October 30th, 2017

Legislative Newsletter - Edition 065

Sigh and renewed strength in Brasilia

Following the refusal to continue the investigation of the accusation against President Michel Temer and two of his Ministers last week, Brasilia is taking advantage of the next few days to determine new priorities in the policy.

Legislative Newsletter - Edition 065

Following the refusal to continue the investigation of the accusation against President Michel Temer and two of his Ministers last week, Brasilia is taking advantage of the next few days to determine new priorities in the policy not only to reach the fiscal target, but also towards the 2018 elections.

Provisional measures (MPs, in the acronym in Portuguese) from President Temer are still pending to be analyzed by parliamentarians this week. Their objective is to reach the fiscal goal announced this August, with the aim of increasing the country's income through taxation on investment funds; of payroll reoneration; and raising the social security contribution of the public employees. The way in which these measures will be presented – by provisional measures - is controversial, since the Speaker of the Chamber of Deputies, Rodrigo Maia, has already commented that such proposals should be presented in the form of bills, so that there would be greater participation, discussion and possibility of change of the original texts.

However, the government is in a state of alert because, after the discussion of the complaint against the President last week, it has seen a decrease in its support basis, and delicate and controversial issues will be hard to pass, such as the Pension Reform that goes through an internal discussion in the Planalto and should be discussed later this year with a reduced text.

This week, however, the work of the Chamber of Deputies will be mild, due to the holiday next Thursday, 2nd, and also due to President Rodrigo Maia's official trip to the Middle East and Europe.

In the Senate, protests are expected due to the deliberation of the project that regulates the individual transportation of passengers by applications (PLC 28/2017); since, the Esplanada dos Ministérios in Brasília (the location of the Executive Power) currently holds taxis from various cities of the country, in support of the project.

Even with Maia's absence from the presidency, the House Plenary could analyze the following propositions: Provisional Measure 785/17, which reformulates the Student Financing Fund (Fies); Provisional Measure 795/17, which reduces the taxation of the petroleum sector; and PEC 70/11 (Proposition to Ammend the Constitution, in the Acronym in Portuguese), which amends the rules concerning provisional measures.

Among the committees of the Chamber, we highlight the draft included in the list of deliberations of the Commission on Constitution, Justice and Citizenship (CCJC) that defines as a crime the corruption practiced within the private sector (PL 3163/2015).
On Tuesday, the election of the vice-presidents of the Special Committee to discuss Bill 8456/2017 will be held. This Bill changes the tax burden, referring to payroll taxation, which last week elected Renato Molling (PP/RS) as President and Mr. Orlando Silva (PC do B/SP) as rapporteur.

In the Senate, the highlight  will be on the Plenary, since the bill regulating the individual transportation of passengers by Apps  should be discussed (PLC 28/2017). It is also possible that projects that remain on the agenda on Political Reform should be discussed, such the one establishing the mixed district vote in proportional elections (PLS 345/2017); and the proposed amendment to the Constitution that establishes that members of the Electoral Court may not have had party affiliation in the two years preceding the beginning of the exercise of the function (PEC 4/2017).

In the committees, there is a public hearing that will be held on Tuesday, 31, in the Committee on Economic Affairs (CAE) with the Minister of Finance, Mr. Henrique Meirelles, to provide clarifications on: a) Steps that the government is taking to avoid the return of Brazil to the Hunger Map of the United Nations - UN; b) Vetoes to Law 13,473/2017, which "Provides for guidelines for the preparation and execution of the Budget Law of 2018" (LDO for 2018), as well as for the announcement by the Government of changes in fiscal targets for 2017 and 2018. c) Privatizations announced by the Federal Government on August 23, 2017. d) Brazilian economy.

The Constitution and Justice Commission (CCJ) may decide on Wednesday from its list of bills, such as the Draft of Legislative Decree that supports art. 1 and the single paragraph of art. 2 of “Portaria 1,253 of November 12, 2013” of the Ministry of Health, which changes attributes of procedures in the Table of Procedures, Medications, Orthoses, Prostheses and Special Materials of the Public Health System (PDS 42/2015).

The Joint Parliamentary Committee of Inquiry (CPMI in the acronym in Portuguese) of JBS will hear the former director of the company, Mr. Ricardo Saud next Tuesday, 31st. The hearing has been rescheduled, as it should have occurred  last week.

Finally, meetings of the committees that analyze some of the provisional measures published are scheduled, such as: MP 788/2017, which deals with the restitution of amounts credited to a financial institution by a public entity in favor of a deceased person; and MP 792/2017, which creates a voluntary resignation plan for Executive servers.