(For checking the up-to-dateness see the PDF-version)

 

Federal Act on the Austrian Broadcasting Corporation (ORF Act) Part 1

Establishment and public mandate of "Oesterreichischer Rundfunk" (Austrian Broadcasting Corporation)

"Austrian Broadcasting Corporation" Foundation

§ 1. (1) The purpose of this Federal Act is to establish a foundation under public law with the name of ''Oesterreichischer Rundfunk'' (Austrian Broadcasting Corporation). The Foundation has its business seat in Vienna and is a legal entity.

(2) The aim of the Foundation is to comply with the public mandate of the Austrian Broadcasting Corporation within the scope of its corporate objectives (§ 2). The public mandate includes the duties under § 3 to § 5.

(3) In compliance with its mandate, the Austrian Broadcasting Corporation shall take into account the principles of Austrian constitutional law, especially with regard to the country's federal structure pursuant to the principle of equal treatment for all federal provinces, and the principle of freedom of the arts, and shall further ensure an objective and unbiased nature of news coverage, due regard for the diversity of opinions and a balanced focus of channels, to protect the independence of persons and organs of the Austrian Broadcasting Corporation entrusted with the fulfilment of the duties of the Austrian Broadcasting Corporation in accordance with the provisions of this Federal Act.

(4) To the extent that it engages in activities under the public mandate, the Austrian Broadcasting Corporation is a non-profit undertaking; it must be registered in the company register of the Vienna Commercial Court and is considered a business entity within the meaning of the Business Code.

(5) Any terms referring to persons used in this Federal Act shall apply to female and male persons alike.

Definitions

     § 1a. Within the meaning of this Federal Act,

1.

"audiovisual media service" means a service which is offered under the editorial responsibility of the Austrian Broadcasting Corporation or one of its subsidiaries by way of communications networks (§ 3 subparagraph 11 of the 2003 Telecommunications Act, Federal Law Gazette I No. 70) and the principal purpose of which is the provision of programmes in order to inform, entertain or educate the general public;

2.

"television channel" means an audiovisual media service provided for simultaneous viewing of programmes on the basis of a programme schedule;

3.

"radio channel" means a service offered under the editorial responsibility of the Austrian Broadcasting Corporation which is provided for the simultaneous reception of radio programmes on the basis of a programme schedule;

4.

"on-demand service" means an audiovisual media service provided for the reception of programmes at the moment chosen by the user and at the user’s individual request on the basis of a specified catalogue;

5.

"programme"

a)

on television channels and in on-demand services means an individual, self-contained set of moving

images with or without sound which is limited in terms of time and constitutes an item within a schedule in the case of television channels or a catalogue in the case of on-demand services;

b)

on radio channels means an individual, self-contained item of broadcasting which is limited in terms of time;

6.

"commercial communication" means any announcement, or representation in words or pictures which

a)

is designed to promote, directly or indirectly, the goods, services or image of a natural or legal entity

pursuing an economic activity, or

b)

is designed to support a cause or idea

and is added to or contained in a programme or a service in return for payment or for similar consideration or, in the case of a), for self-promotional purposes. In any event, commercial communication includes product placement, the representation of production props of insignificant value, sponsorship announcements and advertising pursuant to subparagraph 8;

7.

"surreptitious advertising" means the representation in words or pictures of goods, services, the name, the trade mark or the activities of a producer of goods or a provider of services when such representation is intended by the Austrian Broadcasting Corporation or one of its subsidiaries to serve as advertising and might mislead the public as to the nature of such representation. Such representation shall, in particular, be considered as intentional if it is done in return for payment or for similar consideration;

8.

"television or radio advertising (advertising)" means

a)

any form of announcement broadcast whether in return for payment or for similar consideration or for

self-promotional purposes in connection with a trade, business, craft or profession in order to promote the supply of goods or services, including immovable property, rights and obligations, in return for payment, or

b)

any form of announcement broadcast whether in return for payment or for similar consideration in order to support a cause or idea ;

9.

"teleshopping" means direct offers broadcast to the public on television channels with a view to the supply of goods or services, including immovable property, rights and obligations, in return for payment;

10.

"product placement" means any form of commercial communication consisting of the inclusion of or reference to a product, a service or a trade mark thereof in a programme, in return for payment or for similar consideration, so that it is featured within a programme. The provision of goods or services free of charge, such as production props or prizes, shall not be considered to be product placement if the goods or services involved are of insignificant value;

11.

"sponsorship" means that a public or private undertaking not engaged in providing audiovisual media services or in the production of audiovisual works or of radio channels or programmes contributes to the financing of such works with a view to promoting the name, trade mark, image, activities or products of the undertaking.

Business objective and financing of activities

§ 2. (1) The business objective of the Austrian Broadcasting Corporation, unless otherwise specified in this Federal Act, comprises the following:

1.

the operation of broadcasting,

2.

the operation of teletext services related to the activity under subparagraph 1 and the provision of online

services related to the activity under subparagraph 1,

3.

the operation of technical installations necessary for the operation of broadcasting and teletext services or the provision of online services,

4.

all reasonable business transactions and measures required for the activities under subparagraphs 1 to 3 or for the marketing of these activities.

(2) The Austrian Broadcasting Corporation is authorised to establish branch offices in Austria and abroad and to found subsidiaries and hold shares in other undertakings in Austria and abroad, if the latter pursue the same business objective or if this is required by the business objective stated in paragraph 1. The Austrian Broadcasting Corporation is also authorised for investment purposes to acquire shares of undertakings with a different business objective, provided that the share in such undertakings does not exceed 25 per cent.

 

(3) The activities of subsidiaries of the Austrian Broadcasting Corporation and undertakings associated with it shall be subject to the provisions of this Federal Act unless otherwise expressly provided. The provisions of § 27, § 39 to § 39c and § 40 paragraphs 1 to 4 and 6 shall not apply to subsidiaries or associated undertakings which do not carry out any activities covered by the public mandate.

(4) Contractual cooperation between the Austrian Broadcasting Corporation and other undertakings must be in compliance with non-discriminatory conditions.

Service provision mandate

§ 3. (1) The Austrian Broadcasting Corporation, together with all regional studios, must provide

1.

three nation-wide and nine province-wide radio channels, and

2.

two nation-wide television channels.

 

The Austrian Broadcasting Corporation must ensure that, subject to technical development and economic feasibility, all inhabitants of the national territory who are authorised to operate a radio or television receiver are consistently and permanently provided with one province-wide and two nation-wide radio channels and two nation-wide television channels.

(2) The nine province-wide radio channels are produced by the regional studios. Some radio programmes which are produced by a regional studio and in which there is a special public interest may also be broadcast on a nation-wide basis. In the television channels, the interests of the provinces must be taken into account by regional programmes at regular intervals and by reasonable shares of nation-wide channels. The relevant programmes are determined by the Regional Directors.

(3) The channels specified in paragraph 1 subparagraphs 1 and 2 must in any case be provided by terrestrial distribution. With regard to the third nation-wide radio channel with predominant foreign-language content, in deviation from paragraph 1 second sentence, the same provision level that was applicable to that channel on 1 May 1997 shall apply.

(4) Subject to technical development and availability of transmission capacities, economic feasibility and the digitisation concept devised under § 21 of the Audiovisual Media Services Act, Federal Law Gazette I No. 84/2001, the Austrian Broadcasting Corporation shall ensure that the channels specified in paragraph 1 are supplied by terrestrial distribution, using digital technology pursuant to paragraph 1 (using the DVB-T transmission standard in respect of the channels specified in paragraph 1 subparagraph 2). Broadcasts of channels via satellite must be carried out in conformity with the technical development and economic feasibility and by using digital technology.

(4a) Subject to technical developments and economic feasibility the Austrian Broadcasting Corporation may provide the channels specified in paragraph 1 subparagraphs 1 and 2 and in paragraph 8 online, without the possibility of saving them, at the same time the channels are broadcast. Furthermore, the Austrian Broadcasting Corporation may provide such channels online without the possibility of saving them with a delay in time of up to 24 hours. The regulatory authority shall be notified of the start and end of the simultaneous and time-delayed provision of such a channel. The channels may only be provided unaltered. Broadcasting gaps required for legal reasons or resulting from the omission of commercial communication shall be excluded therefrom. Such broadcasting gaps may be filled by the repetition of elements of the channels which were broadcast within the previous 24 hours on the same channel. Filling broadcasting gaps with commercial communication shall not be permitted.

(5) The service provision mandate shall also include

1.

the operation of teletext services associated with channels under paragraphs 1 and 8, and

2.

the provision of online services pursuant to § 4e and § 4f associated with channels under paragraphs 1

and 8.

(6) The Austrian Broadcasting Corporation may operate and disseminate, subject to technical development and economic feasibility and transmission capacities available outside the FM range, a radio channel for Austrians abroad and as a means of presenting Austria to the world (foreign broadcasting service). The regulatory authority shall be notified of the start and end of the operation of such channel.

(7) The Austrian Broadcasting Corporation may also operate and disseminate a radio channel, subject to telecommunication licences and using transmission capacities available in the medium-wave range. The regulatory authority shall be notified of the start and end of the operation of such channel.

 

(8) The service provision mandate shall also include the operation of a special-interest channel for sports pursuant to § 4b, and a special-interest channel for information and culture pursuant to § 4c, and the broadcasting of a television channel pursuant to § 4d.

Core public mandate

§ 4. (1) The Austrian Broadcasting Corporation, by means of the entirety of its channels and services broadcast and disseminated under § 3, shall ensure:

1.

comprehensive information on all important political, social, economic, cultural and sports-related issues;

2.

promotion of understanding for all questions of democratic society;

3.

promotion of Austrian identity from the perspective of European history and integration;

4.

promotion of understanding for European integration;

5.

presentation and promotion of arts, culture and sciences;

6.

due regard for, and promotion of, Austrian artistic and creative productions;

7.

presentation of varied cultural programmes;

8.

presentation of entertainment;

9.

due regard for all age groups;

10.

due regard for the causes of disabled people;

11.

due regard for the causes of families and children and for the equal treatment of women and men;

12.

due regard for the importance of legally recognised churches and religious communities;

13.

dissemination and promotion of public and youth education with special emphasis on school and adult

education;

14.

information on issues relating to health, and to nature, environmental and consumer protection, having regard to the promotion of understanding of the principles of sustainability;

15.

promotion of public interest in active involvement in sports;

16.

information on importance, function and duties of the federal state and promotion of regional identities

of the provinces;

17.

promotion of understanding of economic issues;

18.

promotion of understanding of questions of European security policy and comprehensive national

defence;

19.

due regard for and promotion of social and humanitarian activities, including raising awareness of the integration of disabled people into society and the labour market. To the extent that individual mandates were assigned to the special-interest channels pursuant to § 4b to § 4d, the Austrian Broadcasting Corporation shall fulfil such duties also in the scope of the channels pursuant to § 3 paragraph 1; its core public mandate shall remain unaffected by the special-interest channels to that extent.

(2) In compliance with its mandate, the Austrian Broadcasting Corporation shall provide a varied overall service comprising information, culture, entertainment and sports for everyone. The services offered must be geared to the variety of listeners’ and viewers’ interests and take a balanced approach in considering these interests. The shares in the overall service must be adequately balanced.

(3) The balanced overall service must contain an equivalent proportion of sophisticated substantive elements. The annual and monthly schedules of television must be designed in such a way that, as a rule, there is a choice of high-quality programmes at evening prime time (8:00 to 10:00 p.m.). In its competition with commercial broadcasters, the Austrian Broadcasting Corporation must ensure the preservation of the unique aspects of the Austrian public-law Broadcasting Corporation in terms of content and performance. The fulfilment of quality criteria must be subject to constant evaluation.

(4) In particular, information, cultural and scientific programmes and services must excel on account of their high quality. Furthermore, the Austrian Broadcasting Corporation shall also take special account of Austria's cultural identity, history and political and cultural autonomy as well as the federal structure of the Republic when producing radio and television channels and other services.

(5) In creating its programmes and services, the Austrian Broadcasting Corporation shall also ensure the following:

1.

an objective selection and presentation of information in the form of news and reports including coverage of the legislators' work and broadcasts of their debates, if any;

2.

the submission and presentation of commentaries, viewpoints and critical statements with due regard for the variety of opinions represented in public life;

3.

self-produced commentaries, analyses, and presentations with due regard for the principle of objectivity.

 

(5a) On channels broadcast under § 3, reasonable shares of broadcasting time shall be provided in the languages of ethnic groups that are represented by an ethnic group advisory board. The services broadcast and disseminated pursuant to § 3 paragraph 5 subparagraph 2 shall also include shares in such languages. The extent of shares on channels and in services shall be laid down in the annual programme schedule or the annual service schedule following consultation with the Audience Council.

(6) Independence is not only the right of journalistic and programming staff, but also their duty. Independence means independence from state and party influence as well as from other – electronic or print – media or political and business lobbies.

(7) The staff members of the Austrian Broadcasting Corporation shall be committed to the aims of the core public mandate and shall actively contribute to the fulfilment of these aims.

 

 

(8) In agreement with the Editors’ Council (§ 33 paragraph 7), the Director General shall draw up a code of conduct for journalistic activity in respect of designing content with due regard to the principles laid down in § 32 paragraph 1. When drawing up the code of conduct, the previous paragraphs and the provisions of § 10 paragraphs 1 to 12, considering the court rulings made in this respect, shall particularly be taken into account. The code of conduct shall be examined for adequacy at regular intervals and adjusted, if required. The code of conduct shall require the consent of the Audience Council and the Foundation Council and shall be published on the website of the Austrian Broadcasting Corporation. In addition, the Austrian Broadcasting Corporation shall provide detailed procedures, including contact points, for ensuring compliance with the code of conduct.

Quality assurance system

§ 4a. (1) The Director General shall set up a quality assurance system which defines criteria and procedures to ensure that the core public mandate given pursuant to § 4 is fulfilled, particularly taking into account the independence and self-responsibility of all programming staff, the free exercise of the journalistic profession and the autonomy and self-responsibility of the Directors and Regional Directors.

(2) The quality assurance system shall require the consent of the Foundation Council. To assess the overall performance of the quality assurance system on the basis of the annual report submitted, in particular with regard to compliance with the quality criteria in the essential respects, the Director General, with the consent of the Foundation Council, shall call in an expert. The expert shall be a person not employed by the Corporation, shall have the appropriate qualifications and experience and shall not be bound by instructions and orders in the exercise of his or her function. A permanent committee of the Audience Council (Quality Committee) shall be formed to make recommendations on the quality assurance system (§ 30 paragraph 1 subparagraph 7). The Audience Council shall give reasons for its recommendations.

(3) In addition to developing qualitative criteria, specifying the shares in the related television and radio services attributable to individual content categories in quantitative terms shall also be part of the quality assurance system to ensure that the content (§ 4 paragraphs 1 to 3) and the related decision-making on long-term broadcasting schedules as well as the annual programme schedules are balanced. For that purpose, the Austrian Broadcasting Corporation shall carry out an analysis of the structures of television and radio channels, with the channel coding system used for preparing the report pursuant to § 7 being taken as the basis for categorising the programmes. The Austrian Broadcasting Corporation’s programme schedule for television and radio shall be taken as the basis for specifying such shares. Fluctuation ranges of up to +/- 5 percentage points may be specified for each share of broadcasting time to be reached on the basis of the average share of four years, taking into account external factors concerning the planning of channels and services, programming and service design, such as, in particular, the development of the audience share and the competition situation, the foreseeability of special featured topics, or forecasts of the further commercial development. In any event, interests and needs of the audience shall also be taken into account when specifying such shares.

(4) In qualitative terms, the quality assurance system for television, radio and online services shall also include reasoned statements on the targets formulated in the core public mandate, i.e. the unique aspects of content and performance (§ 4 paragraph 3), the generally high-quality programmes at evening prime time (§ 4 paragraph 3), and the high quality in the fields of information, culture and science (§ 4 paragraph 4).

(5) Within the quality assurance system, audience satisfaction with the offer of channels and content shall be examined by means of continuous representative and qualitative audience monitoring, also with the assistance of external experts in the relevant fields. For the purpose of drawing up and regularly revising the criteria to ensure that programmes are balanced and that the variety of listeners’ and viewers’ interests is considered (§ 4 paragraph 2), the results of representative surveys among viewers and listeners regularly conducted by independent market research undertakings recognised by the Austrian Broadcasting Corporation or its subsidiaries or representative surveys and studies by professionally qualified institutions shall also be taken into account.

(6) At least once a year the Austrian Broadcasting Corporation shall examine and adjust, if required, the criteria and procedures developed by it for adequacy (§ 4 paragraph 3).

(7) The quality assurance system established in accordance with the principles of this provision, as well as the studies and surveys among viewers and listeners conducted for that purpose and the resolutions of the Foundation Council and the Audience Council, shall be made easily, directly and permanently accessible on the website of the Austrian Broadcasting Corporation to the extent this is legally possible and legitimate business interests of the Austrian Broadcasting Corporation are not impaired.

(8) Following a complaint pursuant to § 36 paragraph 1 subparagraph 1 the regulatory authority shall verify compliance with the procedure of drawing up and examining the quality assurance system and shall establish whether and by which facts the above legal provisions were violated, and, in the event of a violation, may give instructions for compliance with the procedure. Such verification by the regulatory authority shall in any event take place at least every two years.

Special mandate for a special-interest channel for sports

§ 4b. (1) Subject to economic feasibility the Austrian Broadcasting Corporation shall operate a specialinterest television channel which, in particular, serves the current coverage of types of sports and sports competitions, including the broadcasting of sports competitions that do not generally have much coverage in Austrian media reporting. On such a channel, the Austrian Broadcasting Corporation shall, in particular:

1.

comprehensively inform the population about sports-related issues (§ 4 paragraph 1 subparagraph 1);

2.

promote public interest in the active involvement in sports (§ 4 paragraph 1 subparagraph 15);

3.

encourage appreciation of the public for less known sports and their rules;

4.

report about types of sports and sports competitions which are also of interest from the popular sports

perspective;

5.

consider regional sports events;

6.

report about health-related aspects of sport and the dangers of doping;

7.

broadcast sports competitions if such transmission is a precondition for Austrian athletes or Austrian

sports teams to participate in international events and such transmission cannot be expected by other broadcasters whose channels can be received in Austria. Coverage shall extend predominantly to sports and sports competitions that are practised or hosted in Austria or in which Austrian athletes or teams participate.

(2) The channel shall be broadcast via satellite and may be broadcast through digital terrestrial multiplex platforms. § 25 paragraph 2 subparagraph 2 of the Audiovisual Media Services Act shall remain unaffected. § 20 paragraph 1 of the Audiovisual Media Services Act shall apply. To calculate the duration of the maximum permissible advertising time, the number of hours broadcast daily shall be multiplied by 1 minute and 45 seconds. The share of television advertising may not exceed 20 per cent of one full hour. Hours mean 24 equal parts of one calendar day.

(3) If another channel is transmitted through the same technical capacity, care shall be taken to permanently designate them accordingly so that a sufficient distinction can be made between them.

(4) Sports competitions that already receive a broad coverage in Austrian media reporting (premium competition) must not be broadcast on the special-interest channel for sports. Such sports competitions include:

1.

competitions in the topmost Austrian nation-wide professional male football league unless they are competitions of the youth leagues;

2.

competitions of European cross-border professional male football leagues and cup competitions as well as competitions of professional male football world and European championships unless they are competitions of the youth leagues or qualifying games of low public interest;

3.

competitions of the alpine or Nordic skiing world cups and competitions of alpine or Nordic skiing world championships;

4.

competitions of summer and winter olympic games unless, in exceptional cases, such competitions do not have much coverage in Austrian media reporting;

5.

competitions of Formula 1.

It shall be permitted to broadcast the sports competitions named in the first sentence a reasonable time after the competition, which results in such competitions no longer being qualified as premium competitions.

(5) A service concept (§ 5a) shall be drawn up for the special-interest channel for sports. Special mandate for a special-interest channel for information and culture

§ 4c. (1) Subject to economic feasibility, the Austrian Broadcasting Corporation shall operate a specialinterest television channel which specifically serves to fulfil the mandates pursuant to § 4 paragraphs 1 subparagraphs 1 to 7, 13, 14, 16 and 17, in particular by means of information and discussion programmes, documentaries, magazine programmes and broadcasts of cultural events, and contains a comprehensive offer of programmes of an informative or educational character and cultural programmes. The channel shall consist of sophisticated substantive elements (§ 4 paragraph 3) and shall be of high quality (§ 4 paragraph 4). The channel shall be designed to include, in particular, current topics and to serve as a transmission platform for programmes that have already been broadcast on the channels pursuant to § 3 paragraph 1. The special-interest channel shall deal with issues related to Austria and with European and international issues in equal proportions.

(2) The channel shall be broadcast via satellite and may be broadcast through digital terrestrial multiplex platforms. § 25 paragraph 2 subparagraph 2 of the Audiovisual Media Services Act shall remain unaffected. § 20 paragraph 1 of the Audiovisual Media Services Act shall apply. The provisions on the prior evaluation (§ 6 to § 6b) shall also apply to such channel. To calculate the duration of the maximum permissible advertising time, the number of hours broadcast daily shall be multiplied by 1 minute and 45 seconds. The share of television advertising may not exceed 20 per cent of one full hour. Hours mean 24 equal parts of one calendar day.

(3) If another channel is transmitted through the same technical capacity, care shall be taken to permanently designate them accordingly so that a sufficient distinction can be made between them.

(4) A prior evaluation (§ 6 to § 6b) shall be carried out before the initial broadcasting of the special-interest channel for information and culture.

Broadcasting of a television channel for a Europe-wide audience

     § 4d. Subject to technical development and economic feasibility, the Austrian Broadcasting Corporation shall broadcast one of its two televisions channels operated pursuant to § 3 paragraph 1 subparagraph 2 specifically for Europe-wide reception via satellite if such channel is predominantly made up of informative, educational and cultural programmes and is suited to present Austria in Europe. The Austrian Broadcasting Corporation may close broadcasting gaps arising for legal reasons by broadcasting programmes, excluding commercials, of the other television channel operated pursuant to § 3 paragraph 1 subparagraph 2, and programmes which have already been broadcast on channels pursuant to § 3 paragraph 1 or 8. Such programmes shall contain information on Austria or reflect the Austrian culture, language, history, or Austrian social life. Special mandate for an online service

§ 4e. (1) To fulfil its core public mandate (§ 4), the Austrian Broadcasting Corporation shall also provide an online service including, in particular, content supporting programmes or content directly related to its channels.

Subject to technical development and economic feasibility, such online service shall include:

1.

information on the Austrian Broadcasting Corporation and its channels operated, and services provided pursuant to § 3;

2.

daily news overviews (paragraph 2);

3.

services supporting the programmes broadcast on the channels pursuant to § 3 paragraphs 1 and 8

(content supporting programmes, paragraph 3); and

4.

an on-demand service for the programmes broadcast on the channels pursuant to § 3 paragraphs 1 and 8 (paragraph 4).

(2) News overviews (paragraph 1 subparagraph 2) shall consist of text and images and may include individual supplementary audio, audiovisual and interactive elements as well as podcasts (audio and video). News overviews shall cover the most important daily events in politics, business, current affairs and local news, the weather, culture, science, sports, ethnic groups and religion at the international, European and national levels. The individual elements of news overviews shall be provided only for as long as they are topical but no longer than seven days from the date they were first provided for viewing on the platform of the Austrian Broadcasting Corporation. It shall be permitted to provide older elements of news overviews that are directly related to current coverage for as long as current reports are being published. Coverage may not be in-depth, and the manner of its presentation and design may not be comparable to that of the online services of daily or weekly newspapers or monthly magazines and may not include a news archive. Separate news overviews at provincial level shall be permitted but shall be restricted to up to 80 daily news reports per province per calendar week. Updates of daily reports during the day shall not count as new daily reports. The coverage of local news shall be permitted only in the context of news coverage at the federal and provincial levels and only to the extent local events are of nationwide interest or, in the event of provincial news coverage, of province-wide interest. Comprehensive coverage of local news shall not be permitted.

(3) Content supporting programmes (paragraph 1 subparagraph 3) shall include:

1.

information on the programme itself and on the persons involved as well as on related programmes, including audio and audiovisual services and supplementary interactive elements as well as podcasts (audio and video), and

2.

information explaining and deepening knowledge of the contents of a programme, including audio and audiovisual services and supplementary interactive elements as well as podcasts (audio and video) to the extent materials and sources available for the relevant radio or television programme or series of programmes are used and support the radio or television programme by deepening knowledge of the topic and content covered by such programme.

Content supporting a programme shall be identified by the name and the broadcasting date of the radio or television programme which it supports. A service supporting programmes may not constitute an independent service that is separate from the specific radio or television programme and its overall design and content may not correspond to that of the online service of newspapers and magazines; in particular, no service which is separate from supporting the specific radio or television programme and deepens knowledge of a subject matter covered by such programme may be provided in the coverage of politics, business, current affairs and local news, culture, science (including technology), sports, and fashion and society news. Content supporting a programme pursuant to subparagraph 2 may be provided only for a period appropriate to the format of the programme, which is no longer than 30 days after the programme was broadcast or, in the case of a programme series, 30 days after the last part of the series was broadcast. To the extent the specific connection to the programme is preserved, it shall be permitted to provide content supporting a programme for an appropriate period before the relevant programme is broadcast.

(4) The on-demand service pursuant to paragraph 1 subparagraph 4 shall only include programmes (including radio programmes) which were produced by the Austrian Broadcasting Corporation itself or on its behalf, even if in cooperation with third parties. Appropriate subject indexing shall be provided. Programmes shall be provided for viewing or listening without the possibility of saving them (with the exception of podcasts) for a period of up to seven days after they were broadcast, in the case of sports competitions within the meaning of § 4b paragraph 4 for up to 24 hours after they were broadcast. Subject to the service concept (paragraph 5), archives with content relating to contemporary history or cultural history may be provided for viewing or listening also for an unlimited period. Advance notices of programmes are permitted within an appropriate period before the programmes are broadcast on the channels pursuant to § 3 paragraphs 1 and 8.

(5) The online service pursuant to paragraphs 1 to 4 may be provided only after a service concept (§ 5a) has been drawn up and shall not be subject to a prior evaluation. If, due to the commercial exploitation of the services pursuant to paragraph 1 the requirements of § 6 are met, a prior evaluation shall be carried out (§ 6 to § 6b).

Provision of further online services

§ 4f. (1) Subject to technical development and economic feasibility, the Austrian Broadcasting Corporation shall, in addition to the services pursuant to § 4e, provide further online services which make an effective contribution to fulfilling the core public mandate (§ 4). Such services shall also include on-demand services. Further online services may be provided only after a service concept (§ 5a) has been drawn up; if the requirements of § 6 are met, a prior evaluation (§ 6 to § 6b) shall be carried out.

(2) The following services may not be provided within the scope of the public mandate:

1.

advertisement portals, advertisements or small advertisements,

2.

industry registers and directories,

3.

price comparison portals and calculation programmes (e.g. price calculators, insurance calculators),

4.

assessment portals for services, institutions and products to the extent they do not relate to a specific

programme or a specific service content,

5.

dating, social networking and job portals,

6.

bartering platforms unless they serve charitable purposes,

7.

business networks,

8.

telecommunications services (including access providing),

9.

erotic services,

10.

billing for third parties (with the exception of undertakings of the Austrian Broadcasting Corporation group),

11.

gambling and betting,

12.

software services, unless as required by the Austrian Broadcasting Corporation to provide its own

services,

13.

route planners, unless related to traffic information,

14.

music downloads of commercial third-party productions,

15.

games and entertainment services, unless they are related to the core public mandate in a manner

exceeding § 4 paragraph 1 subparagraph 8 of the ORF Act; games and entertainment offers which are not related to programmes or services shall not be permitted in any event,

16.

text message services, with the exception of services relating to the Austrian Broadcasting Corporation’s own channels or services or supporting programmes within the meaning of § 4e paragraph 3,

17.

search services, with the exception of services relating to the Austrian Broadcasting Corporation’s own channels or services;

18.

online auctions, with the exception of non-commercial auctions for public purposes;

19.

e-commerce and e-banking;

20.

ringtones and e-cards;

21.

photo downloads without any relationship to a programme;

22.

event calendars, unless such calendars support services pursuant to § 4e paragraph 1 and § 4f

paragraph 1 and do not constitute an extensive and separate service;

23.

forums, chats and other services for the publication of content by users; however, editorially supported non-permanent services for the sending or publishing of content by users in relation to television or radio channels broadcast all over Austria shall be permitted. In order for user content to be published through such services users shall be required to register, providing their first and last names, and home address. Registration shall be permitted only if users, being aware of the facts of the case, have without compulsion expressly consented to the use of their details in the specific matter. Where there is substantiated suspicion that details used for registration are incorrect, the Austrian Broadcasting Corporation shall request users to provide evidence of the correctness of their details within a reasonable period or otherwise delete their registration profile, and exclude users whose details are obviously incorrect from registration. Details submitted during registration may not be used for purposes other than registration. At a user’s request, all details, including the registration profile, shall be deleted.

24.

links which do not serve to supplement, deepen knowledge of or explain content of programmes or services produced by the Austrian Broadcasting Corporation (also by associated undertakings); such links may not directly lead to invitations to purchase;

25.

social networks and links to and other cooperations with such social networks, unless these are related to the Austrian Broadcasting Corporation’s own daily online news overviews;

26.

specialist services and services tailored to target groups, the form and content of which exceed nonspecialised services of general interest, unless these are services supporting programmes; services for charitable purposes shall be permitted in any event;

27.

advice portals without any relation to a programme;

28.

services designed especially for mobile terminal equipment.

Trial operation

§ 4g. (1) To the extent that this Federal Act provides for the prior evaluation (§ 6 to § 6b) of a new service, the Austrian Broadcasting Corporation may operate or provide such new service in a trial operation without a prior evaluation for a maximum period of six months to

1.

gain the knowledge required for proposing a new service (§ 6a paragraph 1) or for carrying out a prior evaluation, or

2.

obtain information on the anticipated need for the new service, or

3.

trial new technical and/or journalistic concepts and solutions.

 

(2) The Austrian Broadcasting Corporation shall restrict the number of users during trial operation, in particular by technical means, to avoid that the trial operation corresponds to launching a new service within the meaning of § 6 paragraph 2.

(3) Commencement of the trial period shall require approval by the regulatory authority. Approval shall be granted if the requirements of paragraphs 1 and 2 are met. In its approval decision, the regulatory authority shall impose obligations to ensure compliance with the statutory requirements pursuant to paragraphs 1 and 2.

Further special mandates

§ 5. (1) The Austrian Broadcasting Corporation may also in part comply with its mandate under § 4 paragraph 5a by broadcasting programmes according to a prior contractual agreement with other broadcasters in the areas of autochthonous ethnic groups in Austria using the transmission capacities allocated to these broadcasters. The extent of programmes broadcast in such manner shall be counted towards the shares of broadcasting time specified in § 4 paragraph 5a as decided by the Foundation Council at the proposal of the Director General following consultation with the Audience Council. Similarly, the Austrian Broadcasting Corporation may participate in the creation and production of programmes by other broadcasters which broadcast a separate channel geared to the needs of the ethnic groups. The regulatory authority shall be notified of the start and end of broadcasting as specified in the first sentence and of any cooperation as specified in the third sentence.

(2) The television information programmes (§ 3 paragraph 1) must be designed in conformity with technical developments and economic feasibility in such a way that they may be more easily followed by the deaf and hearing-impaired. In addition, it shall be ensured that the respective share of programmes made accessible barrier-free for people with a vision or hearing disability is continuously increased by means of suitable measures as compared to the share as of 31 December 2009. For this purpose, the Austrian Broadcasting Corporation, after having consulted with organisations representing people with a vision or hearing disability, shall draw up a plan to further expand barrier-free access to television channels pursuant to § 3 paragraph 1 subparagraph 2 and to its online service, including measures for gradual implementation. The plan shall be reviewed annually and adjusted, if necessary. In the medium term, the Austrian Broadcasting Corporation shall strive to provide subtitles for all of its television programmes with language content.

(3) The verbal content of the third nation-wide radio channel shall predominantly be in foreign languages.

(4) Beyond its service provision mandate, the Austrian Broadcasting Corporation may also cooperate with other public-law broadcasters or establish joint ventures for the creation of programmes or channels. The regulatory authority shall be notified of any cooperations entered into and the establishment of joint ventures as well as their termination.

(5) The Austrian Broadcasting Corporation shall reserve a reasonable proportion of its funds for the activities of the nine regional studios.

(6) The Austrian Broadcasting Corporation shall at all times provide free of charge such transmission time as is necessary and expedient to

1.

federal and provincial authorities as well as local authorities within the dissemination area for appeals to the public in crises and emergency situations and other important public notices, and

2.

private entities for appeals in justified and urgent cases of emergency to prevent danger to the health or lives of humans.

The above provisions shall also apply to dissemination in online services.

 

Service concept

§ 5a. (1) To the extent stipulated by this Act, service concepts serve to specify the statutory mandate in respect of the channels and services provided in accordance with the public mandate. Service concepts shall include, in particular, details on the following:

1.

content categories;

2.

target groups;

3.

time schedules of the channels or services, including any time limits;

4.

technical usability of or access to the services;

5.

any special quality criteria;

6.

any complementary or exclusive relationships to other channels or services of the Austrian Broadcasting

Corporation;

7.

topics, formats, programme lines or other details on what is to be a major, just a minor or no subject matter at all of the channel or service;

8.

compliance with the requirements stipulated by this Act, in particular details on the compatibility of the channel or service with § 4.

(2) Service concepts shall be submitted to the regulatory authority after they have been first drawn up and after any modification which is not just a minor modification. Within eight weeks of submission, the regulatory authority shall request amendment if the service concept is incomplete. Within eight weeks of submission of the complete service concept, the regulatory authority shall prohibit the implementation of the service concept if the operation or provision of the respective channel or service does not comply with the requirements stipulated by this Act or if a prior evaluation pursuant to § 6 to § 6b must be carried out. If the regulatory authority does not prohibit the implementation of the service concept within the above-mentioned period, the Austrian Broadcasting shall make the service concept permanently accessible on its website in an easy-to-find and direct manner for the duration of its validity. The channel or service may be operated or provided as soon as the service concept has been published.

(3) Paragraph 2 shall not apply to service concepts drawn up in the context of a prior evaluation (§ 6a paragraph 1). It shall apply to service concepts drawn up and approved in the context of a prior evaluation only if not just minor amendments are made, unless another prior evaluation must be carried out.

(4) The Austrian Broadcasting Corporation shall observe the respective service concept when designing its channels and services, and shall comply with the limits set by the service concept. Part 1a

Prior evaluation

Scope of application

§ 6. (1) A prior evaluation shall be carried out in the cases stipulated by this Act and if the Austrian Broadcasting Corporation intends to introduce a new service within the meaning of paragraph 2.

(2) New services are

1.

channels or services pursuant to § 3 which are operated or provided for the first time and differ considerably from the channels and services provided by the Austrian Broadcasting Corporation pursuant to § 3 to § 5 at the time of the prior evaluation, or

2.

existing channels or services pursuant to § 3 which are amended to the effect that the amended channel or service is expected to differ considerably from the existing channel or service.

(3) A considerable difference within the meaning of paragraph 2 exists, in particular,

1.

if the services considerably differ from the existing channels or services pursuant to § 3 in terms of their content and the form of their technical usability or access, or

2.

if the services address a considerably different target group than existing channels or services pursuant to § 3.

A considerable difference is indicated if the costs of creating or amending a channel or service amount to more than 2 per cent of the costs of the public mandate.

(4) Decisive for assessing whether or not a considerable difference within the meaning of paragraph 3 is given, are, in particular, the service concept (§ 5a), to the extent a service concept was drawn up, the broadcasting schedules, and the annual programme and service schedules (§ 21 paragraph 1 subparagraph 3 and § 21 paragraph 2 subparagraph 2).

(5) Notwithstanding § 4g, a new service may not be provided before it has been approved pursuant to § 6b.

Procedure

§ 6a. (1) The Austrian Broadcasting Corporation shall prepare a proposal for a new service for prior evaluation, containing the following:

1.

a service concept (§ 5a);

2.

detailed reasons as to why the new service falls within the business objective and seems to be expedient

to effectively perform the core public mandate and the special mandates stipulated by this Act, taking into account the special requirements demanded from public-service broadcasting set out in § 4 paragraphs 2 to 6 and § 10;

3.

a description of the financing of the new service, and

4.

a description of the anticipated impact of the new service on the competitive situation in the market

relevant to the new service and on the variety of the service for viewers, listeners and users.

(2) The Austrian Broadcasting Corporation shall submit the proposal for the new service to the regulatory authority, the Austrian Federal Economic Chamber and the Federal Chamber of Labour, and shall make it permanently accessible on its website in an easy-to-find and direct manner for the duration of the period for submitting opinions. When submitting such proposal, the Austrian Broadcasting Corporation shall point out that all persons affected by the intended service may submit their opinions within a reasonable, but at least six-week, period. The Austrian Broadcasting Corporation shall publish opinions received on its website, unless they contain confidential data. Persons affected may submit confidential data in respect of the effects on competition directly to the Federal Competition Authority. The Federal Competition Authority shall use such data for the purposes of paragraphs 4 and 5 in compliance with the obligation of official secrecy.

(3) Unless it refrains from introducing the new service, the Austrian Broadcasting Corporation shall submit the proposal, the opinions and any amendments to the service concept made due to the opinions to the regulatory authority after the end of the period specified in paragraph 2, and shall apply for approval of the new service.

(4) The regulatory authority shall provide all documents to the Advisory Council established pursuant to § 6c and the Federal Competition Authority. The Advisory Council and the Federal Competition Authority shall submit their opinions within a period of six weeks as follows:

1.

the Advisory Council on the question of whether, from a journalistic viewpoint, the new service seems expedient to fulfil effectively the public mandate and the special mandates stipulated by this Act, taking into account the special requirements for public-service broadcasting in § 4 paragraphs 2 to 6 and § 10, and on the question of the anticipated impact on the variety of services for viewers, listeners and users;

2.

the Federal Competition Authority on the anticipated impact of the new service on the competitive situation of other media undertakings active in Austria.

(5) Apart from the Austrian Broadcasting Corporation as the applicant, the Federal Competition Authority shall also have the status of a party in the proceedings before the regulatory authority to preserve the interests of competition; it may lodge a complaint against the decision with the Administrative Court.

Decision

§ 6b. (1) The regulatory authority shall approve the new service if the new service meets the requirements stipulated by this Act and

1.

it is to be expected that the new service contributes to the fulfilment of the social, democratic and cultural needs of the Austrian people and to the effective performance of the core public mandate, in particular to the achievement of the objectives specified in § 4 paragraphs 1 and 5a, and

2.

it is not to be expected that the new service will have negative effects on competition in the market relevant to the service and on the variety of services for viewers, listeners and users which are disproportionate as compared to the contribution to the fulfilment of the core public mandate effected by the new service.

(2) Approval pursuant to paragraph 1 shall be given subject to certain obligations if such obligations are required to reduce the effects of the new service on the competitive situation in the market relevant to the service or on the variety of the service for viewers, listeners and users to an extent which is not disproportionate within the meaning of paragraph 1 subparagraph 2. Obligations may, in particular, concern the technical design and usability of the service and the categories of content covered by the service. They may also be imposed to secure the commitments in terms of content made by the Austrian Broadcasting Corporation in the service concept. Specific content of the new service may not be prescribed by way of obligations imposed.

(3) In its evaluation pursuant to paragraphs 1 and 2, the regulatory authority shall particularly take into account the following:

1.

the existing services covered by the public mandate;

2.

the existing services of other media undertakings active in the Austrian media market which are

comparable to the planned service;

3.

the special requirements stipulated in § 4 paragraphs 2 to 6 and § 10 and the anticipated added value of the new service as compared to other services in the Austrian media market which would usually be comparable;

4.

any promotion of the Austrian language and culture which might be effected by the new service, and the necessity to have a media service of a specifically Austrian character in the categories specified in § 4 paragraph 1, provided the service proposed by the Austrian Broadcasting Corporation is expected to be of such a character;

5.

any positive impact of the new service on competition in particular due to the innovative journalistic or technical design of the new service as compared to existing media services;

6.

any positive impact of the new service on the variety of services for viewers, listeners and users;

7.

the opinions pursuant to § 6a paragraph 4.

(4) In the proceedings, § 66 paragraph 2 of the General Administrative Procedure Act shall apply, provided that the appellate authority may repeal the decision and remand the matter to an authority of lower instance even if the facts of the case presented to the authority have been investigated in a manner so incomplete that the appointment of an expert seems necessary.

(5) The Austrian Broadcasting Corporation shall make the service concept (§ 5a), including the approval by the regulatory authority, permanently accessible on its website in an easy-to-find and direct manner for the duration of its validity.

Advisory Council

§ 6c. (1) An Advisory Council shall be established within the regulatory authority which is to submit the opinion pursuant to § 6a paragraph 4 subparagraph 1. The Advisory Council shall have five members appointed by the Federal Government for a period of five years. The members of the Advisory Council shall have the right to teach at a university in Austria or abroad or have another outstanding professional qualification, and shall have special knowledge of media law, media sciences or economic sciences due to their previous academic activities.

(2) The Federal Chancellor shall issue a regulation setting out details of the remuneration of the members and the organisation of the Advisory Council.

(3) Furthermore, the Advisory Council shall have the opportunity to submit its opinion in proceedings in which the regulatory authority must determine, ex officio or on the basis of a complaint or an application, whether or not a service provided pursuant to § 3 paragraph 5 subparagraph 2 or a channel operated pursuant to § 3 paragraph 8 complies with the limits set by § 4b to § 4f and the service concepts (§ 5a), including any obligations imposed pursuant to § 6b paragraph 2.

Part 1b

Reporting obligations

Annual report

     § 7. (1) The Austrian Broadcasting Corporation must submit a report on the fulfilment of its mandate under

§ 3 to § 5 and on the implementation of § 11 in the previous calendar year to the Federal Chancellor and the

 

regulatory authority by 31 March of each year. The report must be structured in accordance with the mandates under § 3 to § 5 and the requirements of § 11 and must contain a detailed description of the measures and activities undertaken in conformity with the mandates, especially in comparison with the previous year. The report must also include details on the degrees of coverage achieved which need to be measured according to well-established scientific methods, and must specify the extent to which income was earned from commercial communication. In addition, the type and scope of the commercial activities of the Austrian Broadcasting Corporation and its subsidiaries shall be described in a separate part. The report shall include a description of the application of and compliance with the criteria and procedures set by the quality assurance system (§ 4a) for designing the content of services.

(2) The Federal Chancellor shall submit the report to the National Council and the Federal Council.

 

 

(3) Furthermore, the Austrian Broadcasting Corporation shall make the report easily, directly and permanently accessible to the public on its website.

(4) Following their publication (§ 277 and § 280 of the Business Code), the Austrian Broadcasting Corporation shall make the annual financial statements and consolidated annual financial statements easily, directly and permanently accessible to the public on its website until the annual financial statements of the subsequent year are published.

Part 1c

Other activities of the Austrian Broadcasting Corporation

Joint use of transmission facilities

§ 8. (1) Subject to technical possibilities, the Austrian Broadcasting Corporation and its subsidiaries shall permit other broadcasters and terrestrial multiplex operators to jointly use its transmission facilities for a reasonable fee.

(2) Without prejudice to other contractual regulations, the transmission facilities shall be provided on equal conditions and in the same quality which are applied to the broadcasting of channels operated by the Austrian Broadcasting Corporation.

(3) Upon request, the Austrian Broadcasting Corporation (its subsidiary) shall submit an offer for joint use. If an agreement on the fee for joint use or the reasonable fee is not reached within a period of six weeks of receipt of a corresponding request, any party involved may apply to the regulatory authority for a decision. The regulatory authority shall decide within four months of receipt of the application. The decision shall replace any agreement to be made.

Commercial activities

§ 8a. (1) "Commercial activities" within the meaning of this Act are activities included in the business objective but exceeding the public mandate (§ 1 paragraph 2).

(2) Commercial activities shall be separated in organisational and financial terms from activities performed in the framework of the public mandate (§ 39 paragraph 4). No funds from the programme fees (§ 31) may be used for them. They may be carried out for profit.

 

(3) Commercial activities shall be carried out by subsidiaries or by undertakings associated with the Austrian Broadcasting Corporation (§ 2 paragraph 2) which do not carry out any activities within the scope of the public mandate unless such activities are closely connected to activities within the scope of the public mandate, or the sales generated by such activities are of minor extent only. § 2 paragraph 4 shall apply mutatis mutandis to the contractual cooperation with undertakings.

(4) Commercial communication on the channels operated and the services provided pursuant to § 3 shall be deemed a commercial activity. Paragraph 3 shall apply to commercial communication only in relation to its distribution and marketing.

(5) Earnings from commercial activities in connection with the public mandate shall be taken into account when determining the net costs of the public mandate (§ 31).

(6) Not included in the scope of mandates of the Austrian Broadcasting Corporation or its subsidiaries are

1.

the publication or distribution of products, including periodical print media, which are not primarily intended to provide information on channels and contents of programmes. This does not apply to the publication and distribution of other products that are directly derived from the channels broadcast by the Austrian Broadcasting Corporation under § 3 paragraph 1;

2.

advertising or similar such marketing activities for third parties. Commercial special-interest channels

§ 9. (1) In addition to the mandates pursuant to § 3 to § 5, the Austrian Broadcasting Corporation, within its business objective, may also operate, through

1.

subsidiaries in which the Austrian Broadcasting Corporation must have the possibility of influence as regulated in § 244 paragraph 2 in connection with paragraphs 4 and 5 of the Business Code, or

2.

such subsidiaries in contractual cooperation with other undertakings, broadcasting channels in Austria with basically similar content (special-interest channels) via satellite, cable or digital terrestrial transmission capacities.

(2) Operating such channels shall constitute a commercial activity (§ 8a).

(3) The provisions of § 5 paragraph 2 last sentence, § 10 paragraphs 1, 2, 11 to 14, § 11, § 13, § 14 paragraphs 1, 2 and 5 second and third sentences, paragraphs 8 and 9, § 15 paragraphs 1 and 3 and § 16 and § 17 paragraphs 1 to 3 and 6 shall apply. § 14 paragraph 6 subparagraph 1 shall apply, provided that only announcements of programmes and materials supporting the relevant channel operated pursuant to § 9 are not included in the maximum permissible advertising time for that channel. Advertising on such channels must not exceed 10 per cent of the daily transmission time.

(4) § 10 paragraphs 1, 2 and 11 to 13, § 11, § 12, § 13 paragraphs 1 to 4 first sentence, paragraph 5 second and third sentences, paragraph 7 penultimate and last sentences, and paragraph 8, § 14 paragraphs 1 to 6 and § 15 to § 17 shall apply mutatis mutandis to the operation of such channels.

(5) Special-interest channels may not be offered under the trade marks of "Austrian Broadcasting Corporation", "ORF" or other trade marks created in the scope of fulfilment of the public mandate or capable of being confused with them.

(6) (Note: repealed by Federal Law Gazette I No. 50/2010) Mobile terrestrial television

§ 9a. (1) In addition to the mandates pursuant to § 3 to § 5, the Austrian Broadcasting Corporation, within its business objective, may also operate through

1.

subsidiaries in which the Austrian Broadcasting Corporation must have the possibility of influence as regulated in § 244 paragraph 2 in connection with paragraphs 4 and 5 of the Business Code, or

2.

such subsidiaries in contractual cooperation with other undertakings. a maximum of two television channels in Austria with content specifically prepared for mobile use and designed for dissemination via a multiplex platform for mobile terrestrial broadcasting pursuant to § 25a of the Audiovisual Media Services Act. One of these two television channels shall be restricted to preparing and exploiting the services of the channel operated pursuant to § 9 at the time of the Federal Act promulgated in Federal Law Gazette I No. 52/2007 entering into effect, and changes to such channel shall be adopted, having regard to the increased information orientation. One of the two television channels shall constitute the broadcasting of the channel operated pursuant to § 4c.

(2) Operating such channels shall constitute a commercial activity (§ 8a).

(3) The provisions of § 5 paragraph 2 last sentence, § 10 paragraphs 1, 2, 11 to 14, § 11, § 13, § 14 paragraphs 1, 2 and 5 second and third sentences, paragraphs 8 and 9, § 15 paragraphs 1 and 3 and § 16 and § 17 paragraphs 1 to 3 and 6 shall apply. § 14 paragraph 6 subparagraph 1 shall apply, provided that only announcements of programmes and materials supporting the relevant channel operated pursuant to § 9a are not included in the maximum permissible advertising time for that channel. Advertising on such channels must not exceed 10 per cent of the daily transmission time.

Commercial online service

     § 9b. To the extent the Austrian Broadcasting Corporation provides an online service as a commercial online service (§ 8a), care shall be taken to permanently designate such service accordingly so that it can be sufficiently distinguished from online services pursuant to § 3 paragraph 5. Any such commercial online service may not be offered under the trade marks of "Austrian Broadcasting Corporation", "ORF" or other trade marks created in the scope of fulfilment of the public mandate or capable of being confused with them. Commercial communication in services pursuant to § 3 paragraph 5 for such commercial online services shall be subject to the provisions of § 18 and § 31c.

Part 2

Programming principles

Principles concerning content

§ 10. (1) All programmes of the Austrian Broadcasting Corporation must respect the human dignity and fundamental rights of others with regard to presentation and content.

(2) The programmes must not incite others to hatred on grounds of race, sex, age, disability, religion and nationality.

(3) The overall service policy shall strive at quality, innovation, integration, equal rights and understanding.

(4) Comprehensive information is to help form free individual and public opinion in the service of the responsible citizen and thus to contribute to the democratic discourse of the general public.

(5) Information shall be comprehensive, independent, impartial and objective. Any newscasts and reports shall be examined carefully as to their truth and origin, and there shall be a clear distinction between newscasts and commentary.

(6) The diversity of opinions held in public life shall appropriately be taken into account, the human dignity, personal rights and privacy of the individual shall be respected.

(7) Commentaries, analyses and presentations shall be objective and based on reconstructible facts.

(8) As a provider of cultural programmes, the Austrian Broadcasting Corporation is to be both reporter and independent producer and, above all, principal, employer and a forum for Austrian creativity and contemporary art.

(9) The Austrian Broadcasting Corporation shall be devoted to the service of science and education.

(10) Entertainment is to take account not only of the diversity of demands but also of the fact that it shapes modes of conduct, self-perception and identity to an extent hardly achieved by any other sector.

(11) The content offered by the Austrian Broadcasting Corporation shall not include any content which might seriously impair the physical, mental or moral development of minors, in particular content that involves pornography or gratuitous violence.

(12) In the case of radio and television programmes which are likely to impair the physical, mental or moral development of minors, the selection of the time of transmission or other measures shall ensure that minors will not normally see or hear such programmes.

(13) The unencoded transmission of programmes under paragraph 12 shall be preceded by an acoustic warning or identified by the presence of a visual symbol throughout the entire duration. The Federal Government may issue regulations governing the detailed design of optic or acoustic identifiers.

(14) Programmes whose content largely aims at minors must not contain appeals to call value-added services.

Promotion of European works

§ 11. (1) The Austrian Broadcasting Corporation shall ensure, where practicable and by appropriate means, that the main portion of the transmission time of its television channels, excluding the time appointed to news, sports events, games shows or advertising and teletext services, is reserved for European works in compliance with Article 1 paragraph 1 (n) and paragraphs 2 to 4 of Directive 2010/13/EU on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive), OJ No. L 95, of 15 April 2010, page 1. This portion is to be achieved progressively in the fields of information, education, culture and entertainment on the basis of suitable criteria.

(2) The Austrian Broadcasting Corporation shall ensure that at least 10 per cent of the transmission time of its television channels, excluding the time appointed to news, sports events, games or advertising and teletext services or, alternatively, at least 10 per cent of its programming budget is reserved for European works created by producers who are independent of television broadcasters. This proportion should be achieved progressively on the basis of suitable criteria in the fields of information, education, culture and entertainment. It must be achieved by earmarking an adequate proportion for recent works, that is to say works transmitted within five years of their production.

European works in on-demand services

     § 12. Without prejudice to the requirements of § 4e and § 4f in connection with the provisions of Part 1a, the majority proportion of programmes in on-demand services offered by the Austrian Broadcasting Corporation or its subsidiaries, where practicable and subject to the use of reasonable means, shall consist of European works in accordance with Art. 1 paragraph 1 (n) and paragraphs 2 to 4 of Directive 2010/13/EU on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive), OJ No. L 95, of 15 April 2010, page 1.

 

 

Part 3

 

 

Commercial communication

 

Requirements and restrictions concerning content

§ 13. (1) Commercial communication shall be readily recognisable as such. Surreptitious advertising and commercial communication on channels and in programmes that are below the limit of perception shall be prohibited.

 

 

(2) Commercial communication shall not feature, visually or orally, persons who regularly present news and current affairs programmes, or regularly present other programmes as programming or journalistic staff of the Austrian Broadcasting Corporation.

(3) Commercial communication shall not

1.

prejudice respect for human dignity,

2.

include any discrimination on grounds of race or ethnic origin, sex, age, disability, religion or belief or

nationality or sexual orientation,

 

3.

encourage behaviour prejudicial to health or to safety,

4.

encourage behaviour which is to a high degree prejudicial to the protection of the environment,

5.

encourage unlawful practices,

6.

be misleading and harmful to consumer interests, or

 

 

7.

impair editorial independence.

(4) Any form of commercial communication for spirits, cigarettes or other tobacco products as well as for medicines, medical devices and therapeutic treatments that are only available on medical prescription shall be prohibited. Commercial communication for all other medicines, medical devices and therapeutic treatments shall be honest, truthful and verifiable. It shall not be harmful to humans.

 

(5) Commercial communication for alcoholic beverages shall comply with the following criteria:

1.

It shall not be aimed specifically at minors and encourage immoderate consumption.

2.

It shall not, in particular, depict minors consuming these beverages.

3.

It shall not link the consumption of alcohol to enhanced physical performance or to driving.

4.

It shall not create the impression that the consumption of alcohol contributes towards social or sexual

success.

5.

It shall not claim that alcohol has therapeutic qualities or that it is a stimulant, a sedative or a means of resolving personal conflicts.

6.

It shall not present abstinence or moderation in respect of the consumption of alcoholic beverages in a negative light.

7.

It shall not place emphasis on high alcoholic content as being a positive quality of the beverages.

(6) Commercial communication shall not cause moral or physical detriment to minors, and shall therefore comply with the following criteria for their protection:

1.

It shall not directly exhort minors to buy or hire a product or a service by exploiting their inexperience or credulity.

2.

It shall not directly encourage minors to persuade their parents or others to purchase the goods or services being advertised.

3.

It shall not exploit the special trust minors place in parents, teachers or other persons.

4.

It shall not unreasonably show minors in dangerous situations.

(7) The presentation of production props or prizes of insignificant value in news and current affairs programmes shall be prohibited.

(8) The Austrian Broadcasting Corporation shall issue guidelines for commercial communication broadcast before, after or during children’s programmes regarding foods and beverages containing nutrients and substances with a nutritional or physiological effect, in particular those such as fat, trans-fatty acids, salt/sodium and sugars, excessive intakes of which in the overall diet are not recommended. These guidelines require the consent of the regulatory authority and shall be published in a manner that is easily, directly and permanently accessible.

(9) The Foundation Council may specify further restrictions in terms of content and time for commercial communication. Those types of specified guidelines shall be published in a manner that is easily, directly and permanently accessible.

Television and radio advertising, advertising times

§ 14. (1) Advertising shall be readily recognisable and distinguishable from editorial content. It shall be kept quite distinct from other parts of the programme by optical and/or acoustic and/or spatial means.

(2) Advertising aimed specifically at minors without legal capacity may not be broadcast directly before or after children’s programmes.

 

 

(3) Unless otherwise provided by this Federal Act, the Foundation Council shall determine, at the proposal of the Director General, the volume of advertising on the channels of the Austrian Broadcasting Corporation. Guidelines specified in that manner shall be published in a manner that is easily, directly and permanently accessible. Transmission times for advertising must not be allocated on Good Friday as well as on 1 November and 24 December.

(4) One of the nation-wide radio channels pursuant to § 3 paragraph 1 subparagraph 1 shall be free from advertising. On radio channels broadcast all over Austria, advertising shall be permissible only on a nation-wide basis. Radio advertising may not exceed the daily length of a total of 172 minutes on a yearly average, deviations of not more than 20 per cent per day being permissible. On one channel, advertising may not exceed 8 per cent of the daily transmission time on a yearly average. Radio advertising broadcast on province-wide channels shall be counted only once and may not exceed the daily length of five minutes on a yearly average, deviations of not more than 20 per cent per day being permissible. The duration of advertising broadcast simultaneously on more than one province-wide channels (ring advertising) shall be included in each case in the five minutes devoted to advertising on the relevant province-wide channel.

(5) On television channels, advertising shall be permissible only on a nation-wide basis. On a yearly average, television advertising broadcast all over Austria may not exceed the length of 42 minutes per day per channel, deviations of not more than 20 per cent per day being permissible. Advertising for cinematographic works financed or co-financed by the Austrian Broadcasting Corporation shall not be included in the maximum permissible advertising time pursuant to the previous sentence or to § 4b paragraph 2 fourth sentence and § 4c paragraph 2 fifth sentence. Within one full hour, the share of advertising may not exceed 20 per cent. Hours shall mean the 24 equal parts of one calendar day.

(5a) Advertising which is limited to one province and is for events and campaigns concerning sports, art and culture, to the extent such events and campaigns are not generally given much coverage in Austrian media reporting, and concerning folklore and customs, and, in addition, advertising for public health services, traffic safety and consumer protection shall be excluded from paragraph 5 first and second sentences. The length of such advertising shall be limited to a maximum of 150 seconds per day per province. Paragraph 5 penultimate and last sentences shall remain unaffected. Advertising may only be ordered by the following legal entities:

1.

provinces and municipalities;

2.

other legal persons under public law to the extent they are active province-wide;

3.

public-purpose legal entities (§ 34 et seq. of the Federal Fiscal Code, Federal Law Gazette No. 194/1961);

4.

undertakings which exclusively perform public services in the fields mentioned in the first sentence and in which one province alone or together with other legal entities that are subject to review by the Court of Audit holds at least 50 per cent of the nominal or equity capital, or which are operated by one province alone or together with such legal entities. In addition, such advertising may be broadcast by the Austrian Broadcasting Corporation only if the ordering party proves that it has ordered or will order commercial communication for the subject matter of the advertising to at least an equal extent from other media undertakings complementary to broadcasting.

(5b) The Austrian Broadcasting Corporation shall report quarterly to the regulatory authority about all agreements for the broadcasting of advertising, providing information on the type and scope of the service and on the fees pursuant to paragraph 5a, including cooperations pursuant to the last sentence.

(6) The duration of the following shall not be included in the respective maximum permissible advertising time:

1.

announcements by the Austrian Broadcasting Corporation of programmes on its channels and materials supporting such programmes, which are directly derived from such programmes, and

2.

product placements.

(7) Advertising radio channels of the Austrian Broadcasting Corporation on television channels (§ 3) of the Austrian Broadcasting Corporation and vice versa shall not be permitted unless such advertising is an announcement of the content of individual programmes.

(8) Television advertising for periodical print media may refer to the title (name of the print media) and the editorial policy but not to their content. The transmission time allocated for this purpose may not exceed two minutes of the overall weekly advertising time. Such transmission times and the fees shall be allocated to all media owners of such print media on equal and non-discriminatory conditions. Details shall be governed by the list of fees for commercial communication (§ 23 paragraph 2 subparagraph 8).

(9) The provisions of § 13 paragraphs 1, 3 and 9, and § 14 paragraphs 1 and 3 first sentence shall apply mutatis mutandis to public service announcements and charity appeals broadcast free of charge.

(10) A party ordering commercial communication may not exercise editorial influence on the content of the channel.

(11) The Austrian Broadcasting Corporation and its subsidiaries shall be prohibited from broadcasting teleshopping.

Cut-in advertising

§ 15. (1) Television advertising shall be broadcast in blocks between individual programmes. Except for the broadcasting of sports events, isolated advertising spots shall be the exception.

(2) Interrupting television programmes on channels pursuant to § 3 for advertising shall not be permitted with the exception of the following two sentences. In sports programmes consisting of autonomous parts advertising may only be inserted between the autonomous parts, and one interruption shall be allowed for each full 15 minutes of the sports programme (calculated on the basis of the scheduled duration of the programme, excluding the duration of advertising), and a maximum of four interruptions shall be permitted within each full hour calculated from the beginning of the programme. In sports broadcasts and programmes about similarly structured events and performances containing intervals, advertising may only be inserted in the intervals.

(3) On channels pursuant to § 9 and § 9a television advertising may also be inserted during programmes subject to the restrictions mentioned below provided it does not impair the integrity of the programmes, taking into account natural breaks in and the type and duration of the programme. The rights of right holders must not be prejudiced. The transmission of films made for television (excluding series, serials and documentaries), cinematographic works and news programmes may be interrupted by television advertising once for each scheduled period of at least 30 minutes. The transmission of children’s programmes may be interrupted by television advertising once for each scheduled period of at least 30 minutes, provided that the scheduled duration of the programme is longer than 30 minutes. No television advertising shall be inserted during the transmission of religious services.

Product placement

§ 16. (1) Product placement (§ 1a paragraph 1 subparagraph 10) shall be prohibited, subject to the provisions of paragraphs 2 and 3.

(2) The provision free of charge of certain goods or services, such as production props and prizes, with a view to their inclusion in a programme shall be excluded from the prohibition of paragraph 1. This exception shall not apply to news and current affairs programmes.

(3) Cinematographic works, films made for television and television series as well as sports programmes and light entertainment programmes shall be excluded from the prohibition of paragraph 1. This exception shall not apply to children’s programmes.

(4) Notwithstanding the provisions of § 13, programmes may not include product placement for the benefit of undertakings whose principal activity is the manufacture or sale of cigarettes and other tobacco products. Product placement and provisions free of charge pursuant to § 1a subparagraph 10 last sentence shall also be prohibited in regionally broadcast television programmes.

(5) Programmes that contain product placement shall meet the following requirements:

1.

Their content and their scheduling shall in no circumstances be influenced in such a way as to adversely affect editorial responsibility and independence.

2.

They shall not directly encourage the purchase or rental of goods or services, in particular by making special promotional references to those goods or services.

3.

They shall not give undue prominence to the product in question.

4.

They shall be appropriately identified at the start and the end of the programme and, in the case of

interruptions pursuant to § 15, when a programme resumes after an advertising break, in order to avoid any confusion on the part of the consumer.

(6) Paragraph 5 subparagraph 4 shall not apply if the programme in question has been neither produced nor commissioned by the Austrian Broadcasting Corporation itself or an undertaking associated with the Austrian Broadcasting Corporation and the Austrian Broadcasting Corporation had no knowledge of the product placement.

Sponsorship

§ 17. (1) Sponsored programmes shall meet the following requirements:

1.

Their content and, in the case of television or radio programmes their scheduling, may in no circumstances be influenced by the sponsor in such a way as to affect the editorial responsibility and independence in respect of the programmes.

2.

They shall be clearly identified as a sponsored programme by the name, logo of the sponsor or any other symbol such as a reference to its products or services or a distinctive sign thereof at the beginning or at the end of the programme (sponsorship announcement). Sponsorship announcements during a programme shall not be permitted.

3.

They shall not directly encourage the purchase or rental of the products or services of the sponsor or a third party, in particular by making special promotional references to those products or services.

(2) Sponsorship by natural or legal persons whose principal activity is the manufacture or sale of products, or the provision of services, the commercial communication in respect of which is prohibited by virtue of § 13 or other legal provisions shall not be permitted. Sponsorship by undertakings whose activities include the manufacture or sale of medicines and medical treatment may refer to the name or the image of the undertaking, but not to specific medicines or medical treatments available only on prescription.

(3) News and current affairs programmes may not be sponsored within the meaning of paragraph 1.

(4) § 14 paragraph 8 shall apply mutatis mutandis to sponsorship announcements for media owners of periodical print media.

(5) Unless a sponsored programme concerns charitable or other purposes in the public interest, sponsorship announcements shall be included in the advertising time as regulated in § 14. The duration of sponsorship announcements of regional television programmes to be included shall be determined by the proportion of the population technically reached by the regional programme as compared to the overall population of Austria.

(6) Designing programmes in whole or in part according to themes specified by third parties in return for payment shall not be allowed. The broadcasting of a programme may not be made dependent on the requirement of a contribution to the financing of the programme. Part 4

Requirements for teletext and online services

§ 18. (1) The operation and provision of online services in accordance with the public mandate shall be governed by the provisions of this Federal Act in their entirety. Income of the Austrian Broadcasting Corporation from commercial communication in its online services in accordance with the public mandate in each business year may not exceed the amount of 3 per cent, from 1 January 2013 of 4 per cent and from 1 January 2016 of 5 per cent of the income generated from programme fees charged pursuant to § 31 in the preceding calendar year.

(2) Unless otherwise provided, § 10 and § 13 to § 17 shall apply, in terms of content, to the operation of teletext and the provision of online services in the context of commercial activities (§ 8a). The proportion of commercial communication in such services shall be determined by resolution of the Foundation Council.

(3) The services named in § 4f paragraph 2 subparagraphs 1 to 7, 9, 11, 13, 14, 16, 20, 21 and 23 to 28 may not be provided in the context of commercial activities.

(4) Commercial communication in teletext and online services shall only be permitted in standardised forms and formats. Not permitted are forms where fees are invoiced on the basis of performance while marketing instruments are employed to achieve a measurable reaction or transaction with the user (performance marketing) and forms where data on user behaviour are saved to effect individualisation. Pricing of commercial communication in online services shall be based on a certain amount per impression. In the sale of commercial communication in online services, the grant of discounts shall be permitted exclusively on the basis of quantity scales in the same class of media. The grant of discounts in a form where commercial communication is provided in a volume larger than that which was acquired on the basis of standardised prices (discounts in kind) shall not be permitted. All forms, services, prices, discounts and cash discounts shall be laid down and published in the list of fees for commercial communication.

(5) Commercial communication in online services, including on websites of the individual provinces, shall only be permitted if published nation-wide.

Information obligations

§ 18a. (1) Notwithstanding the provisions of § 24 and § 25 of the Media Act or § 5 of the E-Commerce Act, the Austrian Broadcasting Corporation and its subsidiaries shall ensure that the following information is easily, directly and permanently accessible:

1.

the exact corporate name of the operator of a channel or the provider of a service,

2.

the mailing address of such operator or provider,

3.

details making it possible to quickly contact and directly and effectively communicate with such

operator or provider, including the e-mail address and website, and

4.

details on the institution(s) responsible for legal supervision. Part 5

Organisation

Organs of the Austrian Broadcasting Corporation

§ 19. (1) The organs of the Austrian Broadcasting Corporation are:

1.

the Foundation Council,

2.

the Director General,

3.

the Audience Council,

(2) In the exercise of their functions in the Austrian Broadcasting Corporation, the collegial bodies under paragraph 1 shall not be bound by instructions and orders; they shall exclusively fulfil the obligations arising from the laws and the rules of procedure.

(3) The function as a member of the Foundation Council and the Audience Council is an honorary function. The members shall be entitled to an appropriate compensation of incurred costs.

(4) Unless otherwise provided by law, all members of the Foundation organs shall be under the obligation of secrecy concerning all circumstances of the Foundation and its associated undertakings becoming known to them in the course of their activity. This obligation of secrecy shall also continue after they retire as member of a Foundation organ. Upon retirement, all written documents pertaining to affairs of the Foundation and its associated undertakings shall be returned to the Foundation. The Foundation Council

§ 20. (1) The members of the Foundation Council shall be appointed subject to the following provisions:

1.

six members shall be appointed by the Federal Government in proportion to the number of seats of the political parties in the National Council, due regard being paid to the proposals of these parties; each of the parties represented on the Main Committee of the National Council shall be represented in the Foundation Council by at least one member;

2.

nine members shall be appointed by the provinces; each of the provinces shall be entitled to appoint one member;

3.

nine members shall be appointed by the Federal Government;

4.

six members shall be appointed by the Audience Council;

5.

five members shall be appointed by the Central Staff Council in accordance with the Labour

Constitution Act, Federal Law Gazette No. 22/1974.

When members are appointed pursuant to subparagraphs 1 to 4, account shall be taken of the fact that they

1.

possess the personal and technical qualifications as a result of appropriate previous training or pertinent vocational experience in the matters to be carried out by the Foundation Council, and

2.

are knowledgeable of the Austrian and international media markets or have acquired high esteem in the fields of economics, science, arts or education because of their professional performance.

(2) The members of the Foundation Council shall have the same duty of care and responsibility as members of the supervisory board of a stock corporation. Claims against members of the Foundation Council shall be decided by the regular courts in accordance with the provisions of the Code of Civil Procedure.

(3) The following persons may not be appointed members of the Foundation Council:

1.

persons who are employees of the Austrian Broadcasting Corporation; this ground for exclusion does not apply to members appointed pursuant to paragraph 1 subparagraph 5;

2.

persons who are employees of one of the undertakings associated with the Austrian Broadcasting Corporation within the meaning of § 228 paragraph 3 of the Business Code;

3.

persons who work in another organ of the Austrian Broadcasting Corporation; this ground for exclusion does not apply to members appointed pursuant to paragraph 1 subparagraph 4;

4.

persons who are employees or shareholders of another media undertaking (§ 1 paragraph 1 subparagraph 6 of the Media Act);

5.

members of the Federal Government, state secretaries, members of a provincial government, members of the National Council, the Federal Council or of another representative body or of the European Parliament, moreover persons who are employees of a political party or have a leading position in a federal or regional organisation of a political party, as well as members of the Ombudsman’s Office, the President of the Court of Audit, and persons who exercised one of the mentioned offices during the last four years;

6.

persons who are employees of a party faction in a general representative body as well as parliamentary staff members within the meaning of the Parliamentary Staff Act;

7.

persons who have been seconded to a party faction in a general representative body;

8.

employees of legal entities working in the field of civic education within the framework of the political

parties (§ 1 of the Journalism Subsidies Act, Federal Law Gazette No. 396/1984);

9.

members of the office of a federal minister or the office of a state secretary or another federal or provincial organ referred to in § 5, § 6 or § 8 paragraph 1 of the Emoluments Act;

10.

employees of the Austrian Communications Authority and members of the Federal Communications Board as well as employees of RTR GmbH.

(4) The term of office of the Foundation Council shall be four years from the day of its first meeting until, at any rate, the day when the next newly appointed Foundation Council convenes. During a term of office, the members appointed by the Federal Government may be relieved of their duties prematurely only if the Federal President has appointed a new Federal Government, a member appointed by a province only if the provincial parliament has elected a new provincial government, and the members appointed by the Audience Council and the Central Staff Council only if these bodies constitute themselves anew. If a member resigns prematurely, a new member shall be appointed without delay for the remaining term of the Foundation Council. If a member of the Foundation Council fails to follow three subsequent invitations for a meeting without sufficient excuse or if a ground for exclusion pursuant to paragraph 3 arises subsequently, the Foundation Council shall ascertain this fact by decision after hearing that member. This ascertainment shall entail the loss of membership, and a new member shall be appointed for the remaining term of the Foundation Council.

(5) If the organs authorised to appoint members of the Foundation Council pursuant to paragraph 1 do not avail themselves of this right and appoint no members, the vacancies shall be left out of consideration when establishing the quorum of the Foundation Council pursuant to paragraph 6.

(6) The Foundation Council shall draw up its own rules of procedure. It shall elect from among its members a Chairman and a Deputy Chairman. The meetings of the Foundation Council shall be convened by its Chairman or, if he is prevented from doing so, by his deputy; the Chairman shall be obligated to convene the Foundation Council immediately if this is requested in writing by one third of its members or by the Director General and accompanied by a draft agenda. The presence of no less than half of its members shall constitute a quorum. With the exception of resolutions pursuant to § 22 paragraph 5 and § 41 paragraph 1, its resolutions shall be passed by open vote and by a simple majority of the votes cast. The Chairman participates in the vote; in the case of a tie, the Chairman - and if he is prevented, his deputy - has the casting vote. The members of the Foundation Council appointed by the Central Staff Council shall not be entitled to vote on resolutions under § 31 paragraphs 1 and 2 and shall not be counted when establishing the presence of a quorum.

(7) To prepare a resolution on specific issues and to monitor the business management, the Foundation Council can set up committees composed of its members. Each committee shall consist of at least five members.

(8) The Director General and the Chairman of the Audience Council or his deputy shall have the right to attend the meetings of the Foundation Council in an advisory capacity. The members of the Auditing Commission shall at any rate be consulted in the meetings of the Foundation Council and its committees which deal with the approval of the annual financial statements and their preparation and with the audit of the annual financial statements. In addition, the Foundation Council and its committees may ask the members of the Auditing Commission about planned audits pursuant to § 40 paragraph 3 third sentence and the result of such audits. The members of the Auditing Commission shall not be subject to an obligation of secrecy vis-à-vis the Foundation Council unless this would frustrate the purpose of the audit.

(9) In the event that a member of the Foundation Council is prevented from attending one of its meetings, such member may arrange for another member to deputise for him in respect of all his rights for the duration of that meeting. The member unable to attend shall notify the Chairman of such deputising in writing. A member deputised for in such a way shall not be included in the count for establishing the presence of a quorum. The right to have the chair is not transferable.

(10) If the Foundation Council fails to appoint a Director General within three months following the invitation of applications for the office of Director General (§ 27 paragraph 1), to entrust one month after the office of the Director General has prematurely become vacant a suitable person with the provisional exercise of the responsibilities of Director General (§ 22 paragraph 1), or to arrive at a decision on one of the matters enumerated in § 21 paragraph 1 subparagraphs 3 to 6 and 7 to 15 and paragraph 2 within a period of three months of dealing with the matter for the first time, this fact shall be ascertained without delay by the Federal Communications Board. If a settlement of the matter has still not been reached within four weeks after ascertaining this fact, the Federal Communications Board shall declare the Foundation Council dissolved. In such case, the members of a new Foundation Council shall be appointed without delay. Responsibilities of the Foundation Council

§ 21. (1) In addition to other responsibilities imposed on it under this Federal Act, the Foundation Council shall:

1.

monitor the business management;

2.

appoint and dismiss the Director General;

3.

determine the number of Directors and the allocation of business under § 24 paragraph 2;

4.

represent the Austrian Broadcasting Corporation vis-à-vis the Director General, particularly in the

assertion of liability claims;

5.

appoint and dismiss the Directors and Regional Directors on the recommendation of the Director General;

6.

approve the long-term planning of content in accordance with the criteria of the quality assurance system and the long-term planning of technical and financial affairs and staffing schedules;

6a.

approve the quality assurance system (§ 23 paragraph 1 subparagraph 1a);

6b.

[approve] the guidelines applicable to audiovisual commercial communication in particular in respect of

audiovisual commercial communication aimed at minors;

6c.

[approve] the plans presented by the managing board on the expansion of barrier-free services for people with a vision or hearing disability;

7.

take decisions on the determination of programme fees (§ 23 paragraph 2 subparagraph 8 and § 31) as well as approve lists of fees for commercial communication (§ 23 paragraph 2 subparagraph 8);

8.

approve the conclusion of collective agreements, contractual agreements with similar effect and the Editorial Agreement;

9.

decide on the personnel regulations for the Austrian Broadcasting Corporation;

10.

decide on measures to be taken as a result of the audit report, including the publication of audit reports

unless they have to be published under § 39;

11.

audit and approve the annual financial statements, audit the consolidated annual financial statements and release the Director General from his responsibilities;

12.

discuss problems fundamental to broadcasting and programming as well as to the introduction of quality assurance systems for channels in cooperation with the managing board, receive reports of the Director General and decide on recommendations related thereto;

13.

decide on restrictions on advertising and audiovisual commercial communication pursuant to § 13 paragraphs 7 and 8 and § 14 paragraph 3;

 

14.

pass a resolution on the annual report (§ 7);

15.

determine, upon recommendation of the Director General, the scope and type of dissemination of radio

channels pursuant to § 3 paragraph 6 and pass resolutions on commercial activities within the meaning of § 9 to § 9b.

(2) Furthermore, the consent of the Foundation Council shall be required in the following cases:

1.

for the implementation of the general guidelines to be issued by the Director General for programming, and compiling and coordinating channels on radio and television as well as in online services (§ 23 paragraph 2 subparagraph 1);

2.

for the programme and service schedules for television and radio (annual programme schedules) and for the online services (annual service schedules) in accordance with the criteria of the quality assurance system, to be drawn up by the Director General and to be submitted to the Foundation Council not later than 15 November for the next calendar year, taking into account the long-term broadcasting schedules and the programming guidelines (subparagraph 1), as well as for the operation of special-interest channels (§ 9 paragraph 2), for determining the scope of advertising pursuant to § 18 and for the operation of mobile terrestrial television (§ 9a);

3.

for the acquisition, sale or mortgaging of real property if the market value exceeds euro 500,000;

4.

for the assumption of guarantees or other liabilities on behalf of third-parties;

5.

for the management of all transactions which entail a permanent encumbrance or an obligation that

exceeds the usual course of business in so far as such transactions have not otherwise been approved within the framework of the annual financial plans anyway;

6.

for the determination of the expenditure budgets and staffing schedules for the next calendar year, including their financial cover, which must be drawn up for each business year and submitted to the Foundation Council not later than 15 November (financial plan and staffing schedule);

7.

for investment programmes and for the implementation of building and reconstruction measures, for new acquisitions and other investments to be effected outside the investment programmes already approved and in operation as far as the former do not constitute current operating expenses and exceed euro 1 million in a particular case or a total of euro 2 million in a business year;

8.

for the introduction of long-term social measures;

9.

for the rededication of the dedicated reserve specified in § 39b paragraph 2;

10.

for taking up bonds, loans and credits in excess of euro 2 million;

11.

for the acquisition and sale of patent and exploitation rights on copyrights the individual value of which

exceeds euro 1 million;

12.

for granting loans and credits as far as they are not part of ordinary business activities;

13.

for the acquisition, sale and mortgaging of shareholdings in other undertakings (§ 228 of the Business Code) as well as for the acquisition, sale and shut-down of undertakings and businesses;

14.

for setting up and shutting down branch offices as well as for founding subsidiaries;

15.

for taking on or giving up branches of business and modes of production;

16.

for granting Directors and executive staff power of procuration and commercial authority;

17.

for defining general principles of business policy;

18.

for exercising the voting right in shareholder meetings of associated undertakings if the meeting is to

pass a resolution which, by law or under the articles of association, needs the approval of at least three quarters of the votes cast or deals with the appointment of managers, members of the managing board or the supervisory board;

19.

for the conclusion of contracts with media undertakings (§ 1 paragraph 1 subparagraph 6 of the Media Act) publishing periodical print media, subject to the disclosure of the wording of the contract.

(3) The Director General, moreover, shall obtain the consent of the Foundation Council if he participates in transactions as specified in paragraph 2 of associated undertakings by giving instructions, consent or exercising his voting right.

(4) The Director General shall report to the Foundation Council like a general manager to the supervisory board of a stock corporation; in this respect, § 81 and § 95 paragraph 2 of the Stock Corporation Act, Federal Law Gazette No. 98/1965 shall apply mutatis mutandis. In the course of the meetings of the Foundation Council, the members of the Foundation Council shall furthermore be entitled to question the Director General, the Directors and the Regional Directors on all matters concerning their areas of responsibility within the Austrian Broadcasting Corporation and to request any pertinent information. § 95 paragraph 3 of the Stock Corporation Act shall apply mutatis mutandis.

Director General

§ 22. (1) The Director General shall be appointed by the Foundation Council for a period of five years. If the position of Director General becomes vacant prior to the expiry of his/her term of office, the Foundation Council shall entrust a suitable person with the provisional management of the affairs of the Director General until a new Director General has been appointed for the remaining term. If the Director General is temporarily prevented from exercising his/her functions, the Foundation Council shall appoint a representative from among the Directors or Regional Directors for that period.

(2) The elected Director General may already prior to the beginning of his/her term of office submit proposals for the allocation of business (§ 24 paragraph 2), advertise vacancies for the positions of Directors and Regional Directors (§ 23 paragraph 2 subparagraph 2) and submit proposals for the appointment of Directors and Regional Directors (§ 23 paragraph 2 subparagraph 3).

(3) The Director General shall be responsible for managing the affairs of the corporation in such a manner as is required for the benefit of the corporation, taking into account the interests of the general public and the interests of its employees. Apart from the responsibilities emanating from legal provisions or the resolutions of the Foundation Council, the Director General shall not be bound by any directives or orders.

(4) The Director General shall act with the same due care and diligence and shall have the same responsibilities as the managing board of a public limited company. Claims raised against the Director General shall be determined by ordinary courts of law in accordance with the rules of civil procedure.

(5) The Director General may only be dismissed with a two- third majority by the Foundation Council. Responsibilities of the Director General

§ 23. (1) The Director General shall manage the affairs of the Austrian Broadcasting Corporation and shall act as its judicial and extra-judicial representative.

(2) The Director General shall in particular be responsible for

1.

establishing general guidelines for programming, and compiling and coordinating channels on radio and television and for the online services as well as for planning the annual programme schedules and annual service schedules with the approval of the Foundation Council (§ 21 paragraph 2 subparagraphs 1 and 2); when establishing such guidelines, the Director General shall submit a detailed presentation of the measures and activities planned in accordance with statutory requirements and shall explain to what extent such measures and activities meet the criteria defined in the quality assurance system;

1a.

establishing a quality assurance system which is to define criteria and procedures for the fulfilment of the core public mandate given pursuant to § 4;

2.

advertising vacancies for the positions of Directors and Regional Directors;

3.

submitting proposals for the appointment and dismissal of Directors and Regional Directors; in the case

of the latter, after obtaining an opinion from the respective province;

4.

giving Directors and the executive staff the power of procuration and commercial authority;

5.

supervising and coordinating the activities of the Directors and Regional Directors, especially in respect

of the broadcasting schedules for radio and television, taking into account also the federal organisation by inviting all studios to cooperate;

6.

preparing proposals to be submitted to the Foundation Council on the long-term planning of channels, technical and financial affairs as well as staffing schedules in cooperation with the Directors and Regional Directors;

7.

allocating business pursuant to paragraph 3;

8.

filing an application to the Foundation Council for the determination of the programme fees and

submitting proposals for the specification of the list of fees for commercial communication to the Foundation Council;

9.

implementing the resolutions of the Foundation Council;

10.

submitting proposals for the allocation of business pursuant to § 24 paragraph 2.

(3)              The Director General shall allocate responsibilities that are neither reserved to the Foundation Council

nor to the Audience Council or to him/herself, in accordance with § 24 in such a manner that the persons concerned can manage the affairs of the relevant subject areas and other fields on their own initiative. Directors and Regional Directors

§ 24. (1) The Directors and Regional Directors shall be appointed by the Foundation Council upon a proposal of the Director General for the duration of his/her term of office. If the position of a Director or Regional Director becomes vacant prior to the expiry of that term of office, another appointment shall only be made for the remaining term. If the Foundation Council fails to appoint a Director or Regional Director within six weeks following the submission of the Director General's proposals, the Director General shall submit without delay a new proposal to the Foundation Council after the expiry of that period.

(2)              At least four and no more than six Directors shall be appointed whose sphere of responsibilities shall be determined by the Foundation Council upon a proposal by the Director General (§ 23 paragraph 2 subparagraph 3).

(3)              A Regional Director shall be appointed for each regional studio. Responsibilities of the Directors and Regional Directors

§ 25. (1) Within the framework of the long-term planning of channels, technical and financial affairs, staffing schedules and annual programme schedules, the Directors and Regional Directors shall manage independently the current affairs in their respective fields. With the exception of instructions given by the Director General, they shall not be bound by instructions and orders. The Director General shall have the right to give instructions to the Directors and Regional Directors in all matters.

(2) The Regional Directors shall safeguard the interests of the Austrian Broadcasting Corporation in the province for which they have been appointed. In doing so, they shall be responsible for the radio channel to be designed for that province in their studio and for all radio and television programmes to be designed in their respective sphere of responsibility. In addition, they shall be responsible for the premises and transmission facilities of their studio and for the staff working there.

(3) The Directors and Regional Directors shall have the right to be heard by the Foundation Council should the Director General refuse to take their proposals into account. In such case, the persons concerned shall be invited to attend the respective deliberations of the Foundation Council.

Qualifications

§ 26. (1) Any person holding the position of Director General, Director or Regional Director or executive employee in the Austrian Broadcasting Corporation, must meet the following requirements:

1.

he/she must be fully capable of entering into legal transactions;

2.

must show that he/she has an adequate previous training or five years of experience in the same or a

related profession.

(2) The following persons must not be appointed Director General, Director or Regional Director: members of the Federal Government, state secretaries, members of a provincial government, members of the National Council, the Federal Council or of another general representative body or the European Parliament; moreover persons who are employees of a political party or have a leading position in a federal or regional organisation of a political party, as well as members of the Ombudsman’s Office, the President of the Court of Audit, and persons who have held one of the above-mentioned positions within the last four years.

Moreover, the following persons must not be appointed Director General, Director or Regional Director:

1.

persons who are employees of an undertaking associated with the Austrian Broadcasting Corporation within the meaning of § 228 paragraph 3 of the Business Code;

2.

persons who work for another organ of the Austrian Broadcasting Corporation;

3.

persons who are employees or shareholders of another media undertaking (§ 1 paragraph 1 subparagraph 6 of the Media Act);

4.

persons who are employees of a party faction of a general representative body as well as parliamentary staff members within the meaning of the Parliamentary Staff Act;

5.

persons who have been allocated to work for a party faction of a general representative body;

6.

employees of legal entities working in the field of civic education within the framework of the political

parties (§ 1 of the Journalism Subsidies Act, Federal Law Gazette No. 369/1984);

7.

members of the office of a federal minister or the office of a state secretary or another federal or provincial organ referred to in § 5, § 6 or § 8 paragraph 1 of the Emoluments Act;

8.

employees of the Austrian Communications Authority and members of the Federal Communications Board as well as managers and employees of RTR GmbH.

 

(3) § 79 of the Stock Corporation Act shall apply mutatis mutandis to the persons referred to in paragraph 1. Furthermore, they must not have an additional occupation or exercise a supervisory board mandate without the consent of the Foundation Council.

Advertising of vacancies

§ 27. (1) All vacancies in the Austrian Broadcasting Corporation – including the positions referred to in § 26 paragraph 1 – shall be advertised internally as well as publicly in the Official Gazette "Amtsblatt zur Wiener Zeitung", unless the services provided are of a subordinate nature. The position of Director General shall be advertised by the chairman of the Foundation Council six months prior to the expiry of the Director General's term of office and without delay in the case of an earlier termination of his/her term of office; the application period shall be four weeks.

(2) In the selection of applicants for an advertised vacancy and in the promotion of staff, special emphasis shall be placed on their professional qualifications. Audience Council

§ 28. (1) In order to safeguard the interests of the listeners and viewers, an Audience Council shall be established in the headquarters of the Austrian Broadcasting Corporation.

(2)              Membership in the Audience Council shall not be open to:

1.

persons who are employed by the Austrian Broadcasting Corporation or by an undertaking associated

with the Austrian Broadcasting Corporation within the meaning of § 228 paragraph 3 of the Business Code;

2.

persons who are engaged in another organ of the Austrian Broadcasting Corporation; this exclusion criterion does not apply to the members of the Foundation Council who are appointed by the Audience Council;

3.

persons who are employed by, or participating in, another media undertaking (§ 1 paragraph 1 subparagraph 6 of the Media Act);

4.

members of the Federal Government, state secretaries, members of a provincial government or of the National Council or the Federal Council or of some other general representative body or the European Parliament; persons who are employees, or who hold an executive function in the federal or regional organisation, of a political party, as well as members of the Ombudsman’s Office, the President of the Court of Audit and persons having held one of the above positions within the previous four years;

5.

persons who are employed by a group in a general representative body, as well as parliamentary staff within the meaning of the Parliamentary Employees Act;

6.

persons who are assigned to a group in a general representative body;

7.

persons employed by those entities who are responsible for civic political education within the political

parties (§ 1 Journalism Subsidies Act, Federal Law Gazette No. 369/1984);

8.

staff members in the private office of a federal minister or state secretary or some other federal or provincial organs stated in § 5, § 6 or § 8 paragraph 1 of the Emoluments Act;

9.

employees of the Austrian Communications Authority and members of the Federal Communications Board, and managers and employees of RTR-GmbH.

(3) Members of the Audience Council shall be appointed as follows:

1.

the Austrian Federal Economic Chamber, the Conference of the Presidents of the Austrian Chambers of Agriculture the Federal Chamber of Labour and the Federation of Austrian Trade Unions shall each appoint one member;

2.

the Chambers of the Liberal Professions shall together appoint one member;

3.

the Roman Catholic Church shall appoint one member;

4.

the Lutheran Church shall appoint one member;

5.

those entities who are responsible for civic political education within the political parties shall each

appoint one member (Federal Law Gazette No. 369/1984);

6.

the Academy of Sciences shall appoint one member.

(4) For the appointment of further members, the Federal Chancellor shall solicit proposals from institutions or organisations which are representative of the following sectors or groups: academia, education, arts, sports, youth, students, the elderly, handicapped persons, parents and the family, ethnic groups, tourism, motorists, consumers, and environmental protection.

(5) The Federal Chancellor shall invite the eligible institutions and organisations under paragraph 4 by way of a public announcement in the Official Gazette "Amtsblatt zur Wiener Zeitung" to propose three persons for appointment and to make all such proposals publicly known.

(6) Six members shall be elected by the viewers and listeners (§ 2 of the Broadcasting Fees Act, Federal Law Gazette I No. 159/1999) in conformity with the following paragraphs. Only natural persons shall be eligible to vote.

(7) These members shall be elected from among those persons who are proposed under paragraph 5 by the relevant institutions and organisations in the areas of education, youth, elderly people, parents and the family, sports and consumers.

(8) The names and functions of the persons concerned, as well as of the institution by which they have been proposed, shall be made public by the Federal Chancellor in the Official Gazette "Amtsblatt zur Wiener Zeitung". Simultaneously, the Austrian Broadcasting Corporation shall inform the viewers and listeners about the persons standing for election and the electoral procedure by such appropriate means as a television broadcast in one of the channels under § 3 paragraph 1 subparagraph 2.

(9) The Austrian Broadcasting Corporation shall ensure within the scope of technical means and economic feasibility that every viewer or listener is given an opportunity, by voting via telephone, telefax, Internet or other comparable technical facilities, to choose six persons (one from each sector) from among the candidates standing for election. A time limit of one week shall be granted for the casting of votes. Votes not received by the end of that time limit shall not be considered. The cut-off date for ascertaining the eligibility to participate in the election shall be the first day of the month before the month preceding the start of the election period. The Austrian Broadcasting Corporation shall ensure that the personal data transmitted with the vote are used for no other purpose than for the determination and verification (identification of persons eligible to vote). For the purpose of determining and verifying the election result, the Gebühreninkasso Service GmbH shall only provide the Austrian Broadcasting Corporation with data concerning the phone numbers, first and last names and dates of birth of viewers and listeners. The Austrian Broadcasting Corporation shall notify to its viewers and listeners the fact that, and the extent to which, data transmitted in the ballot are used and, in particular, that the casting of votes is not anonymous. In this context, it needs to be ensured that no person casts more than one vote. Each viewer or listener is only eligible to cast one vote regardless of the number of receivers operated by him or her. The Austrian Broadcasting Corporation must moreover take all precautions to avoid the misuse of the relevant data. The transmitted data must be deleted no later than eight months after the end of the time limit for the casting of votes.

(10) After the end of the time limit for the casting of votes, the result of the ballot shall be certified by a notary public and notified to the Federal Chancellor without delay by the Austrian Broadcasting Corporation. Subsequently, the Federal Chancellor shall appoint the six persons for each sector who have received most of the votes as members of the Audience Council and make the election result publicly known by promulgation in the Official Gazette "Amtsblatt zur Wiener Zeitung".

(11) Following the appointment of members under paragraph 10, the Federal Chancellor shall appoint another seventeen members from the proposals received in regard to the sectors and groups named in paragraph 4, with one member being appointed for each sector. Term of office, chairperson and decision-making

§ 29. (1) The term of office of the Audience Council shall be four years, calculated from the day that it convenes for the first time, and at all events to that day on which a new Audience Council is convened.

(2) The Audience Council shall draw up its own rules of procedure and shall elect its chairperson and deputy chairperson from its midst.

(3) Meetings of the Audience Council shall be convened by its chairperson, or in his/her absence by the deputy chairperson, at least three times per year, otherwise within 14 days, should no less than a quarter of its members or a quarter of the members of the Foundation Council demand such a meeting.

(4) The Audience Council shall pass its resolutions with a quorum of at least half of its members and by a simple majority of the number of votes cast. Resolutions pursuant to § 41 paragraph 1 require a two-thirds majority. The provisions governing the establishment of a quorum in a case of non-appointment and the representation of an absent member in a meeting which are applicable to the Foundation Council shall apply analogously.

(5) If a member of the Audience Council has failed to comply with three subsequent invitations to a meeting without reasonable grounds or if a ground for exclusion pursuant to § 28 paragraph 2 arises subsequently in respect of a member, this finding shall be made by a decision after his hearing by the Audience Council. Such a finding shall entail the loss of membership rights, and a new member shall be appointed for the remainder of the term without delay.

(6) If a member of the Audience Council withdraws from his or her function before the end of the term, a new member shall be appointed for the remainder of the term. If a member appointed pursuant to § 28 paragraphs 6 to 10 or paragraph 11 withdraws from the Council ahead of time, the Federal Chancellor shall invite the institutions or groups represented by the withdrawing member to submit new proposals. These proposals shall be submitted without delay. The Federal Chancellor shall appoint a member from the proposals submitted to him.

Functions of the Audience Council

§ 30. (1) The Audience Council shall:

1.

make recommendations regarding programming as well as proposals for technical expansion;

2.

appoint six members of the Foundation Council, of whom three members must be chosen from among

the six members of the Audience Council appointed on the basis of the results of the direct election and, at all events, one member each from the sectors of officially recognised churches and religious communities, academic institutions and the arts;

3.

appeal to the regulatory authority;

4.

approve decisions of the Foundation Council concerning the amount of programme fees (radio and television fees);

5.

submit proposals for compliance with the mandate relating to the cases laid down in this Act, and comment on the allocation of shares of broadcasting time to ethnic groups. For that purpose, the Audience Council may hear representatives of the ethnic group advisory boards;

6.

make recommendations to the Foundation Council concerning annual programme schedules and annual service schedules;

7.

make recommendations, stating reasons, on the quality assurance system;

8.

make recommendations on the provision of programmes for the deaf and hearing-impaired.

(2) The Audience Council is authorised to fulfil the tasks listed in paragraph 1, i.e. to interview the Director General, the Managing Directors and Regional Directors about all of the tasks of the Austrian Broadcasting Corporation to be discharged by them and to procure all the necessary information. The interviewees shall reply to the inquiries in writing or orally, if so requested, within a period of two months. A reply to such an inquiry may only be withheld to the extent that this is in the prevailing interest of the Austrian Broadcasting Corporation or in the public interest.

(3) If the Audience Council has made recommendations concerning programming, the Director General shall report to the Audience Council, within a reasonable time not exceeding three months, on whether and in what form the recommendation has been complied with or else why the recommendation was not implemented.

(4) The meetings of the Audience Council shall be attended in an advisory function by the Director General or by a representative nominated by him or her. The Audience Council has the right, on the basis of a request to the Director General, to demand the presence of a Managing Director or Regional Director. The Members of the Foundation Council have the right to attend the meetings of the Audience Council in an advisory capacity.

(5) The Audience Council may – in addition to the opinion poll conducted by the Austrian Broadcasting Corporation itself – call for the Austrian Broadcasting Corporation to have a representative survey conducted once an year among the viewers and listeners on topics laid down by the Audience Council. The results of all opinion polls of the Austrian Broadcasting Corporation shall be communicated to the Audience Council. Part 5a

Equality between women and men

Requirement of equal opportunities

§ 30a. (1) The representatives of the "Austrian Broadcasting Corporation" Foundation (Foundation) shall, subject to the requirements of the equal opportunities plan (§ 30b), seek to eliminate existing underrepresentation of women in the total number of permanent employees and functions as well as existing unfavourable treatment of women in relation to employment.

(2) Women shall be deemed underrepresented if the proportion of women in the total number of permanent employees, including leased employees, of the Foundation is less than 45 per cent

1.

in the relevant qualification grade, pay grade or functional grade, or

2.

in other positions or functions which require specific qualifications and are not classified into grades.

 

Equal opportunities plan

§ 30b. (1) At the proposal of the Equal Opportunities Working Group (§ 30m), the Director General shall adopt an equal opportunities plan. The equal opportunities plan shall be drawn up on the basis of the proportion of women in the total number of permanent employees, including leased employees, to be determined as of 1 July of every second year, as well as of the anticipated fluctuation for a period of six years and shall be continued after that. The equal opportunities plan shall be adjusted to current developments every two years.

(2) In any event, the equal opportunities plan shall stipulate in which period, by which measures concerning personnel, organisation, and training and further training, and in which qualification grades any existing underrepresentation and existing unfavourable treatment of women could be eliminated. Binding requirements shall be stipulated for a period of two years to increase the proportion of women

1.

in the relevant qualification grade, pay grade or functional grade, or

2.

in other positions or functions which require specific qualifications and are not classified into grades

of the Foundation.

Preference in hiring

§ 30c. (1) Subject to the requirements of the equal opportunities plan, female applicants who are qualified equally or equivalently to the best suited male applicant for the position aspired to shall be given preference in hiring, unless reasons specific to an individual male applicant tilt the balance in his favour, until the proportion of women in the total number of permanent employees, including leased employees, of the Foundation is 45 per cent

1.

in the relevant qualification grade, pay grade or functional grade, or

2.

in other positions or functions which require specific qualifications and are not classified into grades.

 

(2) The reasons specific to an individual male applicant pursuant to paragraph 1 must not have a direct or indirect discriminatory effect on female applicants. Preference in promotions

§ 30d. (1) Subject to the requirements of the equal opportunities plan, female applicants who are qualified equally or equivalently to the best suited male applicant for the position (function) aspired to which requires specific qualifications shall be given preference in appointments to such a position (function), unless reasons specific to an individual male applicant tilt the balance in his favour, until the proportion of women in the total number of permanent employees, including leased employees, of the Foundation is 45 per cent

1.

in the relevant qualification grade, pay grade or functional grade, or

2.

in other positions or functions which require specific qualifications and are not classified into grades.

 

(2) The reasons specific to an individual male applicant pursuant to paragraph 1 must not have a direct or indirect discriminatory effect on female applicants. Preference in training

     § 30e. Subject to the requirements of the equal opportunities plan, women shall be given preference in admissions to training and further training measures which qualify them for taking on higher positions (functions).

Representation of women in organs and bodies

     § 30f. When appointing members to the collegial bodies provided for by this Federal Act, when appointing the Director General, the Directors and the Regional Directors, and when appointing and electing the members of bodies, consideration shall be given to the balanced representation of both genders. The organs, federal, regional or local authorities, bodies representing the interests of their members, and other organisations and institutions which are authorised to propose and appoint members of such collegial bodies shall give consideration to that principle when making their proposals and appointments. Advertisement of jobs and functions

     § 30g. When advertising vacancies in the Foundation pursuant to § 27, the requirements and duties related to such job or function shall be worded in a manner addressing women and men equally. Advertisements shall not contain criteria which are not objectively related to the requirements of the vacancy and shall not include additional references suggesting a certain sex. In any event, advertisements shall include the information that applications by women are specifically welcome for jobs of a certain qualification grade or for a certain function if the proportion of women in such a qualification grade or function is below 45 per cent. The personnel selection procedure shall be transparent and comprehensible. The equal opportunities plan pursuant to § 30b may provide for further measures for filling vacant jobs and functions to eliminate existing underrepresentation and existing unfavourable treatment of women in personnel selection procedures. Continued application of legal provisions

     § 30h. The Federal Act on Equal Treatment, Federal Law Gazette I No. 66/2004, and the Federal Act on the Equal Treatment Commission and the Equal Treatment Ombudspersons, Federal Law Gazette No. 108/1979, both as amended, shall remain unaffected by the provisions stipulated in this Part.

Institutions

     § 30i. Persons and institutions that shall deal with equal treatment pursuant to Part 1 of the Federal Act on Equal Treatment, Federal Law Gazette I 66/2004, as amended, and equal opportunities pursuant to this Federal Act, shall be:

1.

the Equal Opportunities Commission,

2.

the Equal Opportunities Officer, and

3.

the Equal Opportunities Working Group.

Equal Opportunities Commission

§ 30j. (1) An Equal Opportunities Commission shall be established within the Foundation, whose members shall be

1.

five representatives to be appointed by the Director General,

2.

five representatives to be appointed by the Central Staff Council, and

3.

one representative of the Equal Opportunities Working Group.

(2) When appointing the members, the Director General on the one hand and the Central Staff Council on the other hand shall alternately appoint three women and two men, and two women and three men, respectively, for each term of office. For the first term of office after the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the Central Staff Council shall appoint three women and two men.

(3) The representative of the Equal Opportunities Working Group shall participate in the meetings of the Equal Opportunities Commission in a consultative capacity, with the exception of the election of the chairperson of the Equal Opportunities Commission in which the representative has a voting right (paragraph 4). Furthermore, the representative of the Equal Opportunities Working Group shall have the same rights to obtain information, make comments and ask questions as the other members.

(4) The members of the Equal Opportunities Commission shall elect from among the members appointed by the Central Staff Council a chairperson, and from among the members appointed by the Director General a deputy chairperson.

(5) For each member, a substitute member of the same sex as the member to be substituted shall be appointed. The members (substitute members) shall be appointed for a term of office of five years; reappointments shall be permitted.

(6) The members (substitute members) of the Equal Opportunities Commission shall have knowledge or experience in the fields of equal treatment and the promotion of women, anti-discrimination, human rights or the representation of employees.

(7) The Equal Opportunities Commission shall deal with all issues relating to Part 1 of the Federal Act on Equal Treatment, Federal Law Gazette I No. 66/2004, as amended, and to equal opportunities pursuant to this Federal Act and, in particular, shall make statements and proposals (§ 30k). The Equal Opportunities Commission shall be entitled to receive and analyse the annual personnel statistics (§ 30p). The Equal Opportunities Commission shall elect the Equal Opportunities Officers and their deputies (§ 30l). The Equal Opportunities Commission shall submit an annual activity report to the Foundation Council.

(8) The Foundation shall make available the human and material resources required for exercising the activities of the Equal Opportunities Commission.

Proceedings before the Equal Opportunities Commission

§ 30k. (1) Upon application of one of the persons or institutions mentioned in paragraph 2, or ex officio, the Equal Opportunities Commission shall establish whether the requirement of equal treatment pursuant to Part 1 of the Federal Act on Equal Treatment, Federal Law Gazette I 66/2004, as amended, or the requirement of equal opportunities pursuant to § 30a to § 30g has been violated.

(2) The following persons or institutions shall be entitled to file an application with the Commission:

1.

every applicant applying for employment or training with the Foundation,

2.

every employee alleging that she or he has been discriminated against pursuant to Part 1 of the Federal

Act on Equal Treatment, Federal Law Gazette I 66/2004, as amended, or that the requirement of equal opportunities pursuant to § 30c to § 30e has been violated,

3.

the Equal Opportunities Working Group, and

4.

every Equal Opportunities Commissioner for her or his field of responsibility.

(3) If the application concerns an individual person, such request requires the consent, with evidence thereof, of the applicant or employee concerned. The applicant shall have the right to be represented by a trusted person in the proceedings before the Equal Opportunities Commission, in particular by the Equal Opportunities Officer or a representative of a body representing the interests of its members.

(4) If the Equal Opportunities Commission is of the opinion that the requirement of equal treatment or the requirement of promoting women has been violated, the Commission shall make a statement to this effect and shall submit to the Director General a proposal in writing of how to implement equal treatment or equal opportunities, and shall request the Director General to end discrimination or ensure equal opportunities and, where necessary, institute proceedings under labour law against the representative or employee of the Foundation responsible for the violation of the requirement. The Director General shall give his or her written opinion, including reasons, within two months. If the Director General does not comply with the proposals, such non-compliance shall be included in the report about the activity of the Equal Opportunities Commission to be submitted to the Foundation Council (§ 30j paragraph 7).

(5) Meetings of the Equal Opportunities Commission shall not be public and shall be confidential. The Equal Opportunities Commission may call in any persons with information, in particular informed representatives of the Foundation, and experts to its meetings. The Equal Opportunities Commission shall be entitled to obtain information or opinions from representatives of the Foundation. The Equal Opportunities Commission shall adopt rules of procedure that regulate, in particular, the quorums necessary for meeting or passing resolutions, the frequency of meetings, forms of convening meetings and detailed rules on the proceedings.

Equal Opportunities Officers

§ 30l. (1) The Director General shall specify at least three fields of responsibility for Equal Opportunities Officers, considering the personnel structure and the regional distribution of offices in the national territory. The Equal Opportunities Commission, after having consulted the Equal Opportunities Working Group, shall appoint one Equal Opportunities Officer for each field of responsibility and her or his deputy from among the staff of the Foundation for a term of office of five years; reappointments shall be permitted. When an Equal Opportunities Officer is appointed for the first time after the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the acting Equal Opportunities Officer shall be consulted instead of the Equal Opportunities Working Group. At least half of the Equal Opportunities Officers and their deputies appointed shall be women. Consideration shall be given, in particular, to knowledge and experience in the fields of equal treatment and the promotion of women, anti-discrimination, human rights or the representation of employees having regard to equal opportunities and the promotion of women.

(2) The Equal Opportunities Officers shall deal with issues relating to the equal treatment of women and men pursuant to Part 1 of the Federal Act on Equal Treatment, Federal Law Gazette I No. 66/2004, as amended, and to equal opportunities within the meaning of this Federal Act. In particular, the Equal Opportunities Officers shall accept, answer or submit to the Equal Opportunities Working Group inquiries, requests, complaints or suggestions of individual employees on issues of equal treatment and the promotion of women falling within their fields of responsibility. The Equal Opportunities Officers shall be informed of job advertisements made in their fields of responsibility and of applications received. The Equal Opportunities Officers shall be entitled to request oral or written information in an application procedure or make comments or proposals. The Equal Opportunities Officers shall be entitled, in matters concerning their fields of responsibility, to request the Equal Opportunities Commission to find that the requirement of equal treatment or equal opportunities has been violated and to take part in meetings of the Equal Opportunities Commission concerning such requests. Equal Opportunities Working Group

§ 30m. (1) An Equal Opportunities Working Group (Working Group) shall be established within the Foundation. The Equal Opportunities Officers and their deputies shall be members of the Working Group. The Working Group shall elect its chairperson and her or his deputy from among its members and shall appoint the member and substitute member for the Equal Opportunities Commission. For the first term of office after the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the acting Equal Opportunities Officer shall be the member of the Equal Opportunities Commission.

(2) The Working Group shall deal with issues relating to the equal treatment of women and men pursuant to Part 1 of the Federal Act on Equal Treatment, Federal Law Gazette I No. 66/2004, as amended, and to equal opportunities within the meaning of this Federal Act. In particular, the Working Group shall inform the Director General, in agreement with the person concerned, of any substantiated suspicion of discrimination or any violation of the requirement of equal opportunities it becomes aware of and submit a proposal on how to implement equal treatment or equal opportunities pursuant to § 30a to § 30g. The Working Group shall be entitled to file applications to the Equal Opportunities Commission (§ 30k paragraph 2), and to receive and analyse the annual personnel statistics (§ 30p).

(3) The Working Group shall be entitled to submit to the Director General a proposal on the preparation of the equal opportunities plan (§ 30b). The Working Group shall be entitled to submit to the General Director a report in writing on its activity and the implementation of equal treatment and equal opportunities in the Foundation in the preceding calendar year.

Legal position and obligation of secrecy

§ 30n. (1) The members of the Equal Opportunities Commission and the Equal Opportunities Officers shall be autonomous and independent in exercising their activities and shall not be bound by any instructions.

(2) The chairperson of the Equal Opportunities Working Group shall be released from work, with remuneration being continued to be paid. The other Equal Opportunities Officers and the members of the Equal Opportunities Commission shall be released from work, with remuneration being continued to be paid, to the extent this is required to fulfil their duties unless the release conflicts with important work-related interests; their superior shall be informed of periods during which they are released from work.

(3) The representatives of the Foundation shall support the members of the Equal Opportunities Commission and the Working Group and the Equal Opportunities Officers in fulfilling their duties and are obligated to provide to them the information required for the exercise of their duties.

(4) The members of the Equal Opportunities Commission and the Equal Opportunities Officers shall keep strictly confidential all personal data and circumstances, official and trade secrets which became known to them exclusively during the exercise of their function, in particular in respect of matters, technical installations, processes and peculiarities relating to operations that were described to them as being confidential. In addition, the members of the Equal Opportunities Commission and the Equal Opportunities Officers shall keep confidential all information entrusted to them by individual employees that are to be treated as confidential due to their nature or at the request of the employees. Such obligation of secrecy shall continue to exist even after the activity as a member of the Equal Opportunities Commission or as an Equal Opportunities Officer ended.

(5) The representatives of the Foundation and supervisors shall not hinder the members of the Equal Opportunities Commission or the Equal Opportunities Officer in exercising their activities and may also not treat them unfavourably for that reason. The members of the Equal Opportunities Commission and the Equal Opportunities Officers may not be put at a disadvantage in their professional career by reason of their activities. Suspension and termination of membership and functions

§ 30o. (1) Membership of the Equal Opportunities Commission or the Equal Opportunities Working Group, and the function as an Equal Opportunities Officer shall be suspended for the time during which a member is released from work, without remuneration being continued to be paid, or is on vacation for more than three months. Such membership or function ends upon expiry of the term of office, upon an assignment abroad, upon retirement from the staff of the Foundation, upon a waiver, and, in the case of Equal Opportunities Officers, upon retirement from the relevant field of responsibility.

(2) The organs authorised to appoint or elect members shall remove members of the Equal Opportunities Commission or Equal Opportunities Officers from their functions if they can no longer exercise their functions for health reasons or grossly fail to comply with or permanently neglect their functional obligations. Personnel statistics

     § 30p. The Foundation shall prepare a statistical analysis of its personnel structure as of 31 October every year and shall submit it to the Equal Opportunities Commission and the Equal Opportunities Working Group. The statistics shall, in particular, illustrate the proportion of sexes in relation to functions, fields of employment, remuneration, part-time employment, duration of employment in a particular position and job applications. Part 6

Programme fees

§ 31. (1) Anyone is entitled to receive the radio and/or television programmes of the Austrian Broadcasting Corporation against continued payment of programme fees (radio fee, television fee).

The amount of the programme fees shall be determined by the Foundation Council at the request of the Director General. The Director General shall make a request for the redetermination of the programme fees subject to commercial requirements, but not later than five years after the last request.

(2) The amount of the programme fees shall be determined in a manner that ensures that the public mandate can be fulfilled on the basis of an economical, cost-effective and expedient administration; in determining the programme fees, regard shall be taken to overall economic developments. The amount of the programme fees shall be limited to the amount required to be able to cover the anticipated net costs of the public mandate in view of the expected number of viewers and listeners obligated to pay programme fees in a period of five years from the time the programme fees were determined (financing period). The presumptions of the anticipated developments on which the calculation of the amount of the programme fees is based shall be well-founded and comprehensible.

(3) The net costs of the public mandate correspond to the costs incurred for fulfilling the public mandate, after deduction of the net revenue generated from commercial activities in connection with activities under public law, other public allocations, in particular allocations pursuant to paragraph 11, and the funds locked up in the dedicated reserve (§ 39 paragraph 2), and taking into account any valuations of the group. Losses from commercial activities may not be included in the calculation.

(4) In addition to the net costs specified in paragraph 3, any financing need for allocating funds to unappropriated equity may be taken into account in determining the programme fees in exceptional cases subject to the requirements of § 39b.

(5) To the extent funds are available in the blocked account (§ 39c) at the time the amount of the programme fees is determined, such funds shall be deducted from the net costs of the public mandate. The funds in the blocked account shall be liquidated evenly over a maximum period of five years. Within the meaning of this Act, such funds shall be deemed to be funds from the programme fees.

(6) When determining the programme fees, increases in prices or costs expected over the next financing period may be included in the calculation of the costs of the public mandate. The funds appropriated for that purpose shall be separately allocated to the blocked account (§ 39c) by the Austrian Broadcasting Corporation and may be used exclusively to cover increases in prices and costs expected for the respective year.

(7) The request by the Director General shall include all information required to determine the programme fees in accordance with the above paragraphs.

(8) The resolution by the Foundation Council determining the amount of the programme fees shall require the approval of the Audience Council. If, within eight weeks after the resolution has been passed in the Foundation Council, no reasonable objection is raised by the Audience Council the latter shall be deemed to have given its approval. If, however, the Audience Council expressly refuses its approval within that period, the resolution by the Foundation Council shall become effective only if it takes a vote of insistence.

(9) Following completion of the procedure pursuant to paragraph 8, the resolution by the Foundation Council, together with the request forming the basis of the resolution, shall be submitted to the regulatory authority. The regulatory authority shall, within three months of submission, set aside the resolution of the Foundation Council pursuant to § 37 paragraph 2 if the resolution contravenes the provisions of the above paragraphs. The period shall commence only if the regulatory authority was provided with all information it needs to make such an assessment. The redetermination of the programme fees shall not come into effect before the period expires. § 13 paragraph 3 of the General Administrative Procedure Act shall apply, with the exception of its last sentence.

(10) Programme fees shall be paid irrespective of the frequency and quality of the programmes or their reception. The commencement and expiry of the obligation to pay such fees as well as an exemption from this obligation shall be subject to the provisions under federal regulations governing radio and television fees.

(11) The federal state shall compensate the Austrian Broadcasting Corporation for the programme fees it loses due to the exemptions mentioned in the above paragraph by means of a financial allocation to be granted annually in the years 2010 to 2013 subject to the following provisions:

1.

The compensation must not exceed the actual loss of income from programme fees incurred due to the exemptions, but may in any event not amount to more than euro 50 million in the years 2010 and 2011 respectively, and more than euro 30 million in the years 2012 and 2013 respectively. The Federal Minister of Finance shall transfer the aforementioned amounts to the Austrian Broadcasting Corporation by 30 June each year and by 31 October in 2010.

2.

Compensation shall be due in the years 2011 to 2013 only if the following general requirements were met in the preceding year:

a)

continuance of the Film/Television Agreement and fulfilment of the resulting obligations by the Austrian Broadcasting Corporation, and

b)

continuance of the Radio Symphony Orchestra, and

c)

continuous increase in the overall service of the proportion of Austria-specific television films, series

and documentaries and children’s programmes in the form of the Austrian Broadcasting Corporation’s own productions, co-productions and productions contracted to third parties, and

d)

increase of the proportion of barrier-free programmes. The basis for calculating the proportions pursuant to c) and d) above shall be the average proportion in the overall content offered by the Austrian Broadcasting Corporation as calculated in 2009.

(12) In addition to the general requirements pursuant to paragraph 11, compensation shall depend on the following special requirements:

1.

in the years 2011 to 2013, on the maintenance of broadcasting operations of the special-interest channel for sports subject to § 4b in the preceding calendar year, and

2.

in the year 2011, on the application for the prior evaluation of the special-interest channel for information and culture being submitted in 2010 (§ 4c),

3.

in the year 2012, on the start and maintenance of regular broadcasting operations in 2011 of the specialinterest channel for information and culture approved by the regulatory authority pursuant to § 6b, and

4.

in the year 2013, on the maintenance of broadcasting operations of the special-interest channel for information and culture in the year 2012.

(13) In addition to the fulfilment of the general and special requirements pursuant to paragraphs 11 and 12, the Austrian Broadcasting Corporation shall take structural measures, subject to the following provisions, to substantially reduce the cost basis in the medium term. For this purpose, the Director General shall submit to the Foundation Council for approval measures, indicators and target values concerning the following issues every year, starting from the year 2010, for the respective subsequent year:

1.

the structural reduction of personnel costs, including a reduction of capacities and a reduction of costs per capita;

2.

sustainable reduction of the cost of materials which are not directly connected to investments in channels, and

3.

optimisation of the modernisation of technology and infrastructure. The Director General shall specify the structural measures in a manner by which balanced results from ordinary activities can be ensured in the medium term. The Director General shall submit the structural measures without delay to the Auditing Commission (§ 40), which shall give its opinion on whether they comply with the requirements of this paragraph within six weeks. If the Auditing Commission does not give an opinion within this period, it is to be presumed that there are no objections in its view. The Director General shall submit the structural measures and the opinion of the Auditing Committee to the Foundation Council, which shall pass a resolution on the measures, indicators and target values subject to the requirements of this paragraph until 31 December of each year. The resolution shall be submitted without delay to the Auditing Commission (§ 40) and the regulatory authority.

(14) Starting in 2011, the regulatory authority shall verify each year that the requirements of paragraphs 11 and 12 were fulfilled in the preceding calendar year. From 2012, it shall also verify that the measures, indicators and target values pursuant to paragraph 13 were implemented and achieved in the preceding calendar year. The Director General shall provide proof of the fulfilment of the requirements of paragraphs 11 and 12 to the regulatory authority by not later than 31 March. In order to be able to verify that the measures, indicators and target values pursuant to paragraph 13 were implemented and achieved in the preceding year, the Director General shall provide a report, including the required supporting documents, to the Auditing Commission by 28 February, starting from 2012. The Auditing Commission shall audit the measures, indicators and target values by 31 March and submit to the regulatory authority the results of its audit, including an audit report.

(15) The regulatory authority shall establish whether the requirements for the compensation pursuant to paragraph 14 were fulfilled in the preceding year. If this is not the case, the regulatory authority shall issue an administrative decision to reclaim the compensation remitted in the preceding year pursuant to paragraph 11 subparagraph 1 and shall transfer the funds to the Federal Minister of Finance. A set-off against the compensation due for the current year (paragraph 11 subparagraph 1) shall be permitted.

(16) The funds paid by way of such compensation shall be deemed programme fees within the meaning of this Act.

(17) Programme fees shall be collected together with and in the same manner as radio and television fees; any other form of payment does not settle the debt.

(18) Outstanding programme fees may be recovered by the legal body in charge of recovering radio and television fees for the benefit of the Austrian Broadcasting Corporation by administrative action in the same way as outstanding radio and television fees.

(19) The lists of fees for commercial communication shall be made easily, directly and permanently accessible on the website of the Austrian Broadcasting Corporation. The lists of fees shall contain provisions with regard to prices, performance, discounts and rebates for commercial communication. The allocation of commercial communication other than that regulated in the list of fees shall not be allowed. Counterdeals against payment or similar to a barter transaction shall be permissible only under certain conditions and shall be stated separately. The regulatory authority shall be notified of the lists of fees. The amount of programme fees shall be published in the Official Gazette "Amtsblatt zur Wiener Zeitung" and on the website of the Austrian Broadcasting Corporation.

§ 31a. (1) (Constitutional provision) The financial activities of the Austrian Broadcasting Corporation shall be subject to the reviewing control by the Court of Audit.

(2) In excising its reviewing control, the Court of Audit shall apply § 12 paragraphs 1, 3 and 5 of the Court of Audit Act, Federal Law Gazette No. 144/1948 mutatis mutandis; it shall inform the Foundation Council of the result of its examination.

Part 6a

Competitive behaviour of the Austrian Broadcasting Corporation

Transfer of sport rights to third parties

§ 31b. (1) To the extent permitted by law, the Austrian Broadcasting Corporation shall grant or assign to other broadcasters, at their request and for a reasonable fee, an authorisation to use sports broadcasts for the types of exploitation required for broadcasting, or grant to them the non-exclusive right to produce a sports broadcast unless the Austrian Broadcasting Corporation itself broadcasts such sports broadcasts on its channels pursuant to § 3 paragraphs 1 and 8.

(2) The Austrian Broadcasting Corporation shall provide to interested broadcasters, at any time, information as to which broadcasting rights may be transferred pursuant to paragraph 1. Simultaneously, the Austrian Broadcasting Corporation shall make such information available online, and shall, without unreasonable delay, decide which broadcasting rights may be transferred.

(3) Claims pursuant to paragraph 1 shall be decided by ordinary courts. Market-compatible behaviour

§ 31c. (1) Funds accruing to the Austrian Broadcasting Corporation out of the programme fees may not be used in a manner which is not required to fulfil the public mandate and distorts competition. In particular, the Austrian Broadcasting Corporation may not use such funds to:

1.

acquire broadcasting rights at excessive prices which cannot be justified by commercial principles;

2.

allocate commercial communication at prices which, measured by commercial principles, are too low or

only serve to increase the market share in the advertising market to the disadvantage of competitors.

(2) Business relationships within the Austrian Broadcasting Corporation, between the Austrian Broadcasting Corporation and its subsidiaries (§ 2 paragraph 2), or between subsidiaries, to the extent such relationships concern business segments which perform activities under the public mandate on the one hand and business segments which perform commercial activities on the other hand, shall comply with the arm’s length principle. The arm’s length principle shall be deemed complied with if such business relationships are subject to the conditions which third parties operating under market conditions would take as a basis of their business transactions.

(3) Commercial activities of the Austrian Broadcasting Corporation, its subsidiaries or associated undertakings shall comply with the market-economy private investor principle within the meaning of Art. 107 of the Treaty on the Functioning of the European Union. In particular, an investment for the initial financing of new commercial activities may only be made if such investment is expected to be profitable, which is why a marketeconomy private investor would also make such an investment. Part 7

Status of programming staff

Independence

§ 32. (1) Within the framework of this Federal Act, the Austrian Broadcasting Corporation and its subsidiaries shall pay due regard to the independence and self-responsibility of all programming staff as well as to the right of all journalistic staff to freely exercise the journalistic profession in discharging the functions assigned to them. In exercising their activities, journalistic staff must not in particular be required to prepare or accept responsibility for anything which contradicts the freedom of the journalistic profession. Justified refusal to do so shall not result in detrimental consequences for them.

(2) All persons who contribute to the design of online services and radio and television programmes are programming staff within the meaning of this Federal Act.

(3) All persons who contribute to the journalistic design of online services and radio and television channels, in particular editors, reporters, correspondents and programmers, are journalistic staff within the meaning of this Federal Act.

(4) Programming and journalistic staff within the meaning of this Federal Act work for the Austrian Broadcasting Corporation or its subsidiaries either as employees or on a free-lance basis.

(5) The following provisions shall apply to journalistic and programming staff of the Austrian Broadcasting Corporation even if they are in employment with the Austrian Broadcasting Corporation, provided that, during a period of six months, the agreed or actual working hours do not exceed a monthly average of four-fifths of 4.3 times the normal working hours per week stipulated by law or collective agreement:

1.

Contracts of employment for a limited period may be concluded in any number and in immediate succession without creating an employment relationship for an indefinite period.

2.

Should the corporation not intend to conclude a further contract of employment for a limited period, it shall notify the employee thereof in writing. Such notification shall be made four weeks prior to the date of expiry of the current contract of employment, provided that no more than three years, with or without interruption, have elapsed since the beginning of the first employment. If the period from the beginning of the first employment exceeds three years, the notification shall be made eight weeks prior to the expiry of the current contract of employment, and if the period exceeds five years, twelve weeks in advance. If such notification is not made at all or in due time, the employee shall be entitled to compensation. In the case of a four-week notification period, such compensation shall amount to 8.33 per cent of the remuneration received from the Austrian Broadcasting Corporation in the previous year; in the case of an eight-week notification period 16.66 per cent, and in the case of a twelve-week notification period 24.99 per cent of such remuneration.

(6) Where a limited employment relationship as specified in paragraph 5 extends over a period of five years, with or without interruptions, from the beginning of the first employment, the employee shall be entitled to a certain payment upon termination of his/her employment in accordance with paragraph 5 subparagraph 2. A termination payment shall also be due if the corporation fails to notify the employee and does not conclude another limited contract of employment or if the employment is terminated prematurely and for justified reasons by the employee or if the employee is unfairly dismissed. Such payment shall, in the case of a period exceeding five years from the beginning of the first employment, amount to one-twelfth of the remuneration received by the employee in the last three years preceding the termination of employment; in the case of a period exceeding ten years, it shall amount to one-ninth; in the case of a period exceeding fifteen years, to one-sixth; in the case of a period exceeding twenty years, to two-ninths, and in the case of a period exceeding twenty-five years, to onethird of such remuneration. Any termination payment that may be due in accordance with other provisions shall be counted towards such payment.

(7) The provisions of paragraph 6 shall not be applicable to contracts of employment for a limited period pursuant to paragraph 5 if the limited employment relationship between a member of the journalistic or programming staff as defined in paragraph 4 and the Austrian Broadcasting Corporation began for the first time after 31 December 2002 unless otherwise provided by an ordinance pursuant to § 46 paragraph 1 last sentence of the Corporate Staff and Self-Employment Provision Act, Federal Law Gazette I No. 100/2002.

(8) For free-lance workers of the Austrian Broadcasting Corporation pursuant to paragraph 4 and employees pursuant to paragraph 5, the contribution pursuant to § 6 of the Corporate Staff and Self-Employment Provision Act shall be paid irrespective of the duration and the date of the commencement or end of the employment relationship.

Editorial Agreement

§ 33. (1) For the purpose of safeguarding the principles laid down in § 32 paragraph 1 for the journalistic staff, an Editorial Agreement shall be concluded by the Austrian Broadcasting Corporation (a subsidiary) on the one hand, and a representative body of the journalistic staff elected in accordance with the principles of equal, direct and secret proportional representation on the other. Two representatives of the trade union for the journalistic staff and two representatives of the Central Staff Council, in the case of a subsidiary, two representatives of the staff council of the subsidiary, shall also participate in the negotiations conducted for concluding an Editorial Agreement.

(2) No Editorial Agreement has been reached, if - in a vote to be held within three weeks of the conclusion of the negotiations - a majority of the journalistic staff refuses to approve the result of the negotiations, which is to be published immediately after their conclusion. A period of at least three weeks must elapse between the conclusion of the negotiations and the date on which the Editorial Agreement becomes effective. As regards the voting rights in a ballot held on the results of the negotiations, paragraph 6 shall apply.

(3) The Editorial Agreement shall in particular contain detailed provisions for:

1.

ensuring self-responsibility of the entire journalistic staff and the free exercise of their journalistic profession in discharging the functions assigned to them;

2.

protecting the journalistic staff against any infringement of their rights;

3.

participating in the determination of personnel and technical issues concerning the journalistic staff;

4.

establishing an arbitration body to determine disputes resulting from the Editorial Agreement.

(4) The rights of the members of the Staff Council must not be affected by the Editorial Agreement, and the possibility provided for by law to bring the case before a court or administrative authority must not be affected by the establishment of the above-mentioned arbitration body.

(5) The responsibility to safeguard the rights of the journalistic staff emanating from the Editorial Agreement shall lie with the Editors' Spokesmen, the Editors' Committee and the Editors' Council, that are elected for a two-year term of office according to the following provisions: in every area of operation of the Austrian Broadcasting Corporation (regional studios, main departments) and a subsidiary, an assembly of the entire journalistic staff shall elect from among its members an Editors' Spokesman in accordance with the principles of proportional representation and in a secret ballot. If the respective area of operation comprises more than ten members of the journalistic staff, an additional Editors' Spokesman shall be elected each time the number exceeds a further ten journalists.

(6) A list of the journalistic staff entitled to vote shall be prepared and published by the Director General for each area of operation and, in the case of subsidiaries, by the executive or managing board, not later than eight weeks prior to the election. Persons claiming to have been wrongfully excluded from the list as well as persons entitled to vote who claim that other persons have been wrongfully included therein, may within a period of two weeks raise an objection to the list. Objections shall be determined by the regulatory authority within a further period of four weeks.

(7) The elected Editors' Spokesmen shall together form the Editors' Committee, which is to discharge the functions specified in the Editorial Agreement. The Editors' Committee shall adopt its own rules of procedure.

(8) The Editors' Committee may, in accordance with the principles of proportional representation, elect from among its members an Editors' Council and entrust it with certain single or recurrent tasks. The Editors' Council shall be responsible to the Editors' Committee.

(9) Experts and persons providing information as well as representatives of the competent trade union and the Central Staff Council, and, in the case of subsidiaries, representatives of the staff council, may attend the meetings of the Editors' Committee or Editors' Council in an advisory capacity if a resolution to that effect is passed by the Editors' Committee or Editors' Council in a majority vote either for single meetings or until the revocation of such a decision.

(10) The first election of the Editors' Spokesmen shall be announced by the elected representatives of the journalistic staff (paragraph 1), further elections shall be announced by the last elected Editors' Committee. At least ten weeks must have elapsed between the declaration and election day. The day of the declaration of the election shall also be the qualifying date regarding the right to vote.

(11) The staff council is entitled to challenge the termination of employment of a member of the journalistic staff before a court competent to determine matters of labour and social law if the employment has been terminated as a result of his/her activities as a member of the Editors' Committee or the Editors' Council or as a result of his/her application for such a position or previous activities in such a position. In addition, § 105 of the Labour Constitution Act shall apply mutatis mutandis.

(12) Resolutions by the Editors' Committee or the Editors' Council are to be communicated to the Director General and the Central Staff Council, in the case of subsidiaries, to the executive or managing board and the staff council.

(13) The Austrian Broadcasting Corporation or its subsidiary shall bear the required operating expenses incurred by the Editors' Committee or the Editors' Council in discharging the functions assigned to it by law or on the basis of the Editors' Agreement.

(14) In all elections and ballots involving the participation of the entire journalistic staff, absentee ballot shall be permissible.

Arbitration Tribunal

§ 34. (1) The Austrian Broadcasting Corporation and its subsidiaries as well as the respective Editors' Committee may terminate an Editors' Agreement in writing, giving six months’ notice. In the event of such termination, negotiations for the conclusion of a new Editors' Agreement shall commence without delay. The last elected Editors' Committee shall be entitled to conclude such an agreement on behalf of the staff.

(2) If by the end of the fourth month following the termination of the Editor's Agreement, a new Editors' Agreement has not been reached and become effective, the Arbitration Tribunal (paragraph 3) shall adopt an Editors' Agreement within six weeks.

(3) This Arbitration Tribunal shall consist of one member appointed by the Editors' Committee and another appointed by the Austrian Broadcasting Corporation or a subsidiary as well as of a chairman who is a jurist not employed by the corporation and is to be appointed by these two members of the Arbitration Tribunal within one week. If the two appointed members cannot agree on a chairman within one week, the regulatory authority shall appoint the chairman of the Arbitration Tribunal.

(4) An Editors' Agreement concluded in accordance with paragraph 2 shall cease to be effective as soon as a new Editors' Agreement has been negotiated and become effective. Part 8

Legal control

Regulatory authority

§ 35. (1) Supervision of the Austrian Broadcasting Corporation by the federal state shall be confined to supervision under the terms of this Federal Act, without prejudice to the reviewing control by the Court of Audit. Legal supervision shall be the responsibility of the regulatory authority. The regulatory authority shall also decide on objections raised pursuant to § 33 paragraph 6.

(2) The regulatory authority shall also be responsible for legal supervision of the activities of the subsidiaries of the Austrian Broadcasting Corporation in the light of their compliance with the provisions of this Federal Act.

(3) Unless otherwise provided, the regulatory authority within the meaning of this Federal Act is KommAustria.

Legal supervision

§ 36. (1) Apart from the cases specified in this Federal Act and in the KommAustria Act, the regulatory authority shall make decisions, unless such decisions fall within the competence of another administrative authority or a court of law, regarding violations of the provisions of this Federal Act, with the exception of the provisions of Part 5a, or regarding violations of the scope of a service concept, including any obligations imposed pursuant to § 6b paragraph 2,

1.

upon complaints

a)

by a person claiming to be directly aggrieved as a result of a violation of the law;

b)

by a viewer or listener within the meaning of the Broadcasting Fees Act who pays or is exempt from

paying radio and television fees if the complaint is supported by at least 120 such persons or persons who live in the same household with a viewer or listener who pays or is exempt from paying radio and television fees;

 

c)

by an undertaking whose legal or economic interests are affected by the alleged violation.

2.

upon a request

a)

by the federal state or a province;

b)

by the Audience Council;

c)

by at least one third of the members of the Foundation Council;

d)

by the Association for Consumer Information or a legal body representing the interests of its

members insofar as a violation on television channels of the provisions of § 13 paragraphs 1, 2, 3, 4 first sentence, 5 and 6, § 14 paragraphs 1 and 5 penultimate sentence and last sentence, or § 15, § 16 and § 17, paragraphs 1 to 3 is alleged;

e)

insofar as a violation on television channels of the provisions referred to in d) is alleged, also by one of the bodies and organisations of another Member State of the European Union published in the Official Journal of the European Communities by the European Commission under Article 4 paragraph 3 of Directive 98/27/EC on injunctions for the protection of consumers' interests, OJ No. L 166 of 11 June 1998, page 51, last amended by Directive 2006/123/EC, OJ No. L 376 of 27 December 2006, page 36, provided that

1.

the interests protected by that institution are affected in that Member State, and

2.

the purpose of the institution set out in the publication justifies the request.

3.

ex officio

a)

where there is substantiated suspicion that services provided pursuant to § 3 paragraph 5

subparagraph 2 or channels operated pursuant to § 3 paragraph 8 do not comply with the regime established by § 4b to § 4f and the service concepts (§ 5a), including any obligations imposed pursuant to § 6b paragraph 2;

b)

on the basis of audit reports pursuant to § 40 paragraph 6 if there is substantiated suspicion of a violation of the provisions pursuant to § 8a, § 31c and § 39 to § 39b.

(2) Support of a complaint under paragraph 1 subparagraph 1 (b) is to be proved by a list of signatures showing the identity of the persons supporting the complaint.

(3) Complaints shall be submitted within six weeks, and requests within six months, from the date of the alleged violation of this Federal Act. Complaints and requests that are manifestly unfounded shall be rejected without further proceedings.

(4) The Austrian Broadcasting Corporation shall record all its programmes and online services and keep them for at least ten weeks. If called upon to do so by the regulatory authority, it shall make available to the authority any recordings requested by it. Moreover, it shall grant any person who can prove a legal interest therein the right to inspect its recordings.

 

 

Decisions

§ 37. (1) The decisions of the regulatory authority shall consist of a finding as to whether and on the basis of which facts there has been a violation of a provision of this Federal Act.

(2) If the regulatory authority finds that there has been a violation of the ORF Act by one of the organs referred to in § 19, which still persists at the time of its finding, the regulatory authority may set aside the decision of the organ concerned. The organ concerned must without delay create a situation which corresponds to the legal view of the regulatory authority. If the organ concerned fails to comply with this obligation, the regulatory authority may dissolve the collegial body concerned or remove the organ concerned, notifying at the same time the Foundation Council or - in those cases where the violation of the ORF Act has been committed by the Foundation Council itself – the Federal Government thereof. In such a case, new appointments shall be made without delay for the organ concerned in accordance with this Federal Act.

(3) The regulatory authority shall determine complaints and requests without unreasonable delay, but not later than within six months from the date of receipt.

(4) The regulatory authority may rule that its decision be published and instruct the Austrian Broadcasting Corporation or a subsidiary at which time, in which form and on which channel or in which online service the publication shall be made.

Administrative penalties

§ 38. (1) Insofar as the following provisions apply to that person’s activities, any person who operates a channel, offers an on-demand service or provides an online service under this Federal Act and

1.

violates the programming principles set out in § 10 paragraphs 1, 2 or 11 to 13;

2.

acts contrary to § 13 paragraph 4, § 13 paragraphs 1 to 6, § 14 paragraphs 1, 3 to 5 and 9 or § 15 to § 17;

 

3.

does not operate a quality assurance system contrary to § 4a, does not carry out an analysis of the structure of channels or audience monitoring, or violates § 4a paragraph 7;

4.

does not submit a report contrary to § 7;

5.

does not carry out a prior evaluation contrary to § 6,

6.

does not separate in organisational or financial terms commercial activities from activities under the

public mandate contrary to § 8a, uses funds from programme fees for commercial activities or acts contrary to § 8a paragraph 6;

7.

acts contrary to § 9b;

8.

does not provide information or make information available online contrary to § 31b;

9.

does not comply with the arm’s length principle contrary to § 31c paragraph 2;

10.

does not maintain separate accounts pursuant to § 39 paragraph 5;

commits an administrative offence and shall be liable to a fine of up to euro 58,000.

(2) A person who acts contrary to § 38a paragraph 3, § 38b paragraph 2 or § 40 paragraph 5 commits an administrative offence and shall be liable to a fine of up to euro 36,000.

(3) There has been no administrative offence within the meaning of paragraph 1 if the deed constitutes an offence that is subject to the jurisdiction of an ordinary court of law or carries a severer sentence under other administrative penal provisions.

(4) Administrative penalties shall be imposed by the regulatory authority. The fines shall accrue to the Federal Government.

Recovery procedure

§ 38a. (1) Without prejudice to a decision pursuant to § 37 or § 38, the regulatory authority shall order, by administrative decision, that income from programme fees be recovered if the Austrian Broadcasting Corporation

1.

has used funds from the programme fees for activities exceeding the limits of the public mandate, in particular for an activity for which a prior evaluation would have had to be carried out but was not carried out, or activities for which the authority issued a negative decision after a prior evaluation had been carried out, in the amount of such funds, or

2.

increased the need for financing out of programme fees due to behaviour pursuant to § 31c although this would not have been required to fulfil the public mandate, in the amount of the increased programme fees, or

3.

created or allocated funds to a special reserve contrary to § 39a. Funds which would have to be deducted pursuant to § 31 paragraph 3 when the programme fees are determined shall be deemed funds from programme fees within the meaning of this provision.

(2) If recovery is ordered by an administrative decision, the Austrian Broadcasting Corporation shall transfer funds in the amount ordered to the blocked account pursuant to § 39c and shall state them separately. If the funds recovered in that manner exceed 0.5 per cent of the net costs of the public mandate, the Austrian Broadcasting Corporation shall redetermine programme fees not later than in the subsequent year pursuant to the provisions of § 31, and shall deduct the funds recovered pursuant to paragraph 1 from the net costs of the public mandate (§ 31 paragraph 5).

(3) The Austrian Broadcasting Corporation shall, at the regulatory authority’s request, make available to the authority all information, answer all its inquiries and allow the inspection of all books and records to the extent this is required to determine the amount to be recovered. If the regulatory authority is not able to determine or calculate the amount to be recovered on the basis of information, answers to inquiries, books or records, it shall estimate such amount. All circumstances of significance to the estimate shall be taken into account.

(4) The amount shall be estimated, in particular, if the Austrian Broadcasting Corporation does not submit books or records which it is required to keep by law or if the books and records are factually incorrect or contain deficiencies which are likely to cast doubt on the factual correctness of the books or records.

(5) Paragraph 1 subparagraph 2 shall not be applied if the behaviour fulfils the elements of Art. 102 of the Treaty on the Functioning of the European Union.

Recovery of enrichment

§ 38b. (1) If the regulatory authority finds that the Austrian Broadcasting Corporation has obtained an economic advantage by unlawfully acting contrary to the provisions of § 13 to §17, or the limit on income pursuant to § 18 paragraph 1 has been exceeded, the regulatory authority may determine an amount equalling the amount of the economic advantage obtained and declare it is to be recovered.

(2) The Austrian Broadcasting Corporation shall make available to the regulatory authority, at the authority’s request, all information, answer all its inquiries and allow the inspection of all books and records to the extent this is required to determine the amount to be recovered. If the regulatory authority is not able to determine or calculate the amount to be recovered on the basis of information, answers to inquiries, books or records, it shall estimate such amount. The estimate shall take into account all circumstances that are of significance to it.

(3) The amount recovered shall accrue to the federal state.

Part 9

Financial control

Rendering of accounts

     § 39. (1) The Director General shall keep the books of the Foundation. For this purpose, the provisions of

§ 189 to § 216, § 222 to § 234, § 236 to § 239, § 243 and § 244 to § 267 of the Business Code as regards the

consolidated annual financial statements and the group management report shall be applied analogously.

 

(2) Any annual surplus resulting from the annual financial statements shall be allocated to a separate reserve (dedicated reserve) after the allocation of funds to the reserves permissible under the income tax provisions, after the allocation of funds to a special reserve pursuant to § 39a or after taking into account the use of funds on the conditions of § 39b. The dedicated reserve may be used only for the fulfilment of the public mandate. It may also be used to cover losses resulting from the fulfilment of the public mandate and shall be used preferentially for that purpose.

(2a) The dedicated reserve shall be limited to the amount of 10 per cent of the costs budgeted for the fulfilment of the public mandate, calculated on the basis of the average of the annual costs budgeted in the preceding five years. Funds may be allocated to the dedicated reserve pursuant to paragraph 2 only until the amount specified in the first sentence has been reached. Any share of the annual surplus exceeding that amount shall be allocated to the blocked account pursuant to § 39c and shall be stated separately. If surpluses are allocated to the blocked account in that manner in three subsequent years, the Auditing Commission shall establish in the annual audit whether the amount of the programme fees corresponds to the actual financing needs of the Austrian Broadcasting Corporation. If this is not the case, the programme fees shall be redetermined pursuant to § 31 paragraph 1 of the ORF Act not later than in the following year.

(3) The disclosure of the annual financial statements and the management report and of the consolidated annual financial statements and the group management report shall be governed analogously by § 277, § 280 and § 281 of the Business Code.

(4) In accounting pursuant to paragraph 1, it must be guaranteed that the requirements of Commission Directive 80/723/EEC concerning the transparency of financial relations between the Member States and public undertakings as well as on financial transparency within certain undertakings, OJ No. L 193 of 29 July 2000, page 75, as amended by Directive 2005/81/EC, OJ No. L 312 of 29 November 2005, page 47, regarding the maintenance of separate books with a division of expenses and earnings according to business segments and with a detailed description of the method used to allocate expenses and earnings to the various business segments, are complied with and that

1.

the internal accounts corresponding to the different business segments are kept separate,

2.

all expenses and earnings are correctly allocated on the basis of uniformly applied and objectively

justified accounting principles, and

3.

cost accounting principles underlying the system of separate book-keeping are clearly defined.

(5) The Austrian Broadcasting Corporation shall draft guidelines for maintaining separate accounts, which shall include the cost accounting principles pursuant to paragraph 4 and specific instructions as to how expenses and earnings shall be allocated to individual business segments. The guidelines for maintaining separate accounts shall be submitted to the Auditing Commission (§ 40) and the regulatory authority. The regulatory authority shall prohibit, by way of administrative decision, the guidelines for maintaining separate accounts within eight weeks of their submission if the guidelines do not comply with the provisions of this Act. Special reserve

§ 39a. (1) The creation of a special reserve by the Austrian Broadcasting Corporation shall be permitted only for specific projects of the following kind:

1.

fundamental corporate restructuring measures, including ancillary costs;

2.

large-scale investments in fixed assets to fulfil the public mandate;

3.

transition costs related to technological innovation which do not have a direct effect on the scope of

services subject to the public mandate.

All projects shall be clearly distinct from projects in the context of ongoing business operations; they shall not include the ongoing financing of public law channels and services.

(2) At the time a special reserve is created, or at the time funds are allocated to such reserve, if this occurs later, the project shall be specifically described, and both its realisation and its total costs shall be sufficiently certain. A special reserve may be created not earlier than five years before the expected start of the realisation of the project.

(3) A special reserve appropriated for specific purposes may only be created if the anticipated total costs of the project concerned exceed the amount of euro 10 million; creation of such a reserve shall be permissible irrespective of the type of financing chosen for the project. The maximum amount of the special reserve shall be limited to the present value of the anticipated costs of the project, proof of which shall be provided; interest may not be included in the calculation.

(4) A special reserve shall be used exclusively for the purpose for which it was appropriated, affecting net income, at the same time as actual expenses are incurred, but not longer than for the duration of depreciation within the meaning of provisions under tax law. The premature use of the reserve for the purpose for which it was appropriated shall be possible at any time.

(5) The special reserve may be reversed only through the blocked account (§ 39c) if such reversal is not made for the purposes for which the reserve was appropriated. The reserve shall be reversed in any event if the reversal for the benefit of the project is not commenced within a maximum period of five years after the time which was specified as the anticipated commencement of the implementation of the project at the time the special reserve was created.

(6) The creation of, allocation of funds to and use or reversal of special reserves shall require the consent of the Foundation Council. Furthermore, the Auditing Commission and the regulatory authority shall be notified of the creation and reversal of an appropriated special reserve as soon as it becomes clear prior to the preparation of the annual financial statements that such a reserve will be created/reversed. Such measure shall be audited separately during the annual audit.

Preservation of equity

§ 39b. (1) If in the preceding business years, restricted to the current and preceding regular financing period, the equity capital of the Austrian Broadcasting Corporation has decreased due to losses from the fulfilment of the public mandate, the Austrian Broadcasting Corporation may increase its freely available equity capital for the fulfilment of the public mandate if without such an increase the continued fulfilment of the public mandate cannot be ensured in the medium term.

(2) For an increase, the following requirements shall be met:

1.

without the increase the continued fulfilment of the public mandate cannot be ensured in the medium term (over a period of five years);

2.

the equity capital contributed may be used exclusively for the fulfilment of the public mandate and not for commercial activities;

3.

the equity capital of the Austrian Broadcasting Corporation decreased in the current and/or the preceding financing period due to losses from the fulfilment of the public mandate;

4.

the increase does not exceed the amount of such losses.

(3) The evaluation of the need for an increase of the equity capital to ensure the continued fulfilment of the public mandate shall take into account both the risk of insolvency and overindebtedness.

(4) The following forms of an increase of the freely availably equity capital shall be permitted:

1.

creation of an unappropriated reserve from any excess of income over the net costs of the public mandate which has already been allocated to the dedicated reserve;

2.

creation of an unappropriated reserve from any excess of income over the net costs of the public mandate which has been allocated to the blocked account;

3.

creation of an unappropriated reserve from income from programme fees;

4.

creation of an unappropriated reserve from state funds separately allocated after approval by the

European Commission; in that case even if the requirements of paragraphs 2 and 3 have not been met. The Austrian Broadcasting Corporation does not have a legal claim to such funds.

(5) The measures for the preservation of equity capital pursuant to paragraph 4 subparagraphs 1 to 3 shall be approved by the Foundation Council. Furthermore, the Auditing Commission and the regulatory authority shall be notified of the intended use of funds of the dedicated reserve in the cases of paragraph 4 subparagraph 1 as soon as it becomes clear prior to the preparation of the annual financial statements that such funds will be used. In the cases of paragraph 4 subparagraphs 2 and 3, an application for the implementation of the measure shall be filed with the regulatory authority. The regulatory authority shall establish, on the basis of an opinion by the Auditing Commission, whether and to what extent an increase is permissible and shall approve the measure if the statutory requirements have been met.

Blocked account

     § 39c. The Austrian Broadcasting Corporation shall keep a blocked account for the funds allocated pursuant to § 31 paragraph 6, § 38a, § 39 paragraph 2a and § 39a paragraph 5, and shall separately state such funds. The funds of the blocked account shall be used subject to the provisions of § 31 paragraph 5, § 38a paragraph 2 and § 39b paragraph 4.

Auditing Commission and annual audit

§ 40. (1) Notwithstanding the review by the Court of Audit, the annual financial statements and the management report as well as the consolidated annual financial statements and the group management report shall be audited by an Auditing Commission consisting of at least two members who shall jointly conduct the audit and submit a report on the result. If the members of the Auditing Commission reach different results, a special note shall be made of this in the audit report.

(2) The members of the Auditing Commission shall be appointed by the regulatory authority for a term of five business years. Only certified public accountants or accounting firms shall be eligible to be appointed as members of the Auditing Commission. When the members of the Auditing Commission are selected, care shall be taken that the certified public accountant or the accounting firm is structured in a manner that is required for efficiently auditing undertakings and groups of undertakings with similar sales volumes and have experience in auditing such undertakings and groups of undertakings. § 271 of the Business Code shall apply mutatis mutandis in all other respects to the selection of the members of the Auditing Commission, provided, however, that grounds for exclusion were given neither in the current nor in the preceding financing period. Members may not serve on the Auditing Commission for two subsequent terms of office. The Auditing Commission may impose upon itself rules of procedure. The members of the Auditing Commission shall be remunerated by the regulatory authority. § 270 paragraph 5 of the Business Code shall apply mutatis mutandis to remuneration. The regulatory authority shall demand payment from the Austrian Broadcasting Corporation of remuneration paid by it by means of an administrative decision.

(3) The Auditing Commission shall examine the annual financial statements, together with the accounting system, and the management report not later than three months after their date of submission. The subject matter and the scope of the audit shall be governed analogously by § 269 of the Business Code. Further, the audit shall also include the aspects of economy, efficiency and expediency of business practice and compliance of the accounting and business management with statutory rules, in particular § 8a, § 31c and § 39 to § 39b. For that purpose, the Auditing Commission shall inspect, on a random basis, the entire accounting records of the Austrian Broadcasting Corporation. Without prejudice to § 2 paragraph 3 second sentence, auditing powers shall also include checking the scope of activities of subsidiaries within the meaning of this provision and compliance with the restrictions of § 8a and § 31c paragraphs 2 and 3.

(4) The regulatory authority may make specific audit requests to the Auditing Commission at any time and also exceeding the annual audit.

(5) All organs and employees of the Austrian Broadcasting Corporation shall be required to grant the members of the Auditing Commission and the regulatory authority access to all documents and to provide the requisite information. For all other purposes, § 272 of the Business Code shall be applied analogously.

(6) The provisions of § 273 and § 274 of the Business Code concerning the audit report and audit certificate shall be applied mutatis mutandis. Furthermore, the report shall include information on all findings in connection with the audit pursuant to paragraph 3 third sentence. An audit report shall also be prepared if a specific audit is requested pursuant to paragraph 4. The audit report shall be submitted to the Director General and the Foundation Council for their opinion, to be given within four weeks, and then to the regulatory authority together with all opinions given. The audit reports and all documents which were the subject matter of an audit shall be kept for a minimum of three financing periods and held available for any subsequent checks.

(7) The members of the Auditing Commission shall not be subject to an obligation of secrecy vis-à-vis the regulatory authority. The members of the Auditing Commission shall provide all information and submit all documents to the regulatory authority which the regulatory authority needs to exercise its responsibilities imposed by law. In addition, the regulatory authority may use experts in exercising its auditing duties imposed by law.

 

Special audit

§ 41. (1) Any organ of the Foundation may request a special audit in order to review management procedures and the compliance with the purpose of the Foundation. For such a request by the Foundation Council or the Audience Council, a decision by a two-thirds majority is required.

(2) The court must order such a special audit if reliable evidence is presented that dishonest actions or gross violations of the law have occurred.

(3) The appointment of a special auditor may, at the request of a Foundation organ, be made subject to a reasonable security deposit. At the request of a Foundation organ, the court shall decide on the basis of the results of the special audit whether the costs are to be borne by the requesting parties or by the Foundation or divided between them on a pro-rata basis. If the request turns out to be unfounded following the result of the special audit and if the parties requesting it are found to have acted with intention or gross negligence, they shall be jointly liable to indemnify the Foundation for any damage resulting from the special audit.

(4) As regards all other aspects of the special audit and the appointment of a special auditor, § 40 paragraph 2 second to fourth sentences and paragraph 6 shall apply. In regard to the right to obtain information, § 40 paragraph 4 shall be applied. As regards measures to be taken in accordance with the present rules, jurisdiction shall be exercised in non-contentious proceedings by the Vienna Commercial Court. Part 10

Jurisdiction of the courts

Procedures

     § 42. Unless otherwise specified in this Federal Act, matters subject to court jurisdiction under this Federal Act shall be dealt with and decided by the Vienna Commercial Court in accordance with the Code of Civil Procedure.

Criminal provisions

     § 43. A prison term of up to two years or a fine of up to 360 daily rates shall be imposed on persons who, as member of a Foundation organ or as representative,

1.

provide incorrect information or fail to disclose relevant circumstances in representations or overviews of the assets of the Foundation, especially in connection with annual financial statements;

2.

fail to disclose relevant circumstances, make incorrect representations on the financial standing of the Foundation or otherwise provide wrong information in statements to be submitted to the members of the Auditing Commission or other auditors of the Foundation under § 272 of the Business Code, or

3.

provide wrong information or fail to disclose relevant circumstances concerning the facts which must be stated in the Annex (§ 236 to § 239 of the Business Code) or in the management report (§ 243 of the Business Code).

Part 11

Transitional and final provisions

Transformation and current contracts

§ 44. (1) The current business entity by the name of "Oesterreichischer Rundfunk" (Austrian Broadcasting Corporation) shall be transformed into a public law foundation of the same name. This status-changing transformation shall be deemed completed as of 31 December 2001. From this date, the Austrian Broadcasting Corporation shall continue to exist as a foundation under public law, with the identity of the legal entity remaining unchanged.

(2) The status-changing transformation of the "Austrian Broadcasting Corporation" business entity into a public law foundation of the same name shall be registered in the Commercial Register by the Director General until 15 January 2002.

(3) The Director General shall present a transformation balance sheet in conformity with § 189 to § 216 of the Business Code by 31 December 2001. § 40 shall apply analogously.

(4) The transformation of the "Austrian Broadcasting Corporation" business entity into a public law foundation is exempted from all federal fees and taxes. The exemption from fee and tax duties also applies to changes of the land register entry of "Oesterreichischer Rundfunk GesmbH" into that of the "Austrian Broadcasting Corporation" Foundation.

(5) Contracts governing the advertising activities of programming or journalistic staff of the Austrian Broadcasting Corporation who, prior to the promulgation of this Federal Act, regularly presented other programmes (§ 13 paragraph 3) on radio and television channels of the Austrian Broadcasting Corporation, may be still be performed until 31 December 2002, after which date they shall be annulled. Terms of office

§ 45. (1) The term of office of the present Board of Trustees and the present Listeners' and Viewers' Representation of the Austrian Broadcasting Corporation ends on 31 December 2001. These organs shall continue to conduct business on an interim basis until the Foundation Council and the Audience Council are established in accordance with this Federal Act. The terms of office of the organs to be constituted under this Federal Act shall not commence before 1 January 2002, notwithstanding their appointment, election or constitution prior to that date.

(2) Preparations for the organisation and personnel-related measures required for the appointment of the members of the Foundation Council and the Audience Council, including the invitation to appoint members, may commence on the entering into force of the provisions of § 20a, § 21 paragraph 1 subparagraphs 2, 3 and 5, § 22 paragraph 1 first sentence and paragraph 2, § 23 paragraphs 2 subparagraphs 2 and 3, § 24, § 26, § 28, § 29b and of § 30 paragraph 1 subparagraph 2. Such preparatory measures shall be taken by the Federal Chancellor. To the extent that preparatory measures for the election of the Audience Council are necessary under § 28, they shall be taken by the Austrian Broadcasting Corporation.

(3) The members of the Audience Council and the Foundation Council shall be appointed without delay. The constitutive meeting of the Audience Council shall decide on the members of the Foundation Council to be appointed by the Audience Council. The constitutive meetings shall be convened by the present chairman of the Board of Trustees acting on behalf of the Foundation Council, by the present chairperson of the Listeners' and Viewers' Representation on behalf of the Audience Council, and for all other cases of reconstitution, by the chairperson presently in office on behalf of the organ concerned, and shall be chaired by these persons until another chair has been elected.

(4) The vacancy note for the post of Director General to be elected by the Foundation Council must be advertised without delay in the Official Gazette "Amtsblatt zur Wiener Zeitung" by the chairman of the Foundation Council. There shall be a deadline of four weeks to submit applications.

(5) The Foundation Council shall elect a Director General without delay and decide on his or her proposals for the distribution of business.

(6) The newly elected Director General shall ensure, with the consent of the Foundation Council, the publishing of vacancy notes for the posts of Directors and Regional Directors without delay. There shall be a deadline of four weeks to submit applications. The terms of office of the incumbent managers, Directors (including that of the director of the foreign news service) and Regional Directors end with the appointment of new Directors and Regional Directors pursuant to this Federal Act.

(7) The incumbent Director General shall conduct business until the start of the term of office of the newly elected Director General.

Execution

§ 46. (1) The task of executing this Federal Act, to the extent that it is not within the purview of the Federal Government and also subject to the Federal Ministries Act of 1986, Federal Law Gazette No. 76, shall be entrusted to the Federal Chancellor, the Federal Minister of Finance, the Federal Minister of Justice, the Federal Minister of Transport, Innovation and Technology and the Federal Minister of Social Security and Generations.

(2) The task of preparing and implementing the decisions of the Federal Government shall be discharged by the Federal Chancellor.

(3) Proceedings pending before the Commission for the Preservation of the Broadcasting Act at the time of the entering into force of the Federal Act published in Federal Law Gazette I No. 32/2001 shall be carried on and settled by the Commission pursuant to the provisions of the Broadcasting Act, Federal Law Gazette No. 379/1984, as amended by Federal Law Gazette I No. 49/2000. Note of implementation

§ 47. (1) With this Federal Act, the Directive 2010/13/EU on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive), OJ No. L 95 of 15 April 2010, page 1, shall be implemented. This Federal Act was notified in compliance with Directive 98/34/EC laying down a procedure for the provision of information in the field of technical standards and regulations and of rules on information society services, OJ No. L 204 of 21 July 1998, page 37, last amended by Directive 2006/96/EC, OJ No. L 363 of 20 December 2006, page 81 (notification number 2010/136/A).

(2) With this Federal Act, the Directive 98/27/EC on injunctions for the protection of consumers’ interests, OJ No. L 166 of 11 June 1998, page 51, last amended by Directive 2006/123/EC, OJ No. L 376 of 27 December 2006, page 36, is implemented.

(3) With this Federal Act, Commission Directive 80/723/EEC on the transparency of financial relations between the Member States and public undertakings as well as on financial transparency within certain undertakings, OJ No. L 193, of 29 July 2000, page 75 as amended by Directive 2005/81/EC, OJ No. L 312 of 29 November 2005, page 47 is implemented.

Applicability of other federal laws

§ 48. (1) To the extent that this Federal Act contains references to other federal laws, the latter shall be applied in accordance with their most recent version.

(2) The performance of broadcasting activities under this Federal Act shall not be subject to the 1994 Trade and Industry Act.

(3) The Private Foundation Act, Federal Law Gazette No. 654/1993, and the Federal Foundation and Fund Act, Federal Law Gazette No. 11/1975, shall not be applicable to the "Austrian Broadcasting Corporation" Foundation.

(4) The provisions of the Labour Constitution Act, Federal Law Gazette No. 22/1974, concerning matters of group representation shall be applicable to the Austrian Broadcasting Corporation.

(5) The Austrian Broadcasting Corporation as an employer shall have full capacity to enter into collective bargaining agreements. The Central Staff Council of the Austrian Broadcasting Corporation shall have full capacity to enter into collective bargaining agreements.

(6) Unless otherwise provided in this Federal Act, the Media Act, Federal Law Gazette No. 314/1981, and the E-Commerce Act, Federal Law Gazette I No. 152/2001, as well as the provisions on advertising of the Medicines Act, Federal Law Gazette No. 185/1983, the Act on Medical Devices, Federal Law Gazette No. 657/1996, and the restrictions on advertising in the legal provisions governing the exercise of health care professions shall remain unaffected.

Entering into effect

§ 49. (1) The title and provisions of § 20a, § 21 paragraph 1 subparagraphs 2, 3 and 5, § 22 paragraph 1 first sentence and paragraph 2, § 23 paragraph 2 subparagraphs 2, 3 and 10, § 24, § 26, § 28, § 29b, § 30 paragraph 1 subparagraph 2, § 44 and § 45 as amended by Federal Law Gazette I No. 83/2001 shall enter into effect on 1 August 2001.

(2) The other provisions shall enter into effect on 1 January 2002. At the same time, § 2a, § 2b, § 2c, § 2d, § 3a, § 5a to § 5h, § 20, § 29 and § 29a as amended by Federal Law Gazette I No. 32/2001 cease to apply.

(3) As of 1 January 2002, § 20a shall be designated to as "§ 20" and § 29b as "§ 29".

(4) § 32 paragraphs 6 to 8 as amended by the Federal Act promulgated in Federal Law Gazette I No. 100/2002 shall enter into effect on 1 January 2003 unless otherwise provided by an ordinance pursuant to § 46 paragraph 1 of the Corporate Staff and Self-Employment Provision Act.

(5) § 36 paragraphs 1 and 6 as amended by the Federal Act promulgated in Federal Law Gazette I No. 97/2004 shall enter into effect on 1 August 2004. The provisions of § 36 paragraphs 1 and 6 as amended by the Federal Act promulgated in Federal Law Gazette I No. 100/2002 shall be applied to proceedings instituted before the Federal Communications Board before the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 97/2004.

(6) § 3, § 9a, § 14 and § 17 as amended by the Federal Act promulgated in Federal Law Gazette I No. 159/2005 shall enter into effect on 1 January 2006.

(7) § 1, § 3, § 9, § 9b, § 15, § 20, § 21, § 26, § 28, § 39, § 40 and § 43 including their headings as amended by the Federal Act promulgated in Federal Law Gazette I No. 52/2007 shall enter into effect on 1 August 2007.

(8) § 32 paragraph 8 as amended by the Federal Act promulgated in Federal Law Gazette I No. 102/2007 shall enter into effect on 1 January 2008.

(9) § 1 to § 21, § 23, § 26, § 28, § 30 to § 31, § 31b to § 40 and § 47 to § 50, including the names of the parts, headings of the parts, names of the sections and headings of the sections as amended by the Federal Act promulgated in Federal Law Gazette I No. 50/2010, shall enter into effect on 1 October 2010. § 16, as amended by the Federal Act Federal promulgated in Law Gazette I No. 50/2010, shall only apply to programmes produced after 19 December 2009. The provision of § 24 paragraph 2, as amended by the Federal Act promulgated in Federal Law Gazette I No. 50/2010, shall enter into effect on 1 January 2012. Transitional provisions

§ 50. (1) For the special-interest channel for sports pursuant to § 4b, the Austrian Broadcasting Corporation shall submit to the regulatory authority a service concept (§ 5a) for the first time not later than six months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 has entered into effect. The special-interest channel for sports may be provided in any event until then and until expiry of the period following submission of the service concept mentioned in § 5a paragraph 2. Within the limits of § 4b, no prior evaluation shall be required for the special-interest channel for sports.

(2) For online services pursuant to § 4e which were already provided by the Austrian Broadcasting Corporation by 31 January 2008 or newly created or amended by the Austrian Broadcasting Corporation between 31 January 2008 and the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the Austrian Broadcasting Corporation shall submit to the regulatory authority service concepts (§ 5a) for the first time not later than six months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 has entered into effect. In this period, the Austrian Broadcasting Corporation may continue to provide such online services. No prior evaluation shall be required for such services.

(3) The following transitional provisions shall apply to online services pursuant to § 4f:

1.

For online services pursuant to § 4f which were already provided by the Austrian Broadcasting Corporation by 31 January 2008, the Austrian Broadcasting Corporation shall submit to the regulatory authority service concepts (§ 5a) for the first time not later than six months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 has entered into effect. In this period, the Austrian Broadcasting Corporation may continue to provide such online services. No prior evaluation shall be required for such services. In deviation from the aforementioned sentences, the Futurezone.ORF.at and oe3.orf.at/instyle services shall be discontinued as of 1 October 2010.

2.

For online services pursuant to § 4f which were newly created or amended by the Austrian Broadcasting Corporation between 31 January 2008 and the entering into effect of the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the Austrian Broadcasting Corporation shall submit to the regulatory authority service concepts (§ 5a) for the first time not later than six months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 has entered into effect. If the requirements of § 6 have been fulfilled, as compared to the online services pursuant to § 4f existing as of 31 January 2008, a prior evaluation shall be carried out within the period mentioned in the first sentence. Online services pursuant to paragraph 3 subparagraph 2 may be provided without commercial communication until expiry of the period mentioned in § 5a paragraph 2 or, if applicable, until completion of the prior evaluation.

(4) The Austrian Broadcasting Corporation shall prepare the guidelines for maintaining separate accounts pursuant to § 39 paragraph 5 within 12 months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 has entered into effect. The measures required for the separation in organisational and financial terms pursuant to § 8a shall be completed by 31 December 2010.

(5) The provisions of Part 9 as amended by the Federal Act promulgated in Federal Law Gazette I No. 50/2010 shall be applied to the preparation of the annual financial statements and consolidated annual financial statements for 2010. In respect of the auditing criteria, consideration shall be given to the transitional period mentioned in the above paragraph.

(6) Upon the entering into effect of this Federal Act as amended by the Federal Act promulgated in Federal Law Gazette I No. 50/2010, the Auditing Commission last appointed pursuant to § 40, as amended by the Federal Act promulgated in Federal Law Gazette I No. 159/2005, shall be deemed dissolved.

(7) The Austrian Broadcasting Corporation shall submit the notifications provided for in § 3 paragraphs 4a, 6 and 7 and § 5 paragraphs 1 and 4 as amended by the Federal Act promulgated in Federal Law Gazette I No. 50/2010 not later than six months after the Federal Act promulgated in Federal Law Gazette I No. 50/2010 was promulgated.