SUPREME SOVIET OF THE LITHUANIAN SOVIET SOCIALIST REPUBLIC

LAW

ON THE FUNDAMENTALS OF LOCAL GOVERNMENT

(Adopted at the Seventeenth Session of the Supreme Soviet of the

Lithuanian SSR, Eleventh Convocation, 12 February 1990)

Chapter 1

General Principles

Article 1. Concept and Legal Regulation of Local Government

1. Local government shall be the independent activity on

resolving local issues and implementing the decisions adopted

under law as carried out by the citizens residing on the

territory of administrative-territorial units of the Republic of

Lithuania and by the bodies of local government accountable to

them.

2. Local government shall be the unity of the citizens

residing on the territory of the administrative-territorial unit

and the bodies of state power and government formed by them.

3. Local governments of the Republic shall be regulated by

the Constitution (Basic Law) of the Republic of Lithuania, this

Law and also laws of the Republic of Lithuania or of the local

government of rural territorial units, settlements, towns and

regions, and also by other laws of the Republic of Lithuania.

Article 2. Principles of Local Government

The underlying principles of local government shall be as

follows:

1) direct participation of the citizens of the Republic of

Lithuania in the preparation, consideration, adoption and

implementation of decisions on public life matters that are of

importance for them;

2) supremacy of the representative state power bodies and

their officials to the citizens, and control exercised by the

citizens;

3) accountability of local government bodies and their

officials to the citizens, and control exercised by the citizens;

4) economic independence;

5) openness and response to public opinion;

6) social justice;

7) law and its enforcement; and

8) priority given to contractual relations in the activity

of local government bodies.

Article 3. Territorial Foundations of Local Government

1. The foundation for the organisation of local government

shall be administrative-territorial units of the Republic of

Lithuania established and altered by the Supreme Council of the

Republic of Lithuania.

2. There shall be two levels of local government: the

lower level and the higher level.

The lower level of local government shall embrace the rural

territorial units, settlements, and regional cities.

The higher level of local government shall embrace regions

and towns under the Republic's jurisdiction.

3. Taking into consideration the interests and requests of

the citizens residing on the territory, the appropriate councils

of people's deputies (hereinafter: councils of local government

or councils) authorised by the Presidium of the Supreme Council

of the Republic of Lithuania may divide their respective

territory into smaller units to better organise their government.

Article 4. Means for the Implementation of Local

Government

1. Local government shall be implemented through the forms

of direct and representative democracy.

2. The most important forms of direct democracy through

which local government is implemented shall be civic initiative,

participation of citizens in the discussion and resolution of all

significant questions, election of representation bodies,

participation in the implementation of adopted decisions and

possibility to exercise control over the activity of local

government bodies.

3. The basis of representative democracy of local self-

government shall be local government councils elected in

accordance with the Law on the Election of Deputies to the Local

Councils of People's Deputies.

Local government councils shall form executive bodies

subordinate and accountable to them, govern them and control

their activity.

Chapter 2

State Governing Bodies of Local Government

Article 5. Councils of People's Deputies

1. The councils of people's deputies shall constitute the

representative state power body of local government within its

territory; it shall coordinate the activity of other local

government bodies, direct the local economy and cultural

activities, concern itself with rational exploitation of natural

wealth and protection of the environment, with the observance of

laws and implementation of government directives, and ensure

public order and protect citizens' rights and legitimate

interests.

2. Local governments shall have the rights of legal

person.

Article 6. Sessions of the Council

1. The basic form of work of the Council shall be its

session.

2. The first session of the newly elected council shall be

convened by the appropriate electoral committees not later than

two weeks after the elections, provided no less than two-thirds

of the deputies of the council are elected. The first session of

the council shall be opened by the chairman of the electoral

committee who shall preside over the session until the election

of the chairman of the council. (Amended 5 April 1990)

Subsequent sessions of the council shall be convened by the

chairman (presidium) of the council on his own initiative or on

the demand of no less than one-third of the deputies of the

council, expressed in writing with the indication of questions

which need to be considered, as well as on the proposal of the

executive body of the local government. The chairman (presidium)

of the council shall convene the session not later than within

two weeks from his receipt of the deputies' demand to do so. If

the session is not timely convened, it may be convened on the

decision of no less than one-third of the deputies of the

council.

3. A session of the council shall be valid if it is

attended by no less than two-thirds of all the deputies of the

council.

If the session did not take place, or if not all the

questions were considered at it owing to the absence of a quorum,

a new session on the basis of the prior agenda, or sittings on

unconsidered questions shall be valid if attended by a majority

of the council deputies.

Decisions of the council shall be adopted by a majority vote

of all the council deputies if there is a quorum, or a majority

of the number of the council deputies, except in cases where the

law provides otherwise. (Amended 19 July 1990)

Article 7. Exclusive Competence of the Council

The council shall be empowered to discuss and resolve all

issues that are within its competence under the laws of the

Republic of Lithuania. Exclusively at sessions the Council shall:

1) affirm the powers of the deputies and revoke their powers

before the expiration of their term in the cases prescribed by

law;

2) elect or release from duties the chairman of the council

and his deputies;

3) form standing and other committees, groups of deputies

and other bodies of the council and make alterations in their

composition;

4) form the auditing committee and make alterations in its

composition;

5) form execution bodies subordinate to the council and

approve their regulations;

6) consider the accounts of bodies of the council;

7) consider the inquiries of deputies and adopt decisions

on them;

8) approve the rules of procedure of the council;

9) establish basic trends of economic and social development

of the local government and evaluate the results of their work;

10) approve the budget and the report on its implementation;

distribute additional budgetary resources and approve estimates

of and reports on the utilisation of nonbudgetary resources;

11) establish statutory rules of ownership and

administration of objects owned by local government, exercise

control over their exploitation and resolve other questions

related to property;

12) revoke permits to engage in economic activity or suspend

the work of enterprises,

institutions and organisations in the event of violation of

laws on environmental

protection, land use, exploitation of local natural wealth,

sanitation and health

care, and safety of utilisation of labour resources;

13) establish reductions of taxes, duties and deductions

into the Council budget paid by natural and legal persons;

14) establish local duties, issue voluntary loans;

15) approve the symbols of the appropriate local government;

16) approve contracts concluded by the executive bodies of

local government in accordance with the procedure established by

law with other local governments, legal and natural persons,

foreign firms and also with local governments of foreign

countries;

17) submit for consideration proposals on administrative-

territorial division and adopt decisions in accordance with law;

18) consider and resolve other issues which are assigned by

the council within the limits of its powers to its exclusive

competence.

Article 8. Chairman of the Council

1. The work of the council shall be organised by the

chairman of the council or by his deputy, and with local

governments of the higher level - the presidium of the council;

2. The chairman and deputy chairman of the council shall be

elected at the session of the council by secret ballot for the

term of office of the council but for no longer than two terms in

succession.

The chairman of the council shall:

1) represent the council in the relations with state bodies,

social organisations and other

public bodies and citizens;

2) organise the preparation of the session of the council

and of issues submitted to it for

consideration, also of control over the implementation of

the resolutions adopted by the council;

3) inform the deputies and the public of the place and time

of the convocation of the

session and of the issues submitted for consideration;

4) coordinate the work of standing and other committees and

groups of deputies formed by the council;

5) sign the records of the session of the council, the

resolutions of the council and inform the public of them; and

6) fulfill other assignments of the council and perform

other powers prescribed by law.

The chairman of the council shall be accountable to the

council. When the chairman cannot perform his duties, or in his

absence his functions shall be exercised by the deputy chairman

of the council.

The chairman of the council shall adopts decisions on issues

that are within the limits of his competence.

The council shall have the right to revoke the decisions of

the chairman of the council.

On the decision of the council, the chairman or his deputy

may be dismissed from their respective posts before the

expiration of their terms of office.

The council shall consider the issue of the dismissal of the

chairman or his deputy from their respective posts at the session

of the council either at their request or at the request no less

than one-third of council deputies.

The decision to dismiss the chairman of the council or his

deputy from their respective posts shall be adopted by secret

ballot.

The decision of the council on the election of the chairman

of the council or his deputy, as well as on their dismissal from

their respective posts shall be signed by the deputy presiding

over the session (at the first session of the newly elected

council, during the election of the chairman of the council - by

the chairman of the electoral committee).

Article 9. Committees and Groups of Deputies of the Council

1. Committees and groups of deputies of the council shall be

formed for preliminary consideration and preparation of issues,

also for assisting to implement the resolutions of the council,

exercising control over the observance of laws of the Republic

and resolutions of the council by enterprises, institutions and

organisations located on the territory of the local government.

The council may form standing and other committees, groups of

deputies or other bodies.

2. The competence of said bodies shall be established by

the council within the limits its powers. They shall be

responsible and accountable to the council which elects them.

Chapter 3

Local Government of the Lower Level

Article 10. Institutions of Local Government of the Lower

Level

Institutions of local government of the lower level shall

be:

body of power - council of people's deputies;

executive body - chief local executive of rural territorial

unit or settlement, and mayor of regional town;

the auditing committee.

The specific powers of the above bodies of local government

and the organisation of their activity shall be established by

this Law, the laws of the Republic of Lithuania on the local

government of rural territorial units, settlements and towns.

Article 11. Council of Local Government of the Lower Level

The council of rural territorial unit, settlement or

regional town shall exercise the powers conferred on it by

Article 7 of this Law. Furthermore, exclusively at sessions the

council shall:

1) appoint the chief local executive or the mayor and their

deputies and consider their

dismissal from their respective posts, establish salaries

of said officials, and also

supplementary amounts payable to the chairman of the

council or his deputy in accordance

with the salaries list approved by the Government of the

Republic of Lithuania and within

the limits of the established pay-roll fund;

2) determine the sum total of appropriations for the chief

local executive or the mayor, their respective deputies, and

their staff; and

3) assign plots of land to legal and natural persons in the

appropriate cases and according to the procedure established by

law.

Article 12. Executive Bodies of Local Government of Rural

Territorial Unit, Settlement and Regional Town

1. The chief local executive of rural territorial unit or

settlement and the mayor of regional town shall be elected by the

appropriate councils by secret ballot for the term of office of

the council. At the recommendation of the chief local executive

or the mayor the council shall appoint deputies to the chief

local executive or the mayor.

2. Any citizen of the Republic of Lithuania shall be

eligible to be appointed to the post of chief local executive or

the mayor and their respective deputies, provided he or she is 21

years of age and over and has command of the state language. The

chief local executive or the mayor and their respective deputies

may not, at the same time, be deputies of the council that elects

or appoints them.

3. Executive bodies of local government shall function in

accordance with the laws of the Republic of Lithuania, the

resolutions of the Government of the Republic and resolutions of

the appropriate council, and ensure the implementation of the

government function of the local government.

4. The chief local executive and the mayor and their

respective deputies shall be responsible and accountable to the

council that elects or appoints them. At the proposal of one-

third of the deputies the issue of their dismissal from their

respective posts before the expiration of their term of office

shall be presented for consideration at the session.

Within the limits of their powers the chief local executive

and the mayor shall issue regulations and exercise control over

their implementation.

The chief local executive and the mayor shall employ or

release from office members of their respective staff, fix their

salaries in accordance with the salaries list approved by the

Government of the Republic of Lithuania and within the limits of

the established payroll fund.

Article 13. Auditing Committee of Local Government of the

Lower Level

The council of local government shall elect the auditing

committee whose chairman or deputy chairman shall be the deputies

of the council that elects them.

The auditing committee shall exercise control over the

implementation of the council resolutions by the chief local

executive and the mayor, and audit their financial activity.

Chapter 4

Institutions of Local Government of the Higher Level

Article 14. Institutions of Local Government of the Higher

Level

1. Institutions of local government of the higher level

shall be:

body of power - council of people's deputies

executive institutions - regional manager and the board

headed by him, and the mayor of the town under the Republic's

jurisdiction and the board headed by him the auditing committee.

2. The specific powers and organisation of work of the

above bodies shall be defined by this Law, and the Laws of the

Republic of Lithuania on Regional Local Government and on the

Local Government of Towns under the Republic's Jurisdiction.

Article 15. Councils of Local Government of the Higher

Level.

The regional council and the council of the town under the

Republic's jurisdiction shall exercise the powers conferred on

them by Article 7 of this Law. In addition, exclusively at

sessions, the council shall:

1) form the presidium of the council and alter its

composition;

2) elect the regional manager and the town mayor, appoint

their respective deputies and secretaries of the council and

relieve them of their respective posts, approve and alter the

composition of the regional and town boards;

form departments and other divisions of boards, and

establish their powers;

approve the appointment chief executives, with the

exception of cases provided by law; (Amended 30 July 1990)

3) establish the sum total of appropriations for the

chairman of the council or his deputy, the secretariat of the

council, the board, its departments and other divisions;

establish the salaries of the chairman of the council and

his deputy, the regional manager, the mayor, their deputies and

the secretary, and of staff members of the secretariat of the

council in accordance with the salaries list approved by the

Government of the Republic of Lithuania and within the limits of

the established pay-roll fund.

Article 16. Presidium of the Council

1. The presidium of the council shall organise the work of

the regional council and of the council of the town under the

Republic's jurisdiction, and also perform other functions

prescribed by law. The presidium of the council shall consist of

the following members: the chairman of the council, his deputy,

and chairmen of the standing committees of the council. The

council may decide to add other members to the presidium who

shall be chosen from among the other deputies of the council.

2. The presidium of the council shall:

1) organise and call sessions of the council; direct the

preparation of issues to be submitted for consideration to the

council;

2) coordinate the work of committees formed by the council,

or groups of deputies and other bodies of the council;

3) assist deputies in exercising their powers; supply them

with the necessary information;

4) ensure openness of the work of the council;

5) organise public-opinion polls and also public discussion

of the draft resolutions of the council and of other significant

issues;

6) organise the fulfillment of resolutions of the council;

7) resolve questions related to the organisation of

elections as prescribed by law, and also

prepare proposals concerning suspension of the powers of

deputies before the expiration of their term of office; and

8) carry out other assignments of the council and exercise

powers assigned to it by law.

3. The sessions of the presidium of the council shall be

called when necessary, and shall be presided over by the chairman

of the council. Other deputies of the council as well as the

regional manager, the mayor, their deputies and the secretary may

take part in the session without the right to vote.

Resolutions of the presidium of the council shall be adopted

by a majority vote of all the members of the presidium.

Resolutions of the presidium of the council shall be signed by

the chairman of the council.

4. The council and the presidium shall be assisted in their

work by the secretariat of the council. The presidium shall

establish the structure of the staff of the secretariat and also

appoint and dismiss its staff members.

Article 17. Regional Manager and Mayor of the Town under

the Republic's Jurisdiction

1. The regional manager and the mayor of the town under the

Republic's jurisdiction shall be elected by the respective

councils by secret ballot for the term of office of the council

and for no longer than two terms in succession. Upon the

recommendation of the regional manager and the town mayor, the

respective councils shall appoint deputies to the manager and to

the mayor, and also to the secretary.

2. Any citizen of the Republic of Lithuania shall be

eligible to be appointed to the posts of regional manager, town

mayor, their respective deputies and the secretary, provided he

or she is 25 years of age or older and has command of the state

language. The regional manager, the town mayor, their respective

deputies and the secretary of the council may not, at the same

time, be deputies of the council that elects or appoints them.

Thy shall be responsible and accountable to the council that

elected them. The issue of their dismissal from their respective

posts before the expiration of their term of office shall be

submitted for consideration at the session of the council at the

request of one-third of deputies.

3. The regional manager and the town mayor shall issue

instructions within the limits of their powers and control their

implementation.

Article 18. Regional Board and the Board of the Town under

the Republic's Jurisdiction

1. The regional board and the town board are collective

executive bodies that shall be comprised of the regional manager,

the town mayor, their deputies, the secretary, and also members

of the board appointed by the respective councils on the

recommendation of the manager or the mayor for the term of office

of the council. Members of the board may not, at the same time,

be deputies of the council that elected them.

2. Regional and town boards of local government of the

Republic shall collectively resolve questions if the legislation

of the Republic, directives of the Government of the Republic of

Lithuania or resolutions of the appropriate council provide for

same, or if the questions are submitted by the regional manager

or the mayor. With the aim of considering such questions the

regional manager or the town mayor shall convene a session of the

regional or town council, respectively. Minutes of the session

shall be taken, while the adopted decisions shall be issued in

the form of directives of the manager or the mayor.

If there is a disagreement on the question under

consideration or the adopted act between the manager, or the

mayor and the board, the dispute shall be settled by the council

of the local government. (Amended 30 May 1990)

3. The functions of the board in specific spheres shall be

performed by its departments and other divisions headed by

executives who are appointed and dismissed from their posts by

the board.

4. In their work the executive bodies of local governments

shall guide themselves by the laws of the Republic of Lithuania,

directives of the Government of the Republic, and also

resolutions of their respective councils and ensure the

implementation of the functions of local government.

Article 19. Auditing Committee of the Region and of the

Town under the Republic's Jurisdiction.

1. The council of local government shall elect the auditing

committee. The chairman and deputy chairman of the committee must

be deputies of the council.

2. The auditing committee shall exercise control over the

implementation of decisions of the council by the manager, the

mayor and the board, audit their financial activity, and also the

financial activity of the secretariat of the Council.

Chapter 5

Economic Basis of Local Government

Article 20. Economic Basis of Government.

1. The economic basis of local government is comprised of

the property of local government, objects of local economy

assigned to the local government, resources of the local budget,

non-budgetary and other resources of the local government.

2. Enterprises (associations) and organisations functioning

on the territory of the local government that are not assigned to

the local economy thereof shall pay a prescribed amount of

compulsory budget payments to the local government.

Enterprises (associations) and organisations having the

rights of legal persons shall in addition also pay to the local

government a part of compulsory budget payments for the dependent

structural units subordinate to them. The payments shall be made

to the local government on whose territory the units are located.

3. The rights of local government to the land, bodies of

water, forests and other natural resources shall be established

by the laws of the Republic of Lithuania.

Article 21. The Property of Local Government.

1. The property of local government shall be the property

that belongs it and on its behalf is owned and used by the

appropriate council or other legal or natural persons authorised

by it.

A control office shall be established at the council that

shall control the legality of the utilisation of financial and

material resources, the efficiency thereof, and the protection of

the council's property. The functioning of the control office

shall be regulated by law. (Amended 20 November 1990)

2. Local government may have the right of ownership to the

following objects:

social housing fund enterprises and establishments of a town

(settlement), fixed and current assets of enterprises assigned to

the local government, objects of infrastructure, and the capital

of local government invested in shares and other securities.

3. Local government shall acquire rights to ownership when:

1) objects of state property are turned over to the local

government according to the procedure established by law;

2) new objects of property are produced;

3) contracts are concluded, and also in other ways provided

by law.

4. Realising its ownership rights the Council of local

government shall:

1) found enterprises, institutions, organisations to which

it can transfer property according to the procedure established

by law;

2) lease the piece of property or turn it over for use to

work collectives, public organisations, cooperative societies,

organisations of lease-holders, associations, and also to

citizens in accordance with the procedure established by law;

3) use the property and dispose of it according to law.

5. Local government shall have the right of priority to

acquire according to the procedure established by law: public

buildings, facilities and other objects located on its territory

which can be of use to the local economy.

Article 22. The Local Economy.

1. The local economy is comprised of enterprises,

institutions and organisations with different types of ownership

located on the territory of local government and catering mainly

to the needs of local enterprises and the population. Their work

is controlled by the council of the local government according to

procedure defined by law.

2. As a rule, enterprises of industry, agriculture,

construction, repair, housing, transport, road-building, land

reclamation installations, trade, communications, public

catering, environmental protection and forestry, establishments

of education, culture and cinematography, health care, social

welfare and sporting facilities, and also enterprises, offices

and organisations serving other purposes as specified in part 1

hereof shall be assigned to the local economy of.

3. Enterprises, offices and organisations shall be assigned

to the local economy by the Councils of Ministers of the Republic

of Lithuania, taking into consideration proposals of local

governments. Enterprises, offices and organisations of the local

economy may not be assigned to the higher level of control

without the consent of the local government.

Article 23. Financial Resources of Local Government.

1. Financial resources of local government shall be

comprised of the budget, non-budgetary funds and the resources of

the local government.

2. Every local government shall annually draft and approve

its budget independently.

3. The relations between the state and local budgets, as

well as between the budgets of local governments of the higher

and lower levels shall be regulated by the laws of the Republic

of Lithuania on budgeting and taxation.

4. The budget revenues of local governments of the lower

level shall be formed from sources of revenue assigned by law and

from state tax and revenue deductions in accordance with stable

norms established by councils of the higher level, and also from

subsidies.

5. The budget revenues of local government of the higher

level shall be formed from sources of revenue assigned by law and

from state tax and revenue deduction in accordance with fixed

norms established by law, and also from subsidies.

6. Norms of deductions to the budgets of local governments

shall be established and subsidies shall be provided in

accordance with the approved system of calculation. In these

cases, the longer term deduction norms still being valid the

revenues and expenditures of local budgets undergo changes owing

to decisions passed by the Government of the Republic or by the

executive bodies of local government, the sums of differences are

compensated for.

7. Local governments of the higher and lower levels may

accumulate and use non-budgetary resources and funds according to

the procedure established by law. Non-budgetary funds may be

formed from voluntary contributions to the budget by enterprises,

organisations and citizens, compulsory payments for the

exploitation of local natural resources, for the employment in

enterprises of persons who are not living on the territory of the

self-government, for the violation of environmental protection

regulations, for the damage inflicted, for administrative

offenses and from other resources.

8. Local government may raise bank credits, conclude

contract and grant loans, issue shares and hold lotteries.

Article 24. Basic Socioeconomic Rights of Local Government

1. Local government shall also resolve the following

issues:

1) work our the basic trends of economic and social

development of its territory, long-term (five-year period)

programs and forecasts, taking into consideration production

capacities, financial labour resources, social and financial

norms; local government shall have the exclusive right to

establish priorities of social activity;

2) coordinate and approve the projects of work of

enterprises, irrespective of their status, with regard to the

spheres of construction, utilisation of labour force, local raw

materials, land, water and forest, environmental protection,

services to local residents and other spheres within the limits

of powers of local governments;

3) work out and submit proposals on long-term programs for

the development and distribution of productive forces, work out

and approve town and settlement development plans, organise their

implementation, participate in the preparation and the

realisation of national programs;

4) found and reorganise enterprises, institutions and

organisations of the local economy, regulate the functioning of

the local economy, coordinate the issues of founding and

reorganising other enterprises, institutions and organisations;

5) issue licences to engage in economic activity, register

enterprises, offices, organisations and associations;

establishes requirements for the construction, extension and

reconstruction of all objects located on the territory of the

local government, for the formation of landscape and

architecture, and control their observance;

6) solve questions related to the planning and construction

of all objects of social and industrial infrastructure, and may

directly perform the function of builder;

7) distribute resources formed on a centralised basis for

the enterprises of the local economy, organisations and citizens;

8) allocate plots of land, exercise state management and

control over land use, land protection and solve other questions

in accordance with the procedure defined by law;

9) jointly with other state bodies work out and implement

measures for the rescue of population and protection of the

national economy in cases of accidents, catastrophes and

natural disasters;

10) define on the territory of economic activity

requirements for environmental protection and exploitation and

control their implementation;

may suspend economic activity if the requirements are not

followed;

11) suspend or terminate production and sale of foodstuffs

and consumer goods in cases when sanitation standards and

requirements are not observed;

12) advance proposals for the foundation of protected areas,

organise their protection and help to establish rules of their

exploitation;

13) designate protected areas of local importance, national

monuments or architecture, nature, history and culture, organise

registration of national monuments and protect them;

14) coordinate and regulate on its territory the location,

structure and activity of objects of social infrastructure,

establish their exploitation regulations and resolve issues

related to the provision of citizens with housing;

15) create and expand establishments of health care, social

welfare, education, culture, physical education and sports

facilities and other social establishments and organisations,

ensure their continued functioning;

16) regulate the distribution of labour resources, migration

processes, organise rational employment of citizens, retraining

and training of workers and employees;

17) regulate within the limits of established procedure

prices and tariffs of services to the population offered by all

the enterprises located on its territory, of services offered by

the enterprises of the local economy to other organisations and

also prices of goods produced by the enterprises of the local

economy;

18) announce local voluntary loans, hold lotteries, issue

shares;

19) grant reductions of payments to its budget, determine in

accordance with the Government-approved system the amount of

payment (compensation) for the allocated plots of land, for the

use of installations of town and township economy and other

objects, and also for persons living on the territory of the

self-government who are employed in enterprises located on the

territory other local governments;

20) approve according to the procedure established by law

the payroll fund of offices and organisations maintained with

budget resources;

21) conclude contracts and cooperation agreements, as

necessary, with enterprises, offices, and organisations assigned

to the local economy, other local governments, foreign firms

and local government authorities of foreign countries;

22) work out and implement measures to balance out income

and expenditure of the population;

23) form and use currency reserve in accordance with the

procedure established by law; and

24) organise appropriate measures to guarantee state

security and public order, to protect property of natural and

juridical persons, to ensure traffic management; direct the

activity of internal affairs bodies subordinate to it and of fire

brigades.

2. Socioeconomic rights outlined herein are defined for

local governments of different levels in other laws.

Chapter 6

Legal Guarantees of Local Government

Article 25. General Questions of Legal Guarantees of Local

Government.

1. Resolutions of local government bodies, adopted within

the limits of their powers, must be observed by all enterprises,

institutions and organisations on its territory, as well as by

officials and citizens. Refusal to observe the resolutions shall

be punishable under the laws of the Republic of Lithuania.

2. The statutory rights of local governments may not be

violated or curtailed, except in the event of national necessity.

3. The bodies of local government shall exercise their

powers independently. By mutual agreement they may delegate part

of their statutory rights (along with resources necessary for

their realization) to local governments of a different level or

to other bodies.

4. Functions not established by law may be delegated to the

bodies of local government exclusively on the basis of agreements

between a state body and a local government body.

Article 26. Ensuring the Realisation of the Rights of Local

Government.

1. Higher state bodies, while considering issues related to

the interests of local governments, must inform the local

government of these deliberations. The council of the local

government shall present its proposals that should be considered

by the higher state bodies.

2. The council of the local government, taking into

consideration the interests of the citizenry shall have the

right to:

1) suspend the implementation of decisions adopted by legal

persons on its territory if they contradict the laws of the

Republic of Lithuania until the issue is considered by a

competent state body. If the implementation of decisions adopted

by the legal person is suspended unlawfully and this results in

damage, a legal action may be taken against the local government;

2) cancel the coordination of projects for the construction

of objects on its territory or a decision on the allocation of

land for construction, or prohibit construction if the builder or

the user of land violates the contracts concluded with the bodies

of local government or the laws of the Republic of Lithuania.

In the period between the sessions of the council the

executive body of local government may

Suspend the implementation of the abovementioned decisions

and subsequently submit its decision for approval at the session

of the council;

3) require or organise additional ecological or other

investigations by experts to be carried out on the site of the

objects under construction or functioning objects;

4) enhance within the procedure established by law, the

measures of environmental protection implemented on its territory

and impose economic sanctions for their violation.

Article 27. Appeals against the Acts of Local Government

1. The legality of activities of the executive bodies of

local government shall be supervised by the bodies of procuracy

and also controlled by other authorised state bodies.

Decisions adopted by the executive bodies and officials of

local government may be revoked by the appropriate council.

2. Legal and natural persons may in accordance with the

procedure established by law appeal against the decisions of

executive bodies and officials of local government to the court,

arbitration or appropriate council; appeals against the unlawful

decisions of the council shall be lodged with the council of

local government of the higher level.

3. The council of local government of the lower level shall

have the right to contest at the Supreme Council of the Republic

of Lithuania decisions adopted by the council of local government

of the higher level on issues assigned to the exclusive powers of

local government of the lower level.

4. The council of local government of the higher level shall

have the right to suspend the decisions of the bodies of local

government of the lower level if they contradict the laws of the

Republic of Lithuania. In the event of disagreement the final

decision on the issue is taken by the Supreme Council of the

Republic of Lithuania.

5. The Council of Ministers of the Republic of Lithuania is

entitled to appeal to the Supreme Council of the Republic of

Lithuania against the decisions of the council of local

government of the higher level if they contradict the laws of the

Republic of Lithuania.

In the cases prescribed by the laws of the Republic of

Lithuania the Council of Ministers of the Republic of Lithuania

may suspend and appeal against the decisions of the executive

bodies of local government of the higher level to the council of

the local government. In the event of disagreement, the final

decision on the issue shall be taken by the Supreme Council of

the Republic of Lithuania.

Article 28. Dissolution of the Council of Local Government

1. The council of local government may be dissolved and the

activity of its executive bodies suspended in the following

cases:

1) if the activity of the bodies of local government

contradicts the Basic Law of the Republic of Lithuania;

2) if the bodies of local government grossly violate the

laws of the Republic of Lithuania or constitutional rights of

citizens, disregarding the demands of the authorised state bodies

of the Republic of Lithuania to terminate illegal action.

2. The council of local government shall be dissolved by the

motivated decision of the Supreme Council of the Republic of

Lithuania adopted on the basis of conclusions presented by the

specially formed committee of deputies of the Supreme Council.

3. Upon the dissolution of the Council of local government,

the Supreme Council of the Republic of Lithuania shall adopt one

of the following decisions:

1) to hold within three months extraordinary elections to

the appropriate council, empowering an authorised official of the

Government to perform the governing functions;

2) to suspend the laws of local government on its territory

and to introduce administrative rule for a period of up to one

year in accordance with special laws of the Republic of

Lithuania;

3) as necessary, administrative rule may be prolonged.

4. The council of local government may be also dissolved if

the minimal required number of deputies prescribed by law fails

to convene for the session for three times in succession.

The proposal to dissolve the council of the local government

shall be submitted to the Supreme Council of the Republic of

Lithuania by the Chairman of the Presidium of the Council of the

local government.

In this case the Supreme Council of the Republic of

Lithuania shall adopt a resolution to hold special elections to

the appropriate council within three months.