Brazil 1988 Constitution (reviewed 2017) - Page 10 of 10

Table of Contents

THE TRANSITIONAL CONSTITUTIONAL PROVISIONS ACT 1988

Article 1

At the time of its promulgation, the President of the Republic, President of the Supreme Federal Tribunal, and members of the National Congress shall take an oath to maintain, defend and comply with the Constitution.

Article 2

On September 7, 1993, through a plebiscite, the electorate shall define the form of government (republic or constitutional monarchy) and the system of government (parliamentary or presidential) that shall prevail in the Country.

Widespread dissemination of these forms and systems through means of mass communication shall be assured free of charge from concessionaires of public services.
Upon promulgation of the Constitution, the Superior Electoral Tribunal shall issue rules regulating this article.

Article 3

This Constitution shall be revised after five years, counting from its promulgation, by vote of an absolute majority of members of the National Congress in a unicameral session.

Article 4

The mandate of the present President of the Republic shall end on March 15, 1990.

The first election for President of the Republic after promulgation of the Constitution shall be held on November 15, 1989, without applying the provisions of art. 16 of the Constitution.
The irreducibility of the present representation of the States and Federal District in the Chamber of Deputies is assured.
Mandates of the Governors and Lieutenant Governors elected on November 15, 1986, shall end on March 15, 1991.
Mandates of the present Prefects, Vice-Prefects and County Legislators shall end on January 1, 1989, when those elected shall take office.

Article 5

The provisions of art. 16 and the rules of art. 77 of the Constitution shall not apply to elections scheduled for November 15, 1988.

For the elections on November 15, 1988, electoral domicile in the district at least four months prior to the election shall be required, and candidates who meet such requirement and satisfy the other legal requisites may register with the Electoral Courts after promulgation of the Constitution.
In the absence of a specific legal provision, it shall be up to the Superior Electoral Tribunal to issue the rules required to hold the 1988 elections, respecting current law.
Current members of the Federal and State Legislatures elected as Vice-Prefects shall not lose their parliamentary mandates if called to serve as Prefects.
For the representation to be elected in 1988, the number of county legislators per county shall be determined by the respective Regional Electoral Tribunal, respecting the limits set out in art. 29, IV, of the Constitution.
In the elections to be held on November 15, 1988, except for those who already hold an elective mandate, spouses and relatives by blood, or marriage or adoption, up to the second degree, of the President of the Republic, a State Governor, the Governor of the Federal District and Prefects who have served more than half of their mandate, are ineligible for any office within the jurisdiction of the office holder.

Article 6

In the six months following promulgation of the Constitution, groups of at least thirty Federal Congressmen may request that the Superior Electoral Tribunal register a new political party; their petition is to be accompanied by the manifest, by-laws and program, duly signed by the petitioners.

Provisional registration, which is to be granted forthwith by the Superior Electoral Tribunal pursuant to this article, gives to the new party all the rights, duties and prerogatives of existing parties, including the right to participate, under its own name, in elections held during the twelve months following its formation.
The new party automatically loses its provisional registration if, within twenty-four months of its formation, it does not obtain definitive registration from the Superior Electoral Tribunal, as provided by law.

Article 7

Brazil shall strive for creation of an international human rights tribunal.

Article 8

Amnesty is granted to those who, during the period from September 18, 1946, to the date of promulgation of the Constitution, were affected, for exclusively political reasons, by exceptional acts, either institutional or complementary, to those encompassed by Legislative Decree N°. 18 of December 15, 1961, and to those affected by Decree-Law N°. 864 of September 12, 1969, assuring during their inactivity, the promotions to the offices, positions or ranks to which they would be entitled had they been in active service, obeying the periods for remaining in positions provided for in the laws and regulations in force, respecting the characteristics and peculiarities of the careers of public civil servants and the military, observing their respective legal regimes.

The provisions of this article shall cause financial effects only after promulgation of the Constitution, prohibiting any kind of retroactive compensation.
The benefits established in this article are assured to private sector workers, and officers and representatives of syndicates who, for exclusively political reasons, were punished, dismissed or compelled to leave the remunerated activities they had performed, as well as to those who were prevented from carrying out their professional activities by ostensive pressures or secret official procedures.
Economic reparations shall be granted, in accordance with a law initiated by the National Congress and that shall enter in force within twelve months after promulgation of the Constitution, to all citizens who were prevented from carrying out specific professional activities in civil life because of Reserved Ordinances N°. S-50-GM5 of June 19, 1964, and N°. S-285GM5 of the Aeronautics Ministry.
Those who, by the force of institutional acts, have gratuitously served in the elective office of county legislators shall be entitled to computation of these respective periods for purposes of civil service retirement and social security.
The amnesty granted in the terms of this article applies to civil servants and to employees at all levels of government or in governmental foundations, state companies or mixed-capital companies under state control, except for military ministries, who have been punished or dismissed because of professional activities interrupted by decision of their workers, as well as because of Decree-Law No. 1.632 of August 4, 1978, or for exclusively political reasons, ensuring readmission of those affected as of 1979, observing the provisions of § 1°.

Article 9

Those who, for exclusively political reasons, had their mandates quashed or their political rights suspended during the period from July 15 to December 31, 1969, by acts of the then President of the Republic, may request that the Supreme Federal Tribunal recognize the rights and advantages interrupted by these punitive acts, provided that they prove that such acts were grossly flawed.

Sole Paragraph

The Supreme Federal Tribunal shall render its decision within one hundred-twenty days from the interested party’s request.

Article 10

Until such time as the complementary law referred to in art. 7, I, of this Constitution is enacted:

the protection referred to therein is limited to a fourfold increase in the percentages provided for in the heading of art. 6, and § 1° of Law No. 5.107 of September 13, 1966;
arbitrary dismissal or dismissal without just cause is prohibited:
1. for an employee elected to the position of a director of an internal accident prevention committee, from the date of registration as a candidate until one year after the end of his mandate;
2. for a pregnant employee, from the date the pregnancy is confirmed until five months after birth.

Until the law regulates the provisions of art. 7, XIX, of the Constitution, the period of paternity leave referred to in the subparagraph shall be five days.
Until further legal provisions, the contributions to fund the activities of rural syndicates shall be collected together with the rural property tax by the same collecting agency.
After the promulgation of the Constitution, upon initial proof of compliance with labor obligations by rural employers, pursuant to art. 233, the regularity of the contract and the updating of labor obligations for the entire period shall be certified before the Labor Courts.

Article 11

Each State Legislative Assembly with constituent powers shall draft the State Constitution within one year of the promulgation of the Federal Constitution, obeying the principles of the Federal Constitution.

Sole Paragraph

After a State Constitution has been promulgated, it shall be the responsibility of the County Legislatures to vote on their respective Organic Laws within six months, in two terms of discussion and voting, respecting the provisions of the Federal and State Constitutions.

Article 12

Within ninety days of the promulgation of the Constitution, a Committee on Territorial Studies shall be created, with ten members appointed by the National Congress and five by the Executive, for the purpose of submitting studies concerning the national territory and draft bills on new territorial units, notably in the Legal Amazonian Region and in areas awaiting solutions.

Within one year the Committee shall submit the results of its studies to the National Congress so that such studies may be examined during the next twelve months, in the terms of the Constitution, with the Committee dissolving shortly thereafter.
Within three years of the enactment of the Constitution, the States and Counties by agreement or arbitration shall demarcate their borders presently in litigation, and for such purpose they may alter and compensate areas because of natural phenomena, historical criteria, administrative convenience and convenience of the bordering populations.
At the request of interested States and Counties, the Union may assume the task of demarcation.
If within three years after promulgation of the Constitution, the demarcation task has not been concluded, the Union shall determine the boundaries of the disputed areas.
The current borders of the State of Acre with the States of Amazonas and Rondônia are recognized and confirmed, in conformity with the cartographic and geodesic surveys conducted by the Tripartite Commission composed of representatives of the States and of the specialized technical services of the Brazilian Institute of Geography and Statistics.

Article 13

The State of Tocantins is created by carving it out of the area described in this article, and its admission shall occur on the forty-sixth day after the elections provided for in § 3°, but not before January 1, 1989.

The State of Tocantins is part of the Northern Region and is bounded by the State of Goías along the northern boundaries of the Counties of São Miguel do Araguaia, Porangatu, Formoso, Minaçu, Cavalcante, Monte Alegre de Goiás and Campos Belos, maintaining the current eastern, northern and western borders of Goiás with the States of Bahia, Piauí, Maranhão, Pará and Mato Grosso.
The Executive shall designate one of the cities of the State as its provisional Capital until approval of the definitive seat of government by the Constituent Assembly.
The Governor, Lieutenant Governor, Senators, Federal Deputies, and State Representatives shall be elected, in a single round, within seventy-five days after promulgation of the Constitution, but not before November 15, 1988, at the discretion of the Superior Electoral Tribunal, obeying, inter alia, the following rules:
1. the period for party affiliation of the candidates shall end seventy-five days prior to the date of the election;
2. the dates for the regional party conventions to decide upon coalitions and choice of candidates, for the presentation of the request to register the candidates chosen and for other legal procedures shall be determined on a special calendar by the Electoral Courts;
3. occupants of state or county offices that have not definitively resigned such offices by seventy-five days prior to the date of the elections provided for in this paragraph are ineligible;
4. the current regional directors of the political parties of the State of Goías are maintained, with the national executive committees being responsible for designating provisional committees for the State of Tocantins, under the terms and for the purposes provided for by law.
The mandates of Governor, Lieutenant Governor and Federal and State Representatives elected in accordance with the preceding paragraph shall end concurrently with those of the other units of the Federation; the mandate of the Senator elected with the fewest votes shall end at the same time, and the mandates of the other two Senators shall end at the same time as those Senators elected in 1986 in the other States.
The State Constituent Assembly shall be installed on the forty-sixth day after election of its members, but not before January 1, 1989, under the presidency of the President of the Regional Electoral Tribunal of the State of Goías and shall inaugurate the elected Governor and Lieutenant Governor on the same date.
The legal rules regulating division of the State of Mato Grosso shall apply, where appropriate, to the creation and admission of the State of Tocantins, observing the provisions of art. 234 of the Constitution.
The State of Goías is released from debts and charges resulting from undertakings within the territory of the new State, and the Union is authorized to assume such debts under at its discretion.

Article 14

The Federal Territories of Roraima and of Amapá are transformed into Federated States, maintaining their current geographic borders.

The admission of the States shall occur upon inauguration of their governors elected in 1990.
The rules and criteria adopted for the creation of the State of Rondônia apply to the transformation and admission of the States of Roraima and Amapá, respecting the provisions of the Constitution and of this Act.
Within forty-five days after promulgation of the Constitution, the President of the Republic shall submit to the Federal Senate for consideration the names of governors of the States of Roraima and Amapá, who shall exercise the powers of the Executive until the new States are admitted with the inauguration of their elected governors.
So long as their transformation into States remains uncompleted in the terms of this article, the Federal Territories of Roraima and Amapá shall enjoy the benefits from the transfer of funds provided for in arts. 159, I, a, of the Constitution and 34, § 2°, II of this Act.

Article 15

The Federal Territory of Fernando de Noronha is abolished and its area is reincorporated into the State of Pernambuco.

Article 16

Until the provisions of art. 32, § 2°, of the Constitution become effective, the President of the Republic, with the approval of the Federal Senate, shall be responsible for appointing the Governor and Lieutenant Governor of the Federal District.

Until the Federal District’s Legislature is installed, its powers shall be exercised by the Federal Senate.
Until the Legislative Chamber is installed, supervision of the accounting, finances, budgets, operations and patrimony of the Federal District shall be done by the Federal Senate through external control, with the assistance of the Tribunal of Accounts of the Federal District, observing the provisions of art. 72 of the Constitution.
The property of the Federal District shall include the assets that come to be attributed to it by the Union, as provided by law.

Article 17

Earnings, remuneration, advantages and additional pay, as well as retirement benefits being received inconsistently with this Constitution, shall be reduced immediately to the limits arising therefrom, not permitting invocation of vested rights nor allowing receipt of excess sums on any account.

Cumulative holding of two positions or jobs exclusively for doctors by one person is assured if held by a military physician in the direct or indirect public administration.
Cumulative holding of two positions or jobs exclusively for health professionals by one person is assured if held in the direct or indirect public administration.

Article 18

Any legislative or administrative act, issued after installation of the National Constituent Assembly, whose objective is to grant tenure to a public servant admitted without a public competitive examination to the direct or indirect administration, including foundations instituted and maintained by the Government, is null and without legal effect.

Article 19

Civil public servants of the Union, States, Federal District and Counties, in the direct administration, autarchies and public foundations, who, on the date of promulgation of the Constitution, have held their positions for at least five continuous years, without having been admitted in the manner regulated by art. 37 of the Constitution, are deemed to have tenure in the public service.

The period of service of the civil servants referred to in this article shall be counted as a credential when they take a competitive examination for the purpose of effectuating their admission, as provided by law.
The provisions of this article do not apply to the holders of confidential or commission positions, offices or jobs, nor to those who by law can be freely discharged. The period of service of these persons shall not be computed for the purposes of the heading of this article, unless they are civil servants.
The provisions of this article do not apply to professors of higher education, as provided by law.

Article 20

Within one hundred and eighty days, the rights of inactive civil servants and pensioners shall be revised, and the income and pensions owed them shall be updated so as to adjust them to the provisions of the Constitution.

Article 21

Professional judges with a limited term of office who have been admitted by means of public competitive examinations and professional credentials and who are in office on the date this Constitution is promulgated, acquire tenure, observing the probationary period, and they shall constitute a group being phased out, maintaining the jurisdiction, prerogatives and restrictions of the laws to which they have been subjected, except for those inherent to the transitory nature of their investiture.

Sole Paragraph

Retirement of the judges referred to in this article shall be regulated by the rules established for other state judges.

Article 22

Public defenders holding office by the date of installation of the National Constituent Assembly are assured the right to opt for the career, observing the guarantees and prohibitions provided for in art. 134, sole paragraph, of the Constitution.

Article 23

Until art. 21, XVI, of the Constitution is regulated, those presently holding the positions of federal censor shall continue to exercise functions compatible with such office in the Federal Police Department, observing the constitutional provisions.

Sole Paragraph

The law referred to shall provide for the utilization of the Federal Censors, in the terms of this article.

Article 24

Within eighteen months of promulgation of the Constitution, the Union, States, Federal District and Counties shall issue laws establishing criteria for making their personnel compatible with the provisions of art. 39 of the Constitution and with the administrative reform resulting therefrom.

Article 25

One hundred and eighty days after promulgation of the Constitution, such period being subject to extension by law, all legal provisions conferring or delegating to an agency of the Executive, powers assigned by the Constitution to the National Congress, shall be revoked, especially with respect to:

normative actions;
allocations or transfers of funds of any kind.

The effects of decree-laws sent to the National Congress and not evaluated by it when the Constitution is promulgated shall be regulated in the following manner:
1. if issued by September 2, 1988, they shall be evaluated by the National Congress within a period of up to one hundred and eighty days from the date of promulgation of the Constitution, not counting legislative recess;
2. if the time period defined in the preceding subparagraph elapses without evaluation of the decree-laws mentioned therein, they shall be deemed rejected;
3. in the situations defined in subparagraphs I and II, acts performed when the respective decree-laws were in effect shall be fully valid; if necessary, the National Congress may legislate on their remaining effects.
Decree-laws issued between September 3, 1988, and the promulgation of the Constitution shall, on the latter date, be converted into provisional measures, applying the rules established in art. 62, sole paragraph.

Article 26

Within one year of the promulgation of the Constitution, the National Congress shall sponsor, through a Joint Committee, an analytical and expert examination of the acts and facts that produced Brazil’s foreign debt.

The Committee shall have the legal authority of a parliamentary investigative committee for purposes of requisitions and calling witnesses, and shall act with the assistance of the Tribunal of Accounts of the Union.
If irregularities are found, the National Congress shall propose that the Executive declare the acts null and void and shall send the process to the Federal Public Ministry, which shall take appropriate action within sixty days.

Article 27

The Superior Tribunal of Justice shall be installed under the Presidency of the Supreme Federal Tribunal.

Until the Superior Tribunal of Justice is installed, the Supreme Federal Tribunal shall exercise the powers and jurisdiction defined in the prior constitutional regime.
The initial composition of the Superior Tribunal of Justice shall be made up:
1. by utilization of the Ministers of the Federal Tribunal of Appeals;
2. by appointment of the Ministers needed to complete the number established in the Constitution.
For the purposes of the Constitutional provision, the present Ministers of the Federal Tribunal of Appeals shall be deemed to belong to the class they came from at the time of the their appointment.
After the Tribunal has been installed, retired Ministers of the Federal Tribunal of Appeals automatically become retired Ministers of the Superior Tribunal of Justice.
The Ministers referred to in §2°, II, shall be indicated in a list of three by the Federal Tribunal of Appeals, observing the provisions of art. 104, sole paragraph, of the Constitution.
Five Federal Regional Tribunals are created, to be installed within six months from promulgation of the Constitution; their jurisdiction and place of sitting are to be determined by the Federal Tribunal of Appeals, taking into account the number of cases and their geographical location.
Until the Federal Regional Tribunals are installed, the Federal Tribunal of Appeals shall exercise the jurisdiction attributed to the Federal Regional Tribunals throughout the National territory. The Federal Tribunal of Appeals shall also provide for their installation and indicate candidates for all initial offices by means of a list of three that may include federal judges of any region, observing the provisions of § 9°.
After promulgation of the Constitution, filling vacant positions for Ministers of the Federal Tribunal of Appeals is prohibited.
If there are no federal judges with the minimum period of service provided for in art. 107, II, of the Constitution, promotions may be granted to judges with fewer than five years in office.
The Federal Courts shall have the power to adjudicate the cases filed therein until promulgation of the Constitution, and the Federal Regional Tribunals, as well as the Superior Tribunal of Justice, shall decide rescissory actions against decisions rendered until then by the Federal Courts, including those involving matters for which jurisdiction has been transferred to another branch of the Judiciary.
The following Federal Regional Tribunals are now created: the 6th Region, with its seat in Curitiba, State of Paraná, with jurisdiction in the States of Paraná, Santa Catarina, and Mato Grosso do Sul; the 7th Region, with its seat in Belo Horizonte, State of Minas Gerais, with jurisdiction in the State of Minas Gerais; the 8th Region, with its seat in Salvador, State of Bahia, with jurisdiction in the States of Bahia and Sergipe; and the 9th Region, with its seat in Manaus, State of Amazonas, with jurisdiction in the States of Amazonas, Acre, Rodônia, and Roraima.

Article 28

The federal judges referred to in art. 123, § 2°, of the Constitution of 1967, with the wording given by Constitutional Amendment No. 7 of 1977, shall be vested in office in courts of the judicial section for which they were appointed or designated; if there are no vacancies, the existing courts shall be divided.

Sole Paragraph

For purposes of promotion by seniority, the period of service of such judges shall be computed from the day they took office.

Article 29

Until such time as the complementary laws related to the Public Ministry and to the Advocate-General of the Union are approved, the Federal Public Ministry, Office of the Procurator of the National Treasury, Legal Advisory Offices of the Ministries, Procuracies and Legal Departments of federal autarchies with their own representation and members of the procuracies of universities that are public foundations shall continue to conduct their activities within their respective powers.

Within one hundred and twenty days, the President of the Republic shall send to the National Congress a draft of a complementary law providing for the organization and operations of the Advocacy-General of the Union.
The present Procurators of the Republic, in accordance with the complementary law, shall be given the irrevocable option between careers in the Federal Public Ministry and in the Advocacy-General of the Union.
A member of the Public Ministry admitted prior to the promulgation of the Constitution may opt for the previous regime with respect to guarantees and advantages, with due regard, as to prohibitions, for the legal situation on the date of promulgation.
The present members of the supplementary staff of the Public Ministries of Labor and the Military who have acquired tenure in these positions become integral members of the staff of their respective careers.
It is the responsibility of the current Procuracy General of the National Treasury, directly or by delegation, which may be made to the State Public Ministry, to represent the Union legally in court in tax cases, in their respective spheres of authority, until such time as the complementary laws provided for in this article are enacted.

Article 30

The legislation that creates the justices of the peace shall maintain the present judges of peace until the new justices take office, assuring them the rights and powers conferred upon the latter, and shall determine the date for the election provided for in art. 98, II, of the Constitution.

Article 31

The clerks of the law courts, as defined by law, shall be taken over by the States, respecting the rights of the present clerks.

Article 32

The provisions of art. 236 do not apply to notarial and registry services that have already been made official by the Government, respecting the rights of their employees.

Article 33

Except for support payments, the value of pending court orders for payment of judgments against the government on the date of the promulgation of the Constitution, including remaining interest and monetary correction, may be paid in the currency of the day, with updating, in equal and successive annual installments, over a maximum period of eight years from July 1, 1989, by Executive decision issued within one hundred and eighty days from promulgation of the Constitution.

Sole Paragraph

To comply with the provisions of this article, the debtor entities may each year issue, in the exact amount of the payment, public bonds, which shall not be computed for purposes of determining the aggregate limit of indebtedness.

Article 34

The national tax system shall go into effect on the first day of the fifth month following promulgation of the Constitution; until then the system of the 1967 Constitution, with the wording given by Amendment No. 1 of 1969 and subsequent amendments, is retained.

When the Constitution is promulgated, arts. 148, 149, 150, 154, I, 156, III, and 159, I, c, shall go into force, revoking all provisions to the contrary in the 1967 Constitution and the Amendments that modified it, especially its art. 25, III.
The Fund for the Participation of the States and of the Federal District and Fund for the Participation of the Counties shall obey the following determinations:
1. starting with the promulgation of the Constitution, the percentages shall be eighteen and twenty percent, respectively, calculated on the revenues from collection of the taxes referred to in art. 153, III and IV, maintaining the present criteria for apportionment until entry into force of the complementary law referred to in art. 161, II;
2. one percentage point shall be added to the percentage of the Fund for the Participation of the States and the Federal District in fiscal year 1989; starting in and including 1990, one-half of one percent per fiscal year shall be added up to and including 1992, reaching in 1993 the percentage established in art. 159, I, a;
3. the percentage for the Fund for the Participation of the Counties shall be raised at the rate of one-half of one percent per fiscal year, starting in and including 1989, until it reaches the limit established in art. 159, I, b.
When the Constitution has been promulgated, the Union, States, Federal District and Counties may issue the laws necessary to apply the national tax system therein provided for.
The laws issued in accordance with the preceding paragraph shall take effect as soon as the national tax system provided for in this Constitution enters into force.
Once the new national tax system is in force, application of the preexisting legislation is assured to the extent that it is not incompatible with the new national tax system and with the legislation referred to in §§ 3° and 4°.
Until December 31, 1989, the provisions of art. 150, III, b, do not apply to the taxes dealt with in arts. 155, I, a and b, and 156, II and III, which may be collected thirty days after publication of the law that instituted or increased such taxes.
Until fixed in a complementary law, the maximum rates for the county tax on retail sales of liquid and gaseous fuels shall not exceed three percent.
If, within sixty days of promulgation of this Constitution, the complementary law necessary for the institution of the tax dealt with in art. 155, I, b, has not been issued, the States and the Federal District shall determine the rules to regulate the matter provisionally by means of a compact entered into in accordance with Complementary Law No. 24, of January 7, 1975.
Until a complementary law deals with the matter, firms distributing electric power, shall be responsible for the payment of the tax on the circulation of merchandise levied on electric power from production or importation up to the last operation, either as taxpayers or taxpayer substitutes, at the time the product leaves their establishments, even if the destination is another unit of the Federation. The tax is calculated on the price charged on the final sale, assuring payment of such tax to the State or to the Federal District, depending on the place where such sale occurs.
So long as the law provided for in art. 159, I, c, which is to be enacted by December 31, 1989, is not in force, the funds dealt with in that provision shall be allocated in the following manner:
1. six-tenths of one percent to the Northern Region, through Banco da Amazonia S.A.;
2. one and eight-tenths percent to the Northeastern Region, through Banco do Nordeste do Brasil S.A.;
3. six-tenths of one percent to the Central Western Region, through Banco do Brasil S.A.
The Development Bank of the Central-West is hereby created, as provided by law, so as to comply with the provisions of arts. 159, I, c and 192, § 2°, of the Constitution in that region.
The urgency provided for in art. 148, II, shall not adversely affect collection of the compulsory loan created for the benefit of Centrais Elétricas Brasileiras S.A. (Eletrobrás) by Law No. 4.156 of November 28, 1962, as subsequently amended.

Article 35

The provisions of art. 165, § 7° shall be complied with progressively over a period of up to ten years, distributing the funds among the macro-economic regions in proportion to their population, based on the situation determined for the 1986-87 biennium.

In applying the criteria dealt with in this article, the total expenses shall exclude expenses for:
1. projects considered priorities in the multi-year plan;
2. national security and defense;
3. maintenance of the federal agencies in the Federal District;
4. the National Congress, the Tribunal of Accounts of the Union and the Judiciary;
5. servicing the debt of the direct and indirect administration of the Union, including foundations instituted and maintained by the Federal Government.
Until such time as the complementary law referred to in art. 165, § 9°, I and II, comes into force, the following rules shall be obeyed:
1. the proposed multi-year plan that is to be in effect until the end of the first fiscal year of the subsequent presidential mandate shall be submitted not less than four months before the end of the first fiscal year and returned for presidential approval by the end of the legislative term;
2. the draft of the law on budgetary directives shall be submitted not less than eight-and-one half months before the end of the fiscal year and returned for presidential approval by the end of the first period of the legislative term;
3. the draft of the budget law of the Union shall be submitted not less than four months before the end of the fiscal year and returned for presidential approval by the end of the legislative term.

Article 36

Funds in existence on the date the Constitution is promulgated, except for those resulting from tax exemptions that become private property and those of interest to national defense, shall be eliminated if they are not ratified by the National Congress within two years.

Article 37

Adaptation to what is established in art. 167, III, shall be done within five years, reducing the excess at the rate of at least one-fifth per year.

Article 38

Until enactment of the complementary law referred to in art. 169, the Union, States, Federal District and Counties shall not spend more than sixty-five percent of the amount of their respective current revenues on personnel.

Sole Paragraph

When the respective expenditures with personnel exceed the limit provided for in this article, the Union, States, Federal District and Counties shall return to such limit by reducing the excess percentage at the rate of one-fifth per year.

Article 39

After promulgation of the Constitution, for purposes of compliance with the constitutional provisions that involve variations of expenses and receipts of the Union, the Executive shall prepare and the Legislature shall consider a bill revising the budget law of fiscal year 1989.

Sole Paragraph

The National Congress shall vote on the complementary law provided for in art. 161, II, within twelve months.

Article 40

The Free Trade Zone of Manaus, with its characteristics of a free trade area, export and import and fiscal incentives, shall be maintained for a period of twenty-five years from promulgation of the Constitution.

Sole Paragraph

The criteria that regulate or which come to regulate approval of projects in the Free Trade Zone of Manaus may be modified only by federal law.

Article 41

The Executive Branches of the Union, States, Federal District and Counties shall reevaluate all sectorial tax incentives now in force and shall propose the appropriate measures to their respective Legislative Branches.

Those incentives not confirmed by law within two years for the date of the promulgation of the Constitution shall be considered revoked.
Revocation shall not prejudice any rights that have vested before such date, with respect to incentives granted conditionally and for limited periods of time.
Incentives granted by interstate compacts in accordance with art. 23, § 6° of the 1967 Constitution, with the wording of Amendment No. 1 of October 17, 1969, shall also be reevaluated and reconfirmed within the time limits of this article.

Article 42

For forty (40) years, the Union shall allocate from the funds destined for irrigation:

20% (twenty percent) to the Central-Western Region;
50% (fifty percent) to the Northeastern Region, preferentially in the semi-arid region.

Sole Paragraph

From the percentages provided for in subparagraphs I and II of the heading, a minimum of 50% (fifty percent) shall be destined for irrigation projects that benefit family farms that meet the requirements provided for in specific legislation.

Article 43

On the date of the promulgation of the law regulating the prospecting and mining of mineral resources and deposits, or within one year from the date of the promulgation of this Constitution, the authorizations, concessions and other instruments conferring mineral rights shall lose their effects if one cannot prove that the prospecting or mining has been started within the legal time limits or if they have become inactive.

Article 44

Brazilian firms presently owning prospecting authorizations, concessions for the working of mineral resources, and concessions for using hydraulic energy sites shall have four years, starting from the promulgation of the Constitution, to comply with the requirements of art. 176, §1°.

Except for provisions of national interest set out in the constitutional text, Brazilian firms shall be excused from compliance with the provisions of art. 176, §1°, so long as, during the period of four years from the date of promulgation of the Constitution, the product of their mines and processing is destined for industrialization within the national territory in their own establishments or in industrial firms controlled by or controlling them.
Brazilian firms owning hydraulic energy concessions for use in their industrialization processes are excused from compliance with the provisions of art. 176, §1°.
The Brazilian firms referred to in §1° may only have prospecting authorizations or permits to mine or exploit hydraulic energy sites so long as the energy and the products of the mines are utilized in their respective industrial processes.

Article 45

Refineries operating in the Country under the aegis of art. 43 and under the conditions of art. 45 of Law N°. 2.004 of October 3, 1953, are excluded from the monopoly established in art. 177, subparagraph II, of the Constitution.

Sole Paragraph

Risk contracts made with Petróleo Brasileiro S.A. (Petrobrás) for the exploration of petroleum that are in force on the date of the promulgation of the Constitution are exempt from the prohibition of art. 177, §1°.

Article 46

Credits with entities under intervention or extra-judicial liquidation, even when such proceedings are converted into bankruptcy, are subject to monetary correction from the date of maturity until the date of actual payment, without interruption or suspension.

Sole Paragraph

The provisions of this article shall also apply:

to transactions carried out after the proceedings referred to in the heading of this article have been decreed;
to loans, financing, refinancing, financial assistance for liquidity purposes, assignments or subrogation of mortgages or mortgage bonds, fulfillment of guarantees of deposits by the public or purchases of liabilities, including those carried out with resources from funds intended for such purposes;
to credits existing prior to the promulgation of this Constitution;
to credits held by governmental administrative entities prior to promulgation of this Constitution and not liquidated by January 1, 1988.

Article 47

Liquidation of debts, including subsequent renegotiations and settlements thereof, even when adjudicated, arising from any loans granted by banks and by financial institutions, shall be without monetary correction provided the loan was granted:

to micro- and small-businessmen or to their establishments in the period from February 28, 1986, to February 28, 1987;
to mini, small, or medium rural producers in the period from February 28, 1986, to December 31, 1987, so long as it relates to rural credit.

For the purposes of this article, micro-firms are legal entities and proprietorships with annual incomes of up to ten thousand National Treasury Bonds (OTNs), and small firms are legal entities and proprietorships with annual incomes of up to twenty-five thousand National Treasury Bonds (OTNs).
Classification as a mini, small, and medium rural producers shall be made in accordance with the rural credit rules in force at the time of the contract.
The exemption from monetary correction referred to in this article shall only be granted in the following cases:
1. if the initial debt, plus legal interest and judicial fees, is liquidated within ninety days of promulgation of this Constitution;
2. if the application of the funds is not contrary to the propose of the financing, with the burden of proof placed upon the creditor institution;
3. if the creditor institution fails to demonstrate that the borrower has the means to pay his debt, excluding from such means the borrower’s establishment, the house in which he lives, and his instruments for work and production;
4. if the initial financing does exceed the limit of 5,000 Readjustable Treasury Bonds (ORTNs);
5. if the beneficiary does not own more than five rural modules.
The benefits dealt with in this article do not apply to debts already paid nor to debtors who are members of the Constituent Assembly.
For debts maturing after this deadline for liquidation of the debt, banks and financial institutions shall provide, by a separate instrument, for amendment of the original contractual conditions so as to adjust them to this benefit if the borrower is interested in doing so.
Under no circumstances shall the granting of this benefit by private commercial banks bring with it a burden for the Government, not even through refinancing and repassing of funds through the Central Bank.
In the case of repassing to official financing agents or credit cooperatives, the burden shall fall upon the original source of funds.

Article 48

Within one hundred-twenty days of the promulgation of this Constitution, the National Congress shall elaborate a consumer protection code.

Article 49

The law shall regulate the institution of emphyteusis in urban real property, the tenants having the option, in the event of extinction, to redeem the emphyteusis, by acquisition of direct title in accordance with the provisions contained in the respective contracts.

In the absence of a contractual clause, the criteria and bases currently in force in special federal legislation on real property shall be adopted.
The rights of presently registered occupants shall be assured by application of another type of contract.
Emphyteusis shall continue to be applied to tidelands and areas added thereto by accretion, located within the security strip along the coast line.
After redemption of the emphyteusis, the former holder of direct title shall, within ninety days, under penalty of liability, entrust all documents related to such title to the custody of the proper real estate registry.

Article 50

An agricultural law, to be enacted within one year, shall set out, in the terms of this Constitution, the objectives and instruments of agricultural policy, priorities, crop planning, marketing, internal supply, foreign markets and agrarian credit institutions.

Article 51

All donations, sales and concessions of public lands of areas greater than three thousand hectares, made in the period from January 1, 1962, to December 31, 1987, shall be reviewed by the National Congress, within the three years after promulgation of the Constitution.

Review of sales shall be based exclusively on the criterion of legality of the transaction.
Review of concessions and donations shall be based on the criteria of legality and convenience to the public interest.
In the cases provided for in the preceding paragraphs, if illegality is proven, or if it is in the public interest, the lands shall revert to the patrimony of the Union, States, Federal District or Counties.

Article 52

Until the conditions of Art. 192 are determined, the following shall be prohibited:

installation of new agencies of foreign domiciled financial institutions in the Country;
increases in the percentage of participation by individuals and legal entities resident or domiciled abroad in the capital of financial institutions headquartered in the Country.

Sole Paragraph

The prohibition referred to in this article does not apply to authorizations resulting from international accords, reciprocal agreements or agreements of interest to the Brazilian government.

Article 53

Former combatants who actually participated in war operations during the Second World War, in the terms of Law No. 5.315 of September 12, 1967, shall be assured the following rights:

admission to public service with tenure, without having to undergo competitive examinations;
a special pension corresponding to that left by a second lieutenant of the Armed Forces, which may be applied for at any time and may not be accumulated with any other income received from the public coffers, except for social security benefits, reserving the right to choose;
in the event of death, a proportional pension for the widow or companion or dependent, in an amount equal to that of the prior subparagraph;
free medical, hospital and educational assistance, including dependents;
retirement at full pay after twenty-five years of actual service under any legal regime;
priority in the acquisition of one’s own home for those who do not own one, or for their widows or companions.

Sole Paragraph

Granting the special pension referred to in subparagraph II replaces, for all legal effects, any other pension already granted to an ex-combatant.

Article 54

When without resources, rubber-tappers recruited pursuant to Decree-Law No. 5.813 of September 14, 1943, and protected by Decree-Law No. 9.882 of September 16, 1946, shall receive a monthly pension for life in the amount of two minimum wages.

The benefit extends to rubber-tappers who, at the request of the Brazilian Government, contributed to the war effort by working in rubber production in Amazon Region during the Second World War.
The benefits established in this article may be transferred to dependents who are recognizably in need.
The benefit shall be granted according to a law to be proposed by the Executive within one hundred and fifty days after promulgation of the Constitution.

Article 54-A

The rubber-tappers provided for in Art. 54 of the Transitional Constitutional Provisions Act shall receive a lump-sum indemnification in the amount of R$25,000.00 (twenty-five thousand reais).

Article 55

Until the law of budgetary directives is approved, at least thirty percent of the social security budget, excluding unemployment insurance, shall be allocated to the health sector.

Article 56

Until a law regulates art. 195, I, the revenues resulting from at least five of the six-tenths of one percent corresponding to the rate of the contribution referred to in Decree-Law No. 1.940 of May 25, 1982, as amended by Decree-Law No. 2.049 of August 1, 1983, by Decree No. 91.236 of May 8, 1985, and by Law No. 7.611 of July 8, 1987, shall be integrated with social security revenues, except for commitments assumed for ongoing programs and projects exclusively during fiscal year 1988.

Article 57

The debts of the States and Counties for social security contributions up to June 30, 1988, shall be liquidated, with monetary correction, in one hundred and twenty monthly installments, eliminating interest and penalties applicable thereto, as long as the debtors request installment payments and begin such payments within one hundred and eighty days from promulgation of this Constitution.

The amount to be paid in each of the first two years shall not be less than five percent of the total consolidated and updated debt, with the balance being divided into equal monthly installments.
Liquidation may include payments in the form of assignments of assets and providing services, in accordance with Law No. 7.578 of December 23, 1986.
As security for payment of the installments, the States and Counties shall each year in their respective budgets make the appropriations required for payment of their debts.
If any of the conditions established for permitting installment payments are not satisfied, the total debt shall be considered past due, and default interest shall be payable on it; in such event, the portion of the funds corresponding to the Revenue Sharing Funds that has been allocated to the debtor States and Counties shall be blocked and transferred to social security for payment of their debts.

Article 58

Benefits paid on a continuous basis and maintained by social security on the date the Constitution is promulgated shall have their values revised in order to restore their purchasing power, expressed in multiples of the minimum wage they represented on the date when they were granted, obeying this criterion for updating until implantation of the plan of funding and benefits referred to in the following article.

Sole Paragraph

The monthly benefit payments, updated in accordance with this article, shall be due and payable from the seventh month after promulgation of the Constitution.

Article 59

Not more than six months after the promulgation of the Constitution, bills relating to organization of social security and for the plans for funding and benefits shall be submitted to the National Congress, which shall have six months in which to examine them.

Sole Paragraph

Upon approval by the National Congress, the plans shall be implemented progressively in the following eighteen months.

Article 60

Until the 14th (fourteenth) year from the promulgation of this Constitutional Amendment, the States, Federal District and Counties shall apply part of the funds referred to in the heading of art. 212 of the Federal Constitution to maintenance and development of basic education and to adequate remuneration of those working in education, respecting the following provisions:

distribution of resources and responsibilities among the Federal District, States and Counties is assured through creation, within the province of each State and the Federal District, of a Fund for the Maintenance and Development of Basic Education and Valorization of the Teaching Profession — FUNDEB, that will be accounting in nature;
the Funds referred to in the preceding paragraph of this article shall be constituted by 20% (twenty percent) of the funds referred to in subparagraphs I, II and III of art. 155; subparagraph II of the heading of art. 157; subparagraphs II, III and IV of the heading of art. 158; and subparts a and b of subparagraph I and subparagraph II of the heading of art. 159 of the Federal Constitution, and distributed among each State and its Counties in proportion to the number of students in the various stages and modalities of basic education matriculated in their respective systems, in the respective provinces of priority functioning established in §§ 2° and 3° of art. 211 of the Federal Constitution;
observing the guarantees established in subparagraphs I, II, III and IV of the heading of art. 208 of the Federal Constitution and the goal of universality of basic education established in the National Education Plan, the law shall provide for:
1. organization of the Funds, proportional distribution of their resources, differences and weights as to the annual amount per student among the various stages and modalities of basic education and the type of teaching establishments;
2. manner of calculation of the annual minimum amount per student;
3. maximum percentages for appropriation of resources from the Funds for the diverse stages and modalities of basic education, observing arts. 208 and 214 of the Federal Constitution, as well as the goals of the National Education Plan;
4. supervision and control of the Funds;
5. period for fixing, by specific law, the national professional base salary for those in the profession of teaching basic education;
resources received on account of the Funds instituted in the terms of subparagraph I of the heading of this article shall be applied by the States and Counties exclusively in the respective spheres of priority functioning, in conformity with what has been established in §§ 2° and 3° of art. 211 of the Federal Constitution;
the Union shall supplement the resources of the Funds referred to in subparagraph II of the heading of this article whenever the cost per student in the Federal District and in each State does not reach the nationally defined minimum, determined in accordance with the provision of subparagraph VII of the heading of this article, prohibiting utilization of the funds referred to in § 5° of art. 212 of the Federal Constitution;
up to 10% (ten percent) of the Union’s supplemental contribution provided for in subparagraph V of the heading of this article may be distributed by the Funds through programs directed toward improvement in the quality of education, as provided for by the law referred to in subparagraph III of the heading of this article;
the Union’s supplemental contribution referred to in subparagraph V of the heading of this article shall be a minimum of:
1. R$ 2,000,000,000 (two billion reais), in the first year these Funds are in operation;
2. R$ 3,000,000,000 (three billion reais), in the second year these Funds are in operation;
3. R$ 4,500,000,000 (four billion five million reais), in the third year these Funds are in operation;
4. 10% (ten percent) of the total funds referred to in subparagraph II of the heading of this article, starting with the fourth year of the life of these Funds;
linking the funds to maintenance and development of education established in art. 212 of the Federal Constitution shall support, at a maximum, 30% (thirty percent) of the Union’s supplemental contribution, considered for the purposes of this article as the sums provided for in subparagraph VII of heading of this article;
the sums referred to in subparts a, b, and c of subparagraph VII of the heading of this article shall be updated annually, starting with the promulgation of this Constitutional Amendment, in a manner that will preserve permanently the real value of the Union’s supplemental contribution;
the provisions of art. 160 of the Federal Constitution shall apply to the Union’s supplemental contribution;
failure to comply with the provisions of subparagraphs V and VII of the heading of this article shall imply a crime of responsibility by the competent authority;
not less than 60% (sixty percent) of each Fund referred to in subparagraph I of the heading of this article shall be destined for payment of members of the basic education teaching profession actively engaged in the profession.

In financing basic education, the Union, States, Federal District and Counties shall assure improvement in the quality of teaching, so as to guarantee the nationally defined minimum standard.
The cost per student of basic teaching in the Fund of each State and the Federal District shall not be less than practiced in the sphere of the Fund for the Maintenance and Development of Elementary Education and the Valorization of the Teaching Profession — FUNDEF, in the year prior to the entry into force of this Constitutional Amendment.
The annual minimum cost per student for basic education in the sphere of the Funds for the Maintenance and Development of Basic Education and the Valorization of Educational Professionals — FUNDEB, shall not be less than the nationally fixed minimum cost for the prior year and that at the entering into force of this Constitutional Amendment.
For the purposes of distribution of the resources of the Funds referred to in subparagraph I of the heading of this article, one shall take into account the total number of persons enrolled in elementary education and shall consider for purposes of pre-school education and for middle school and the education of adolescents and adults, 1/3 (one-third) of the enrollments in the first year, 2/3 (two-thirds) in the second year and the entire amount starting with the third year.
The percentage of resources to constitute the Funds, in accordance with subparagraph II of the heading of this article, shall be reached gradually in the first 3 (three) years that these Funds are in operation, in the following manner:
1. in the case of the taxes and tranferences set out in subparagraph II of the heading of art. 155; subparagraph IV of the heading of art. 158; subparts a and b of subparagraph I and of subparagraph II of the heading of art. 159 of the Federal Constitution:
  1. 16.66% (sixteen and sixty-six hundredths percent) in the first year;
  2. 18.33% (eighteen and thirty-three hundredths percent) in the second year;
  3. 20% (twenty percent) starting with the third year.
2. in the cases of taxes and transferences set out in subparagraphs I and III of the heading of art. 155; of subparagraph II of the heading of art. 157; and of subparagraph II and III of the heading of art. 158 of the Federal Constitution:
  1. 6.66% (six and sixty-six one-hundredths percent), in the first year;
  2. 13.33% (thirteen and thirty-three hundredths percent), in the second year;
  3. 20% (twenty percent) in the third year.
Repealed.
Repealed.

Article 61

The educational entities referred to in art. 213, as well as the educational and research foundations whose creation has been authorized by law, which satisfy the requirements of subparagraphs I and II of this article and which during the last three years have received public funds, may continue to receive such funds, unless otherwise provided by law.

Article 62

The law shall create the National Rural Apprenticeship Service (SENAR), modeled on the legislation for the National Industrial Apprenticeship Service (SENAI) and the National Commercial Apprenticeship Service (SENAC), without prejudice to the powers of the governmental agencies that act in the area.

Article 63

A Committee composed of nine members, three from the Legislature, three from the Judiciary and three from the Executive, is created to promote commemoration of the centennial of the proclamation of the Republic and of promulgation of the first republican constitution in the Country, provided that such Committee may, at its discretion, be subdivided into as many subcommittees as may be necessary.

Sole Paragraph

In carrying out its duties, the Committee shall promote studies, debates and assessments of the political, social, economic and cultural development of the Country, and may join efforts with state and county governments and with public and private institutions desiring to take part in the events.

Article 64

The National Press and other printing departments of the Union, States, Federal District and Counties, of direct or indirect administration, including foundations instituted and maintained by the Government, shall provide a popular edition of the full text of the Constitution, that shall be made available, free of charge, to schools, public registry offices, syndicates, barracks, churches and other representative community organizations, so that each Brazilian citizen may receive from the Government a copy of the Brazilian Constitution.

Article 65

The Legislature shall regulate art. 220, § 4° within twelve months.

Article 66

The concessions of public telecommunication services presently in force are maintained, as provided by law.

Article 67

The Union shall conclude the demarcation of indigenous lands within five years after promulgation of the Constitution.

Article 68

Final title shall be recognized for the remaining members of the former fugitive slave communities who are occupying their lands, and the State shall grant them the respective deeds.

Article 69

The States shall be allowed to maintain legal advisory offices independent from their Procuracy-Generals or Advocacy-Generals, provided that they have separate agencies for their respective functions on the date of enactment of this Constitution.

Article 70

The present jurisdiction of the state courts is maintained until defined in the State Constitutions, pursuant to art. 125, § 1° of this Constitution.

Article 71

For the purposes of financial restoration of the Federal Treasury and economic stabilization, the Emergency Social Fund shall be instituted in fiscal years 1994 and 1995, as well as in the periods from January 1, 1996 to June 30, 1997 and July 1, 1997 to December 31, 1999. Its resources shall be applied by giving priority to funding actions of the systems of health and education (including complementing the resources dealt with in § 3 of art. 60 of the Transitional Constitutional Provisions Act), social security benefits and continued assistance benefits, including liquidation of the social security deficit, and the budgetary expenses associated with programs of relevant economic and social interest.

The provisions in the final part of subparagraph II of § 9° of art. 165 of the Constitution shall not apply to the Fund created by this article.
The Fund created by this article shall be called the Fund of Fiscal Stabilization, starting with the beginning of the fiscal year 1996.
The Executive shall publish a schedule of budgetary execution, on a bimonthly basis, in which the sources and uses of the Fund created by this article are set forth.

Article 72

The Emergency Social Fund shall be made up of:

proceeds from collection of the Tax on Income and Benefits of Any Nature withheld at the source on any type of payments made by the Union, including its autarchies and foundations;
the portion of the proceeds from collection of the Tax on Income and Benefits of Any Nature and the Tax on Credit Transactions, Foreign Exchange Operations, Insurance, and Transactions Relating to Negotiable Instruments and Securities, stemming from the changes produced by Law No. 8.894 of June 21, 1994, and by Laws Nos. 8.849 and 8.848 both of January 28, 1994, and later modifications;
the portion of the proceeds from collection of the increased social contribution rate on taxpayers’ profits referred to in §1 of art. 22 of Law N° 8.212 of July 24, 1991, which, during fiscal years 1994 and 1995, as well as the period from January 1, 1996 to June 30, 1997, becomes thirty percent, subject to alteration by ordinary law, maintaining the other rules of Law N° 7.689 of December 15, 1988;
twenty percent of the proceeds collected from all taxes and assessments of the Union, already instituted or to be created, except those provided for in subparagraphs I, II, III, observing provisions of §§ 3° and 4°;
the portion of the proceeds from collection of the assessment dealt with in Complementary Law N° 7 of September 7, 1970, owed by legal entities referred to in subparagraph III of this article, which shall be calculated, during fiscal years 1994 and 1995, as well as in the period from January 1, 1996 to June 30, 1997, by application of a rate of seventy-five hundredths of one percent, subject to alteration by ordinary law, on operational gross receipts, as defined in the legislation on the Tax on Income and Benefits of Any Nature;
other receipts provided for by specific law.

The rates and the basis of calculation provided in subparagraphs III and V shall apply starting from the first day of the month, ninety days after promulgation of this Amendment.
The portions that subparagraphs I, II, III and V deal with shall be previously deducted from the basis of calculation of any constitutional or legal link or participation, not applying to them the provisions of arts. 159, 212 and 239 of the Constitution.
The portion that subparagraph IV deals with shall be previously deducted from the basis of calculation of the constitutional link or participation provided for in arts. 153, § 5°, 157, II, and 239 of the Constitution.
The provision of the prior paragraph shall not apply to the resources provided for in arts. 158, II, and 159 of the Constitution.
The portion of the resources stemming from the Tax on Income and Benefits of Any Nature, destined for the Emergency Social Fund, in the terms of subparagraph II of this article, shall not exceed five and six-tenths percent of the total amount collected.

Article 73

The instrument provided for in subparagraph V of art. 59 of the Constitution may not be utilized in regulating the Emergency Social Fund.

Article 74

The Union may institute a provisional assessment on the movement or transfer of securities, credits or rights of a financial nature.

The rate of the assessment dealt with in this article shall not exceed twenty-five hundredths of one percent, with the Executive having the power to reduce it or reestablish it, in whole or in part, under the conditions and limits fixed by law.
The provisions of arts. 153, §5° and 154, I, of the Constitution do not apply to the assessment dealt with in this article.
The proceeds from the collection of the assessment dealt with in this article shall be entirely destined for the National Health Fund for the financing of health activities and services.
Exaction of the assessment dealt with in this article shall be subordinated to the provisions of art. 195, § 6° of the Constitution and may not be imposed for a period longer than two years.

Article 75

Collection of the provisional assessment on the movement or transfer of securities, credits or rights of a financial nature dealt with in art. 74 is extended for thirty-six months. This assessment was instituted by Law No. 9.311 of October 24, 1996, as amended by Law No. 9.539 of December 12, 1997, whose duration is also extended for an identical period.

Observing the provisions of § 6° of art. 195 of the Federal Constitution, the rate of the assessment shall be thirty-eighth hundredths of one percent in the first twelve months and thirty hundredths in the following months. The Executive may reduce the rate totally or partially within the limits here defined.
The results of the increase in tax collections stemming from the change in fiscal years 1999, 2000 and 2001 shall be earmarked for the funding of social security.
The Union is authorized to issue domestic bonds, whose resources shall be earmarked for the funding of health and social security in an amount equivalent to the amount of the collection of the assessment provided for and not realized in 1999.

Article 76

Until December 31, 2023, 30% (thirty percent) of the Union’s collection of social assessments (without prejudice to payment of the expenses of the General Regime of Social Security), assessment for intervention in the economic domain, and charges, already instituted or that are created by the referred to date, are unlinked from the agency, fund or expense.

Repealed.
Collection of the educational salary assessment referred to in art. 212, §5° of the Constitution, shall be excepted from the unlinking referred to in the initial paragraph of this article.
Repealed.

Article 76-A

Until December 31, 2023, the receipts of the States and Federal District from taxes, charges and fines, already instituted or that are created by the referred to date, as well as their surcharges and respective legal increments and other current receipts, are unlinked from the agency, fund or expense.

Sole Paragraph

The following are exceptions from the unlinking dealt with in the initial paragraph:

resources destined for the financing of public health actions and services and the maintenance and development of teaching dealt with respectively in subparagraphs II and III of §2° of art. 198 and art. 212 of the Federal Constitution.
receipts belonging to the Counties stemming from transfers provided for in the Federal Constitution;
receipts from social security contributions and health assistance from employees;
other mandatory or voluntary transfers between entities of the Federation with a destination specified by law;
funds instituted by the Judiciary, the Tribunals of Accounts, the Public Ministry, Public Defenders, and the Procurators-General of the States and the Federal District.

Article 76-B

Until December 31, 2023, the receipts of the Counties from taxes, charges and fines, already instituted or that are created by the referred to date, as well as their surcharges and respective legal increments and other current receipts, are unlinked from the agency, fund or expense.

Sole Paragraph

The following are exceptions from the unlinking dealt with in the initial paragraph:

resources destined for the financing of public health actions and services and the maintenance and development of teaching dealt with respectively in subparagraphs II and III of §2° of art. 198 and art. 212 of the Federal Constitution.
receipts from social security contributions and health assistance from employees;
mandatory or voluntary transfers between entities of the Federation with a destination specified by law;
funds instituted by the County’s Tribunal of Accounts.

Article 77

Until the fiscal year 2004, the minimum resources applied in public health activities and services shall be equivalent to:

in the case of the Union:
1. in the year 2000, the amount employed in public health activities and services in fiscal year 1999, increased by a minimum of five percent;
2. in the years 2001 to 2004, the value determined for the prior year, corrected by the nominal variation in the Gross Internal Product (PIB);
in the cases of the States and the Federal District, twelve percent of the amount of the tax collections referred to in art. 155 and the resources dealt with in arts. 157 and 159, subparagraph I, a, and subparagraph II, deducting the amounts transferred to the respective Counties; and
in the case of the Counties and the Federal District, fifteen percent of the amount of the tax collections referred to in art. 156 and the resources dealt with in arts. 158 and 159, subparagraph I, b, and § 3°.

States, the Federal District and Counties applying lesser percentages than those fixed in subparagraphs II and III must gradually elevate these percentages by fiscal year 2004, reducing the difference by at least by one-fifth annually, so that starting in 2000, their applications shall be at least seven percent.
From the resources of the Union determined in accordance with this article, a minimum of fifteen percent shall be applied to basic health activities and services in the Counties according to population, as provided by law.
The resources of States, the Federal District and Counties destined for public health activities and services and those transferred by the Union for the same purpose shall be applied by means of the Health Fund, which shall be accompanied and supervised by the Health Council, without prejudice to the provisions of art. 74 of the Federal Constitution.
In the absence of the complementary law referred to in art. 198, § 3°, starting in fiscal year 2005, the Union, States, Federal District and Counties shall apply the provisions of this article.

Article 78

Except for the credits defined by law as small amounts, those of a support nature, those dealt with in art. 33 of the Transitional Constitutional Provisions Act and their complementary provisions, and those that have had their respective funds liberated or deposited with the court, the judicial orders of payment pending on the date of the promulgation of this Amendment and those stemming from initial actions adjudicated by December 31st, 1999, shall be liquidated in currency at their real value, plus legal interest, in annual equal and successive installments over a maximum period of ten years. These credits may be assigned.

At the discretion of the creditor, the installment may be broken down into parts.
If not liquidated by the end of the referred to fiscal year, the annual installments referred to in the heading of this article may be used for payment of the debtor entity’s taxes.
The period referred to in the heading of this article shall be reduced by two years in cases of judicial orders of payment arising from expropriation of the creditor’s residential real property, provided that this was duly proven to be the condemnee’s only property at the time of turning over possession.
At the request of the creditor, the President of the competent Tribunal shall require or determine the attachment of financial resources of the entity against which execution has been made, in an amount sufficient to satisfy the installment, whenever the period has past, or if there is an omission in the budget or a failure to respect the right of precedence.

Article 79

The Fund for the Combat and Eradication of Poverty is created within the sphere of the Federal Executive, effective until the year 2010* [extended indefinitely by Amendment No. 67 of Dec. 22, 2010]. The Fund is to be regulated by a complementary law whose purpose is to make it viable for all Brazilians to have access to dignified levels of subsistence. The Fund’s resources shall be applied to supplement nutrition, housing, education, health, reinforcement of family income and other social interest programs designed to improve the quality of life.

Sole Paragraph

The Fund provided for in this article shall have an Accompanying Consultative Council with participation by representatives of civil society, as provided for by law.

Article 80

The Fund for the Combat and Eradication of Poverty shall consist of:

a portion of the product of tax receipts corresponding to a surtax of eight hundredths of one percent, applicable from June 18, 2000 to June 17, 2002, on the social contribution rate set out in art. 75 of the Transitional Constitutional Provisions Act;
the part of the product of tax receipts corresponding to a surtax of five percentage points on the Tax on Industrialized Products (IPI) rate, or any tax that may replace it, incident upon superfluous products and applicable until the extinction of the Fund;
the product of the receipts of the tax set out in art. 153, subparagraph VII of the Constitution;
budgetary appropriations;
donations of whatever nature from individuals or legal entities, national or foreign;
other receipts to be defined in the regulations of this Fund.

The provisions of arts. 159 and 167, subparagraph IV of the Constitution, as well as any other unlinking of budgetary resources, do not apply to the resources that make up the Fund dealt with in this article.
During the period between June 18, 2000 and the entry into force of the complementary law referred to in art. 79, the receipts stemming from the provisions of subparagraph I of this article shall be totally repassed to the Fund, preserving its real value in federal public securities, progressively redeemable after June 18, 2000, as provided for by law.

Article 81

A Fund is created, constituted with the resources received by the Union from privatization of mixed-capital companies or firms controlled, either directly or indirectly, by the State, when the operation involves alienation of respective shareholder control to a person or entity that is not a part of the public administration, or the shareholder participation remaining after alienation. Starting on June 18, 2002, the earnings generated by this Fund shall revert to the Fund for the Combat and Eradication of Poverty.

In case the amount actually provided for in the earnings transferred to the Fund for the Combat and Eradication of Poverty, in accordance with this article, is less than four billion reais, the difference shall be completed in the form of art. 80, subparagraph IV, of the Transitional Constitutional Provisions Act.
Without prejudice to the provision of § 1°, the Executive shall earmark for the Fund referred to in this article other receipts stemming from alienation of property of the Union.
Organization of the Fund referred to in the heading, transference of resources to the Fund for the Combat and Eradication of Poverty, and the other provisions referring to § 1° of this article shall be regulated by law. The provision of art. 165, § 9°, subparagraph II of the Constitution shall not be applied.

Article 82

The States, the Federal District, and the Counties shall institute Funds for the Combat of Poverty, with the resources dealt with in this article and others that shall come to be earmarked for them. These Funds shall be managed by entities in which civil society participates.

For financing of State and District Funds, a surcharge of up to two percentage points may be created on the rate for the Tax on the Circulation of Merchandise and Services (ICMS) on superfluous products and services and in the conditions defined in the complementary law dealt with in art. 155, § 2°, XII, of the Constitution. The provision of art. 158, IV of the Constitution does not apply to this percentage.
For financing of County Funds, a surcharge may be created of up to one-half of one percent on the rate of the Tax on Services, or the tax that may replace it, on superfluous services.

Article 83

Federal law shall define the superfluous products and services referred to in arts. 80, II, and 82, § 2°.

Article 84

The provisional assessment on transactions or transference of securities, credits or rights of a financial nature, provided for in arts. 74, 75 and 80, I, of this Transitional Constitutional Provisions Act, shall be collected until December 31, 2004.

The efficacy of Law No. 9.311 of October 24, 1996, as modified, shall be extended until the date referred to in the heading of this article.
The proceeds from the collection of the social assessment dealt with in this article shall be destined, in corresponding part, at the rate of:
1. twenty one-hundredths of one percent to the National Health Fund for the financing of health activities and services;
2. ten one-hundredths of one percent to funding social security;
3. eight one-hundredths of one percent to the Fund for the Combat and Eradication of Poverty dealt with in arts. 80 and 81 of this Transitional Constitutional Provisions Act.
The rate of the assessment dealt with in this article shall be:
1. thirty-eighth one-hundredths of one percent in the fiscal years 2002 and 2003;
2. revoked.

Article 85

As of the thirtieth day from the publication date of this Constitutional Amendment, the assessment referred to in art. 84 of this Transitional Constitutional Provisions Act shall not be imposed on these transactions:

On current deposit accounts, specially opened and exclusively utilized for transactions of:
1. clearing houses and those rendering services of clearing and liquidation dealt with in the sole paragraph of art. 2 of Law No. 10.214 of March 27, 2001;
2. securitization companies dealt with by Law No. 9.514 of November 20, 1997;
3. stock corporations with the exclusive purpose of acquisition of credits from financial market transactions;
deposits to checking accounts relating to:
1. transactions for the purchase or sale of shares, performed in places or systems of negotiation on stock markets or on the organized over-the-counter market;
2. contracts tied to shares or share indexes, in their diverse modalities, negotiated on stock markets, for merchandise or for futures;
foreign investors’ accounts relating to entry into the Country and remittances abroad of financial resources employed exclusively in transactions and contracts referred to in subparagraph II of this article.

The Executive shall regulate the provisions of this article in a period of thirty days from the publication date of this Constitutional Amendment.
The provisions of subparagraph I of this article shall apply only to transactions set out in an act of the Executive from among those that constitute the social object of the referred to entities.
The provisions in subparagraph II of this article shall apply only to operations and contracts carried out by means of financial institutions, securities brokers or distributors, and commodities’ brokers.

Article 86

Debts of the federal, state, district or county treasuries stemming from final non-appealable judgments shall be paid in accordance with the provisions of art. 100 of the Federal Constitution. The rule of installment payments established in the heading of art. 78 of this Transitional Constitutional Provisions Act shall not apply to them if they cumulatively meet the following conditions:

Judicial orders of payment have been issued for them;
They meet the definition of small value in the law dealing with § 3° of art. 100 of the Federal Constitution or by art. 87 of this Transitional Constitutional Provisions Act;
they are awaiting payment, totally or partially, on the publication date of this Constitutional Amendment.

The debts referred to in the heading of this article, or their respective balances, shall be paid in the chronological order of presentation of their respective judicial orders of payment with precedence given to those of the greatest value.
The debts referred to in the heading of this article that have still not been partially paid in the terms of art. 78 of this Transitional Constitutional Provisions Act may be paid in two annual installments if the law so provides.
Observing the chronological order of presentation, the debts of a support nature provided for in this article shall have precedence for payment over all others.

Article 87

Until the official publication of the respective definitive laws by entities of the Federation, for the purposes of § 3° of art. 100 of the Federal Constitution and art. 78 of this Transitional Constitutional Provisions Act, observing the provisions of § 4° of art. 100 of the Federal Constitution, debts or obligations consigned in a judicial order of payment shall be considered of small value when they have a value equal or inferior to:

forty minimum wages, if against the Treasury of the States and the Federal District;
thirty minimum wages, if against the Treasury of the Counties.

Sole Paragraph

If the value of the execution exceeds what has been established in this article, payment shall always be made by means of a judicial order of payment, but the party seeking execution has the option of waiving credit for the value in excess thereof in order to opt for payment of the balance without a judicial order of payment in the manner provided for in § 3° of art. 100.

Article 88

So long as a complementary law does not regulate the provisions of subparagraphs I and III of § 3° of art. 156 of the Federal Constitution, the tax referred to in subparagraph III of the heading of the same article:

shall have a minimum rate of two percent except for services referred to items 32, 33 and 34 of the List of Services attached to Decree Law No. 406 of December 31, 1968;
shall not be subject to concession of exemptions, incentives or benefits that result, directly or indirectly, in reduction of the minimum rate established in subparagraph I.

Article 89

Career members of the military police and municipal employees of the ex-Federal Territory of Rondônia, who duly prove that in the regular exercise of their functions they performed services in that ex-Territory on the date it was transformed into a State, as well as the employees and Military Police covered by the provisions of art. 36 of Complementary Law No. 41 of December 22, 1981, and those regularly admitted into the personnel of the State of Rondônia prior to the date of the taking of office by the first elected Governor, on March 15, 1987, shall constitute, via option, terminated personnel of the federal administration, assuring the rights and advantages inherent therein, prohibiting payment in any respect for remuneratory differences.

The members of the Military Police shall continue to perform services to the State of Rondônia, in the condition of assignees, submitted to the Military Police corporations, observing the powers of their functions compatible with their degree in the hierarchy.
The employees referred to in the heading shall continue performing services to the State of Rondônia in the condition of assignees, until their approval by an organ or entity of the direct federal administration, autarchy or foundation.

Article 90

The period provided for in the heading of art. 84 of this Transitional Constitutional Provisions Act shall be extended until December 31, 2007.

The period in which Law 9.311 of October 24, 1996, as modified, is in force shall be extended until the date referred to in this article’s heading.
Until the date referred to in this article’s heading, the rate of the contribution dealt with in art. 84 of this Transitional Constitutional Provisions Act shall be thirty-eight one-hundredths of one percent.

Article 91

The Union shall turn over to the States and the Federal District the amount defined in a complementary law, in accordance with the criteria, periods and conditions determined therein, being able to consider primary and semi-manufactured product exports, the relation between exports and imports, the credits stemming from purchases destined for fixed assets and the effect of maintenance and approval of a credit for the tax referred to in art. 155, § 2°, X, a.

From the amount of resources allocated to each State, seventy-five percent belongs to the State itself, and twenty-five percent to its Counties, distributed in accordance with the criteria referred to in art. 158, sole paragraph, of the Constitution.
Delivery of the resources provided for in this article shall continue, in accordance with the definitions of a complementary law, until at least eighty percent of the proceeds of the tax referred to in art. 155, II, is destined for the State where the consumption of the merchandise, goods or services occurs.
Until the complementary law dealt with in the heading is enacted, in substitution for the resource allocation system provided therein, the resource allocation system provided for in art. 31 in the annex of the Complementary Law No. 87 of September 13, 1996, with the wording given to it by Complementary Law No. 115 of December 26, 2002, shall remain in force.
The States and the Federal District shall present to the Union, in accordance with instructions issued by the Ministry of the Treasury, information relating to the tax dealt with in art. 155, II, declared by taxpayers that carry out transactions or perform services destined for abroad.

Article 92

The period fixed in art. 40 of this Transitional Constitutional Provisions Act shall be increased by ten years.

Article 92-A

The period fixed by art. 92 of the Transitional Constitutional Provisions Act is increased by 50 (fifty) years.

Article 93

The provisions of art. 159, III, and § 4° shall go into force only after enactment of the law dealing with the referred to subparagraph III.

Article 94

The special regimes for taxation of micro-firms and small firms belonging to the Union, States, Federal District and Counties shall cease upon the entry into force of the regime provided for in art. 146, III, d, of the Constitution.

Article 95

Those born abroad between June 7, 1994, and the date of promulgation of this Constitutional Amendment, who are children of a Brazilian father or mother, may be registered at the appropriate Brazilian embassy or consulate or, if they come to reside in the Federative Republic of Brazil, at a registry office.

Article 96

The acts of creation, merger, incorporation and dismantling of Counties whose laws have been published by December 31, 2006, are validated, taking into account the requirements established in the respective State legislation at the time of their creation.

Article 97

Until the complementary law dealt with in § 15° of art. 100 of the Federal Constitution is enacted, the States, Federal District and Counties that, on the date of the publication of this Constitutional Amendment, have failed to pay past due precatórios with respect to their direct and indirect administration, including those issued during the period of the special regime instituted by this article, shall make these payments in accordance with the norms that are established below. The provisions in art. 100 of this Federal Constitution are inapplicable except for §§ 2°, 3°, 9°, 10°, 11°, 12°, 13° and 14°, without prejudice to agreements from conciliatory transactions already formalized on the date of the promulgation of this Constitutional Amendment.

By an Executive Act, the States, Federal District and Counties subject to the special regime with which this article deals may opt:
1. for deposit in a special account the amount referred to in § 2° of this article; or
2. for adoption of a special regime for a period of up to (15) fifteen years, in which case the percentage to be deposited in this special account referred to in § 2° of this article shall correspond annually to the total amount of the precatórios owed, increased by the official index for basic remuneration in the savings accounts and simple interest at the same percentage rate as interest paid on savings account for the purposes of compensation for delay, excluding the incidence of compensatory interest, diminished by the amortizations and divided by the number of years remaining in the special regime of payment.
In order to pay off the precatórios, whether past due or coming due, by the special regime, the States, Federal District and Counties that owe them shall deposit monthly, in a special account created for such purpose, 1/12 (one-twelfth) of the amount calculated in percentage terms of their respective current liquid receipts, determined in the second month prior to the month of payment. This percentage, calculated at the moment of option for the regime and maintained fixed until the final period to which § 14° of this article refers, shall be:
1. for the States and for the Federal District:
  1. a minimum 1.5% (one and one-half percent), for States in the regions of the North, Northeast and the Center-West, as well as the Federal District, or for those States whose stock of pending precatórios for their direct and indirect administrations amounts to up to 35% (thirty-five) percent of current net receipts;
  2. a minimum of 2% (two percent) for States in the regions of the South and Southeast whose stock of pending precatórios for their direct and indirect administrations amounts to more than 35% (thirty-five percent) of their total current net receipts.
2. for the Counties:
  1. a minimum 1% (one percent) for Counties in the regions of the North, Northeast and Center-West or whose stock of pending precatórios of their direct and indirect administrations amounts to more than 35% (thirty-five percent) of current net receipts;
  2. a minimum 1.5% (one and one-half percent) for the Counties of the regions of the South and Southeast whose stock of pending precatórios for their direct and indirect administration amounts to more than 35% (thirty-five percent) of their current net receipts.
For the purposes of this article, current net receipts shall be understood as the sum of receipts from taxes, patrimony, industry, fish farming, contributions and services, current transfers and other current receipts, including those stemming from § 1° of art. 20 of the Federal Constitution, verified in the period including the reference month and the 11 (eleven) prior months, excluding duplications, and deducting:
1. for States, payments delivered to the Counties by constitutional determination;
2. for States, Federal District and Counties, the contribution for their employees to funding their system of social security and social assistance, and receipts stemming from financial compensation referred to in § 9° of art. 201 of the Federal Constitution.
The special accounts dealt with in §§ 1° and 2° shall be administered by the local Tribunal of Justice for payment of precatórios issued by the tribunals.
The resources deposited in the special accounts dealt with in §§ 1° and 2° of this article may not be returned to the debtor States, Federal District and Counties.
At least 50% (fifty percent) of the resources dealt with in §§ 1° and 2° of this article shall be utilized for the payment precatórios in the chronological order of presentation, respecting the preferences defined in § 1°, for requisitions from the same year and in § 2° of art. 100, for requisitions for all years.
In cases in which one cannot establish the chronological precedence between two precatórios, the precatório of lesser value shall be paid first.
Application of the remaining resources shall depend upon the option exercised by Executive Act by the debtor States, Federal District and Counties, obeying the following form, which may be applied in isolation or simultaneously:
1. destined for payment of precatórios by auction;
2. destined for the payment on sight of precatórios that were not paid in the form of § 6° and subparagraph I, in the sole order of the increasing value of the precatório;
3. destined for payment in direct agreement with the creditors in the form established by the debtor entity’s own law, which may provide for the creation and form of functioning of a chamber of conciliation.
The auctions referred to in subparagraph I of § 8° of this article:
1. shall be realized by means of an electronic system by an entity authorized by the Securities and Exchange Commission or by the Central Bank of Brazil;
2. shall permit proof of precatórios, or part of each precatório indicated by its owner, with respect to which there is not pending in the Judiciary an appeal or challenge of any nature, permitted by initiative of the Executive for compensation of liquid and certain debts, whether inscribed or not in the active debt and constituted against the original debtor by the debtor’s Public Treasury until the date of the expedition of the precatório, except for those whose execution is suspended in the terms of legislation, or which has been discounted in the terms of § 9° of art. 100 of the Federal Constitution;
3. shall occur by means of a public offer to all creditors qualified by the respective debtor federative entity;
4. considered automatically qualified by the creditor who satisfies or is included in subparagraph II;
5. shall be realized as many times as necessary in function of the amount available;
6. competition for the part of the total value shall occur at the criterion of the creditor, as a discount on its value;
7. the type of discount may be associated with the highest volume offered cumulatively or not with the highest percentage discount; a maximum value may be fixed by the creditor, or by other criteria to be defined in the invitation to bid;
8. the mechanism for the formation of price shall be set out in the invitation to bid published for each auction;
9. partial payment a precatório shall be confirmed by the respective Tribunal that issued it.
In the case of the failure to liberate the resources dealt with in subparagraph II of § 1°, and §§ 2° and 6° of this article in a timely fashion;
1. an amount in the accounts of the debtor States, Federal District and Counties shall be attached by order of the President of the Tribunal referred to in § 4° up to the limit of the value that was not liberated;
2. alternatively, there may be constituted, by order of the President of the requested Tribunal, in favor of the creditors of the precatórios and against the owing States, Federal District and Counties, a liquid and certain right, that may be applied automatically and independent of regulation, to compensate automatically liquid debits levied by the latter against the former; if there is a balance in favor of the creditor, the value shall be automatically utilized to satisfy payment of taxes of the owing State, Federal District and Counties, until they are compensated;
3. the head of the Executive shall respond in the form of the legislation for fiscal liability and improper administration;
4. so long as the omission continues, the debtor entity;
  1. may not contract a foreign or domestic loan;
  2. shall be impeded from receiving voluntary tranferences;
5. the Union shall retain the amounts it is to transfer with respect to the Fund of Participation of the States and the Federal District and the Fund of Participation of the Counties, and shall deposit those amounts in special accounts referred to in § 1°; utilization shall obey what has been provided for in § 5°, both sections refer to this article.
In the case of precatórios relating to several creditors suing jointly, apportioning of the amount is permitted by the Tribunal that issued the precatório and shall award the creditor the portion of the total value to which he has a right, not applying in the case the rule of § 3° of art. 100 of the Federal Constitution.
If the law to which § 4° of art.100 refers is not published within 180 (one hundred and eighty) days, counting from the date of publication of this Constitutional Amendment, for the referred to purposes, with respect to the debtor States, Federal District and Counties, the omitted regulatory value shall be considered as:
1. 40 (forty) minimum wages for the States and for the Federal District;
2. 30 (thirty) minimum wages for the Counties.
When debtor States, Federal District and Counties are paying off precatórios under the special regime, they are immune from attachment except in the case of failure to liberate in a timely fashion the resources referred to in subparagraph II of §§ 1° and 2° of this article.
The special regime for paying precatórios provided for in subparagraph I of § 1° shall be in force so long as the value of the precatórios owed is superior to the value of the resources linked under the terms of § 2°, both in this article, or for a fixed period of up to 15 (fifteen) years, in the case of the option provided for in subparagraph II of § 1°.
The precatórios that are being paid in installments in the form of art. 33 or of art. 78 of this Transitional Constitutional Provisions Act and are still pending for payment shall enter the special regime with an updated value of the unpaid installments relative to each precatório, as well as the balance of the judicial and extra-judicial accords.
Starting with the promulgation of this Constitutional Amendment, updating the requisitioned amounts, until the date of effective payment, regardless of their nature, shall be made by the official index for basic remuneration in savings accounts, and for the purposes of compensation for delay, shall bear simple interest at the same percentage as interest paid by savings accounts. Compensatory interest shall be excluded.
The amount that exceeds the limit provided for in § 2° of art. 100 of the Federal Constitution shall be paid, during the period the special regime is in force, in the manner provided for in §§ 6° and 7° or in subparagraphs I, II and III of § 8° of this article. The amounts spent to comply with the provisions of § 2° of art. 100 of the Federal Constitution shall be computed for the effects of § 6° of this article.
While the special regime to which this article refers is in force, original holders of precatórios who are older than 60 (sixty) years on the date of the promulgation of this Amendment shall also have the preference referred to in § 6°.

Article 98

The number of public defenders in the jurisdictional unit shall be proportional to the effective demand for the services of the Public Defender’s Office and the respective population.

Within a period of 8 (eight) years, the Union, the States, and the Federal District shall have public defenders in all jurisdictional units, observing the provisions of the initial paragraph of this article.
During the course of the period provided for in §1° of this article, the assignment of public defenders shall prioritize the needs of regions with the highest indices of social exclusion and population density.

Article 99

For the purposes of the provision in subparagraph VII of § 20 of art. 155, in the case of transactions and performances that send goods and services to a non-taxpayer final consumer located in another State, the tax corresponding to the difference between the internal rate and the interstate rate shall be split between the States of origin and destination, in the following proportion:

for the year 2015: 20% (twenty percent) for the destination State and 80% (eighty percent) for the originating State;
for the year 2016: 40% (twenty percent) for the destination State and 60% (eighty percent) for the originating State;
for the year 2017: 60% (twenty percent) for the destination State and 40% (forty percent) for the originating State;
for the year 2018: 80% (eighty percent) for the destination State and 20% (twenty percent) for the originating State;
starting in the year 2019: 100% (one hundred percent) for the destination State.

Article 100

Until the entry into force of the complementary law dealt with in subparagraph II of § l° of art. 40 of the Federal Constitution, the Ministers of the Supreme Federal Tribunal, of the Superior Tribunals and the Tribunal of Accounts of the Union shall compulsorily retire at age 75 (seventy-five) years of age, in the conditions of art. 52 of the Federal Constitution.

Article 101

The States, the Federal District, and the Counties that were in default on the payment of their judicial orders of payment on March 25, 2015, shall pay off these overdue debts by December 31, 2020, as well as those debts that become due during this period, depositing monthly in a special account in the local Tribunal of Justice, under the sole and exclusive administration of this Tribunal, 1/12 (one-twelfth) of the calculated percentage value of their respective current net receipts, determined in the second month prior to the month of payment, in a percentage sufficient for the satisfaction of their debts and, even though variable, never less than in each financial year the average of the compromised percentage of the current net receipts in the period from 2012 to 2014, in conformity with a plan for payment to be presented annually to the local Tribunal of Justice.

For the purposes of this article, current net receipts means the sum of receipts from taxes, patrimony, industry, agriculture, and cattle raising; from contributions and services; from current transfers and other current receipts, including those stemming from §1° of art. 20 of the Federal Constitution, verified in the included period by the second month immediately prior to the referred month and the 11 (eleven) preceding months, excluding duplicates, and deducting:
1. from the States, the amounts delivered to the Counties by constitutional determination;
2. from the States, the Federal District and the Counties, the employees’ contribution for the cost of their system of social security and social assistance and the receipts stemming from the financial compensation referred to in §9° of art. 201 of the Federal Constitution.
The debts from the judicial orders of payment may be paid through utilization of their own budgetary resources and the following instruments:
1. up to 75% (seventy-five percent) of the amount of the judicial and administrative cash deposits with reference to judicial or administrative proceedings, be they tax or non-tax, in which the State, Federal District, or the Counties, or their autarchies, foundations, or dependent state enterprises, are parties;
2. up to 20% (twenty percent) of other judicial deposits in the locality, under the jurisdiction of the respective Tribunal of Justice, with the exception of those destined for the satisfaction of credits of a support nature, through institution of a guarantee fund consisting of the remainder of the judicial deposits, destined for:
  1. in the case of the Federal District, 100% (one hundred percent) of these resources of the Federal District itself;
  2. in the case of the States, 50% (fifty percent) of the resources of the State itself and 50% (fifty percent) of its Counties;
3. contracting of loans, exempted from the limits on indebtedness dealt with in subparagraphs Vi and VII of art. 52 of the Federal Constitution and any other limits on indebtedness provided for, with the prohibition against linking of revenues provided for in subparagraph IV of art. 167 of the Federal Constitution being inapplicable.

Article 102

So long as the special regime provided for in this Constitutional Amendment is in force, at least 50% (fifty percent) of the resources which, in the terms of art. 101 of this Transitional Constitutional Provisions Act, are destined for satisfaction of judicial orders of payment in default shall be utilized for their payment in accordance with the chronological order of presentation, respecting the preferences of support creditors and those with respect to age, state of health, and handicaps in the terms of §2° of art. 100 of the Federal Constitution, over all the other credits for all years.

Sole Paragraph

Application of the rest of the resources, at the option of the States, Federal District and Counties, by act of their respective Executives, observing the order of preferences of creditors, may be destined for payment through direct settlements, via the Auxiliary Courts for Settlement of Judicial Orders of Payment, with a maximum reduction of 40% (forty percent) of the value of the updated credit, so long as no appeal or judicial defense is pending with respect to the credit and that the requirements set forth in the regulations issued by the federative entity are observed.

Article 103

So long as the States, Federal District and Counties are effectuating payment of the monthly amounts owed as provided in the heading of art. 101 of this Transitional Constitutional Provisions Act, neither they, nor their respective dependent autarchies, foundations, or state enterprises may suffer seizure of assets, except for failure to release resources on time.

Article 104

If the resources referred to in art. 101 of this Transitional Constitutional Provisions Act for the satisfaction of judicial orders of payment are not released on time, either in whole or in part:

the President of the local Tribunal of Justice shall determine the seizure of the accounts of the noncompliant federative entity, up to the limit of the unreleased amounts;
the head of the Executive of the non-compliant federative entity shall be charged in the form of the legislation for fiscal liability and administrative impropriety;
the Union shall retain the resources referring to the repasses to the Fund of Participation of the States and the Federal District and the Fund of Participation of the Counties and shall deposit them in a special account referred to in art. 101 of this Transitional Constitutional Provisions Act, for utilization as provided therein;
the States shall retain the repasses provided for in the sole paragraph of art. 158 of the Federal Constitution and deposit them in a special account referred to in art. 101 of this Transitional Constitutional Provisions Act, for utilization as provided therein;

Sole Paragraph

So long as the omission persists, the federative entity may not contract foreign or domestic loans, except for the purposes provided for in §2° of art. 101 of this Transitional Constitutional Provisions Act, and shall be prohibited from receiving voluntary transfers.

Article 105

So long as the regime for payment of judicial orders of payment provided for in at. 101 of this Transitional Constitutional Provisions Act remains in force, creditors of judicial orders of payment, whether their own or of third parties, may use them as a setoff for tax debts or other kinds of debts that by March 25, 2015, have been inscribed in the active debt of the States, the Federal District or the Counties, observing the requirements defined in the federative entity’s own law.

Sole Paragraph

Any type of linking, such as transferences to other entities and those destined to education, health or purposes, shall not apply to the setoffs referred to in the heading of this article.

Article 106

The New Fiscal Regime is instituted in the ambit of Fiscal Budgets and the Union’s Social Security and shall be in force for twenty fiscal years, in the terms of arts. 107 to 111 of this Transitional Constitutional Provisions Act.

Article 107

In each fiscal year individualized limits are established for primary expenses:

of the Executive Power;
of the Supreme Federal Tribunal, the Superior Tribunal of Justice, the National Council of Justice, Labor Justice, Federal Justice, Military Justice of the Union, Electoral Justice and the Justice of the Federal District and Territories, in the ambit of the Judicial Power;
of the Federal Senate, the Chamber of Deputies and the Tribunal of Accounts of the Union, in the ambit of the Legislative Power;
of the Public Ministry of the Union and the National Council of the Public Ministry; and
in the Public Defender of the Union.

Each of the limits to which the heading of this article refers shall be equivalent to:
1. for fiscal year 2017, the primary expenses paid in fiscal year 2016, including expenses incurred but not yet paid, payments, and other operations that affect the primary result, corrected by 7.2% (seven and two tenths percent); and
2. for later fiscal years, to the value of the limit referring to the immediately preceding fiscal year, corrected by the variation in the National Ample Consumer Price Index-IPCA, published by the Brazilian Institute of Geography and Statistics, or another index that may be substituted for it, for the period of twelve months, ending in June of the prior fiscal year to which the budgetary law refers.
The limits established in subparagraph IV of the heading of art. 51, in subparagraph XIII of the heading of art. 52, in §3° of art. 127 and in §3° of art. 134 of the Federal Constitution may not be higher than those established by the terms of this article.
The orientation message of the draft of the budgetary law shall display the maximum values of programming compatible with the individualized limits calculated in the manner of §1° of this article, observing §§7° and 9° of this article.
The primary expenses authorized in the annual budgetary law subject to the limits dealt with in this article may not exceed the maximum values shown in the terms of §3° of this article.
It is prohibited to open supplemental or special credits that increase the authorized total amount of primary expenses subject to the limits dealt with in this article.
One does not include in the basis of calculation and the limits established in this article:
1. constitutional transferences established in §1° of art. 20, in subparagraph III of the sole paragraph of art. 146, in §5° of art. 153, in art. 157, in subparagraphs I and II of art. 158, in art. 159 and in §6° of art. 212, the expenses referred to in subparagraph XIV of the heading of art. 21, all in the Federal Constitution, and the complements dealt with in subparagraphs V and VII of the heading of art. 60 of this Transitional Constitutional Provisions Act;
2. extraordinary credits referred to in §3° of art. 167 of the Federal Constitution;
3. non-recurring expenses of Electoral Justice with holding elections; and
4. expenses with the increase in capital of nondependent state firms.
In the first three fiscal years in which the New Fiscal Regime is in force, the Executive may compensate with an equivalent reduction in its primary expenses, consistent with the values established in the draft of the budgetary law sent by the Executive in the respective fiscal year, the excess of primary expenses in relation to the limits dealt with in subparagraphs II to V of the heading of this article.
The compensation dealt with in §7° of this article shall not exceed .25% (twenty-five hundreds of one percent) of the limits of the Executive.
Respecting the sum of each one of the subparagraphs II to IV of the heading of this article, the law of budgetary directives shall provide for the compensation between the individualized limits of the organs set forth in each subparagraph.
For the purposes of verification of compliance with the limits dealt with in this article, primary expenses paid, expenses incurred but not yet paid, payments, and other operations that affect the primary result shall be considered.
Payment of expenses incurred by December 31, 2015, but not yet paid may be excluded from verification of compliance with the limits dealt with in this article, up to the excess of the primary result of the Fiscal Budget and the Social Security Budget for the fiscal year in relation to the goal fixed in the law of budgetary directives.

Article 108

Starting in the tenth fiscal year of the New Fiscal Regime, the President of the Republic may propose a draft of a complementary law for alteration of the method of correction of the limits referred to in subparagraph II of §1° of art. 107 of this Transitional Constitutional Provisions Act.

Sole Paragraph

Only one alteration of the method of correction of the limits shall be permitted in a presidential mandate.

Article 109

In the case of noncompliance with an individualized limit, the following prohibitions shall be applied to the Executive or the organs designated in subparagraphs II to V of the heading of art. 107 of this Transitional Constitutional Provisions Act that failed to comply, until the end of the fiscal year in which expenses return to their respective limits, without prejudice to other measures:

concession, by whatever title, of an advantage, increase, readjustment or adjustment of remuneration of members of the Branch or organ, of civil servants or public employees and military, except those derived from a final and non-appealable judicial judgment or a legal determination stemming from acts prior to the entry into force of this Constitutional Amendment;
creation of a position, job or assignment that implies an expense increase;
alteration of a career structure that implies an expense increase;
admission or contracting of personnel, of whatever title, except for replacement of positions of command or management that do not bring with them an increase in expense or those stemming from vacancies in permanent or lifetime positions;
holding of public competitions, except for replacement of vacancies provided for in subparagraph IV;
creation or increase in aid, advantages, bonuses, allowances, entertainment allowances, or benefits of whatever nature in favor of members of the Branch, the Public Ministry or the Public Defender, civil servants, public employees and military;
creation of obligatory expenses;
adoption of a measure that implies a readjustment of obligatory expenses above the variation of inflation, observing the preservation of purchasing power referred to subparagraph IV of the heading to art. 7 of the Federal Constitution.

Whenever any of the individualized limits on the organs designated in subparagraphs II, III, and IV of the heading of art. 107 of the Transitional Constitutional Provisions Act is not complied with, the prohibitions provided for in subparagraphs I, III and VI of the heading apply to the entire group of organs referred to in each subparagraph.
In addition to what is provided in the heading, in case of noncompliance with the limits set out in subparagraph I of the heading to art. 107 of this Transitional Constitutional Provisions Act, the following are prohibited:
1. creation or expansion of programs and lines of financing, as well as the forgiveness, renegotiation, or refinancing of debts that involve increasing of expenses with subsidies and grants; and
2. concession or increase in tax incentives or benefits.
In case of noncompliance with any of the individualized limits set out in the heading of art. 107 of this Transitional Constitutional Provisions Act, concession of the general revision provided for in subparagraph X of the heading to art. 37 of the Federal Constitution is prohibited.
The prohibitions provided for in this article also apply to legislative proposals.

Article 110

During the time the New Fiscal Regime is in force, the minimum applications in public health activities and services and in the maintenance and development of education shall be equal to:

in fiscal year 2017, the minimum applications calculated in accordance with subparagraph I of §2° of art. 198 and the heading of art. 212 of the Federal Constitution; and
in later fiscal years, the values calculated for minimum applications in the immediately prior fiscal year, corrected in the manner established by subparagraph II of §1° of art. 107 of this Transitional Constitutional Provisions Act.

Article 111

From fiscal year 2018 until the last fiscal year that the New Fiscal Regime is in force, the approval and execution provided for in §§9° and 11 of art. 166 of the Federal Constitution shall correspond to the amount for mandatory execution for fiscal year 2017, corrected in the manner established by subparagraph II of §1° of art. 107 of this Transitional Constitutional Provisions Act.

Article 112

The provisions introduced by the New Fiscal Regime:

do not constitute an obligation for future payment by the Union or rights of others on the treasury; and
do not revoke, dispense with or suspend compliance with constitutional and legal provisions that deal with fiscal goals or maximum limits on expenses.

Article 113

A legislative proposal that creates or alters mandatory expenses or renounces receipts shall be accompanied by an estimate of its budgetary and financial effects.

Article 114

Transmission of the legislative proposals designated in the heading of art. 59 of the Federal Constitution, with the exception of that referred to in subparagraph V, whenever they occasion an increase in expenses or renunciation of receipts, shall be suspended for up to twenty days, at the request of one fifth of the members of the Chamber, in accordance with its internal regulations, for analysis of its compatibility with the New Fiscal Regime.