Law Of Fiscal Coordination

Original Language Title: Ley de Coordinación Fiscal

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Tax Coordination Law

TAX COORDINATION LAW

Published in the DOF on December 27, 1978

Last reform published in the DOF on 11 August 2014

On the sidelines is a seal with the National Shield, which says: The United Mexican States. -Presidency of the Republic.

JOSÉ LÓPEZ PORTILLO, Constitutional President of the United Mexican States, to its inhabitants, known:

That the H. Congress of the Union has served to address the following

DECREE:

" The Congress of the United Mexican States, decrees:

TAX COORDINATION LAW

CHAPTER I

From States, Municipalities, and Federal District Participations in Federal Revenue

Article 1o.- This Law aims to coordinate the Federation's fiscal system with federal entities, as well as municipalities and demarcations. territorial, in order to establish the participation corresponding to their public finances in the federal income; to distribute these participations among them; to establish rules of administrative collaboration between the various tax authorities; to set up bodies in the field of tax coordination and to provide basis of their organisation and operation.

When in this Law the terms federative entities or entities are used, they will refer to the States and the Federal District.

The Secretariat of Finance and Public Credit will conclude an agreement with the entities that request to join the National Tax Coordination System that establishes this law. Such entities shall participate in the total of federal taxes and other income that this Act points out by distributing the funds that are established therein.

The financial information generated by the federative entities and the municipalities, regarding the fiscal coordination, should be governed by the principles of transparency and government accounting, in the terms of the General Government Accounting Act.

Article 2o.- The General Fund for Participations will be constituted with 20% of the federal participable collection that the federation obtains in an exercise.

The federal tax collection will be the one obtained by the Federation for all its taxes, as well as for the mining rights, diminished with the total of the returns for those contributions and excluding the concepts listed below:

I.          The income tax derived from contracts and allocations for the exploration and extraction of hydrocarbons referred to in the Hydrocarbon Revenue Act;

II. Income tax by way of wages and, in general, by the the provision of a subordinate personal service caused by the public servants of the Federation, the federative entities, the municipalities and the territorial demarcations of the Federal District, as well as their autonomous bodies and entities parastatals and paramunicipales;

III. The total collection that is obtained from the rights referred to by the Articles 268, 269 and 270 of the Federal Law of Rights;

IV. The incentives to be set in the administrative collaboration conventions in federal tax matters;

V. New car tax;

VI. The portion of the collection corresponding to the excise duty on production and services in which the entities participate in the terms of Article 3o. -A of this Law;

VII. The collection obtained in terms of the provisions of the articles 2., II, point B) and 2o. -A, fraction II, of the Law of Special Tax on Production and Services;

VIII.      The amounts that are distributed to the federal entities in accordance with the provisions of Articles 4 or 4 of this

;

IX.        The surplus of income that the Federation obtains for applying a rate of more than 1% to the income from obtaining prizes referred to in Articles 138 and 169 of the Income Tax Act, and

X.         The tax for hydrocarbon exploration and extraction activity provided for in Title IV of the Oil Revenue Act.

Additionally, the federal shareable collection shall be made up of 880,29% of the oil revenues of the Federal Government referred to in Article 2, XXX Bis, of the Hacendaria Federal Budget and Accountability Act, as well as the surplus income referred to in the third paragraph of Article 93 of the same law.

The General Fund for Participations will be distributed according to the following formula:

with

Where:

C1i, t, C2i, t, and C3i, t are the distribution coefficients of the General Fund of the entity i year t in which the calculation is performed.

Considering the C2 and C3 coefficients as revenue incentives.

Pi, t is the participation of the fund referred to in this article, of the entity i in the year t.

Pi, 07 is the fund's participation in this article that the entity i received in 2007.

FGP07 ,t is the growth in the General Fund of Participations between the year 2007 and the year t.

PIBi, t-1 is the official information of the Gross Domestic Product of the last year that the Institute has made known National of Statistics and Geography for the entity i.

PIBi, t-2 is the official gross domestic product information of the year before the one defined in the previous variable the National Institute of Statistics and Geography has been released for the entity i.

IEi, t is the information regarding the collection of taxes and local rights of the entity i in the year t contained in the last official public account and reported in the formats issued by the Secretariat of Finance and Public Credit.

For this purpose, all those that are collected at the state level will be considered taxes and local rights, as well as the pre-dial tax and water supply rights that register a cash flow.

The figures reported in the official public account of the aforementioned income, which are related to the grant of benefits, programmes, grants, or subsidies, even if they have a different name in the relevant local legislation, and which are addressed to a particular sector of the population or economy, will not be considered revenue for purposes of the determination of equity ratios.

In the case of rights, those contributions established in Law for the use or the use of the assets of the public domain of the entity, as well as the services provided by the entities in their public law functions, except where they are provided by decentralised bodies or unconcentrated bodies. However, the rights of the decentralised public bodies which provide services exclusive to the entities shall be considered.

The Permanent Commission of Fiscal Officials may approve other taxes and duties in respect of which it exists accurate and verifiable information, based on equity criteria among the federal entities.

IEi, t is a three-year moving average of growth rates in the collection of taxes and duties (s) of the entity i, referred to in the above variable.

is not the last official population information that the National Institute of Statistics has released Geography for entity i.

is the sum over all entities of the variable that you follows.

The entities must report the entire collection they make of each of their taxes and local rights, in the formats that the Secretary of Finance and Public Credit. The above formula shall not apply to the event that in the year of calculation the federal revenue is less than that observed in 2007. In that case, the distribution shall be carried out on the basis of the quantity actually generated in the year of calculation and in accordance with the effective coefficient which each institution received from that Fund in 2007. The Secretariat of Finance and Public Credit may ask the institutions for the information it deems necessary to verify the local collection figures submitted by the entities.

The General Fund will also be added an amount equivalent to 80% of the tax collected in 1989 by the federal entities, by way of the special tax bases. This amount shall be updated in the terms of Article 17-A of the Fiscal Code of the Federation, from the sixth month of 1989 to the sixth month of the year in which the distribution is carried out. This amount will be divided among twelve and will be distributed monthly to the entities, in the proportion that represents the collection of these bases of each entity, with respect to 80% of the collection by special bases of taxation in the year of 1989.

Additionally, the entities will participate in the accessories of the contributions that are part of the federal collection, which are indicated in the respective agreements. In the products of the Federation related to goods or forests, which the laws define as national, located in the territory of each entity, it will receive 50% of its amount, when it comes from the sale or lease of national or the exploitation of such land or national forests.

Likewise, the aforementioned entities attached to the National System of Fiscal Coordination will be able to celebrate with the Federation convention of administrative collaboration in the matter of the tax on new cars, of course in which the entity in question will receive 100% of the revenue collected by this tax, of which at least 20% will be allocated to the municipalities of the entity, which will be distributed among them in the form to be determined by the respective legislature.

Article 2-A.- In the performance of the contributions below, the Municipalities will participate, as follows:

I.- In the proportion of the federal collection participable in the following form:

0,136% of the federal revenue, to those municipalities adjacent to the border or to the littoral for which the entry into the country or the exit from the goods imported or exported is materially effected, provided that the The Federal Republic of the Republic of the Republic of Italy, the Federal Republic of Italy, the Federal Republic of Italy, the Federal Republic of Italy, the Federal Republic of Italy, the Federal Republic of Italy, the United States (a) the participation of the participating Member States in the case of the foreign origin in respect of which your legal stay in the country is not credited.

The distribution between the municipalities shall be carried out by applying the coefficient of participation to be determined for each of them according to the following formula:

CCiT = Bi/TB

Where:

CCIT is the coefficient of participation of the adjoining municipalities i in the year for which the calculation is made.

TB is the sum of Bi.

i is each entity.

Bi = (CCit-1) (IPDAIT-1)/IPAT-2

Where:

CCit-1     = Coefficient of shares in the municipality i in the immediate year preceding that for which the calculation is made.

IPDAIT-1 = Local collection of water and water rights in the municipality i in the previous year for which the calculation is made.

IPDAIT-2 = Local collection of the pre-dial and water rights in the municipality i in the previous second year for which the calculation is made.

The National Hydrocarbons Commission shall report monthly to the Secretariat of Finance and Public Credit the amounts and municipalities referred to in the preceding paragraph.

III.- 1% of the federal revenue collection, in the following form:

a) 16.8% will go towards forming a Municipal Development Fund.

b) The 83.2% will increase the Municipal Development Fund and only the entities that coordinate on rights will be responsible, provided that they strictly comply with the guidelines set out in Article 10-A of the Law.

The Municipal Development Fund shall be distributed among the entities according to the following formula:

Where:

is the distribution coefficient of 70% of the surplus Municipal Development Fund with respect to 2013 of the entity i in the year t in which the calculation is made.

is the distribution coefficient of 30% of the surplus Fund of Municipal Development with respect to 2013 of the entity i in the year t in which the calculation is made, provided that the government of that entity is responsible for the administration of the predial tax for account and order of the municipality.

For a state to check the existence of tax coordination in the predial tax, it must have been concluded an agreement with the municipality concerned and published in the official state media, on the understanding that the non-existence or extinction of such an agreement will cause it to be no longer eligible for the distribution of this portion of the Fund.

Fi, t is the participation of the fund referred to in this entity i item in the year t.

is the participation of the fund referred to in this article that the entity i received in 2013.

is the growth in the Municipal Development Fund between the year 2013 and the period t.

is the local collection of water and water rights, that record a cash flow, from entity i in the year t, reported in the formats issued by the Secretariat of Finance and Public Credit.

is the minimum value between the and the 2.

is the sum of the collection of predial in the municipalities that have agreed to the coordination of the recovery of the tax with the entity i in the year t and to record a cash flow, or of the territorial demarcations of the Federal District where appropriate, reported in the formats issued by the Secretariat of Finance and Public Credit.

is the last official population information given to be known by the National Institute of Statistics and Geography for the entity i.

is the last official population information given the National Institute of Statistics and Geography of the municipalities that have agreed to coordinate the collection of predial for the entity i.

States will give their municipalities the full amounts they receive from the Municipal Development Fund, according to what the local legislatures will establish, guaranteeing it is not less than what is raised by the concepts that are left to be received by the coordination in the field of rights.

The amounts corresponding to the Municipalities in the terms of fractions I and II shall be paid by the Federation directly to those municipalities.

The formula of the Municipal Development Fund will not be applicable in the event that in the year that is calculated, the amount of said Fund is lower than that obtained in 2013. In this case, the distribution will be carried out in relation to the amount actually generated in the year that is calculated and according to the effective coefficient that each entity received from the Municipal Development Fund in 2013.

Article 3o.- First and second paragraphs (They are repealed).

The Secretariat of Finance and Public Credit has the obligation to publish in the Official Journal of the Federation the delivery schedule, percentage, formulas and variables used, as well as the amount, estimated, to be received by each Federative Entity of the general fund and the municipal promotion fund, for each fiscal year at the latest by 31 January of the financial year in question.

In the quarterly reports on public finances that the Secretariat of Finance and Public Credit will give to the Chamber of Deputies, it will have to include the evolution of the tax collection. The amount of the shares delivered from each fund to the institutions in that period and, where applicable, the adjustment made at the end of each financial year.

Article 3-A.- Federative entities attached to the National Tax Coordination System will participate in the collection of the special tax on production and services, by the conduct of the acts or activities taxed with such tax on the goods listed below, in accordance with the following proportions:

I.- 20% of the collection if it is beer, refreshing drinks, alcohol, fermented alcoholic beverages, and alcoholic beverages.

II.- 8% of the collection if they are carved tobacco.

This participation will be distributed according to the percentage that represents the disposal of each of the goods referred to in this article in each federal entity, national disposal, and shall be settled in accordance with Article 7o. of this Law.

The municipalities will receive at least 20% of the participation that corresponds to the state.

Article 3-B.- The entities attached to the National Tax Coordination System will participate in 100% of the revenue collected from the income tax that the Federation is effectively informed, corresponding to the salary of the staff that provides or performs a subordinate personal service in the offices of the federal entity, the municipality, or the territorial demarcation of the Federal District, as well as as in their respective autonomous bodies and entities parastatals and paramuncipales, provided that the salary is actually paid by the entities mentioned in charge of their shareholdings or other local income.

For the purposes of the preceding paragraph, the proceeds of the Income Tax shall be considered, once the returns for that concept are discounted.

Also, in order for the provisions of the first paragraph of this article to apply, institutions must find out to the Federation 100% of the retention they owe make the Income Tax corresponding to the salary income that the entities pay out of federal resources.

The entities shall participate in their municipalities or territorial demarcations, 100% of the collection of the tax referred to in the first paragraph of this an article corresponding to the staff providing or carrying out a subordinate personal service in the municipality or territorial demarcation concerned.

Article 4o.- The Fund for Taxation and Collection will be made up of an amount equal to 1.25% of each of the participating federal collections exercise.

Entities that comply with the provisions of Article 10-A of this Law shall receive monthly advance payments for the Fund referred to in this Article; which shall amount to the average monthly amount corresponding to what the institution received in the 2013 financial year for the Fiscalisation Fund.

Additionally, on a quarterly basis, the resources of this Fund shall be distributed, reducing the quantities delivered by the advances indicated in the paragraph above, according to the following formula:

Where:

Ti, t is the entity i participation in the year t.

Ti, 13 is the participation that the entity i received in the year 2013, by way of the Fund of Taxation.

FOFIR13 ,t is the difference between the Fiscalization and Collection Fund of the year t and the Fiscalization Fund of the year 2013.

CVi, t are the virtual figures of the entity i in the year t that of to know the Service of Tax Administration.

PIBi, t-1 is the official information of the Gross Domestic Product of the last year that the National Institute of Statistics and Geography for the entity i.

VMi, t is the value of the goods seized or insured by the entity i in the year t that of to know the Service of Tax Administration.

Ri, t is the collection of taxes and local rights of the entity i in the year t contained in the last public account official and reported in the formats issued by the Secretariat of Finance and Public Credit.

ILDi, t corresponds to the collection of taxes and duties that are collected in the entity i in the year t, contained in the last official public account plus the Federal Holdings that have been received in that financial year, including incentives arising from the application of the Administrative Partnership Convention on Federal Fiscal Matters.

is not the latest official population information released by the National Institute of Statistics and Geography for the entity i.

is the sum over all entities of the variable that you follows.

For the purposes of the formula referred to in this article, all those collected at the State level, as well as the State level, shall be considered as local taxes and duties. pre-dial tax and water supply rights that record a cash flow.

The figures reported in the official public account of the aforementioned income, which are related to the granting of benefits, programs, grants, or subsidies, even where they have a different name in the relevant local legislation, and which are addressed to a particular sector of the population or economy, they shall not be considered as revenue for the purposes of determining the participations.

In respect of the rights, the contributions established in law shall be considered for the use or exploitation of the goods of the public domain of the entity; as well as the services provided by the entities in their public law functions, except where they are provided by decentralised bodies or unconcentrated bodies. However, the rights of the decentralised public bodies which provide services exclusive to the entities shall be considered.

The formula of the Fiscalization and Collection Fund shall not apply to the event that in the year of calculation the Fund is less than the total participation of the entities they have received in 2013 for the Fund of Fiscalization. In that case, the distribution shall be carried out on the basis of the amount actually generated in the year of calculation and in accordance with the effective coefficient that each entity has received by way of the Fiscalisation Fund in 2013.

The municipalities and territorial districts of the Federal District will receive at least 20% of the collection from the Fund for Taxation and Collection entities.

The Secretariat of Finance and Public Credit will be able to verify the compliance of the audit work carried out by the federative entities in the terms of this article.

Article 4-A.- The collection derived from the application of the quotas provided for in the article 2o-A, fraction II of the Law of the Special Tax on Production and Services, will be divided into two parts:

I. Of the total collected 9/11, it will be up to the federal entities according to the consumption carried out in their territory, according to the information that the Mexican Petroleum and the other permits for the sale to the public and the distribution of gasoline and diesel supplies to the Secretariat of Finance and Public Credit, supplemented, where appropriate, with the information of the Tax Administration Service and the Energy Regulatory Commission, provided they are Injuries to the National Tax Coordination System.

The resources to be obtained by the federative entities, municipalities and demarcations In accordance with the provisions of this section, territorial authorities may be affected in accordance with Article 9. of this Law, provided that the corresponding affectation in no case exceeds 25% of the resources that correspond to them.

Dealing with obligations payable in two or more fiscal years, for each year you may to be used for the service of the same, whichever is greater, between applying the percentage referred to in the preceding paragraph to the resources corresponding to the year in question or to the resources corresponding to the year in which the obligations have been contracted.

II. Of the total collected for the implementation of the quotas, 2/11 will be allocated to a Compensation Fund, which will be distributed among the 10 federal entities that, according to the latest official information from the National Institute of Statistics and Geography, have the lowest levels of Gross Domestic Product per capita. Mining and non-oil. This will be obtained from the difference between the total State Gross Domestic Product and the Minero State Gross Domestic Product, including all the items contained therein.

The Compensation Fund shall be distributed according to the following formula:

Where:

Ti, t is the transfer of entity i in year t.

PIBpci, t-1 is the last non-mining and non-oil per capita gross domestic product of the entity i built with the latest official data from the National Institute of Statistics and Geography.

FCt is the Compensation Fund in the year t.

is the sum of the variable that follows.

The Secretariat of Finance and Public Credit will find out to the entities the amounts to which it refers This article, within the month following the whole of these quantities by Mexican Petroleum, of the permits for oil treatment and refining activities, and by those who perform the importation into the country of gasoline and diesel.

The Permanent Commission of Fiscal Officials, in conjunction with the Secretariat of Finance and Credit It shall submit to the Congress of the Union an assessment of the results and performance of the Fund to which this fraction refers, as well as the desirability of preserving or modifying the rules of its distribution. Such assessment shall be submitted in January 2018 and thereafter every 5 years in case of no change in the rules of distribution.

Territorial municipalities and demarcations will receive at least 20% of the collection that corresponds to the federal entities in terms of this article. The distribution of the percentage referred to by the federative entities to the municipalities and territorial demarcations shall be carried out at least 70% according to the population levels.

The entities shall include in the publications referred to in the Article 6o., last paragraph of this Law, the resources that in terms of this article correspond to their municipalities, and in the case of the Federal District, to their territorial demarcations, as well as to credit their compliance to the Secretariat of Finance and Credit Public.

Article 4-B. The Hydrocarbon Extraction Fund will be made up of the resources transferred to it by the Mexican Petroleum Fund for Stabilization and the Development, in terms of article 91 of the Federal Law of Budget and Accountability.

The Fund referred to in this Article shall be distributed among those entities that are part of the oil and gas extraction classification defined in the last economic census carried out by the National Institute of Statistics and Geography, according to the following formula:

Where FEXHIt refers to the Hydrocarbon Extraction Fund in the year to be distributed.

is the coefficient for the extraction of oil and gas.

is the coefficient relative to the associated and non-associated gas production.

EXPi, t-1 is the gross extraction value of the hydrocarbons of the federal entity i according to the classification of extraction of oil and gas defined in the last economic census carried out by the National Institute of Statistics and Geography.

EXGi, t-1 is the associated and non-associated natural gas production volume of the entity i, in the previous year for the which is calculated, according to the Energy Information System.

is the sum of the variable that follows, about the entities which are part of the oil and gas extraction classification defined in the last economic census carried out by the National Institute of Statistics and Geography.

The Secretariat of Finance and Public Credit will find out the corresponding amounts on a monthly basis, on a provisional basis, and, where appropriate, shall make the appropriate annual adjustment, in accordance with the provisions to the effect that it issues.

The municipalities shall receive at least 20% of the resources received by the federal authorities, including the amounts collected in such a case by way of compensation.

The entities attached to the National Tax Coordination System which receive revenue from the Fund referred to in this Article may conclude with the Federation an agreement in order to ensure that the surplus revenue in respect of the estimated and calendarised in the applicable provisions is allocated to a percentage laid down in the said convention to the Extraction Stabilization Fund Hydrocarbons.

The Hydrocarbon Extraction Stabilization Fund will aim to compensate for the decrease in the administration of the resources obtained by the Fund Extraction of hydrocarbons, in respect of the estimated and calendarised for the fiscal year in question.

The Hydrocarbon Extraction Stabilization Fund will be subject to the operating rules that the Secretariat of Finance and Public Credit will issue, prior to the the opinion of the entities receiving revenue from the Hydrocarbon Extraction Fund.

Article 5o.- The equity calculations referred to in Articles 2o. and 2o. -A of this Law will be made for all entities, although some or several of them are not attached to the National System of Fiscal Coordination. The units that correspond to the entities that no longer be attached to the National Tax Coordination System shall be deducted from the General Fund for Participations, the Municipal Development Fund and the Fund for Taxation and Collection.

Article 6o.- The federal units that will receive the Municipalities of the total of the General Fund of Participations including their increases, will never be less than 20% of the amounts corresponding to the State, which shall be covered by them. The local legislatures will establish their distribution among the municipalities by means of general provisions, mainly based on the incentives collected and the principles of compensation, in the municipal part, considered in the article 2o. of this order.

The Federation will hand out the participations to the municipalities through the States; within five days of the one in which the State receives them; the delay will give rise to the to the payment of interest, to the rate of surcharges established by the Congress of the Union for the cases of payment in instalments of contributions; in case of non-compliance the Federation will make the direct delivery to the Municipalities discounting the participation of the amount which corresponds to the State, following the opinion of the Permanent Commission of Officials Prosecutors.

The municipalities and, in the case of the Federal District, their territorial demarcations, will receive at least 20% of the collection that corresponds to the State in the terms of the last paragraph of Article 2o. of this Law.

The shares shall be covered in cash, not in works, without any conditions and may not be subject to deductions, without prejudice to the provisions of the Article 9 of this Law. The governments of the entities, by 15 February at the latest, must publish in their Official Journal, as well as on their official website the delivery schedule, percentage, formulas and variables used, as well as the estimated amounts, of the units which the institutions receive and from which they have an obligation to participate in their municipalities or territorial demarcations. They shall also publish quarterly in the Official Journal, as well as on the official website of the government of the institution, the amount of the shares delivered and, where appropriate, the adjustment made at the end of each fiscal year. The Secretariat of Finance and Public Credit will publish in the Official Journal of the Federation the list of entities that do not comply with this provision. The above publications must be carried out in accordance with the guidelines issued by the Secretariat of Finance and Public Credit.

Failure to comply with the reporting obligations provided for in this article will be sanctioned in the terms of the liability legislation administrative of the public servers.

Article 7o.- The General Fund of Participations will be determined for each fiscal year of the Federation, which will provisionally make a monthly calculation considering the participable federal collection obtained in the previous immediate month. In the same way, the participations referred to in the Articles 2o. -A, fractions I and III, and 3o. -A of this Law.

Entities within the same month in which the calculation referred to in the preceding paragraph is made, shall receive the amounts corresponding to them under this Law, as a advances on account of holdings.

Every four months the Federation will make an adjustment of the stakes, making the calculation on the collection obtained during that period. The resulting differences will be settled within two months.

Not later than 30 days after the Federal Executive present the Public Account of the year before the Chamber of Deputies of the H. Congress of the Union for its review, the Federation shall determine the holdings corresponding to the collection obtained in the financial year, apply the amounts provisionally affected by the Funds and shall immediately make any settlement.

For the first five months of each financial year, the shares in the General Fund for Participations referred to in the Article 2 formula, as well as the which are set out in Articles 2o. -A, fractions I and III and 3o. -A of this Law, shall be provisionally calculated with the coefficients of the preceding immediate financial year, as long as the information necessary to calculate the new coefficients.

Article 8o.- For the purposes of the participations to which this Law refers and the incentives to be established in the agreements of administrative collaboration, the Entities, Municipalities and the Federation shall be the result of the determination and payment, which they have made of tax credits arising from the application of laws on federal income.

The Federation through the Secretariat of Finance and Public Credit will report under the guidelines that will be established, the behavior of the participations to the parties benefits.

Article 9o.- The participations that correspond to the Entities and Municipalities are inembargable; they cannot be affected by specific purposes, nor be subject to retention, except those corresponding to the General Fund of Participations, to the Municipal Development Fund and to the resources referred to in Article 4-A, fraction I, of this Law, which may be affected for the payment of obligations contracted by the Entities or Municipalities, with the authorization of the legislatures local and registered at the request of these Entities before the Secretariat of Finance and Public Credit in the Register of Obligations and Borrowings of Entities and Municipalities, in favor of the Federation, of the Credit Institutions that operate in territory national, as well as the natural or moral persons of Mexican nationality.

The obligations of the Municipalities will be registered when they have the guarantee of solidarity of the State, except when in the judgment of the Secretariat of Finance and Public Credit have sufficient holdings to respond to their commitments in accordance with the provisions of the Rules of Procedure of this Article.

Dealing with obligations arising from the issuance of securities, for the purposes of their registration in the Register of Obligations and Borrowings of Entities and Municipalities, shall be sufficient to provide evidence of such securities in accordance with the procedure laid down in the Regulation, in the understanding that within 10 working days following the registration of such securities, the Secretariat of Finance shall be notified and Public Credit, their circulation or placement; otherwise, proceed to the cancellation of the registration.

The Registration of Obligations and Borrowings of Entities and Municipalities in charge of the Secretariat of Finance and Public Credit will be published through the official website of Internet of the Secretariat of Finance and Public Credit and must allow the identification of the total percentage of federal units affected by each Entity and Municipality, as well as the destination defined in the instruments that formalize the an obligation under the terms laid down in the Regulation of this Article.

The Entities and Municipalities shall make payments for the obligations incurred in terms of this Article, through trusts or payment source vehicles or guarantee, without prejudice to the instruments and systems of registration established in its state debt laws. In any event, the Federative Entities shall have a single record of bonds and borrowings, and shall publish on a regular basis their information and that of their Municipalities with respect to the guaranteed obligations or those whose source of the payment are the units, at least on the official website of the government of the entity.

You shall not be subject to the provisions of the first paragraph of this Article, any compensation that may be required to be made to the Entities as a result of adjustments to equity or discounts arising from non-compliance with the targets agreed with the Federation on the administration of contributions. Likewise, compensation will be made between the federal units and incentives of the Entities and the Municipalities and the obligations they have with the Federation, when there is agreement between the interested parties or this law. authorize.

The Federal Government, through the Secretariat of Finance and Public Credit, and the governments of the entities that have acceded to the National System of Fiscal coordination, may conclude coordination agreements on accounting and public finance information.

In the regulation issued by the Federal Executive, the requirements for the registration of the obligations of Entities and Municipalities will be stated.

The above publications must be carried out in accordance with the guidelines for the approval of public information established by the Secretariat of Finance and Credit Public.

Article 9-A.- The Federation, through the Secretariat of Finance and Public Credit, and the states and municipalities where toll bridges operated by the first one, will be able to agree to create funds whose resources are used for the construction, maintenance, repair and extension of road works in those municipalities where such bridges are located or, where appropriate, for the construction of infrastructure or expenditure investment, of regional impact directly in the area where it is located the collection of the toll, without any such resources being allocated to current expenditure.

The contribution to the funds mentioned will be made by the state, by the municipality or, when it is agreed, by both, by 20% of the amount that the Federation will contribute, without the contribution of the excess of 25% of the total amount of gross revenue to be obtained by the operation of the toll bridge concerned. The federal contribution will be distributed as follows: municipalities 50% and states 50%.

In order for a municipality where there is a bridge or several to be subject to the participation of these funds, it must establish a retreading level of at least 50% plus one of the potential collection of its pre-dial tax in the immediate year prior to the signing of the agreement; in its absence, an improvement agreement can be agreed between the local Public Finance and the Federation, in order to be able to apply to the creation of these funds in the following fiscal year, provided that they meet the requirement of collected previously.

In the event that the level of collection, once the agreement is signed, is below 50%, the amount of resources will be reduced in proportion to the decrease percentage of the level of collection. If, at the time of signing the agreement again, the municipality is in this case, it will not be subject to the endorsement of the aforementioned agreement until it meets again with the required level of collection and until the next fiscal year.

The vehicle's vehicle capacity shall be subject to the applicable provisions of the Federal Law on Transparency and Access to Government Public Information.

The provisions of this article shall not apply to bridges managed by the 1936 trust fund of the Road Rescue Support Fund.

CHAPTER II

Of The National Fiscal Coordination System

Article 10.- Entities that wish to join the National Tax Coordination System to receive the units established by this Law will do so by means of a convention. to conclude with the Secretariat of Finance and Public Credit, which must be authorized or approved by its legislature. Also, with the authorization of the legislature, they will be able to terminate the agreement.

The Secretariat of Finance and Public Credit and the Government of the Entity concerned shall order the publication in the Official Journal of the Federation and in the Official Journal of the Entity, respectively, of the agreement concluded, by which the Entity adheres; of the act by which it is separated from the system; and of the decrees of the Legislature of the Entity for which such acts are authorized or approved, that will have effects from the day following the publication that is last performed.

Membership of the National Tax Coordination System should be carried out in full and not only in relation to some of the Federation's revenue.

Entities that do not wish to join the National Tax Coordination System will participate in the special taxes referred to in paragraph 5. of part XXIX, of article 73 constitutional, in the terms that set forth the respective laws.

Article 10-A.- Federative entities that choose to coordinate on rights, will not hold state or municipal rights in place for:

I.- Licenses, prior consent to the granting of such licenses, in general grants, permits or authorizations, or obligations and requirements that condition the exercise of commercial or industrial activities and the provision of services. Also, those resulting from allowing or tolerating exceptions to an administrative provision such as the extension of time, with the exception of the following:

a).- Build licenses.

b).- Licenses or permissions to make connections to public water and sewer networks.

c).- Licenses for fractionating or lotifying land.

d).- Licenses to drive vehicles.

e).- Card and card expedition for vehicle circulation.

(f).- Licenses, permits or authorizations for the operation of establishments or premises, whose turns are the disposal of alcoholic beverages or the provision of services which include the sale of such drinks, provided that they are made in whole or in part with the general public.

g).- Licenses, permits or authorizations for the placement of advertisements and posters or the carrying out of advertising, except for those made by television, radio, newspapers and magazines.

II.- Records or any act related to them, except for the following:

a).- Civil Registry

b).- Property and Commerce Registry.

III.- The use of public roads or the holding of goods on them. Vehicle parking rights, the use of the public road by street traders or with fixed or semi-fixed positions, or the use or holding of advertisements shall not be considered as falling within the provisions of this fraction.

IV.- Inspection and surveillance acts.

Local or municipal rights may not be differential considering the type of activity the taxpayer is engaged in, except for differential rights for the concepts referred to in points (a) to (g) of Part I and Part III.

Document certifications as well as the replacement of documents by loss or partial or total destruction shall not fall within the provisions of fractions I and II of this article. The concessions for the use or exploitation of goods belonging to the Federative Entities or to the Municipalities are also not included.

In no case shall the provisions of this article be understood to limit the powers of the States and Municipalities to require licenses, registrations, permits or authorizations, to grant concessions and carry out inspection and surveillance. For the exercise of these powers, no charge may be required, except as expressly stated in this article.

For the purposes of coordination with the Entities, they will be considered rights, even if they have a different denomination in the corresponding local legislation, the contributions that have the right characteristics under the Federation's Fiscal Code and the Federation Revenue Act.

They shall also be considered as rights for the purposes of this article, contributions or other charges, whatever their denomination, that have the property rights in accordance with the Fiscal Code of the Federation, even when they are charged for contributions, cooperations, donations, products, benefits or as a guarantee of payment for possible violations.

Article 10-B.- Entities may not coordinate on rights without prejudice to further injury to the National Tax Coordination System.

The Secretariat of Finance and Public Credit will make the declaratory of the Entities that do not have established or suspend the collection of the rights referred to in the previous article and which, therefore, are coordinated in this field, which will be published in the Official Journal of the Entity and in the Official Journal of the Federation.

When in the legislation of some entity or municipality, rights are established that contravene the provisions of the article above, the Secretariat of Finance and Public Credit will the knowledge of the entity concerned by the specific breach, so that within five days it shall express what is at its right. After that period, the Secretariat itself shall, where appropriate, issue the corresponding declaratory, which shall be published in the Official Journal of the Federation and shall begin to apply from the day following that of its publication, with no effect on the coordination in the field of rights in the latter date. In the event that the State is in breach of this declaration, it may come before the Supreme Court of Justice of the Nation in the terms of Article 12 of this Law.

Article 10-C.- The entities attached to the National Tax Coordination System, without any failure to comply with the agreements referred to in Article 10 of this Law or the provisions of Article 41 of the Law on the Value Added Tax, and in Addition to the taxes referred to in Article 43 of this last order, may establish local taxes on the sale or final consumption of the goods whose disposal is taxed by the Law of the Special Tax on Production and Services, provided that they are not goods whose lien is reserved for the Federation, the said the final sale or consumption takes place within the territory of the entity concerned and the following requirements are met:

I. No special treatments of any kind are established.

II. The applicable single rate is 4.5% on the disposal price of the good in question.

III. The base does not include taxes on aggregate or special value on production and services.

IV. The tax is not creditable against other local or federal taxes.

V. Do not explicitly and separately transfer the tax to people who acquire the goods. The transfer of the tax must be included in the corresponding price, without being considered as part of the sale price to the public, nor is it understood as a violation of prices or tariffs, including the officers.

VI. The tax is to be imposed at the time the revenue is actually collected and on the amount of revenue collected from them.

VII. The tax does not apply in two or more stages of the marketing process.

VIII. (Repeals).

The entities will be able to agree with the Federal Executive, through the Secretariat of Finance and Public Credit, that the local taxes that in terms of this Article, if applicable, establish the entity, be paid in the same income tax returns identified by entity.

The municipalities will receive at least 20% of the collection that corresponds to the federal entities in terms of this article. In the case of the Federal District, the distribution of these resources will be made to their territorial demarcations.

Article 10-D.- For the purposes of the provisions of Article 10-C of this Law, the following shall be:

I. The definitions set out in the Special Tax Act on Production and Services shall apply.

II. The sale or final consumption of the goods shall be deemed to be effected on the territory of an entity when the delivery of the goods is carried out on the territory of an entity. by the producer, packer, distributor or importer, as the case may be, for subsequent sale to the general public or consumer.

Article 10-E.- Entities that are attached to the National Tax Coordination System must carry a state vehicle registration, which will be integrated with the data on vehicles which are registered or registered by the taxpayer in the territorial division of each entity.

The vehicle and taxpayer data to be contained in the state vehicle registration shall be:

I. The vehicle identification number.

II. The essential characteristics of the vehicle: brand, model, model year, number of cylinders, origin or provenance, engine number, chassis number and number of plates.

III.           The name, name or social reason, address of the owner and, where applicable, the Federal Register of Taxpayers.

For the purpose of information exchange, the state vehicle registration shall be linked to the means or systems of the Secretariat of Finance and Public Credit that is determine by means of general provisions.

Article 11.- When any entity that has acceded to the National System of Fiscal Coordination violates the provisions of Articles 73 fraction XXIX, 117 fractions IV to VII and IX or 118 fraction I, of the Political Constitution of the United Mexican States or lack of compliance with the agreements concluded with the Secretariat of Finance and Public Credit, is, hearing the affected entity and taking into account the Technical opinion to be delivered by the Permanent Commission of Fiscal Officials, may reduce the entity's holdings by an amount equal to the estimated amount of the collection it obtains or the fiscal stimulus it grants, in contravention of those provisions.

The Secretariat of Finance and Public Credit will communicate this resolution to the entity in question, pointing out the violation that motivates it, for which the entity will have a correction. minimum period of three months. If the institution does not make the correction, it shall be deemed to cease to be attached to the National Tax Coordination System. The Secretariat of Finance and Public Credit shall make the corresponding declaratory, notify it to the entity concerned and order the publication of the same in the Official Journal of the Federation. Such declaratory shall take effect 90 days after its publication.

The amounts in which an entity's holdings are reduced, in the terms of this precept, will increase to the General Fund for Participations in the following year.

Article 11-A.- Persons who are affected by non-compliance with the provisions of the National Tax Coordination System and those of coordination in the matter of rights may be brought under the law of the Secretariat of Finance and Public Credit within forty-five working days following that in which the notification of the requirement has been made or, where appropriate, from the date of payment of the corresponding contribution. The application of non-conformity shall not be brought into question when it relates to the direct interpretation of the constitutional text.

The non-compliance resource may be submitted by a set of contributors who have a common representative. For these purposes the trade unions, chambers of commerce and industry and their confederations, will be able to serve as representatives.

The application of non-conformity shall be processed in accordance with the provisions on the revocation appeal, which establishes the Fiscal Code of the Federation, with the following modalities:

I.- The Secretariat of Finance and Public Credit shall hear the entity concerned.

II.- The Secretariat of Finance and Public Credit will request a technical opinion from the Fiscal Coordination Board.

III.- The deadline for resolving the appeal shall be one month from the date on which the Secretariat of Finance and Public Credit receives the opinion referred to in the previous section.

IV.- The resolution may order the Treasury of the Federation to return the amounts unduly charged to the units of the entity. These returns will be applicable to you as set out in the Federation's Fiscal Code.

The resolution may be challenged by the persons who promote the appeal to the Federal Court of Justice and Administrative Justice and by the entity concerned before the Supreme Court. Court of Justice of the Nation, in the terms established in Article 12 of this Law.

Article 12.- The Entity inaccordance with the declaratory for which it is deemed to cease to be attached to the National System of Fiscal Coordination may occur before the Supreme Court. Court of Justice of the Nation, pursuant to Article 105 of the Political Constitution of the United Mexican States and of the Organic Law of the Federal Judicial Branch, demanding the annulment of the declaration that has been given in accordance with the article of this Act.

From the admission of the claim the effects of the contested declaratory will be suspended for 150 days. The ruling of the Supreme Court of Justice of the Nation will produce effects 30 days after its publication in the Official Journal of the Federation.

The Supreme Court of Justice of the Nation will order the publication in the Official Journal of the Federation, both of the suspension of the effects of the contested declaration, and of the points of resolution of the ruling of the Supreme Court of Justice of the Nation.

In the event that the Secretariat of Finance and Public Credit infringes the legal provisions and conventions relating to tax coordination to the detriment of a federal entity, The latter may claim its compliance with the Supreme Court of Justice of the Nation, following, as applicable, the procedure laid down in the Regulatory Law of Sections I and II of Article 105 of the Political Constitution of the United States of America. Mexicans.

CHAPTER III

From Administrative Collaboration between Entities and Federation

Article 13.- The Federal Government, through the Secretariat of Finance and Public Credit, and the Governments of the Entities that have acceded to the National System of Fiscal Coordination, may conclude coordination agreements on the administration of federal income, which will include the functions of the Federal Register of Contributors, collection, oversight and administration, which will be exercised by the tax authorities of the Entities or the Municipalities when so it is expressly agreed.

In the conventions referred to in this Article, the revenue in question shall be specified, the powers to be exercised and the limitations thereof. Those conventions shall be published in the Official Journal of the Entity and in the Official Journal of the Federation, and shall have effect from the dates specified in the Convention itself or, failing that, from the day following that of the publication in the Official Journal of the Federation.

The Federation or the Entity may partially or fully terminate the conventions referred to in this precept, which shall be published and shall have effect in accordance with the previous paragraph.

In the conventions mentioned in this precept, the perceptions that the Entities or their Municipalities will receive will be fixed by the fiscal management activities they perform.

Article 14.- The tax authorities of the entities that are attached to the National Tax Coordination System and those of its Municipalities, if any, will be in the exercise of the powers referred to in the respective agreements or agreements, as federal tax authorities. Contrary to the acts they perform when acting in accordance with this precept, only the resources and means of defense that the federal laws establish shall proceed.

The Secretariat of Finance and Public Credit will retain the power to set the general criteria for interpretation and application of the institutions and their municipalities. tax provisions and the rules of administrative cooperation which they point out in the respective conventions and agreements.

Article 15.- The collection of federal revenue will be made by the offices authorized by the Secretariat of Finance and Public Credit or by the offices authorized by the entities, as set out in the respective conventions or agreements.

When the entity collects federal revenue, it will directly concentrate them on that Secretariat and will provide detailed collection. The Secretariat, also directly, shall make the payment to the institutions of the amounts corresponding to them in the Fund provided for in Article 2. and 2-A, fraction III and shall make available the relevant information. A permanent clearing procedure may be established, if there is agreement between the parties concerned.

The entities coordinated with the Federation in the field of new cars, will have to render proven by the totality of the collection that they carry out from each one of these taxes.

The lack of integer within the set deadlines will result in the respective amounts being updated by inflation and caused by the Entity or the Federation, interest at the rate of surcharges to be established by the Union Congress annually for the cases of payment entitlements to the term of contributions.

The Secretariat of Finance and Public Credit will be able to compensate the amounts not concentrated by the entity, with the amounts corresponding to the equity funds established by this Law.

Item 15 -A.- (Repeals).

CHAPTER IV

Of Coordination Matter Organizations

Article 16.- The Federal Government, through the Secretariat of Finance and Public Credit, and the governments of the entities, through their body, will participate in the the development, monitoring and improvement of the National Fiscal Coordination System, through:

I.- The National Meeting of Fiscal Officials.

II.- The Permanent Commission of Fiscal Officials.

III.- The Institute for Technical Development Technical Development (INDETEC).

IV.- The Fiscal Coordination Board.

Article 17.- The National Meeting of Fiscal Officials will be integrated by the Secretary of Finance and Public Credit and by the head of the organization of each entity. The Meeting will be co-chaired by the Secretary of Finance and Public Credit and the senior official present at the Meeting, of the entity in which the meeting takes place.

The Secretary of the Treasury and Public Credit may be replaced by the Deputy Secretary of Revenue, and the owners of the area would make the entities responsible for the person who designate.

Article 18.- The National Meeting of Fiscal Officials shall be held at least once a year at the place of the national territory chosen by its members. It shall be convened by the Secretary of Finance and Public Credit or the Permanent Commission of Fiscal Officials.

The call will indicate the issues to be addressed by the Meeting.

Article 19.- They will be the faculties of the National Meeting of Fiscal Officials:

I.- Approve the operating regulations of the National Meeting itself, the Permanent Commission of Fiscal Officials and its working groups, the Institute for Technical Development of Public Finance and the Fiscal Coordination Board.

II.- Establish, where appropriate, the ordinary and extraordinary contributions to be covered by the Federation and the entities for the maintenance of the organs mentioned in the Previous fraction.

III.- Fungir as general assembly of the Institute for Technical Development of Public Finance and approve their budgets and programs.

IV.- Propose to the Federal Executive through the Secretariat of Finance and Public Credit and to the Governments of the Entities through the holder of its tax authority, the measures it deems appropriate to update or improve the National Tax Coordination System.

Article 20.- The Permanent Commission of Fiscal Officials will be integrated according to the following rules:

I.- The Secretariat of Finance and Public Credit will consist of eight entities. It shall be co-chaired by the Secretary of Finance and Public Credit, which may be supplied by the Deputy Secretary of Revenue of that Secretariat, and by the holder of the tax authority chosen by the Commission among its members. The Secretariat of Finance and Public Credit will not participate in this election.

II.- The entities shall be represented by the eight that the effect chooses, which shall act through the holder of his/her body or the person designated by him/her supply.

III.- The entities that integrate the Permanent Commission will be chosen by each of the groups that are then expressed, and must represent them on a rotating basis:

GROUP ONE: Baja California, Baja California Sur, Sonora and Sinaloa.

GROUP TWO: Chihuahua, Coahuila, Durango and Zacatecas.

THREE GROUP: Hidalgo, Nuevo Leon, Tamaulipas and Tlaxcala.

GROUP FOUR: Aguascalientes, Colima, Jalisco and Nayarit.

GROUP CINCO: Guanajuato, Michoacán, Querétaro and San Luis Potosí.

SEIS GROUP: Federal District, Guerrero, Mexico and Morelos.

GROUP SEVEN: Chiapas, Oaxaca, Puebla and Veracruz.

OCHO GROUP: Campeche, Quintana Roo, Tabasco and Yucatan.

Based on an analysis of the socioeconomic and geographic characteristics of the federal entities, every 10 years, the Permanent Commission of Fiscal Officials will be able to propose to the National Meeting of Fiscal Officials a reclassification of the eight groups indicated in this fraction, which must be approved by unanimous vote of the latter.

IV.- The member entities of the Permanent Commission will last for two years and will be renewed annually by half; but they will continue in office, even after the end of the their period, as long as they are not chosen to replace them.

V.- The Permanent Commission shall be convened by the Secretary of Finance and Public Credit, by the Deputy Secretary of Revenue or by three of the members of that Commission. The call shall indicate the cases to be dealt with.

VI. He will be a permanent guest at the meetings of the Permanent Commission of Fiscal Officials, the President of the National Conference of Municipalities of Mexico, provided that the meetings do not correspond to working sessions with the exclusive participation of the officials referred to in section II of this article.

Article 21.- They will be the faculties of the Permanent Commission of Fiscal Officials:

I.- Prepare the National Meetings of Fiscal Officials and establish the issues to be addressed.

II.- Prepare the distribution projects for ordinary and extraordinary contributions to be covered by the Federation and the Entities for the support of the coordination, which will submit to the approval of the National Meeting of Fiscal Officials.

III.- Fungir as a board of directors of the Institute for the Technical Development of Public Haciendas and formulate reports of the activities of the Institute and its own Permanent Commission, which will submit to the approval of the National Meeting.

IV.- To monitor the creation and increase of the funds indicated in this Law, its distribution among the Entities and the annual liquidations of these funds Secretary of Finance and Public Credit, as well as to monitor the determination, liquidation and payment of participations to the Municipalities that under this Law must be carried out by the Secretariat of Finance and Public Credit and the Entities;

V.- Formulate the technical opinions referred to in Article 11 of this Law.

VI.- The others entrusted to it by the National Meeting of Fiscal Officials, the Secretariat of Finance and Public Credit, and the owners of the financial institutions of the entities.

Article 22.- The Institute for Technical Development Technical Development (INDETEC), is a public body, with legal personality and own patrimony, with the The following functions:

I.- Perform studies on the national tax coordination system.

II.- To make permanent studies of the tax legislation in force in the Federation and in each of the entities, as well as the respective administrations.

III.- Suggest measures to coordinate federal and local tax action to achieve the most equitable distribution of income between the Federation and the entities.

IV.- To perform the functions of the technical secretariat of the National Meeting and the Permanent Commission of Fiscal Officials.

V.- Act as a technical consultant for public finances.

VI.- Promote the technical development of municipal public finances.

VII.- Technical training and tax officials.

VIII.- Develop programs to approve the National Meeting of Tax Officials.

For the performance of the functions indicated, the Institute may participate in programs with other institutions or bodies that perform similar activities.

Article 23.- The organs of the Institute referred to in the previous article shall be:

I.- The CEO, who will have the representation of it.

II.- The general assembly that will approve its statutes, regulations, programs, and budget. The National Meeting of Tax Officials will serve as the Institute's general assembly.

III.- The board of directors that will have the powers that they point out in the statutes. He will serve as a board of directors of the Permanent Commission of Fiscal Officials.

Article 24.- The Fiscal Coordination Board is composed of representatives appointed by the Secretariat of Finance and Public Credit and the holders of the financial institutions. of the eight entities that form the Permanent Commission of Fiscal Officials.

CHAPTER V

From Federal Contribution Funds

Article 25.- Regardless of the provisions of Chapters I to IV of this Law, regarding the participation of States, Municipalities and the Federal District in the Federal revenues, as resources that the Federation transfers to the public finances of the States, Federal District, and, where appropriate, of the Municipalities, conditioning their expenditure to the achievement and Compliance with the objectives set out in this Law for each type of contribution, for the following Funds:

I. Educational Payroll and Operational Spending Contributions Fund;

II. Contribution Fund for Health Services;

III. Social Infrastructure Contributions Fund;

IV. Fund of Contributions for the Strengthening of Municipalities and Territorial Demarcations of the Federal District;

V. Multi-Input Fund.

VI.- Fund for Contributions to Adult and Technological Education, and

VII.- Public Safety Contributions Fund for States and the Federal District.

VIII.- Contribution Fund for the Strengthening of Federative Entities.

Such Funds shall be integrated, distributed, administered, exercised and supervised in accordance with the provisions of this Chapter.

The Fund for Contributions to the Educational Payroll and Operational Expenditure will be administered by the Secretariat of Finance and Public Credit, and the transfer of funds of this Fund shall be carried out in accordance with the terms set out in Article 26-A of this Law.

Article 26.- Under the contributions of the Educational Payroll and Operational Expenditure Fund that correspond to them, the States and the District Federal will be supported with complementary economic resources to exercise the privileges, in the field of basic and normal education, which are exclusively assigned to them, respectively, in Articles 13 and 16 of the General Law of Education.

The Federation will support the States with the necessary resources to cover the payment of personal services corresponding to the staff occupying the places transferred to States, within the framework of the National Agreement for the Modernization of Basic Education, published in the Official Journal of the Federation on 19 May 1992 and the agreements which were formalized with the States, which are registered by the Secretariat of Public Education, prior to validation of the Secretariat of Finance and Public Credit, in the System of Information and Educational Management referred to in Article 12, fraction X, of the General Law of Education. Also, registration in the System may include places of non-day teaching staff, according to the corresponding time allocation.

In the case of the Federal District, the Educational Payroll and Operational Spending Fund will include the resources corresponding to the federal places that are transferred to it, by means of the corresponding decentralization agreement and registered in the System referred to in the preceding paragraph.

The Fund shall also include resources to support federal entities to cover operating expenses related exclusively to the privileges referred to in this Article. the first paragraph of this article.

Article 26-A.- The exercise of the personal services resources referred to in the previous article shall be subject to the following:

I.          The Public Education Secretariat shall establish a payroll administration system, through which the personal service payments referred to in the previous article will be made. For this purpose, the Secretariat of Finance and Public Credit and Public Education will issue the provisions to be observed by the federal entities to register each payroll. The payroll management system shall identify at least the level, type and educational mode and key of the work centre to which the square corresponds.

The educational authorities of the federative entities shall provide the Secretary of Public Education all information required by this article in terms of this article;

II. The educational authorities of the federative entities shall, within the time limits and the conditions laid down in the provisions referred to in the previous fraction, record in the payroll administration system information on the movements of staff who modify each payroll.

The information that the educational authorities of the federative entities register in the payroll administration system shall correspond to that recorded in the Education Information and Management System referred to in Article 12, fraction X, of the General Law of Education;

III. Based on the information recorded in the payroll administration system, The Secretariat of Public Education will verify that this corresponds to the one contained in the Educational Information and Management System and will ask the educational authorities of the federative entities, the validation of the payroll corresponding to each one of them.

Once the information is validated by the educational authorities of the entities The Secretariat of Public Education will request the Treasury of the Federation, make the corresponding payment, in charge of the resources that correspond from the Fund to each federal entity;

IV. The resources corresponding to the payroll referred to in the previous article be paid, on behalf of and in order of the federative entities in their capacity, to their employees of the educational service, through electronic transfers to their respective bank accounts, unless they are located in localities in where there is no availability of banking services; in the latter The Secretariat of Finance and Public Credit will determine the form and means through which the corresponding resources will be delivered.

The Secretariat of Public Education will coordinate with the federative entities so that payroll payments are made only to staff with the Federal Register of Taxpayers with Homoclave, in accordance with applicable provisions;

V. Payments must be made for the liquid quantities that correspond to each employee, considering the amounts due in the corresponding payment period.

In any case, only retroactive payments will be made for up to forty-five days natural, as long as the attendance of the staff during that period in the respective square is credited, and the educational authority of the federative entity must specify the type of square and the period it comprises.

In cases where due to non-attributable to the staff the payment is not made, application by the person concerned and in accordance with the procedure laid down where appropriate, the non-payment shall be made within a period not exceeding 30 days;

VI. The Secretary of Public Education will retain and learn the amounts by law they are to be paid by way of taxes and social security in accordance with the applicable regulations; and other amounts which, where appropriate, are to be retained on the basis of the relevant instruction of the educational authority of the institution federative;

VII. For the purposes of checking the logs, the media records For the purposes of this Regulation, the Commission shall, in accordance with Article 1 (1) of Regulation (EU) No thereof, provide the following information: In the case of payments which, because there are no banking services in the corresponding locality, are carried out through other mechanisms, the verification of the fees will be carried out in terms of the Federal Law on Budget and Liability. Hacendaria and other applicable provisions.

Without prejudice to the foregoing, the educational authorities of the federal entities provide each of their employees with the respective payroll receipt, breaking down the corresponding payment concepts and discounts;

VIII. Federative entities will perform the records and report on the Federal contributions referred to in this article, in the terms of Articles 48 and 49 of this Act, and

IX. The Secretariat of Public Education will present the information via the Internet referred to in Article 73 of the General Government Accounting Act, in respect of the Fund referred to in this Article.

The resources referred to in the previous fractions may only be used in the fiscal year in which they were budgeted, exclusively for the payment of the concepts relating to personal services of the staff referred to in the previous article, including the increase in remuneration which, if any, is agreed in the terms of Article 27-A of this Law.

Dealing with the operational expenditure referred to in the last paragraph of Article 26 of this Law, the resources may be used for the purposes referred to in the paragraph previous. To this end, the Secretariats of Finance and Public Credit and Public Education will issue the guidelines to specify the destination of these resources.

Article 27.- The amount of the Educational Payroll and Operational Expenditure Fund will be determined each year in the Federation's Government Budget. corresponding, exclusively from the following elements:

I. The places registered in terms of Articles 26 and 26-A of this Law, with Fees corresponding to remuneration, including authorised salaries and benefits, federal taxes and social security contributions;

II. The budgetary extensions authorized to the Fund during the an immediate tax year prior to that which is budgeted, as a result of the wage increase which, if any, is agreed in terms of Article 27-A of this Law;

III. The creation of places, if any, is authorized.

No seats may be created for this Fund unless they are fully justified in terms of the General Law of the Teaching Professional Service and the other applicable provisions, as well as the resources necessary for its creation are expressly approved in the Budget of the Federation of the Federation of the Fiscal Year corresponding, and

IV. The operating expenses and the update to be determined for the exercise that is budgeted. The distribution of these resources will be carried out every year at the national level among the federal entities, according to the following formula:

GOi = GOi, 2013 + ((GOT - GO2013) MPi)

Where:

MPI=Hni/HN

GOT is the total amount of the resource that is intended for operational expenditure of the FONE.

GOI is the amount of the resource allocated to operational expenditure of the FONE for the federal entity i. MPi=Hni/HN

GOi, 2013 is the budgeted Operation Spend for the federative entity i in the PEF 2013.

GO2013 is the budgeted Operation Spend on the PEF 2013.

MPi is the participation of the federal entity i in the national registration potential in the year before for which the calculation is made. Potential enrollment means the number of children of basic education age.

Hni is the number of inhabitants between 5 and 14 years in the federal entity i.

HN is the number of inhabitants between 5 and 14 years old.

Article 27-A.- The Federal Executive and the governments of the Federative Entities, in accordance with the provisions of Article 25 of the General Law of Education, will be in the financing of spending on personal services for public education, as follows:

I. The Federal Executive will provide the necessary resources to cover the personal services referred to in Articles 26, 26-A and 43 of this Law;

II. The governments of the federal entities will cover, with their own responsibility income, income from personal services of places other than those mentioned in the previous fraction, including the increase in wages and benefits corresponding to those places;

III. Increases in the remuneration of staff occupying the places to be paid refer to Articles 26 and 26-A of this Law, will be agreed upon based on:

a) The availability of public resources approved in the Budget of the Federation;

b) The goals, goals, and results achieved from the Teaching Professional Service, and

c) The negotiation of the increase in remuneration, which will be carried out by of the employers, by a representation of the educational authorities of the federative entities; by the workers, a representation of their union, in terms of the labor legislation; as well as with the participation of the Secretariat of Public Education for the purposes of financing corresponds to the Federation in the terms of Articles 26 and 26-A of this Law and to monitor its consistency with the objectives of the Teaching Professional Service.

The increase in remuneration which, if any, is agreed upon, applicable to staff who refers to this fraction, must be published in the Official Journal of the Federation to produce its effects, as well as in the official means of dissemination of the federative entities, and

IV. The Secretariat of Public Education and the educational authorities of the entities They shall give access to the system established for the registration of educational staff, for consultation purposes, to the local and federal control, evaluation and audit bodies that so request. The information shall be made public in terms of the applicable transparency and accountability provisions.

Article 28.- Federal authorities and federal authorities, both in educational matters and those responsible for the financial year, will meet with a Not more than one year, in order to analyze alternatives and proposals that support greater equity and promote the best use of the resources transferred to the federative entities for basic education and, where appropriate, normal.

To this end, the State and Federal District governments will provide the Federal Executive with the Secretariat of Public Education, financial and operational information. to be required for the best accomplishment of the tasks that in the planning, programming and evaluation of the National Educational System, correspond to the Federation.

Article 29.- With contributions from the Health Services Contributions Fund, the States and the Federal District will receive the resources. They will support them to exercise the powers that in the terms of Articles 3o., 13 and 18 of the General Health Law are responsible for them.

Article 30.- The amount of the Contributions Fund for Health Services will be determined each year in the Federation Budget of the corresponding Federation, exclusively from the following elements:

I. For the inventory of medical infrastructure and staff templates, used for the calculations of the budgetary resources transferred to the federative entities, on the occasion of the subscription of the Coordination Agreements for the Comprehensive Decentralization of the respective Health Services, including the fees corresponding to federal taxes and social security contributions;

II. For the resources that are charged to the Personal Services for the purposes of the Federation's Budget of Eglings that have been transferred to the federal entities during the immediate fiscal year preceding that year. which is budgeted to cover expenditure on personal services, including budgetary extensions which have been authorised in the course of that financial year by way of wage increases, benefits as well as those measures which, where appropriate, are required to integrate the tax year which is budget;

III. For the resources that the Federation has transferred to the federal entities, during the immediate fiscal year preceding the one that is budgeted, to cover the expenditure of operation and investment, excluding any investment expenses in infrastructure and equipment that the Federation and the corresponding entities agree as not to be eligible for budget in the following year and for the resources that for the same purposes are approved in the Budget of the Federation in addition to first; and

IV. For other resources which, if any, are expressly provided for in the Federation's Government Budget to promote equity in health services, which shall be distributed in accordance with the provisions of the following Article.

Article 31.- For the distribution of the resources referred to in section IV of the previous article, the following resource allocation formula will be applied, where represents the sum corresponding to the federative entities and the sub-index i refers to the i-th federative entity.

to Fi = a (M* Ti)

Where:

M = The amount approved in the Federation's Government Budget referred to in Article 30 (IV).

Fi = Amount corresponding to the i-th federative entity of the total amount M.

Ti = Percentage distribution for the i-th federative entity of the total amount M.

For the calculation of Ti from the i-th federative entity the following procedure applies:

Ti = Di/DM

Where:

DM = Total amount of deficit in federal entities with total expense less than the minimum accepted.

Di    = Total amount of the deficit of the i-th federative entity with total expenditure below the accepted minimum.

Where:

Di     = max [(POBi * (PMIN * 0.5 * (REMi + IEMI))-Gti), 0]

Where:

POBi = Open population at i-th federative entity.

PMIN = Minimum per capita budget accepted.

REMi = Standardized mortality ratio of the i-th federative entity.

IEMI   = Standardized index of marginalization of the i-th federative entity.

Gti      = Federal total expenditure for the open population to be exercised in the federal entities without including M of the corresponding year.

The Secretariat of Health shall release annually, within the National Health Council, and no later than 31 January, in the Official Journal of the Federation, the figures corresponding to the variables in the previous formula resulting from the official information systems.

Article 32.- The Social Infrastructure Contributions Fund will be determined annually in the Federation's State Budget with federal resources. for the purposes of reference only, for the purposes of reference, 2,5294% of the participating federal collection referred to in Article 2o. of this Law, according to the estimation of the law itself, based on what the effect of the Law of Revenue of the Federation for that exercise establishes. Of the total federal collection, 0.3066% will correspond to the Fund for the Social Infrastructure of the Entities and 2,2228% to the Fund for the Municipal Social Infrastructure and the Territorial Demarcations of the District Federal.

This fund will be entered monthly in the first ten months of the year equal to the entities through the Federation and, to the municipalities and demarcations territorial through the entities, in an agile and direct manner, without any more limitations or restrictions, including those of an administrative nature, than those corresponding to the purposes set out in Article 33 of this Law.

Article 33.- The federal contributions to the Social Infrastructure Contributions Fund receive the entities, the municipalities and the Territorial demarcations shall be exclusively used for the financing of works, basic social actions and investments that directly benefit the population in extreme poverty, localities with high or very high levels of social lag according to What is foreseen in the General Law of Social Development, and in the areas of care priority.

A. The resources of the Social Infrastructure Contributions Fund For the following items:

I. Contributions to the Municipal Social Infrastructure and the Territorial demarcations of the Federal District: drinking water, sewerage, drainage and latrines, urbanization, rural electrification and poor colonies, basic infrastructure of the health and education sector, housing improvement, as well as maintenance of infrastructure, as indicated in the catalogue of actions established in the Guidelines of the Fund to be issued by the Secretariat for Social Development.

II. Social Infrastructure Fund for Entities: works and actions that benefit preferably to the population of the municipalities, territorial demarcations and localities that present higher levels of social lag and extreme poverty in the entity.

Likewise, the works and actions to be carried out with the resources of the fund This article should be oriented preferably according to the annual report of the situation of poverty and social lag of the entities and their respective municipalities or territorial demarcations to be carried out by the Secretariat of Social Development, which must be published in the Official Journal of the Federation at the latest last working day of January.

In the case of municipalities and territorial demarcations, they may be available of up to 2% of the total resources of the Fund for the Municipal Social Infrastructure and the Territorial Demarcations of the Federal District that correspond to them for the implementation of an Institutional and Municipal Development Program Territorial demarcations of the Federal District. This program will be agreed upon by the Federal Executive through the Secretariat of Social Development, the Government of the corresponding entity and the municipality or territorial demarcation in question. The resources of this program may be used for the elaboration of projects in order to strengthen the capacity of management of the municipality or territorial demarcation, as indicated in the catalogue of actions established in the Guidelines of the Fund to be issued by the Secretariat for Social Development.

Additionally, the entities, municipalities or territorial demarcations may be allocate up to 3% of the resources corresponding to them from this Fund to be applied as indirect expenditure for the verification and monitoring of the works and actions to be carried out, as well as for the carrying out of studies and the evaluation of projects that comply with the specific purposes referred to in this Article.

B. The Secretariat for Social Development, the entities and the municipalities or territorial demarcations and the Secretariat of Finance and Public Credit will have the The following obligations:

I. From the Social Development Secretariat:

a) Publish the Annual Report on the Situation of Poverty and Social entities and their respective municipalities or territorial demarcations, on the basis of what is established by the General Law on Social Development, for the measurement of poverty, and

b) Providing training to the entities and their respective municipalities or territorial demarcations, on the functioning of the Fund of Contributions for the Municipal Social Infrastructure and the Territorial Demarcations of the Federal District, of the Fund of Contributions for the Social Infrastructure of the Entities and of the Municipal and Municipal Institutional Development Program Territorial demarcations of the Federal District, in terms of the provisions of the Guidelines of the Fund to be issued by the Secretariat for Social Development;

II. From entities, municipalities, and territorial demarcations:

a) Making the knowledge of its inhabitants, at least through the official page of The Internet of the federal entity according to the guidelines of financial public information online of the Council of Accounting Harmonization, the amounts they receive, the works and actions to be carried out, the cost of each, their location, goals and beneficiaries;

b) Promote the participation of the beneficiary communities in their destination, application and monitoring, as well as in the programming, implementation, monitoring, monitoring and evaluation of the works and actions to be carried out;

c) Inform your inhabitants about the progress of the exercise of resources on a quarterly basis and at the end of each financial year, on the results achieved; at least through the official website of the federal entity, in accordance with the public information guidelines of the National Council of Accounting Harmonization, in the of the General Government Accounting Act;

d) Provide the Social Development Secretariat with information on the Use of the Social Infrastructure Contribution Fund is required. In the case of municipalities and territorial demarcations, they shall do so through the entities;

e) Procurating that the works that you make with the resources of the Funds are compatible with the preservation and protection of the environment and to promote sustainable development;

f) Report quarterly to the Secretariat of Social Development, through its State delegations or equivalent authorities in the Federal District, as well as the Secretariat of Finance and Public Credit, the monitoring of the use of the Fund's resources, in the terms of Articles 48 and 49 of this Law, as based on the annual report on the situation of poverty and social the entities and their respective municipalities or territorial demarcations. Furthermore, the entities, municipalities and territorial demarcations shall provide the additional information requested by that Secretariat for the monitoring and monitoring of the resources, and

g) Publish on your official website the works funded from the resources of This Fund. Such publications shall contain, inter alia, the information of the contract under which it is concluded, quarterly progress reports and, where appropriate, evidence of conclusion.

The municipalities that do not have an official website, will agree with the government of the corresponding federative entity, so that it publishes the information for the municipality, and

III.         From the Secretariat of Finance and Public Credit, generate a geo-referenced system to disseminate through its official website, the works in each municipality or territorial demarcation financed with the resources from this Background. Such a system shall contain the information of the contract under which it is concluded, quarterly progress reports and, where appropriate, evidence of conclusion.

Article 34.- The Federal Executive, through the Secretariat of Social Development, will distribute the Fund for Social Infrastructure Contributions among the entities, according to the following formula:

Fi, t=Fi, 2013 + ΔF2013 ,t (0.8zi, t + 0.2ei, t)

Where:

And the calculation variables are defined as follows:

Fi, t= entity i FAIS Monto in year t.

Fi, 2013 = Monto del FAIS of the entity i in 2013, in the case of the Federal District said amount will be equivalent to 686,880,919.32 pesos.

DF2013 ,t= FAISt-Fi, 2013, where FAISt corresponds to the Fund's resources in the t calculation year.

zi, t= The participation of the entity i in the national average of the population's deficiencies in extreme poverty Recently published by the National Council for the Evaluation of Social Development Policy at year t.

= Number of average shortages of the population in poverty extreme in the most recent entity published by the National Council for the Evaluation of Social Development Policy at year t.

= Population in Extreme Poverty of the entity i, according to the most recent information provided by the National Council for the Evaluation of Social Development Policy; and

= Population in Extreme Poverty of the entity i, according to immediate information prior to the most recent information provided by the National Council for the Evaluation of Social Development Policy.

The formula of the Social Infrastructure Contribution Fund shall not apply to the event that in the year of calculation the Fund is less than the participation that the whole of the States received in 2013 for the same Fund. In this case, the distribution shall be carried out on the basis of the quantity actually generated in the year of calculation and in accordance with the effective coefficient which each State has received for the Infrastructure Contribution Fund. Social in 2013. If this is true, the Federal District will receive the ratio of 686,880,919.32 pesos to be received from Fi, 2013.

For the purpose of the annual formulation of the Draft Budget of the Federation, the Federal Executive, through the Secretariat of Social Development, publish, by 15 August of each year at the latest, the variables and sources of information for the calculation of this formula in the Official Journal of the Federation and shall disclose the percentages of participation to be allocated to each entity.

Article 35.- The entities will distribute the resources of the Fund for the Municipal and Social Infrastructure between the municipalities and the territorial demarcations. Territorial demarcations of the Federal District, with a formula equal to the one mentioned in the previous article, that emphasizes the redistributive nature of these contributions towards those municipalities and territorial demarcations with greater magnitude and depth of extreme poverty. To do this, they will use the latest extreme poverty information at the municipal level and territorial demarcations, as referred to in the previous article, published by the National Council for the Evaluation of Social Development Policy.

In order to support entities in the application of their formulas, the Secretariat of Social Development shall publish in the Official Journal of the Federation, at the latest the first ten days of the fiscal year concerned, the variables and sources of information available at the municipal level and the territorial demarcations for each entity.

The entities, based on the provisions of the preceding paragraphs and prior agreement with the Secretariat of Social Development, will calculate the distributions of the Fund for the The Municipal Social Infrastructure and the Territorial Demarcations of the Federal District corresponding to its municipalities and territorial demarcations, and must be published in their respective official organs of dissemination, at the latest by 31 January of the applicable tax year, as well as the formula and its respective methodology, justifying each element.

No later than 25 January of the fiscal year in question, the conventions referred to in the preceding paragraph shall be sent to the Secretariat for Social Development, through their State Delegations or equivalent instance in the Federal District, once they have been subscribed by them and by the government of the corresponding entity, in order for the Secretariat to publish the agreed distributions in its official website no later than 31 January of that financial year fiscal.

If the entities so require, the Social Development Secretariat may contribute to the calculation of the distribution of the Social Infrastructure Fund. Municipal and territorial demarcations of the Federal District corresponding to their municipalities and territorial demarcations.

The entities shall provide their respective municipalities and territorial demarcations with the resources corresponding to them according to the calendar of integers in which the Federation does so to the entities, in the terms of the last paragraph of article 32 of this Law. This timetable shall be communicated to the municipal governments and the territorial demarcations by the governments of the institutions and shall be published by the governments at the latest by 31 January of each fiscal year, in their respective official dissemination body.

Article 36.- The Fund for the Strengthening of Municipalities and Territorial Demarcations of the Federal District will be determined annually in the Federal Resources Budget with federal resources, for an equivalent amount, for reference purposes only, as follows:

a) With 2.35% of the participable federal collection referred to in the article 2o. of this Law, according to the estimation of the law itself, based on what the effect of the Law of Revenue of the Federation for that exercise establishes. This Fund will enter monthly in equal parts to the Municipalities, through the States, in an agile and direct manner without any limitations or restrictions, including those of an administrative nature, that corresponding to the purposes that are set out in Article 37 of this order; and

b) To the Federal District and its Territorial Demarcations, the corresponding funds will be given to them in the same way as the rest of the States and Municipalities, but calculated as 0.2123% of the federal revenues. participable, according to the estimation of the same budget, based on what the effect of the Law of Revenue of the Federation for that exercise establishes.

To this effect, the State and Federal District Governments will have to publish in their respective Official Journal the variables and formulas used to determine the amounts that correspond to each Municipality or Territorial Demarcation by way of this Fund, as well as the schedule of ministries, no later than 31 January of each year.

Article 37.- Federal contributions to the Fund for the Strengthening of Municipalities and Territorial Demarcations of the Federal District, receive the municipalities through the entities and territorial demarcations through the Federal District, will be assigned to the satisfaction of their requirements, giving priority to the fulfillment of their financial obligations, the payment of rights and the use of water, discharges of waste water, the modernization of local collection systems, maintenance of infrastructure, and the attention of needs directly related to the public safety of its inhabitants. With regard to the contributions received from the Fund referred to in this Article, the municipalities and territorial demarcations of the Federal District shall have the same obligations as referred to in Article 33 (B), Part II, points (a) and (c) of this Law.

Article 38.- The Federal Executive, through the Secretariat of Finance and Public Credit, will distribute the Fund for the Strengthening of Municipalities and Territorial demarcations of the Federal District referred to in Article 36 (a) of this Law, in direct proportion to the number of inhabitants with which each Federative Entity counts, according to the most recent statistical information the National Institute of Statistics, Geography and Computing.

In the case of the Federal District Demarations, their distribution shall be made in accordance with Article 36 (b) above; 75% for each Territorial demarcation shall be allocated according to the criterion of the resident population factor and the remaining 25% to the floating population factor according to the figures published by the National Institute of Statistics, Geography and Informatics.

The Entities in turn will distribute the resources that correspond to their Municipalities and the Territorial Demarcations of the Federal District, in direct proportion to the number of inhabitants. with which each of the municipalities and territorial demarcations referred to above is counted.

Article 39.- The Multi-Contribution Fund will be determined annually in the Federation's Government Budget for an equivalent amount, for purposes only a reference to 0,814% of the participating federal revenue collection referred to in Article 2. of this Law, according to the estimation of the law itself, based on what the effect of the Law of Revenue of the Federation for that exercise establishes.

Article 40.- Federal contributions from the Federal District to the Federal District and the Federal District will be provided 46% to the granting of school breakfasts; food supports; and social assistance through public institutions, based on the Social Assistance Law. In addition, the remaining 54% will be allocated to the construction, equipment and rehabilitation of physical infrastructure of the basic, upper and upper secondary education levels in their university mode according to the needs of each level.

The entities will have an obligation to make the knowledge of their inhabitants, the amounts they receive, the works and actions carried out, the cost of each, their location and beneficiaries. They shall also inform their inhabitants, at the end of each financial year, of the results achieved.

Article 41.- The Multi-Contribution Fund will be distributed among the federal entities according to the allocations and rules to be established in the Discharges from the Federation.

The Secretariat of Health and the Secretariat of Public Education shall make known by 31 January of the year in question at the latest in the Official Journal of the Federation, the amount corresponding to each entity for each of the components of the Fund and the formula used for the distribution of the resources, as well as the variables used and the source of the information of the same, for each of the Fund components.

Article 42.- Under the contributions of the National Technology and Adult Education Contributions Fund, the States and the Federal District will receive the complementary economic resources to provide the services of technological education and adult education, whose operation they assume in accordance with the coordination agreements signed with the Federal Executive, for the transfer of human, material and financial resources needed for the provision of such services.

Article 43.- The amount of the Contribution Fund for Adult and Technological Education will be determined annually in the Federation's Budget of Funds with resources federal, exclusively from the following elements:

I.- Plant records, educational facilities and staff templates used for the calculations of the budgetary resources transferred to the Federative Entities on the occasion of the subscription of the respective conventions, including the fees corresponding to federal tax and social security contributions;

II.- For the budgetary resources that are transferred to the Federative Entities in accordance with the Federation's Budget of Education for the purposes of the Fund for Technological and Adult Education the immediate prior exercise to which the budget is budgeted, adding the following:

a) The budgetary enlargements which during the course of the same financial year would have been authorised under the Forecasts for the Fund for Contributions to Technological and Adult Education, contained in the The Federation's Government Budget,

b) The amount which, if any, is to be applied in the financial year to which the measures authorised under the above mentioned measures are budgeted and

c) The update to be determined for the financial year to be budgeted for operating expenses, other than personal services, corresponding to the plant and educational facilities records, and

III.- Additionally, in the case of adult education services, the (a) determination of the resources of the Fund for Technological and Adult Education and its consequent distribution, will respond to formulas that consider the specific priorities and compensatory strategies for the reduction of the lag in literacy, basic education and training for the work. The formulas, as well as the variables considered and the corresponding source of information, to which this fraction refers must be published by the Secretariat of Public Education, no later than 31 January of each year in the Official Journal of the Federation.

The information presented by the entities and the Secretariat of Public Education, by this Fund, shall be subject to Article 73 of the General Accounting Law Government.

Article 44.- The Public Safety Contributions Fund of States and the Federal District will be made up of federal resources, which will be determined annually in the Federation's Government Budget. The Secretariat of Government will make a proposal for the integration of this Fund to the Secretariat of Finance and Public Credit.

The distribution of federal resources that make up this Fund among the various categories will be made in the Federation Budget of the Federation of each fiscal year. National Public Safety System expenditure approved by the National Public Security Council.

The Federal Executive, through the Secretariat of Finance and Public Credit, will provide the entities with the State Public Security Contributions Fund. and the Federal District, based on the criteria that the National Public Security Council determines, on a proposal from the Secretariat of the Interior, through the Executive Secretariat of the National Public Security System, using the distribution of resources, criteria that incorporate the number of inhabitants of the States and of the Federal District; the rate of prison occupation; the implementation of crime prevention programs; the resources intended to support actions that the municipalities develop in the field of public security; and progress in the implementation of the National Public Safety Programme in terms of professionalisation, equipment, technological modernisation and infrastructure. The information related to the formulas and variables used in the calculation for the distribution and the result of its application corresponding to the allocation by each State and the Federal District, must be published in the Official Journal of the Federation no later than 30 calendar days following the publication in that Journal of the Federation of the Federation of the Federation of the Fiscal Year concerned.

The technical conventions and annexes concluded between the Executive Secretariat of the National Public Security System and the entities shall be signed in a non-binding term. greater than sixty days, counted from the publication of the result of the application of the formulas and variables mentioned above.

This Fund will be made monthly by the Secretariat of Finance and Public Credit during the first ten months of the year to the States and the Federal District, in a way that (i) direct and agile without further restrictions or restrictions, including those of an administrative nature, unless the provisions of this Article are not complied with.

The States and the Federal District will report quarterly to the Secretariat of the Interior, through the Executive Secretariat of the National Public Security System, the exercise of the Fund's resources and progress in meeting the goals, as well as the modifications or adjustments made to the allocations previously established in the coordination agreements and their technical annexes in the field; the latter case shall include the justification and the approval of the State Council of Public Security, or the favorable opinion of the Executive Secretariat of the National Public Security System. The Executive Secretariat of the National Public Security System shall provide a response within a period of no more than 30 working days.

Federative entities, municipalities and territorial demarcations shall inform their inhabitants on a quarterly basis and at the end of each financial year, among other means, through the official website of the entity concerned, the amounts received, the financial year, destination and results obtained from this Fund. The above, in terms of the General Government Accounting Act and in accordance with the formats approved by the National Accounting Harmonization Council.

Article 45.- The federal contributions that, under the Fund for Public Safety Contributions of States and the Federal District, receive such contributions entities shall be exclusively intended for:

I. The professionalization of the human resources of security institutions public related to recruitment, entry, training, selection, permanence, assessment, recognition, certification and debugging;

II. The granting of extraordinary perceptions for the Ministry's agents The public, the experts, the police officers or their counterparts from the Attorney General's Office of the States and the Federal District, the police officers for the surveillance and custody of the penitentiary centers, as well as the centers for social reintegration. Detention for adolescents;

III. Equipment of the elements of public security institutions corresponding to the ministerial police officers or their equivalents, experts, public ministries and police officers for the surveillance and custody of the penitentiary centres, as well as for the social rehabilitation centres for adolescents;

IV. The establishment and operation of the criminalistic and criminal databases personnel, the compatibility of the telecommunications services of the local networks, the national emergency telephone service and the anonymous reporting service;

V. Building, upgrading, extending or acquiring the facilities for the prosecution and imparting of justice, of the penitentiary centers, of the centers of social reinsertion of internment for adolescents who carried out a standardized conduct as a crime, as well as of the facilities of the bodies of public security of the academies or institutes responsible for implementing the the rectors ' programmes of professionalisation and the Centres for Confidence Assessment and Control, and

VI. Monitoring and evaluation of fractions related programs above.

The resources for the granting of extraordinary perceptions for the agents of the Public Ministry, the ministerial police officers or their equivalents, the police officers Surveillance and custody and the experts of the courts of justice of the States and of the Federal District, will have the character of non-regularizable for the budgets of discharges of the Federation of the subsequent exercises and the responsibilities The governments of the Member States will be responsible for the of the States and the Federal District.

Such resources shall be applied in accordance with the General Law of the National Public Security System and the agreements approved by the National Security Council Public.

The States and the Federal District will provide the Federal Executive, through the Executive Secretariat of the National Public Security System, with the information financial, operational and statistical to be required.

Article 46. The Fund of Contributions for the Strengthening of Federative Entities will be determined annually in the Federation's expenditures budget corresponding to federal resources amounting to 1.40 percent of the Federal revenue collection referred to in Article 2 or. of this Law.

The amounts of the fund referred to in this article will be entered monthly by the Secretariat of Finance and Public Credit to the States and the Federal District in a manner Quick and direct, according to the following formula:

Where:

Ci, t is the distribution coefficient of the Fund of Contributions for the Strengthening of the Federal entities of the i entity in the year in which the calculation is performed.

Ti, t is the contribution of the fund referred to in this article for the entity i in the year t.

Ti, 07 is the contribution of the fund referred to in this article that the entity i received in the year 2007.

PIBpci is the last official information of the Gross Domestic Product per capita that has been released the National Institute of Statistics, Geography and Informatics for the entity i.

DFAFEF07 ,t is the growth in the Fund of Contributions for the Strengthening of the Entities Federatives between 2007 and the year t.

is not the last official population information that the National Institute of Statistics, Geography, and Informatics for the ientity.

is the sum of all entities in the variable that follows.

The above formula will not be applicable in the event that in the year of calculation the amount of the Fund of Contributions for the Strengthening of the Federative Entities is less than that observed in 2007. In that case, the distribution shall be carried out on the basis of the amount actually generated in the year of calculation and according to the effective coefficient that each institution received from that Fund in 2007.

Article 47. The resources of the Fund for the Strengthening of Federative Entities will be used:

I.             For investment in physical infrastructure, including the construction, reconstruction, extension, maintenance and conservation of infrastructure; as well as the purchase of goods for the equipment of the generated or acquired works; Hydroagricultural infrastructure, and up to 3 percent of the cost of the program or project programmed in the corresponding fiscal year, for indirect expenses for studies, elaboration and evaluation of projects, supervision and control of these infrastructure works;

II.            For financial consolidation, preferably through the amortization of public debt, expressed as a reduction to the balance recorded at December 31 of the previous immediate year. Other financial consolidation actions may also be carried out, provided that a favourable impact on the strength of local public finances is credited;

III.           To support the consolidation of pensions and, where appropriate, reforms to the pension systems of States and the Federal District, as a priority to actuarial reserves;

IV.          For the modernization of the public registers of local property and commerce, in the framework of coordination to approve public registers; as well as for the modernization of the catstars, in order to update the values of the goods and make the collection of contributions more efficient;

V.           To modernize local collection systems and to develop tax mechanisms to expand the tax base of local contributions, which will generate a net increase in revenue collection;

VI.          The strengthening of scientific research and technological development projects, provided that the federal contributions for this area are additional to the local resources approved by the legislatures. local in that matter;

VII.         For civil protection systems in the States and the Federal District, provided that federal contributions to this area are additional to local resources approved by local legislatures in the Federal District. material;

VIII.        To support public education, as long as federal contributions to this item are additional to local resources approved by local legislatures for such matters and that the amount of the resources local increases in real terms with respect to the budgeted in the previous year, and

IX.          To allocate them to funds constituted by the States and the Federal District to support projects of concessionary infrastructure or those where public and private resources are combined; the payment of public works of infrastructure that be capable of being complemented by private investment, either immediately or in the future, as well as studies, projects, supervision, the release of the right of way, and other goods and services related to them.

The resources of the Fund for the Strengthening of the Federative Entities are aimed at strengthening the budgets of the same and the regions that make up. For this purpose and with the same restrictions, the Federal Entities may agree with each other or with the Federal Government, the application of these resources, which may not be used for current or operating expenditure, except in the case of cases expressly provided for in the previous fractions. The Federative Entities shall submit to the Secretariat of Finance and Public Credit a detailed quarterly report on the application of the resources no later than 20 calendar days after the end of the quarter.

Article 48. The States and the Federal District shall send to the Federal Executive, through the Secretariat of Finance and Public Credit, reports on the exercise and the destination of the resources of the Federal Contribution Funds referred to in this Article. Chapter.

For the purposes of the preceding paragraph, the States and the Federal District shall report both the information relating to the Federative Entity, and that of their respective Municipalities or Territorial demarcations for the Federal District, in the Funds that correspond, as well as the results obtained; likewise, they shall transmit the consolidated information no later than 20 calendar days after the completion of each quarter of the fiscal year.

The Secretariat of Finance and Public Credit will include the reports mentioned in the previous paragraph, by Federative Entity, in the quarterly reports that they must to be delivered to the Congress of the Union under the terms of Article 107 (I) of the Federal Budget and Accountability Act; it shall also make such information available for consultation on its website, which must be updated no later than the date on which the Federal Executive delivers the cited reports.

The States, the Federal District, the Municipalities and the Territorial Demarcations of the Federal District shall publish the reports referred to in the first paragraph of This Article shall be made available to the general public through their respective electronic pages of the Internet or other local media at the latest by 5 working days at the latest, and shall be made available to the general public through their respective electronic pages. to the date indicated in the preceding paragraph.

The federal authorities shall inform the local implementing authority of the expenditure, the budget corresponding to it for a maximum of five working days, after receipt of the the corresponding ministry of each of the Funds referred to in Chapter V of this order.

Article 49. The contributions and their accessories that are provided by the Funds referred to in this Chapter by the entities and, where applicable, the municipalities and the Territorial demarcations of the Federal District, shall not be embargable, nor shall the corresponding governments, under any circumstances, impose or affect them in guarantee or be used for payment source mechanisms, except for the provisions of the Articles 50, 51 and 52 of this Law. Such contributions and their accessories may in no case be used for purposes other than those expressly provided for in Articles 26, 29, 33, 37, 40, 42, 45 and 47 of this Law.

Federal contributions shall be administered and exercised by the governments of the federal entities and, where appropriate, of the municipalities and the demarcations The Federal District of the Federal District that receives them, in accordance with its own laws, except in the case of the resources for the payment of personal services provided for in the Fund of Contributions for the Educational Payroll and Operating Expenditure, in which it is observe the provisions of Article 26 of this Law. In all cases, they must be registered as their own revenue which shall be specifically intended for the purposes set out in the articles referred to in the preceding paragraph.

For the purposes of the whole of the Contribution Funds referred to in Article 25 of this Law, except as provided for in Article 52 of this Chapter, they shall not proceed the advances referred to in the second paragraph of Article 7o. of the same.

The control, evaluation and audit of the management of the federal resources referred to in this Chapter will be carried out by the following authorities, in the stages indicating:

I.- From the beginning of the budgeting process, in terms of federal budget legislation and up to the delivery of resources corresponding to the Federative Entities, shall be the responsibility of the Secretariat of the Civil Service;

II.- Received the resources of the funds concerned by the Federative Entities, the Municipalities and the Territorial Demarcations of the District Federal, up to its full erogation, will be up to the local governments ' control and internal oversight authorities.

Monitoring and surveillance shall not imply any limitations or restrictions of any kind on the administration and exercise of such Funds;

III. The audit of the Public Accounts of the entities, the municipalities and the territorial demarcations of the Federal District will be carried out by the local legislative branch that corresponds, through its General Accounting Office or equivalent body in accordance with its own laws, in order to verify that the offices of the Local Executive and, where appropriate, of the municipalities and the territorial demarcations of the Federal District, respectively apply the resources of the funds for the purposes provided for in this Law;

IV. The Supreme Audit of the Federation of the Chamber of Deputies of the Congress of the Union, when the Federal Public Account is audited, verify that the Federal Executive's offices complied with the federal laws and administrative provisions and, as a result of the implementation of the resources of the Funds referred to in this chapter, will be carried out in terms of the Third Title of the Federation's Higher Taxation Law, and

V. The exercise of the resources referred to in this Chapter shall be subject to the performance assessment referred to in Article 110 of the The Federal Law on Budget and Accountability. The results of the exercise of these resources must be evaluated, based on indicators, by technical bodies independent of the institutions that exercise them, designated by the entities, in order to verify the fulfillment of the objectives. to which the Funds for Federal Contributions are intended in accordance with this Law. The results of the evaluations shall be reported in the terms of Article 48 of this Law.

In the case of the resources for the payment of personal services provided in the Fund of Contributions for the Educational Payroll and Operating Expenditure, the control authorities In the field of their respective competences, the process of integration and payment of the payroll of the educational staff will be supervised by the federal governments and the federal authorities. In addition, the Higher Audit of the Federation will oversee the application of these resources.

When the authorities of the federative entities, of the municipalities or of the territorial demarcations of the Federal District, that in the exercise of their attributions of control and supervision know that the resources of the Funds have not been applied to the purposes that for each Fund is indicated in the Law, they must do it of the knowledge of the Audit Superior of the Federation and the Secretariat of the Civil Service immediately.

On the other hand, when the local legislative branch of the legislative branch finds that the resources of the Funds have not been allocated for the purposes set out in this Law, must do so of the immediate knowledge of the Higher Audit of the Federation of the Chamber of Deputies of the Congress of the Union.

The administrative, civil and criminal responsibilities incurred by federal or local public servants for the improper handling or application of resources of the Funds referred to in this Chapter, shall be determined and sanctioned by the competent federal or local authorities, in the terms of the applicable laws.

Article 50. The contributions that under the Funds referred to in Article 25, in its fractions III and VIII, of this Law correspond to the Federative Entities or Municipalities, may be affected to guarantee obligations in the event of non-compliance, or to serve as a source of payment for those obligations that they contract with the Federation, the credit institutions that operate on national territory or with natural or moral persons of Mexican nationality, provided that they are authorized by the local legislatures and register at the request of the Federative Entities or the Municipalities, as appropriate, before the Secretariat of Finance and Public Credit, in the Register of Obligations and Borrowings of Entities and Municipalities, as well as in the single register of obligations and borrowings referred to in the fifth paragraph of the Article 9o. of this order.

Financing provided under the obligations referred to in the preceding paragraph may be used only for the purposes laid down in Article 33 of the Treaty. this Law, in the case of contributions from the Fund for Social Infrastructure Contributions, and for the purposes set out in Article 47 of this Law as regards the Fund for Federal Contributions for the Strengthening of Social Infrastructure Federal Entities.

The Federative Entities and the Municipalities that contract obligations under this article, will not be able to allocate more than 25% of the resources that annually correspond by concept of the funds referred to in the preceding paragraph, to serve those obligations.

Dealing with obligations payable in two or more fiscal years, for each year it may be allocated to the service of the same what is greater between applying the the percentage referred to in the preceding paragraph to the resources corresponding to the year in question or to the resources corresponding to the year in which the obligations have been contracted.

The obligations of the Municipalities referred to in the second paragraph of this article shall be entered in the Register of Obligations and Borrowings of Entities Federativas and Municipalities, when they have the guarantee of the Government of the State concerned, except when in the opinion of the Secretariat of Finance and Public Credit have sufficient contributions from the Fund referred to in Article 25, III, of this Law, to respond to their commitments.

The Federative Entities and Municipalities shall make payments for the obligations under this article, with the contributions they provide correspond to the Funds to which it refers, through guarantee or payment source mechanisms, without prejudice to the instruments and systems of registration established, where appropriate, in the state debt laws.

Article 51.- The contributions that the Fund referred to in Article 25, fraction IV of this Law, correspond to the municipalities and the demarcations Federal District authorities may be affected as a guarantee of compliance with their obligations to pay for water and waste water rights and discharges, where local and compliance laws so provide. with the provisions of this article.

In the event of non-compliance by the municipalities or the territorial demarcations of the Federal District with their obligations to pay for rights and exploitation for water and waste water discharges, the National Water Commission may request the local government concerned, after accreditation of the non-compliance, to withhold and pay the debit from the resources of the Fund mentioned in the preceding paragraph corresponding to the municipality or Demarcation Territorial area in question, in accordance with the provisions of Article 36 of this Law. The National Water Commission may only request the retention and payment indicated when the debit is older than 90 calendar days.

As provided for in the preceding paragraph, it shall be applicable even if the water supply service is not directly provided by the National Water Commission, but through service providers.

The National Water Commission may assign, affect and generally transfer the resources derived from the withholding tax referred to in this article to trusts or other payment or guarantee source mechanisms constituted for the financing of priority infrastructure in the areas of supply of drinking water, drainage or sewage disposal.

Article 52.- The contributions from the multiple contributions and public security funds of the States and the Federal District, to which the Article 25 of this Law, fractions V and VII, respectively, which correspond to the entities, may be affected to guarantee obligations in the event of non-compliance, or to serve as a source of payment of obligations that are contracted in terms of of the conventions to be concluded by the Federative Entities with the Federation, through the Secretariat of Finance and Public Credit, through which mechanisms of empowerment, financing or similar schemes are established with respect to these Funds.

The entities shall agree with the Federation on the terms and conditions of such schemes, including the recognition of the anticipated receipt of resources corresponding to those Funds as a result of the mechanisms referred to, as well as their compensation over time.

The net resources obtained from the aforementioned mechanisms may only be allocated to infrastructure directly related to the purposes set out in the Articles 40 and 45 of this Law, in terms of the respective conventions.

For the obligations under this Article, no more than 25% of the resources which correspond to the funds referred to in this Article may be allocated annually. the preceding paragraph, to serve those obligations, except as set out in the following paragraph.

Dealing with obligations payable in two or more fiscal years, for each year it may be allocated to the service of the same what is greater between applying the the percentage referred to in the preceding paragraph to the resources corresponding to the year in question or to the resources corresponding to the year in which the obligations have been contracted.

TRANSIENT

Article First.- This Law will enter into force, throughout the Republic, on the 1st day. of January 1980, with the exception of the provisions of Chapter IV, which shall enter into force on the driving force, 1o. January 1979.

Article Second.- As this Law enters into force, the Fiscal Coordination Act between the Federation and the States of 28 December 1953 is repealed.

Article Third.- As of the date of the entry into force of this Law, the Law that Regulates the Payment of Participations in Federal Revenue to the Federal Entities, of 29 December 1948; and the Law that Grants Additional Compensation to States that Celebrate the Federal Tax Coordination Convention on Commercial Income, dated December 28, 1953.

Article 4.- For the purposes of Article 2o, fraction I of this Law, the charges that local or municipal entities agree to repeal or suspend the to join the National Tax Coordination System, refer to the year of 1978 and the charges that were in force in that year.

Article Fifth.- By the year of 1980, the procedure referred to in Article 3o shall not apply. of this Law, but will proceed as follows:

I.- All the amounts that each entity would have received in 1978 will be added, for units that would have been in federal taxes for their own the entity and those that the Federation would have paid directly to its municipalities excluding those relating to the additional taxes of 3% and 2% on imports and exports, respectively, and the amount of the collections, which the entity has been obtained in that year by state or municipal charges, which it does not have to remain in force at the beginning of this Law.

II.- The collection will be determined by the total tax that in the same year as the previous fraction refers to the Federation in the Republic.

III.- The sum that results according to the fraction I shall be divided between the amount determined according to the fraction II.

IV.- The results that, according to the previous fraction are obtained in all entities, will be added, and the percentage will be determined that the result corresponds to each entity represents in the total. The proportion in which each entity will participate in the General Fund for Participations during the 1980 financial year will be said as much.

As from the year 1981, the formula in Article 3o will be applied in its terms. of this Law.

Article Sixth.- States that adhere to the National System of Fiscal Coordination and the Federal District will receive, as of the date this Law enters into force, the (i) the participation of the European Parliament and the Council of the European Parliament. of January 1980, even if for which they will no longer receive participations according to the different laws and decrees that grant them or that are repealed by the Law of the Value Added Tax.

Entities that do not adhere to the National Fiscal Coordination System will continue to receive the appropriate shares, in accordance with the laws and decrees that will remain in place. repealed by the taxes previously caused to that derogation and those of special taxes referred to in Article 73 of the Political Constitution of the United Mexican States, paragraph XXIX.

The provisions of this precept apply to the interests of the Municipalities that are paid directly by the Federation.

Mexico, D. F., December 22, 1978.- Antonio Riva Palacio López, D.P.- Antonio Ocampo Ramírez, S.P.- Pedro Avila Hernández, D.S.- Joaquin E. Repetto Ocampo, S.S.-Rubicas. "

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States and for their proper publication and observance, the Decree at the residence of the Federal Executive Branch, in Mexico City, Federal District, at the twenty-two days of the month of December of a thousand nine hundred and seventy-eight.- José López Portillo.-Heading.-The Secretary of Finance and Public Credit, David Ibarra Munoz.-Heading.-The Secretary of Government, Jesus Reyes Heroles.-Heading.