Lula sanctions public transport legal framework with vetoes

President Luiz Inácio Lula da Silva sanctioned the law establishing the Marco Legal do Transporte Público Coletivo on Sunday (14), with vetoes to sections that outlined financing obligations for states and municipalities.

The legislation, approved by Congress in May after five years of processing, amends the Statute of Cities and the Urban Mobility Law. It creates national parameters for planning, regulation, financing and operation of urban collective transport.

Among the changes maintained are the end of exclusive dependence on fares paid by passengers, the possibility of operator remuneration by kilometers traveled and performance targets, plus new financing instruments such as private development offsets.

Lula vetoed provisions that required states and municipalities to fund gratuities with budget resources within a five-year deadline, the linking of subsidies to company remuneration and the allocation of 60% of Cide-Combustíveis revenue to urban areas. The vetoes will be reappraised by Congress, with no date set.

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