The lower levels of cultural competencies correspond to the constitutional division of territorial administrative units: districts (oblast) and municipalities (obshtina). According to the Law on Protection and Development of Culture, regional cultural institutes could be founded, transformed or closed by the Council of Ministers on a proposal by the Minister of Culture, in agreement with the regional governor, after a decision by the municipal council on whose territory their headquarters are located. Regional cultural institutes are funded by:
- The municipalities on whose territory their headquarters are located, there are additional funds provided from the state budget for their subsistence;
- From contributions made to their budgets from the state and the municipalities on whose territory regional cultural institutes operate, the amount of which are determined annually by decision of the relevant municipal councils.
In some regions (Smolyan, for example) there is a Regional Council of Culture, an consultative and coordinating body to the Regional Governor. It task is to assist the governor in the implementation of the state cultural policy. The creation of such councils is not explicitly required by law.