Opinion of Rapporteur Roberto Magalhães on Provisional Measure 168

THE PRESIDENT (Inocêncio Oliveira) – I grant the floor, to offer an opinion on the provisional measure and the amendments presented to it, in substitution of the Joint Committee, to the honorable Deputy Roberto Magalhães.MR. ROBERTO MAGALHÃES (PTB-PE. To issue an opinion. Without revision by the speaker.) – Your Excellency Mr. President, esteemed Ladies and Gentlemen Deputies, before reading my opinion on Provisional Measure No. 168 of 2004, I wish to make two points. First, I congratulate the Presidency of the House for the wise and considered decision to postpone the vote on this provisional measure until tomorrow. Some party leaders told me that they did not have explanations about the opinion even to discuss with their caucuses the position they should take. It would be very good if the opinion were published separately, for the Deputies' information starting tomorrow. It does not matter if it will be modified after negotiations. This is legitimate in the process. Three weeks were spent on studies, research, and dialogues to reach solid conclusions on this complex matter. Second, I ask the Plenary for indulgence and patience. I cannot summarize the opinion. I will have to read it in its entirety, because it is not published and deals with complex matters, all of which do not allow for a superficial or simplified interpretation simply to avoid tiring you. Unfortunately, there is no alternative.I'll now read the report: Your Excellency Sr. President of the Republic, based on art. Article 62 of the Federal Constitution submits to the deliberation of the National Congress, in accordance with Message No. 84, of February 20 of this year, Provisional Measure No. 68, of February 20, 2004, which prohibits the operation of all forms of bingo games, as well as games on electronic machines called slot machines, regardless of their trade names, and provides other measures. This prohibition is stated in article... 1st of the Provisional Measure. It reaffirms the gambling nature of bingo and slot machines. Therefore, these games are definitively classified as games of chance, which are not authorized by the Federal Government. It is important, ladies... and gentlemen. Members of Parliament, please bear in mind that the provisional measure only addressed bingo and slot machines because all other games of chance fall under the Law of Criminal Offenses. The provisional measure reiterates the repeal of articles already repealed because injunctions were granted and the States began to enact legislation that encroaches on the sphere of federal legislation, creating and regulating games of chance, including lotteries that correspond to the federal lotteries operated by Caixa Econômica Federal, the so-called forecasting consortia. There is a babel installed in the State, and gambling is not only an open door to drug trafficking and money laundering, it is also a parallel power that infiltrates, engages in influence peddling, acquires political strength and begins to contribute to the debasement of Brazilian public life. Article... 2. declares null and void all licenses, permits, concessions or authorizations for the operation of gambling activities covered by the provisional measure, whether directly or indirectly issued by Caixa Econômica Federal, as well as by the States, the Federal District and Municipalities. Someone might ask: but don't states and some companies have injunctions? Yes, they do, but they won't last long. Some are being overturned due to Provisional Measure No. 168; others will be definitively invalidated by the decision that the Supreme Federal Court is currently making – there are already 3 votes in favor of the correct argument that the legalization of gambling is the exclusive prerogative of the Federal Union. I have no doubt that this decision of the Supreme Court will be approved, by majority or unanimously, because it has always been understood this way, since 1946 or 1947, when Eurico Dutra issued a decree-law, if I'm not mistaken, while the Constituent Assembly was in session, prohibiting gambling. This exclusive competence has never been contested. Now, suddenly, starting with bingo and other games of chance, states are yielding to pressure, especially political pressure, and are beginning to make laws on the matter and regulate gambling, without taking into account article […]. Article 22 of the Federal Constitution assigns jurisdiction to the federal sphere, or should one focus on negotiating to obtain concessions? Nothing! They make the law and we authorize gambling. We have everything from scratch-off tickets to state lotteries, which run parallel to the federal lotteries. All these games—Sena, Quina, Loteria Esportiva, Lotomania—are classified under federal law as types or subtypes of federal lottery. (Article...) 3rd, it determines that the entities referred to in art. Secondly, Caixa Econômica, state, district and municipal authorities, are to take steps to rescind or revoke any remaining license, contract or authorization, without any compensation. Why without compensation? Because what is illegal cannot generate rights. No one can claim compensation for acts that are absolutely illegal. Article... Article 4 provides for a daily administrative fine of 50 reais for those who fail to comply with the prohibition on operating bingo games and slot machines, without prejudice to any other applicable sanctions. This fine will be imposed by the Ministry of Finance and, after the infraction notice is issued, a copy must be sent to the Federal Police Department, as stipulated in article [article number]. 5º,caput...and sole paragraph. This referral of the infraction report to the Federal Police is a natural consequence of the fact that the operation of bingo and slot machines constitutes a criminal offense. I would add: not from this point onwards, but from the law that revoked Article 59, the Pelé Law, whose effects began to be in force on December 31, 2001. That is why I say that this provisional measure is yet another reiteration. Regarding the assumptions of relevance and urgency, the Joint Committee was not established. After the deadline, as stipulated by the rules of procedure, it came to the Chamber and the process was distributed to the Rapporteur to prepare his report. During the six-day regulatory period, six amendments were presented. Amendment No. 1, authored by Deputy Neucimar Fraga, proposes a new wording for Article 1 in order to include in the prohibition games carried out via the Internet and OnlineAmendment No. 2, authored by Representative Alceste Almeida, proposes to expand the prohibition of art. Amendment No. 1, authored by Deputy Sebastião Madeira, proposes the operation of all types of electronic slot machine games, regardless of trade name, without making reference to bingo or slot machines. Amendment No. 4, authored by Deputy Sebastião Madeira, proposes the inclusion of an article stipulating that the Union will reimburse the States, the Federal District, and the Municipalities for any losses in tax revenue, referring to the fiscal year of 2004, resulting from the effects of Provisional Measure No. 168. Amendment No. 5, authored by Deputy Alceste Almeida, proposes the creation of a national bingo game system, canceling all licenses, permits, and authorizations previously granted, with the new registration to be carried out through the Caixa Econômica Federal (Federal Savings Bank), after regulation by the Government. Amendment No. 6, authored by Deputy Maurício Rabelo, proposes extensive regulation of bingo operation, with 39 articles, and the creation of the Social Fund for Hunger, Culture, and Sports. FSFCD. Therefore, it is up to the Plenary of the Chamber of Deputies to deliberate on this matter. This is the report. Ladies and Gentlemen of Parliament, I will now address the relevance and urgency, which, not having been decided by the Joint Committee, will have to be decided by this Plenary. Article 62 of the Federal Constitution provides that In cases of relevance and urgency, the President of the Republic may adopt provisional measures, with the force of law, and must immediately submit them to the National Congress, in accordance with § 1 of Article 2 of Resolution No. 1 of 2002 of the National Congress, which provides that On the date of publication of the provisional measure in the Official Gazette The text will be sent to the National Congress, accompanied by the respective message and documents that reveal the motivation of the body. Thus, admissibility is linked to meeting the constitutional requirements of relevance and urgency and observing the provisions of Resolution No. 01 of 2002. As the Supreme Federal Court has repeatedly decided, the requirements of relevance and urgency must be analyzed, in principle, by the President of the Republic at the time of issuing the provisional measure, and, in a second moment, by the National Congress, separately by each of its Houses, which may refrain from converting it into law due to the absence of constitutional requirements. We read the summary of the judgment of the Supreme Court in Direct Action of Unconstitutionality No. 1.516, Federal District, preliminary injunction, Rapporteur Minister Sidney Sanches, Justice DiarySection 1, August 13, 1999, p. 3: The jurisprudence of the Supreme Federal Court has considered the subjective evaluation of the urgency of the provisional measure to be within the competence of the Presidency of the Republic and the National Congress. It should only be executed in cases where the lack of urgency can be objectively verified. That is, the decision is discretionary and predominantly political in nature. Interministerial Statement of Reasons No. 7 of 2004, which accompanied the provisional measure to justify its issuance, consistently listed some reasons justifying Provisional Measure No. 168, clarifying that, notwithstanding Law No. 9.981 of July 14, 2000 – this law is extremely important in resolving this issue – in its Article 2, having revoked Articles 59 and 81 of Law No. 9.615 of March 24, 1998, there was... vacatio legis From December 31, 2001, bingo halls continued to operate, both during the period the law was enacted and while awaiting its expiration. There was pressure, LOBBY ...and at the request of the bingo halls. They said that they couldn't close them overnight, that time was needed. And President Fernando Henrique revoked the decree that could have prevented all this. But it was no use. Everything continued as before. The Statement of Reasons No. 7 also emphasizes that the actions of the Public Prosecutor's Office to curb the illicit practice have not achieved lasting effects. And, furthermore, the exploitation of gambling, in defiance of the law, was obtained, mind you, through court injunctions, supported by unconstitutional state legislation and even clandestinely. And it states: The chaos that has been established undermines the effectiveness of the State in fulfilling its constitutional obligations, demanding a solution to the problem. Astonishingly, Members of Parliament: there are states where the Federal Police, since the enactment of this provisional measure that is in force, have only seized 3 slot machines. There is a serious problem of confrontation with the authority of the State and even a challenge to governability. Incidentally, it is relevant to remember that, on March 4, 2004, a group of federal prosecutors and state prosecutors sent a document to the Government, through the Honorable Minister of Justice, entitled "The Truth About Bingo and Slot Machine Gambling." The Public Prosecutor's Office, an institutionally apolitical corporation with no hierarchical ties to any branch of government, sent a document from which I will highlight the following text:In a brief historical overview, we would like to recall the investigations already carried out in the country regarding gambling, which prove the connection of this activity with international criminal organizations. From 1996 onwards, investigations conducted by the FBI in the United States and the Italian Anti-Mafia Directorate found that the Sicilian Mafia was investing its illicit resources obtained from drug trafficking in real estate ventures and gambling establishments in the United States, especially in the cities of Miami and Las Vegas. In Brazil, the introduction of slot machine gambling was carried out through bingo halls, with the involvement of organized crime and the connivance or direct participation of federal and state public authorities.That's what I said: influence peddling and corruption in the political arena.It is worth noting that the companies that import and sell slot machines in Brazil have Italian criminals on their board of directors, with arrest warrants issued in Italy, such as Giuseppe Aronica and Lillo Luaricella. Based on this information, several criminal investigations and legal proceedings have been initiated in Brazil, confirming that bingo and slot machine gambling activities are directly linked to organized crime. As examples, prosecutors cite the illegal gambling boss Ivo Noal, from São Paulo, Comendador Arcanjo, from Mato Grosso, José Carlos Gratz, from Espírito Santo, and others from the Federal District and states in the North and Northeast. All of them are demonstrably the biggest fraudsters in illegal gambling in the country. I will discuss this matter published in [newspaper/publication name] later. Mail Braziliense which states that investigations by the Brasília Civil Police, initiated in the previous government and concluded now, have discovered that bingo games in the Federal District are, for the most part, run by front men of this type of people. The following day, the same newspaper published a new article stating that the Federal District Civil Police had summoned nine front men to testify, operating bingo halls right under the noses of the Federal Government and the National Congress. Why the front men? Why don't the owners appear? The representative of the Public Prosecutor's Office concluded by saying: Therefore, Mr. Minister of Justice, we present the detailed report on the serious risks to public safety, the popular economy, and public health that bingo and slot machine gambling activities represent. We remain at Your Excellency's disposal for any further information or anything else You deem necessary. The document is signed by Federal Prosecutors Guilherme Schelb and José Pedro Taques, State Prosecutors Luiz Fernando Delazari, current Secretary of Public Security of Paraná, Fábio Velo and Fábio Ribeiro, both from Espírito Santo, Mauro Zaque, from Mato Grosso, and Rodrigo Canelas, from São Paulo. Your Excellencies can observe that the Rapporteur is taking an approach that always seeks to remain above political-partisan matters, above what would be a provincial, partisan and prejudiced view, in short, seeking support from corporations and people of integrity who know the... activityTherefore, based on the reasons invoked by the Executive Branch, which are supported by the pronouncement of representatives of the Public Prosecutor's Office, a non-partisan institution with no hierarchical link to any of the branches of government, we believe that a state of necessity has been established, requiring the President of the Republic to immediately adopt legislative measures that could not await the ordinary legislative procedure. In light of the foregoing and considering the provisions of Article 62 of the Federal Constitution and the provisions of § 1 of Article 2 of Resolution No. 1 of 2002 of the National Congress, we are in favor of the admissibility of Provisional Measure No. 168 of 2004, recognizing its urgency and relevance. Next, I will address the constitutionality, legality, and legislative technique, as provided for in Resolution No. 1 of the National Congress. It is the exclusive competence of the Federal Union to legislate on consortium and lottery systems. This is what Article... Article 22, item XX, of the Federal Constitution. Consequently, only the Union may authorize or not the operation of bingo halls, which involve gambling, risk, and luck with a profit-making purpose. This competence is clearly established by the decision issued by Minister Nelson Jobim when judging Writ of Mandamus No. 697, from the Federal District, on January 23, 2004. Minister Jobim states: There was already extensive regulation of bingo games in the country through articles 59 and 81 of Law No. 9.715 of 1998, the Pelé Law, and the amendments made by Provisional Measure No. 2.216-37 of 2001. So much so that for a certain period, companies operating in this activity functioned normally. This regulatory treatment, however, was expressly revoked by Law No. 9.981 of 2000 – the one I mentioned as important – in the full exercise of the Union's exclusive competence to legislate on consortium and lottery systems. Because it does not constitute a constitutional right or freedom… His Excellency It continues to address the injunction order. Regarding the matter contained in the provisional measure, I addressed the issue of the Union's exclusive competence, as I mentioned earlier, which should be reiterated by a unanimous decision of the Supreme Federal Court, which is deciding on an ADIN (Direct Action of Unconstitutionality) from the Attorney General's Office that seeks to declare the so-called Popular lottery of the Federal District unconstitutional and null. As I said, there are 3 votes in favor of the Union. I'll move on to another legal aspect of the provisional measure, because I'm dealing with its constitutionality and legality. The subject matter contained in the provisional measure does not fall within the exclusive competence of the National Congress (art. 49 of the CF) or of either of its Houses (arts. 51 and 52), in the same way that it does not provide for matters whose treatment is prohibited through this normative instrument (art. (Article 62, § 1 of the Federal Constitution.) There is no basis to argue that the Provisional Measure in question deals with criminal matters when it prohibits the operation of bingo games on electronic slot machines. No provision in Provisional Measure No. 168 creates a new criminal offense, nor does it combine, aggravate, or reduce penalties. Therefore, there is no offense to articles either. 15 and 29 of the Constitution, nor to art. Article 62, § 1, I, subparagraph b, both of the Federal Constitution. Only indirectly, through a reflexive mechanism, will there be repercussions in the criminal field, insofar as the cessation of the legality of bingo will subject the offender to the provisions of article [relevant article number]. Article 50 of Decree-Law No. 3.688, of October 1941, which is the Law of Criminal Offenses. Let it be said that article... Section 50 of that law was never repealed, thus the possibility of the rule being reinstated does not apply. There is no three-part penalty, no combination of penalties, no alteration of penalties, and no reinstatement of any penal norm. The Provisional Measure under review is in accordance with the current legal framework and was drafted in accordance with the rules relating to good legislative technique contained in Complementary Law No. 95 of 1988, amended by Complementary Law No. 107/01. As for Amendments Nos. 1, 2, 3 and 4, there is no defect related to the aspects addressed in this session: constitutionality, legality and legislative technique. Amendment No. 5, however, by the honorable Deputy Alceste Almeida, creates the National Bingo Games System which, based on the reasoning of the justification, appears to be an organ of the Executive Branch, and therefore cannot be created through a conversion bill because it is a matter of competence reserved to the President of the Republic regarding its initiative – art. Article 61, paragraph 1, item II, subparagraph e, of the Constitution. Based on the same rationale, Amendment No. 6, by the honorable Deputy Maurício Rabelo, when proposing the regulation of bingo games, creating fees (art. 18 and establishing the Social Fund for Hunger, Culture and Sport art. 21 also encroaches on the sphere of competence of the Executive Branch, thus resulting in unconstitutionality. The proposal by Representative Maurício Rabelo has 39 articles. Therefore, we vote in favor of the constitutionality, legality, and sound legislative technique of the provisional measure under consideration. Financial and budgetary adequacy. Here I will use abbreviation to say that only Amendment No. 4 is subject to restrictions by the Rapporteur. Although it comes from a Representative for whom I have great respect, one of the good Representatives of this House, Arnaldo Madeira, from the PSDB party, it establishes that the Union will reimburse the States for the losses taxed in 2004 due to the provisional measure. I've said it before and I'll say it again: besides it being unfair and illegal to demand that the government pay for damages it didn't cause, there's another problem. The amendment does not comply with certain regulations, including Complementary Law No. 101 of 2000, the Fiscal Responsibility Law, article I. 16, according to which any amendment that generates expenditure must include a justification, an explanation, as well as a budget forecast for 2004. In view of the foregoing, we consider Provisional Measure No. 168 of 2004, under the terms of Resolution No. 1 of 2002 of the National Congress, to be adequate from a budgetary and financial standpoint, as well as Amendments Nos. 1, 2, 3, 5 and 6, and Amendment No. 4, by the honorable Sebastião Madeira, should be rejected as inadequate. On the merits. Scope and content of Provisional Measure No. 168 of 2004. As already mentioned in the report, Provisional Measure No. 168 of 2004, in its article... First, it establishes a ban, throughout the national territory, on the operation of all forms of bingo – which means from the conventional bingo with the little stone, to the internet bingo, not even video bingo – as well as games on electronic machines called slot machines, regardless of the trade name. Someone might ask: but why slot machines, if they were never legal? That's right, prohibiting and reiterating the illegality of bingo is correct, but why these machines? Because they entered Brazil through the door opened by bingo halls. Your Excellencies. You will see later that the Pelé Law was a consequence of a Parliamentary Inquiry Commission held in this House, chaired by Deputy Zulaiê Cobra, which concluded with a fine report, presented a bill, and became the Pelé Law, intended to improve morality. But they came up with a decree that contradicted the very norm that was intended to improve morality, because it prohibited electronic machines. But the decree allowed it. The mafia came, and so did the machines, in great numbers. Today it is estimated that there are thousands throughout Brazil, in bakeries, shops, bars, and children and teenagers of all ages play whenever they want, as long as they have a nickel. The sole paragraph of art. First, it expressly declares the removal of the public service status conferred upon the bingo operation modality, by virtue of Law No. 8.672, of July 1993, art. 57, the so-called Zico Law, which was in effect before the Pelé Law and initiated the phase of legality for bingo, had authorized, through questioning, the non-applicability of a rule of Criminal Law. To clarify, regarding electronic machines known as slot machines, there has never been any authorization by federal law for their operation. With the enactment of Law No. 9.981 of 2000, reiterated by Provisional Measure No. 168 of 2004, not only the aforementioned electronic machines, but also the operation of all forms of bingo are subject to the provisions of article [article number missing]. 50, in the Law of Criminal Offenses. Although Law No. 9.981 had already repealed articles... Articles 59 and 81 of the Pelé Law, which regulated bingo, consequently gave it legality. Thus, bingo games were banned throughout the country as of December 31, 2001, warns the Statement of Reasons No. 7 of 2004, emphatically – and anyone who wants to can go to the states and see what is happening – and I will quote again the statement of reasons that accompanied the provisional measure: first, bingo halls continue to operate, whether with the approval of the Judiciary, or as a result of state legislation or clandestinely, without any benefit to social causes, and, rather, serving almost exclusively the interests of those who are outside the law. Secondly, the spread of electronic forms of bingo and other games, mainly through electronic machines known as slot machines. Thirdly, the actions of the Public Prosecutor's Office to curb this illegal practice have not had lasting effects. Fourth, the resulting chaos undermines the State's effectiveness in fulfilling its constitutional obligations, demanding a solution to the problem. And the statement of reasons continues. I ask Your Excellencies. Please pay attention to this text. It is worth emphasizing that establishments dedicated to operating these games without legal authorization are proliferating throughout Brazil, based on local regulations that are informally unconstitutional. A cycle of tax evasion, money laundering, and corruption has formed around these establishments, to the point of threatening institutional stability and even impacting economic investments, as evidenced by the market nervousness in recent days. That is to say, after the provisional measure. The uncontrolled situation offers no alternative other than the immediate issuance of a regulation explicitly prohibiting bingo and slot machines, applying heavy administrative fines to offenders, without prejudice to criminal law. In addition to the arguments clearly presented in the presidential message, we believe it is appropriate to highlight two notorious and highly relevant facts. First, the tireless work of the Public Prosecutor's Office, through a group of Federal Prosecutors and State Prosecutors, in combating illegal gambling and organized crime, which has amassed a vast body of supporting evidence. I had access to a huge collection of documents, including a letter of request from Italy, initiated by one of the anti-mafia divisions, stating that those two mobsters I mentioned at the beginning should be arrested because they have arrest warrants issued against them in that country. Secondly, investigative work and news reports from magazines, newspapers, and television, supporting the allegations of serious irregularities occurring in the exploitation of gambling, including state lotteries, bingo operators, and slot machines, and their connection to public officials and organized crime. Regarding the Public Prosecutor's Office, we have already cited the document sent to the Government regarding the admissibility of Provisional Measure No. 68 of 2004 in this opinion. We even had access to the rogatory letter sent to the Anti-Mafia Division of Italy, and there is extensive material already collected on the connection between the mafia and gambling. But we cannot forget the role of the press in uncovering illegal activities, denunciations, and investigations. Let's take as an example the edition of March 10th of this year ofCorreio Braziliense, with the main headline: Organized Crime controls Bingo in the Federal DistrictThe article reveals that bingo halls are sustained by a network of front men who appear to be responsible for more than one establishment. The report was based on three reports from the Civil Police of the Federal District, and the investigation began in 2004. In the following month's edition, the same newspaper reported that the Federal District Police summoned 10 alleged straw men for the real owners to testify. We consider it opportune, in homage to this Legislative Assembly, to refer to the pronouncements of some of its members regarding the issue of bingo and gambling. We would begin with the eminent Deputy Antonio Carlos Biscaia, of the PT (Workers' Party), who, in the justification of Bill No. 1.986 of 2003, authored by him, states – and I will now quote excerpts from the justification of Deputy Antonio Carlos Biscaia, whose integrity and authority no one can question: Alongside the expansion of bingo halls, thousands of slot machines were distributed throughout the cities, placed indiscriminately in shopping malls, fast-food restaurants, bakeries, pharmacies, and other establishments, including those frequented by minors. An organizational chart created by the Italian government's Anti-Mafia Investigative Division proved that mobsters are behind the slot machines imported into Brazil. In Rio de Janeiro, most of the slot machines are controlled by illegal gambling operators.Furthermore, it is important to mention that the World Health Organization considers pathological gambling to be a new phenomenon. Look, Mr. President, Your Excellency is a doctor. This is being stated by Deputy Antonio Carlos Biscaia in the justification for a bill that prohibits gambling, which generates addiction, as a disease, since 1992, and that the Pathological Gambling Clinic at the Federal University of São Paulo has almost doubled its number of consultations in 2 years. It has been in existence for 10 years. The upward trend is accompanied by an explosive increase in bingo halls, which, in 1998, when the law and decree authorizing electronic machines came into effect… I want to explain the following to you: the electronic machine transforms the game of bingo, which was limited by time itself because each round required 8 minutes, into a game that allows you to play 10, 20, 50, 100 cards at once, in a high-level game with the potential to cause losses, just like roulette, baccarat, or any other casino game. I will quote what I heard in the corridors from Deputy Francisco Dornelles, of the PP party, who is a former Minister of Labor and is very experienced: Bingo is worse than casinos because in casinos, most of the people who lose money are rich; in bingo, it's middle-class people. I have people in my family and among my friends who throw everything away—income, retirement savings—because of bingo.Look, it went from 150 houses to 1.100 after the electronic machine was introduced. So, it was a crime against the country. It is a relevant fact, which cannot be overlooked, that the Pelé Law, in its article 73 Please note that the entire text of the Pelé Law originated from a Parliamentary Inquiry Commission of this House. And I take this opportunity to pay tribute to Deputy Zulaiê Cobra, President of that Commission. The law defined the maintenance of gambling machines or electronic amusement machines in bingo halls as a criminal offense, punishable by imprisonment from 6 months to 2 years, article 81 of the same Law. However, Decree No. 2.574, of April 29, 1998, regulated the aforementioned Pelé Law, authorizing the use of electronic machines programmed solely and exclusively for the operation of bingo games in special halls.Someone abused the good faith and trust of the President of the Republic, so much so that he revoked the provision. But that was that, because what prevailed was the provision of... lobby, which I consider a crime against the country.It is evident that, starting in 1998, when electronic bingo was authorized, the game began to expand rapidly, as did the importation of slot machines. Moreover, this inference is somewhat reflected in the justification of the bill by Congressman Antonio Carlos Biscaia, as well as in the document from the Public Prosecutor's Office, forwarded to the Federal Government through the Minister of Justice. That was a regrettable episode. Because, according to the Public Prosecutors, And here are others. Raquel Nascimento and Valquíria Quixadá, in a report submitted to His Excellency the Minister of Sports, on May 8, 2003. I'll skip a section, but the material is available for anyone who wants to read it. ...taking a stand against the regulation of bingo halls... Look closely, these two prosecutors—and a third prosecutor who didn't participate in the work—did a thorough job, with great detail and supporting evidence, asking the Minister not to forward the regulatory proposal because they believed it would be a disservice to the country to regulate bingo. According to them, the Pelé Law originated as one of the proposals from the Bingo CPI (Parliamentary Commission of Inquiry). Nobody talks about that CPI anymore. It's as if it didn't exist. In 1995, bingo was already a problem; in 1998, it became a serious problem. This House provided a service because the Pelé Law, as you saw, even defined what was illegal: the electronic machine. They say: The Pelé Law, as already pointed out, originated as a proposal from the Bingo CPI (Parliamentary Commission of Inquiry), which took place in 1995, aiming to moralize the sector, so much so that it has an entire chapter regulating this activity in a more appropriate way. In fact, the Parliamentary Commission of Inquiry (CPI) tasked with investigating the situation of bingo halls in Brazil, in its final report, approved a draft bill proposing that the installation of any type of gambling machine or electronic entertainment device be prohibited in bingo halls. The CPI report is in the library. I have a copy, and I can make another copy for anyone who wants it. We also mention the eminent members of this House, Deputy Judge Denise Frossard, who is not present, and Deputy Antonio Carlos Mendes Thame, of the PSDB party, who is present. In an article published in Diário de S.PauloThe article, dated February 27th of this year, under the title "Bingo and Brazilian Politics," warns that it clarifies and goes back to the origins of the lottery, the véspora, and bingo, which began as an innocent game, they say:It is worth recalling Law No. 9.615 of 1998, known as the Pelé Law, which opened the possibility for sports clubs to exploit bingo to obtain resources that would allow them to strengthen their sporting activities. With this, an innocent game, known as lotto, víspora, or tombola, practiced at church fairs and charity events, called out to fill out cards, ended up transforming into a professionalized and nefarious game. Firstly, it acquired a paraphernalia of sounds and lights in an environment conducive to creating compulsive behaviors, leading people to gamble almost without thinking, unable to stop. They sometimes spend their entire salaries or retirement income in an afternoon. Secondly, these bingo halls end up awakening and cultivating gambling addiction. It's truly an addiction; from a medical standpoint, gambling is an illness. Among bingo addicts, many are women, housewives, retirees, and elderly people. Furthermore, gambling is classified as an addiction under Brazilian law, which is why the law prohibits the opening of casinos. The issue of pathological gambling, which is also addressed in the Public Prosecutor's document and which I did not transcribe in this section, was the subject of an article by psychologist Maria Paula de Magalhães Tavares de Oliveira, founder of the Pathological Gambling Clinic and the Program for Guidance to Addicts at the Federal University of São Paulo. She published an article in State of S.Paulo on March 10th of this year. I am transcribing its impactful content: Although most people gamble for leisure, compulsive gamblers are major financiers of the activity, as they lose control and exceed their limits. However, little is said about pathological gambling and its resulting family, economic, and social consequences. Pathological gambling was included in the International Diagnosis of Mental Disorders classification in 1980 as an impulsive disorder and has been considered a public health problem since the early 90s. In 1994, shortly after the opening of bingo halls and the Zico Law, the first specialized treatment program for pathological gambling in the country was created at the Federal University of São Paulo. In these 10 years of activity, the demand for treatment has been much greater than the availability of services, given the lack of resources. It was observed that the young people identified as the triggers of the problem followed market trends. The first patients played video poker in electronic amusement arcades. Later, they became bingo and electronic game players. A quarter of these players treated in outpatient clinics, that is, 25%, had already committed an illegal act related to gambling: 78% were in debt, 47% had considered suicide, and 14% had made at least one suicide attempt. Thus, it cannot be said that this activity is innocuous or harmless. Response to some objections. An objection made to Provisional Measure No. 168 of 2004, in a public statement, but also directly to the Rapporteur, by emails, letters and telegrams, demanding solutions for the unemployment of personnel employed by bingo repair companies, deserves clarification. In fact, this matter cannot be addressed by the Legislative branch, given the constitutional provision that does not allow amendments to bills originating exclusively from the Executive branch when they involve increased expenditure, article 63, item I, of the Federal Constitution. With the current revalidation, only the provision for unemployment insurance remains. Any other measure would depend on the initiative of the competent Power, in this case the Executive, which is certainly not insensitive to the unemployment of thousands of Brazilian men and women. I don't want to discuss unemployment, because it's impossible to tell an unemployed person that it's right to remain unemployed. But I want to say that the Public Prosecutor's Office conducted a survey. Through sampling, it concluded, according to research done at the INSS (National Institute of Social Security), that the average number of employees in each bingo hall is 27, which, multiplied by 1.100, will not reach 30 throughout Brazil, with 45 in São Paulo alone. Honorable Deputies, I present this data in order to better clarify the matter for you. I didn't include them in the report because there's no point in arguing with the unemployed, who are always right. We can reason with bingo owners, with lobbyists, but not with the unemployed. You can't convince them. They have the right to complain. Regarding the amendments presented, I previously discussed the relevance, urgency, and financial adequacy of the proposal; now I'm addressing the merits. Amendment No. 1, in principle, seemed appropriate to us. However, we concluded that Article 1 of Provisional Measure No. 168, by prohibiting all forms of bingo games, also encompassed operations via the Internet and on lineOn the other hand, any exemplification of a specific modality will weaken the generic character of the new prohibition. Thus, we voted, on the merits, against approval. I am a lawyer, and other professionals in the field are present. We know that any loophole, any oversight, is a door to starting all over again. We must provide exhaustive examples. If we do it halfway, we set precedents. Amendment No. 2, by including bingo and slot machines in the expression "electronic machines," makes the understanding vulnerable and subject to various, even contradictory, interpretations. If we refer to electronic machines, we will prohibit the use of arcade games, which are not games of chance and will affect people who do not deserve to be harmed. Therefore, our vote on the merits is against the approval of both Amendment No. 1 and Amendment No. 2. Amendment No. 3 proposes the distribution of resources collected from bingo games to projects to combat hunger in States and Municipalities. If that type of gambling is eliminated, how do you regulate its revenue? It's a... contradiction in terminisThe text is a contradiction in itself. Amendment No. 4 was deemed inadmissible due to financial and budgetary inadequacy. On the merits, we believe it should be disapproved, as it would theoretically allow for compensation from the Union to the States, whose Government authorized gambling based on laws and decrees without proper constitutional justification. Amendments Nos. 5 and 6 have already been considered in the relevant section of this opinion and, with due respect, deemed unconstitutional. Thus, they are inadmissible on the merits. We are equally opposed to the approval of both: Amendment No. 5, because it intends to determine, by law, that the Executive Branch will regulate bingo, the extinction of which is being proposed; Amendment No. 6, because it is equivalent not only to the rejection of Provisional Measure No. 168 of 2004, but also to the approval of extensive regulation of bingo games, without the prior and in-depth debate that such a measure would require. Four, Draft Law for the Conversion of Provisional Measure No. 168 of 2004. We present a Draft Law for the Conversion of Provisional Measure No. 168 of 2004, aiming at the following modifications to its text. The modifications are few; I aimed to preserve the Provisional Measure as much as possible. It is an exceptional measure, taken, I would say, in a state of necessity, after 3 years of studies, research, debates, and hearings. The Union had to intervene. Ah, it should be a bill. Yes, in theory, yes. But when would a bill of this nature be approved? When would it reach this plenary, with this LOBBY Without size? And does it arise imponderably? People whose origins we don't know, nor whether they are speaking for themselves or their guardians. The first change is a new wording for Article 1, providing greater clarity, which would now read as follows: The operation of all forms of bingo games, as well as games on electronic, electromechanical or mechanical machines known as slot machines, regardless of whether they are fictitious or not, is prohibited throughout the national territory.I added electromechanical or mechanical. Why? Because old machines were either electromechanical or mechanical. If I said electronics, someone might come along with mechanical and say: no, the interpretation is logical and excludes the mechanical or electromechanical bingo. In the single paragraph, we also propose a modification. The prohibition referred to in the heading of this article. Say it here now This implies an express removal of the public service nature previously conferred upon the operation of bingo games.I removed the expression. which is by derogation, to suspend the application of a criminal law.This is irrelevant because it already comes from the previous law; this provisional measure is establishing an administrative fine. It doesn't need to deal with criminal matters, especially matters that are already regulated in a previous law. That's what the Government says in its statement of reasons, and that's what I also affirm. That's my conviction. Second modification. In caput Regarding Article 1, we only added the law concerning electronic, electromechanical, and mechanical machines. I've already explained this. As for the sole paragraph, we understand that the removal of the public service nature, which was given to bingo by a provisional measure, and which state laws reiterate, had already been consummated since the repeal of Article 59 of the Pelé Law, Law No. 9.615 of 1998, by Law No. 9.981 of 2000, and from December 31, 2001 onwards. From that date onwards, the exceptional derogation of the rule in criminal matters relating to bingo became ineffective. In this case, the reiteration is admissible and important, due to Provisional Measure No. 2.216, 37th renewal, Article 17, which generated controversy. But in our understanding, the change in wording to Article 59 did not reinstate the article of Law 9.615 of 1998. Such a measure must be explicit and not implicit.stipulates Complementary Law No. 95, February 1998.Article 9 – The repeal clause must expressly list the same legal provisions that were repealed, as amended by Complementary Law No. 107 of April 2001.While this provisional measure changed the wording of Article 59 of the Pelé Law, which dealt with bingo, it did not reinstate Article 59 nor repeal the law that had repealed it. The change in wording was only in effect for a few months during the... vacatio legisAnd it couldn't be any different. Do you know why they created that provisional measure? To say it was a public service, and Caixa could grant concessions. That's all, nothing more. But Caixa didn't grant any. Caixa granted some before. But from then on, it didn't grant any more concessions. In fact, Judge Luiz Carlos de Castro Lugon, of the Federal Regional Court of the 8th Region, Rio Grande do Sul, in Appeal No. 20044019509/8, when suspending a preliminary injunction granted by a First Instance Judge against Provisional Measure No. 168 of 2004, used the following as one of his arguments: I consider Provisional Measure No. 168 of 2004 to be nothing innovative. Therefore, of an authentic interpretation nature. In reality, I don't entirely agree with His Excellency. It is a renewal of several norms, to say: You are in breach of the order, but it's here now. There's no more room for an injunction, so I'm saying again what has already been said. But there is a new element, which is the administrative fine. So, it cannot be said that it is a mere reiteration. It has a new administrative penalty. As can be seen, the Judge accepted with full recognition that article 51 of the Pelé Law had already been repealed by Law No. (unintelligible), of 2000.Second amendment: Deletion in art. 3rd, referring to the state, municipal and district authority bodies mentioned in art. 2o. It is as follows: in art. Thirdly, he says that the authorities mentioned in article... Secondly, Caixa Econômica and state, municipal and district authorities should terminate the contracts, revoke the authorizations, concessions, etc. First, I understand that this rule is unnecessary because the main rule is already in place: a declaration of illegality, nullity, and ineffectiveness of all those acts. Secondly, the Supreme Federal Court has already ruled that even the mere reference in one of the many laws that were made, stating that the State Finance Secretariats would oversee bingo, was not permissible. One could say that the State oversees, but one cannot say which agency it is. This falls under the jurisdiction of the State, which is autonomous, at least according to the Federal Constitution. It is our understanding that article... Article 2 of Provisional Measure No. 168 already embodies the main command to declare null and void all licenses, permits, concessions and authorizations for the operation of gambling activities provided for in the Provisional Measure, art. First, including state, district, and municipal authorities. The mandate granted to state, district, and municipal authorities seems unnecessary and, in a way, inconsistent with the federal system. Art. Article 3, therefore, would be amended to read as follows: Caixa Econômica Federal shall proceed with the unilateral and immediate termination of existing contracts by revoking the authorizations for the operation of the respective establishments exploiting bingo games and slot machines, without recognition of any compensation for losses. In this case, since Caixa Econômica Federal is a public and federal financial institution, such a determination is appropriate. Necessary observations: 1st – the existence of state laws enacted by different units of the Federation, States and the Federal District, authorizing and regulating games of chance, including the prediction contest, a type of federal lottery exploited by Caixa Econômica Federal, has made the gambling situation chaotic throughout Brazil; 2nd – in the interest of justice, it must be recognized that, among the entrepreneurs in the bingo area, not all have connections with illicit activities, and we must admit that not all do. However, the participation of the Italian mafia in a contract with a company exploiting electronic bingo games and, mainly, electronic slot machines, including the use of front men, has been proven; 3rd – it is an indisputable fact that the regulation attempted, first by the Zico Law and then by the Pelé Law, was unsuccessful, both in its objectives of providing necessary support to sports and due to the perverse effect of having disseminated gambling in the country in various forms; 4th – the fact that there was a Parliamentary Commission of Inquiry on bingo in 1995, while the Zico Law was still in effect, reveals that the problems justifying Provisional Measure No. 168 of 2004 are not recent, although they have worsened over time; 5th – the issue of unemployment affects everyone, and the Executive Branch will certainly consider this aspect of the matter under examination in its priority programs for job and income generation. Conclusion. For all the reasons stated above and in respect and based on everything I have read, I have listened, studied, researched, and with the absolute peace of mind that guides my public life, we vote to accept the text of Provisional Measure No. 168 of 2004, in the form of the conversion bill now presented, rejecting the 6 amendments offered, for the reasons already explained in this opinion. Thank you very much.