Factbox: the RAI reform bill, as approved by the Senate

(ANSA) - Rome, July 31 - Premier Matteo Renzi's RAI public broadcaster reform bill approved Friday by the Senate calls among other measures for RAI to have a CEO with wider powers and a slimmer, less invasive board of directors.
    The bill as it stands is made up of six articles.
    Article 1 of the bill extends RAI employee contracts to five years and bolsters the role of cabinet prior to every renewal of the national RAI labor contract.
    Article 2 of the bill says the RAI board of directors appoints the CEO to serve for a period of three years, based on shareholder recommendations - therefore including the Treasury. He or she can be removed by the board.
    The CEO can appoint senior managers, but must consult the board on editorial appointments. If two-thirds of the board agrees on a name, that opinion is binding.
    The CEO is empowered to sign contracts worth up to 10 million euros, and has total autonomy as to the economic management of the broadcaster. The Senate approved amendments preventing the CEO from holding government office or positions at competitor companies at the same time.
    As well, the CEO must be free of conflicts of interest.
    The Senate also approved amendments on a plan regulating company transparency and corporate communications. An amendment by Silvio Berlusconi's opposition center-right Forza Italia (FI) party introduced a measure empowering the RAI board to name a chairman from among its members. That nomination must be approved by two-thirds of the RAI oversight committee.
    The RAI board of directors is reduced from nine to seven members. Of these, four are to be elected by a joint session of the two houses of parliament, two are nominated by the government and one by employees.
    The Senate also approved amendments on the prerequisites of good standing for board members, and extending salary caps to all RAI staff except the CEO.
    Article 3 sets out rules on the responsibilities of board members as far as contract tenders. It also waives the application of the public contract code in two cases: to contracts involving the purchase, development, production or sales of broadcast programs; and to labour, service and supply contracts whose amounts are below thresholds relevant under EU norms.
    Article 4 was quashed by the Senate. It gave government a mandate to change the RAI licence fee paid by taxpayers. The amendments quashing it were filed by opposition parties and a dissenting minority from within the premier's Democratic Party (PD), over government objections.
    Article 5 of the bill gives government a mandate to reorganize and simplify the broadcaster.
    The Senate floor excluded from that mandate any references to technological evolution and market changes. Article 6 of the bill was replaced on the Senate floor by a government amendment, according to which the rules for nominating the board of directors will become applicable as of the first renewal of the board.
    The RAI director-general - who will be nominated under the current Gasparri law which is in the process of being reformed - will also have CEO powers.
    The bill now goes to the Lower House for another reading.