The Law on Financing Public Needs in Culture (1990 amended in 1993, and 2009) classifies public needs which can be financed in three ways: from the budget, from public funds, and through public enterprises. The 2009 changes related to the introduction of online applications, while in 2012 and 2013 the changes were introduced through the Rules for Determining Cultural Projects Reflecting Public Needs that included the obligation of elaboration of the strategic plans of institutions that apply for funding, and the amendments connected to related changes of jurisdiction of cultural councils. The Law on the Areas of Counties, Towns and Municipalities in the Republic of Croatia (2006, amended in 2007, 2008, 2010, 2013 and 2015) established the administrative structure of the Republic of Croatia for the purposes of classifying those activities to be financed from the different budgets at particular levels.
General laws regulating the financing of culture include the Law on Financing Public Needs in Culture (1990 amended in 1993, and 2009) and subsequently adopted new Rules for Determining Cultural Projects Reflecting Public Needs and the Law on Cultural Councils (2001, amended in 2004, 2009, and 2013). The amendments related to a shifting of responsibilities for the establishment and functioning of Culture Councils from city government to Mayoral Offices or equivalent, a change in the jurisdiction of councils, number of members, and the possibility of cities with more than 20 000 inhabitants being able to establish cultural councils (or other municipalities if they deem it necessary) and prevention of conflict of interest of council members (see chapter 5.1.2).
Cultural councils are consultative bodies but the Minister has the discretion to accept or reject their proposals and make the final decision on financing of particular projects or programmes.
With regard to compulsory public tendering, cultural institutions have to follow the general rules about public procurement.