Decree no. 2006-1067 of August 25, 2006 implementing article 80 of law no. 86-1067 of September 30, 1986.
The President of the Republic,
On the report of the Prime Minister, the Minister for Culture and Communication and the Minister for the Economy, Finance and Industry,
Having regard to the French General Tax Code, in particular article 302 bis KD ;
Having regard to Law no. 86-1067 of September 30, 1986, as amended, on freedom of communication, in particular articles 29 and 80;
Having regard to Law no. 2000-321 of April 12, 2000 relative to the rights of citizens in their relations with administrations, in particular article 10;
Having regard to Decree no. 90-437 of May 28, 1990, setting the conditions and procedures for payment of expenses incurred by civilian personnel traveling in mainland France when they are charged to the budgets of the State, national public administrative establishments and certain subsidized bodies;
Having regard to Decree no. 97-34 of January 15, 1997 on the deconcentration of individual decisions, amended by Decree no. 97-463 of May 9, 1997 and Decree no. 97-1205 of December 19, 1997;
Having regard to Decree no. 97-1200 of December 19, 1997, as amended, for the application to the Minister of Culture and Communication of 1° of Article 2 of Decree no. 97-34 of January 15, 1997 on the devolution of individual decisions;
Having regard to Decree no. 99-1060 of December 16, 1999, as amended, concerning State subsidies for investment projects;
Le Conseil d'Etat (section de l'intérieur) entendu ;
The Council of Ministers,
Decree:
Chapter One
Subsidies
Article 1
The present decree applies to the radio services mentioned in article 80 of the aforementioned law of September 30, 1986.
For the purposes of this decree, the following definitions shall apply:
- commercial resources from messages broadcast on air and having the character of brand advertising or sponsorship": revenue corresponding to the sums invoiced to advertisers, directly or through an agency, for the diffusion of their advertising or sponsorship messages on air;
- total sales": revenue from the normal, ongoing operation of the service corresponding to radio activity.
Article 2
The financial support provided for in article 80 of the aforementioned law of September 30, 1986, for the radio broadcasting services mentioned in the same article includes installation, equipment and operating subsidies, as well as selective subsidies for radio activities. The operating subsidy and the selective subsidy for radio activities are operating subsidies.
Article 3
The installation subsidy is awarded to holders of a first authorization to operate a terrestrial radio service who request it within six months of the start date set by the French Superior Audiovisual Council.
The amount of the subsidy, which may not exceed 16,000 euros, is determined on the basis of a financing plan for the investment and operating expenses required to launch the radio service.
Article 4
The equipment grant is awarded to terrestrial radio services to contribute to the financing of radio equipment, up to a maximum of 50% of the pre-tax cost of this investment, up to a maximum of 18,000 euros per five-year period.
This subsidy may be applied for in an initial request and in an additional request, which must be submitted at least two years after the initial request. The supplementary demand is for a minimum investment of 8,000 euros.
The equipment subsidy may not be awarded less than five years after the granting of an installation subsidy or a subsidy under article 14 of this decree.
The initial subsidy and the additional subsidy are each paid in two instalments: the first corresponds to 60% of the aid granted; the second, which must be requested within a maximum of one year from the date of notification of the first instalment, corresponds to the balance of the subsidy granted. The second instalment is paid on the basis of proof of investment carried out after the date of notification of the first instalment. If the investment made is less than the initial project, the amount of the grant awarded is revised. Where appropriate, the association is required to repay any overpayment within a period set by the Minister for Communication. Failure to repay within this period will result in suspension of payment of any subsidy provided for in the present decree.
When an over-the-air radio service decides to revoke its request for an equipment subsidy after the first instalment of the initial subsidy has been paid, its entitlement to this subsidy is reopened as from the effective repayment of the sum already received in this respect.
Article 5
The operating subsidy is determined on the basis of a scale set by joint order of the Minister for Communication and the Minister for the Budget, issued after consultation with the Commission du Fonds de Soutien à l'Expression Radiophonique provided for in Article 15, taking into account the normal and current operating income of the service corresponding to the radio activity, before deduction of advertising expenses.
The operating subsidy is awarded to over-the-air radio services that submit a request no later than April 15 of the year following the end of the financial year.
Article 6
The selective radio subsidy is allocated to terrestrial radio services on the basis of :
1° The diversification of their resources ;
2° Professional training for their employees and job consolidation within their service;
3° Cultural and educational initiatives;
4° Participation in collective action programs;
5° Their actions in favor of integration and the fight agains discrimination;
6° Their actions in favor of the environment and local development;
7° The proportion of programs produced by the service in question within the program schedule.
It is determined according to a scale laid down by joint order of the Minister for Communication and the Minister for the Budget, after consulting the committee provided for in article 15. The total amount of selective subsidies for radio programs may not exceed 25% of total operating subsidies each year.
Selective subsidies are awarded to over-the-air radio services that submit a request by April 15 of the year following the end of the financial year.
Article 7
Requests for subsidies are addressed to the Minister in charge of communication (media development department) and examined by the secretariat of the commission provided for in article 15.
Article 8
Subsidies are awarded by decision of the Minister in charge of communication. The selective radio subsidy is awarded on the basis of a proposal from the committee provided for in article 15.
Article 9
The procedures for presenting requests for subsidies and the list of supporting documents are established by the Minister responsible for communication, after consulting the committee provided for in article 15 of the present decree.
Applicants must provide proof that their situation is in order with regard to the tax authorities, social security organizations and other social bodies to which the staff employed are subject.
Requests for operating, equipment and selective subsidies must be accompanied by an income statement and balance sheet for the previous year, drawn up in accordance with the general chart of accounts for associations. The income statement and balance sheet must be certified as true and fair by a chartered accountant.
Article 10
In the event of withdrawal of authorization in application of 4° of article 42-1 or article 42-3 of the aforementioned law of September 30, 1986, or in the event of voluntary cessation of activity, that part of the installation and equipment subsidies which has not yet been used in accordance with its purpose shall be returned under the conditions laid down in articles 12 and 13.
If the radio service receiving a subsidy exceeds the advertising revenue ceiling defined in article 80 of the same law during the financial year for which the subsidy was granted, the subsidy is returned in full.
Article 11
In the event of suspension of authorization in application of 1° of article 42-1 of the aforementioned law of September 30, 1986, in the event of withdrawal of authorization in application of 4° of article 42-1 or article 42-3 of the same law, or in the event of voluntary cessation of activity, the operating subsidy and the selective subsidy for radio activities are allocated on a pro rata basis according to the time spent by the radio station in operation during the year of withdrawal of authorization or cessation of activity.
Article 12
Any service that finds itself in one of the situations provided for in articles 10 or 11 must inform the Minister responsible for communication within the following deadlines:
- in the event of suspension or withdrawal of authorization, or in the event of cessation of activity, the deadline is fifteen days ;
- in the event that the ceiling on resources stipulated in article 80 of the aforementioned law of September 30 1986 is exceeded, the deadline expires on the last day of the fourth month following the end of the financial year.
Article 13
Any service which finds itself in one of the situations provided for in articles 10 or 11, unless a remission or delay is granted by the Minister in charge of communication, shall proceed within two months of the expiry of the time limits provided for in article 12 to reimburse the subsidy or subsidies unduly received.
Article 14
The transferee of a lease-management contract for an over-the-air radio service may benefit, for the duration of the contract, from an installation subsidy, exclusive of that provided for in article 3. The amount of the subsidy, which may not exceed 16,000 euros, is determined on the basis of a financing plan for the expenses required to resume radio broadcasting activities.
Chapter II
The Commission for the Support Fund for Radio Expression
Article 15
The Commission du Fonds de Soutien à l'Expression Radiophonique Locale is made up of eleven full members and eleven alternate members, appointed for three years by order of the Minister responsible for communication, on the basis of :
1° A member of the Conseil d'Etat, the final court of appeal or the National audit office, Chairman;
2° Four representatives of the French State, appointed respectively on the proposal of the ministers responsible for culture, communication, integration and the budget;
3° Four representatives of the terrestrial radio services mentioned in article 80 of the aforementioned law of September 30, 1986, appointed after browsing the organizations representing the services concerned;
4° Two representatives of advertising agencies liable for the tax stipulated in article 302 bis KD of the French General Tax Code.
The terms of office of the members referred to in 3° and 4° are renewable once only.
A representative of the French Superior Audiovisual Council attends commission meetings in an advisory capacity.
The Media Development Department acts as the Commission's secretariat.
Article 16
The Commission meets when convened by its Chairman, who sets the agenda.
A quorum is reached when at least half the members of the committee are present.
Decisions are taken by a majority vote of the members present. In the event of a tie, the Chairman has a predominant vote.
A member who dies, resigns or loses the capacity for which he or she was appointed during his or her term of office is replaced for the remainder of the term by a person appointed under the same conditions.
Commission members may not take part in deliberations if they have a personal interest in the matter under discussion. In breach of this rule, the decision taken as a result of the deliberation is null and void if it is not established that the participation of the member(s) concerned had no influence on the deliberation.
Commission members are bound to maintain the confidentiality of their deliberations and of any information brought to their attention in the course of their duties.
Article 17
Members of the Commission who attend Commission meetings in a deliberative capacity are entitled to reimbursement of travel and subsistence expenses under the conditions laid down in the aforementioned Decree of May 28, 1990.
Article 18
The Commission may be asked by the Minister responsible for communication to give an opinion or carry out studies on any matter concerning the over-the-air radio services mentioned in article 80 of the aforementioned law of September 30, 1986.
Article 19
An annual report on the Fonds de Soutien à l'Expression Radiophonique is submitted to the Minister for Communication.
Article 20
Expenses relating to the breakdown of financial assistance and the operating costs of the commission provided for in article 15 are covered by a deduction from the net proceeds of the tax provided for in article 302 bis KD of the French General Tax Code, in accordance with the conditions laid down by joint order of the Minister responsible for communication and the Minister responsible for the budget.
Chapter III
Transitional and final provisions
Article 21
The following provisions are added to Title II, Item 2 of the Appendix to the above-mentioned Decree of December 19, 1997:
"Décret n° 2006-1067 du 25 août 2006 pris pour l'application de l'article 80 de la loi n° 86-1067 du 30 septembre 1986 relative à la liberté de communication :
Article 22
This decree will be effective from February 28, 2007.
Article 23
Decree no. 97-1263 of December 29, 1997 enforcing article 80 of law no. 86-1067 of September 30, 1986 on freedom of communication is abrogated with effect from the same date.
Article 24
The terms of office of the members of the Commission du Fonds de Soutien à l'Expression Radiophonique in effect on the date of publication of this decree come to an end with effect from February 28, 2007.
Article 25
The present decree is applicable in French Polynesia, the Wallis and Futuna Islands, New Caledonia, Mayotte and the French Southern and Antarctic Territories.
Article 26
The provisions of the present decree may be amended by decree of the Conseil d'Etat, with the exception of those set out in article 21.
Article 27
The Prime Minister, the Minister for the Economy, Finance and Industry, the Minister for Culture and Communication and the Minister for overseas France are each responsible for the application of this decree, which will be published in the Official Journal of the French Republic.