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Politics X-ray of the Omnibus Law: the number of laws it proposes to repeal and the articles it seeks to modify - Infobae

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X-ray of the Omnibus Law: the number of laws it proposes to repeal and the articles it seeks to modify - Infobae
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January 07, 2023

Analysis of the different segments of the megaproject promoted by Javier Milei to deregulate the economy and implement changes that reach almost all sectors and activities in the country.


By Sandra Crucianelli and Mariel Fitz Patrick

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The debate on the extensive “Omnibus Law” project to reform the State that the Government included in the call for extraordinary sessions will begin on Tuesday in the first joint information meeting of the Budget and Finance Commissions; Constitutional Matters; and General Legislation of the Chamber of Deputies. The ruling party intends to accelerate the treatment to try to approve it before the end of January, and thus avoid extending the extraordinary sessions. The president of the Chamber of Deputies, Martín Menem, has already determined that these three areas of work will be responsible for ruling on the megaproject promoted by Milei.

The text includes 664 articles, plus 6 annexes , which throughout 351 pages that if approved, implies profound changes in economic, tax, financial, energy, health, administrative, electoral, pension, social, educational, and security. It covers from an ambitious political reform and a new modality of establishing mobility retirement, until modifications in tax matters and in the agricultural withholdings,< /span>, among many other areas.trial by juriesand the mental health law , until thesimplified divorce and legitimate defense and the privatization of public companies. It also refers to different aspects of citizens' lives ranging from changes in the interpretation of tax laundering a.

Called “Bases and Starting Points for the Freedom of Argentines”, as a first measure, requests a broad legislative delegation to the national Executive Branch until December 31, 2025, extendable until 2027, upon declaring “the public emergency in economic, financial, fiscal, social, and pension matters , security, defense, tariffs, energy, health and social.”

The mega project includes 10 titles that encompass 38 chapters. The first begins with the Object, Guiding Principles and the justification of the emergency declared in the law. “The purpose of this law is to promote private initiative, as well as the development of industry and commerce, through a legal regime that ensures the benefits of freedom for all inhabitants of the Nation and limits all state intervention other than the necessary to ensure constitutional rights.”

The rest refers to the Administrative Reorganization; Economic Reorganization; Security and Defense; Justice; Interior, Environment, Tourism and Sports; Human capital; Public health; Infrastructure, Services and Associated Activities; and finally the Final Provisions.

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Of the total of 664 articles in the main body, 266 correspond to economic changes and 114 to changes in the area of Human Capital, according to the analysis carried out by Infobae.
The Justice section covers 95 articles, reflecting the legal and judicial reforms, while the Interior, Environment, Tourism and Sports section includes 61. The measures on Security and Defense are contained in 23 articles, and the Infrastructure and Services section Associated Activities, at 28.

To the 664 articles in the central body of the project, there are added 283 more, included in 6 annexes: the List of Public Companies Subject to privatization, the Large Investment Incentive Regime (RIGI), the Law on Defense of Competition, the Law on Succession Processes, the sectors included in the RIGI, and the Law on Jury Trials. In total, there are 947.

As for the privatization of public companies, the project justifies it to generate “greater competition and economic efficiency, reduce the tax burden , improve the quality of services, promote private investment and professionalize management.” In this sense, it establishes that public limited companies will be established, “in which the national Executive Branch may retain an action with the right to veto in decisions that imply the closure of the activity.” The project lists in Annex I the 41 companies subject to privatization, among which YPF, Aerolíneas Argentinas, AYSA, Correo Argentino, Banco de la Nación Argentina (BNA), Energía Argentina SA (IEASA), Railway Operator, Radio and Television Argentina (RTA), Road Corridors, and Río Turbio Carboniferous Deposits (YCRT), among others. Through the repeal and modification of two articles of the Nuclear Activity Law, Nucleoeléctrica Argentina SA was included.

THE project includes the complete repeal of 14 laws and 150 articles that modify another 21 regulations, a Decree of Necessity and Urgency and 5 common decrees.
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Of the 14 laws to be repealed, 13 do not have alternative laws. Only one - the Competition Defense Law - proposes a new one in place of the current one to “simplify and make transparent the selection process of members of the Competition Defense Court” and “empower the new Markets and Competition Agency to investigate anti-competitive conduct by public bodies.” At the same time - according to the text - “violations of the defense of competition are better classified.”

The regulations that the text seeks to eliminate completely are: the tariff law for the importation of sugar; that of the uniform retail price of books; which regulates the installation and use of systems for the reception of broadcasting signals from satellites; the authorization and operation of establishments where animals are slaughtered, products of animal origin are manufactured and stored; which authorizes the Police of the Province of Buenos Aires to import secret security material; that of tax exemptions intended to promote the construction, equipment and operation of new hotels for international tourism; that of promoting tourism through transport lines; which stipulates that in the event of demolition of theater halls, the owner will have the obligation to build another hall with the same characteristics in the new building; and discounts for artists on tickets from state transportation companies.

In addition, it proposes to repeal the laws creating the National Institute against Discrimination, Xenophobia and Racism (INADI); from the National Theater Institute; the law of the Museum, Library and Archive of Labor and the Argentine Labor Movement; and the decree-law that created the National Arts Fund. There are other organizations such as the National Institute of Cinema and Audiovisual Arts (INCAA), the National Commission of Popular Libraries ( CONABIP) and the National Institute of Music (INAMU), which will undergo modifications in their structure.

Culture is the most affected area in terms of repeal of articles (57) of current regulations, followed by the Energy sector (26) and Justice (22).

Almost at the end of the project, an article was included that “ratifies” the mega decree of necessity and urgency N°70/2023, which generated rejection from different sectors and adverse rulings in justice, which in parallel will be addressed in the Bicameral Commission for Legislative Procedure, which has not yet been established.

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The main points​

The project opens the door for public works to be financed by private parties, and provides for the renegotiation or termination of contracts in execution “for emergency reasons”. For public works contracts that, as of the date of enactment of the law, have expired and with pending litigation issues, an instance is opened for the concessionaire to submit pending contractual differences to the dispute resolution mechanism provided for new contracts. projects.

The articles referring to public health are the least numerous, just 8. The project proposes changes in 8 of the 46 articles of the national Mental Health Law. Among them, involuntary hospitalizations, the existence of specialized hospitals, and the granting of discharge, externation or exit permits to be the power of the health team, without requiring authorization from the judge.

In educational matters, the Government's intention is that, at the end of secondary school, students have to take an integrative exam to accredit their level of performance, and the possibility for parents to be aware of their children's grades and those of the school, and to be able to compare them with those of the rest of the country. Degree studies at public universities will continue to be free for Argentines and permanent resident foreigners, but a fee may be charged for foreigners who come to study.

To the repeal of the 150 articles of 21 laws is added the suspension of one, without clarification of the period or for how long, referring to the mobility of retirement assets. The proposal is that the PEN be the one to establish the increase in benefits “taking into account the criteria of equity and economic sustainability.” Article 106 of the project makes it explicit: “Until an automatic formula is established, the national executive branch may make periodic increases, giving priority to the lowest-income beneficiaries, that is, those who need it most and with the money they is available.”


In criminal matters, it proposes five modifications to the Penal Code. One of them incorporates new controls on demonstrations and increases the penalties for those who block the street and prevent the normal functioning of transport. In addition, it especially sanctions the organizers of the cuts and makes them jointly responsible for any damages that may occur. It also establishes the obligation to “reliably” notify the Ministry of Security of any “meeting or demonstration, and the body may oppose it due to “issues that affect the safety of people or national security.”

The modifications reach the interpretation of “legitimate defense”. It establishes that “the proportionality of the means used must always be interpreted in favor of whoever acts in compliance with his or her duty or in the legitimate exercise of his or her right, authority or position.” The expansion of the figure also includes justification in the act of defense "when a difference in age, physical build, experience in a fight or the number of aggressors could reasonably make the person defending himself fear harm to his physical or sexual integrity." ”, and if the attacker carries a fake weapon, or uses a weapon while fleeing the scene of the attack.

In addition, it proposes the implementation of the system of jury trials for federal crimes, with sentences greater than five years, throughout the national territory .

The reform of the Political Party Financing Law provides for the repeal of 17 articles, which eliminate the maximum limit on donations per person and companies to a party or candidate for the electoral campaign, and for the party's institutional functioning. It also eliminates the electoral spending limit for each group.

In the chapter political reform the Open, simultaneous and mandatory primaries (PASO) are also repealed and restores the electoral calendar prior to the 2009 reform. At the same time, it is proposed to change the legislative representation of the provinces, eliminating seats of deputies in the less populated districts, and adjusting their number by population, so that the Lower House would go from 257 to 254 members.

As for the National Electoral Code, it proposes replacing 7 articles to change the current system of electing deputies and dividing the country into 254 constituencies , with the election of a representative in each of them. This would replace the D'Hondt system of proportional representation with one of single-member constituencies, in which a candidate can win by one vote. The parties would present a single candidate per constituency.

Likewise, it will seek to annul 12 articles of Law 23,905 on different tax modifications, which includes to the Property Transfer Tax (ITI), a levy on the sale of properties that are not single and permanent homes, purchased before January 1, 2018.

Regarding fishing activity, the Omnibus Law provides for 10 modifications, which generated criticism from the Patagonian governors and the mayor of Mar del Plata, Guillermo Montenegro. Ignacio Torres, Rolando Figueroa, Alberto Weretilneck, Claudio Vidal and Gustavo Melella They opposed the changes with the argument that they would allow the elimination of the obligation to unload in Argentine ports; the replacement of the current system for assigning catch quotas with one of tenders with fewer requirements, which would complicate the possibilities of national companies to compete; and the elimination of the obligation to hire personnel of Argentine nationality. The complaint was addressed and the Minister of the Interior, Guillermo Francos, announced on Thursday that some of these aspects will be reviewed, without further details.

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Guillermo Francos, Minister of the Interior, together with the governor of Chubut, Ignacio Torres, and the mayor of Mar del Plata, Guillermo Montenegro
The tax laundering proposed is developed in 53 articles. According to the text sent to Congress, it will be allowed to regularize up to USD 100,000 in cash, bank deposits, participation in companies, real estate or cryptocurrencies, inside and outside the country , without paying taxes. The deadline to join the regime will be extended until November 30 of next year, it will not be necessary to “provide additional documentation or information regarding joining the regime.”

At the same time, in the tax chapter, it provides for a moratorium on Tax, Customs and Social Security Obligations “with the in order to achieve voluntary payment of obligations.” Taxpayers will be eligible for debts as of November 30, and up to 150 calendar days have elapsed. Acceptance of the regime will result in the suspension of tax, customs and social security criminal actions in progress.

As for export rights, it establishes that products from regional economies that today do not have export rights, will be taxed at 15 %. In the case of soybeans, the grain will continue with 33%, but the Government will increase the rate from 31 to 33% for flour and oil.

On the labor front, one of the chapters refers to the promotion of registered employment. The text that the deputies will begin to debate contemplates benefits for those employers who regularize the situation of their employees by promoting labor laundering. The project enables the “extinction of criminal action” and “condonation of infractions, fines and sanctions” for irregularities in the hiring of an employee. In addition, it could cancel the Registry of Employers with Labor Sanctions (REPSAL), created during Kirchnerism.

Although the ruling party hopes to be able to take advantage of the “honeymoon” that the president is going through Javier Milei in public opinion to speed up approval of the law, the treatment of the initiative was delayed due to the lack of speed of the ruling party to form the commissions in charge of debating it. He was only able to do so on Thursday, in the midst of strong clashes that ended in a scandal and the claim of the Kirchnerists and the left. However, in the Government they assure that they are determined to maintain the limit set in the call for Extraordinary Sessions. “We are not evaluating it,” said presidential spokesman, Manuel Adorni, in his daily press conference on Friday. from last Friday.

Data visualization: Andrés Snitcofsky
 
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