By Establishing Rules Aimed At Streamlining Public Spending Are Taught, Extraordinary Powers Are Granted And Other Provisions Are Issued

Original Language Title: Por la cual se dictan normas tendientes a la racionalización del gasto público, se conceden unas facultades extraordinarias y se expiden otras disposiciones

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Law 344 of 1996
(December 27)
Official Gazette No. 42,951, of December 31, 1996
By establishing rules aimed at streamlining public spending are taught, extraordinary powers are granted and issuing other provisions. Summary

Term Notes
ARTICLE 1o. Through this Act measures to rationalize and reduce public expenditure, to ensure financing and reallocate resources towards deficit sectors of state activity as a fundamental condition for maintaining financial equilibrium and ensure compliance with the principles of economy they are adopted, effectively and speed in the use of public resources in accordance with Article 209 of the Constitution.
Article 2.
. Reduce them resources Funds Co-financing in an amount equal to 0.999% of the current revenues of the Nation for the year 1997, bound for the participation of municipalities in these revenues to reach 18% mandated by Article 24 Law 60 of 1993. this Article shall not apply to co-financing projects identified in the 1997 budget decree

ARTICLE 3. Effective Notes

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ARTICLE 4. Add the following paragraph to the 3rd article. Law 141 of 1994:
PARÁGRAFO. In the case of the secondary road network are considered regional impact of secondary roads connecting Backbone Network and Tertiary connecting the municipalities of more than one department.

The 5th ITEM. Territorial institutions shall have directly or through contracts, interventorías techniques to monitor the implementation of projects that are ahead with its own resources from the National Royalties Fund.

ARTICLE 6o. Paragraph 1o. the 3rd article. Law 141 of 1994 will read:
For a regional investment project is eligible to be submitted by the joint or in associations territorial, or Indian reservations entities, individually or through the Regional Councils of Economic Planning and social, Corpes or entities performing their duties to the concept of the relevant ministry, which shall be issued within one month, and submission to the National Royalties Commission, according to regulations issued by the Government.
These projects should be identified as priorities in the corresponding Territorial Development Plan and be accompanied by the pre-investment feasibility studies or, as the case involving the Social, Economic and Environmental Impact. Effective Notes

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ARTICLE 7. The 4th paragraph. Article 9o. Law 141 of 1994 will read:
The Minister of Transport, who may delegate his participation in the Deputy Minister.

Article 8. Modify the first paragraph of Article 75 of Law 181 of 1995 which shall read as follows: PARAGRAPH 1.
. The resources of value added tax, VAT, to which this article refers shall be distributed as follows:
1. 40% for the Colombian Institute for Youth and Sport, COLDEPORTES.
2. 20% for departmental and district sports authorities.
3. 40% for municipal sports bodies.
PARÁGRAFO. The resources of value added tax, VAT, referred to in this article include sports programs for people with physical, psychic and sensory limitations.

Article 9. Resources from value added tax, VAT; of which Article 75 of Law 181 of 1995, they may be applied under the same investment programs for the settlement of the current Boards Sectionals and Municipal Administrators Sport as well as compensation for its public servants, in the application of articles 65, 68 and 86 of the Act.

ARTICLE 10. When the Higher Education Institutions receiving contributions from the General Budget of the Nation create, develop or reorganize academic programs that involve higher expenditures under the National Treasury must first obtain the respective certificate issued by the budgetary viability Directorate General of National Budget Ministry of Finance and Public Credit. Effective Jurisprudence

ARTICLE 11. The local authorities annually prepare and implement a plan of rationalization of human resources in the State education service catering with own resources located prosecutor. In developing this plan include two members elected by the respective Board of Education dealing Law 115 of 1994. Effective Jurisprudence

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PARÁGRAFO. The first rationalization plans which are arranged in this Article shall be made for the next fiscal year to the issuance of l this Act and, for once, the appointing authority may, subject concept and approval of the Board of corresponding Education , transfers resulting from the reorganization established in the plan.

ARTICLE 12. The National Contribution to Pension Solidarity Fund, as well as financial returns that have accrued as of December 31, 1996 may be used for the aid program for indigent elders dealing Article 257 and the first paragraph and paragraph of Article 258 of Law 100 of 1993

ARTICLE 13. Notwithstanding the conventional rights, and the provisions of Law 91 of 1989, after the publication of this law, people who are linked to the organs and entities of the State shall have the following scheme severance:
a) the final settlement of severance pay will be made on 31 December each year annuity or the corresponding fraction, without prejudice to be carried out on a different date for the termination of the employment relationship;
B) Les other applicable legal rules on severance pay, corresponding to body or entity which is linked not contrary to the provisions of paragraph a) of this Article shall apply.

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PARÁGRAFO. Severance regime contained in this Article does not apply the uniform of the Armed Forces and National Police personnel. Effective Jurisprudence

ARTICLE 14. The partial layoffs or severance advances public servants may only be recognized, liquidated and paid when there budget appropriation available for that purpose, subject to public budgets in the annual appropriations laws for this purpose are included and to reduce the lag between the amount of requests and acknowledgments and payments, where they exist. In this case, the lag should be reduced by at least 10% annually until eliminated. Effective Jurisprudence


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ARTICLE 16. Of the total resources corresponding to the contributions of payroll covered by Article 30 of Law 119 of 1994, the National Apprenticeship Service (SENA) will allocate 20% of such revenue for development programs competitiveness and productive technological development. SENA directly execute these programs through vocational training centers or may make agreements in cases where the participation of other entities or technological development centers required. PARAGRAPH 1.
. The Director of the Seine will be part of the National Council of Science and Technology and Director of Colciencias be part of the Board of SENA. PARAGRAPH 2.
. The percentage allocated for the development of competitiveness and productive programs of technological development in this article may not be financed with funds from the income tax for Equity (CREE). Effective Notes

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effect to the provisions of Article 128 of the Labour Code, as amended by Article 15 of Law 50 of 1990, it is understood that agreements between employers and workers on the payments do not constitute salary and payments for transport assistance are not part of the basis for settling the contributions towards the National Apprenticeship Service, SENA, the Colombian Family Welfare Institute, ICBF, Graduate School of Public Administration, ESAP, Board of Family Subsidies and contributions to the social security established by Law 100 of 1993.
public entities are directly addressing collective agreement and payment of family allowances, may continue doing it that way, without being required to do so through a box Family compensation.
In terms of this Article is fulfilled by the Public Entities here mentioned the obligation under Article 15 of Law 21 of 1982.

ARTICLE 18. Public servants who are entrusted by the temporary absence of the owner, to take different jobs for those who have been appointed, not be entitled to payment of remuneration set for employment who serves temporarily, while its holder is earning.

No territorial entity or agency of the State may temporarily entrust public servant to occupy senior positions without corresponding budget availability. The official who violates the provisions of this subsection shall be guilty of a disciplinary offense and shall be civilly liable for the effects thereof. Effective Jurisprudence

ARTICLE 19. Notwithstanding the provisions of Law 91 of 1989, 60 of 1993 and 115 of 1994, the public servant who becomes entitled to enjoy their old age pension or retirement may opt for such benefit or continue linked the service until he reaches the age of mandatory retirement. Academics can do up to ten years. The pension allocation start paying only after the termination of their services have occurred in these institutions. Effective Jurisprudence

ARTICLE 20. Addresses Sectional and Local Health District will have until the 1st. June 1997 to submit to the Ministry of Health's plan to expand coverage, improve quality, management and decentralization of dealing Articles 13 and 14 of Law 60 of 1993 and the transformation of its financing system supply subsidies for demand subsidies, indicating the criteria, operating mechanisms and monitoring and control scheme of the conversion process.
In any case, in the conversion plan shall provide that the resources from tax revenues, less resources for funding the Basic Plan, PAB care, and payment of employer contributions for severance and pension established in Law 60 of 1993 should be devoted to subsidies to demand a minimum percentage of 15% for the duration of 1997; 25% in 1998; 35% in 1999 and 60% from 2000.
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Subsidies under the General System of Social Security in Health, that Law 100 of 1993 referred to this Article shall be granted up to the amount of existing budgetary availability, according to the established resource substitution and other income in the law intended for these purposes. PARAGRAPH 1.
. Territorial entities not within the period specified in this article the conversion plan subsidies or do not meet the commitments stipulated therein will not receive contributions from the Solidarity Fund and Health Guarantee, Fosyga; may not be cofinanced with the Social Fund, FIS Investment; They may not receive funding from national programs operating or investment made by the Ministry of Health, or credits may be guaranteed by the Nation. When an officer contravenes this provision shall be liable to disciplinary action and fiscally, in accordance with the relevant standards. PARAGRAPH 2.
. The Ministry of Health refrain from issuing favorable technical concept to turn the set tax when decentralized directorates of Health do not comply with the minimum transformation embodied in this Article and shall proceed to transfer it to the competent authority. Similarly, refrain from approving the budgets of the institutions providing health services of non decentralized entities.

ARTICLE 21. In accordance with the provisions of article 5. and the second paragraph of Article 123 of Decree 111 of 1996 (Article 69 of Law 179 of 1994), the budget programming of the institutions providing health services and social state enterprises national or territorial order will be held projecting resources expected to collect because the value of services produced, at the rates determined by the National Government. Effective Jurisprudence

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. Once realized the salary increase approved by the Government for fiscal year 1997, operating costs and especially costs of plant personnel prestadoras public institutions of health and social state enterprises, they may only be increased taking into account the increase in sales of services, in accordance with embodied in this article.
. When expenses are created in excess of the appropriations force or on the basis of income calculated without taking the provisions of this Article in the lending public institutions of health services and social enterprises of the State and, for that reason, the budget of the entity would be in deficit, the legal representative and the head of budget and staff to approve these expenses will be disciplinary responsible and fiscally up to an amount equal to the amount of the deficit generated. Effective Jurisprudence

ARTICLE 22. The local authorities should take the necessary mechanisms to ensure fair competition in the membership of the Social Security System in Health and the provision of subsidized health services. The National Health adopt the measures to comply with the provisions of this Article.
PARÁGRAFO. ARS (Subsidized System Administrators), will hire at least 40% of its resources IPS officers. Effective Jurisprudence

ARTICLE 23. To ensure proper compliance with the principles of solidarity and equity of the General System of Social Security in Health, the National Government will regulate the necessary mechanisms to monitor and sanction evasion the General System of Social Security in Health.

ARTICLE 24. Create the Environmental Compensation Fund as an account of the Nation, without legal status, under the Ministry of Environment. Effective Jurisprudence

They will be income of the Fund twenty percent 20% of the resources received by the Regional Autonomous Corporations, except for Sustainable Development, for transfers of the electric sector and ten percent of the remaining 10% own revenues except the environmental percentage of taxes on real property received by them and those which have as their origin interadministrative contractual relations. Effective Jurisprudence

The resources of this fund is used to finance the operating budget, investment and debt service of the Regional Autonomous Corporations and Sustainable Development and will be distributed annually by the National Government in the decree liquidating the General Budget the nation. Effective Jurisprudence

The resources collected by the Fund will be transferred by the Ministry of Environment according to the distribution made by a committee chaired by the Minister or Deputy Minister of Environment and consisting of:
- 2 representatives of the Ministry of Environment including the Minister or his delegate.
- 1 representative of the Environmental Policy Unit of the National Planning Department.
- 1 representative of the Regional Autonomous Corporations.
- 1 representative of the Sustainable Development Corporations. Effective Jurisprudence

The Committee shall be convened by the Minister of the Environment.

ARTICLE 25. The Regional Autonomous Corporations and Sustainable Development, will finance their costs of financing, investment and debt service with own resources assigned to them by Law 99 of 1993.
The Government will make contributions national budget to the Regional Autonomous Corporations and Sustainable Development as its own by the contributions received from the Compensation Fund revenues are insufficient.

ARTICLE 26. The National Royalties Fund may finance the operating expenses of the investment projects of environmental protection implemented by the Regional Autonomous Corporations and Sustainable Development. Effective Jurisprudence

ARTICLE 27. Plants of staff of the Ministry of Environment and IDEAM will be rationalized based on a study carried out on the structure and necessary for the performance of their duties minimum plant.

ARTICLE 28. The environmental authorities charged services evaluation and follow-up services of the environmental license, permits, concessions, authorizations and other instruments of control and environmental management established by law and regulations.
The costs for collection of those services that are collected by the Ministry of Environment will enter a special subaccount Fonam and will be used to cover the costs of evaluation and monitoring to be incurred by the Ministry for the provision of these services.
In accordance with Article 338 of the Constitution for fixing the rates authorized in this article, the Ministry of Environment and environmental authorities apply the system described below. The rate include:

A) The total value of the professional fees required to carry out the proposed task;
B) The total value of per diem and travel expenses incurred professionals to study, shipping, tracking and / or monitoring of the environmental license, permits, licenses or other authorizations and control instruments and environmental management established by law and regulations;
C) The total value of laboratory tests or other studies and technical designs that are required for both evaluation and for monitoring.
The environmental authorities apply the following method of calculation: For the literal a) the number of professional / month or contractors / month will be estimated and categories and rates of salaries Ministry of Transportation contracts will be applied and in the case of International contractors, tariff scales for consulting contracts from the World Bank or UNDP; for the literal b) on an estimate of visits to the project area, the amount of necessary travel expenses, valued in accordance with the public transport fares and per diem scale the Ministry of Environment will be calculated; for the literal c) the cost of laboratory tests or other technical work will be incorporated in each case according to the specific quotes. The sum of these three costs a), b) and c) are subject to a percentage set annually by the Ministry of Environment for administrative expenses.
The fees charged by way of the provision of services assessment and environmental monitoring services, as applicable, shall not exceed the following ceilings:
1. Those with a value of two thousand one hundred and fifteen (2,115) monthly minimum wages have a maximum rate of zero point six percent (0.6%).
2. Those who have a more than two thousand one hundred and fifteen value (2,115) monthly minimum wages and less than eight thousand four hundred fifty-eight (8,458) monthly minimum wages have a maximum rate of zero point five percent (0.5%) .
3. Those with an excess of eight thousand four hundred fifty-eight (8,458) minimum monthly wage current value, have a maximum rate of zero point four percent (0.4%).
The environmental authorities will provide environmental services assessment and monitoring referred to this article through its staff or contractors. Revenues
permits import and export of species of wild fauna and flora Cites not those set out in the Convention on International Trade in Endangered Species of Wild Fauna and Flora Cites, the manufacturing and distribution systems marking species biodiversity and income earned from ecotourism will enter the National Environmental Fund, Fonam. Effective Notes

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ARTICLE 29. The Minister of Finance may recognize as public debt judgments and judicial reconciliations. When recognized, the address may be replaced and, if you have the acceptance of the beneficiary, by issuing bonds on the market conditions and the government to establish the terms of the Organic Statute of the budget.
When, as a result of a court decision, the Nation or one of the organs that are a section of the general budget of the Nation will be obliged to cancel a sum of money, prior to payment, it shall request the tax authority national do an inspection to the beneficiary of the court's decision, and should be obliged to pay in favor of the national Treasury, obligations owed to those contained in the judgments without any operation will be offset budget. Effective Jurisprudence

Revestir the President of the Republic of extraordinary powers for a period of 6 months, from the date of publication of this law to eliminate or merge, referring to the opinion of the Committee on Rationalization of Expenditure public agencies, bodies and agencies of the executive branch of the national order to develop the same functions or to treat the same subjects or inefficiently fulfill their functions, in order to rationalize and reduce public spending. Also have the power to separate the Special Administrative Unit Directorate of National Taxes and Customs, DIAN. PARAGRAPH 1.
. The exercise of the powers conferred by this article does not include the organs, agencies or entities to which the Constitution grants them autonomy regime.
. For the exercise of these powers the government will ask the Executive Boards of the respective committees of the Senate and House, the appointment of three senators and three representatives who advise on the own theme according to the functions of each. Effective Jurisprudence

ARTICLE 31. The National Government will reduce the budget for the coming years as well:
For the year 1997, the reduction will be equivalent to 60% of the amount of budget reserves and accounts payable formed on the budget 1996 exceeding 2% of the operating appropriations and 15% of the investment budget for that year.
For the year 1998, the reduction shall be 80% of the amount of budget reserves and accounts payable constituted on the 1997 budget which exceed the percentages indicated in the budget for that year.
For the year 1999 and beyond, the reduction will be equivalent to 100% of the amount of budgetary reserves and accounts payable formed on the budget of the previous year, exceeding the percentages indicated.
This article shall not apply to co-financing projects identified in the Decree budget settlement or territorial transfers that treats the Law 60 of 1993.
This Article shall not be applicable to items that contribute to care and debt relief coffee, pursuant to the third paragraph, second paragraph of Article 14 and Article 273 of the Law 223 of 1995 and the resources allocated for the PLANTE.
PARÁGRAFO. The National Government will make public spending cuts to which it is entitled under the macroeconomic targets agreed upon with the Board of the Bank of the Republic, considering its effects on productive activity, social investment, employment and balance exchange.

ARTICLE 32. The resources allocated to PLANTE Alternative Development Program will be executed in accordance with the regulations issued by the National Government. The feasibility and approval of investment projects is the sole responsibility of the Directorate of PLANTE program.

ARTICLE 33. Yields and financial surpluses generated by the housing allowance rural and urban social interest running the Agrarian Fund and the National Institute of Social Housing and Urban Reform INURBE will be applied to similar projects declared eligible by the respective institution, according to the order of filing.
The same procedure will apply to overdue subsidies and uncollected by applicants or beneficiaries.

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ARTICLE 35. The National Calamity Fund, created by the article 1o. Decree 1547 of 1984 and amended by Article 70 of Decree 919 of 1989, will function as a special account of the Foresighted SA Trust Company, Industrial and Commercial State, linked to the Ministry of Finance and Public Credit.
The budget contributions and donations received will remain in the account as a special reserve until fulfill the purposes established by law. This Fund, with the approval of the Advisory Board of the National Calamity Fund may meet operating expenses of the National Office for the Attention and Prevention of Disasters.
resources from Tax Registration and annotation and whose destination is specific to the health sector, in compliance with the provisions of Law 223 of 1995, as well as the twists funds from national co-financing to local authorities, will be handled in special accounts and in no case may form part of the common funds. Effective Jurisprudence

15% of current revenue resources of the Nation, which were drawn by the Nation to municipal local authorities for the duration of 1996 and which were not executed by the management contracts for Subsidized Regime according to article 214 of Law 100 of 1993, they should be rotated to different hospitals in the territorial entity prior billing of those linked to the system and lack of Social Security in Health.

ARTICLE 38. ACCOUNTING FOR GUARANTEES OF THE NATION. The guarantees granted by the Office to the payment obligations of other state entities are accounted for in a separate quota whose amount is initially set to the sum of four and a half billion dollars (US $ 4.5 billion) for both internal and external operations.

To use the quota guarantees authorized by the Ministry of Finance and Public Credit, prior concept of CONPES and the Commission of Public Credit is required.
This quota was initially affect the guarantees granted by the Nation under the quota of indebtedness of Law 185 of 1995. Amounts released due to the application of this law will increase by the same amount the credit quota. Effective Notes

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expenses for VAT and expenses incurred nationalization hydroelectric projects underway in which the nation has an interest of more than 90% will be financed with contributions from the national budget or through capitalization of the Nation .
10% of the net proceeds from the sale of participation, shareholding or not convertible bonds, decentralized national entities, except for one in the financial institutions will be invested, by government in implementing regional development projects in the same territorial entity in which the main activity of the company whose shares are disposed of is located.

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Suprímese the Corporation for the Sustainable Development of the Sierra Nevada de Santa Marta whose responsibilities will be assumed by the Autonomous Regional Corporation of Cesar, La Guajira and Magdalena in accordance with the jurisdiction over the Sierra Nevada de Santa Marta that corresponds to the municipalities that are part of the respective corporations.
As institutional coordination mechanism Sustainable Development Plan of the Sierra Nevada de Santa Marta créanse the Regional Environmental Council of the Sierra Nevada de Santa Marta and the Environmental Fund for Sustainable Development for the Sierra Nevada de Santa Marta, whose conformation and functions will be defined by the national government within six months from the effective date of this Act.
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ARTICLE 43. Adding paragraph of article 5. Law 141 of 1994, as follows:
17. The zero point five percent (0.5%) to the municipalities of Chimichagua, Chiriguaná Curumaní and Tamalameque (Cesar), equal to the conservation, preservation and decontamination of the Cienaga de Zapatoza parts.
Accordingly, the percentage to that paragraph will be referred 13.125%. Effective Jurisprudence

Article 44. This Law governs from the date of publication and changes in pertinent Law 60 of 1993, Law 181 of 1995 and Law 99 of 1993; repealing paragraph b) and paragraph of Article 27 and the 2nd paragraph. Article 221 and the contribution of the General Budget of the Nation referred to in clause 2. Article 258 of Law 100 of 1993
Publíquese, contact and enforcement.
Given in Santa Fe de Bogota, DC
The President of the Senate of the Republic,
The Secretary General of the Senate of the Republic,
The President of the Chamber of Representatives,
The Secretary General of the Chamber of Representatives, DIEGO VIVAS
published and execute.
Given in Santa Fe de Bogota, DC, on December 27, 1996.
Ernesto Samper Pizano.
The Minister of Finance and Public Credit, José Antonio Ocampo Gaviria

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