Signed by President Lula, the Bill will be considered by the House of Representatives

The Bill replaces the Rouanet Law (Law No. 8.313/1991) joined the staff of the National Congress after the congressional recess in February. The president, Luiz Inacio Lula da Silva, the House of Representatives sent the text of the law that makes it more comprehensive and dynamic culture.

Its main objectives are to expand the resources of the area and at the same time, diversify funding mechanisms in order to develop a real economy of culture in Brazil.

In general, the main novelties are the renewal of the National Culture Fund (FNC), strengthened and divided into nine sector funds, the diversification of funding mechanisms, the establishment of objective and transparent criteria for the evaluation of initiatives that seek resources; the deepening of partnership between state and civil society for the better allocation of public resources, and encouraging federal cooperation with transfers to state and local funds.

Financing

The new law makes the National Culture Fund (FNC) on the central mechanism of financing the sector, creating more modern forms of development projects. It is guaranteed, so that resources go directly to the tenderers, without intermediaries and with greater participation of society, through the National Commission for Culture Incentive (CNIC), which give rise to sectoral committees.

In 2010, as part of a transition process, the Ministry of Culture is preparing to implement the new law. The FNC, for example, received a budget allocation record above $ 800 million, and make transfers to state and local funds, boosting the federal cooperation.

FNC will be created within the eight sectoral funds: Visual Arts, the Performing Arts, Music, Access and Diversity, Heritage and Memory, Book, Reading, Literature and Humanities, created by specific law; Stock Transverse and Equalization; Incentives for Innovation and Audiovisual. They add to the existing Audiovisual Sector Fund (FSA).

Transparency

The bill creates a public and transparent criteria for both access to resources of the FNC and the tax incentive. State and sponsors will be encouraged to improve their mechanisms of relationship with the producers and artists with the release of clear criteria for assessing the extent symbolic, economic and social use of public resources.

Based on the guidelines of the annual CNIC, whose function is to technically evaluate applications for approval of tax incentives, sectoral committees will be created with equal composition, made up of specialists representing the various cultural segments and wide participation of civil society, ensuring the preservation of a recently acquired assets by Brazilian society: freedom of expression. This process will also streamline and improve the system of analysis of projects.

New modes of access

Apart from strengthening the Fund, the Ministry of Culture inserted in the proposed new law for ways to improve the system of evaluation of projects and reduce bureaucracy. In addition the agreement will be awarded scholarships and prizes. Accountability will be simpler, with a focus on project outcomes and not just in their accounting issues.

In the Bill, individuals and corporations, with or without profit, they have the right to present projects. The cultural nature should now be in the initiative, not the bidder. Will be established within 30 days for the Ministry of Culture to complete the evaluation of the cultural project.

Investment

In order to meet the diversity of Brazilian culture, the proposed new law diversifies also the mechanisms of investment and support. Among them is the 'endowment'. It is an incentive for cultural foundations - museums, orchestras and other equipment - constitute a permanent fund for long-term investments, in order to achieve sustainability, financial stability and reduce dependence on tax waiver on its current mode.

Another mechanism is the Fund on Culture and Art (Ficart), in which investors become members of a cultural project. The Ficart now takes the incentive that will make it attractive and feasible, the current law does not allow.

Check here informative material on the proposal. In it are the reasons for the change, the diagnosis of which she left (based on 18 years of existing legislation and data on cultural exclusion) and the process of participatory development.