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Lei Paulo Gustavo” (Paulo Gustavo Law) is approved in the Federal Senate

On 15th March 2022, the Federal Senate approved, in a final decision, the Complementary Law Bill No. nº 73/2021, named “Lei Paulo Gustavo” (Paulo Gustavo Law), in honor of the actor, who died of Covid-19 in May last year.

The resources referred to in the Bill come from the current financial surplus – that is, money that was without a destination – from revenues linked to the National Culture Fund (FNC). The Bill determines the distribution of these resources by the Union to the States, the Federal District, and the Municipalities for application in emergency actions aimed at combating and mitigating the economic and social effects of the Covid-19 pandemic on the cultural sector. The Special Secretariat of Culture will also define the guidelines to be adopted within a maximum of 90 (ninety) days after the publication of this law.

The Bill also amends the Fiscal Responsibility Law, so as not to account for the transfer by the Union to the other entities of the Federation in the primary result target and amends the Culture Incentive Law to allocate other sources of funds to the FNC.

Of the amount provided for by law, BRL 2,797,000,000.00 (two billion, seven hundred and ninety-seven million reais) will be allocated to the audiovisual sector for actions in the form of non-refundable resources and BRL 1,065,000,000.00 (one billion and sixty-five million reais) for emergency actions in the culture sector, in general, through public notices, public calls, awards, among others.

Considering that the cultural sector was one of the most affected during the pandemic, such measures are extremely important for the resumption of activities. The Bill is now awaiting sanction by the President of the Republic.