With the goal of improving the National Urban Mobility Policy, since November 2022 the Federal Government has been receiving contributions from society for the construction of the new Legal Framework for Public Collective Transportation.
The idea behind the project is to improve the current Brazilian urban public transportation model, considered outdated for the current needs of the population and businesses in the sector, through a Bill (PL) to be implemented.
Lawyer Ane Elisa Perez, who holds a master's degree in Constitutional Law, is a doctoral candidate in Philosophy of Law, and is a founding partner of PGD Sociedade de Advogadas. She works in the area of Public Law and spoke with us about the proposed law.
See more below!
New Legal Framework for Public Transportation: Understanding the Bill
According to Perez, the new Legal Framework for Public Transportation is based on the Project of Law No. 3.278/2021, proposed by former senator and current minister of the Federal Court of Accounts (TCU), Antônio Anastasia.
According to the lawyer, the bill aims to modify the Law No. 12.587/2012, known in legal circles as the National Urban Mobility Policy. The objective is to implement new guidelines for public passenger transportation in the country.
“"The bill was based on the Urban Public Transport Restructuring Program, developed by the National Association of Urban Transport Companies, the National Association of Rail Passenger Transport Operators, the National Association of Public Transport Companies, the National Front of Mayors, and the National Forum of Secretaries and Directors of Urban Mobility," he explains.
Main reasons justifying the New Legal Framework for Public Transportation
According to Ane Elisa Perez, the shortcomings of the current model for urban public transportation in Brazil have been a point of debate among those involved in the sector for years, which suffers from a loss of demand and productivity.
According to the expert, this has become even more evident due to the recent health crisis we are going through. She explains:
“"With the Covid-19 pandemic, this situation worsened: the measures imposed by states and municipalities to contain the coronavirus led to a reduction in the number of people circulating, which, consequently, affected public transport, which faced a sharp drop in demand, calling into question the current concession model used in the sector.".
In Perez's words: "The crisis stemming from the pandemic was the final straw that made operators, public bodies, and the technical community that works in and studies public transport management realize that the current model was exhausted."“
She continues: "Thus, the need to implement a project to restructure national urban public transport services was placed on the agenda for study by those involved.".
Key topics under discussion in the New Legal Framework for Public Transportation
According to Ane Elisa, the new Legal Framework for Public Transportation presents six main points. They are:
- “"Diversifying monetization, giving importance to non-tariff revenues, alternative revenues, budgetary subsidies, intra-sectoral and inter-sectoral cross-subsidies from other categories of beneficiaries of transport services;
- The expansion of the Public Authority's role, which will have the power to, exceptionally, proceed with extraordinary adjustments or extraordinary revisions of service remuneration rates, either on its own initiative or at the request of the service operator, in accordance with legal requirements;
- The expansion of the concession model to be adopted in new contracts, since, with the new Legal Framework, the Public Authority may choose one of the three types of public service concession permitted by law (common concession, sponsored concession and administrative concession);
- The assignment of new tasks to the Union, which may establish national reference standards for regulation, contracting, quality and productivity related to urban public transport, and provide exceptional financial assistance to other federative entities in the event of unforeseen circumstances or force majeure (which would include the pandemic, for example);
- The proposal of new guidelines for reducing the cost of fares paid by users, through, for example, the adoption of compensation instruments for real estate appreciation resulting from the implementation of transport infrastructure, by means of the establishment of a betterment levy intended to finance public transport; and
- The importance and central role of the user, who, with the new Legal Framework, will have new mechanisms for accessing information and greater transparency regarding public transportation, allowing for greater participation, among other relevant topics.”
The importance of metro systems in public transportation.
In the context of our interview, the metro system is of great importance to public transportation in the country and should receive special attention in the new Legal Framework for Public Transportation.
“From a structural point of view, the metro system allows for interconnection with other subsystems of urban transport, contributing to coordination between other modes of public transport. Therefore, it deserves investment,” he observes.
Next steps for the new Public Transportation Legal Framework
Ane Elisa Perez explained that the bill that established the new Legal Framework for Public Transportation was shelved at the end of 2022, due to the end of the legislative term that was in effect at the time.
The lawyer believes that the project should soon be revived by the new Senate legislature. When that happens, the project will return to Congress for a vote.
After that, the bill will undergo a review in the Chamber of Deputies and, if approved, will go to the President of the Republic for his signature.
