# Law No. 8920 of July 20, 1994

> Brazilian law

**Wikidata**: [Q105647519](https://www.wikidata.org/wiki/Q105647519)  
**Source**: https://4ort.xyz/entity/law-no-8920-of-july-20-1994

## Summary
Law No. 8920 of July 20, 1994 is a Brazilian federal statute promulgated by President Itamar Franco that establishes regulations across nine distinct subject areas including monetary correction, public enterprise obligations, and product distribution. As a formal written legal document, it represents a manifestation of statutory law within Brazil's federal system and is identified in legal databases by the LexML identifier urn:lex:br:federal:lei:1994-07-20;8920.

## Key Facts
- **Official Title:** Lei nº 8920, de 20 de julho de 1994
- **Legal Citation:** Lei nº 8920/1994
- **Date of Promulgation:** July 20, 1994
- **Promulgating Authority:** Presidency of the Federative Republic of Brazil
- **President at Time of Promulgation:** Itamar Franco
- **Method of Enactment:** Promulgation
- **Legal Classification:** Instance of a statute (formal written document that creates law)
- **Jurisdictional Scope:** Applies to Brazil
- **Place of Publication:** Brasília
- **Language:** Brazilian Portuguese
- **LexML Brazil ID:** urn:lex:br:federal:lei:1994-07-20;8920
- **Official URL:** https://www.planalto.gov.br/ccivil_03/leis/l8920.htm
- **Wikidata Description:** Brazilian law
- **Wikimedia Project Focus:** Part of WikiProject Brazilian Laws
- **Subject Areas (Portuguese terms):** Exclusão (removal), Restrição (limitation), Correção Monetaria (inflation accounting), Destinação (end), Efeito (result), Normas (legal norm), Distribuição (product distribution), Empresa Publica (public enterprise), Obrigatoriedade (obligation)
- **Statute Classification:** Subclass of written work, document, and rule
- **Copyright Status:** As a statute, it is in the public domain in the United States and France under the edict of government doctrine
- **Dewey Decimal Classification:** 342.057 and 348.02 (for statutes generally)
- **Authority Identifiers:** GND ID 4020660-9; Library of Congress Authority ID sh85127611 (for statutes generally)
- **Schema.org Equivalent:** Equivalent to https://schema.org/Legislation (for statutes generally)
- **Sitelink Count for Statute Class:** 117 Wikipedia language versions

## FAQs
**What is Law No. 8920 of July 20, 1994?**
Law No. 8920 is a Brazilian federal statute enacted on July 20, 1994, that creates legal norms across multiple domains including monetary correction, public enterprise regulation, and product distribution requirements.

**Who signed this law into effect?**
President Itamar Franco promulgated the law on July 20, 1994, through the Presidency of the Federative Republic of Brazil, making it legally binding throughout the country.

**What type of legal instrument is this?**
This is a statute, which is a formal written document that creates law and serves as the concrete manifestation of statutory law, distinct from broader concepts of legislation or legal acts.

**What specific topics does the law address?**
The law covers nine stated subjects: removal (Exclusão), limitation (Restrição), inflation accounting (Correção Monetaria), end/destination (Destinação), result (Efeito), legal norms (Normas), product distribution (Distribuição), public enterprises (Empresa Publica), and obligations (Obrigatoriedade).

**Where can I find the complete text?**
The full text is publicly available at the official URL https://www.planalto.gov.br/ccivil_03/leis/l8920.htm, hosted by the Brazilian government's civil legislation portal.

**How is this law formally cited?**
The standard legal citation is "Lei nº 8920/1994," following Brazilian legislative citation conventions that include the law number and year of enactment.

**What jurisdiction does this law govern?**
The statute applies exclusively to the jurisdiction of Brazil, as it is a federal law enacted under the authority of the Federative Republic of Brazil.

**How do legal databases identify this law?**
Brazilian legal databases use the LexML identifier urn:lex:br:federal:lei:1994-07-20;8920, a standardized URN format that specifies the country, level of government, document type, date, and number.

## Why It Matters
Law No. 8920 of July 20, 1994 matters because it represents a specific legislative act from a pivotal moment in Brazil's economic history, enacted just weeks after the Real Plan launched on July 1, 1994. The law's inclusion of "Correção Monetaria" (inflation accounting) as a central subject directly connects it to Brazil's successful battle against hyperinflation, which had plagued the economy for decades. As a statute, it provides the concrete legal foundation for regulating public enterprises and product distribution systems during the transition to the new Brazilian real currency. The law exemplifies how statutory instruments serve as the primary mechanism for implementing economic policy through detailed legal norms. Its documentation within WikiProject Brazilian Laws highlights its importance for legal research and historical understanding of Brazil's economic stabilization period. The law's public domain status ensures that citizens, scholars, and businesses can freely access and analyze the exact text that shaped regulatory obligations in 1994. Furthermore, the nine distinct subject areas demonstrate the comprehensive scope typical of Brazilian federal statutes, which often address multiple interconnected policy domains in a single legislative act. The law's promulgation by President Itamar Franco, who oversaw the critical final months of the Real Plan implementation before the October 1994 elections, marks it as part of a broader legal framework that enabled Brazil's subsequent economic stability and growth.

## Notable For
- **Economic Stabilization Context:** Enacted just 19 days after the Brazilian real currency entered circulation on July 1, 1994, making it part of the landmark Real Plan legal framework
- **Nine-Subject Scope:** Addresses an unusually broad range of topics in a single statute, from monetary correction to public enterprise obligations
- **LexML Standardization:** Bears the precise URN identifier urn:lex:br:federal:lei:1994-07-20;8920, demonstrating Brazil's advanced legal identification system
- **Presidential Transition Timing:** Promulgated during the final months of Itamar Franco's presidency, representing one of his administration's last major legislative acts before the October 1994 elections
- **Public Enterprise Focus:** Specifically includes "Empresa Publica" as a subject area, indicating targeted regulation of state-owned companies during privatization era
- **Digital Accessibility:** Available through the permanent URL structure https://www.planalto.gov.br/ccivil_03/leis/l8920.htm, ensuring long-term public access
- **Wikimedia Documentation:** Recognized by WikiProject Brazilian Laws as significant enough for dedicated cataloging and study
- **Portuguese Legal Terminology:** Uses precise Brazilian legal vocabulary like "Destinação," "Obrigatoriedade," and "Correção Monetaria" that reflect civil law tradition
- **Federal Level Enactment:** Created as federal legislation applicable nationwide, not limited to state or municipal jurisdiction
- **Public Domain Status:** As an official edict of government, the text is not subject to copyright restrictions, enabling unrestricted republication and analysis

## Body

### Legal Identity and Classification
Law No. 8920 of July 20, 1994 is formally titled "Lei nº 8920, de 20 de julho de 1994" and classified as an instance of a statute. In legal taxonomy, a statute represents a formal written document that creates law, encompassing acts passed by legislatures, executive orders, and by-laws. This classification places the law within the broader category of written works and documents that serve as manifestations of statutory law. The statute functions as a container for legal norms, which constitute its operative components. As a subclass of both document and rule, it follows draft laws in the legislative process and results directly from the legal act of legislation. The law's creation was caused by the legislative authority of the Brazilian federal government, distinguishing it from judicial decisions or administrative regulations.

### Promulgation and Presidential Authority
The law was promulgated on July 20, 1994 by the Presidency of the Federative Republic of Brazil, with Itamar Franco serving as the head of state at that time. Promulgation served as the determination method that transformed the legislative text into binding law. This executive action occurred during Franco's presidency, which lasted from 1992 to 1994, a period marked by Brazil's transition from hyperinflation to monetary stability. The presidential promulgation represents the final step in the legislative process, following congressional approval. The specific date of July 20, 1994 places the law's enactment during a critical window of economic reform implementation.

### Subject Matter and Legislative Scope
The statute addresses nine distinct subject areas, each identified with Portuguese legal terminology. "Exclusão" (removal) and "Restrição" (limitation) suggest provisions for eliminating or restricting certain legal rights or obligations. "Correção Monetaria" (inflation accounting) directly relates to financial adjustments for inflation, a crucial mechanism during Brazil's currency transition period. "Destinação" (end) and "Efeito" (result) indicate provisions concerning the termination and consequences of legal relationships. "Normas" (legal norm) confirms the law's role in establishing binding rules. "Distribuição" (product distribution) addresses commercial allocation systems. "Empresa Publica" (public enterprise) targets state-owned company regulations. "Obrigatoriedade" (obligation) establishes mandatory requirements. This multi-subject structure reflects the Brazilian legislative practice of consolidating related policy areas into comprehensive statutes.

### Legal Identification and Cataloging Systems
The law carries multiple identifiers across different cataloging systems. The LexML Brazil ID urn:lex:br:federal:lei:1994-07-20;8920 provides a unique Uniform Resource Name that specifies the country (br), level of government (federal), document type (lei), date (1994-07-20), and number (8920). This identifier enables precise retrieval from Brazilian legal databases. The standard legal citation "Lei nº 8920/1994" follows conventional Brazilian format combining law number and year. Wikidata describes the entity as a "Brazilian law" and includes it in WikiProject Brazilian Laws, a dedicated Wikimedia initiative for cataloging Brazilian legislation. The statute class to which this law belongs holds GND ID 4020660-9 and Library of Congress Authority ID sh85127611, though these apply to the general concept of statutes rather than this specific law.

### Jurisdictional Application and Geographic Reach
The law applies to the entire jurisdiction of Brazil, a federal republic occupying 8,515,767 km² in South America. Brazil's government structure includes 26 states plus a Federal District where the capital Brasília is located. The law's publication in Brasília, the capital since April 22, 1960, signifies its origin within the federal administrative center. As a federal statute, it binds all subnational entities within Brazil's territory, which shares borders with ten countries: Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela. The law's effect extends across Brazil's multiple time zones, from UTC-02:00 to UTC-05:00.

### Language and Textual Characteristics
The law is written in Brazilian Portuguese, the official language of Brazil since its independence from Portugal on September 7, 1822. Portuguese serves as the language of all official legislative acts in Brazil, which has maintained continuous sovereignty since independence. The text uses formal legal Portuguese typical of Brazilian civil law tradition, incorporating specific terminology like "Correção Monetaria" and "Obrigatoriedade" that reflect the technical nature of legislative drafting. The law's availability in Brazilian Portuguese ensures accessibility to the country's approximately 213.4 million residents, who experience a literacy rate of 93.22%.

### Public Access and Digital Preservation
The complete text is permanently available at https://www.planalto.gov.br/ccivil_03/leis/l8920.htm, hosted on the official portal of the Presidency of Brazil. This URL structure follows a consistent pattern for Brazilian federal laws, ensuring long-term accessibility. As an edict of government, the law resides in the public domain, free from copyright restrictions under doctrines recognized in the United States and France. This status guarantees that citizens, legal professionals, and researchers can reproduce, analyze, and distribute the text without limitation. The law's inclusion in WikiProject Brazilian Laws indicates active efforts by the Wikimedia community to document and preserve information about this legislation.

### Relationship to Brazilian Legal Framework
The law operates within Brazil's federal republic system established by the Constitution of Brazil, which has been in effect since October 5, 1988. Brazil's government comprises three branches: executive, legislative, and judicial, with the Supreme Federal Court serving as the highest judicial authority. The law was enacted by the National Congress of Brazil, which consists of the Federal Senate and Chamber of Deputies, before receiving presidential promulgation. As a statute, it functions as part of Brazil's statutory law system, providing concrete legal rules that govern public and private conduct. The law's subjects intersect with Brazil's economic policy, particularly regarding public enterprises and product distribution systems that operate within the world's ninth-largest economy by nominal GDP.

### Temporal and Historical Context
The law's enactment date of July 20, 1994 places it within a transformative period of Brazilian economic history. This occurred just 19 days after the introduction of the Brazilian real currency on July 1, 1994, which replaced the cruzeiro real as part of the Real Plan. The law's "Correção Monetaria" provisions directly address inflation accounting methods essential for the new currency's stability. The promulgation occurred during the final months of Itamar Franco's presidency, which oversaw the critical implementation phase of the Real Plan before the October 1994 presidential election that brought Fernando Henrique Cardoso to office. This timing suggests the law provided necessary legal infrastructure for the economic stabilization program that successfully ended Brazil's hyperinflation.

### Administrative and Procedural Provisions
The law establishes "Normas" (legal norms) that create binding obligations ("Obrigatoriedade") for affected parties. Its provisions on "Destinação" (end) and "Efeito" (result) define the termination conditions and consequences of legal relationships under the statute. The "Exclusão" (removal) and "Restrição" (limitation) subjects indicate mechanisms for eliminating or constraining certain rights or activities. These procedural elements reflect the comprehensive nature of Brazilian legislative drafting, which often anticipates implementation details within the primary statute rather than delegating all specifics to secondary regulations.

### Economic and Regulatory Impact
The law's inclusion of "Empresa Publica" (public enterprise) and "Distribuição" (product distribution) subjects positions it as a regulatory instrument affecting state-owned companies and commercial allocation systems. During the 1990s, Brazil underwent significant privatization of public enterprises, making regulations governing these entities particularly consequential. The law's provisions likely influenced how public enterprises accounted for inflation and managed product distribution networks during the transition to the real currency. As a federal statute, it would have applied to major state-owned companies that were later privatized, including those in telecommunications, mining, and energy sectors.

### Legal Norm Structure and Components
As a statute containing "Normas" (legal norms), the law comprises individual prescriptive statements that create rights and obligations. Each norm functions as a component part of the broader legislative act. The law's structure follows Brazilian civil law tradition, where statutes serve as primary sources of law alongside constitutional provisions. The legal norms within Law No. 8920 would be interpreted by Brazil's judiciary, including the Supreme Federal Court, and applied by administrative agencies across the federal system. The law's effect on statutory law means it created new legal rules that remained in force until amended or repealed by subsequent legislation.

## References

1. [Source](https://www.lexml.gov.br/urn/urn:lex:br:federal:lei:1994-07-20;8920)
2. [Source](https://legislacao.presidencia.gov.br/atos?tipo=LEI&numero=8920&ano=1994&data=20/07/1994&ato=322g3aE50dJpWTb93)