The House of Representatives passed on 14/08/2013 Bill 323/07, as an alternative bill, which provides for the allocation of a portion of the royalties in the areas of education and health and special participation in the exploration of oil and natural gas.

The bill sets forth that the Federal Government, States and the Federal District’s direct administration entities’ revenues from royalties and special participation deriving from the areas whose commercial viability declaration occurred from 3 Dec 2012 on, related to contracts entered under concession, onerous assignment and shared production regimes, in existing contracts or in contracts whose related operation started up to 3 Dec 2012, will have 75% of the royalties allocated to education and the remaining 25% to health care.

In addition to the provisions mentioned in the previous paragraph, education will receive 50% of the resources of the Social Fund cited in art. 47 of Law No. 12.351.

The distribution of royalties was the target of other legislative proposals such as for example Provisional Presidential Decree (MP) No. 592/12, which had already allocated all the funds from the royalties to education, but only in regards to new contracts. This MP expired in May 2013.