October 16th, 2017

Legislative Newsletter - Edition 063

Searches, accusations and actions in Brasilia

The week promises to be of great decisions and repercussions in Brasilia; either because of the complaint against President Michel Temer or by the decision of the pre-trial arrest on Senator Aécio Neves (PSDB / MG).

Legislative Newsletter - Edition 063

The week promises to be of great decisions and repercussions in Brasilia; either because of the complaint against President Michel Temer or by the decision of the pre-trial arrest on Senator Aécio Neves (PSDB / MG). However, Brasília begins the week anxious with the search warrant that the Federal Police complied with this Monday morning in the office and  residence of the Federal Deputy Lucio Vieira Lima (PMDB / BA), ex- minister Geddel Vieira Lima’s brother, who is being held in custody in the capital. The operation this Monday seeks to understand the relationship between the Deputy and the R$ 51 million, the result of possible corruption, previously seized in the capital of Bahia.

After a ruling last week by the Federal Supreme Court (STF), which pointed out that it is up to the Legislative Power to give the last word regarding the pre-trial prisoner, the Senate is expected to deliberate on senator Aécio Neves’ (PSDB / MG) case. However, the task will not be easy for the senator, since accounting for an absolute majority of votes (41) is difficult. The vote is expected to be secret, a political maneuver among leaders, to increase the hope of keeping Aécio in office.

In the Executive, the Minister of Finance, Henrique Meirelles, meets on Tuesday with experts from the Federal Revenue Service to discuss the impacts of the Supreme Court's decision to withdraw the Tax on Circulation of Goods and Transportation and Communication Services (ICMS, in the acronym in Portuguese) from the Contribution to the Social Integration Plan and Contribution for Social Security Financing (PIS/Cofins, in the acronym in Portuguese) calculation basis.

But the mood between the Chamber of Deputies and the Executive is not the best, especially after the government's negligence to vote on a provisional measure (MP 784/2017, in the acronym in Portuguese) that allows the Central Bank to make leniency agreements, an unwelcomed fact in the opinion of the Chamber’s President, Rodrigo Maia (DEM-RJ). The deputy said that he will not put more MPs to a vote until the House votes a proposal to amend the constitution that regulates the procedure of these measures (PEC 70/2011). With this, the government runs the risk of seeing 14 issues expire by the end of 2017.

Corroborating with the crisis, Maia released on the Chamber's website the videos of the financial operator Lúcio Funaro, where the participation of President Temer is mentioned. However, Temer's defense lawyer in the complaint filed in the Chamber criticized that whoever disclosed such an information would be "incompetent and irresponsible." Maia testified that the information was confidential and would be of interest to Brazilian citizens. The atmosphere, however, remains tense.

For this week, the Committee on Constitution and Justice (CCJC) of the Chamber of Deputies is expected to discuss the complaint and to deliberate, on Thursday, the report by Bonifácio Andrada (PSDB / MG), who rejects the continuity of the investigations against Temer and the ministers Eliseu Padilha and Moreira Franco.

In the agenda of the Plenary, projects like the one that regulates the lobby activity in the country (PL 1202/2007) are scheduled for this week.   We also highlight the draft resolution of the House that deals with the filing of proposals at the end of the legislature (PRC 190/2001) and bills that regulate rights and obligations related to industrial property (PL 333/1999). Recalling that, in addition to a quorum, there is a need for consensus among leaders to deliberate some issues.

In the committees of the Chamber, we highlight the Seminar, on Tuesday, to discuss advances and obstacles in the implementation of the National Solid Waste Policy with focus on the impacts on the quality of life in cities; in the Urban Development Commission (CDU), which will be attended by representatives of the Secretariat of Services of the City of São Paulo; of the Urban Cleaning Service (SLU); the Brazilian Association of Public Cleaning and Special Waste Companies (ABRELP); the National Front of Municipalities (FNP); the Ministry of the Environment; the National Association of Collectors and Collectors of Recyclable Materials (ANCAT); the National Council of Municipalities (CNM); and the Business Commitment for Recycling - CEMPRE.

Also on Tuesday there will be a hearing on sustainable development, industrialization and innovation in the Commission for Environment and Sustainable Development (CMADS), with the presence of the Economic Affairs Officer of the United Nations Conference on Trade and Development (UNCTAD), Mr. Jorg Mayer ;  the Economic Affairs Officer of ECLAC - Economic Commission for Latin America and the Caribbean - Brasília Office; Mr. Marcos Vinícius Chiliatto; the Executive Coordinator of IDS - Institute for Democracy and Sustainability, Mr. Fábio de Almeida Pinto; and the Professor of UFRJ - Federal University of Rio de Janeiro; Mr. Caetanno Penna.

The Committee on Financial Oversight and Control (CFFC), together with other Committees of the House, will hold a hearing next Wednesday with the Minister of Finance, Mr. Henrique Meirelles, on the scenario of the economy and composition of the Brazilian public debt. In addition to that, Mr. Meirelles will present the actions of its portfolio for the year 2018, as well as new projects that will be included in the Program of Investment Partnerships (PPI).

On Thursday, the public hearing of the Committee on Social Security and Family (CSSF) is in evidence. It will meet to provide clarification on Health-Plans operators non-reimbursement for procedures held on public hospitals of the Unified Health System - ( SUS), for clients of the plans and for fines applied to them. Representatives of the Ministry of Health will be present; of the National Health Agency (ANS); the National Council of Health Secretaries (CONASS); of the National Health Confederation (CNS); and the Brazilian Association of Health Plans (ABRAMGE).

In the Senate, in addition to approving the decision of the Supreme Federal Court (STF) regarding the dismissal of Senator Aécio Neves (PSDB / MG), the Plenary will deliberate some matters on the Political Reform, as the project that establishes the mixed district vote in proportional elections (PLS 345/2017); and the proposal of the amendment to the Constitution that establishes that members of the Electoral Court may not have had party affiliation in the two years preceding the inauguration or the beginning of exercise of the function (PEC 4/2017). The deliberation of the proposal on the validation of administrative acts (PEC 48/2015) is also noteworthy; as well as the proposal establishing the National Fund for the Development of Public Security (PEC 24/2012).

In the commissions, we emphasize the meeting that will be held in the Committee on Economic Affairs (CAE), on Tuesday, with the nominees to occupy positions in the Administrative Council of Economic Defense - CADE, of Ministry of Justice and Public Security. The following candidates will be heard: CADE Councilor Ms. Pollyana Ferreira Silva Vilanova (Message 56/2017); and the one nominated to become a Superintendent-General Mr. Alexandre Cordeiro Macedo (Message 55/2017). Recalling that, after this hearing, the names must be approved in the Commission by secret ballot, and then go to the Plenary where there will be another vote and only then go to the Presidency for the appointment to be sanctioned.

After Saturday, the CAE will be able to discuss other bills, among which we highlight the Senate Bill (PLS) 330 of 2013 on protection, treatment and use of personal data.

The Joint Parliamentary Committee of Inquiry (CPMI) of JBS will meet twice this week, one on Tuesday, to hear the Federal Prosecutor of the Federal Public Ministry, Angelo Goulart Villela; and two delegates from the coordinators of operations involving JBS and J & F; and another, on Wednesday, to listen to the lawyer and informant of JBS, Mr. Francisco Assis e Silva; and the former president of CADE, Mr. Vinícius Marques de Carvalho.

The BNDES Parliamentary Inquiry Commission will also meet this week to discuss requests for public hearings related to the work of the Bank abroad and also with entrepreneurs Eike Batista and Joesley Batista.

Finally, meetings of the committees that analyze some of the provisional measures, such as: MP 787/2017, authorizing expropriation in João Neiva/ES, are scheduled to date; MP 789/2017, which amends legislation on Financial Compensation for the Exploration of Mineral Resources - CFEM; MP 790/2017, which updates the Mining Code; MP 791/2017, which creates the National Mining Agency; and MP 795/2017, on new taxation of the oil sector.