{ Adopted on: 5 Oct 1988 }
{ ICL Document Status: 6 Jun 2013 }

{ Editor's Note:
The ICL is based on a translated version of the Brazilian Constitution published by the Superior Electoral Court, incorporating the Constitutional Amendments No 1/92 through 73/13. Article Titles were added by Antonio Basto in 1996. Formulations with "shall" have been changed to ICL translation style. }

 
Article 1  [Enactment Oath]
The President of the Republic, the President of the Federal Supreme Court and the members of Congress have to take an oath to maintain, defend, and comply with the Constitution, upon and on the date of enactment thereof.
 
Article 2  [Plebiscite, Form of Government]
(0) On 7 Sep 1993, the voters define, through a plebiscite, the governmental form (republic or constitutional monarchy) and system (parliamentary or presidential) that prevail in Brazil.
(1) The free disclosure of these forms and systems through public utility mass communication vehicles is free of charge.
(2) The superior Electoral Court, upon enactment of the Constitution, issues regulatory rules for this article.
 
Article 3  [Revision]
This Constitution is revised after five years of its enactment by the vote of an absolute majority of members of Congress in unicameral session.
 
Article 4  [Incumbent Offices term]
(0) The term of office of the incumbent President of the Republic ends on 15 March 1990.
(1) The first election for President of the Republic after enactment of the Constitution is to be held on 15 Nov 1989, and the provisions of Article 16 of the Constitution may not apply thereto.
(2) Irreducibility of the present representation of the States and Federal District in the House of Representatives is ensured.
(3) The term of office of the Governors and Vice Governors elected on 15 Nov 1986 ends on 15 March 1991.
(4) The term of office of the present Mayors, Vice Mayors, and City Councilmen ends on 1 Jan 1989, when those elected take office.
 
Article 5  [Special Provisions for First Elections]
(0) The provisions of Article 16 and the rules of Article 77 of the Constitution do not apply to the elections scheduled for 15 Nov 1988.
(1) For the elections to be held on 15 Nov 1988, electoral domicile in the district at least four months prior to the election is required, and the candidates who fulfill such requirement and satisfy the other legal requisites may register with the Electoral Courts after the Constitution is enacted.
(2) In the absence of a specific legal provision, it is incumbent upon the Superior Electoral Court to issue the rules required to hold the 1988 elections, with due regard for current law.
(3) Present Federal Congressmen and State Representatives elected for the office of Vice Mayor, if called to exercise the office of Mayor, do not lose their parliamentary office.
(4) The number of Councilmen per municipality is determined by the respective Regional Electoral Court for the representation to be elected in 1988, with due regard for the limits set forth in Article 29 IV of the Constitution.
(5) For the elections to be held on 15 Nov 1988, except for those who already hold an elective office, the spouse and relatives by blood or marriage up to the second degree or relatives by adoption of the President of the Republic, of a State Governor, of the Governor of the Federal District and of a Mayor who have served more than half of their term of office, are ineligible for any office within the jurisdiction of the office holder.
 
Article 6  [Foundation of Democratic Parties]
(0) Federal Congressmen may, during the six months following the enactment of the Constitution, in meetings attended by at least thirty of them, request the Superior Electoral Court to register a new political party, the petition to be accompanied by the respective statement, by laws and program duly signed by the petitioners.
(1) Provisional registration which is promptly granted by the Superior Electoral Court pursuant to this article, bestows upon the new party all rights, duties, and prerogatives of existing parties, including the right to participate, under its own name, in the elections to be held during the twelve months following its formation.
(2) The new party automatically loses its provisional registration if, within twenty-four months of its formation, it fails to obtain final registration at the Superior Electoral Court in accordance with the law.
 
Article 7  [International Human Rights]
Brazil strives for the creation of an international human rights court.
 
Article 8  [Amnesty]
(0) Amnesty is granted to those who, during the period from 18 Sep 1946 to the date the Constitution is enacted, have been affected, for exclusively political reasons, by institutional or supplemental exception acts, to those encompassed in Legislative Decree No. 18, of 15 Dec 1961, and to those affected by Decree Law No. 846 of 12 Sep 1969, ensuring the promotions, during their inactivity, to the office, position or rank to which they would be entitled if they were in active service, with due regard for the periods of continuous activity set forth in applicable laws and regulations, respecting the characteristics and peculiarities of the careers of civil and military public servants and complying with the respective legal regimes.
(1) The provisions of this article only generate financial effects as from the enactment of the Constitution, any kind of retroactive compensation being forbidden.
(2) The benefits established in this article are ensured to workers of the private sector who are trade union officers and representatives and who, for exclusively political reasons, have been punished, dismissed, or compelled to leave the remunerated service they performed, as well as to those who have been prevented from performing their professional activities by virtue of ostensive pressure or secret official procedures.
(3) Economic redress is granted, in accordance with a law to be proposed by Congress and to become effective within twelve months of enactment of the Constitution, to all citizens who were prevented from performing, as civilians, a specific professional activity by virtue of Reserved Ordinances of the Aeronautics Ministry No. S 50 GM5 of 19 June 1964, and No. S 285 GM5.
(4) Those who, by virtue of institutional acts, have gratuitously exercised elective officers of city councilmen are entitled to computation of the respective periods for purposes of retirement from civil service and social security.
(5) The amnesty granted under this article applies to civil servants and to employees at all levels of government or of its foundations, state companies, or mixed capital companies under state control, except for military Ministers, who have been punished or dismissed from professional activities interrupted by decision of their employees, as well as by virtue of Decree Law No. 1632 of 4 Aug 1978, or for exclusively political reasons, ensuring readmission of those affected as from 1979, with due regard for the provisions of this Paragraph.
 
Article 9  [Recuperation of Political Rights]
(0) Those who, for exclusively political reasons, were disfranchised or had their political rights suspended during the period from 15 July to 31 Dec 1969, by an act of the then President of the Republic, may request the Federal Supreme Court to acknowledge the rights and advantages interrupted by the punitive acts, provided that they prove that such acts were marked by gross vices.
(1) The Federal Supreme Court renders its decision within one hundred and twenty days as from the interested party's request.
 
Article 10  [Miscellaneous Provisions]
(0) Until such time as the supplementary law referred to in Article 7 I of this Constitution is enacted:
I. the protection referred to therein is limited to the increase, to four times, of the percentages set forth in Article 6, main provision and Paragraph, of Law No. l 5107 of 13 Sep 1966;
II. arbitrary dismissal or dismissal without just cause is prohibited:
a) for an employee elected to an executive office on an internal accident prevention committee, from the date he registers as a candidate to one year after the end of his term of office;
b) for a pregnant employee, from the date the pregnancy is confirmed to five months after delivery.
(1) Until such time as the law regulates the provisions of Article 7 XIX of the Constitution, the period of paternity leave referred to in such item is five days.
(2) Until further legal provisions are established, the contributions to fund the activities of rural unions are collected together with the rural property tax, by the same collecting agency.
(3) Upon the first proof of fulfillment of labor obligations by rural employers, pursuant to Article 233, after the enactment of the Constitution, the conformity of the contract and of the correction of the labor obligations over the entire period is certified before the Labor Courts.
 
Article 11  [New State Constitutions]
(0) Each State Legislative Assembly endowed with constituent powers drafts the State Constitution within one year from the enactment of the Federal Constitution, with due regard for the principles of the Federal Constitution.
(1) After a State Constitution has been enacted, it is incumbent upon the City Council, within six months, to vote the respective Organic Law, in two discussion and voting rounds with due regard for the provisions of the Federal and State Constitutions.
 
Article 12 [Land Studies Committee, Borders]
(0) Within ninety days of the enactment of the Constitution, a Land Studies Committee is created with ten members appointed by Congress and five members by the Executive, for the purpose of submitting studies concerning the national territory and draft bills on new territorial units, particularly in the Legal Amazon Region and in areas which are awaiting solutions.
(1) Within one year the Committee submits the results of its studies to Congress so that, in accordance with the Constitution, such studies be examined during the twelve subsequent months; the committee is dissolved shortly thereafter.
(2) The States and the Municipalities, within three years of the enactment of the Constitution, provide, by agreement or arbitration, for the demarcation of their borders presently in litigation, and they may for such purpose alter and compensate areas by virtue of natural phenomena, historical criteria, administrative ease, and convenience of the bordering population.
(3) At the request of the interested States and Municipalities, the Republic may take charge of the demarcation work.
(4) If, three years after the enactment of the Constitution, the demarcation work has not been completed, the Republic determines the borders of the litigious areas.
(5) The present borders of the State of Acre with the States of Amazonas and Rondonia are recognized and ratified according to cartographic and geodesic surveys conducted by the Tripartite Committee formed by representatives of the States and of the specialized technical services of the Brazilian Institute of Geography and Statistics.
 
Article 13  [New State]
(0) The State of Tocantins is created by separation of the area described in this article and its installation occurs on the forty-sixth day after the elections foreseen in Paragraph but not before 1 Jan 1989.
(1) The State of Tocantins is part of the Northern Region and borders with the State of Goias along the northern boundaries of the Municipalities of Sao Miguel do Araguaia, Porangatu, Formoso, Minacu, Cavalcante, Monte Alegre de Goias, and Campos Belos, maintaining the present eastern, northern, and western borders of Goias with the States of Bahia, Piaui, Maranhao, Para, and Mato Grosso.
(2) The Executive designates one of the State's cities as its provisional Capital until such time as the final seat of government is approved by the Constituent Assembly of the State.
(3) The Governor, the Vice Governor, the Senators, and the Federal and State Representatives are elected, in a single ballot, within seventy five days after the enactment of the Constitution but not before 15 Nov 1988, at the discretion of the Superior Electoral Court, with due regard, inter alia, for the following rules;
I. the deadline for affiliation of the candidates to the parties end seventy-five days prior to the date of the elections;
II. the dates for the regional party conventions for the purposes of deciding upon coalitions and choice of candidates, for the presentation of the application for registration of the candidates chosen, and for the other legal procedures are determined by the Electoral Courts in a special schedule;
III. the holders of state or municipal offices who have not left such offices on a definitive basis seventy-five days prior to the date of the elections foreseen in this paragraph are ineligible;
IV. the present regional committees of the political parties of the State of Goias are maintained, it being incumbent upon the national executive committees to designate provisional committees for the State of Tocantins, in accordance with and for the purposes foreseen in the law.
(4) The terms of office of Governor, Vice Governor, and Federal and State Representatives elected in accordance with the preceding paragraph end concurrently with those of the other units of the Federation; the term of office of the least voted elected Senator ends on the same occasion, and the terms of office of the other two Senators end together with those of the Senators elected in 1986 in the other States.
(5) The State Constituent Assembly is installed on the forty-sixth day as from the election of its members, but not before 1 Jan 1989, under the chairmanship of the President of the Regional Electoral Court of the State of Goias and on the same date the elected Governor and Vice Governor are inaugurated.
(6) The legal rules regulating the division of the State of Mato Grosso apply, where appropriate, to the creation and installation of the State of Tocantins, with due regard for the provisions of Article 234 of the Constitution.
(7) The State of Goias is released from debts and charges, which result from undertaking within the territory of the new State, and the Republic is authorized, at its discretion, to assume such debts.
 
Article 14 [Territories]
(0) The Federal Territories of Roraima and of Amapa are transformed into Federation States, their present geography borders being maintained.
(1) The installation of the States occurs upon the inauguration of the governors elected in 1990.
(2) The rules and criteria adopted for the creation of the State of Rondonia apply to the transformation and installation of the States of Roraima and Amapa, with due regard for the provisions of the Constitution and of this Act.
(3) The President of the Republic submits, not more than forty-five days after the Constitution is enacted, for examination by the Federal Senate the names of the governors of the Territories of Roraima and Amapa, who form the Executive Branch until the new States are installed with the inauguration of the elected governors.
(4) Until transformation into States is consummated according to this article, the Federal Territories of Roraima and Amapa enjoy the benefits of transfer of funds foreseen in Article 159 I a) of the Constitution and Article 34 II of this Act.
 
Article 15  [Incorporation of Fernando de Noronha]
The Federal Territory of Fernando de Noronha is extinguished and its area reincorporated into the State of Pernambuco
 
Article 16  [Federal District]
(0) Until the provisions of Article 32 of the Constitution are implemented, it is incumbent upon the President of the Republic, with the approval of the Federal Senate, to appoint the Governor and Vice Governor of the Federal District.
(1) The authority of the Legislative Assembly of the Federal District is, until such time as it is instated, exercised by the Senate.
(2) The accounting, financial, budgetary, operational, and equity supervision of the Federal District are, until such time as the City Council is instated, carried out by the Federal Senate, by means of external control with the assistance of the Audit Court of the Federal District, with due regard for the provisions of Article 72 of the Constitution.
(3) The assets of the Federal District include those, which may be assigned to it by the Republic pursuant to the law.
 
Article 17  [Reduction of Advantages]
(0) Earnings, compensation, advantages, and additional pay, as well as retirement pensions, which are being received in disaccord with this Constitution, are reduced immediately to the limits arising therefrom. In such case, it is not allowed to involve a vested right or receipt of excess on any account.
(1) The cumulative occupation of two medical offices or jobs is ensured if held by a military physician in the direct or indirect government administration.
(2) The cumulative occupation of two offices or jobs reserved for health professional is ensured if held in the direct or indirect government administration
 
Article 18  [National Assembly Servants]
The legal effects of any legislative or administrative act drawn up as of the instatement of the National Constituent Assembly, the objective of which is to grant a tenure to a public servant admitted without a public competitive examination to the direct or indirect administration, including the foundations instituted and maintained by the Government, are extinguished.
 
Article 19  [Tenure]
(0) Civil public servants of the Republic, States, Federal District, and Municipalities, of the direct administration, autonomous government entities, and government foundations, who, on the date of enactment of the Constitution, have been in office for at least five continuous years, and who have not been admitted pursuant to Article 37 of the Constitution, are deemed to have tenure in the public service.
(1) The period of service of the civil servants referred to in this article is considered as a title when they take a competitive examination for the purpose of being rendered permanent pursuant to the law.
(2) The provisions of this article do not apply to the holders of benefit or commission functions and jobs nor to those who are legally subject to free discharge, whose period or service may not be computed for the purposes of the main provision of this article, exception being made for public servants.
(3) The provisions of this article may not apply to superior education professors pursuant to the law.
 
Article 20  [Pensioners]
Within one hundred and eighty days, the rights of inactive public servants and pensioners are revised and the income and pensions owed to them are updated in order to adjust them to the provisions of this Constitution.
 
Article 21  [Temporary Judges]
(0) Judges vested in office for a limited period of time, who have been admitted by means of a public competitive examination of tests and titles and who are in office on the date this Constitution is enacted, achieve tenure with due regard for the probation period and they become part of a staff in extinction, maintaining the authority, prerogatives, and restrictions of the laws to which they were subject, except for those inherent to the temporary nature of their investiture.
(1) Retirement of the judges referred to in this article is regulated by the rules established for other state judges.
 
Article 22  [Former Public Defenders]
Public defenders vested in office before the date of instatement of the National Constituent Assembly are ensured the right to opt for the career, complying with the guarantees and prohibitions set forth in Article 134 (1) of the Constitution.
 
Article 23  [Former Censors]
(0) Until such time as the regulations of article 21 XVI of the Constitution are issued, the present holders of the office of federal censor continue to exercise functions compatible with such office in the Federal Police Department, with due regard for the constitutional provisions.
(1) Such law provides for the reassignment of the Federal Censors pursuant to this article.
 
Article 24  [Staff]
The Republic, the States, the Federal District, and the Municipalities issue laws establishing criteria to make their staff compatible with the provisions of Article 39 of the Constitution and with the administrative reorganization resulting therefrom, within eighteen months as from the enactment thereof.
 
Article 25  [Repeals and conversions]
(0) All legal provisions which confer or delegate to an agency of the Executive authority assigned to Congress by the Constitution are revoked one hundred and eighty days after the enactment of the Constitution, such period being subject to extension by law, especially as regards:
I. normative action;
II. allocation or transfer of funds of any kind.
(1) The decree laws pending before Congress and not examined by Congress before the Constitution is enacted have their effects regulated as follows:
I. if issued before 2 Sep 1988, they are examined by Congress within up to one hundred and eighty days as from the date the Constitution is enacted, not counting Congress recess;
II. if the time limit defined in the preceding item elapses without the decree laws mentioned therein having been examined, they are considered rejected;
III. in the case defined in Items I and II, the acts performed during the effectiveness of the respective decree laws are fully valid and Congress may, if necessary, legislate on their remaining effects.
(2) Decree laws issued between 3 Sep 1988 and the date in which the Constitution is enacted are on such date converted into provisional measures, the rules established in Article 62 (1) being applied thereto.
 
Article 26  [Indebtedness]
(0) Within one year of enactment of the Constitution, Congress provides, through a mixed Committee for an analytical and expert examination of the acts and facts, which generate the Brazilian foreign indebtedness.
(1) The Committee has the legal authority of a parliamentary investigation Committee for purposes of requisition and summons, and acts with the assistance of the Audit Tribunal of the Union.
(2) If irregularities are determined, Congress proposes that the Executive declare the act null and void and forwards the case to the Federal Public Attorney's Office, which takes the appropriate action within sixty days.
 
Article 27  [Former Federal Court of Appeals]
(0) The Superior Court of Justice is installed under the Presidency of the Federal Supreme Court.
(1) Until such time as the superior Court of Justice is installed, the Federal Supreme Court performs the duties and responsibilities defined in the previous constitutional order.
(2) The superior Court of Justice is initially composed:
I. by reassignment of Justices of the Federal Court of Appeals;
II. by appointment of the Justices requited to complete the number established in the Constitution.
(3) For the purposes of the Constitution, the present Justices of the Federal Court of Appeals are considered as belonging to the class they belonged to at the time of their appointment.
(4) Once the Court has been installed, the Justices retired from the Federal Court of Appeals automatically become retired Justices of the Superior Court of Justice.
(5) The Justices referred to in Paragraph II are designated in a triple list by the Federal Court of Appeals, with due regard for the provisions of Article 104 (1) of the Constitution.
(6) Five Federal Regional Courts of Justice are hereby created, to the installed within six months of the enactment of the Constitution, with the jurisdiction and seat assigned to them by the Federal Court of Appeals in consideration of the number of cases and their geographical location.
(7) Until such time as the Federal Regional Courts of Justice are installed, the Federal Court of Appeals exercises the authority attributed to them throughout the Brazilian territory, and it also provides for their installation and designates candidates for all initial offices by means of a triple list which may include federal judges of any region, with due regard for the provisions of Paragraph (9).
(8) As from enactment of the Constitution, it is forbidden to fill vacant offices of Justices of the Federal Court of Appeals.
(9) If there is no federal judge with the minimum period of service set forth in Article 101 II of the Constitution, the promotion may be granted to a judge with less than five years of office.
(10) The Federal Courts judge the lawsuits filed therein until such time as the Constitution is enacted and the Federal Regional Courts as well as the Superior Court of Justice judge rescissory actions for the decisions rendered until then by the Federal Cats, including those which refer to matters for which jurisdiction has been transferred to another branch of the Judiciary.
(11) The following Federal Regional Courts are yet to be created: the 6th Region, based in Curitiba, State of Paraná, and jurisdiction in the states of Paraná, Santa Catarina and Mato Grosso do Sul; the 7th Region, based in Belo Horizonte , State of Minas Gerais, and jurisdiction in the State of Minas Gerais; the 8th Region, based in Salvador, Bahia, and jurisdiction in the States of Bahia and Sergipe; and the 9th Region, based in Manaus, State of Amazonas and jurisdiction in the states of Amazonas, Acre, Rondônia and Roraima.
 
Article 28  [Federal Judges]
(0) The federal judges referred to in Article 123 of the Constitution of the Federative Republic of Brazil, 1967, with the wording given by Constitutional Amendment No. 7 of 1977, are vested in office in courts of the Judiciary Section for which they were appointed or designated; if there are not vacancies, the existing courts are divided.
(1) For purposes of promotion for seniority, the period of service of such judges is computed as from the day they took office.
 
Article 29  [New Offices, Temporary Duties]
(0) Until such time as the Supplemental Laws related to the Attorney General's Office and the Advocacy General of the Union are approved, the Federal Attorney General's Office the Office of the Attorney General of the National Treasury, the Legal Advisory Offices of the Ministries, the Attorney Offices and Legal Departments of federal autonomous government entities with their own representation and the members of Attorney Offices of public foundation Universities continue to conduct their activities within their respective jurisdiction.
(1) The President of the Republic, within one hundred and twenty days, submits to Congress a bill of supplemental law dealing with the organization and operation of the Advocacy General of the Union.
(2) The present Attorneys of the Republic, in accordance with the supplemental law, have the right to opt irrevocably between the careers of the Federal Attorney General's Office and of the Advocacy General of the Union
(3) A member of the Attorney General's Office admitted prior to the enactment of the Constitution may opt for the previous regime insofar as guarantees and advantages are concerned, with due regard, as to prohibitions, for the legal status on the date of such enactment.
(4) The present members of the supplementary staff of the Labor and Military Attorney General's Offices, who have acquired tenure in these functions, are long to the staff of the respective career.
(5) It is incumbent upon the present Office of the Attorney General of the National Treasury, directly of by delegation, which may be made to the State Attorney General's Office, to represent the Republic in court in lawsuits of a fiscal nature, in their respective spheres of authority, until such time as the supplemental laws set forth in this article are enacted.
 
Article 30  [Justice of Peace]
The laws that create the justice of peace maintain the present judges of peace until such time as the new judges take office, ensuring them the rights and duties conferred on the latter, and determine the date for the election set forth in Article 98 II of the Constitution
 
Article 31  [Clerks]
The clerk offices of the judicial courts, as defined by law, are taken over by the State, with due regard for the rights of the present clerks.
 
Article 32  [Registration]
The provisions of Article 236 may not apply to notary and registration services which have already been rendered official by the Government, due respect being given to the rights of their servants.
 
Article 33  [Credits]
(0) Excepting credits for alimony, the amount of court orders for which payment is outstanding on the date of enactment of the Constitution, including remaining interest and monetary correction, may be paid in legal tender, with adjustment, in equal and successive annual installments, within at most eight years as from 1 Jul 1989, pursuant to a decision by the Executive within one hundred and eighty days of enactment of the Constitution.
(1) In order to comply with the provisions of this article, the debtor entities may each year issue, in the exact amount of the expenditure, public debt bonds, which may not be computed for purposes of determining the aggregate limit of indebtedness
 
Article 34  [National Tributary System]
(0) The national tributary system becomes effective as from the first day of the fifth month following enactment of the Constitution, the systems of the 1967 Constitution of the Federative Republic of Brazil, with the wording provided by Amendment No. 1 of 1969 and subsequent amendments, being maintained until then.
(1) With the enactment of this Constitution, Articles 148, 149, 150, 154 I, 156 III, and 159 I c) become effective and all provisions to the contrary in the 1967 Constitution and in the Amendments which modified it are revoked, especially its Article 25 III.
(2) The Participation Fund of the States and of the Federal District and the Participation Fund of the Municipalities comply with the following determinations:
I. as from the enactment of the Constitution, the percentages are eighteen percent and twenty percent, respectively, calculated on the proceeds from collection of the taxes referred to in Article 153 III and IV, maintaining the present apportionment criteria until such time as the supplemental law referred to in Article 161 II, becomes effective;
II. the percentage for the Participation Fund of the States and of the Federal District has one percent added in fiscal year 1989 and, as from and including 1990, one half of one percent per fiscal year up to and including 1992, reaching the percentage established in Article 159 I a) in 1993;
III. the percentage for the Participation Fund of the Municipalities is, as from and including 1989, raised at the rate of one half of one percent per fiscal year, until it reaches the limit established in Article 159 I b).
(3) Once this Constitution has been enacted, the Republic, the States, the Federal District, and the Municipalities may issue the laws required to apply the national tributary system set forth therein.
(4) The laws issued in accordance with the preceding paragraph are effective as from the effectiveness of the national tributary system set forth in this Constitution.
(5) Once the new national tributary system is in force, the application of the preceding legislation is ensured to the extent that it is not incompatible with such system and with the legislation referred to in Paragraphs (3) and (4).
(6) Until 31 Dec 1989, the provisions of Article 150 III b) may not apply to the taxes referred to in Article 155 I a) and b) and Article 156 II and III which may be collected thirty days after the publication of the law which instituted or increased such taxes.
(7) Until such time as they are fixed in a supplemental law, the maximum rates of the municipal tax on retail sales of liquid and gaseous fuels may not exceed three percent.
(8) If, within sixty days of enactment of this Constitution, the supplemental law required for the institution of the tax referred to in Article 155 I b) has not been issued, the States and the Federal District, by means of an agreement entered into according to Supplemental Law No. 24 of 7 Jan 1975, determine the rules to regulate the matter provisionally.
(9) Until such time as a supplemental law provides for the matter, electric power distribution companies, in the capacity of taxpayers or of tax substitutes, are liable, when the product leaves their establishments, even if the destination is another unit of the Federation, for the payment of the tax on the distribution of goods levied on electric power, from production or importation to the last operation, such tax being calculated on the price then charged for the final operation and ensuring payment of such tax to the State or to the Federal District, depending on the place where such operation is to take place
(10) Until such time as the law set forth in Article 159 I c), which is enacted by 31 Dec 1989, is in force, the application of the funds set forth in such provision is ensured in the following manner:
I. six tenths of one percent in the Northern Region, through Banco da Amazonia S.A.;
II. one and eight tenths percent in the Northeastern Region, through Banco do Nordeste do Brasil S.A.;
III. six tenths of one percent in the Central Western Region, through Banco do Brasil S.A.
(11) The Central Western Development Bank is hereby created in accordance with the law so as to comply, in said region, with the determinations of Articles 159 I c) and 192 of the Constitution.
(12) The urgency foreseen in Article 148 II may not adversely affect collection of the compulsory loan created for the benefit of Centrais Eletricas Brasileiras S.A. by Law No. 4156 of 28 Nov 1962, as subsequently amended.
 
Article 35  [Miscellaneous Provision]
(0) The provisions of Article 165 are complied with progressively over a period of up to ten years, the funds to be distributed among the macro economic regions in proportion to their population, based on the situation determined for the 1986-1987 biennium.
(1) In applying the criteria referred to in this article, the total expenses exclude expenses for:
I. projects considered as priorities in the pluriannual plan;
II. national security and defense;
III. maintenance of the federal entities in the Federal District;
IV. Congress, the Audit Tribunal of the Union and the Judiciary;
V. servicing the debt of the direct and indirect administration of the Republic, including foundations instituted and maintained by the Federal Government.
(2) Until such time as the supplemental law referred to in Article 165 I and II comes into force, the following rules apply:
I. the project of the pluriannual plan to be effective until the end of the first fiscal year of the subsequent presidential term of office is submitted not less than four months before the end of the first fiscal year and returned to be sanctioned by the end of the legislative term;
II. the bill of the budget directives law is submitted not less than eight and a half months before the end of the fiscal year and returned to be sanctioned by the end of the first period of the legislative term;
III. the bill of the budget law of the Republic is submitted not less than four months before the end of the fiscal year and returned to be sanctioned by the end of the legislative term.
 
Article 36  [Extinction of Funds]
The funds existing on the date the Constitution is enacted, except for those resulting from tax exemptions, which become private property and those, which are of interest to national defense, are extinguished if they are not ratified by Congress within two years.
 
Article 37  [Adaptation to Article 167 III]
Adaptation to the provisions of Article 167 III is made within five years, the excess to be reduced at a rate of at least one-fifth per year.
 
Article 38  [Temporary Provision]
(0) Until such time as the supplemental law referred to in Article 169 is enacted, the Republic, the States, the Federal District, and the Municipalities may not spend more than sixty-five percent of the amount of the respective current revenues on personnel.
(1) The Republic, the States, the Federal District, and the Municipalities, whenever the respective expenditures with personnel exceed the limit set forth in this article, return to such limit by reducing the excess percentage at a rate of one fifth per year.
 
Article 39  [Variable Expenses]
(0) For purposes of compliance with the constitutional provisions, which involve variations of expenses and revenues of the Republic, after the enactment of the Constitution, the Executive prepares and the Legislative examines a bill of review of the budget law for fiscal year 1989.
(1) Congress votes within twelve months the supplemental law set forth in Article 161 II.
 
Article 40  [Duty Free Zone]
(0) The Free Trade Zone of Manaus, with its features of free trade, export and import, and fiscal benefits, is maintained for a period of twenty-five years as from enactment of the Constitution.
(1) The criteria which regulated or which come to regulate the approval of projects in the Free Trade Zone of Manaus may only be modified by federal law.
 
Article 41  [Tax]
(0) The Executive Branches of the Republic, the States, the Federal District, and the Municipalities reassess all sectorial tax incentives now in force and propose the appropriate action to the respective Legislative Branches.
(1) Those incentives, which are not confirmed by law within two years of the date the Constitution is enacted, are considered revoked.
(2) Revocation may not adversely affect any rights, which have become vested rights before such date, in relation to incentives granted subject to conditions and for a limited period of time.
(3) Incentives granted by means of agreements entered into between States in accordance with Article 23 of the 1967 Constitution, with the wording of Amendment No. 1 of 17 Oct 1969, are also reassessed and reconfirmed within the time limits set forth in this article.
 
Article 42  [Irrigation Funds]
Of the funds intended for irrigation, during a period of 25 (twenty-five) years, the Union applies:
I. twenty percent in the Central Western Region;
II. fifty percent in the Northeastern Region, preferentially in the semi arid region.
 
Article 43  [Mineral Resources]
On the date of enactment of the law regulating the prospecting and mining of mineral resources and deposits or within one year of the date this Constitution is enacted, the authorizations, grants and other deeds affording mining rights become ineffective if the prospecting or mining work has not provenly commenced within the legal time limits or is inactive.
 
Article 44  [Mining]
(0) The Brazilian companies which presently hold valid prospecting authorization and permits to mine mineral resources and to exploit hydraulic energy potentials have four years as from enactment of this Constitution to satisfy the requirements of Article 176.
(1) Except for the provisions of national interest set forth in the constitutional text, Brazilian companies may not be required to comply with the provisions of Article 176, provided that, within up to four years of the date the Constitution is enacted, they have destined the product they mine and process to industrialization in the Brazilian territory, in their own establishments or in a controlling or controlled industrial company.
(2) Brazilian companies which hold a hydraulic energy grant for use in their industrial processes are also not required to comply with the provisions of Article 176 (1).
(3) The Brazilian companies referred to in Paragraph may only hood prospecting authorizations or permits to mine or exploit hydraulic energy potentials, provided that the energy and the mined product are used in their respective industrial processes
 
Article 45  [Exclusion]
(0) Refineries which operate in Brazil under article 43 and under the conditions of Article 45 of Law No. 2004 of 3 Oct 1953 are excluded from the monopoly established by Article177 II of the Constitution.
(1) Risk contracts entered into with Petroleo Brasileiro S.A. for oil prospecting, which are effective on the date the Constitution is enacted, are exempted from the prohibition of Article 177.
 
Article 46  [Bankruptcy]
(0) Credits with institutions under intervention or extra judicial liquidation, even when such proceedings are converted into bankruptcy, are subject to monetary correction from the date of maturity to the date of actual payment, with no interruption or suspension.
(1) The provisions of this article also apply:
I. to transactions made after the proceedings referred to in the main provision of this article have been decreed;
II. to loan, financing, and refinancing transactions, and transactions of financial assistance for liquidity purposes, assignment or subrogation of credits or mortgage bonds guarantee of deposits made by the public or of purchase of liabilities, including those carried out with funds intended for such purposes;
III. to credit existing prior to the enactment of this Constitution;
IV. to credits held by government administration entities before the enactment of this Constitution and not settled by 1 Jan 1988.
 
Article 47  [Settlement of Debts]
(0) In the settlement of debts, including the subsequent renegotiation and composition thereof, even when taken to court, arising out of any loans granted by banks and by financial institutions, there is no monetary correction provided that the loan has been granted:
I. to micro and small businessmen or to their establishments in the period from 28 Feb 1986 to 28 Feb 1987;
II. to mini, small, and medium rural producers in the period from 28 Feb 1986 to 31 Dec 1987, provided that it refers to rural credit.
(1) For the purposes of this article, micro companies are considered as legal entities and individual firms with annual income of up to ten thousand National Treasury Bonds, and small companies as legal entities and individual firms with annual income of up to twenty five thousand National Treasury Bonds.
(2) Classification as a mini, small, and medium rural producer is made in accordance with the rural credit rules in force at the time of the contract.
(3) The monetary correction exemption referred to in this article is only granted in the following cases:
I. if the initial debt, plus legal interest and judicial fees, is settled within ninety days of enactment of this Constitution;
II. if the application of the funds is not contrary to the purpose of the financing, the burden of proof lying with the creditor institution;
III. if the creditor institution does not show that the borrower has the means to pay his debt, such means excluding the borrower's establishment, the house where he lives and his work and production instruments;
IV. if the initial financing does not exceed the limit of five thousand National Treasury Bonds;
V. if the beneficiary does not own more than five rural modules.
(4) The benefits dealt with in this article may not be extended to debts that have already been paid and to debtors who are members of the Constituent Assembly.
(5) In the event of transactions maturing after the deadline for settlement of the debt, should the borrower be interested, the banks and the financial institutions provide, by a specific instrument, for amendment to the original conditions of the contract so as to adjust them to this benefit.
(6) The granting of this benefit by private commercial banks may not, under any circumstances, entail a burden for the Government, even if made by refinancing and lending of funds by the Central Bank.
(7) In the event of lending to official financing agents or credit cooperatives, the burden falls upon the original source of funds.
 
Article 48  [Consumer Defense Code]
Within one hundred and twenty days of the enactment of this Constitution, Congress prepares a consumer defense code.
 
Article 49  [Urban Real Propriety Contract]
(0) The law provides on emphyteusis concerning urban real property, the tenants having the option, in the event of extinction, of redemption of the emphyteusis, by acquisition of direct title in accordance with the provisions contained in the respective contracts.
(1) In the absence of a contractual clause, the criteria and bases currently in force in special legislation on real property of the Republic are adopted.
(2) The rights of present registered occupants are ensured by application of another kind of contract.
(3) Emphyteusis continues to be applied to tidelands and areas added thereto, which are located within security strip off the coastline.
(4) After redemption of the emphyteusis, the former holder of direct title, within ninety days, subject to liability, entrusts all documents related to such title to the custody of the competent real estate registry.
 
Article 50  [Agricultural Law]
An agricultural law to be enacted within one year provides, pursuant to this Constitution, on the objectives and instruments of agricultural policy, priorities, crop planning, marketing, internal supply, foreign market and institution of agrarian credit.
 
Article 51  [Revision of Land Transaction]
(0) All donations, sales, and grants of public lands with an area of more than three thousand hectares, made in the period from 1 Jan 1962 to 3 Dec 1987, are reviewed by Congress, by a mixed committee, during the three years following the enactment of the Constitution.
(1) As far as sales are concerned, the review is based exclusively on the criterion of lawfulness of the transaction.
(2) In the case of grants and donations, the review complies with the criteria of lawfulness and of convenience of public interest.
(3) In the events set forth in the preceding paragraphs, if illegality is proven or if there is pubic interest, the lands revert to the ownership of the Republic, of the States, of the Federal District of the Municipalities.
 
Article 52  [Special Order for Financial Institutions]
(0) Until such time as the conditions referred to in Article 192 are established, the following are forbidden:
I. installation, in Brazil, of new branches of financial institutions domiciled abroad;
II. increase in the percentage participation of individuals and legal entities resident or domiciled abroad in the capital of financial institutions with head office in Brazil.
(1) The prohibition referred to in this article does not apply to authorizations resulting from international agreements, reciprocity agreements or agreements of interest to the Brazilian government.
 
Article 53  [Veterans of War]
(0) Veterans, who actually participated in war operations during the Second World War, pursuant to Law No. 5315 of 12 Sep 1967, are assured of the following rights:
I. admission to pubic service, with tenure and without having to undergo a competitive examination;
II. special pension corresponding to that of 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 treasury, except for social security benefits, the right to opt being ensured;
III. in the event of death, proportional pension for the widow or companion or dependent, in an amount equal to that of the preceding item;
IV. free medical, hospital and educational assistance, extending to dependents;
V. retirement with full pay after twenty-five years of actual service, under any law legal system;
VI. priority in the acquisition of a home for those who do not own one or for their widows or companions.
(1) Granting of special pension referred to in Item II replaces, for all legal effects, any other pension already granted to veteran.
 
Article 54  [Rubber Tappers Status]
(0) Rubber tappers recruited pursuant to Decree Law No. 5813 of 14 Sep 1943 and protected by Decree Law No. 9882 of 16 Sep 1946, receive, when needy, a monthly pension for life in the amount of two minimum wages.
(1) The benefit extends to rubber trappers who, at the request of the Brazilian Government, contributed to the war effort by working in rubber production in the Amazon Region during the Second World War.
(2) The benefits established in this article may be transferred to dependents that are provenly needy.
(3) The benefit is granted according to a law to be proposed by the Executive within one hundred and fifty days of enactment of the Constitution.
 
Article 55  [First Budget of the Republic]
Until such time as the budget directives law is approved, at least thirty percent of the social security budget, excluding unemployment insurance, is allocated to the health sector.
 
Article 56  [Law Regulation]
Until such time as the law regulates Article 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. 1940 of 25 May 1982, as amended by Decree Law No. 2049 of 1 Aug 1983, by Decree No. 91236 of 8 May 1985 and by Law No. 7611 of 8 July 1987, become part of the social security revenues, excepting, exclusively in fiscal year 1988, commitments assumed for ongoing programs and projects.
 
Article 57  [Internal Social Security Debts]
(0) The debts of the States and Municipalities for social security contributions to 30 June 1988 are settled, with monetary correction, in one hundred and twenty monthly installments, with the waiver of the interest and penalties applicable thereto, provided the debtors request installment payment and begin such payments within one hundred and eighty days of enactment of this Constitution.
(1) The amount to be paid in each of the first two years may not be less than five percent of the total consolidated and updated debt, the balance to be divided into equal monthly installments.
(2) Settlement may include payments by assignment of assets and rendering of services, in accordance with Law No. 7578 of 23 Dec 1986.
(3) As security for payment of the installments, the States and Municipalities each year consign in their respective budgets the appropriations required for the payment of their debts.
(4) If any of the conditions established for the granting of installment payment are not satisfied, the debt is considered due and payable in full and liable for default interest; in such event, the potion of the funds corresponding to the Participation Funds intended for the debtor States and Municipalities is blocked and transferred to social security for payment of their debts.
 
Article 58  [Continuous Benefits]
(0) Benefits paid on a continuous basis and maintained by social on the date the Constitution is enacted, have their values reviewed so as to re-establish their purchasing power expressed in terms of the number of minimum wages they represented on the date on which they were granted, such updating criterion to be adopted until such time as the funding and benefits plan referred to in the following article is implemented.
(1) The monthly benefit payments updated in accordance with this article are due and payable as from the seventh month after enactment of the Constitution.
 
Article 59  [Organizational Law on Social Security]
(0) The bills of law for the organization of social security and for the funding and benefits plans are submitted not more than six months after the enactment of the Constitution to Congress, which has six months in which to examine them.
(1) Upon approval by Congress, the plans are implemented progressively in the following eighteen months.
 
Article 60  [Ten years provision]
(0) In the 14 (fourteen) years following the promulgation of this Constitutional Amendment, the States, the Federal District, and the Municipalities allocate a portion of the monies referred to in the head paragraph of article 212 of the Federal Constitution, to the maintenance and development of basic education and to the payment of appropriate salaries to education workers, with due regard for the following provisions:
I. the distribution of monies and responsibilities among the Federal District, the States, and their Municipalities is assured through the establishment, within each State and the Federal District, of a Fund for the Maintenance and Development of Basic Education and for the Appreciation of Education Professionals -- FUNDEB, of a financial nature;
II. the Funds referred to in item I of the head paragraph of this article are made up of 20% (twenty percent) of the resources referred to in article 155 I, II and III; article 157 (0) II; article 158 (0) II, III and IV; and article 159 (0) I a) and b), and II, of the Federal Constitution, and are distributed among each State and its municipalities, in proportion to the number of students in the various grades and modalities of on-site basic education, enrolled in the respective school systems, within the respective scope of priority action as established by article 211 (2) and (3) of the Federal Constitution;
III. with due regard for the guarantees established in article 208 (0) I, II, III and IV of the Federal Constitution, as well as for the basic education universalization goals established in the National Education Plan, the law provides for:
a) the organization of the Funds, the proportional distribution of their resources, the differences and weightings regarding the annual value per student among the various grades and modalities of basic education and types of schools;
b) the form of calculation of the minimum annual value per student;
c) the maximum percentages for the allocation of fund resources to the various grades and modalities of basic education, with due regard for articles 208 and 214 of the Federal Constitution, as well as for the National Education Plan goals;
d) oversight and control of the Funds;
e) a deadline to stipulate, by means of a specific law, a nationwide professional minimum salary for public school teachers of basic education;
IV. the resources transferred to the Funds established under the terms of item I of the head paragraph of this article are applied by the States and Municipalities exclusively within the scope of their priority actions, as established by article 211 (2) and (3) of the Federal Constitution;
V. the Federal Government supplements the resources of the Funds referred to in item II of the head paragraph of this article, whenever in the Federal District and in each State, the value per student does not reach the nationally set minimum value, stipulated in accordance with the provisions of item VII of the head paragraph of this article, and use of the resources referred to in article 212 (5) of the Federal Constitution is forbidden;
VI. up to 10% (ten percent) of the resources supplemented by the Federal Government as set forth in item V of the head paragraph of this article may be distributed to the Funds by means of programs aimed at improving the quality of
education, under the terms of the law referred to in item III of the head paragraph of this article;
VII. the minimum amount of resources supplemented by the Federal Government as set forth in item V of the head paragraph of this article is equal to:
a) R$ 2,000,000,000.00 (two billion reais), in the first year the Funds are in force;
b) R$ 3,000,000,000.00 (three billion reais), in the second year the Funds are in force;
c) R$ 4,500,000,000.00 (four billion and five hundred million reais), in the third year the Funds are in force;
d) 10% (ten percent) of the total amount of resources referred to in item II of the head paragraph of this article, as from the fourth year the Funds are in force;
VIII. the resources earmarked for the maintenance and development of education as established in article 212 of the Federal Constitution may cover a maximum amount of 30% (thirty percent) of the resources supplemented by the Federal Government, taking into consideration, for the purposes of this item, the amounts set forth in item VII of the head paragraph of this article;
IX. the amounts referred to in sub-items a, b, and c of item VII of the head paragraph of this article are adjusted every year as from the promulgation of this Constitutional Amendment, so that the real value of the supplementation provided by the Federal Government is permanently preserved;
X. the supplementation provided by the Federal Government complies with the provisions of article 160 of the Federal Constitution;
XI. the competent authority is held liable for crime of malversation in case of non-compliance with the provisions of items V and VII of the head paragraph of this article;
XII. a share of not less than 60% (sixty percent) of the resources of each Fund referred to in item I of the head paragraph of this article is used for the payment of basic education teachers who are actually teaching.
(1) When financing basic education, the Federal Government, the States, the Federal District, and the Municipalities ensure that the quality of education will be improved, so as to guarantee a nationally set minimum standard.
(2) The value per elementary school student, within each State Fund and the Federal District Fund, may not be lower than the value prescribed by the Fund for the Maintenance and Development of Elementary Education and
for the Appreciation of the Teaching Profession -- FUNDEF, in the year preceding the coming into force of this Constitutional Amendment.
(3) The minimum annual value per elementary school student, within the Fund for the Maintenance and Development of Basic Education and for the Appreciation of Education Professionals -- FUNDEB, may not be lower than the minimum value stipulated for the entire country in the year preceding the year in which this Constitutional Amendment comes into force.
(4) For the purposes of distribution of the resources of the Funds referred to in item I of the head paragraph of this article, the total number of students enrolled in elementary education will be taken into account, and, as regards infant education, high school, and the education of young people and adults, 1/3 (one third) of the total number of students enrolled in the first year, 2/3 (two thirds) in the second year, and the total number as from the third year is taken into consideration.
(5) The percentage of resources to constitute the Funds, in accordance with item II of the head paragraph of this article, is gradually achieved over the first 3 (three) years the Funds are in force, as follows:
I. as to the taxes and transfers mentioned in article 155 (0) II; article 158 (0) IV; article 159 (0) I a) and b) , and II, of the Federal Constitution:
a) 16.66% (sixteen and sixty-six hundredths of one percent), in the first year;
b) 18.33% (eighteen and thirty-three hundredths of one percent), in the second year;
c) 20% (twenty percent), as from the third year;
II. as to the taxes and transfers mentioned in article 155 (0) I and II, article 157 (0) II; and article 158 (0) II and III of the Federal Constitution:
a) 6.66% (six and sixty-six hundredths of one percent), in the first year;
b) 13.33% (thirteen and thirty-three hundredths of one percent), in the second year;
c) 20% (twenty percent), as from the third year.
(6) {Revoked}.
(7) {Revoked}.
 
Article 61 [Law Regulation]
The educational entities referred to in Article 213, as well as the educational and research foundations to be created as authorized by law, which satisfy the requirements of items I and II of such article and which have during the last three years received public funds, may continue to receive such funds, unless otherwise established in the law.
 
Article 62  [SENAR]
The law creates the National Rural Apprenticeship Service (SENAR) based on the legislation for the National Industrial Apprenticeship Service (SENAI) and the National Commercial Apprenticeship Service (SENAC), without prejudice to the responsibilities of the government entities engaged in the area.
 
Article 63  [Centennial Celebration]
(0) A Committee composed of nine members is created, three of them from the Legislative, three from the Judiciary, and three from the Executive, to promote the commemorations of the centennial of proclamation of the Republic and of enactment of Brazil's first republican Constitution, provided that such Committee may, at its discretion, be subdivided into as many subcommittees as may be necessary.
(1) In discharging its duties, the Committee conducts studies, debates, and assessments on the political, social, economic, and cultural development of Brazil, and may join efforts with state and municipal governments and with public and private institutions desiring to take part in the events.
 
Article 64  [Publication of the Constitution]
The National Press and other printing departments of the Republic, the States, the Federal District, and the Municipalities, of direct or indirect administration, including foundations instituted and maintained by the Government provide for a popular edition of the full text of the Constitution, which is made available, free of charge, to schools and public registry offices, trade unions, military quarters, churches, and other community organizations, so that each Brazilian citizen may receive from the State a copy of the Brazilian Constitution.
 
Article 65  [Regulation of Article 220]
The Legislative, within twelve months, regulates Article 220 (3).
 
Article 66  [Telecommunications]
The public telecommunications utility concessions presently in force are maintained in accordance with the law.
 
Article 67  [Indian Lands]
The Republic concludes the demarcation of Indian lands within five years of enactment of the Constitution.
 
Article 68  [Propriety Title]
Final title is recognized for the remaining members of the "quilombo" communities who are occupying their lands and the State grants them the respective title deeds.
 
Article 69  [Advisory Bodies]
The States are allowed to maintain legal advisory offices independent from their Attorney General Offices or Advocacy General Offices, provided that they have separate agencies for the respective functions on the date of enactment of this Constitution.
 
Article 70  [Jurisdiction]
The present jurisdiction of the state courts is maintained until it is defined in the State Constitution pursuant to article 125 of this Constitution.
 
Article 71 [Emergency Social Fund]
(0) The Emergency Social Fund is hereby instituted for the fiscal years of 1994 and 1995, as well as for the periods from January 1, 1996 through June 30, 1997, and from July 1, 1997 through December 31, 1999, aiming at the financial recuperation of the Federal Public Finances and the economic stabilization, the resources of which are applied primarily to the actions of the health and education systems, including the supplementation of resources set forth in article 60 III of the Temporary Constitutional Provisions Act, the welfare benefits and welfare assistance of a permanent nature, including the payment of welfare debts and budgetary expenditures associated to programs of great economic and social interest.
(1) The provision of the final part of article 165 IX II. of the Constitution may not apply to the Fund established by this article.
(2) From the beginning of the 1996 fiscal year on, the Fund established by this article is called Fiscal Stabilization Fund.
(3) The Executive Power publishes, on a bimonthly basis, a budget execution statement, which statement lists the sources and applications of the Fund established by this article."
 
Article 72 [Comprisal of Emergency Social Fund]
(0) The Emergency Social Fund is comprised of:
I. the proceeds from the collection of the tax on income and earnings of any nature to be levied at source on payments of any nature effected by the Union, including its autonomous government entities and foundations.
II. the part of the proceeds from the collection of the tax on income and earnings of any nature, and of the tax on credit, foreign exchange and insurance transactions, or transactions relating to bonds and securities, resulting from the changes generated by Law 8,894 of June 21, 1994, and by Laws 8,849 and 8,848, both dated January 28, 1994 and further modifications;
III. the part of the proceeds from the collection due to the increase of the rate of welfare contribution on the profit of taxpayers mentioned in paragraph 1 of article 22 of Law 8, 212 of July 24, 1991, which, in the fiscal years of 1994 and 1995, as well as in the period from January 1, 1996 through June 30, 1997, is of 30 percent, subject to modification by ordinary law, the other stipulations of Law 7,689 of December 15, 1988 remaining unchanged;
IV. twenty percent of the proceeds from the col- lection of all taxes and contributions to the Union, already instituted or to be instituted, except those provided by items I, II and III, with due regard to the provisions of paragraphs 3 and 4;
V. the part of the proceeds from the collection of the contribution mentioned in Supplementary Law no. 7, of September 7, 1970, owed by the juridical entities referred to in item III of this article, which will be calculated, in the fiscal years of 1994 and 1995, as well as in the periods from January 1, 1996 through June 30, 1997, and from July 1, 1997 through December 31, 1999, through the employment of a rate of seventy-five hundredths of one percent, subject to modification by subsequent ordinary law, on the gross operating income, as defined in the legislation of income tax and earnings of any nature;
VI. other incomes, defined in specific legislation.
(1) The rates and calculation base defined in items III and V are applied as from the first day of the month following the ninetieth day after the promulgation of this amendment.
(2) The parts referred to in items I, II, III and V are previously deducted from the calculation base of any legal or constitutional designation or participation, and the provisions of articles 159, 212 and 239 of the Constitution may not apply to them.
(3) The part referred to in item IV is previously deducted from the calculation base of any constitutional or legal designation or participation stipulated by articles 153 V, 157 II, 212 and 239 of the Constitution.
(4) The provision of the former paragraph may not apply to the resources provided by articles 158, II, and 159 of the Constitution.
(5) The part of the resources originating from the tax on income and earnings of any nature, designated for the Emergency Social Fund, as provided by item II of this article, may not exceed five and six-tenths of one percent of the total proceeds from its collection.
 
Article 73 [Regulation of Emergency Social Fund]
In the regulation of the Emergency Social Fund, the instrument provided by article 59 V of the Constitution may not be applied.
 
Article 74 [Provisional contribution]
(0) The Union may establish provisional contribution on the movement or transmission of monies and of credits and rights of financial nature.
(1) The rate of the contribution mentioned in this article may not exceed twenty-five hundredths of one percent, and the Executive Power may reduce it or reestablish it, in whole or in part, in the conditions and limits provided for by law.
(2) The provisions of articles 153 V, and 154 I of the Constitution may not apply to the contribution mentioned in this article.
(3) The whole of the proceeds from the collection of the contribution mentioned in this article are allocated to the National Health Foundation for the financing of health actions and services.
(4) The liability for the contribution mentioned in this article is governed by the provisions of article 195 VI, of the Constitution, and it may not be collected for longer than two years."
 
Article 75 [Provisional contribution on movement or transmission of monies]
(0) The collection of the provisional contribution on the movement or transmission of monies and of credits and rights of a financial nature mentioned in article 74, established by Law no. 9,311, of October 24, 1996, is extended for thirty-six months, and the same extension applies to the effect of Law no. 9,539, of December 12, 1997, which modified Law no. 9,311.
(1) With due regard for article 195 (6) of the Federal Constitution, the rate of the contribution is thirty-eight hundredths of one percent, in the first twelve months, and thirty hundredths in the subsequent months, and the Executive Power may reduce it, in whole or in part, in the limits hereby stipulated.
(2) The proceeds from increased collection of the contribution, resulting from the alteration of the rate, during the financial years of 1999, 2000, and 2001, are allocated to the financing of social security.
(3) The Union is authorized to issue domestic public debt bonds, whose resources are allocated to the financing of health services and social security, in an amount equivalent to the proceeds of the collection of the contribution, estimated but not achieved in 1999.
 
Article 76 [Collection of Federal taxes and social contributions]
(0) Twenty percent of the proceeds from the collection by the Union of taxes, social contributions, and contributions for intervention in the economic domain, already instituted or that may be instituted by December 31, 2015, as well as their additional taxes and respective legal increases, may not be earmarked to any public agencies, fund, or expenses in the said period.
(1) The provision of the head paragraph of this article may not reduce the assessment basis of the transfers to the States, the Federal District, and the Municipalities under the terms of articles 153 (5); 157 I; 158 I and II; and 159 I a., b. and d. and II, of the Constitution, neither the assessment basis of the remittances mentioned in article 159 I c. of the Constitution.
(2) The proceeds from the collection of the social contribution for education mentioned in article 212 (5) of the Constitution, are expected from the provision of the head paragraph of this article.
(3) For purposes of calculating the funds for maintenance and development of education referred to in article 212 of the constitution, the percentage mentioned in the head paragraph of this article is null.
 
Article 77 [Minimal amount of funds for health actions and public services]
(0) Until the financial year of 2004, the minimum amount of funds applied to health actions and public services is equivalent to:
I. in the case of the Union:
a) in the year 2000, the amount of checks issued to health actions and public services during the financial year of 1999, plus at least five percent;
b) from the year 2001 through the year 2004, the amount expended in the previous year, restated according to the nominal changes of the Gross Domestic Product -- GDP;
II. in the case of the States and of the Federal District, twelve percent of the proceeds from the collection of the taxes referred to in article 155 and of the funds mentioned in articles 157 and 159 I a) and item II, after deducting the portions transferred to the respective Municipalities;
III. in the case of the Municipalities and of the Federal District, fifteen percent of the proceeds from the collection of the taxes mentioned in article 156 and of the funds mentioned in articles 158 and 159 I b), and paragraph (3).
(1) The States, the Federal District, and the Municipalities which apply percentages lower than those stipulated in items II and III raise them gradually, until the financial year of 2004, the difference being reduced at the rate of at least one fifth per year, and the application consisting of at least seven percent as of the year 2000. (2) At least fifteen percent of the funds of the Union expended under the terms of this article is applied in the Municipalities, according to the populational criterion, to health actions and public services, in accordance with the law.
(3) The funds of the States, the Federal District, and the Municipalities assigned for health actions and public services, as well as those transferred by the Union for the same purpose, are applied by means of the Health Fund, to be monitored and supervised by the Health Board, without prejudice to the provisions of article 74 of the Federal Constitution.
(4) In the absence of the supplementary law referred to in article 198 (3), the provisions of this article apply to the Union, the States, the Federal District, and the Municipalities as of the financial year of 2005.
 
Article 78 [Court Order Depts]
(0) With the exception of credits defined by law as being of a small amount, credits for alimony, and credits stated in article 33 of this Temporary Constitutional Provisions Act and their supplementations, as well as those credits whose respective funds have already been released or paid into court, the court order debts for which payment is outstanding on the date of promulgation of this Amendment and those deriving from actions commenced before or on December 31, 1999, are settled according to their real value, in legal tender, including legal interests, in equal and successive annual installments, within ten years at the most, the assignment of credits being permitted.
(1) The division of installments is permitted, at the discretion of the creditor.
(2) In the event the annual installments referred to in the head paragraph of this article have not been paid before the end of the relevant fiscal year, they are deducted from the taxes owed to the debtor entity.
(3) The period of time referred to in the head paragraph of this article is reduced to two years, in the case of court order debts deriving from the expropriation of a creditor's residential property, provided that such property is proven to be the creditor's only residential property at the time of emission of a writ of ejectment.
(4) If the time limit has elapsed, or in the case of omission in the budget, or in the event the right of precedence is not respected, the President of the appropriate Court, upon petition of a creditor, requisitions or orders the seizure of funds of the debtor entity, at an amount sufficient to pay the installment
 
Article 79 [Fund to Fight and Eradicate Poverty]
(0) The Fund to Fight and Eradicate Poverty, hereby instituted within the sphere of the Federal Executive Branch, is in force through the year 2010 and is regulated by a supplementary law, aiming at enabling all Brazilians to have access to adequate subsistence levels, and its resources are applied to supplementary initiatives regarding nutrition, housing, education, health, a complementary family income, and other programs of relevant social interest oriented towards the improvement of the quality of life.
(1) The Fund set forth in this article has an Advisory and Monitoring Board that must include representatives of civil society, under the terms of the law.
 
Article 80 [Purport of the Fund to Fight and Eradicate Poverty]
(0) The Fund to Fight and Eradicate Poverty is comprised of:
I. the part of the proceeds from the collection corresponding to additional eight hundredths of one percent, applicable from June 18, 2000, through June 17, 2002, to the rate of the social contribution referred to in article 75 of the Temporary Constitutional Provisions Act;
II. the part of the proceeds from the collection corresponding to additional five percent on the rate of the federal VAT [IPI], or of the tax that may eventually replace it, levied on luxury goods and applicable while the Fund is in force;
III. the proceeds from the collection of the tax referred to in article 153 VII, of the Constitution;
IV. budgetary appropriations;
V. donations, of any nature, by individuals or corporations established in Brazil or abroad;
VI. other revenues, to be defined by the legislation that regulates the Fund.
(1) The provisions of articles 159 and 167 IV, of the Constitution, are not applicable to the resources that make up the Fund, neither is any disconnection of budgetary resources.
(2) The proceeds from the collection of the resources referred to in item I of this article, during the period from June 18, 2000 through the date the supplementary law mentioned in article 79 becomes effective, are remitted in full to the Fund, their real value being preserved, in federal government securities, progressively redeemable after June 18, 2002, under the terms of the law.
 
Article 81 [Fund to be transferred to the Fund to Fight and Eradicate Poverty]
(0) A Fund is hereby instituted, to be comprised of the resources received by the Federal Government as a result of divestiture of government-controlled corporations and public enterprises controlled either directly or indirectly by the Federal Government, when such operation involves the divestment of the respective con- trolling interest to an individual or entity not belonging to the government bodies, or of any remaining equity interest following such divestment, and the income thereof, generated as from June 18, 2002, is transferred to the Fund to Fight and Eradicate Poverty.
(1) In case the yearly amount of income to be transferred to the Fund to Fight and Eradicate Poverty, as set forth in this article, does not add up to the total of four billion reais, it is supplemented according to article 80 IV, of the Temporary Constitutional Provisions Act.
(2) Without prejudice to the provision of paragraph (1), the Executive Branch may allocate other revenues deriving from the sale of Federal Government assets to the Fund mentioned in this article.
(3) The resources that make up the Fund referred to in the head paragraph of this article, the transfer of said resources to the Fund to Fight and Eradicate Poverty, and the other provisions concerning paragraph (1) of this article are regulated by law, and the provision of article 165 (9) II of the Constitution may not be applicable.
 
Article 82 [Funds to Fight Poverty]
(0) The States, the Federal District, and the Municipalities institute Funds to Fight Poverty, comprised of the resources referred to in this article and other resources that may eventually be allocated for this purpose, and the said Funds are managed by entities that include the participation of civil society.
(1) With a view to financing the State Funds and the Federal District Fund, an additional tax of up to two percent may be created, to raise the rate of the State VAT [ICMS], due on luxury goods and services and observing the conditions defined in the supplementary law referred to in article 155 (2) XII of the Constitution, and the provision of article 158 IV of the Constitution may not be applicable to such percentage.
(2) With a view to financing the Municipal Funds, an additional tax of up to half of one percent may be created, to raise the rate of the local service tax [ISS], or the rate of the tax that may eventually replace it, levied on luxury services.
 
Article 83 [Luxury goods and services]
A federal law defines the luxury goods and services referred to in articles 80 II, and 82 (2).
 
Article 84 [Collection of provisional contribution]
(0) The provisional contribution on the movement or transmission of monies and of
credits and rights of a financial nature, set forth in articles 74, 75, and 80 I, of this Temporary Constitutional Provisions Act, is collected through December 31, 2004.
(1) The effect of Law no. 9,311, of October 24, 1996, as well as of its alterations, is hereby extended through the date mentioned in the head paragraph of this article.
(2) Of the proceeds from collection of the social contribution mentioned in this article, the portion corresponding to the following rates is allocated to the purposes herein stated:
I. twenty-hundredths percent to the National Health Fund, for the financing of health actions and services;
II. ten-hundredths percent to the financing of social security;
III. eight-hundredths percent to the Fund to Fight and Eradicate Poverty, set forth in articles 80 and 81 of this Temporary Constitutional Provisions Act.
(3) The rate of the contribution mentioned in this article is equal to:
I. thirty-eight-hundredths percent in the financial years of 2002 and 2003;
II. {Revoked}
 
Article 85 [Entries not to be levied]
(0) The contribution mentioned in article 84 of this Temporary Constitutional Provisions Act may not be levied, as from the thirtieth day after the publication of this Constitutional Amendment, on entries concerning:
I. current deposit accounts especially opened and exclusively used for transactions carried out by:
a) clearinghouses and providers of clearing and settlement services referred to in article 2 (1), of Law no. 10,214, of March 27, 2001;
b) securitization companies referred to in Law no. 9,514, of November 20, 1997;
c) business corporations whose exclusive purpose is to purchase credits originating from transactions carried out in the financial market;
II. current deposit accounts, when such entries are related to:
a) stock purchase and sale transactions, effected within stock exchange trading floors or electronic systems, and in the organized over-the-counter market;
b) contracts written on stocks or stock indices, in their various modes, negotiated in stock exchanges, commodities and futures exchanges;
III. foreign investors' accounts, regarding entries into and remittances from Brazil of funds employed exclusively in transactions and contracts referred to in item II of this article.
(1) The Executive Branch regulates the provisions of this article within thirty days as of the date of publication of this Constitutional Amendment.
(2) The provisions of item I of this article apply only to the transactions specified in an act issued by the Executive Branch, from among the transactions that constitute the purpose of said entities.
(3)The provisions of item II of this article apply only to transactions and contracts effected through financial institutions, securities brokerage houses, securities distribution companies, and commodities brokerage houses.
 
Article 86  [Debts to be paid by the Tax Authorities]
(0) Debts that must be paid by the Federal, State, Federal District, or Municipal Tax Authorities by virtue of final and unappealable judicial decisions are paid in accordance with the provisions of article 100 of the Federal Constitution, the parceling rule established in article 78 (0) of this Temporary Constitutional Provisions Act not being applicable, if such debts meet the following cumulative conditions:
I. having been the subject of a court order;
II. having been defined as small amount debts by the law referred to article 100 (3) of the Federal Constitution, or by article 87 of this Temporary Constitutional Provisions Act;
III. their payment being outstanding, in whole or in part, on the date of publication of this Constitutional Amendment.
(1) The debts referred to in the head paragraph of this article, or their respective balances, are paid in chronological order of presentation of the respective court orders, with precedence over debts of a higher amount.
(2) If the debts referred to in the head paragraph of this article have not been subject to partial payment yet, under the terms of article 78 of this Temporary Constitutional Provisions Act, they may be paid in two annual installments, as the law provides.
(3) The payment of the alimony debts referred to in this article, with due respect for the chronological order of their presentation, takes precedence over the payment of all other debts.
 
Article 87 [Court Order Debts or Bonds]
(0) For purposes of the provisions set forth in article 100 (3) of the Federal Constitution, and in article 78 of this Temporary Constitutional Provisions Act, and until such time as the official publication of the respective defining acts by the units of the Federation is effected, the debts or bonds stated in court orders are considered as being of a small amount, with due regard for article 100 (4) of the Federal Constitution, if their amount is equal to or lesser than:
I. forty minimum monthly wages, in the case of debts owed by the Tax Authorities of the States and of the Federal District;
II. thirty minimum monthly wages, in the case of debts owed by the Tax Authorities of the Municipalities.
(1) Should the amount under execution exceed the amount stipulated in this article, payment is always made by means of a court order, the execution creditor being entitled to waiving the credit of the excess amount, so that he may opt to receive the balance without the emission of a court order, in the manner set forth in article 100 (3).
 
Article 88 [Tax in article 156 (3) III of the Federal Constitution]
(0) Until such time as a supplementary law regulates the provisions of article 156 (3) I and III of the Federal Constitution, the tax referred to in item III of the head paragraph of said article:
I. has a minimum rate of two percent, save for the services referred to in items 32, 33, and 34 of the List of Services appended to Decree-Law no. 406, of December 31, 1968;
II. is not subject to the granting of fiscal exemptions, incentives, and benefits, should the direct or indirect result of such granting be the reduction of the minimum rate stipulated in item I.
 
Article 89 [Police of the former Federal Territory of Rondonia]
(0) The members of the uniformed police force and local administration employees of the former Federal Territory of Rondowho, in accordance with official documents, were regularly exercising their functions and rendering services to such former territory at the time it was transformed into a state, as well as the employees and uniformed police officers covered by the provisions of article 36 of Supplementary law no. 41, December 22, 1981, and those who were legally included in the RondoState Government personnel up until March 15, 1987, that is, the date the first elected governor took office, are included, at their option, in a special job class to be eventually terminated within the federal government services, being ensured of their specific rights and advantages, whereas the payment, under any circumstances, of remuneration differences is forbidden.
(1) The members of the uniformed police force continues rendering services to the State of Rondoin the quality of detailed personnel, subject to their respective uniformed police forces, with due regard for the compatibility between the duties of their function and their rank in the hierarchy.
(2) The employees referred to in the head paragraph continue rendering services to the state of Rondoin the quality of detailed personnel, up until they are placed in a federal government entity, associate government agency, or foundation.
 
Article 90 [Rate of the contribution in article 84 and extension of time limit]
(0) The time limit set forth in the head paragraph of article 84 of this Temporary Constitutional Provisions Act is hereby extended through December 31, 2007.
(1) The effect of Law no. 9,311, of October 24, 1996, as well as of its alterations, is hereby extended through the date mentioned in the head paragraph of this article.
(2) The rate of the contribution referred to in article 84 of this Temporary Constitutional Provisions Act is equal to thirty-eight hundredths per cent through the date referred to in the head paragraph of this article.
 
Article 91 [Remittance of Funds to the States]
(0) The Union remits to the States and to the Federal District the amount defined by a supplementary law, in accordance with the criteria, time limits, and terms therein determined, taking into consideration exports of primary commodities and semi-manufactured products to other countries, the import-export ratio, credits deriving from purchases intended for the permanent assets, and the effective maintenance and utilization of the tax credits referred to in article 155 (2) X a).
(1) As to the amount of funds to be remitted to each State, seventy-five percent of such amount is assigned to the State itself, and twenty-five percent to its Municipalities, such percentage being distributed in accordance with the criteria referred to in article 158 (1) of the Constitution.
(2) The remittance of funds set forth in this article prevails, as defined in a supplementary law, until such time as the proceeds from the collection of the tax referred to in article 155 II, are predominantly assigned, in a proportion not below eighty per cent, to the State where consumption of the products, goods, or services takes place.
(3) Until such time as the supplementary law referred to in the head paragraph is enacted, and so as to replace the system of remittance of funds set forth therein, there remain in force the system of remittance of funds set forth in article 31 and Schedule of Supplementary Law no. 87, of September 13, 1996, with the wording provided by Supplementary Law no. 115, of December 26, 2002.
(4) The States and the Federal District present to the Federal Government, under the terms of instructions issued by the Finance Ministry, information regarding the tax referred to in article 155 II, supplied by the taxpayers who carry out transactions involving goods to be shipped abroad or services to be delivered to foreign parties.
 
Article 92 [Extension of time period]
A period of ten years is added to the period of time set forth in article 40 of this Temporary Constitutional Provisions Act.
 
Article 93 [Provisions of Article 159]
The provisions of article 159 III and paragraph (4) only come into force after the promulgation of the law referred to in said item III.
 
Article 94 [Discontinuation of special tax regimes]
The special tax regimes for micro and small businesses which are specific of the Union, the States, the Federal District, and the Municipalities are discontinued as from the date the regime set forth in article 146 III d) of the Constitution comes into force.
 
Article 95 [Citizens born abroad]
Persons born abroad between June 7, 1994, and the date of enactment of this Constitutional Amendment, to a Brazilian father or a Brazilian mother, may be registered with a Brazilian diplomatic or consular authority, or with an official registry if they come to reside in the Federative Republic of Brazil.
 
Article 96 [Establishment, fusion, merger and dismemberment of municipalities]
Acts aimed at the establishment, fusion, merger, and dismemberment of municipalities, whose act of creation was published on or before December 31, 2006, are hereby confirmed, provided that the requirements set forth in the legislation of the respective state at the time of establishment of said municipalities have been fulfilled.
 
Article 97  [Debts]
Up until the supplementary law referred to in paragraph 15 of article 100 of the Federal Constitution is enacted, the states, the federal district, and Municipalities which, on the date of enactment of constitutional amendment no. 62, have not yet effected payment of past due court-ordered debts regarding their respective direct and indirect administration, including court orders issued during the period the special regime instituted by this article is in force, effect such payments in accordance with the rules set forth in this article, whereas the provisions of article 100 of this Federal Constitution is not applicable, save for its paragraphs 2, 3, 9, 10, 11, 12, 13, and 14, and without prejudice to conciliation agreements already formalized by the date of publication of constitutional amendment no. 62. (ca no. 62, 2009)
(1) The States, the Federal District, and Municipalities subject to the special regime set forth in this article opt, by means of an executive power act, for either:
I. depositing the amount referred to in paragraph 2 of this article into a special account; or
II. adopting the special regime for a period of up to 15 (fifteen) years, in which case the percentage to be deposited into the special account referred to in paragraph 2 of this article must be equivalent to the total yearly balance of court-ordered debts, increased by the official rate applied to savings accounts and by simple interest applied at the same percentage of interest applied to savings accounts for the purpose of compensation of delay in the payment -- the employment of compensatory interest being excluded, reduced by any paid amount, and divided by the remaining number of years in the special regime of payment.
(2) In order to pay up both its past due and future accruing court-ordered debts through the special regime, the states, the federal district, and Municipalities in debt effect a monthly deposit into a special account created for such purpose, of 1/12 (one twelfth) of the amount calculated as a percentage of the respective net current revenues, as computed in the second month preceding the month of payment, whereas such percentage, calculated at the time of opting for the special regime and kept unchanged through the end of the period referred to in Paragraph 14 of this article, must be equal to:
I. in the case of the States and of the Federal District:
a. at least 1.5% (one whole and five tenths per cent), for the States of the North, Northeast, and Centre-West regions, in addition to the Federal District, or for those States where the backlog of court orders owed by their respective direct and indirect administration corresponds to up to 35% (thirty-five per cent) of the total net current revenues;
b. at least 2% (two per cent), for the States of the South and Southeast Regions, where the backlog of court orders owed by their respective direct and indirect administration corresponds to over 35% (thirty-five per cent) of the net current revenues;
II. in the case of Municipalities:
a. at least 1% (one per cent), for Municipalities of the North, Northeast, and Centre-West regions, or for those Municipalities where the backlog of court orders owed by their respective direct and indirect administration corresponds to up to 35% (thirty-five per cent) of the net current revenues;
b. at least 1.5% (one whole and five tenths per cent), for Municipalities of the South and Southeast Regions, where the backlog of court orders owed by their respective direct and indirect administration corresponds to over 35% (thirty-five per cent) of the net current revenues.
(3) For the purposes of this article, net current revenues mean the total sum of tax, industry, and agriculture revenues, property income, revenues from contributions and from services, current transfers, and other current revenues, including those deriving from paragraph 1 of article 20 of the federal constitution, such total sum being computed in the period including the reference month and the 11 (eleven) preceding months, excluding any double counting but at the same time deducting:
I. in the case of the states, the portions remitted to the Municipalities as set forth by the Constitution;
II. in the case of the states, the federal district, and Municipalities, the contribution paid by respective employees to fund their own social security and social assistance system, as well as revenues deriving from the financial offsetting referred to in paragraph 9 of article 201 of the federal constitution.
(4) the special accounts referred to in paragraphs 1 and 2 are managed by the respective Court of Justice, for payment of judicial orders issued by courts.
(5) The funds deposited into the special accounts referred to in paragraphs 1 and 2 of this article may not be returned to the states, the federal district, and Municipalities in debt.
(6) At least 50% (fifty per cent) of the funds referred to in Paragraphs 1 and 2 of this article must be used to pay court orders according to their chronological order of submission, with due regard for the priorities defined in Paragraph 1 of Article 100 -- in the case of court orders of one same year, and in paragraph 2 -- in the case of court orders of all years.
(7) If it is not possible to ascertain the chronological priority between two court orders, the court order stating the smallest amount is to be paid first.
(8) The employment of the remaining funds depends on option to be effected by the states, the federal district, and Municipalities in debt, through an executive power act, in accordance with the following modes, which may be applied either separately or simultaneously:
I. payment of court orders by means of auctions;
II. payment in cash of court orders not paid up under the terms of paragraph 6 and of Item I, in a single, increasing order of respective amounts;
III. payment through direct agreement with creditors, under the terms of law specific to each federating unit in debt, which may provide for the establishment and mode of operation of conciliation panels.
(9) The following applies to the auctions referred to in item I of Paragraph (8) of this Article:
I. auctions are carried out through an electronic system managed by an entity authorized by the Brazilian Securities and Exchange Commission (CVM) or by the Central Bank of Brazil;
II. court orders -- or a installment of a court order amount as designated by its holder -- with respect to which no appeal or challenge of any nature whatsoever is pending within the Judicial Power are qualified to take part in an auction, whereas, at the initiative of the executive power, it will be permitted to offset court-order debt payments against clear legal debits, either registered or not under debts in execution and attributed to the original debtor by the treasury in debt up to the date of issuance of respective court order, save for those whose enforceability has been stayed under the terms of the law, or which have already been subject to deduction under the terms of Paragraph 9 of Article 100 of the Federal Constitution;
III -- auctions will be effected through public offer to all creditors qualified by the respective federating unit in debt;
IV. any creditor who meets the requirements of item II is considered automatically qualified;
V. auctions must be carried out as many times as necessary to meet the available amount;
VI. inclusion of an installment of the total amount in an auction will be effected at the discretion of respective creditor, at an abatement in the amount of the installment;
VII. auctions take the form of debt abatement, associated with the largest volume offered -- either cumulated or not with the highest percentage of abatement, according to the highest percentage of abatement, in which case the maximum amount per creditor may be stipulated, or according to another criterion to be defined in a public call notice;
VIII. the price formation mechanism must be stated in the public call notices issued for each auction;
IX. the payment in part of a court order is ratified by the court that issued said court order.
(10) Should the funds referred to in item II of paragraph (1) and in Paragraphs (2) and (6) of this article not be made available in due time:
I. there must be effected attachment of the relevant amount in the accounts belonging to the states, the federal district, and Municipalities in debt, by order of the presiding Judge of the court referred to in paragraph 4, up to the limit of the amount not made available;
II. there must be established, as an alternative, by order of the presiding Judge of the relevant court, in favor of creditors of court orders, against the states, the federal district, and Municipalities in debt, a clear legal right -- self-enforceable and irrespective of regulation -- to automatic offsetting against clear debits attributed to said creditors by such debtors, whereas, there being a balance in favor of a creditor, such amount is automatically deductible from the taxes owed to the states, the Federal District, and Municipalities in debt, up to the offsetting limits;
III. the head of respective executive power is liable under the terms of the legislation on fiscal responsibility and administrative dishonesty;
IV. for as long as non-compliance prevails, the federating unit in debt:
a. is not allowed to raise loans at home or abroad;
b. is not entitled to receive voluntary transfers;
V. the Federal Government must not effect the remittances regarding the revenue sharing fund of the states and the federal district and the revenue sharing fund of Municipalities, depositing them instead into the special accounts referred to in paragraph (1) of this article, whereas the employment of such amounts must comply with paragraph (5) of this article.
(11) As regards a court order concerning several creditors in a joinder of parties, the court of origin of said court order may dismember the total amount per creditor, and each creditor may participate in an auction with the total amount such creditor is entitled to, the rule set forth in paragraph 3 of article 100 of the federal constitution not being applicable to such case.
(12) Should the legislation referred to in paragraph (4) of article 100 not be enacted within 180 (one hundred and eighty) days as from the date of enactment of constitutional amendment no. 62, the following amounts prevail for the relevant purposes, for the states, the federal district, and Municipalities in debt which have failed to regulate the matter:
I. 40 (forty) monthly minimum wages in the case of states and the federal District;
II. 30 (thirty) monthly minimum wages in the case of Municipalities.
(13) During the period in which the states, the federal district, and Municipalities in debt are effecting payment of court orders through the special regime, they may not be subject to attachment of amounts, except when the funds referred to in item II of paragraph (1) and in paragraph (2) of this article are not made available in due time.
(14) The special regime for payment of court orders set forth in item I of paragraph (1) of this article is in force for as long as the amount of court-ordered debts is higher than the amount of funds earmarked under the terms of Paragraph (2) of this article, or for a fixed period of 15 (fifteen) years in the case of the option referred to in item ii of paragraph 1.
(15) Court-ordered debts divided into installments under the terms of Article 33 or Article 78 of this Temporary Constitutional Provisions Act and whose payment is still pending must be included in the special regime with the amount of all pending installments being updated, whereas the balance of any judicial and extrajudicial agreements must also be included in the special regime.
(16) As from the date constitutional amendment no. 62 is enacted, the amounts stated in court orders, up until effective payment, irrespective of their nature, are to be adjusted according to the official rate applied to savings accounts, whereas, for the purpose of compensation of delay in the payment, simple interest will be applied at the same percentage of interest applied to savings accounts, the employment of compensatory interest being excluded.
(17) While the special regime is in force, any amount in excess of the limit set forth in paragraph 2 of article 100 of the federal constitution must be paid in accordance with Paragraphs 6 and 7 or with Items I, II, and III of Paragraph 8 of this article, whereas the amounts used to meet the provision of paragraph 2 of article 100 of the Federal Constitution must be computed for the purposes of paragraph 6 of this article.
(18) While the special regime referred to in this article is in effect, the original holders of court orders who have reached the age of 60 (sixty) years old by the date of enactment of constitutional amendment no. 62 are also entitled to the priority referred to in paragraph (6).

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For methodology see: Comparing Constitutions and International Constitutional Law.
© 1994 - 27.6.2020 / For corrections please contact A. Tschentscher.