The proposal was approved with 135 votes in support, 27 against and 25 abstentions. The new institute will be based on the current Hungarian National Film Fund but it will also function as the legal successor for tasks carried out by the Television Film Funding Organisation and the Television Film College.

The legislation stipulates that funds that have so far gone unused will be transferred to the new institute.

The purpose of setting up the new institute is to eliminate parallel procedures, standardise distribution, ensure predictable and continual work opportunities in the film industry and introduce standard professional controls over content and distribution, the justification of the law said.

The institute will be headed by a board which will commission committees to make decisions on funding. The institute will be funded from the central budget.