The Law of Ukraine On Public Service Broadcasting of Ukraine (draft) Article 1. Legal framework for Public Service Broadcasting of Ukraine

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1 The Law of Ukraine On Public Service Broadcasting of Ukraine (draft) This Law creates a legal framework of Public Service Broadcasting of Ukraine, determines the principles of the National Public Broadcasting Company of Ukraine. Section I GENERAL PROVISIONS Article 1. Legal framework for Public Service Broadcasting of Ukraine 1. In order to meet the information needs of society, to engage citizens to discuss and address critical social and political issues, and to promote the establishing of civil society the Public Service Broadcasting of Ukraine shall be created. 2. To ensure a smooth and consistent formation of Public Service Broadcasting of Ukraine the Cabinet of Ministers of Ukraine creates a legal entity under public law, the National Public Broadcasting Company of Ukraine (hereinafter - NPBU) on the basis of the reorganized National Television Company of Ukraine, National Radio Company of Ukraine and the State Television and Radio Company Kultura. Article 2. Legislation in the field of NPBU activity 1. The activity of NPBU shall be regulated by the Constitution of Ukraine, the Laws of Ukraine On Information, On Access to Public Information, On Television and Radio Broadcasting, On the National Television and Radio Broadcasting Council of Ukraine, this Law and other laws and regulations. Article 3. NPBU operational principles 1. The activity of NPBU shall be carried out on the principles of: 1) comprehensive and objective information for the public; 2) adherence to social norms, traditions and culture of Ukrainian people; 3) clear separation of facts from comments and evaluations; 4) free expression of views, opinions and beliefs; 5) independence from state authorities, local authorities and their officials, enterprises, institutions, organizations and individuals; 6) public participation in managing and forming the program policy. Article 4. NPBU main objectives 1. NPBU main objectives shall be: 1) objective, complete and timely information for the public on most important social, political and economic developments in Ukraine and abroad; 2) promoting the consolidation of Ukrainian society;

2 3) promoting the development of Ukrainian language and culture and ethnic minorities languages and cultures; 4) satisfaction of informational, cultural and educational needs of population, including by means of creation and distribution of economic, cultural and art, scientific and educational, entertaining, sports programs, programs for children and youth, for people with disabilities, for ethnic minorities and for other social groups; 5) promoting the enhancement of the international standing of Ukraine. Article 5. Structure of NPBU 1. NPBU structural units shall be the Public Television and the Public Radio. 2. The Public Television shall perform broadcasting on two nationwide television channels: social and political, and cultural and educational. 3. The Public Radio shall perform broadcasting on two nationwide radio channels: social and political, and cultural and educational. Article 6. Statute of NPBU 1. The Statute of NPBU shall be approved by the Cabinet of Ministers of Ukraine. 2. The Statute of NPBU shall be amended by the Cabinet of Ministers of Ukraine at the recommendation of the Supervisory Board. Section II ADMINISTRATIVE BODIES OF THE NATIONAL PUBLIC BROADCASTING COMPANY OF UKRAINE Article 7. Supervisory Board 1. Supervision of the NPBU activity shall be performed by the Supervisory Board, acting within the limits of its powers defined by this Law and the Statute. 2. The Supervisory Board shall: 1) define the main directions of NPBU activities, approve the Editorial Charter, supervise its implementation; 2) elect on a competitive basis the Members and the Chairman of the Managing Board of NPBU for four years, decide on early termination of their powers, elect the Members and the Chairman of the Audit Commission of NPBU, decide on the termination of their powers; 3) elect from among its Members the Chairman, the Vice-Chairman and the Secretary of the Supervisory Board, decide on the termination of their powers; 4) approve the regulations on the Supervisory Board, the Managing Board, the Audit Commission of NPBU, approve other internal documents in accordance with the Statute and amend them;

3 5) approve the staffing chart of the Managing Board of NPBU; 6) approve the annual activity report of NPBU, ensure its promulgation; 7) exercise other rights and obligations provided under this Law and the Statute. 3. The Supervisory Board can not interfere with current economic activities of the Managing Board of NPBU. Article 8. Composition and constitution of the Supervisory Board 1. The Supervisory Board shall consist of seventeen members. 2. The Supervisory Board shall include one representative of every All-Ukrainian Non- Governmental Organization whose main activities are: 1) activities in the field of education; 2) activities in the field of science; 3) activities in the field of religion; 4) activities in the field of sports; 5) activities in the field of journalism; 6) activities in the field of human rights; 7) activities in the field of business rights protection; 8) activities in the field of children and youth rights protection; 9) activities in the field of art; 10) activities in the field of local government; 11) trade union activities; 12) activities in the field of minorities rights protection; 13) activities in the field of protection of rights of persons with disabilities; 14) activities in the field of protection of rights of war veterans and combatants. 3. The Supervisory Board shall include three representatives of the Cabinet of Ministers of Ukraine, including representatives of central executive authorities that implement policies in the field of education and science, youth, social protection and information policy. 4. Candidates for inclusion to the Supervisory Board shall be submitted to the National Television and Radio Broadcasting Council of Ukraine. Each of All-Ukrainian Non- Governmental Organizations specified in Part two of this Article may submit one candidate.

4 5. The National Television and Radio Broadcasting Council of Ukraine shall develop and approve the procedure for constitution of the Supervisory Board of NPBU, for termination of the powers of its members and for determining the procedure for the election draw for members of the Supervisory Board. In case of two or more candidates submitted from All-Ukrainian Non-Governmental Organizations of one type the National Television and Radio Broadcasting Council of Ukraine shall hold the election draw for members of the Supervisory Board that determines the appointment to the Supervisory Board. The election draw for members of the Supervisory Board shall be held in an open manner. The results of the election draw for members of the Supervisory Board shall be published in the official printed media. 6. The term of office of the Members of the Supervisory Board shall be four years. The same person can not be a Board Member for more than two consecutive terms. Members of the Supervisory Board shall exercise their powers on a free of charge basis. 7. Candidates for members of the Supervisory Board may be rejected by the National Television and Radio Broadcasting Council of Ukraine if they don t meet the requirements of Article 9 of this Law. Article 9. Requirements for a Member of the Supervisory Board 1. A Member of the Supervisory Board shall be a citizen of Ukraine, a graduate and shall be a resident of Ukraine (for not less than five years). 2. Members of the Supervisory Board can not be: 1) persons having unexpunged or unspent convictions as prescribed by law; 2) people's deputies of Ukraine, members of the Cabinet of Ministers of Ukraine, members of the National Television and Radio Broadcasting Council of Ukraine, military personnel, notaries, judges, public prosecutors, legal investigators, law enforcement officers; 3) employees or representatives of broadcasters who have broadcasting licenses in Ukraine or perform any paid work (selling goods, providing services) for broadcasters; 4) persons who directly or indirectly own shares in the authorized (share) capital of broadcasters or legal entities that perform any paid work (selling goods, providing services) for broadcasters. Article 10. Termination of powers of a Member of the Supervisory Board 1. Powers of a Member of the Supervisory Board shall be terminated in case of: 1) expiration of the term of office; 2) submission of the application for termination of powers of one's own free will;

5 3) expiration of the citizenship of Ukraine or departure for permanent residence outside of Ukraine; 4) emergence of conditions, set out in Part two of Article 9 of this Law; 5) arrest or entry into force of a judgment of conviction for criminal acts; 6) inability of a Member to exercise functions on health grounds for six months or more subject to an appropriate medical certificate; 7) entry into force of a judicial decision on recognition of a Member impaired or legally incapable; 8) death. 2. The National Television and Radio Broadcasting Council of Ukraine shall decide on termination of powers of a Member of the Supervisory Board, according to the procedure set forth by it. Article 11. Meetings of the Supervisory Board 1. The organizational form of activity of the Supervisory Board shall be a meeting. 2. Meetings of the Supervisory Board shall be held as necessary, but not less than once in a quarter. 3. Extraordinary meetings of the Supervisory Board shall be convened by the Chairman of the Supervisory Board at the request of at least one-third of its Members, of the Managing Board, of the Audit Commission. 4. The meetings of the Supervisory Board shall be deemed duly constituted, if attended by at least two-thirds of its Members. Decisions are adopted by a simple majority of votes of Members present at the meeting. 5. During the meeting the Secretary of the Supervisory Board shall record the minutes of the meeting signed by the chairperson of the meeting. 6. The Chairman of the Supervisory Board shall make annual report on the activity of NPBU at the meeting of the Cabinet of Ministers of Ukraine, by March 1. Article 12. Managing Board 1. The executive body of NPBU shall be the Managing Board. 2. The Managing Board shall be accountable to the Supervisory Board. The Managing Board shall act on behalf of NPBU within the limits of its powers defined by this Law and the Statute. 3. The Managing Board shall: 1) administer the day-to-day operations of NPBU; 2) develop proposals for the draft financial plan of NPBU;

6 3) ensure implementation of decisions of the Supervisory Board; 4) exercise other rights and obligations provided under this Law and the Statute. 4. The Managing Board shall be headed by the Chairman of the Managing Board. 5. The Chairman of the Managing Board shall: 1) organize the work of the Managing Board, chair its meetings; 2) handle transactions on behalf of NPBU; 3) handle recruitment for NPBU, create personnel reserve for relevant positions, organize training, retraining and raising of qualification for the personnel of NPBU; 4) act on behalf of NPBU with full authority within the limits of its powers defined by the Statute; 5) exercise other rights and obligations provided under this Law and the Statute. 6. The Chairman and the Members of the Managing Board shall be subject to the requirements provided for by Part two of Article 9 of this Law. Article 13. Audit Commission 1. The Audit Commission shall be a body of NPBU controlling financial and economic activities of the Managing Board of NPBU. The Audit Commission shall be elected by the Supervisory Board for a term of four years. The procedure for constitution of the Audit Commission and the requirements for the Members and the Chairman of the Audit Commission shall be set forth in the provision of NPBU on the Audit Commission. 2. Exercising control over financial and economic activities of the Managing Board the Audit Commission shall audit: 1) accuracy of data contained in the annual financial statements of NPBU; 2) compliance of maintenance of accounting, tax, statistical records and reports; 3) timeliness and accuracy of displaying in the accounting of all financial transactions in accordance with the established rules and procedures; 4) compliance of the Managing Board with its powers to dispose of property of NPBU and to handle financial transactions on behalf of NPBU; 5) timeliness and accuracy of settlements of obligations of NPBU; 6) loss prevention; 7) application of funds of NPBU;

7 8) financial condition of NPBU. 3. The Audit Commission, according to its assigned tasks, shall carry out scheduled and unscheduled inspections of financial and economic activities of NPBU. The procedure for inspections and organization of work of the Audit Commission shall be regulated by the provisions on the Audit Commission of NPBU, set forth by the Supervisory Board. 4. The meetings of the Audit Commission shall be held as necessary, but not less than once a month, as well as before inspections and after their results. The Audit Commission shall make decisions based on the results of scheduled and unscheduled inspections. The Audit Commission shall be authorized to make decisions if its meeting is attended by at least a half of its Members. The decision of the Audit Commission shall be deemed made if it has been voted for by at least a half of its Members present at the meeting. 5. The Audit Commission reports on the results of its inspections to the Supervisory Board of NPBU. Section III ENSURING THE ACTIVITIES OF THE NATIONAL PUBLIC BROADCASTING COMPANY OF UKRAINE Article 14. Sources of financing of NPBU 1. NPBU shall be financed from the State Budget of Ukraine for four years after the entry into force of this Law. The amount of budgetary financing of NPBU shall be determined by the Law of Ukraine On the State Budget of Ukraine for the relevant year. 2. After that period NPBU may be financed with: 1) subscription fee, paid for the services of NPBU according to the procedure established by the Cabinet of Ministers of Ukraine; 2) sale of NPBU own television and radio production; 3) state order (no more than 20 percent of the total broadcasting of NPBU); 4) voluntary and charitable contributions, donations of individuals and legal entities other than anonymous; 5) other revenues. Article 15. Property of NPBU 1. NPBU property is state property. The Cabinet of Ministers of Ukraine transfers the state property that is on the balance of the National Television Company of Ukraine, National Radio

8 Company of Ukraine and the State Television and Radio Company Kultura, and the right to use the land of these broadcasters in the operative management of NPBU. The Cabinet of Ministers of Ukraine shall exercise control over the use and preservation of the property transferred in the operative management of NPBU and shall have the right to seize property that is not used, and property used for purposes other than intended. NPBU shall not be allowed to transfer property and land to other legal entities or individuals, except as required by law. NPBU shall be allowed to alienate property and land only with the consent of the Cabinet of Ministers of Ukraine, and only on a competitive basis, unless otherwise provided by law. NPBU can not alienate, lend, lease, grant to concession, pledge, hand out for free use, introduce into the authorized capital of other economic entities, and handle other transactions that may result to the alienation of property. Alienation and discarding of property of NPBU shall be performed according to the procedure established by the Cabinet of Ministers of Ukraine. The report on the execution of NPBU commitments for State Property Management shall be submitted to the central executive authority for implementation of the national policy of economic and social development, according to the procedure established by the Cabinet of Ministers of Ukraine. The Cabinet of Ministers of Ukraine shall be allowed to assign the subject of State Property Management of NPBU. Article 16. Audit 1. NPBU shall carry out annual statutory audits of annual financial statements. 2. The audit organization shall be assigned by the Supervisory Board based on the results of the competition. Expenditures for the audit shall be undertook by NPBU. 3. The statutory financial statements and the results of annual audits shall be published in the media and on the Internet. Article 17. Broadcasting license 1. NPBU shall obtain, extend and re-obtain a broadcasting license according to the procedure established by the Law of Ukraine On Television and Radio Broadcasting, subject to this Article. 2. Issuance, extension, and re-issuance of broadcasting license of NPBU shall be performed by the National Television and Radio Broadcasting Council of Ukraine without holding competition. 3. The National Television and Radio Broadcasting Council of Ukraine shall re-issue free of charge the licenses of the National Television Company of Ukraine, National Radio Company of Ukraine, the State Television and Radio Company Kultura as one license by changing its owner to NPBU.

9 Article 18. Program policies 1. The program policy of NPBU shall be focused on achieving the purposes and objectives of its activities. 2. NPBU shall not be obliged to cover the activities of executive authorities, other state authorities, local authorities and their officials. Article 19. Editorial Charter 1. The Editorial Charter of NPBU must comply with the Law of Ukraine On Television and Radio Broadcasting. 2. The Editorial Charter of NPBU shall be approved by the Supervisory Board. Article 20. Broadcast of official communications 1. NPBU shall provide on a free of charge basis the President of Ukraine, the Chairman of the Verkhovna Rada of Ukraine, the Prime Minister of Ukraine, the President of the Supreme Court of Ukraine, the Chairman of the Constitutional Court of Ukraine with its airtime for official communications on important issues of public life. 2. The President of Ukraine shall be provided on a free of charge basis with the airtime for the New Year's greetings to the Ukrainian people. Section IV MISCELLANEOUS 1. This Law shall enter into force on January 1, The Law of Ukraine On the System of Public Television and Radio Broadcasting of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 1997, No. 45, p. 284; 2002, No. 16, p. 114) shall be declared to be no longer in force. 3. The following Laws of Ukraine shall be amended as follows: 1) the Law of Ukraine On Television and Radio Broadcasting (The Official Bulletin of the Verkhovna Rada of Ukraine, 2006 р., No. 18, p. 155; 2010, No. 1, p. 7; 2011, No. 10, p. 63; No. 28, p. 252; No. 31, p. 297): Article 1: Paragraph forty two shall be deleted; Paragraph fifty three shall be amended by adding after the word network the words, of programs of the National Public Broadcasting Company of Ukraine (hereinafter - NPBU) ; Part two of Article 7 shall be amended by replacing the word realization with the word implementation ; Part tree of Article 7 shall be amended as follows:

10 3. The State Committee for Television and Radio-broadcasting of Ukraine shall ensure the implementation of the public policy in relation to television and sound broadcasting. The only public regulator in the sector of broadcasting, irrespective of the technology used to distribute programmes and broadcasts, shall be the National Broadcasting Council of Ukraine (hereinafter the National Council) - a special standing constitutional independent public authority. ; Part one of Article 11 shall be amended by replacing the words the system of Public Service Broadcasting of Ukraine with Public Service Broadcasting of Ukraine ; Article 14 shall be deleted; Article 15 shall be amended as follows: Article 15. Public Service Broadcasting 1. Legal, economic, organizational and other principles of Public Service Broadcasting shall be defined by the Law of Ukraine On Public Service Broadcasting of Ukraine. ; Article 22 after Part shall be amended by adding new Parts five and six as follows: 5. The proposal to draft an opinion concerning the possibility and conditions of use of the radiofrequency bandwidth for creation and development of broadcasting channels, broadcasting networks and television networks of NPBU shall be made by a separate decision of the National Council on the basis of the application of NPBU and in accordance with the Development Plan. 6. The expansion of broadcasting channels, broadcasting networks and television networks of NPBU, where they intend to use the radio-frequency bandwidth within the limits defined by the license of the National Council, shall be performed on a non-competitive basis based on the application of NPBU and in accordance with the Development Plan.. Therefore Parts five - thirteen shall be redesignated respectively as Parts seven - fifteen; Part eight of Article 23 shall be amended by adding a paragraph as follows: NPBU broadcasting. ; Article 31 shall be amended by adding Part four as follows: «4. NPBU shall be exempted from payments for issuance, extension, re-issuance of broadcasting licenses and for issuance of duplicates of broadcasting licenses.»; 2) Article 15 of the Law of Ukraine On the National Television and Radio Broadcasting Council of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 2005, No. 16, p.265; 2006, No. 18, p.155) shall be amended by adding a paragraph as follows: constitution of the Supervisory Board of the National Public Broadcasting Company of Ukraine, termination of powers of its Members and establishing the procedure for the election draw for members of the Supervisory Board. ;

11 3) the Law of Ukraine On the Procedures of Coverage of Activities of State Government Authorities and Local Self-Government Authorities in Ukraine by Media (The Official Bulletin of the Verkhovna Rada of Ukraine, 1997, No. 49, p.299; 1998, No. 45, p.1542): Paragraph three of Article 1 shall be amended by deleting the words transmitting of which on air is ensured by the National Council of Ukraine on the channels of the National Television Company of Ukraine, National Radio Company of Ukraine and other broadcasters of Ukraine ; Article 14 shall be amended by replacing the words the National Television Company of Ukraine and the National Radio Company of Ukraine shall be obliged to with the words the National Public Broadcasting Company of Ukraine shall be obliged to ; the first sentence of Part one of Article 17 shall be amended by deleting the words either independently or with the help of the National Television Company of Ukraine and the National Radio Company of Ukraine ; the first sentence of Article 19 shall be amended by deleting the words the National Television Company of Ukraine and the National Radio Company of Ukraine ; 4) the Law of Ukraine On Elections of the President of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 2004, No , p.291; 2009, No. 50, p.754): Part eight of Article 61 shall be amended by replacing the words and the National Television Company of Ukraine, the National Radio Company of Ukraine, between the respective territorial election commissions and the regional state or municipal broadcasters with the words, the respective territorial election commissions and the regional state or municipal broadcasters ; Article 62: the first sentence of Part five shall be amended by deleting the words on the First National Channel of the National Television Company of Ukraine ; Part six: the first sentence shall be amended by deleting the words the National Television Company of Ukraine ; the second sentence shall be amended by deleting the words The television debates may also be organized by other ; Part seven shall be amended by replacing the words the National Television Company of Ukraine with the words respective broadcaster ; Part nine of Article 64 shall be amended by deleting the words on the First National Channel of the National Television Company of Ukraine and on the First Channel of the National Radio Company of Ukraine ; 5) the Law of Ukraine On Elections of People s Deputies of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 2012, No , p.73): Part seven of Article 71 shall be amended by deleting the words and the National Television Company of Ukraine, the National Radio Company of Ukraine (for broadcasters) ;

12 Part eight of Article 72 shall be amended by deleting the words the National Television Company of Ukraine, the National Radio Company of Ukraine ; the second sentence of Part fourteen of Article 74 shall be amended by deleting the words and broadcast on the first channels of the National Television Company of Ukraine and the National Radio Company of Ukraine.

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