official translation

REPUBLIC OF LITHUANIA

LAW

ON THE AMENDMENT OF THE LAW ON

LOCAL SELF-GOVERNMENT

7 July 1994, No. I-533

Vilnius

(As amended by 8 November 2001 No. IX-585)

Article 1. Revised Version of the Law of the Republic of Lithuania on Local Self-government

The Law of the Republic of Lithuania on Local Self-government shall be amended to read as follows:

”REPUBLIC OF LITHUANIA

LAW

ON LOCAL SELF-GOVERNMENT

CHAPTER ONE

GENERAL PROVISIONS

Article 1. Purpose of the Law

The purpose of this Law - to promote and develop local self-government as the foundations of the development of a democratic State.

Article 2. Objective of the Law

This Law shall establish the procedure of the formation and activities of local authorities when implementing the provisions of the Constitution of the Republic of Lithuania and the European Charter of Local Self-government, define the principles of local self-government, local authorities, their powers and functions, a status of a municipal councillor, the grounds of economic and financial activities of municipalities.

Article 3. Main Definitions of this Law

1. “Municipality” means an administrative unit of the territory of the State which has the status of a legal person and the right to self-governance guaranteed by the Constitution of the Republic of Lithuania, implemented via a municipal council.

2. “Local self-government” means the right of an administrative unit of the territory of the State - a municipality - to freely and independently manage affairs in accordance with the Constitution and laws of the Republic of Lithuania via a municipal council consisting of representatives directly elected by the population, as well as via executive institutions formed by a municipal council.

3. “Local authorities” means a representative institution - a municipal council and executive institutions - a municipal board (hereinafter referred to as “a board”), a municipal mayor (hereinafter referred to as “a mayor”), having the rights and duties related to local government and public administration. Local authorities are responsible for the implementation of the right to self-governance and their functions for community interests.

4. “Municipal control institution” means a municipal controller who controls the use of a municipal budget and performs the functions of internal audit of a municipality.

5. “Enterprises controlled by a municipality” means municipal enterprises operating in accordance with the Law on State and Municipal Enterprises, as well as public companies the shares whereof, giving more than ½ of votes at a general meeting of shareholders, belong to a municipality by the right of ownership.

6. “Entities of municipal administration” means local authorities and agencies subordinate to them, as well as other entities who have the powers delegated to them by legal acts, carry out the functions of administration and are responsible for the implementation of such functions.

7. “Local government employees” means persons who, according to the Law on Public Service, have acquired a status of a public servant and carry out public administration, economic or technical functions at local authorities or municipal agencies, or provide public services to the population.

8. “Functions of municipalities” means functions related to public administration and provision of public services attributed to municipalities by this and other laws.

9. “Community” means people residing in an appropriate territory, who are connected with common public needs and interests.

Article 4. Principles of Local Self-government

Local self-government shall be based on the following principles:

1) accountability to voters. Members of a municipal council (hereinafter referred to as “councillors”) shall be responsible and accountable to voters for their activities;

2) participation of the population in the management of public affairs of a municipality. Local authorities shall provide conditions for the population to directly participate in drafting decisions, organising polls, meetings, assemblies, public consideration of petitions, as well as promote other forms of civic initiatives. Local authorities shall implement principles of self-governance in educational, cultural and other institutions, support initiatives of public organisations related to the management of public affairs of a municipality;

3) adjustment of local government and State interests while managing public affairs of municipalities;

4) freedom and independence of the activities of local authorities when they, while implementing laws, other legal acts and obligations to the community, adopt decisions;

5) transparency of activities. Activities of local authorities and other entities of public administration of a municipality must be transparent and easily understandable to the population who express interest in such activities, they shall be provided with possibilities to receive explanations what and why is done;

6) adjustment of interests of the community and individual residents of a municipality. Decisions adopted by local authorities with respect to the interests of the community may not violate individual residents’ rights guaranteed by the law;

7) publicity and response to residents’ opinion. The population or their representatives shall be entitled to get access to decisions adopted by local authorities, to receive public and justified answers to expressed opinion on work done by local authorities and other entities of public administration of a municipality, as well as individual employees. Activities of entities of public administration of a municipality may be secret or confidential only in cases specified by the law;

8) lawfulness of the activities of a municipality and decisions adopted by local authorities. Activities of local authorities and other entities of public administration of a municipality, as well as decisions adopted on all the issues related to their activities must be in compliance with requirements of laws and other legal acts;

9) ensuring and respect for human rights and freedoms. Decisions adopted by local authorities or local government employees may not infringe human dignity, rights and freedoms.

CHAPTER TWO

FUNCTIONS OF MUNICIPALITIES

Article 5. Functions of Municipalities

1. Functions of municipalities shall, according to discretion to adopt decisions, be divided as follows:

1) independent. A municipality shall exercise such functions in accordance with the competence granted by the law, obligations to its community and for the interests thereof. When implementing the said functions, a municipality shall have the freedom of initiative of decisions, their adoption and enforcement, and shall be responsible for the fulfilment of the said functions;

2) assigned (of limited independence). When implementing this and other laws, as well as other legal acts adopted on the basis thereof, a municipality shall exercise such functions taking into consideration local conditions and circumstances;

3) State (delegated to municipalities). These shall be State functions delegated to a municipality, taking into consideration interests of the local population. The said functions shall be delegated by the law and implemented in compliance with legal acts. When implementing the said functions, a municipality shall have the freedom of adoption of decisions, as prescribed by the law;

4) contractual. The implementation of such functions shall be based on contracts.

2. Functions of municipalities shall, in accordance with their type, be divided into public administration and public service provision functions. Public administration functions shall, in the manner prescribed by the law, be exercised by the municipal council, municipal controller, the board, the mayor, municipal administration, as well as other agencies, services, local government employees who are granted the rights of public administration in the territory of a municipality by legal acts or decisions of the municipal council. Public services shall be provided by service providers established by municipalities or other legal and natural persons under contracts concluded with municipalities.

Article 6. Independent Functions of Municipalities

The following independent functions shall be established:

1) pre-school education;

2) additional education and , vocational training of children and youth;

3) informal education of adults;

4) provision of meals at institutions of pre-school and general education;

5) establishment, maintenance of agencies of social services, and co-operation with public organisations;

6) support of health care of the local population from the municipal budget;

7) organisation of people’s employment, acquiring of qualification and re-qualifying, public and seasonal works;

8) participation in ensuring public order and peace (creation and implementation of local programmes on crime control and prevention, requesting the services of police agencies operating in the territory of a municipality, as well as including public organisations and residents in the said activities);

9) development of physical training and sports;

10) organisation of tourism and recreation;

11) establishment of territories protected by a municipality, declaring objects of nature and cultural heritage of local significance the objects protected by the municipality;

12) creation of conditions for the development of business and promotion of such activities;

13) other functions which are not assigned to state institutions.

Article 7. Assigned Functions (of Limited Independence) of Municipalities

Assigned functions (of limited independence) of municipalities shall be as follows:

1) organisation of general education of children, youth and adults;

2) organisation of transportation to schools and to places of residence of pupils of rural schools of general education, who live far from schools;

3) protection of the rights of children and youth, ensuring of education of children under 16 years of age who live in the territory of a municipality, at schools of general education or other schools within the education system;

4) provision of social services and other social support;

5) creation of conditions of social integration into the community of the disabled (invalids, persons with total disability);

6) preparation and implementation of health programmes of municipalities;

7) primary personal and public health care;

8) control of compliance with the prohibition or restriction of alcohol and tobacco on exterior means of advertising;

9) territory planning, implementation of solutions of a general plan and detailed plans of the territory of a municipality;

10) promotion of general culture and ethnoculture of the population (establishment of museums, theatres and other cultural institutions and supervision of their activities), establishment of public municipal libraries and supervision of their activities;

11) establishing, in the manner prescribed by the law, of urban planning requirements for architecture of a construction works and putting of a construction plot in order in the set of construction works designing conditions;

12) maintenance and protection of the landscape, immovable cultural values and protected areas established by a municipality;

13) supervision of the use of construction works, issuance of a set of construction works designing conditions and permits to build in the manner prescribed by the law;

14) planning of the infrastructure, social and economic development, preparation of programmes related to the development of tourism, housing, small and medium enterprises;

15) management, use and disposal of the land and other property which belong to a municipality by the right of ownership;

16) organisation of heating and drinking water supply, as well as waste water collecting and treatment;

17) management of State aid to acquire housing, provision of social housing;

18) improvement and protection of environment quality;

19) approval of sanitary and hygiene rules and organisation of the control of compliance with the said rules, ensuring of cleanliness and tidiness in public places;

20) development of municipal waste management, organisation of secondary raw materials collecting and processing, as well as establishment and exploitation of waste dumps;

21) maintenance, repairing, surfacing of roads and streets of local significance, as well as ensuring of traffic safety conditions;

22) organisation of transportation of passengers by local routes;

23) provision of addresses (names of streets, buildings, construction works and other objects located in the territory of a municipality and belonging to it by the right of ownership, numbers of buildings and residential houses as well as flats) and change thereof;

24) ensuring of rendering of burial services and organisation of maintenance of cemeteries;

25) participation in the formation and implementation of regional development programmes;

26) establishment of the procedure of rendering of trade and other services in marketplaces and public places;

27) issuance of permits (licences) in cases and manner prescribed by the law.

Article 8. State (Delegated to Municipalities) Functions

State (delegated to municipalities) functions shall be as follows:

1) registration of acts of civil status;

2) management of registers assigned by the law and furnishing of data to State registers;

3) organisation of civil protection;

4) organisation of fire-prevention services of a municipality;

5) participation in the management of national parks;

6) calculation and payment of compensations (heating expenses, cold and hot water expenses, government-supported passenger services and others);

7) organisation of free-of-charge meal provision for children from low-income families at all types of general education schools;

8) calculation and payment of social benefits;

9) management, use and hold in trust the State land and other State property assigned to a municipality;

10) consideration of citizens’ requests to restore ownership rights to dwelling houses, their parts, flats, buildings used for economic and commercial purposes, as well as adoption of decisions on the restoration of ownership rights;

11) execution of State guarantees for tenants moving out from dwelling houses or their parts and flats which are returned to owners;

12) preparation of documents for granting of citizenship;

13) control of use and accuracy of the State language;

14) management of archival documents assigned to municipalities in accordance with legal acts;

15) participation in selecting draftees for military service;

16) provision of statistical data;

17) participation in preparing and implementing labour market policy measures and employment programmes;

18) participation in the organisation of elections of the President of the Republic, elections to the Seimas and to municipal councils;

19) participation in the preparation of plebiscites and referendums;

20) participation in the carrying-out of population and dwelling census and other total census;

21) entering of the data on the citizen’s permanent place of residence in the passport of the citizen of the Republic of Lithuania and documents related to accounting of the data on permanent places of residence;

22) other functions delegated by the law.

Article 9. Contractual Functions of Municipalities

1. Municipalities may exercise other State functions (public administration and public service rendering), which are not provided for in this Law, under contracts concluded with State institutions or agencies. A municipality may conclude such contracts only in the event that the municipal council gives its consent. Contracts shall be concluded and executed in compliance with the provisions of the Civil Code and other laws. Usually, contractual functions shall be short-term or seasonal.

2. For general purposes a municipality may conclude joint activity contracts or public procurement contracts with State institutions and (or) other municipalities.

CHAPTER THREE

RENDERING OF PUBLIC SERVICES

Article 10. Basic Provisions of Rendering Public Services

1. A municipality shall be responsible for rendering public services to residents.

2. Public services shall be provided to residents for payment and free of charge.

3. A municipality shall organise the rendering of public services through existing providers of public services (budgetary and public agencies, municipal enterprises, companies and other entities), by establishing new providers of public services (public and other agencies and enterprises) or by concluding public service rendering contracts with natural and legal persons.

4. When rendering public services to residents, providers must act in compliance with laws, decisions of local authorities and other legal acts.

5. Municipalities shall establish new providers of public services only in cases when other providers are not rendering public services or cannot render the said services to residents economically and of good quality.

6. When establishing new providers of public services, a municipality must seek that public services which are rendered for payment, would be economically rational and that a fix payment for them would cover the expenses of rendering of such services and other expenses of the provider related to the rendering thereof, but that the rendering of such services would not turn into profit-seeking activities.

7. A municipality must seek that all residents of the municipality could make use of public services and that such services would be rendered constantly.

CHAPTER FOUR

LOCAL AUTHORITIES, ESTABLISHMENT AND POWERS THEREOF

Article 11. General Provisions

1. An institution which implements the right to self-governance shall be a municipal council.

2. Statutory administrative legal acts adopted by the municipal council may be suspended or repealed by the municipal council itself. Statutory administrative legal acts adopted by the board may be suspended or repealed by the board itself or by the municipal council. Statutory administrative legal acts adopted by the mayor may be suspended or repealed by the mayor or the municipal council. Statutory administrative legal acts adopted by public administration entities of a municipality may be suspended or repealed by the mayor or the board, or the council. Statutory administrative legal acts adopted by local authorities or other public administration entities of a municipality may be suspended by a representative of the Government in the county. He may also appeal to the court for the repeal of such acts.

3. Any municipal institution specified in paragraph 2 of this Article, upon having repealed a statutory administrative legal act of another municipal administration entity, shall, when necessary, refer the issue for a new consideration to the administration entity whose act has been repealed, or it shall consider such issue anew and adopt a statutory administrative legal act on this issue, or it shall recognise that such act is not necessary.

4. Individual administrative legal acts adopted by local authorities and other public administration entities of a municipality may be appealed against in the court.

Article 12. Municipal Council

1. The municipal council shall consist of the representatives of the community of a municipality which are democratically elected in the manner prescribed by the law.

2. Procedure and form of the activities of the municipal council shall be established by the Law and the regulations of the municipal council.

3. The powers of the municipal council shall start when the elected councillors gather to the first sitting, and shall expire when councillors elected for a new term of office gather to the first sitting.

4. A municipal mayor must be elected and a board must be formed within two months from the convocation day of the first sitting of a newly elected municipal council.

5. If the election results of a newly elected municipal council are deemed invalid, the powers of the existing municipal council shall last until the first sitting of the municipal council which shall be elected during a run-off election, or until temporary introduction of direct rule into the territory of the municipality.

6. When direct rule is temporarily introduced into the territory of a municipality, the municipal council shall lose its powers.

Article 13. Forms of the Activities of the Council

1. The municipal council shall exercise its powers collegially at sittings of the municipal council. Issues for sittings of the municipal council shall be prepared by the committees of the municipal council (hereinafter referred to as “committees”) and commissions at their sittings, factions and groups of the councillors at meetings, as well as the administration of a municipality. The municipal council shall adopt decisions on the issues under consideration and control their implementation.

2. The municipal council must at least once a year present in the manner prescribed by the council’s business regulations, to the residents of a municipality a public report on the work done. On behalf of the municipal council the mayor shall present the said report.

3. Activities of the municipal council between sittings of the council shall proceed in the committees of the municipal council and in the form of communication of the councillors with the voters.

Article 14. Municipal Council Sittings

1. A municipal council sitting shall be considered lawful if the majority of the elected councillors are present.

2. The first sitting of a newly elected municipal council shall be convened by the chairman of the constituency electoral committee within two weeks after the announcement of the election results. The time and place of the first sitting shall, within 3 days, be announced via the mass media by the chairman of the constituency electoral committee. The first sitting of the municipal council, presided over by the chairperson of the constituency electoral committee, shall consider only one issue - election of the mayor. If the councillors fail to elect the mayor during the first sitting, the municipal council shall adopt a decision on the date of a next sitting. It must be convened not later than within 7 calendar days after the first sitting, and it shall be also presided over by the chairman of the constituency electoral committee. If the chairman of the constituency electoral committee does not convene a sitting, councillors shall gather on their own on the next day after the expiration of a two-week term following the announcement of the election results. In this case, a sitting shall be presided over by the eldest councillor.

3. Subsequent municipal council sittings shall, at least every 3 months, be convened by the mayor and in case of his absence - the deputy mayor. Sittings shall be presided over by the mayor and in case of his absence - by the deputy mayor. The mayor and in case of his absence - the deputy mayor must convene a sitting on the written demand of at least one-third of the elected councillors who submit issues under consideration and drafts of their solutions, not later than within two weeks of the receipt of the demand of the councillors. If the mayor or his deputy does not convene a sitting within a fixed period of time, it may be convened by at least one-third of the elected councillors. If the mayor or his deputy does not attend a sitting, such sitting shall be presided over and all the documents adopted during the sitting shall be signed by a councillor appointed by the municipal council.

4. The mayor, and in case of his absence - the deputy mayor or a councillor who has been authorised by one-third of the elected councillors shall inform in writing all the councillors and, in the manner prescribed by the municipal council business regulations, the residents of the time of a sitting as well as of the issues prepared for consideration at least three days prior to the commencement of the sitting.

5. Issues to be considered by the municipal council, as well as draft solutions shall be submitted by the committees, commissions, councillors, board, municipal controller, municipal administrator. The mayor shall draw up the agenda of a council sitting. It may be supplemented or amended by the decision of the municipal council upon proposal of the committee, commission, faction and one-third of the councillors attending the sitting.

6. Decisions of the municipal council shall be adopted by a majority vote of all the councillors participating in the sitting. In the event of a tie, the vote of the mayor or the presiding officer of the sitting shall be casting. A councillor must disqualify himself when property or financial issues related to him or his family members and close relatives are being considered, or when his participation in the voting may result in a conflict of public and private interests. Decisions of the municipal council shall become effective after their adoption, unless a further date of their coming into force is set forth therein, and the decisions in which legal norms are established, amended or declared invalid shall become effective on the next day following the public announcement thereof, unless a further date of their coming into force is set forth therein.

7. Minutes shall be taken at municipal council sittings. Minutes of the sitting and decisions of the municipal council must be signed by the mayor presiding over the sitting or his deputy, or another councillor. The minutes must be also signed by the council secretary and in case of his absence - an employee responsible for the minutes, who is appointed by the administrator. The decision concerning the election of the mayor shall be signed by the chairman of the constituency electoral committee who has presided over the sitting of the municipal council.

8. Council sittings shall be open to the public. The presiding officer of the sitting shall have the right to permit invited persons to take the floor in the sitting. Other persons participating in the sitting shall be given the floor in the manner prescribed by the municipal council business regulations.

9. When an issue related to the State, official or commercial secret are being considered at the sitting, the municipal council may decide to consider it at a closed sitting.

10. Only those issues shall be considered at municipal council sittings the draft decisions whereof are submitted in the manner prescribed by the municipal council’s business regulations. In cases of extraordinary situations the mayor shall have the right to submit to the municipal council an issue for consideration and to propose to adopt a decision not in accordance with the established procedure.

Article 15. Municipal Council Committees

1. Municipal council committees shall be set up to preliminary consider issues submitted to the municipal council and to present conclusions and proposals, to control the observance of laws and implementation of decisions of the municipal council, mayor and the board.

2. Committees shall be set up from the councillors by decision of the municipal council. Each municipality must set up a control committee. The control committee shall comprise an equal number of representatives delegated by all the parties and coalitions represented in the municipal council. When setting up other committees, a principle of proportional representation of the majority and minority shall be adhered to. The number of committees as well as their members, powers, except the control committee, shall be established by the council. The powers of the control committee shall be established by the council, taking into consideration paragraph 4 of this Article. Work procedure of the control committee shall be established in the municipal council’s business regulations.

3. Chairmen and deputy chairmen of the committees, except the control committee, shall be elected by the councillors. The municipal council shall elected chairman of the control committee and appoint his deputy on the proposal of the chairman of the control committee. Chairman of the control committee shall be considered elected and his deputy shall be considered appointed, if the majority of the elected councillors vote for this.

4. The control committee shall:

1) propose to the municipal council to dismiss the municipal controller, if there are grounds for dismissal from public service, laid down in the Law on Public Service;

2) submit findings to municipal council regarding results of the activities of the municipal controller (municipal controller’s office);

3) consider a draft action plan of the municipal controller and present it to municipal council for approval, submit proposals regarding supplements or amendments of the said plan;

4) consider a report prepared by the municipal controller regarding the implementation of the action plan of the controller (municipal controller’s office), prepare on its basis and submit to the municipal council conclusions regarding the lawfulness, expediency and efficiency of the use of municipal property and funds, as well as activities of the municipal controller and the municipal controller’s office;

5) propose to the municipal council to carry out independent audit of the use of municipal property and funds and the activities of a municipality, submit its conclusions regarding the audit results;

6) periodically (every three months) consider the execution of the action plan of the municipal controller (municipal controller’s office), on the initiative of the municipal controller or on its own initiative hear out heads of institutions, agencies and enterprises concerning the elimination of deficiencies or violations established by the municipal controller (municipal controller’s office) during inspections, when necessary address the municipal administrator regarding the implementation of municipal controller’s requirements;

7) work in accordance with the activities programme approved by the municipal council, and at the end of each year account for its activities to the municipal council.

5. Committees shall within their competence adopt recommendatory decisions. Local authorities must consider decisions related to their activities and report to the committees about the adopted decisions. The municipal administration, its subdivisions, budgetary and public agencies and enterprises controlled by a municipality must consider committee decisions related to their activities and inform the committees about the results of consideration.

6. Experts, public representatives and local government employees may participate in a deliberative capacity in the work of committees and commissions according to the procedure established by the municipal council’s business regulations .

Article 16. Commissions of the Municipal Council

1. The municipal council shall, for a term of its office, set up an administrative commission under the council. The said commission shall consider cases of administrative violations of the law, assigned to its competence by the Code of Administrative Violations of the Law. On the recommendation of the mayor, the municipal council shall appoint a council member as chairman of the said commission. A local government employee appointed by the municipal administrator shall perform the duties of an executive secretary of the commission; the said functions shall be entered in his job description.

2. In cases specified by laws or by decision of the municipal council other standing commissions (for a term of office of a particular council) and ad hoc commissions (for consideration of particular issues) may be set up. The procedure of formation of such commissions shall be established by the municipal council’s business regulations, and regulations of their activities shall be approved by the municipal council.

3. Councillors, local government employees and representatives of communities of residential areas may become members of commissions set up by the municipal council.

Article 17. Powers of the Municipal Council

The municipal council shall:

1) approve municipal council’s business regulations. It must, among other issues, provide for main forms and ways of communication with the local population, which would guarantee the implementation of principles and rights to local self-governance for the interests of the community;

2) elect the mayor and dismiss him prior to the expiry of the term of office;

3) on the recommendation of the mayor, appoint deputy (deputies) of the mayor and dismiss him (them) prior to the expiry of the term of office; set his (their) salary in compliance with the law;

4) on the recommendation of the mayor, establish a sphere of activities of a deputy (deputies) of the mayor;

5) form the board of a municipality;

6) form committees and commissions of the municipal council, as well as public commissions and councils, provided for by the law;

7) elect chairman of the control committee; on his proposal, appoint deputy of the chairman of the control committee, approve a programme of activities of the control committee;

8) set up a commission for the selection of candidates for the position of the municipal controller, adopt a decision concerning the acceptance of the municipal controller to the office and his dismissal from public service, on the recommendation of the municipal controller establish the office of the municipal controller, approve an action plan of the municipal controller (municipal controller’s office), once a year hear a report of the municipal controller and adopt a decision thereon;

9) set up a commission of selection of candidates for the office of municipal administrator, adopt a decision regarding the employment of the municipal administrator and his dismissal from public service, approve, on the recommendation of the mayor, the structure of the municipal administration, regulations and the wage fund of the administration;

10) on the recommendation of the mayor, adopt decisions regarding the establishment of wards and their number, assign municipal territories to wards, establish their boundaries and, when necessary, change them;

11) approve regulations for activities of the municipal controller, as well as public commissions and councils;

12) in the manner prescribed by the Law on the Structure of the Budget, approve the municipal budget and the report on the implementation thereof, when necessary, adjust the municipal budget;

13) adopt decisions on the appropriation of additional and plan-exceeding budgetary income and other resources, as well as on the establishment and use of targeted funds;

14) distribute budgetary assignments to budgetary institutions;

15) each year establish training priorities for local government employees;

16) fix prices and rates for the payable services rendered by municipal enterprises, special-purpose companies, municipal budgetary and public agencies, as well as the transportation of passengers by local routes, and, in the manner prescribed by the law, fix prices of centralised supply of heating, cold and hot water, establish local charges and fees and other payments;

17) observing, in the manner prescribed by an institution authorised by the Government, the limits of borrowing established by laws, adopt decisions on the use of bank credits, taking and making of loans, provision of guarantees and warranty to creditors for loans taken by enterprises controlled by a municipality;

18) adopt decisions on the provision of tax, charges and fees privileges and other privileges provided for by laws, at the expense of the municipal budget. It shall establish a procedure for provision of subsidies and compensations for enterprises of all types which establish new places of employment, appropriately amend the municipal budget in the cases when funds have not been provided for such matter;

19) approve programmes of social and economic development of a municipality;

20) delegate councillors to regional councils and commissions provided for by laws, and grant authorisation to them;

21) adopt decisions on the disposal of the property belonging to a municipality by the right of ownership, establish a procedure of the management, use and disposal of such property, except for the cases when the said procedure have been established by laws;

22) adopt decisions on the management, use and disposal by trust of the State land and other State property assigned to a municipality;

23) adopt decisions on the establishment of budgetary agencies, municipal enterprises, establishment of public agencies and companies or participation in the establishment thereof, delegation of a part of the founder’s functions to other local authorities, reorganisation and liquidation of such agencies and enterprises or participation in their reorganisation and liquidation;

24) adopt decisions on the establishment of joint enterprises together with other municipalities;

25) in the manner prescribed by laws approve territory-planning documents. It may instruct the board to approve special and detailed plans;

26) in the manner prescribed by the Law on Protected Territories, establish territories protected by a municipality, announce nature and cultural heritage monuments of local significance which are protected by a municipality, adopt decisions on the improvement of the condition of environmental protection;

27) submit proposals on the change in the boundaries of a municipality, naming of a municipality and changing of its name, establishment of residential areas, establishment of their names and boundaries and the change thereof, as well as give and change names of streets, squares, buildings, construction works and other objects belonging to a municipality by the right of ownership;

28) approve the rules concerning the protection of green plantations, of maintaining order in cities and other residential areas, sanitary and hygiene, waste management, keeping of pets, trade in market places and other rules;

29) submit proposals to approve in a prescribed manner coats of arms of residential areas, approve other symbols of a respective municipality and the procedure of the use thereof; may in a prescribed manner grant an honorary title of a resident of a municipality (its centre or another residential area);

30) in the manner prescribed by the municipal council’s business regulations, hear reports of institutions accountable to the mayor, as well as responses of the mayor, municipal administrator, municipal controller, heads of budgetary and public agencies, enterprises and organisations to the inquiries of councillors, and adopt decisions thereon;

31) submit proposals to State institutions regarding the activities of their subdivisions located in the territory of a municipality, when necessary, hear the heads of such subdivisions in the manner prescribed by the municipal council’s business regulations;

32) adopt decisions on the restoration of the rights of ownership of the existing real estate, managed by a municipality, to religious communities and associations;

33) adopt decisions on the payment of compensations to certain groups of consumers for bought fuel, electric power and thermal energy, hot water and natural gas;

34) adopt decisions on expediency of granting concessions to use municipal objects and establishment of the amount of payment;

35) adopt decisions on the establishment of specialised (targeted) funds;

36) establish a procedure of distribution of charity received in the name of a municipality;

37) may adopt decisions to carry out independent audit of certain activities of municipal agencies or enterprises controlled by a municipality;

38) approve a procedure of signing contracts and establish which contracts may not be concluded without a prior consent of the municipal council;

39) adopt a decision to recover damages from the board members (mayor), which have been inflicted due to their (his) intentional unlawful decisions, non-performance of the duties or gross negligence while carrying out the duties, when public administration entities of a municipality have had to compensate for the damage following the court’s decision, if the damage does not exceed the amount equal to their (his) average workpays for the last six months;

40) adopt decisions to join municipality unions, to co-operate with municipalities of foreign states or to join international self-government organisations.

Article 18. The Board

1. The municipal council shall, for the term of the powers thereof, form the board from among the councillors, and establish the number of its members.

2. The mayor and deputy mayors shall be ex officio members of the board. The mayor shall present to the municipal council for approval the candidatures of other board members (not on permanent staff) from among the councillors. Chairman of the control committee, his deputy and members of the control committee may not be members of the board. The municipal council’s business regulations shall establish a procedure of approval of board members and loss of the status of a board member.

3. The board shall adopt decisions at sittings. A sitting shall be lawful provided that at least two-thirds of all the board members participate in it.

4. The agenda of a board sitting shall be drawn up by the mayor. It may be supplemented or amended by the decision of the board, in the manner prescribed by the municipal council business regulations.

5. Minutes shall be taken at board sittings. Minutes of sittings shall be signed by the presiding officer of that particular sitting - the mayor or the board member who presided over the sitting, as well as a local government employee, appointed by the administrator, who is responsible for minutes.

6. Decisions of the board shall be adopted by majority vote of the members participating in the sitting. In case of a tie, the vote of the mayor or another board member presiding over a sitting shall be deciding. Decisions of the board shall become effective after their adoption, and the decisions in which statutory administrative legal acts are established, amended or declared invalid shall become effective on the next day following the announcement thereof in the manner prescribed by the municipal council’s business regulations, unless a further date of their coming into force is set forth in the said decisions. Board decisions shall be signed by the presiding officer of the sitting - the mayor or by another board member who presided over the sitting.

7. 1/3 of the councillors may declare non-confidence in board members, except non-confidence in the mayor or deputy mayor (deputy mayors). Board members shall be dismissed from the board, if the majority of all the councillors vote for the non-confidence in them.. If the decision to dismiss individual board members because of the non-confidence in them is not adopted, this issue shall be repeatedly considered in the manner prescribed by the municipal council’s business regulations.

8. The powers of the board shall expire when newly elected councillors gather for the first sitting. Until the formation of a new board, its powers shall be temporarily exercised by the mayor.

Article 19. Powers of the Board

1. The Board shall:

1) organise the preparation of a draft municipal budget, submit it together with a report on budget execution to the municipal council for approval;

2) adopt decisions on the analysis of the development of the territory of a municipality, preparation of drafts of general long-term social, cultural, economic, investment, demographic, crime control and prevention, ecological, health and other programmes;

3) adopt decisions on the distribution of targeted resources of state social and economic programmes and other resources of state funds to municipal budgetary agencies;

4) in compliance with laws and Government resolutions adopt decisions on the rate of rent payment for municipal residential premises;

5) consider requests of residents to restore ownership rights to residential houses, parts thereof, flats, economic and commercial-purpose buildings;

6) adopt decisions on the payment of compensations for buildings or parts thereof and other construction works subject to return, which are being bought-out by the State;

7) in a manner prescribed by the municipal council, distribute the received charity, if the supplier of charity has not indicated a concrete receiver of charity;

8) adopt decisions mandatory to the local population concerning sanitary, public health and environmental protection issues and announce them in the press;

9) carry out territory planning functions, established by the law, approve special and detailed plans on the instruction of the municipal council;

10) in compliance with relevant articles of the municipal budget, adopt decisions on designing and building of facilities of social and production infrastructure, instruct the municipal administration to carry out the functions of a client of such works, establish a procedure of exploitation of such facilities;

11) in accordance with the approved budget, adopt decisions on the formation of a social housing fund (building, purchase, etc.) and provision with housing;

12) adopt decisions on the arrangement and management of waiting lists of citizens entitled to state support to acquire residential premises, as well as on the rent of municipal residential premises in the manner prescribed by the municipal council;

13) submit proposals to the municipal council to establish enterprises and agencies maintained from the municipal budget, to reorganise and liquidate them;

14) in the manner prescribed by the municipal council, assign to enterprises and agencies controlled by a municipality to manage by trust the municipal real estate, when necessary, transfer such property from one agency or enterprise of a municipality to another;

15) on the proposal of the mayor and taking into consideration the list approved by the law, resolve the issue of the establishment of positions of civil servants of political (personal) confidence, set their number;

16) set a number of local government employees and carry out other functions related to personnel management, which are assigned to the board in accordance with the Law on Public Service;

17) at least once a year or when necessary, account to the municipal council for its activities.

2. The work procedure of the board shall be regulated by the municipal council’s business regulations.

Article 20. Mayor, Deputy Mayor

1. For the term of its powers, the municipal council shall elected mayor from among the councillors, and on the proposal of the mayor, shall appoint one or several deputy mayors. The municipal council may decide that a deputy mayor carries out the duties on a voluntary basis. The mayor shall be elected and his deputy shall be appointed by secret ballot. The mayor shall be considered elected and a deputy mayor shall be considered appointed if the majority of all the councillors have voted for their candidatures. An employment contract shall not be concluded with the mayor.

2. The powers of the mayor, deputy mayors shall be terminated before the expiry of the term of office, if the majority of all the councillors vote:

1) on the proposal of the Government or a State control institution, for violations of laws or other legal acts which have inflicted essential damage to State or municipal interests or property;

2) if due to temporary incapacity to work, he does not work more than 120 calendar days in succession or more than 140 days within the last twelve months;

3) upon his request for resignation.

3. The powers of the mayor, deputy mayors shall be also terminated prior to the term of office, if not less than 1/3 of all the councillors express the non-confidence in them, the municipal council adopts a decision to dismiss the mayor, deputy mayor and not less than ½ of all the councillors vote for such decision. If a decision to dismiss the mayor, deputy mayor because of the non-confidence is not adopted, such issue may be considered no sooner than after six months.

4. On the proposal of the mayor, the powers of a deputy mayor shall be terminated before the expiry of the term of office, of the majority of all the councillors vote for that.

5. The powers of the mayor, deputy mayor shall be terminated if they lose a mandate of a councillor.

6. Upon the expiry of the powers of the municipal council, the powers of the mayor elected by that council the powers of the deputy mayor shall terminate when a newly elected municipal council elects mayor. If the mayor refuses to carry out the duties until a newly elected municipal council elects mayor, it shall be considered that he has resigned at his own desire and severance pay shall not be paid to him. In such case, the municipal council shall instruct a newly elected councillor to carry out the duties of mayor.

7. After the expiry of the term of office, the mayor and his deputy, if not elected mayor or appointed deputy mayor, shall have the right, in a manner prescribed by the Government, to return to the office held prior to being elected councillors, and if there is no such possibility - to another position of the same level and category, if the position held is attributed, in accordance with legal acts, to the position of a career civil servant. If the said persons had not held such positions prior to being elected councillors, they shall be paid compensation equal to their average salaries for three months. It shall be paid within 3 months in equal parts every month. If a person begins holding a position in public service prior to the expiry of a three-month period, an unpaid part of compensation shall not be paid. If the said persons have held the positions of mayor and deputy mayor for less than a year before the expiry of the term of office, they shall be paid compensation equal to their average salaries for one month. Upon the termination of the powers of mayor and deputy mayor before the expiry of the term of office, when not less than one-third of councillors have express non-confidence in them and not less than half of all the councillors have voted for such decision, they shall be paid compensation equal to their average salaries for two months.

8. Salaries of the mayor and deputy mayor shall be approved by the municipal council in accordance with the ratios established by the law.

9. The mayor and deputy mayor may not work in other institutions, agencies, enterprises and organisations and receive any other payment, with the exception of payment for scientific, pedagogical or creative activities.

10. A deputy mayor shall preside over a sitting of the municipal council or board, when the mayor may not participate while adopting a decision.

11. The Law on Employment Contract as well as provisions of labour laws regulating the application of disciplinary penalties shall not apply to the mayor, deputy mayor.

12. For the duration of the term of office, the mayor may have civil servants of political (personal) confidence. Their number shall be set by the board.

Article 21. Powers of the Mayor, Deputy Mayor

1. The mayor shall be accountable to the municipal council and the community for the activities of a municipality. The mayor shall:

1) set and draw up agendas of sittings of the municipal council and the board, present drafts of decisions, convene municipal council sittings and preside over them, co-ordinate the activities of council municipal committees and commissions, sign municipal council, board decisions and minutes of the sittings over which he has presided;

2) represent or authorise other persons to represent the municipality in court, in co-operation with other municipalities, state institutions, institutions of foreign states, as well as with other natural and legal persons;

3) represent a municipality in the Regional development council and have the right of casting vote when preparing and implementing a regional development programme;

4) propose to the municipal council candidatures for a deputy mayor (deputy mayors), board members and chairmen of commissions; may propose to dismiss them;

5) taking into consideration the recommendation of the municipal administrator, approve regulations of subdivisions of the municipal administration, list of subdivision staff, without exceeding the funds appropriated for salaries and the number of employees of the municipal administration, fixed by the board;

6) administer appropriations to a municipality, organise the implementation of the municipal budget and be responsible for economic and financial activities of the municipality or authorise the municipal administrator to do all this;

7) through the municipal administrator, heads structural and structural territorial subdivisions of the municipal administration;

8) in the manner prescribed by the Law on Public Service, appoint and dismiss civil servants of political (personal) confidence;

9) together with appropriate State institutions and agencies, prepare and implement preventive measures and save residents in the events of catastrophes, natural disasters, epidemics, contagious diseases, liquidate their outcomes, have care of the implementation of crime control and prevention programmes, as well as of the environmental conditions in the municipal territory;

10) upon having received the consent of the municipal council, conclude contracts related to the co-operation of a municipality with State institutions, other municipal institutions and institutions of foreign countries;

11) make arrangements about public order and peace;

12) organise the research and analysis of migration process, together with territorial labour markets take care of people’s employment, improvement of their qualifications and re-qualification, as well as organisation of public works;

13) be responsible for the control of the use of the State language;

14) in the manner prescribed by the law, issue sets of construction works designing conditions and permits to build, supervise the use of a construction works or, in the prescribed manner, authorise the municipal administrator or another employee of the municipal administration to do so;

15) organise primary personal and public health care, attendance and care of ill persons, invalids and elderly people, issue recommendations to institutions of primary health care concerning pharmaceutical activities;

16) set up and approve commissions for calling up recruits and medical expert examination of draftees;

17) organise general education of children, youth and adults, pre-school education of children, supplementary training of children and youth;

18) organise the provision of social services and other social support, be responsible for social integration of the disabled (invalids, persons with total disability);

19) look after general cultural education of the population, promotion of ethnic culture, protection of immovable cultural values;

20) exercise functions and powers attributed to him by the law;

21) at least once a year account to the voters for the activities of the municipal council and the board.

2. Decisions of the mayor shall be executed as ordinances.

3. A deputy mayor shall carry out functions established by the municipal council and instructions of the mayor. In the event the mayor cannot carry out his duties, the deputy mayor shall exercise all his duties, except for the powers provided for in subparagraphs 4 and 8 of paragraph 1 of this Article. The municipal council’s business regulations shall regulate the activities of the mayor and the procedure for the appointment to act as the mayor.

CHAPTER FIVE

COUNCILLORS

Article 22. Status of the Councillor

1. The councillor shall be a representative of the community elected by the population in accordance with the procedure established by the Law on Elections to Municipal Councils. The powers of a newly-elected councillor shall begin and the powers of a councillor of the previous term of office shall end on the day when a newly-elected council gathers to the first sitting.

2. The councillor shall have a certificate of the municipal council member. This certificate shall be issued by the chairman of the constituency electoral committee, and when a person becomes a councillor in place of the councillor who has lost his mandate - by the mayor.

3. It shall be prohibited to persecute the councillor for the voting or opinion expressed at sittings of the municipal council or its committees. The councillor may be held liable in accordance with the general procedure for person’s insult or slander, dissemination of information which is humiliating to individual honour and dignity and not in keeping with the truth.

4. The rights and duties of the councillor shall be established by this Law and the municipal council’s business activities.

Article 23. Duties of the Councillor

1. The councillor must:

1) attend sittings of the municipal council;

2) be a member of one committee (beside the control committee);

3) attend sittings of the committee a member of which he is;

4) not vote at sittings of the municipal council and its committees, when his voting on the issue under consideration is or when his participation in the voting conflicts with the Law on the Adjustment of Public and Private Interests in the Public Service;

5) not less than once a year account to the voters in the manner prescribed by the municipal council’s business regulations.

Article 24. Rights of the Councillor

The councillor shall have the right:

1) in the manner prescribed by this Law to elect and be elected to a position in local authorities;

2) in the manner prescribed by the municipal council’s business regulations to propose to the municipal council to consider issues, prepare drafts of municipal council decisions, receive from the municipal administration or other municipal agencies and organisations information related to the issues considered at the municipal council, participate in discussions on issues under consideration, present remarks in writing or orally concerning drafts of municipal council decisions, work procedure of the municipal council, etc., during a sitting of the municipal council pose questions to reporters, express opinion regarding the order of work of a sitting, appeal with inquiries to heads and employees of local authorities, municipal administration, other municipal agencies, enterprises and organisations, as well as State institutions which function in the municipal territory;

3) to participate and speak at sittings of committees and commissions, as well as at sittings of the board in which the issues presented by him are considered;

4) to unify into factions in the manner prescribed by the municipal council’s business regulations;

5) to get from the municipal administration a place for a sitting technical support and means to exercise the powers of the councillor.

Article 25. Termination of the Councillor's Powers

The councillor's powers shall be terminated before the expiration of the term of office:

1) when the direct governing is being temporarily introduced into the municipal territory in accordance with the law;

2) on the decision of the Central Electoral Committee in accordance with the Law on the Election to Municipal Councils.

Article 26. Compensations to Councillors

1. Compensation shall be paid to chairmen of the committees, members of the board and council for the time spent at sittings of the municipal council, committees, commissions, board, as well as the time spent while carrying out the duties of the councillor. This compensation shall be calculated in accordance with the announced amount of an average monthly workpay of the Lithuanian economy, taking into consideration to the actually spent time the duration of which is confirmed in the manner prescribed by the municipal council’s business regulations. Councillors shall not be entitled to compensation for the time spent in the municipal council, if they have received salaries in the principal workplace for the same period of time.

2. If according to the mayor’s ordinance the councillor represents a municipality outside the boundaries of the municipality, the municipal administration shall, in the manner prescribed by the Government, cover his expenses related to the business trip.

3. The councillor shall be released from his direct job or duties in any institution, agency, enterprise or organisation for the duration of sittings of the municipal council, committees and the board, as well as in other cases provided for in the municipal council’s business regulations.

CHAPTER SIX

MUNICIPAL CONTROL INSTITUTION

Article 27. Municipal Controller, Office of the Municipal Controller

1. The municipal controller shall be a municipal control institution which shall directly control the use of the municipal budget and carry out a function of internal audit in a municipality. Such institution shall be accountable to the municipal council and shall not be related to the expiry of the powers of the municipal council.

2. For the implementation of the functions of the municipal controller and on the recommendation of the municipal controller the municipal council may establish (and when the number of residents of a municipality exceeds 30 thousand, must establish) the office of the municipal controller. It shall be headed by the municipal controller.

3. The municipal controller shall be appointed to his position in the manner prescribed by the Law on Public Service, by public competition for the term of 5 years. Upon the expiration of the term of office, the municipal controller may again take part in the competition for the same position for a new term of office. The number of terms of office shall not be restricted for the same person.

4. The municipal council shall approve the commission for the selection of candidates to the position of the municipal controller. The Ministry of Finance shall delegate its representative to the said commission. The competition for holding the position of the municipal controller shall, in the manner prescribed by legal acts, be organised by the mayor or a person authorised by the municipal council, and a decision on the appointment of the municipal controller to the said position shall be adopted by the municipal council.

5. The municipal council may not accept the results of the competition if the competition is held in violation of the procedure established by legal acts. In this case, a competition shall be organised anew.

6. The municipal controller must have a higher education and the record of work for not less than three years in the sphere of finance, economics, control or public administration.

7. Regulations of activities of the municipal controller and the office of the municipal controller shall be approved by the municipal council. Furthermore, the council shall fix a fund of the workpay of the office of the municipal controller (should it be established), and, in accordance with the ratios set by the law, approve the salary of the municipal controller.

8. The municipal controller may be dismissed by the decision of the municipal council prior to the expiry of his term of office on the grounds provided for by the Law on Public Service.

9. The municipal administration shall provide financial, economic and material servicing of the municipal controller and the office of the municipal controller (should it be established). The municipal council shall establish a separate estimate of expenditures of the municipal controller (office of the municipal controller). The municipal controller (office of the municipal controller) shall have his/its seal.

10. In his activities the municipal controller (office of the municipal controller) shall follow laws, regulations of internal audit service of a State institution, approved by the Government, national standards of internal audit of the state sector and regulations of activities of the municipal controller (office of the municipal controller) approved by the municipal council. The Ministry of Finance shall methodically direct the municipal controller (office of the municipal controller) on the issues of internal audit.

11. The status of the municipal controller as well as the status of employees of the office of the municipal controller shall be established by the Law on Public Service and this Law.

12. The municipal controller as well as employees of the office of the municipal controller may not be members of the council of the municipality in which they work.

Article 28. Competence of the Municipal Controller (Office of the Municipal Controller)

1. The municipal controller (office of the municipal controller) shall supervise whether the municipal budget funds, other municipal property and State property transferred to a municipality are used lawfully, expediently and efficiently.

2. The municipal controller shall:

1) approve the list of staff of the office of the municipal controller (should it be established), in the manner prescribed by the Law on Public Service, hire and dismiss employees, perform the functions assigned to him as a head of the institution by the Law on Public Service;

2) organise the execution of an annual plan of inspections of the municipal control office, approved by the municipal council;

3) on his own initiative or upon the written instructions of the municipal council or the mayor, organise targeted inspections and audits in the municipal administration (structural and structural territorial subdivisions), budgetary and public institutions of the municipality, as well as in the enterprises controlled by the municipality;

4) upon the request of the State controller, his deputies or heads of the State control divisions, instruct employees of the office of the municipal controller to take part in targeted inspections and audits organised by the State control in municipal institutions and agencies, as well as in the enterprises controlled by the municipality;

5) establish tasks for the employees of the office of the municipal controller and the methods of their implementation;

6) present to the municipal administrator and heads of agencies and enterprises under inspection the conclusions and proposals on the elimination of shortcomings established during inspections and request information from the said persons about the elimination of such shortcomings and implementation of the proposals. The municipal administrator and the heads of agencies and enterprises under inspection must, within a month from the date of receipt of the above mentioned proposals and conclusions, furnish information to the municipal controller about the elimination of the shortcomings established during inspections and implementation of the proposals;

7) present conclusions of the inspections to the control committee of the municipal council and the mayor, and the conclusions regarding the execution of the municipal budget, use of other municipal funds and property - to the municipal council;

8) be responsible for the performance or organisation of inspections of the use of municipal financial resources and property;

9) upon having established during the inspection evidences of a crime, refer such material to law enforcement institutions;

10) adopt decisions on the consideration of residents’ applications and complaints about the office of the municipal controller;

11) in accordance with requests of Seimas ombudsmen furnish information necessary for them;

12) issue orders within his competence;

13) each year, prior to the approval of the municipal budget submit to the council a report on the activities, and when the municipal council or the control committee so requests - provide requested information within a set period of time;

14) at least twice a year furnish to the Ministry of Finance (within time limits and in the manner prescribed by it) information about the use in a municipality of structural funds of the European Union and other resources appropriated from the European Union.

3. Employees of the office of the municipal controller (should it be established) shall:

1) on the instruction of the controller carry out planned and targeted inspections and audits in the municipal administration, its subdivisions, municipal budgetary and public agencies as well as the enterprises controlled by the municipality;

2) inspect the legality of the use of municipal budgetary funds in all agencies, enterprises and organisations, regardless of their status, to which such funds have been appropriated;

3) within the competence, in the manner prescribed by the Law on Public Administration, consider residents’ complaints and applications. Anonymous complaints or applications shall be considered if the municipal controller so decides;

4) in cases provided for in the Code of Administrative Violations of the Law, draw up records of administrative violations of the law and present them to the municipal administrative commission for consideration in the manner prescribed by he law.

CHAPTER SEVEN

MUNICIPAL AGENCIES OF PUBLIC ADMINISTRATION,

SETTING UP AND POWERS THEREOF

Article 29. Municipal Administration, Administrator

1. Municipal administration shall be a municipal agency which consists of structural, structural territorial subdivisions - wardens and civil servants and public employees (except civil servants of political (personal) confidence) who do not belong to structural subdivisions. The structure of the municipal administration, its regulations of activities and wage fund shall, on the proposal of the mayor, be approved or changed by the municipal council, and the list of staff, the biggest allowed number of employees shall, on the proposal of the municipal administrator, be approved by the board. Powers of the municipal administration shall not be related to the expiration of the powers of the municipal council. The municipal administration shall have a bank accounts and the seal with the coat of arms of a respective municipality. Structural and structural territorial subdivisions of the municipal administration - wards - may also have bank accounts.

2. The municipal administrator shall be the head of the municipal administration - civil servant – head of the agency who is responsible and accountable to the municipal mayor. The procedure for appointment and dismissal of the municipal administrator shall be established by this Law and the Law on Public Service.

3. The municipal administrator shall be appointed to the position in the manner prescribed by the Law on Public Service by public competition for a period of 5 years. Upon the expiry of the term of office, the municipal administrator may repeatedly participate in the competition for the appointment to the same position for a new term of office. The number of terms of office shall not be limited for the same person.

4. The municipal council shall approve the commission of selection of candidates for a position of municipal administrator. The Ministry of the Interior shall delegate its representative to the said commission. The competition for the recruitment to a position of municipal administrator shall, in the manner prescribed by legal acts, be organised by the mayor or another person authorised by the municipal council. A decision on the appointment of a person to the position of municipal administrator shall be adopted by the municipal council.

5. The municipal council may not recognise the competition results if the competition was held in violation of the manner and conditions laid down by legal acts. In this event, the competition shall be organised anew.

6. The municipal administration shall:

1) in the municipal territory organise and control the implementation of decisions of local authorities or implement them itself;

2) implement laws and resolutions of the Government which do not require decisions of local authorities;

3) in the manner prescribed by the law organise the management of accounting of municipal budget income and expenditure and other monetary resources, organise and control the disposal and use of municipal property;

4) administer provision of public services;

5) draw up drafts of decisions and ordinances of local authorities;

6) provide technical services to the mayor, other local authorities and councillors when they execute their powers.

7. The municipal administrator shall:

1) be responsible for the internal administration of a municipality;

2) administer allocations which are designated by the council for the municipal administration;

3) upon having received authorisation of the mayor, administrate appropriations from the municipal budget, organise the execution of the municipal budget and be responsible for economic and financial activities of a municipality;

4) organise the work of the municipal administration;

5) assist the mayor in the preparation of sittings of local authorities, participate in them and, when the presiding officer of a sitting so allows, may express his opinion, make arrangements that minutes of sittings are taken and safely kept, that decisions of local authorities and ordinances of the mayor are announced and forwarded in a prescribed manner;

6) be responsible for the implementation of decisions of the municipal council, board and ordinances of the mayor;

7) in the manner prescribed by the Law on Public Service, appoint and dismiss civil servants and public employees, and heads of agencies providing public services, co-ordinate and control their activities, carry out functions of personnel management assigned to him by the Law on Public Service;

8) organise training and qualification improvement of employees of municipal institutions of public administration;

9) in accordance with his powers, for the interests of the municipality may appeal to state administration entities, issue orders mandatory for structural and structural territorial subdivisions of the municipal administration, as well as for civil servants and public employees who do not belong to the structural subdivisions.

8. Legal relations of municipal employees shall be regulated by the Law on Public Service. Career civil servants and public employees of the municipal administration shall be accountable to the municipal administrator, and civil servants of political (personal) confidence shall be accountable to the mayor.

9. When the direct ruling is temporarily introduced in the territory of a municipality, the municipal administrator shall be subordinate and accountable to the representative of the Government.

10. Employees of the municipal administration may not be the members of the council of the municipality in which they work.

Article 30. Ward and Warden

1. The ward shall be a structural territorial unit of the municipal administration, functioning in a certain part of the municipal territory. The boundaries of the territory of a ward shall be established by the municipal council by its decision. The number of wards shall be also set by the municipal council.

2. The ward shall be headed by the warden. He shall, by competition (favourable opinion of the residents is regarded as an advantage) be appointed and dismissed by the mayor, in compliance with the Law on Public Service.

3. The ward may have a bank account.

4. In the ward a advisory ward council may be formed from the representatives of the local community, which functions as a voluntary body. Its regulations shall be approved by the mayor in accordance with modal regulations approved by the Minister of the Interior.

Article 31. Functions of the Ward and Warden

1. Activities of the ward shall be regulated by the regulations of activities of the ward, approved by the municipal mayor.

2. The ward shall:

1) administer the provision of public services assigned to it;

2) when necessary, evaluate living conditions of particular families (persons) and inform appropriate municipal administration entities and the administrator about the necessity of provision of social support to them;

3) may organise provision of social support and payment of allowances;

4) organise the maintenance of territories and cemeteries assigned to the ward;

5) organise public works;

6) keep residential property data books in rural localities;

7) without exceeding its powers, gather statistical data and provide them to territorial statistical agencies;

8) gather and furnish in a prescribed manner to municipal administration subdivisions the data necessary for the records of school-age children (up to 16 years of age);

9) issue to the residents of the territory assigned to the ward, certificates confirming family composition, place of residence and another actual situation, except for the cases when this, in accordance with legal acts, must be confirmed by other documents;

10) in rural localities issue permits to bury;

11) submit to the mayor and the municipal administrator proposals on the improvement of activities of employees of municipal structural subdivisions and heads of municipal agencies in the territory assigned to the ward, maintenance of local-significance roads, settlement streets, pavements and squares, organisation of local-routs transport, repair of buildings and construction works belonging to a municipality by the right of ownership, maintenance of monuments, organisation of the provision of public services to the population;

12) on the instruction of the mayor, prepare and submit drafts of decisions of the municipal council and the board, as well as mayor’s ordinances concerning the issues of activities of the ward, control their implementation;

13) convene assemblies of the population of the territory assigned to the ward and organise meetings of the population with officials of local authorities and state institutions;

14) summarise remarks and proposals of representatives of local communities and submit them to local authorities and the municipal administrator. It shall consult representatives of local communities and furnish to them information about the activities of local authorities and the municipal administration as well as state institutions on the municipal territory. The warden or a person authorised by him shall participate in sittings of local authorities when issues related to life of the community of the territory assigned to the ward are being considered.

3. The warden shall:

1) be responsible for internal management of the ward;

2) administer allotments appropriated for the ward;

3) in the wards of rural residential localities and in the towns which do not have the civil registrar’s office and the notary’s office, register births and deaths, in the manner prescribed by the law execute notarial and other acts;

4) enter the data on the permanent place of residence of the citizens who reside in the localities where there are no migration services, in the passport of the citizen of the Republic of Lithuania and documents related to accounting of the data on permanent places of residence;

5) conclude contracts within his competence.

4. Regulations of activities of wards may provide for other functions which are not assigned to other structural subdivisions of the municipal administration in the territory assigned to the ward.

CHAPTER EIGHT

REPRESENTATION OF LOCAL COMMUNITIES

Article 32. Status of a Representative of the Local Community

1. Residents of the community of a residential locality or several residential localities (a village or several villages, a city or a town) may elect a representative (representatives) of the community.

2. A representative of the local community shall be elected in the manner prescribed by the municipal council.

3. The principal task of a representative of the local community - to take care of the interests of the community and to represent the community in the ward, when necessary - in local authorities and state agencies functioning in the municipal territory, as well as to familiarise the warden of the ward to which the territory of the community is assigned, with public matters of the community. If such matters are related to the activities of the warden, a representative of the local community may inform the mayor about them.

4. A representative of the local community shall carry out his duties on a voluntary basis.

Article 33. Rights and Duties of a Representative of the Local Community

1. A representative of the local community shall:

1) represent the interests of the community in the ward, local authorities and state agencies functioning in the territory of a municipality;

2) furnish information to the residents of the community he represents, about functions, working hours and working procedure of local authorities, the municipal administration and its subdivisions, other entities of public administration of a municipality, county governor’s administration and its subdivisions and the representative of the Government;

3) encourage the community to maintain the territory of a residential locality (roads, streets, squares, cemeteries, and other entities of infrastructure), develop and organise cultural and sports life of a village (a city, a town);

4) when necessary organise polls and meetings of the population with councillors, the warden, the municipal administrator or a representative authorised by him, other representatives of local authorities and state institutions.

2. A representative of the local community shall have the right to get information about functions and working hours of local authorities, the municipal administration and its subdivisions, other entities of public administration of a municipality, county governor’s administration and its subdivisions and the representative of the Government. This information shall be provided to a representative of the local community by the warden of the ward to which the territory of the community is assigned.

CHAPTER NINE

PROPERTY AND FINANCES

Article 34. Municipal Property

1. Composition of the municipal property and the ways of acquisition thereof, procedure for management, use and disposal of such property shall be established by the Constitution and laws of the Republic of Lithuania, resolutions of the Government and decisions of municipal councils.

2. Functions of owner of the property belonging to a municipality by the right of ownership, related to the property belonging to a municipality by the right of ownership, shall be implemented by the municipal council in compliance with the law.

3. Municipal property shall be disposed and used by trust by municipal agencies, organisations and enterprises in accordance with the procedure established by the Laws on Budgetary Institutions, State and Municipal Enterprises, Management, Use and Disposal of the State and Municipal Property, and other laws, as well as by decisions of the municipal council.

4. Municipalities shall manage, use and dispose state property transferred to them by trust in the manner prescribed by laws and other legal acts.

Article 35. Property Relations when Boundaries of Municipal Territories are Changed

1. When a municipality is being established or liquidated or its boundaries are being changed, the real estate of the municipality shall be ascribed to another municipality by that part of the real estate which is on the ascribed territory. Property, financial and other obligations and rights related to the ascribed real estate shall be transferred together with the said real estate. Other property and debts, upon having evaluated actual conditions and proposals of municipalities, shall be distributed among municipalities in the manner prescribed by the Government or an institution authorised by it.

2. Disputes concerning property of municipalities arising from the reorganisation specified in paragraph 1 of this Article shall be settled by the court.

Article 36. Financial Resources of Municipalities and the Use Thereof

Financial resources of municipalities shall consist of:

1) municipal budget revenue received from taxes in accordance with laws and other legal acts;

2) income from municipal property (ownership);

3) fines received in a prescribed manner;

4) local fees and charges;

5) income of municipal budgetary agencies for provided services;

6) income for balance of municipal funds in current accounts;

7) income received in the manner prescribed by the Government after the distribution of funds for plots of state land sold and rented for non-agricultural purposes;

8) state budget subsidies;

9) other income established by the law;

10) grants (monetary resources);

11) loans.

2. Municipalities shall receive a part of the income from taxes the rates of which are increased or decreased by municipal councils without exceeding amounts provided for by the law.

3. Budgetary funds of municipalities may be used only for the functions of municipalities: to implement social and economic, and other programmes approved by municipal councils, to maintain municipal budgetary agencies and organise the provision of public services.

4. Municipalities or the Association of Local Authorities in Lithuania in their name shall co-ordinate a draft of a legal act in accordance with which the change in municipal functions, receipts and (or) expenditures is provided for, along with financial calculation appended to it.

5. In the event that the revenue or expenditure of the municipal budget changes due to acts adopted by the state institutions, the sums of said changes shall be appropriately compensated for from the Lithuanian State budget or from municipal budgets. The sums of compensations shall be fixed in accordance with the procedure established by the Law on the Methodology of Determination of Municipal Budgetary Revenues. In the event of a dispute, the final decision shall be adopted by the court.

6. Supplementary and surplus budget revenue received during the implementation of the budget as well as saved funds (expenditure) shall be left to municipalities.

7. Funds intended for exercising state functions (delegated to municipalities) shall be appropriated from the state budget or state monetary funs , and transferred to municipalities as special subsidies.

Article 37. Preparation and Control of the Municipal Budget

1. Each municipality shall have an independent budget. The municipal budget shall be drawn up and approved for the period of one budget year. The procedure of preparation, consideration and approval of municipal budgets shall be established by the Law on the Structure of the Budget and rules approved by a resolution of the Government.

2. During a budget year the municipal council may amend the budget.

3. The basis of formation of a municipal budget shall be social, economic and other programmes approved by the municipal council and calculations of funds necessary for the implementation of the functions of municipalities.

4. Municipalities must create conditions for the population to consider a draft budget in the manner prescribed by the municipal council’s business regulations.

5. The municipal controller shall exercise internal control of municipal finances.

6. Upon the end of a budget year, by a decision of a municipality, independent audit of finances and (or) activities may be carried out. If independent audit is carried out, an audit report must be publicly considered at a sitting of the municipal council not later than until 1 September of an appropriate budget year.

7. When necessary, the State control may, by State Controller’s decision, carry out inspections of the execution of municipal budgets, and economic and financial activities of municipal agencies and enterprises controlled by municipalities.

CHAPTER TEN

RELATIONS OF MUNICIPALITIES WITH

STATE INSTITUTIONS AND REPRESENTATION

Article 38. Relations of Municipalities with State Institutions and Agencies

1. Relations between municipal councils and State institutions and agencies shall be based on the Constitution and laws of the Republic of Lithuania.

2. Municipalities shall not be subordinate to State institutions.

3. Central and territorial state administration entities, when considering issues related to the interests of a particular municipality or all municipalities, inform the mayor of the appropriate municipality or the Association of Local Authorities in Lithuania about this. Proposals submitted in writing by the municipal council or executive organs of the Association of Local Authorities in Lithuania shall be considered (evaluated) by state administration entities and answers shall be provided.

4. Drafts of decisions related to the change of administrative units of the state territory and its units shall be considered with municipalities in the manner prescribed by legal acts.

5. The State shall support the teaching and qualification improvement of local government employees.

6. If necessary, municipalities may be consulted by state institutions when planning and resolving all the issues directly related to them.

7. Prepared and considered drafts of laws and other legal acts related to activities of municipalities shall be discussed with separate municipalities or the Association of Local Authorities in Lithuania in the manner prescribed by the Seimas Statute and business regulations of the Government, as well as by other state administration entities.

8. Each year the Government and the Association of Local Authorities in Lithuania shall, in a prescribed manner, consider and co-ordinate an amount of budget revenues of municipalities and indicators determining the balancing of them.

9. A bilateral commission shall be set up by mutual agreement for the co-ordination of interests and positions of the Government and the Association of Local Authorities in Lithuania.

Article 39. Representation of Municipalities

The Association of Local Authorities in Lithuania shall common interests of municipalities in the Government, other state institutions and international organisations.

CHAPTER ELEVEN

LEGAL GUARANTEES AND ADMINISTRATIVE SUPERVISION

OF MUNICIPALITIES

Article 26. Rights of Municipalities and their Protection

1. Municipalities may appeal to the court for the violation of their rights, taking into consideration the character of violation. Local authorities shall function in the name of the municipality in accordance with the powers granted in this and other laws.

2. Decisions of the municipal council, the board and ordinances of the mayor which do not exceed the competence of such institutions, shall be mandatory to the municipal administration, all agencies, enterprises and organisations in the municipal territory, as well as the population.

3. State administration entities shall be prohibited from restricting or limiting the powers and rights of municipalities, except for the cases provided for by the law.

4. Decisions of the municipal council on local fees and charges, as well as rules confirmed by decisions of the council, for the violation of which laws provide for administrative liability, shall be effective in the whole territory of a municipality and all institutions, agencies, enterprises and residents, as well as other natural and legal persons who have come to the municipal territory must observe them.

5. Municipalities shall have the right to apply all legal measures so that a general plan of the municipal territory would be observed and the requirements related to the implementation of the said plan would be met.

6. Municipalities shall have the right themselves and through the Association of Local Authorities in Lithuania to participate in the preparation of laws and other legal acts regulating local self-government or establishing functions of municipalities, and to express their proposals and remarks as regards prepared drafts.

Article 41. Supervision of Activities of Municipalities

1. The compliance of municipalities with the Constitution and laws of the Republic of Lithuania and decisions of the Government shall, in the manner prescribed by the Law on Administrative Supervision of Municipalities, be supervised by representatives of the Government - officers appointed by the Government.

2. Complaints of citizens concerning the abuse of power or bureaucracy of local government employees shall be examined by the Seimas Ombudsmen the powers whereof are laid down by the Law on the Seimas Ombudsmen. .

3. Acts or actions of local authorities and local government employees which violate the rights of citizens and organisations may be appealed against in the court in the manner prescribed by the Law on Administrative Proceedings.

4. Restrictions of functions and rights of municipalities when the state of war and (or) the state of emergency shall be established by relevant laws.

CHAPTER TWELVE

Symbols and Business Conduct of MUNICIPALITIES

Article 42. Symbols of Municipalities

1. Municipalities shall have their symbols.

2. Symbols of municipalities and the procedure of the use thereof shall be regulated by the Law on Symbols of Municipalities.

3. The coat of arms of municipalities shall be the ownership of municipalities and, in the cases which are not provided for by the Law on Symbols of Municipalities, may be used only by permission of the municipal council.

4. The standard of flags of municipalities shall be approved by municipal councils.

Article 43. Business Conduct of Municipalities

Municipal business shall be conducted and accounting, accountability, financial and technical documents shall be kept in the Lithuanian language and must correspond to the requirements for business conduct established by effective legal acts.’’

Article 2. Declaration of the Law Invalid

Upon coming into force of this Law, the Law of the Republic of Lithuania on the Status of the Councillor shall become invalid.

Article 3. Implementation of the Law

1. Upon coming into force of this Law, the Government shall within 6 months prepare and submit to the Seimas the following documents:

1) draft Law on the Amendment of the Law on the Governing of the County;

2) draft Law on the Amendment of the Law on Libraries;

3) draft Law on the Amendment of the Law on Prices;

4) draft Law on the Amendment of the Law on Museums;

5) draft Law on the Amendment of the Law on the Seimas Ombudsmen;

6) draft Law on the Amendment of the Law on Construction;

7) draft Law on the Amendment of the Law on Education;

8) draft Law on the Amendment of the Law on Territorial Planning;

9) draft Law on the Amendment of the Law on State and Municipal Enterprises;

10) draft Law on the Amendment of the Law on Public Institutions;

11) draft Law on the Amendment of the Law on the Management, Use and Disposal of State and Municipal Property;

12) draft Law on the Amendment of the Law on State Control;

13) draft Law on the Amendment of the Law on Administrative Proceedings.

2. Upon coming into force of this Law, and until the passing of amendments of the laws specified in paragraph 1 of this Article, provisions of the laws which are not in compliance with the Law of Local Self-government, shall not apply.

3. Municipal councils shall, prior to 1 October 2001, approve their business regulations, set up a control committee and the board (this applies to the municipalities in which that has not been done), legalise the municipal administration as a municipal agency, when necessary adjust its structure. Activities of the committees of the municipal council, which have been set up prior to coming into force of this Law, shall continue until the expiry of the term of office of the municipal council.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC	VALDAS ADAMKUS