Temporary Constitutional Provisions Act

Article 76. 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, 2011, as well as their additional taxes and respective legal increases, shall not be earmarked to any agency, fund, or expense in the said period. (CA No. 27, 2000; CA No. 42, 2003; CA No. 56, 2007; CA No. 59, 2009)

Paragraph 1. The provision of the head paragraph of this article shall not reduce the assessment basis of the transfers to the States, the Federal District, and the Municipalities under the terms of articles 153, paragraph 5; 157, item I; 158, items I and II; and 159, item I, letters a and b; and item II, of the Constitution, neither the assessment basis of the remittances mentioned in article 159, I, c, of the Constitution.

Paragraph 2. The proceeds from the collection of the social contribution for education mentioned in article 212, paragraph 5, of the Constitution, shall be excepted from the provision of the head paragraph of this article.

Paragraph 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 shall be 12.5% (twelve and five tenths percent) in fiscal year 2009, 5% (five percent) in fiscal year 2010, and zero in fiscal year 2011.

Article 77. Until the financial year of 2004, the minimum amount of funds applied to health actions and public services shall be equivalent to: (CA No. 29, 2000)

1. in the case of the Union:

a) in the year 2000, the amount of checks issued to health actions and publicservices 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;

2. 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, item I, subitem a, and item II, after deducting the portions transferred to the respective Municipalities;

3. 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, item I, subitem b, and paragraph 3.

Paragraph 1. The States, the Federal District, and the Municipalities which apply percentages lower than those stipulated in items II and III shall 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 shall consist of at least seven percent as of the year 2000.

Paragraph 2. At least fifteen percent of the funds of the Union expended under the terms of this article shall be applied in the Municipalities, according to the populational criterion, to health actions and public services, in accordance with the law.

Paragraph 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, shall be 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.

Paragraph 4. In the absence of the supplementary law referred to in article 198, paragraph 3, the provisions of this article shall apply to the Union, the States, the Federal District, and the Municipalities as of the financial year of 2005.

Article 78. 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 18 and those deriving from actions commenced before or on December 31, 1999, shall be 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. (CA No. 30, 2000)

Paragraph 1. The division of installments is permitted, at the discretion of the creditor.

Paragraph 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 shall be deducted from the taxes owed to the debtor entity.

Paragraph 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.

Paragraph 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 shall, upon petition of a creditor, requisition or order the seizure of funds of the debtor entity, at an amount sufficient to pay the installment.

Article 79. The Fund to Fight and Eradicate Poverty, hereby instituted within the sphere of the Federal Executive Branch, shall be in force through the year 2010 and shall be regulated by a supplementary law, aiming at enabling all Brazilians to have access to adequate subsistence levels, and its resources shall be 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. (CA No. 31, 2000) The Fund set forth in this article shall have an Advisory and Monitoring Board that must include representatives of civil society, under the terms of the law.

Article 80. The Fund to Fight and Eradicate Poverty is comprised of: (CA No. 31, 2000)

1. 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;

2. 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;

3. the proceeds from the collection of the tax referred to in article 153, item VII, of the Constitution;

4. budgetary appropriations;

5. donations, of any nature, by individuals or corporations established in Brazil or abroad;

6. other revenues, to be defined by the legislation that regulates the Fund.

Paragraph 1. The provisions of articles 159 and 167, item IV, of the Constitution, are not applicable to the resources that make up the Fund, neither is any disconnection of budgetary resources.

Paragraph 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, shall be 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. 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 entreprises controlled either directly or indirectly by the Federal Government, when such operation involves the divestment of the respective controlling 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, shall be transferred to the Fund to Fight and Eradicate Poverty. (CA No. 31, 2000)

Paragraph 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 shall be supplemented according to article 80, item IV, of the Temporary Constitutional Provisions Act.

Paragraph 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.

Paragraph 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 shall be regulated by law, and the provision of article 165, paragraph 9, item II of the Constitution shall not be applicable.