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Provisional Measure No. 2,043-21, Of 25 August 2000

Original Language Title: Medida Provisória nº 2.043-21, de 25 de Agosto de 2000

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Provisional Measure No. 2.043-21 of August 25, 2000.

Establishes criteria for the consolidation, assumption and refinancing, by the Union, of the furnishing public debt and others that specifies, of responsibility of the Municipalities.

The PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

Art. 1º Stay the Union authorized, until June 15, 2000, to assume the following obligations of responsibility of the Municipalities:

I-debt to domestic or foreign financial institutions, whose contracts have been firmed up to January 31, 1999, inclusive of that arising from transformation of debt-in-debt anticipatory operations founded;

II-debt to domestic or foreign financial institutions, arising from credit assignment firmed up to January 31, 1999;

III-internal furnishing debt constituted up to 12 percent of December 1995 or which, constituted after that date, connates simple rolling of previous furnishing debt;

IV-external furnishing debt constituted until December 12, 1995 or which, constituted after that date, consubstantive simple rollover of previous furnishing debt;

V-debt relative to budget revenue anticipation operations, contracted by January 31, 1999; and

VI-debt relative to operations of credit concluded with financial institutions in the quality of financial agent of the Union, of the States or of funds and government programs, regularly constituted.

§ 1º For effect of incisies I, III, V and VI will be considered only the registered operations, until January 31, 1999, at the Central Bank of Brazil.

§ 2º Powers to be still object of assumption by the Union the debts of member entities of the municipal public administration indirect, framed in the incisos I to VI of the caput and which are previously taken over by the Municipality.

§ 3º The service of the debts mentioned in the incisos I, II, V and VI of the caput of this article, unpaid and with maturity or any form of exigency that has occurred between January 31, 1999 and the date of signing of the refinancing contract may be refunded by the Union, observed the conditions set out in this Interim Measuring, except as for:

I-term: in up to one hundred and eighty months, with monthly and consecutive installments, winning the first on the date of signing of the refinancing contract and, the remaining ones, on the due dates stipulated for the rest of the debts refunded to the amparo of this Provisional Measure;

II-charges: equivalent to the average cost of capping the internal furnished debt of the Federal Government (SELIC rate), plus, in the event of inaddition, of moratory interest from 1% a.a., on the previously updated debtor balance;

III-extra-limit of the remaining debts refunded in the form of this Interim Measement and Law No. 8,727, of November 5, 1993; and

IV-minimum monthly amortization of R$ 1,000.00 (thousand reais), additionally to that provided for in § 1º of the art. 2º.

§ 4º shall not be covered by the assumption referred to in this article nor by the refinancing referred to in the following article:

I-the debts renegotiated on the basis of the Laws 7,976, of 27 of December 1989, and 8,727, of 1993;

II-the debts relating to the foreign debt object of renegotiation under the Brazilian Plan of Foreign Debt Financing (BIB, BEA, DMLP and the Paris Club);

III -the plots of the debts referred to in the incisies I, II, III, V and VI of the caput of this article which have not been disbursed by the financial institution until January 31, 1999; and

IV-the external debts attached to multilateral international bodies or foreign credit government agencies.

§ 5º The assumption that it treats this article will be preceded by the application of toll on the debtor balance of the obligations, as established by the Executive Power.

§ 6º Might still the Union, in the respective maturities, provide the necessary resources to the payment of the debt that treats the inciso IV of the caput of this article, incorporating the value paid to the refinancing debtor balance.

Art. 2º The debts taken by the Union will be refunded to the Municipalities, by observing the following:

I-term: until three hundred and sixty monthly installments and successive, calculated based on the PriceTable, winning the first one in up to thirty days after the signing of the contract and the following in equal days of the subsequent months;

II-interest: calculated and debiited monthly, at the rate of nine percent a year, on the previously updated debtor balance;

III-monetary update: calculated and debited monthly based on the variation of the General Price Index-Internal Availability (IGP-DI), calculated by the Getulio Vargas Foundation, or other index that comes to be substituted;

IV-appropriate guarantees that will necessarily include the binding of own revenues and the resources of which they treat the arts. 156, 158 and 159, inciso I,?b? and § 3º, of the Constitution, and the Supplementary Act No. 87 of September 13, 1996;

V-limit of commitment of thirteen percent of the Actual Net Income-RLR, for the effect of fulfillment of the obligations corresponding to the service of the refunded debt;

VI-in the event of the failure of the paced obligations, without prejudice to the remaining contractual cominations, the charges referred to in the incisos II and III will be replaced by the adjusted average rate of the daily financing ascertained in the Special Settlement and Custody System (SELIC), released by the Central Bank of Brazil, increased by one percent a year, raising by four percentage points the limit of the commitment set in the previous incistion;

VII-in case of impunctuality in the payment, without prejudice to the application of the provisions of the previous inciso, the value of the benefit will be updated by the adjusted average rate of the daily financing ascertained in the SELIC, released by the Central Bank of Brazil, and increased interest from a percent of a percent to the year, calculated pro-rata die; and

VIII-pass to the Municipalities of the desks applied to the obligations assumed by the Union.

§ 1º For the establishment of the term, the minimum of R$ 1,000.00 (thousand reais) will be observed for the initial value of the monthly redemptions of the refinancing contract.

§ 2º The elevation of the commitment limit will be applied from the subsequent installment to the unfulfillment.

§ 3º The additions to which the inciso VI refers are not subject to the RLR's commitment limit.

§ 4º The interest rate may be reduced to:

I-seven integers and five tenths per cent, if the Municipality depreciates extraordinarily value equivalent to ten per cent of the updated debtor balance of the debt assumed and refunded by the Union; and

II-six percent, if the Municipality depreciates extraordinarily value equivalent to twenty percent of the updated debtor balance of the debt assumed and refunded by the Union.

§ 5º The reduction to which it refers previous paragraph will be applied from the date of the integralization of the corresponding percentage of extraordinary amortization.

§ 6º Do not apply to the extraordinary amortization of which it treats § 4º of this article:

I-the provisions of the art. 5º; and

II-the limit of commitment of RLR.

§ 7º The liability debts of the Municipalities to the Union, except those relating to taxes and contributions, contracted by January 31, 1999, may be refunded in the form of this Provisional Measure.

Art. 3º At the discretion of the Municipality, the debt could be refunded at rates lower than that provided for in the inciso II of the art. 2º, provided that extraordinary amortization is effected within thirty months of the date of signing of the respective refinancing contracts.

§ 1º The rates of which they treat the caput will be from:

I-seven integers and five tenths per cent, if the Municipality commits itself to amortization extraordinarily equivalent to ten percent of the updated debtor balance of the debt assumed and refunded by the Union; and

II-six percent, if the Municipality commits to amortization of extraodynamic value equivalent to twenty percent of the updated debtor balance of the debt assumed and refunded by the Union.

§ 2º Fishing the term established in the caput and not being carried out in full the extraordinary amortization, the debtor balance will be recalculated, from the date of the signing of the contract, by changing the interest rate to:

I-nine percent, if the Municipality has committed itself in the form of the inciso I of the preceding paragraph;

II-nine percent, if the Municipality has committed itself in the form of the inciso II of the preceding paragraph and the extraordinary amortization has not reached ten percent of the updated debtor balance;

III-seven and a half percent, if the Municipality has committed itself in the form of the inciso II of the preceding paragraph the extraordinary amortization has reached ten percent of the updated debtor balance.

Art. 4º The public bonds issued after December 12, 1995, for payment of judicial precatories, pursuant to art. 33 of the Act of the Transitional Constitutional Provisions, they may be the object of the assumption and refinancing to which the preceding Articles relate, observing, in this hypothesis, that the monthly instalment of the refinancing contract will correspond, in the minimum, to the benefit that would be due in respect of these securities, calculated by the Table Price, for the term of one hundred and twenty months.

Single paragraph. It will not be covered by the assumption and the refinancing referred to in caput the furnishing debt in power of the issuer itself, even if via liquidity fund, or which has been placed on the market after December 31 of 1998.

Art. 5º For the purposes of application of the limit set forth in the inciso V of the art. 2º, may be deducted from the limit ascertained the expenses effectively carried out in the previous month by the Municipality, corresponding to the services of the following obligations by it titled:

I-debt refunded on the basis of Law No. 7,976, from 1989;

II-external debt contracted until January 31, 1999, even that object of restructuring under the Brazilian Plan of Foreign Debt Financing (BIB, BEA, DMLP and Paris Club);

III-parceling of debts firmed on the basis of the art. 58 of Law No. 8,212 of July 24, 1991 and in Law No. 8,620 of January 5, 1993;

IV-debts parceled to the Service Time Guarantee Fund-FGTS, the formalization of which has occurred until January 31 of 1999;

V-commission of the agent, incident on the payment of the provision arising from Law No. 8,727, of 1993; and

VI-debt relating to real estate credit refunded to the Amparo of Law No. 8,727, of 1993, and effectively assumed by the Municipality, deduced the revenues earned from those operations.

§ 1º Powers, still, be deducted the expenses regarding principal, interest and too much burden of the operations arising from the Law No. 8,727, of 1993, carried out in the month, excepted the agent's commission.

§ 2º The figures for the reduction of the benefit by the application of the limit referred to in this article or by the deduction referred to in the following article shall have your poster payment, on them focusing on the financial burdens of the refinancing contracts, for the time when the debt service compromises value lower than the limit.

§ 3º The limit of thirteen percent established in art. 2º is applicable only for the refunded debts pursuant to this Interim Measment.

§ 4º The eventual debtor balance resulting from the application of the commitment limit established in the form of this article, may be refunded under the same conditions as this Provisional Measure, in up to one hundred and twenty months, from the maturity of the last instalment of the refinancing contract.

§ 5º In the case provided for in the preceding paragraph, the benefits shall not be lower than the value of the last instalment of the refinancing.

Art. 6º The amount effectively disbursed by the Municipality in respect of the service of the debts mentioned in the incisos I, II, III and IV of the art. 1º, due between January 31, 1999 and the date of signing of the refinancing contract, may be deducted from the benefits calculated on the basis of Table Price, capped the monthly deduction at fifty percent of the value of the first provision.

Art. 7º For the purposes of this Provisional Measure, it is understood to be RLR the revenue realized in the twelve months prior to the month immediately preceding that in which it is being ascertained, noted the following:

I-will be excluded from revenue from credit operations, cancellation of remains to be paid, of disposal of goods, of transfers linked to any title, of voluntary transfers or donations received with the end specific to meet capital expenditure; and

II-will be computed the proceeds from the proceeds from the Excitement of the Tax on Relative Operations to the Circulation of Goods and on Prestations of Transport Services Interstate and Intercity and Communication intended for the granting of any tax or financial favors, including in the form of loans or financing, albeit by means of funds, financial institutions or other entities controlled by the public power, granted on the basis of the said tax and which results in a reduction or elimination, direct or indirect, of the respective burden.

Single paragraph. The surplus financial of the authorities and foundations, excluded those of the previdentiary character, will be considered as revenue realized for the purposes of calculating RLR.

Art. 8º The debt refinancing contract is expected to provide that the Municipality:

I-will only be able to issue new securities of the domestic or external municipal furnishable debt, after the full settlement of the debt object of the refinancing provided for in this Provisional Measure; And

II-will only be able to contract new debt, including Budget Revenue Anticipation operations, if the Municipality's total financial debt is lower than its annual RLR.

Single paragraph. Excluded from the gaskets referred to in the inciso II:

I-the contracting of credit operations instituted by federal programs, aimed at the modernization and skimping of the administrative machinery of the Municipalities;

II-the loans or financing from multilateral financial bodies and institutions of fostering and cooperation connected to foreign governments, which have a positive assessment of the funding agency, and to the National Bank of Economic Development and Social-BNDES, provided that contracted within the one-year period counted from June 30, 1999 and intended solely for the supplementation of ongoing programs.

Art. 9º The limit of commitment by RLR that it treats the inciso V of the art. 2º will be raised by two percentage points for the Municipalities that, as of 1º January 2000:

I-do not have adequate their personnel expenses to the limits set out in the legislation in force;

II -have not deployed pension contribution to the active and inactive servers, with average aliquot of, at minimum, eleven percent of total remuneration; and

III-have not limited their expenses with retirees and pensioners, in the form of the legislation in force.

Art. 10. Only by law will new compositions or extensions of debts refunded on the basis of this Provisional Measure be permitted, or, still, change to any title of the established refinancing conditions.

Art. 11. The Union shall assume the obligations arising from this Provisional Measure upon issuance of National Treasury securities, with characteristics to be defined by the Executive Power.

Art. 12. Revenue from the refunding payments granted to Municipalities, pursuant to this Interim Measure, shall be fully used for abatement of the public debt liability of the National Treasury.

Art. 13. Stands the Bank of Brazil S.A. designated financial agent of the Union for the purpose of concluding, monitoring and controlling the contracts for the assumption and refinancing of which it treats this Provisional Measure, by having the debtor the payment of the concernperson remuneration.

Art. 14. It shall be the Union authorised to carry out, through the Federal Economic Box, credit operations with the Municipalities, intended for programs for strengthening and modernizing the municipal administrative machinery, using for that purpose resources coming from loan contracts with international financial bodies.

Art. 15. It is provided to the Curator Council of the Service Time Guarantee Fund-FGTS, in the assumption of assumption by the Union of obligations concerning FGTS repasses, pursuant to this Provisional Measure, to authorize the financial officers to promote the return of the repast resources, under the originally established conditions, provided that sufficient guarantees are constituted.

Art. 16. The devices ahead of Law No. 9,639, of May 25, 1998, go on to invigorate with the following essay:

?Art. 1º The States, the Federal District and the Municipalities, until September 29, 2000, will be able to opt for the amortization of their debts to the National Social Insurance Institution-INSS, arising from social contributions, as well as those arising from ancillary obligations, up to the competence June 2000, upon employment of four percentage points of the Fund and Participation of the FPE and nine percentage points of the Participation Fund of Municipalities-FPM.

§ 1º The federative units mentioned in this article will be able to choose to include in that kind of amortization the debts, up to the competence June 2000, of their authorities and of the foundations by them instituted and maintained, hypothesis in which there will be addition three points in the FPE and three-point percentage of the FPM referred to in the caput.

§ 2º Mediant the employment of plus four percentage points of the respective Participation Fund, the federative units to which refers to this article will be able to choose to include, in this kind of amortization, debts constituted up to the competence June 2000 towards the INSS, of its public companies and mixed-economy societies, by retaining the updating criteria and incidence of statutory accruals applicable to companies of this nature.

§ 3º The inclusion of the debts of mixed-economy societies in the amortization provided for in this article will depend on authoritative state, district or municipal.

§ 4º The amortization term will be two hundred and forty months, limited to the percentage provided for in the caput of this article and in the art. 3º.

§ 2º In the application hypothesis of the percentage limits referred to in the preceding paragraph the remaining balance will be repaced to the end of the agreement.

§ 6º The consolidated debt in the form of this article subject to, from the date of consolidation, interest corresponding to the monthly change in the Long-Term Interest Rate-TJLP, vetoed the imposition of any other addition.

§ 7º The maturity of the amortization in the hypotheses of the § § 1º and 2º could not be less than ninety-six months, observing, in each case, the established percentage limits.? (NR)

?Art. 2º ..................................................................................................................................

Single paragraph. The parcelment concluded in the form of this article shall contain clause in which the State, Federal District or the Municipality consent to the retention of the FPE or the FPM and the repass to the INSS of the value corresponding to each monthly instalment on the occasion of the salary of this one.? (NR)

?Art. 5º The agreement concluded on the basis of the arts. 1º and 3º shall contain clause in which the State, the Federal District or the Municipality consent to the retention of the FPE and the FPM and the repass to the previdential municipality of the value corresponding to the current pension obligations of the month preceding that of the receipt of the their respective Participation Fund.

§ 1º To the plots of the current pension obligations settled in the form of the caput of this article, the provisions of the arts do not apply. 30, inciso I, point?b?, and 34 of Law No. 8,212 of July 24, 1991.

§ 2º Constant, still, in the agreement mentioned in this article, clause in which the State, the Federal District or the Municipality consent to the retention by the financial institutions of other state, district or municipal revenues deposited therein and the repass to the INSS of the remainder of the ascertained pension debt, in the hypothesis that the resources arising from the FPE and the FPM are not sufficient for the discharge of the amortization provided for in the art. 1º and the current pension obligations.

§ 3º The monthly value of current pension obligations, for the purpose of this article, will be ascertained on the basis of the respective FGTS and Information Recreation Guide to the Social Security-GFIP or, in the case of its non-submission within the statutory period, estimated, using the average of the last twelve competencies collected prior to the month of withholding, without prejudice to the collection or refund or compensation of any differences.

§ 4º The amortization referred to in art. 1º of this Act, increased from current pension obligations, could, monthly, commit up to fifteen percentage points of the Municipal Net Current Income Tax.

§ 5º The values due to the INSS to be amortized and not collected, each month, on the grounds of the application of the preceding paragraph shall be repaced at the end of the term of the agreement provided for in this article.

§ 6º For the purposes of the provisions of this article, it is understood to be Net Current Income Municipal the revenue calculated as per the Supplementary Law No. 101, of May 4, 2000.? (NR)

Art. 17. The benefits held by Social Security will be retuned, at 1º June 2000, in five comma eighties and one percent.

Single paragraph. For the benefits granted by Social Security, as of 1º July 1999, the readjustment pursuant to the caput will give itself in accordance with the percentage indicated in the Annex to this Provisional Measure.

Art. 18. The devices ahead of Law No. 8,212, of July 24, 1991, go on to invigorate with the following essay:

?Art. 38 ...................................................................................................................................

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§ 10. The agreement concluded with the State, the Federal District or the Municipality, shall contain, still, the clause in which these authorize, when there is the lack of payment of overdue debits or installment of installment agreements, the retention of the Fund of Participation of the States-FPE or the Participation Fund of Municipalities-FPM and the repass to the National Institute of Social Insurance-INSS of the value corresponding to the mora, on the occasion of the first transfer occurring after the communication of the municipality previdentiary to the Ministry of Finance.

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§ 12. The agreement provided for in this article shall contain clause in which the State, the Federal District and the Municipality consent to the retention of the FPE and the FPM and to the repass to the previdential municipality of the value corresponding to the current pension obligations of the month previous to the receipt of the respective Participation Fund.

§ 13. It shall, still, in the agreement mentioned in this article, clause in which the State, the Federal District or the Municipality consent to the retention by the financial institutions of other state, district or municipal revenue therein deposited and the repass to the INSS of the remainder of the ascertained pension debt, in the hypothesis that the resources coming from the FPE and the FPM are not sufficient for the discharge of the parceling and the current pension obligations.

§ 14. The monthly value of current pension obligations, for the purpose of this article, will be ascertained on the basis of the respective FGTS Recreation Guide and Social Security Information-GFIP or, in the case of its non-submission on the statutory deadline, estimated, using the average of the last twelve competencies collected prior to the month of retention provided for in § 12 of this article, without prejudice to the collection or restitution or compensation of any differences.? (NR)

?Art. 102. The values expressed in current currency in this Act will be readjusted at the same times and with the same indices used for the readjustment of the Social Security's continued benefit benefits.

Single paragraph. The readjustment of the values of the wages-of-contribution due to the change in the minimum wage will be discounted when the application of the indices to which the caput is concerned.? (NR)

Art. 19. The devices ahead of Law No. 8,213, of July 24, 1991, go on to invigorate with the following essay:

?Art. 41. The values of the maintenance benefits will be retuned, as of 1º June 2001, by rata, according to their respective start dates or their last readjustment, based on percent defined in regulation, observed the following criteria:

I-preservation of the real value of the benefit;

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III-annual update;

IV -price variation of necessary and relevant products for the afferition of the maintenance of the purchase value of the benefits.

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§ 8º For the benefits that have suffered majoring due to the raising of the minimum wage, the said increase should be discounted when the application of the caput, according to standards to be lowered by the Ministry of Welfare and Social Assistance.

§ 9º When of the apuration for setting the percentage of the benefit readjustment, indices may be used representing the variation of which treats the inciso IV of this article, released by the Brazilian Institute of Geography and Statistic-IBGE or of institution congenital of recognized notoriety, in the form of the regulation. " (NR)

" Art. 96. ...................................................................................................................................

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IV-the previous or later service time to compulsory membership of Social Security will only be counted upon compensation of the contribution corresponds to the respective period, with additional zero-comma moratory interest rate five per cent per month, capitalised annually, and fine of ten per cent. " (NR)

" Art. 134. The values expressed in current currency in this Act will be readjusted at the same times and with the same indices used for the readjustment of the values of the benefits. " (NR)

Art. 20. The Law No. 9,717 of November 27, 1998, passes the force with the following amendments:

" Art. 1º ....................................................................................................................................

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III-the contributions and resources linked to the Fund Previdences of the Union, the States, the Federal District and the Municipalities and the contributions of the civil and military personnel, active and inactive, and the pensioners, will only be able to be used for payment of pension benefits of the respective schemes, ressaving the administrative expenses set out in the art. 6º, inciso VIII, of this Act, observed the limits of spending set in general parameters;

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X-sealing of inclusion in the benefits, for effect of calculation and perception of these, of paid plots paid in due process of confidence function, of charge in commission or place of work.

§ 1º Stay vetted the constitution and maintenance of own provident regime social by the Municipalities that do not have directly raised revenue, in the form established by general parameters, higher than the revenue from constitutional transfers from the Union.

§ 2º The provisions of the previous paragraph does not apply to Municipalities that have constituted own social welfare arrangements intended to serve effective public servant server of effective office by the date prior to the publication of this Act.? (NR)

?Art. 1º-A. The public servant holder of effective office of the Union, the States, the Federal District and the Municipalities or the military of the States and the Federal District has been filming the own social welfare regime, when granted the organ or entity of another of the federation, with or without burden for the transferee, shall remain bound to the home regime.? (NR)

?Art. 2º .....................................................................................................................................

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§ 3º The Union, the States, the Federal District and the Municipalities will publish, up to thirty days after the closure of each bimequestrian, financial and budgetary demonstrator of the revenue and expense provided and accumulated in the ongoing financial year, explaining, as per general guidelines, in a way disaggregated:

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IV-the value of the total expenditure with civil and military personnel;

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VIII-the value of the financial balance of the social welfare scheme of social welfare.

§ 4º Municipalities with population prior to fifty thousand inhabitants may opt for publication, in up to thirty days after the closure of each semester, from the demonstrator mentioned in the preceding paragraph.

§ 5º Before proceeding to any revisions, readjustments or suitability of proceeds and pensions that entail increased expenses, the state's they should regularise the situation where the demonstrative of which it treats § 3º, with respect to the accumulated expenditure up to the bimaster, indicates the disfulfilling of the limits set in this Act.

§ 6º It is void of full duty the act which provokes increase in expenses would provide, without the observance of the limits provided for in this article.? (NR)

" Art. 2º-A. It shall be suspended, until December 31, 2001, the exigency of the provisions of the caput and in § 1º of the art. 2º of this Law. " (NR)

?Art. 5º .....................................................................................................................................

Single Paragraph. It is vetted the special retirement grant, under the terms of § 4º of the art. 40 of the Federal Constitution, until the supplementary federal law discipline matters.? (NR)

?Art. 7º .....................................................................................................................................

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IV-suspension of payment of the due values by the General Social Welfare Regime on the grounds of Law No. 9,796 of May 5, 1999.? (NR)

" Art. 9º ....................................................................................................................................

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III-the apuration of infractions, per server accredited, and the application of penalties, by own organ, in the cases provided for in the art. 8º of this Act.

Single paragraph. The Union, the States, the Federal District and the Municipalities shall provide the Ministry with Welfare for Social Assistance when requested, information on social welfare arrangements of social welfare and previdionary fund provided for in the art. 6º of this Law. " (NR)

Art. 21. The financial compensation between the social welfare schemes of the Union, the States, the Federal District and the Municipalities, in the hypothesis of reciprocal counting of contribution times, shall comply, in what couber, to the provisions of the Law No. 9,796, of May 5, 1999.

Art. 22. The Law No. 9,604 of February 5, 1998, passes the increased vigour of the following article:

" Art. 2º-A. The National Social Assistance Fund-FNAS will be able to transfer financial resources for the development of the continuing social assistance shares directly to private welfare entities, starting from the competence of the month of December of 1999, independent of the conclusion of agreement, convenium, adjustment or contract, in exceptional character, when the repass cannot be effected directly to the State, Federal District or Municipality in the wake of defaulting of these with the Social Security System.

Single Paragraph. The Executive Power shall regulate the continuing actions of social assistance, of which it treats this article, within thirty days, as of December 10, 1999. " (NR)

Art. 23. It is the National Institute of Social Insurance-INSS authorized to review the parcels paid in the period from October 5, 1988 to April 1993, arising from the benefits granted on the basis of Law No. 7,070 of December 20, 1982 using the same criteria, form, dates and indexes adopted for the retuning of the benefits of continued benefit maintained by Social Security.

Art. 24. The difference ascertained with the application of the provisions of the preceding article shall be for the beneficiaries until October 31, 2000.

Art. 25. They are convalidated the acts the acts practiced on the basis of the Provisional Measure No. 2.043-20, of July 28, 2000.

Art. 26. This Interim Measure shall come into force on the date of its publication.

Art. 27. The single paragraph of the art is revoked. 56 and the art. 101 of Law No. 8,212 of July 24, 1991, the § § 1º and 2º of the art. 41, the caput of the art. 95 and the arts.144 to 147 of Law No. 8,213 of July 24, 1991, the arts. 7º to 9º and 12 a to 17 of the Law No. 9,711 of November 20, 1998 and the inciso I of art. 6º of Law No. 9,717, of November 27, 1998.

Brasilia, August 25, 2000; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Waldeck Ornélas

ANNEX

RETUNING FACTOR OF THE BENEFITS GRANTED ACCORDING TO THEIR RESPECTIVE START DATES

DATA OF BENEFIT START

READJUSTMENT (%)

until June / 1999

5.81

in July / 1999

5.31

in August / 1999

4.82

in September / 1999

4.33

in October / 1999

3.84

in November / 1999

3.35

in December / 1999

2.86

in January / 2000

2.38

in February / 2000

1.90

in March / 2000

1.42

in April / 2000

0.95

in May / 2000

0.47