President Luiz Inácio Lula da Silva (PT) sanctioned, with vetoes, the law that creates a new Legal Framework for Collective Public Transport in the country. The rule was published in the Official Gazette of the Union (DOU) this Monday (15). The new law changes the rules of public transport in the country, and seeks to improve the quality of services and reduce dependence on fares paid by users as the system's main source of resources. Among the changes, the law provides for more transparency about the costs of transport companies, establishes goals for areas such as punctuality, safety and accessibility and encourages the use of less polluting technologies. The objective is to provide more stability to the sector's financing and improve service to the population. Now on g1 See the main points: What changes in public transport financing? Today, public transport depends mainly on the fare paid by users. The new law attempts to create other ways of financing the system to ensure its sustainability. One of the changes is that bus companies are no longer remunerated solely for the number of passengers transported. They may receive payment, for example, based on the number of kilometers traveled. The idea is to prevent companies from reducing schedules or cutting less busy lines just to save money, which tends to harm residents in more remote regions. The law also allows resources from real estate appreciation, contributions from large projects and specific government funds to be used to help finance transport infrastructure. At the same time, the legislation makes it clear that private individual transport services, such as ride-hailing apps, cannot receive public subsidies. Free and discounts The new law maintains the possibility of offering free fares and discounts, but the government vetoed sections that forced states and municipalities to fully pay for these benefits with their own resources. According to the government, this obligation could create expenses without budgetary forecast and even put existing benefits at risk. Vetoes do not prevent governments from continuing to grant subsidies to pay for free services; they simply remove the legal obligation to do so. More transparency and oversight The law requires more transparency from companies that operate public transport. They will have to disclose data on costs, revenue, kilometers traveled and number of passengers transported. The objective is to facilitate inspection by public bodies and allow greater control by society over contracts. Furthermore, the federal government will be able to issue general standards to guide states and municipalities on good management and inspection practices. Quality goals The new legislation establishes minimum quality criteria for public transport services, including: Regularity and punctuality of travel; Passenger safety; Accessibility for people with disabilities; User comfort; Lower environmental impact; Integration with other means of transport. New rules for contracts The law modernizes contracts between governments and transport companies. Contracts may include productivity and cost reduction targets. It also becomes mandatory to carry out bidding for the operation of services, avoiding contracts considered precarious. Furthermore, the public authorities will be able to contract, in a complementary manner, on-demand transport services via app, as long as they do not harm essential regular lines. Cross subsidies The legislation allows lines or services that earn more to help finance those that operate at a loss, helping to maintain service in less profitable areas. Environmental sustainability The law encourages the gradual replacement of fossil fuels with cleaner energy sources, with the aim of reducing pollutant emissions in public transport. What did the vetoes change? The president vetoed provisions that: They obliged states and municipalities to fully pay for gratuities and discounts; They provided for mandatory federal subsidies for local tariffs; They determined exemption from tolls for buses on state and municipal highways; They created new permanent expenses for governments; They obligatorily reserved part of the Cide-Combustíveis resources for urban transport. According to the government, the vetoes were made to avoid spending without budget forecasts, preserve the autonomy of states and municipalities and reduce fiscal risks. In practice, the new law seeks to create alternative sources of financing for public transport, increase the transparency of contracts, improve the quality of service and encourage less polluting means of transport, without imposing new mandatory expenses on governments.