an opportunity to present his standpoint.

(3) In the case of a more severe or repeated violation of the requirement for the provision of balanced information, the Complaints Committee may initiate at the Commission to impose a fine.

(1) An appeal for legal remedy may be lodged with the Commission against the Complaints Committee’s decision, within forty-eight hours after the decision is communicated. The broadcaster’s appeal has a delaying effect.

(2) The Commission shall reach a decision upon the appeal for legal remedy within eight days. The Commission’s binding decision, or, in the case of the rejection of the broadcaster’s appeal the original decision of the Complaints Committee shall be enforced immediately.

(3) A review of the Commission’s decision may be sought from a Court. The Court shall proceed according to the provisions of Act No 3 of 1952. on Civil Court Proceedings (hereinafter: Ccp.) and to its numerous amendments. The Court may reach a different ruling from the Commission’s decision.

(1) In order to facilitate the preparation of the broadcasting tender invitations, the Commission shall invite the Telecommunications General Inspectorate, through the Minister of Transport, Telecommunication and Water Management, to assemble the list of transmission opportunities and the associated frequency allocation plans.

(2) If the Telecommunications General Inspectorate is unable to fulfil the task by the time requested by the Commission, the Minister of Transport, Telecommunications and Water Management may authorise an extension to the deadline.

(3) In its invitation referred to in Paragraph (1), the Commission shall define

a) the conceptual considerations necessary for the planning of frequency allocation for broadcasting purposes, especially in regards of the objectives of using the frequencies;

b) the preferences to be applied for frequency allocation planning for broadcasting purposes;

c) the guidelines and time schedule for frequency allocation planning for broadcasting purposes.

(4) The frequency allocation plan developed by the Telecommunications General Inspectorate shall include:

a) the nominal sites of broadcast transmitter stations - in the case of surface antenna transmission - as well as the other technical specifications of the installation;

b) the expected signal area covered by the stations;

c) the frequency band in accordance with the designations of the International Radio Regulations.

(5) The Commission may return the frequency allocation plan for amendments.

(6) The Commission shall make the frequency allocation plan available for public inspection at least fifteen days prior to its approval. The Commission shall publish an notice of the date and place of the release in not less than two national daily papers, not later than two weeks in advance - in which the Commission specifies the time and place of the public hearing to be held not sooner than ten days after the closing of the public inspection. To the public Hearing, Section 94. of this present Act shall apply.

(7) The frequency allocation plan and the conceptual considerations of planing are public, and are open for inspection to anyone at the Telecommunications General Inspectorate.

(1) In order to ensure the operation, to protect the independence of public service broadcasting, Parliament, in line with Sections 140.-141., forms the Hungarian Radio Public Foundation, the Hungarian Television Public Foundation and also, by the request of its founder, transforms the Public Television Foundation ‘Hungaria’ (hereinafter collectively: Public Foundations).

(2) This present Act does not affect the name, object and assets of Public Television Foundation ‘Hungaria’.

(3) The Memorandum and Articles of Association of the Public Foundations (and the amendments to the Memorandum and Articles of Association of Public Television Foundation ‘Hungaria’) is accepted by the two-thirds majority vote of members present at Parliament. Matters of operation and organisation of the Public Foundations not regulated in this present Act shall be determined in the Memorandum and Articles of Association.

(4) The general provisions regulating public foundations shall apply to the Public Foundations unless this present Act regulates otherwise.

(1) Parliament shall determine the formation assets of the Public Foundation in the Memorandum and Articles of Association .

(2) The Founder shall transfer, in the form of an after-the-effect asset allocation order,

a) under the ownership of the Hungarian Radio Public Foundation, the title to the fixed and current assets and also to the rights representing asset values currently held by Hungarian Radio operating as a state budgetary organ,

b) under the ownership of the Hungarian Television Public Foundation, the title to the fixed and current assets and also to the rights representing asset values currently held by Hungarian Television operating as a state budgetary organ,

c) subsequent to the severance of the title, or according to the provisions of the Memorandum and Articles of Association, under the ownership of the Hungarian Radio Public Foundation, and Hungarian Television Public Foundation respectively, the title to the fixed and current assets currently being jointly used by the Hungarian Radio, and Hungarian Television operating as state budgetary organs.

Section 55.

(1) The management bodies of the Public Foundations are the Boards of Trustees.

(2) The Boards of Trustees shall comprise of members elected by Parliament or members delegated by organisations specified in this present Act.

(3) The members elected by Parliament shall constitute the Presidential Body of the Board of Trustees.

(4) Parliament shall elect eight members into the Boards of Trustees respectively by a simple majority vote for each members individually.

(5) Half of the members eligible to be elected into the Board of Trustees shall be nominated by the governing Parliamentary factions, the other half by the opposing factions in such a manner that at least one member nominated by all factions shall be elected.

(6) Nominations shall be made within eight days after the start of the election procedure. The election shall be held within fifteen days after the nominations are received.

(7) If one of the factions does not nominate a member, the other faction(s) of the same side of the House may nominate the four members. If a candidate fails to win the necessary votes to be elected, a new candidate shall be nominated to replace him and a new election shall be held within fifteen days. A candidate who failed to win at least ten percent of the votes of all Members of Parliament on the previous election, shall not be re-nominated.

(8) The Presidential Body of the Board of Trustees is formed when all of its members are elected. However, the fact that the governing or the opposition parties do not nominate a member, shall not hinder the formation of the Presidential Body of the Board of Trustees.

(9) The Presidential Body of the Board of Trustees is elected for a term of four years.

If, during the term of the Presidential Body of the Board of Trustees a change in the status of the governing or opposition factions occur, this fact shall not affect the appointment of the members of the Presidential Body of the Board of Trustees, but, based on new nomination(s), further member(s) shall be elected into the Presidential Body for the residual term, if it is necessary for the purpose of maintaining the equilibrium. If the factions of the given side fail to nominate a mutually acceptable candidate, the nomination shall be decided upon by a draw.

(10) Parliament shall elect the President of the Commission, - thus, also of the Presidential Body - based on the governing factions’ nomination, whilst the vice-president based on the opposing factions’ nomination.

(11) If the factions fail to agree on the nomination of the President or vice-president, the nomination shall be decided upon by a draw.

Section 56.

(1) The following organisations shall delegate twenty-one members to the Board of Trustees of the Hungarian Radio Public Foundation and the Hungarian Television Public Foundation each,:

a) one member delegated by the self-governments, or lacking this, the national associations of national and ethnic minorities living in Hungary,

b) one member delegated by the Hungarian Roman Catholic Church, the Hungarian Calvinist Church, the Hungarian Lutheran Church and by the Hungarian Association of Jewish Religious Communities,

c) one member delegated by a Church not mentioned under b),

d) one member delegated by the national human rights organisations,

e) four members delegated by the national professional organisations operating in the fields of literature, theatre, film, performing arts, music, dance, fine arts and applied arts and other areas of cultural activities,

f) two members delegated by the national professional organisations operating in the fields of science and education,

g) one member delegated by the national associations of Trade Unions,

h) one member delegated by the national and interest representation organs of employers and entrepreneurs,

i) one member delegated by the national organs of professional and interest representation of journalists,

j) one member delegated by the national organisations of environmental protection, nature preservation and of animal rights,

k) one member delegated by the national organisations of women’s rights issues,

l) one member delegated by the national organisations of children’s rights issues and youth representation,

m) one member delegated by the national representative organs of old age pensioner’s issues,

n) one member delegated by the national organisations representing the interests of the severely disadvantaged due to their physical condition,

o) one member delegated by the national organs representing sports issues,

p) one member delegated by the national organs of representing local municipalities’ issues, and

r) one member delegated by the Hungarian organisations outside the boundaries of Hungary.

(2) The following organisations shall delegate twenty-three members to the Board of Trustees of Public Television Foundation ‘Hungaria’:

a) one member delegated by the self-governments, or lacking this, the national associations of national and ethnic minorities living in Hungary,

b) one member delegated by the Hungarian Roman Catholic Church, the Hungarian Calvinist Church, the Hungarian Lutheran Church and by the Hungarian Association of Jewish Religious Communities,

c) one member delegated by a Church not mentioned under b),

d) one member delegated by the national human rights organisations,

e) three members delegated by the national professional organisations operating in the fields of literature, theatre, film, performing arts, music, dance, fine arts and applied arts and other areas of cultural activities,

f) two members delegated by the national professional organisations operating in the fields of science and education,

g) one member delegated by the national organs of professional and interest representation of journalists,

h) one member delegated by the national organisations of environmental protection, nature preservation and of animal rights,

i) one member delegated by the national organisations of women’s rights issues,

j) one member delegated by the national organisations of children’s rights issues and youth representation,

k) one member delegated by the national organisations representing the interests of the severely handicapped due to their physical condition,

l) one member delegated by the national organs representing sports issues,

m) seven members delegated by the Hungarian organisations operating in the neighbouring countries, and one member by the organ entitled, in the World Association of Hungarians, to represent the rest of Hungarians living abroad.

(3) The Commission shall notify, based on the recommendations of the Office of Hungarians Living Abroad, the organs specified in Paragraph (1) Sub-paragraph r), and in Paragraph (2) Sub-paragraph m).

(1) With the exception of Section 56. Paragraph (3) of this present Act, an organ entitled to delegate members shall be the one that is filed in the Commission’s records.

(2) Invitations for enlisting in the records shall be published by the Commission in the Magyar Kozlony by 31st January, every year. Applications for inclusion must be lodged by 15th March, every year.

(3) The Commission shall file in its records the applying organ which was, at least two years prior to the publication of the invitation for enlisting, properly filed by the Court (Authority) in accordance with the rules relevant to its status. The applicant shall state under which of the categories defined in Section 56. it belongs.

(4) The term of office of delegated members is one year.

(5) The organs listed in the Commission’s records under the same category defined in Section 56., are entitled to delegate a member to the Board of Trustees. If the participating organs cannot agree on a mutually accepted delegation, decision shall be made by means of a draw in public. The draw shall be performed by the Commission, in the presence of a Public Notary, by not later than 1st April, every year. Only the organs present may participate in the draw.

(6) Based on a draw, one organ may only delegate a member to one Board of Trustees. If the organ is entitled to delegate a member to several Public Foundations, then the organ shall specify to which Board of Trustees it wishes to exercise its delegation right. With regards to the other Commission(s) of Trustees, the draw shall be repeated.

(7) If an organ has already exercised its delegation rights and there is another organ within the same category, who had not yet delegated a member, the former organ may not participate in the agreements or draw for a period of three years subsequent to the expire of its mandate in the Board of Trustees.

(1) The conflict of interests rules defined in Section 35. Paragraph (1), with the exception of Section 34. Paragraph (2), shall apply to the members and the Presidents of the Board of Trustees. A close relative - as defined in Section 685. Sub-paragraph b) of the Civil Code - of the President or a member of the Presidential Body shall not have a senior position with the public service broadcaster concerned.

(2) A member of the Board of Trustees may not, for a period of one year subsequent to the expire of his term of mandate, establish a legal relationship to the effect of employment with the public service broadcaster, of which he was a member of the Board of Trustees. This period shall be two years in respect of the President or a member of the Presidential Body.

(3) The mandate of the Board of Trustees may be, before its expire, revoked by the competent Parliamentary committee, in accordance with Section 74/C. Paragraph (6) of the Civil Code. Dismissal of individual members, of the President (Vice-president) on the ground of conflict of interests shall be within the discretion of Parliament, or, of delegated members, within the discretion of the delegating organ. In these issues a two-thirds majority vote of present members of Parliament shall rule.

(4) Members (the President) of the Board of Trustees shall not have a legal relationship which amounts to employment with the Public Foundation. Section 35. Paragraph (5) applies to them. They shall not accept, on any account, remuneration from the public service broadcaster supervised by them.

(1) The following shall be within the competence of the Board of Trustees:

a) exercising the rights of a General Session in respect of the public service broadcasting corporation, in accordance with Act No 6 of 1988. on Trading Corporations (hereinafter: Tc.) with the differences specified within this present Act,

b) acceptance of the annual business plan and approval of the Balance Sheet of the Public Foundation,

c) making recommendations to the Commission designed for increasing operational revenues,

d) making recommendations to the relevant Parliamentary Committee, in order to initiate subsidies or targeted assistance from the central budget,

e) matters that are placed under the jurisdiction of the Board of Trustees by the Public Foundation’s Memorandum and Articles of Association - within the framework of this present Act.

(2) The Presidential Body shall manage the Public Foundation’s assets in its capacity of being the managing organ of the Public Foundation.

(1) The Public Foundation’s income shall be generated from:

a) the proportion of licence fee revenues as determined in this present Act,

b) the proportion of broadcast revenues as determined in this present Act,

c) the yield of the assets owned by the Public Foundation,

d) other foundation revenues (subsidies or targeted assistance from the central budget, donations).

(2) The Public Foundation shall incur expenses arising from:

a) contributions towards the operation and development costs of the public service broadcaster,

b) the own costs (expenses) of the Public Foundation.

(3) The Public Foundation shall not engage in any habitual business activity, establish economic associations, public society or a foundation, nor shall acquire equity in, or form a trading corporation.

(4) Its operating costs shall be covered from its entitlement to the portion of licence fee revenues, and it shall transfer any unused amount to support the public service broadcaster.

(5) Finance management of the Public Foundation shall be audited by the State Audit Office.

(1) The Board of Trustees and the Presidential Body shall hold meetings as often as necessary for fulfilling their tasks, but the Board of Trustees at least once every quarter, and the Presidential Body at least once every month. The President of the Board of Trustees (Presidential Body) shall convene the meetings, even if issues coming under the authority of the General Session are to be discussed. To these points of agenda, the Executive Chairman of the public service broadcaster shall also be invited to attend. The President shall be under obligation to convene the extraordinary meeting of the Board of Trustees (Presidential Body) within eight days from such a request made, and endorsed with a proposed agenda, by the majority of members of the Board of Trustees (Presidential Body). Failure to the President’s meeting of this obligation, the members themselves are entitled to convene the extraordinary meeting.

(2) All the members of the Board of Trustees (including those of the Presidential Body and the President himself) shall have equal vote.

(3) The meeting has the necessary quorum if it is attended by at least half of all members and the President or vice-president. A resolution is made by a simple majority of the votes of the members present. However a two-thirds majority of the votes of the members present at the Board of Trustees meeting is necessary for the election or one-time extension of the appointment of the Executive Chairman of the public service broadcaster (Section 66. Paragraph (1)).

(4) Different from the content of Paragraph (3), a resolution for the dismissal of the President, or for the prohibition of the Vice-Presidents’ appointment or withdrawal of their appointment, can only be made by a two-thirds majority of the votes of all the members (Section 66. Paragraph (1), Sub-paragraph d)).

(5) The President shall chair the meeting and assemble the agenda. Any member is entitled to propose a point of agenda, in writing, prior to the meeting, and the assembly shall make a decision on the inclusion of the issue in the agenda.

(6) If the Presidential Body is unable to nominate a person elected by a two-thirds majority vote of all the members of the Board of Trustees as set forth in Section 62. Paragraph (2) to the Executive Chairmanship of the broadcaster, and if he is also unable to invite a new tender for the position, lacking the same proportion of votes in favour within thirty days after the deadline of the original tender, the mandate of the Presidential Body shall expire. Parliament shall elect a new Presidential Body within one month. No member of the previous Presidential Body shall be nominated to this new body.

(7) The management, administration and administrative tasks of the Board of Trustees shall be performed by the Secretariat of the Board of Trustees. The Memorandum and Articles of Association shall detail the rules regulating the Secretariat of the Board of Trustees.

(1) A Supervisory Committee shall supervise the activities of the Board of Trustees of the Public Foundation.

(2) The Supervisory Committee shall be composed of a Chairman and two further members.

(3) The Chairman and one member of the Supervisory Committee shall be nominated by the parliamentary opposition factions, the other member by the governing factions, following the rules of electing members to the Presidential Body of the Board of Trustees, with the difference that a Member of Parliament may also be nominated. The same rules apply to the election of these nominees as in the case of electing members to the Presidential Body of the Board of Trustees.

(4) The Supervisory Committee may request information from, and has the rights to inspect the documents of, the Board of Trustees. The Supervisory Committee has no power to bring a decision binding the Board of Trustees. If the Supervisory Committee finds shortcomings of finance management, or, that the Board of Trustees made such decisions that are against the law or are violating or endangering the realisation of the Public Foundation objectives, the Supervisory Committee shall refer its findings to the State Audit Office or to Parliament.

(1) For fulfilling the tasks of national public service radio and television broadcasting, the Hungarian Radio Public Foundation and the Hungarian Television Foundation shall form the Hungarian Radio Public Service Broadcasting Corporation (hereinafter: MR Rt.) and the Hungarian Radio Public Service Broadcasting Corporation (hereinafter: MTV Rt.) respectively, in a private association.

(2) Subsequent to the execution of the procedure laid down in Sections 141.-143. of this present Act, and from the date specified within, Magyar Radio Magyar Televizio shall operate as single-member trading corporations founded by the Hungarian Radio Public Foundation and by the Hungarian Television Public Foundation respectively.

(3) The rules of the law laid down in Tc., applicable to Public Limited Companies and also including the general common rules of trading corporations, with the exception of special rules set forth in this present Act shall apply to MR Rt., MTV Rt. and Duna TV Rt. (hereinafter: the Corporations)

(4) The corporations consist of one issued, un-tradable share each.

a) alter the range of activities of the Corporations,

b) dissolve, merge, divide or transform the Corporations into other corporate forms,

c) withdraw assets or draw dividends from the Corporations,

d) to determine the structure or the content of the Corporations’ programmes or programme items,

e) give orders to the Executive Chairman of a Corporation concerning the employers’ rights exercised,

f) make a decision in such an issue that comes under the authority of the Executive Chairman or another organ as specified in this present Act.

(1) The Board of Trustees shall be the organ authorised to

a) establish, amend and publish in the Magyar Kozlony, the Articles of Association of the public service broadcaster in a corporate form,

b) elect the Executive Chairman of the Corporation, and the extension of the appointment on one occasion,

c) relieve the Executive Chairman of the Corporation, forbid the appointment or withdrawal of appointment of the Deputy Chairmen - in the course of the meeting of the Board of Trustees held subsequent to the bringing of such a measure by the Chairman,

d) initiate the dismissal of the Executive Chairman of the Corporation,

e) protect the Corporation’s independence,

f) approve the public service broadcasting code and to publish it in Muvelodesi Kozlony, to enforce the requirements set forth in the code and to annually evaluate the compliance with those requirements,

g) approve the standing rules of archiving,

h) annually evaluate the objectives undertaken by the