REPUBLIC OF LITHUANIA

LAW

ON LOCAL SELF-GOVERNMENT

7 July 1994 No I-533

Vilnius

(Last amended by 1 December 2011 – No XI-1773)

CHAPTER ONE

GENERAL PROVISIONS

Article 1. Objective 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. Purpose of the Law

1. This Law shall lay down the procedure of formation and activities of municipal institutions when implementing the provisions of the Constitution of the Republic of Lithuania (hereinafter referred to as the “Constitution”) and the European Charter of Local Self-government, define the principles of local self-government, municipal institutions and their competence, functions, the status of a municipal councillor, the grounds of economic and financial activities of municipalities.

2. The provisions of this Law have been harmonised with legal acts of the European Union, referred to in the Annex to this Law.

Article 3. Definitions

1. “Municipality” means an administrative unit of the territory of the State, defined by law, the community of which has the right to self-governance guaranteed by the Constitution and implemented through a municipal council elected by the permanent residents of that administrative unit of the territory of the State and through an executive institution as well as other institutions and establishments of a municipality, which are formed by the latter and accountable to it. A municipality shall be a public legal person.

2. “Local self-government” means the self-regulation and self-action, in accordance with the competence determined by the Constitution and laws, of the permanent residents’ community of a law-defined administrative unit of the state territory, where the community enjoys the right to self-government guaranteed by the Constitution. by the State.

3. “Municipal institutions” means the following institutions responsible for the implementation of the right to self-government in the interests of the municipal community:

1) a representative institution of the municipality – the municipal council that possesses the rights and duties of local government and public administration;

2) an executive institution of the municipality (executive institutions) – the director of the municipal administration, deputy director(s) of the municipal administration (if this/these position(s) is/are set up and if the powers of an executive institution are delegated to this/these position(s)), who possess the rights and duties of public administration.

4. “Municipal controller (municipal control and audit service)” means an entity who supervises whether the municipal property and by the right of trust managed state property is managed and used in a legal, effective, economical and efficient manner, as well as the implementation of a municipal budget and the use of other monetary resources.

5. “Centralised service of internal audit of a municipality” means a structural unit of the municipal administration, set up to perform an audit in the municipal administration, administrating entities of a municipality or other public legal persons of a municipality; the service shall be subordinate and accountable to the director of the municipal administration.

6. “Undertakings controlled by a municipality” means municipal undertakings operating pursuant to the Law on State and Municipal Undertakings, companies with share capital and private limited companies the shares of which, giving more than ½ of votes at a general meeting of shareholders, belong to a municipality by the right of ownership, as well as undertakings in which a municipality may appoint more than half of the members of the administration, management or supervisory services of the undertaking.

7. “Administrating entities of a municipality” means institutions and establishments of a municipality, other entities that have the powers delegated to them by legal acts, carry out the functions of administration and are responsible for the implementation of such functions.

8. “Functions of municipalities” means functions related to local government, public administration and provision of public services defined by the Constitution and attributed to municipalities by this and other laws.

9. “Exclusive competence of the municipal council’’ means the competence defined by the Constitution and laws, which may not be taken over, interfered in, implemented by any other municipal institution. The municipal council may not renounce its exclusive competence or transfer it to other municipal institutions.

10. “General competence of the municipal council’’ means the competence defined by law, which is implemented by the municipal council or may transfer it to an executive institution(s) of a municipality in accordance with the procedure laid down by the municipal council.

11. “Municipal community” means permanent residents of a municipality related by common public needs, interests and local government legal relations to the municipal council and other municipal entities performing public administration functions.

12. ‘’Local community’’ means residents of a locality (part of it or several localities) linked by common needs and interests of life in the neighbourhood and acting through various forms of direct participation (assembly, public deliberation, poll, activities through their representatives, community organisations, etc.) with the aim of meeting these needs and interests.

13. ‘’Community organization’’ means an association the founders and members of which are residents (their representatives) of the community of a locality (part of it or several localities) and the purpose of which is to fulfil through initiatives public interests relating to life in the neighbourhood.

14. ‘’Elder’’ means a representative of the community of a locality situated within the territory serviced by a ward; the elder shall enjoy the rights and duties defined by this Law.

15. ‘’Meeting’’ means a meeting of elders – representatives of the communities of localities situated within the territory serviced by a ward. Such meeting shall solve the issues defined by this Law.

16. ‘’Faction of municipal councillors’’ means not less three municipal councillors which at the first or the next municipal council’s sitting declared by means of a public statement submitted to the presiding officer of the sitting that they continue activities in the municipal council as a faction.

17. “Group of municipal councillors” means municipal councillors who have not united into factions of municipal councillors.

18. “Majority of the municipal council’’ means a faction of municipal councillors and/or a group of municipal councillors which have/has delegated their/its candidates to an executive institution of the municipality or to the office of mayor, deputy mayor and which at the first or the next municipal council’s sitting have/has presented by a public statement submitted to the presiding officer of the sitting their/its activities programme, as well as a faction of municipal councillors and/or a group of municipal councillors which have not/has not declared by a public statement that it do not/does not participate in the formation of an executive institution of the municipality and have not/has not delegated their/its candidates to the office of mayor, deputy mayor.

19. ‘’Minority (opposition) of the municipal council’’ means a faction of municipal councillors and/or a group of municipal councillors which at the first or the next municipal council’s sittings declared by means of a public statement submitted to the presiding officer of the sitting that they/it do not/does not nominate their/its candidate to an executive institution of the municipality which is being formed and have not/has not delegated their/its candidates to the office of mayor, deputy mayor and have/has presented trends of their/its activities.

Article 4. Principles of local self-government

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

1) representative democracy;

2) the freedom of independence and activity of municipalities in accordance with the competence denoted in the Constitution and laws;

3) supremacy of the municipal council over accountable executive institutions of a municipality. The municipal council shall have the powers to control executive institutions set up by it and accountable to it;

4) accountability of executive institutions of a municipality to the municipal council. Decisions of executive institutions of a municipality must be based on laws, decisions of the Government and(or) the municipal council;

5) responsibility before the municipal community. Members of a municipal council (hereinafter referred to as “councillors”) shall be responsible and accountable to voters and all municipal community for their activities;

6) lawfulness of the activities of a municipality and decisions taken by municipal institutions. Activities of municipal institutions and other public administration entities of a municipality, as well as decisions taken on all the issues related to their activities must meet the requirements of laws and other legal acts;

7) adjustment of municipal and State interests when managing public affairs of municipalities;

8) adjustment of interests of the community and individual residents of a municipality. Decisions taken by municipal institutions with respect to the interests of the community may not violate individual residents’ rights guaranteed by the law;

9) participation of the residents of a municipality in the management of public affairs of the municipality. Municipal institutions shall provide conditions for the residents of a municipality to directly participate in preparing and debating draft decisions, organising polls, assemblies, meetings, public consideration of petitions, as well as promote other forms of civic initiatives. Municipal institutions shall implement principles of self-governance in educational, cultural and other establishments, support initiatives of associations related to the management of public affairs of a municipality;

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

11) publicity and responsiveness to the opinion of the residents of a municipality. The residents of a municipality or their representatives shall be entitled to get access to drafts of decisions of municipal institutions as well as decisions taken by them, to receive public and justified answers to the expressed opinion on work done by municipal institutions and other public administration entities of the municipality or individual civil servants;

12) ensuring and respect for human rights and freedoms. Decisions taken by municipal institutions or civil servants must not infringe human dignity, human rights and freedoms, as well as equal opportunities.

CHAPTER TWO

FUNCTIONS OF MUNICIPALITIES

Article 5. Functions of municipalities

1. According to discretion to take decisions, the functions of municipalities shall be divided as follows:

1) independent. Municipalities shall exercise these functions in accordance with the competence granted by the Constitution and laws, obligations to its community and for the interests thereof. When implementing the said functions, municipalities shall enjoy the freedom of initiative of decisions, their adoption and enforcement, and shall be responsible for the fulfilment of the said functions; When implementing these functions, activities of municipalities shall be bound by the requirements and order laid down by law, which, when this is provided for by law, shall be established in other legal acts as well;

2) State (delegated by the State to municipalities). These shall be State functions delegated to municipalities, taking into consideration interests of the population. When implementing the said functions, municipalities shall have the freedom of adoption of decisions, as prescribed by the law. Activities of municipalities carried out when implementing the above-mentioned functions shall be restricted by decisions of state institutions and/or officials. In certain cases the state functions may be delegated for implementation to municipalities on the basis of contracts. A municipality may conclude such a contract only in the event that the municipal council gives its consent. Usually, such functions shall be short-term or seasonal.

2. Functions of municipalities shall, in accordance with their type, be divided into local government, public administration and public service provision functions. Local government functions shall be exercised by the municipal council in the manner prescribed by the law. Public administration functions shall, in the manner prescribed by the law, be exercised by the municipal council, an executive institution (executive institutions) of a municipality, other heads of municipal establishments and services, civil servants 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, who are chosen by public tender.

3. In order to achieve general purposes a municipality may conclude joint activity contracts or public procurement contracts with State institutions and (or) other municipalities.

4. A municipality may transfer implementation of functions of administrative and public services to another municipality by mutual consent of the municipal councils, on the basis of contracts, however, the municipality which delegates the functions shall bear responsibility for the implementation of these functions.

Article 6. Independent functions of municipalities

Independent functions of municipalities (set out (assigned) by the Constitution and laws):

1) drawing-up and approval of a municipal budget;

2) setting of local fees and charges;

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

4) incorporation and maintenance of municipal budgetary establishments, incorporation of municipal public establishments, municipal undertakings and other municipal legal persons;

5) ensuring of learning according to the programmes of compulsory education of children under 16 years of age who live on the territory of a municipality;

6) organisation and coordination of the provision of educational assistance to a pupil, teacher, family, school, the implementation of minimal child care arrangements;

7) organisation of free of charge transportation to schools and to places of residence of pupils of schools of general education, who live in rural localities;

8) organization of pre-school education, non-formal education of children and adults, organisation of occupation of children and youth;

9) formation of hunting-ground units and changing of their boundaries;

10) organization of meal services according to the procedure laid down by legal acts in educational establishments, which implement education according to pre-school, pre-primary and general education programmes;

11) organisation and carrying-out of geodetic and cartographic works assigned to municipalities by the law;

12) planning and provision of social services, founding, maintaining of social services establishments and cooperation with non-governmental organizations;

13) cultivation of general culture and fostering of ethnoculture of the population (participation in culture development projects, establishment, reorganisation, transformation, liquidation of museums, theatres, culture centres and other cultural institutions as well as supervision of their activities, establishment, reorganisation, transformation of public municipal libraries as well as supervision of their activities);

14) provision of conditions for social integration of the disabled residing within the territory of a municipality;

15) setting-up of a social housing stock and its repairs, social housing rent;

16) participation in solving issues relating to employment of residents, acquiring of qualification and re-qualifying, organisation of public and seasonal works;

17) primary personal and public health care (founding, reorganization, liquidation and maintaining of establishments);

18) preparation and implementation of health schemes of municipalities; support of health care of the municipal population;

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

20) setting of special architectural requirements and issuing of documents permitting construction in accordance with the procedure laid down by the law;

21) supervision of exploitation of construction works in accordance with the procedure laid down by the law;

22) planning of the infrastructure, social and economic development, preparation of strategic development and actions plans, preparation of programmes related to the development of tourism, housing, small and medium undertakings;

23) participation in the preparation and implementation of regional development programmes;

24) implementation of information society development;

25) establishment, protection and management of protected territories of a municipalities;

26) maintenance and protection of the landscape, immovable cultural values and protected areas established by a municipality, protection, maintenance and development of green areas, vegetations, organisation and monitoring of inventory, accounting, cadastral measuring of land plots of separate green areas and their recording in the Real Property Register;

27) provision and change of addresses (names of streets, buildings, construction works and other facilities situated within the territory of a municipality and belonging to it by the right of ownership, numbers of buildings and flats or premises located in these buildings);

28) improvement and protection of environment quality;

29) development of physical training and sports, organisation of recreation of the population;

30) organization of supply of heat and drinking water, and wastewater treatment;

31) development of municipal waste management, organisation of secondary raw materials collecting and processing, establishment and exploitation of landfills;

32) maintenance, repairing, surfacing of municipal roads and streets of local significance, as well as organisation of traffic safety;

33) organisation of transportation of passengers by local routes, calculation and payment of compensations for preferential transportation of passengers;

34) participation, cooperation in ensuring public order, creating and implementing crime prevention programmes;

35) assigned to municipalities implementation of environmental noise prevention and state management of environmental noise;

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

37) establishment of the procedure for providing trade and other services in marketplaces and public places administrated by municipalities or undertakings controlled by them;

38) creation of conditions for the development of business and tourism, and promotion of such activities;

39) issuance of permits (licences) in cases and manner prescribed by the law;

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

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

43) provision of cash social assistance to poor residents in the municipalities specified by the Law of the Republic of Lithuania on Cash Social Assistance to Poor Residents;

44) other functions that are not assigned to state institutions.

Note. Versions of subparagraphs 43 and 44 shall be valid until 31 December 2014.

Article 7. State (delegated by the State to municipalities) functions shall be as follows:

State (delegated by the State 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) civil protection;

4) fire protection;

5) participation in the management of national parks;

6) calculation and payment of compensations (heating expenses, cold and hot water expenses, etc.);

7) organisation of pre-primary education, general education, vocational training and vocational counselling, ensuring of studying of children under 16 years of age, residing within the territory of a municipality, in accordance with compulsory education programmes, maintenance of schools (classes) which implement general education programmes and are designated for pupils having exceptional talents or special needs;

8) administration of free-of-charge meal provision for pupils at schools established by a municipality and schools not belonging to the State which were established within the territory of a municipality, as well as administration of provision with pupil supplies for pupils from low-income families, who have declared the place of residence or reside within the territory of a municipality;

9) calculation and payment of social benefits and compensations, except cash social assistance to poor residents in the municipalities specified by the Law of the Republic of Lithuania on Cash Social Assistance to Poor Residents;

Version of subparagraph 9 as of 1 January 2015:

9) calculation and payment of social benefits and compensations;

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

11) consideration of citizens’ requests to restore ownership rights to the existing real property, as well as adoption of decisions on the restoration of ownership rights in the cases and according to the procedure laid down by the law;

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

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

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

15) repealed;

16) participation in preparing for and implementing mobilization, demobilization, support of the host country;

17) provision of statistical data;

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

19) participation in organising elections and referendums provided for by law;

20) participation in holding opinion polls and other citizens’ (popular) initiatives provided for by law;

21) participation in the carrying-out of population and dwelling census as well as other total census;

22) protection of the rights of children and the youth;

23) administration of agricultural production quotas;

24) registration of agricultural holdings and farmers’ farms;

25) administration of activities related to declaration of agricultural land and crops;

26) implementation of programmes pertaining to the liquidation and monitoring of natural disasters, communicable diseases of animals, determining of losses and damage caused to the agriculture by hunted animals and wild animals of the strictly protected species;

27) management and use by the right of trust of land reclamation and hydrotechnical construction works which belong to the State by the right of ownership;

28) registration and technical maintenance of tractors, self-propelled and agricultural machines and their trailers;

29) administration of implementation of rural development measures;

30) provision of primary legal aid guaranteed by the State;

31) processing of data related to declaration of a place of residence and accountancy data of persons who do not have a place of residence;

32) ensuring of provision of social care to individuals with a severe disability;

33) gathering, storing and provision to the European Commission in the manner prescribed by the Government of the information about financial relations of municipal institutions and undertakings controlled by a municipality, which meet the criteria set by the Government, as well as about undertakings which must maintain separate accounts;

34) organization of the secondary and tertiary health care in the cases and according to the procedure laid down by the law;

35) radiation protection;

36) other functions delegated under laws.

CHAPTER THREE

RENDERING OF PUBLIC AND ADMINISTRATIVE SERVICES

Article 8. Rendering of public services

1. A municipality shall be responsible for rendering public services to residents. Municipal institutions and administration shall not render public services, with the exception of the cases provided for in this Article. They shall be rendered by budgetary and public establishments, municipal undertakings, companies with share capital and other entities.

2. In the absence of a provider of public services, a ward may, by the decision of the municipal council, render public services itself.

3. When rendering public services to residents of a municipality, their providers must act in compliance with laws, decisions of municipal institutions and other legal acts.

4. Public services shall be rendered to residents in accordance with the procedure laid down by legal acts for payment or free of charge.

5. A municipality must ensure that all residents of a municipality could make use of public services and that such services would be rendered constantly.

Article 9. Administration of the Provision of Public Services

1. A municipality shall administer and ensure rendering of public services to residents by determining the way, rules and regime of rendering of these services, setting up municipal budgetary and public establishments, selecting providers of public services in accordance with the procedure laid down by laws and other legal acts, and implementing supervision and control over rendering of public services.

2. A municipality 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.

3. If a ward shall, pursuant to paragraph 2 of Article 8 of this Law, render public services itself, a unit of the municipal administration shall be assigned to administer such services.

Article 10. Provision of Administrative Services

Administrative services shall be provided to residents by the director of the municipal administration and the municipal administration, other public administration entities of a municipality in accordance with the procedure laid down by the Law on Public Administration and other legal acts.

CHAPTER FOUR

MUNICIPAL INSTITUTIONS, ESTABLISHMENT AND POWERS THEREOF

Article 11. The municipal council:

1. The municipal council shall be an institution, which implements the right of self-governance.

2. The municipal council shall consist of representatives of the municipal community – members of the municipal council (hereinafter referred to as ’’councillors’’) who have been democratically elected pursuant to the procedure laid down by the law.

3. Procedure and form of the activities of the municipal council shall be established by this Law and the rules of conduct of the municipal council (hereinafter referred to as ‘’the rules of conduct’’).

4. 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.

5. A councillor shall acquire all the rights of a state politician and a representative of the municipal community only after having taken an oath in accordance with the procedure laid down by this Law.

6. Within the period of two months after the day of convocation of the first sitting of an elected new municipal council a municipal mayor must be elected, deputy (deputies) of the mayor and the director of the municipal administration must be appointed, and a municipal council board must be set up, if so decided.

7. If the election results of a new 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 introduction of temporary direct rule into the territory of the municipality.

8. When temporary direct rule is introduced on the territory of a municipality, the municipal council shall lose its powers or the powers of the municipal council shall be suspend during temporary direct rule, if the municipal council is unable to exercise its powers due to the circumstances related to introduction of a state of emergency within the territory of the municipality.

9. In the extraordinary circumstances when neither the municipal mayor, nor deputy municipal mayor(s) are able to carry out their duties for the reasons beyond their control, sittings of the municipal council shall be convened and the duties of mayor shall be carried out in accordance with the procedure laid down by the rules of conduct.

Article 12. Forms of activities of the municipal 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, councillors, municipal controller, municipal mayor and the director of the municipal administration. The municipal council shall take decisions on the issues under consideration and control their implementation.

2. The municipal council at least once a year in the manner prescribed by the rules of conduct must present a public report on the work done to the municipal community. On behalf of the municipal council the municipal mayor shall present the said report.

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

Article 13. Sittings of the municipal council

1. Municipal council’s sittings shall be considered lawful if the majority of the elected councillors are present.

2. The first sitting of a new elected municipal council shall be convened by the chairman of the constituency electoral committee not earlier than on the last day of office of the previous municipal council and not later than 7 calendar days following the last day of office of the previous municipal council, which is set in compliance with Article 119 of the Constitution, and if the elections have been held in an established new municipality or the municipality in which direct rule was introduced or run-off elections were held in the case provided for in Article 86 of the Law on Elections to Municipal Councils – not later than within two weeks of the proclamation of election results. This sitting shall be presided over by the chairman of the constituency electoral committee. The time and place of the first sitting shall, not later than 14 days in advance, be announced via the mass media by the chairman of the constituency electoral committee. If the chairman of the constituency electoral committee does not convene the first sitting of a new elected municipal council before the end of expiry of the time limit fixed in this paragraph, the councillors of a new elected municipal council shall gather on their own on the next day after the expiry of the said time limit. In this case, a sitting shall be presided over by the eldest councillor.

3. The first and other sittings of a new elected municipal council shall be presided over by the persons referred to in paragraph 2 of this Article, until a municipal mayor is elected. At the first sitting of a new elected municipal council:

1) municipal councillors shall take an oath;

2) public statements may be submitted to the officer presiding over the sitting concerning the uniting of municipal councillors into fractions, the formation of the majority and the minority (opposition) of the municipal council;

3) a decision shall be taken regarding the dismissal of the director of the municipal administration (deputy director of the municipal administration) because of the expiration of his term of office, and the assignment for him to hold office until a director of the municipal administration (deputy director of the municipal administration) is appointed for a new term of office;

4) a municipal mayor (hereinafter referred as ‘’mayor’’) shall be elected, a deputy mayor(s) and a director of the municipal administration may be appointed. A deputy mayor(s) and a director of the municipal administration may not be appointed if the mayor is not elected during the first sitting. In the event of failure to elect the mayor during the first sitting, the municipal council shall take a decision on the date of the next sitting. It must be convened not later than within 5 calendar days after the first sitting, and it shall be also presided over by the chairman of the constituency electoral committee.

4. 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 of the municipal council shall be presided over by the mayor and in the event he is absent (in the cases laid down by the rules of conduct) – by a deputy mayor. The mayor and in case of his absence - a deputy mayor must convene a sitting of the municipal council on the written demand of at least one-third of the elected councillors who submit issues subject to 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 of the municipal council 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.

5. Issues subject to consideration at a sitting of the municipal council, as well as draft solutions shall be submitted to the mayor by the committees, commissions, councillors, factions and groups of the councillors, municipal controller, director of the municipal administration. Only those issues shall be considered at municipal council sittings the draft decisions whereof are submitted in the manner prescribed by the rules of conduct. Submitted drafts of decisions shall be registered in accordance with the procedure laid down by the rules of procedure and shall be put on the webpage of a municipality not later than on the working day which follows their registration.

6. The mayor shall draw up an agenda of a sitting of the municipal council. The mayor must include in the agenda of a sitting the issues subject to consideration as well as the registered drafts of solutions not later than within four working days before the sitting of the municipal council. If the mayor fails to include the issues subject to consideration in the agenda of a sitting, the municipal council shall decide on their inclusion in the agenda.

7. The agenda of a sitting of the municipal council may be supplemented or amended by the decision of the municipal council on the proposal of the committee, commission, faction or one-third of the councillors attending the sitting, if because of these proposals the drafts of solutions are registered at least 24 hours before the beginning of the sitting. In the cases of extraordinary events, which meet the criteria approved by the Government, the mayor shall have the right to submit to the municipal council for consideration an issue and to propose to take a decision in the urgent procedure.

8. The mayor and in the event he is absent (in the cases laid down by the rules of conduct) – a deputy mayor or a councillor who has been authorised by the one-third of the councillors shall, not later than three working days preceding the beginning of a sitting, in accordance with the procedure laid down by the rules of conduct, notify about the time of the sitting of the municipal council, the issues and drafts of solutions prepared for consideration and registered pursuant to the rules of conduct all councillors, residents and a representative of the local community – the elder, when issues under consideration concern the local community represented by him.

9. 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 mayor shall have a casting vote. If the mayor does not attend a sitting, in the event of a tie it shall be considered that a decision has not been taken. Issues considered at sittings of the municipal council shall be voted by open ballot, with the exception of the cases when a mayor is elected, a deputy mayor, a director of the municipal administration, deputy directors of the municipal administration are appointed, the issue regarding the non-confidence in the mayor, deputy mayors, the director of the municipal administration, deputy directors of the municipal administration is solved. Secret voting in accordance with the procedure laid down by the rules of conduct shall be possible also in the cases where a chairman of the Control Committee, a deputy chairman of the Control Committee, a chairman of the Administrative Commission, a chairman of the Ethics Commission are appointed, the issue regarding the non-confidence in the chairman of the Control Committee, the deputy chairman of the Control Committee, the chairman of the Administrative Commission, the chairman of the Ethics Commission is solved. Data on the voting of each councillor shall be accessible to the public, with the exception of the cases of secret voting. The results of voting of the councillors shall be stored in the information medium and announced in the website of the municipality.

10. A councillor must disqualify himself when property and 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.

11. 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. If an issue which is being considered at a sitting of the municipal council is related to other persons attending the sitting, they shall be allowed to pose questions to the rapporteurs and to take the floor in accordance with the procedure laid down by the rules of conduct. If technically possible, sittings of the municipal council shall be broadcast in the website in accordance with the procedure laid down by the municipal council.

12. 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.

13. Minutes shall be taken at municipal council sittings. Minutes of the sitting and decisions of the municipal council must be signed by the mayor, his deputy or any other councillor who presided over that sitting. The minutes of sittings of the municipal council must be also signed by the council secretary and in case of his absence – a civil servant or an employee working in the municipal administration under the employment contract, who is appointed by the director of the municipal administration (with the mayor’s consent). 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.

Article 14. Committees of the municipal council

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 and the mayor.

2. The committees shall be set up of at least three councillors by the 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 factions of municipal councillors and a group of municipal councillors, if it consists of at least three municipal councillors. When setting up other committees, a principle of proportional representation of the majority and minority shall be adhered to. The number of the committees as well as their members, the powers of the committees, except the Control Committee, shall be established by the municipal council. The powers of the Control Committee shall be established by the municipal council, taking into consideration paragraph 4 of this Article. Working arrangements of the committees shall be laid down in the rules of conduct.

3. Chairmen and deputy chairmen of the committees, except the Control Committee, shall be elected by members of the committees. The municipal council shall, in accordance with the procedure laid down by the rules of conduct, appoint a chairman of the Control Committee on the proposal from the minority (opposition) of the municipal council, while a deputy chairman of the Control Committee – on the proposal from the mayor. If the minority (opposition) of the municipal council does not nominate a candidate to the chairman of the Control Committee or if the minority (opposition) of the municipal council is not proclaimed, a chairman and a deputy chairman of the Control Committee shall be appointed by the municipal council on the proposal from the mayor.

4. The control committee shall:

1) submit findings to municipal council regarding results of the activities of the municipal controller (municipal control and audit service);

2) propose to the municipal council to dismiss the municipal controller, if there are grounds for dismissal from civil service, laid down in laws;

3) consider a draft action plan of the municipal controller (municipal control and audit service) for next year and submit proposals regarding supplements or amendments of the said draft plan, in accordance with the procedure laid down by the rules of conduct return this draft plan prior to November 5 of the current year for approval by the municipal controller;

4) assess appropriations necessary for the implementation of an action plan of the municipal controller (municipal control and audit service) for next year and submit the opinion regarding the said appropriations to the municipal council;

5) consider a report prepared by the municipal controller regarding the implementation of the action plan of the controller (municipal control and audit service), 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 (municipal control and audit service);

6) 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;

7) periodically (once every quarter) consider the execution of the action plan of the municipal controller (municipal control and audit service), on the initiative of the municipal controller or on its own initiative hear out heads of institutions, establishments and undertakings concerning the elimination of deficiencies or violations of legal acts established by the municipal controller (municipal control and audit service) during the financial and performance audit, when necessary address the director of the municipal administration or the municipal council regarding the implementation of requirements of the municipal controller (municipal control and audit service);

8) 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. Committee sittings shall be legal if attended by more than half of all the committee members. The committees shall, within the limits of their competence, take recommendatory decisions. The municipal administration, its subdivisions, municipal budgetary and public establishments as well as undertakings controlled by the municipality must consider committee decisions related to their activities and inform the committees about the consideration results.

6. Representatives of the population – elders, experts, civil servants and other interested persons may take part in an advisory capacity in the work of the committees in accordance with the procedure laid down by the rules of conduct. When an issue related to the state, official or commercial secret is being considered at a committee meeting, the committee may decided to consider it at a closed sitting.

7. Agendas of sittings of the committees shall be announced in the webpage of the council not later than on the next working day following their approval.

Article 15. Commissions of the municipal council

1. For the duration of its term of office the municipal council shall set up the Administrative Commission and the Ethics Commission. On the recommendation of the mayor, the municipal council shall appoint chairmen of these Commissions from the councillors. If the minority (opposition) of the municipal council is announced, the candidature of chairman of the Ethics Commission shall be nominated by the mayor on the proposal from the minority (opposition) of the municipal council in accordance with the procedure laid down by the rules of conduct. If the minority (opposition) of the municipal council does not nominate a candidate to the chairman of the Ethics Commission, a chairman of the Ethics Commission shall be appointed by the municipal council on the proposal from the mayor. Civil servants appointed by the director of the municipal administration shall perform the duties of executive secretaries of the commissions; the said functions shall be entered in their job description.

2. The Administrative Commission shall consider cases of administrative offences assigned to its competence by the Code of Administrative Offences.

3. The Ethics Commission shall:

10 oversee the compliance by the municipal councillors with the requirements of this Law, the Code of Ethics for State Politicians, rules of conduct, other legal acts regulating activities and conduct of municipal councillors;

2) analyse the reasons of municipal councillors’ failure to attend sittings of the municipal council, committees and commissions and to carry out the duties laid down by this Law;

3) examine the received information regarding activities of a municipal councillor or incompatibility of his public and private interests;

4) examine proposals and remarks concerning the transparency of activities of a municipal controller, received from members of the municipal council, state institutions, local communities or community organisations;

5) submit a proposal to the Central Electoral Commission regarding the termination of the powers of a municipal councillor, if the said councillor has missed three sittings of the municipal council in a row without a justifiable reason.

4. 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.

5. Municipal councillors, civil servants, representatives of local communities and community organisations, other members of the municipal community may be members of the commissions which are set up by the municipal council. Representatives of local communities must make up not less than one-third of the Ethics Commission members.

6. The procedure for setting up the commissions of the municipal council shall be laid down in the rules of conduct. The municipal council shall approve the regulations of the commissions.

Article 16. Competence of the municipal council

1. The competence of the municipal council shall be exclusive and simple.

2. The exclusive competence of the municipal council shall be as follows:

1) approval of the rules of conduct. The rules of conduct must, among other issues, provide for main forms and ways of communication with the population, which would guarantee the implementation of principles and rights to local self-governance for the interests of the community;

2) election of mayor, his dismissal prior to the expiration of the term of office, fixation of the mayor’s salary;

3) setting of the number of deputy mayors, appointment of a deputy mayor (deputy mayors) on the recommendation of the mayor, his dismissal prior to the expiration of the term of office, fixation of the salary of a deputy mayor (deputy mayors) in accordance with the procedure laid down by law;

4) establishment of spheres of activities of a deputy mayor (deputy mayors) on the recommendation of the mayor;

5) taking of a decision on the formation of a municipal council board and formation of a municipal council board on the recommendation of the mayor;

6) setting-up of municipal council’s committees, commissions, other units necessary for organization of the work of a municipality, other commissions provided for in laws, as well as approval of their regulations;

7) appointment of chairman and deputy chairmen of the Control Committee, approval of a work programme of the Control Committee;

8) setting-up of a commission for selection of candidates to the position of municipal controller, taking of decisions on employment and dismissal of the municipal controller, forming of the municipal control and audit service on the recommendation of the municipal controller, setting of the maximum number of the positions of civil servants and employees working under the employment contract in this service, consideration of an annual report of the municipal controller (municipal control and audit service) and taking of a decision concerning the report, fixation of the salary of the municipal controller, which is provided for by laws, approval of the regulations of the municipal controller (municipal control and audit service);

9) employment and dismissal of director of the municipal administration (deputy director of the municipal administration); taking of decisions regarding establishment of the position(s) of deputy director of the municipal administration; taking of decisions on distribution of the functions, set in this Law, of the municipal executive institution to the director of the municipal administration and, if such a position (positions) is/are established – to a deputy director of the municipal administration; taking of decisions on the restriction of the right of the director of the municipal administration to delegate the implementation the functions; taking of decisions on deputizing for the director of the municipal administration, fixation of the salary of the director of the municipal administration and deputy director of the municipal administration;

10) approval of the structure of the municipal administration, regulations and salary fund, setting of the maximum possible of positions of civil servants and employees working under the employment contract in the municipal administration on the proposal from the director of the municipal administration on the recommendation of the mayor;

11) taking of decisions concerning establishment of positions of civil servants of political (personal) confidence of the mayor, determining of their number and forming of the secretariat of the municipal council on the recommendation of the mayor;

12) taking of a decision to recover damages from the director of the municipal administration and other public administration entities of a municipality, 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 these 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 work pays for the last six months;

13) taking of decisions on the establishment, abolishment of wards and determination of their number, conferment of names to the wards and change thereof, assignment of territories to the wards, defining of the boundaries of the territories serviced by the wards as well as the change of the said boundaries, after having evaluated the opinion of the residents;

14) approval of division (grouping) of localities or their parts into elderships on the recommendation of the director of the municipal administration;

15) approval of a set of municipal budget reports and municipal consolidated statements in accordance with the Law on the Budget Structure and the Law on Accountability of the Public Sector, when necessary, revision of the budget of the municipality;

16) taking of a decision on the formation of the mayor’s representation fund, the size of the mayor’s representation fund, the procedure for using of and accounting for the said fund;

17) taking of decisions on the allocation of additional and plan-exceeding budget revenue and other cash resources, as well as on the establishment and use of target and specialised funds;

18) taking of decisions on provision of tax, charges reliefs as well as other reliefs set by laws for account of the municipal budget, establishment of the procedure for provision of subsidies and compensations for all-type undertakings creating new jobs, by accordingly revising the municipal budget in the cases when no funds have been provided for this;

19) hearing in accordance with the procedure laid down by the rules of conduct of the reports of the mayor, the director of the municipal administration, the municipal controller, heads of budgetary and public establishments (the owner of which is a municipality), establishments and organizations controlled by a municipality, as well as their replies to the inquiries of the municipal councillors; taking of decisions on these reports and replies;

20) submission of proposals to the state institutions regarding the improvement of activities of the units of these institutions located on the territory of a municipality, when necessary, hearing of the heads of these units in accordance with the procedure laid down by the rules of conduct;

21) incorporation, reorganisation and liquidation of municipal budgetary and public establishments (the owner of which is a municipality), municipal undertakings, companies with share capital, private limited companies (hereinafter referred to as “legal persons of the municipality”), as well as participation in the incorporation, reorganisation and liquidation of public and private legal persons;

22) taking of decisions regarding the incorporation, reorganization and liquidation of public and private legal persons (the company member of which is the municipality);

23) taking of decisions on the establishment of joint undertakings together with other municipalities;

24) taking of decisions on the performance of an independent audit of a certain activity at the municipal establishments or the undertakings controlled by the municipality;

25) approval of a description of the procedure for signing contracts, which are being concluded in the name of a municipality; this description must define which contracts may not be concluded without a prior consent of the municipal council;

26) taking of decisions concerning the disposal of the property belonging to a municipality by the right of ownership, establishment of rules for the procedure of management, use and disposal of the said property, with the exception of the cases when such a procedure has been defined in laws or in other legal acts adopted on the basis of the laws;

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

28) taking of decisions on taking out loans and providing guarantees for long-term loans; these loans shall be used only to finance investment projects in accordance with the procedure laid down by the Government, confining to the limits on borrowing as set by law and upon the receipt of the conclusions of the municipal controller (municipal control and audit service);

29) taking of decisions on the expediency of granting of concessions; upon having received the conclusions of the municipal controller before the announcement of tendering, approval of tendering conditions and the essential characteristics of the concession contract, setting of phases of tendering and, upon the receipt of the conclusions of the municipal controller, approval of the final project of the concession contract before the signing of the concession contract;

30) taking of decisions on designing and building of social and industrial facilities, instructing of the municipal administration and other entities to perform the functions of a contractor of the said works;

31) taking of decisions on a procedure for forming a social housing stock (building, purchase, etc.), a procedure for granting a dwelling and on a rate of rentals of municipal living quarters;

32) approval of territorial planning documents in accordance with the procedure laid down by law, except approval of specialised and detailed plans;

33) establishment of protected territories of a municipality in accordance with the procedure laid down by the Law on Protected Areas, declaration of objects of natural and cultural heritage of local importance, which are protected by the municipality;

34) submission to the Government of decisions on proposals to change the boundaries of a municipality, to grant a name to a municipality and to change its name, to establish localities, to define their names and territorial boundaries and to change them, as well as giving and changing, according to the criteria set by the Government or an institution authorised by it, of the names of streets, squares, buildings, construction works and other objects belonging to a municipality by the right of ownership;

35) approval of municipal plans of action on noise prevention, indicators of noise within the territory of the municipality and strategic noise maps of urban agglomerations, territories of localities in which noise prevention and reduction measures must be implemented, and rules of noise prevention in public places; designation of silent zones. It shall supervise the fulfilment of the functions of the executive institution of the municipality, other subordinate public administration entities in the sphere of noise management;

36) approval of the rules the violation of which incurs administrative responsibility, as well as approval of other rules;

37) fixing of prices and tariffs for repayable services provided by undertakings controlled by a municipality, municipal budgetary and public establishments (the owner of which is the municipality), as well as for carriage of passengers on local routes, fixing (approval) in the manner prescribed by law of prices of district heat, cold and hot water supply, fixing of the rates of local fees and charges in the manner prescribed by law;

38) taking of decisions on the payment of compensations to specific groups of consumers, laying-down of the procedure for grating additional social support, social benefits and compensations from the municipal budget, fixing of the amount of a supplement to a natural person (guardian) for the guardianship of a child and the laying-down of the procedure for paying such supplement from the municipal budget;

39) laying-down of the rules of distribution of the support received in the name of a municipal budgetary establishment;

40) approval of municipal strategic development and actions plans, social, economic, rural development and other programmes;

41) taking of decisions on an analysis of the development of a municipal territory, preparation of projects of general long-term social, cultural, economic, investment, demographic, crime control and prevention, ecological, health and other programmes;

42) taking of decisions on joining municipality unions, co-operation with municipalities of foreign states or joining international self-government organisations;

43) delegating of municipal councillors to the regional councils, commissions defined by law, as well as conferring of the powers on them in accordance with the procedure laid down by the rules of conduct;

44) taking of decisions on the announcement of opinion polls of local population;

45) submission of proposals to approve in a prescribed manner the coats of arms of localities, approval of other symbols of a respective municipality and the procedure of the use thereof, the right to grant in a prescribed manner an honorary title of a resident of a municipality (its centre or another locality);

46) taking of decisions concerning the expediency of partnership with private entities; after the receipt of conclusions of the municipal controller before the publication of a contract notice necessary to implement partnership with private entities, the approval of terms and procedure of public procurement as well as principal conditions of a contract of partnership with private entities; after the receipt of the municipal controller, the assent to a final draft of the contract of partnership with private entities before the signing of such a contract.

3. The simple competence of the municipal council shall comprise the following:

1) employment and dismissal of heads of municipal budgetary establishments in accordance with the procedure laid down by legal acts, implementation of other functions relating to the employment relationship of the heads of these legal persons in accordance with the procedure laid down by the Labour Code and other legal acts;

2) approval of a set of financial statements of municipal budgetary establishments;

3) employment and dismissal of heads of municipal budgetary establishments in accordance with the procedure laid down by legal acts, implementation of other functions relating to the employment relationship of the heads of these legal persons in accordance with the procedure laid down by the Labour Code and other legal acts;

4) setting-up of collegial bodies of municipal public establishments (the owner of which is the municipality), when this is provided for in the statutes of a public establishment;

5) approval of a set of financial statements of municipal public establishments (the owner of which is the municipality);

6) approval of a procedure of internal control of municipal public establishments (the owner of which is the municipality);

7) taking of decisions on appropriation of target funds of state social and economic programmes and other funds of state foundations and other tangible property for municipal budgetary establishments;

8) approval of special and detailed plans of municipal level;

9) implementation of the rights and fulfilment of the duties assigned under laws to the competence of a participant of the legal person;

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

11) in accordance with the procedure laid down by the law, taking of decisions to issue permits to use areas intended for fishing in water bodies, approval of plans for measures aimed at the use, restoration and protection of fish stock in water bodies designated for fisheries;

12) taking of decisions on the change of the main designation of land use in accordance with the procedure and in the cases laid down by legal acts;

13) decisions on provision of premises to Seimas members in compliance with the Statute of the Seimas of the Republic of Lithuania.

4. If legal acts establish additional powers for a municipality, the municipal council shall enjoy the initiative of taking decisions on the execution of such powers, without exceeding the defined powers.

5. The municipal council shall, in accordance with the procedure laid down by the rules of conduct, supervise executive institutions and other entities of the municipality, which directly fulfil the state functions (delegated to the municipality).

6. The municipal council may not delegate the powers assigned to the exclusive competence of the municipal council to any other municipal institution or establishment.

7. The municipal council may delegate the concrete powers, referred to in paragraph 3 of this Article, for fulfilment to the director of the municipal administration or the deputy director(s) of the municipal administration (should such position(s) is/are established). If an executive institution of the municipality may not fulfil (due to the conflict of the public and private interests) the powers set out in paragraph 3 of this Article and delegated to her by the municipal council, the said powers shall be fulfilled by the municipal council.

Article 17. Municipal council’s board panel

1. The municipal council may, for the term of its office, set up a municipal council’s board panel (hereinafter referred to as ‘’the board panel’’) from the councillors.

2. The number of members of the board panel, working arrangements, procedure for organising its sittings shall be laid down in the rules of conduct.

3. The board panel shall be an advisory body of the municipal council.

4. The board panel shall usually consider the following issues:

1) analyses activities of units of the state institutions located in the territory of a municipality, submit proposals to the municipal council regarding the improvement of work of these units and hearing of their heads;

2) considers and submits proposals concerning an analysis of the development of the municipal territory, organisation of projects of general long-term social, cultural, economic, investment, demographic, crime control and prevention, ecological, health and other programmes;

3) plans priorities of training of municipal councillors (each year);

4) considers issues on the setting-up of the secretariat of the municipal council or on the establishment of positions of civil servants of political (personal) confidence of the mayor (if a secretariat is not established) as well as setting of their number.

Article 18. Provisions on suspension of, repeal of, appeal against legal acts

1. Legal acts adopted by the municipal council may be suspended, amended or repealed by the municipal council itself. Legal acts adopted by other public administration entities of a municipality may be suspended or repealed by the municipal council within its remit. The director of the municipal administration or other municipal public administration entities may suspend and amend or repeal legal acts which they adopt. Legal acts adopted by a deputy director of the municipal administration within the limits of his competence may be suspended or repealed by him or by the director of the municipal administration.

2. Any municipal institution specified in paragraph 1 of this Article, upon having repealed a statutory administrative legal act of another public administration entity of a municipality, shall, when necessary, refer the issue for a new consideration to the same administrating 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 adoption of such an act is not necessary.

3. Administrative legal acts adopted by municipal institutions and other public administration entities of a municipality may be appealed against in the court.

Article 19. Mayor, deputy mayor

1. For the term of its powers, the municipal council shall elect municipal mayor from among the councillors, and on the proposal of the mayor, shall appoint one or several deputy mayors. The maximum possible number of deputy mayors of a municipality shall be fixed taking into consideration the number of the municipal councillors. Not more than three positions of deputy mayor of a municipality may be established in the municipality the council of which consists of 41 and more councillors; not more than two positions of deputy mayors of a municipality may be established in the municipality the council of which consists of 27-31 councillors; and not more than one position of deputy mayor may be established in other municipalities. The mayor shall head a municipality. Only the citizens of the Republic of Lithuania may become mayors and 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.

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 municipal councillors vote:

1) on the proposal of the Government or the National Audit Office, for violations of laws or other legal acts which have inflicted essential damage to State or municipal interests and 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 of 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 municipal 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 municipal 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 half a year.

4. On the recommendation of the mayor, the powers of a deputy mayor shall be terminated before the expiry of the term of office, if the majority of all the councillors vote for the decision to dismiss the deputy mayor.

5. The powers of the mayor, deputy mayor shall be terminated if they lose the citizenship of the Republic of Lithuania or a mandate of municipal councillor.

6. Upon the expiry of the powers of the municipal council, the powers of the mayor elected by that municipal council and the powers of the deputy mayor shall terminate.

7. After the expiry of the term of office, the mayor and his deputy, if not elected mayor or appointed deputy mayor, or if he loses his powers before the expiry of the term of office (with the exception of the cases when the mayor, deputy mayor loses his powers in accordance with the procedure laid down in subparagraphs 1 and 3 of paragraph 2 of this Article) 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 or lower category, if the position held is attributed, in accordance with legal acts, to the position of a civil servant (except the position of a civil servant of political (personal) confidence). Moreover, in the case laid down in this paragraph the mayor and deputy mayor shall have the right to return to the position they had before they have been elected as municipal councillors, provided that they held this position in a municipal or state budgetary or public establishment or an undertaking controlled by the municipality, and if there is no such possibility – to return to another position in a municipal or state budgetary or public establishment or an undertaking controlled by the municipality. If these persons did not hold such positions prior to being elected as municipal councillors or they have refused other proposed positions of a lower category which are under legal acts attributed to the positions of civil servants (with the exception of the positions of civil servants of political (personal) confidence), or another positions in a municipal or state budgetary or public establishment or an undertaking controlled by the municipality, they shall be paid a payment in the amount of their average salary of three months. It shall be paid within 3 months in equal parts every month. If a person begins holding a position in civil 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 1/2 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, establishments, undertakings and organisations and receive any other payment, with the exception of payment for scientific, pedagogical or creative activities. This provision shall not apply if a deputy mayor holds the position on a voluntary basis.

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

11. The provisions of the Labour Code, with the exception of the provisions regulating work and rest time, leave specified in paragraph 12 of this Article, material liability, health and safety at work, shall not apply to the mayor, deputy mayor.

12. Leave shall be granted to the mayor, deputy mayor at the decision of the municipal council or a person authorized by it in accordance with the procedure laid down by the rules of conduct. The mayor and deputy mayor shall be entitled to a minimum annual leave of 28 calendar days. The leave of the following types may be granted to the mayor and deputy mayor in compliance with the Labour Code: maternity, paternity, educational, for performance of official or public duties, unpaid. An unpaid leave to participate in the elections to the Seimas, presidential elections, elections to the European Parliament or elections to municipal councils shall be granted in accordance with the procedure prescribed by laws. During the leave the mayor and deputy mayor shall not carry out the duties of mayor or deputy mayor, however, they may carry out the duties of councillor.

13. The mayor and deputy mayor shall go on a business trip in accordance with the procedure laid down by the rules of conduct.

14. A secretariat of the municipal council (hereinafter referred to as the “secretariat”) may, on the mayor’s proposal, be set up to provide services for sittings of the municipal council, the committees, the mayor, as well as to prepare, consider drafts of decisions of the municipal council and to prepare drafts of conclusions regarding municipal council’s decisions. The municipal administration shall carry out financial, economic and material servicing to a secretariat. The municipal council shall fix a separate estimate of expenditure of a secretariat. A secretariat may be formed from civil servants of political (personal) confidence of the mayor, career civil servants and employees working under the employment contract. In the event a secretariat is not formed, the mayor may, for the duration of the term of office, have civil servants of political (personal) confidence. A municipal councillor may not be a civil servant of political (personal) civil servant.

15. The size of the mayor’s representation fund designated to cover the expenses relating to representation in Lithuania and abroad shall be fixed without exceeding the general funds allocated to represent the municipality. The said size shall depend on the number of the municipal councillors: the municipal council consisting of 41 and more councillors may each month allocate the sum in the amount of up to three average monthly earnings in the national economy as most recently announced by the Department of Statistics (hereinafter referred to as “AMEs”), the municipal council consisting of 27-31 councillors – up to two AMEs and other municipalities – up to one AME.

Article 20. 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.

2. The mayor:

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

2) in accordance with the procedure laid down by the rules of conduct, shall himself 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) shall represent a municipality in the Regional development council and have the right of casting vote when preparing and implementing a regional development programme;

4) shall nominate to the municipal council the candidates for deputy mayor (deputy mayors), director of the municipal administration, deputy director of the municipal administration (on the recommendation of the director of the municipal administration) and chairmen of the commissions set up by the municipal council; may propose to dismiss them and propose to impose penalties on the director of the municipal administration;

5) shall submit to the municipal council a draft of a decision defining fields of activities of a deputy mayor (deputy mayors);

6) shall submit to the municipal council a proposal to set up a municipal council’s board panel;

7) shall submit to the municipal council proposals on the setting-up of the secretariat of the municipal council or on the establishment of positions of civil servants of political (personal) confidence of the mayor (if a secretariat is not established) as well as setting of their number;

8) shall approve regulations of the secretariat of the municipal council, employ and dismiss employees of the secretariat in accordance with the procedure laid down by the Law on Civil Service and the Labour Code;

9) shall guide the work of the secretariat of the municipal, council;

10) may, in the manner prescribed by the rules of conduct, propose to the municipal council to instruct the municipal controller (the municipal control and audit service) to carry out a financial and performance audit, not provided for in an action plan, of the municipal administration, administrating entities of the municipality or undertakings controlled by the municipality, accept from the municipal controller (the municipal control and audit service) audit reports and conclusions on the results of the carried-out financial and performance audit, when necessary, shall organise consideration of such reports and conclusions at sittings of the municipal council’s committees and the municipal council;

11) shall control and supervise activities of heads of municipal institutions, establishments and undertakings of public administration, how they implement laws, decisions of the Government and the municipal council;

12) upon having received the consent of the municipal council, shall conclude agreements relating to the co-operation of a municipality with State institutions, other municipalities or institutions of foreign countries;

13) shall co-ordinate preparation for an opinion poll of local population and organise it;

14) shall, in accordance with the procedure laid down by the municipal council, use for representation purposes the resources of the mayor’s representation fund and account for the said resources.

3. The mayor shall look to it that:

1) the municipality is adequately represented in the Regional Development Council and the decisions adopted by this Council are adequately implemented in the municipality;

2) projects of analysis of the municipal territory development and projects of long-term social, cultural, economic, investment and other programmes are timely and properly prepared and the control of their implementation is ensured;

3) adequate conditions and opportunities are provided for inclusion of local community members in the management of local affairs;

4) even cooperation of the municipal councillors with all voters of the municipality (within the entire municipal territory);

5) adoption of decisions of the municipal council and activities of the committees of the municipal council are improved;

6) interests of the municipality are properly represented when cooperating and solving issues with state power and state administration entities, law enforcement institutions, non-governmental organizations, municipalities of foreign states.

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

5. For the issues falling within the scope of his competence, the mayor may set up working groups from the municipal councillors with their consent, civil servants and employees working under the employment contract in the municipal administration and delegated to such working groups by the director of the municipal administration, as well as from other persons and public representatives operating within the municipal territory.

6. The mayor may not be a member of the committees set up by the municipal council.

7. The mayor shall, in accordance with the procedure laid down by the rules of conduct and at least once a year report to the municipal council about his activities; he shall also prepare and submit a report on the activities of the municipality to the voters and the whole municipal community.

8. A deputy mayor shall carry out functions established by the municipal council and instructions of the mayor. The municipal council shall lay down the functions of the deputy mayor for the term of office of the deputy mayor and may alter them on the proposal of the mayor. In the event the mayor cannot carry out his duties, a deputy mayor shall exercise all duties of the mayor, except for the powers provided for in subparagraphs 4-8 of paragraph 2 of this Article. Activities of the mayor and the procedure of deputizing for him shall be laid down in the rules of conduct.

Article 21. Entry into force of legal acts of municipal representative and executive institutions, municipal mayors

The procedure for entering into force of legal acts adopted by municipal representative and executive institutions, and by municipal mayors shall be laid down by the Law on the Procedure for Proclaiming and Entry into Force of Laws and other Legal Acts.

CHAPTER FIVE

COUNCILLORS

Article 22. Status of municipal councillor

1. The councillor shall be a representative of the municipal community elected by the permanent residents of the municipality in accordance with the procedure established by the Law on Elections to Municipal Councils. The powers of a member of the newly elected municipal council shall begin and the powers of a member of the municipal council of the previous term of office shall end on the day when the newly-elected council gathers to the first sitting and the member of this council takes an oath in it.

2. The municipal councillor shall be entitled to choose one of the following texts of the oath:

1) ‘’I (forename, surname) swear to respect and observe the Constitution and laws of the Republic of Lithuania, to conscientiously perform all duties of municipal councillor and to refrain from actions violating the rights of residents and public interests. So help me God.”;

2) ‘’I (forename, surname) swear to respect and observe the Constitution and laws of the Republic of Lithuania, to conscientiously perform all duties of municipal councillor and to refrain from actions violating the rights of residents and public interests.’’

3. The procedure for taking the oath of municipal councillor shall be as follows:

1) the oath of municipal councillor shall be administered by the chairman of the constituency electoral committee;

2) a municipal councillor shall take the oath while standing in front of the person who administers the oath, and reading the oath, holding his hand on the Constitution of the Republic of Lithuania;

3) upon having read the oath, a municipal councillor shall sign the nominal oath sheet;

4) the text of the oath shall not be amended and changed; The municipal councillor who has not complied with this provision, who has refused to sign the nominal oath sheet or who has signed the sheet with a stipulation, shall not be considered to have taken the oath;

5) nominal oath sheets shall be handed over to the person who has administered the oath; the latter shall check them and read the surnames of the municipal councillors who have acquired all of the rights and duties of municipal councillor;

6) a municipal councillor must take the oath in the sitting in which he participates for the first time after the election to a municipal council. In the event that a municipal councillor takes the oath not in the first sitting of the municipal council, the oath shall be administered by the member of the Central Electoral Commission upon the instruction of the chairman of the Central Electoral Commission.

4. The municipal councillor who fails to take the oath in compliance with the procedure laid down by this Law shall lose the mandate of municipal councillor. The person who administers the oath shall inform the Central Electoral Commission about this and the Commission shall take a decision. Such a decision of the Central Electoral Commission may be appealed against to the Supreme Administrative Court.

5. The councillor shall be entitled to get a certificate of municipal councillor. Following the taking of the oath, such a certificate shall be presented to him by the person who has administered the oath.

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

7. The rights and duties of the municipal councillor shall be defined by the Constitution, this and other laws, rules of conduct.

Article 23. Duties of the municipal councillor

The municipal councillor must:

1) attend sittings of the municipal council;

2) be a member of one committee (besides 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 Civil Service;

5) communicate with voters on a constant basis and report to voters at least once a year in accordance with the procedure laid down by the rules of conduct.

Article 24. Rights of the municipal councillor

The councillor shall have the right:

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

2) in the manner prescribed by the rules of conduct to propose to the municipal council to consider issues, prepare drafts of municipal council’s decisions, receive from the municipal administration or other municipal establishments, undertakings controlled by the municipality the information related to the issues considered or to be considered at the municipal council, participate in discussions on the issues under consideration, present remarks in writing or orally concerning drafts of municipal council’s decisions, work procedure of the municipal council, etc., during a sitting of the municipal council pose questions to rapporteurs, express opinion regarding the order of conducting a sitting, appeal with inquiries to heads and civil servants of municipal institutions, municipal administration, other municipal establishments, undertakings and organisations, as well as State institutions which function within the municipal territory;

3) to participate and speak at sittings of the committees and commissions in which the issues presented by him or related to his conduct are considered;

4) to unite into factions in accordance with the procedure laid down by the rules of conduct;

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. Suspension of the powers of the municipal councillor or Discontinuation of them Prior to their expiration

1. If the municipal council cannot exercise its powers due to the circumstances pertaining to the introduction of a state of emergency on the territory of a municipality, the powers of councillors shall be suspended for the period of temporary direct rule.

2. Discontinuation of the powers of the municipal councillor prior to their expiration shall be defined by the law.

Article 26. Remuneration of the municipal councillor

1. Councillors, with the exception of the mayor and deputy mayor, shall be remunerated (paid) for the working time while performing the duties of the municipal councillor. Such remuneration shall be calculated in accordance with the amount of the AMW, taking into consideration the actual length of work, the duration of which is confirmed pursuant to the procedure laid down in the rules of conduct. The amount of this remuneration shall be fixed by the municipal council.

2. Each month an allowance may be granted, subject to accountability, to a councillor to pay for the stationery, post, telephone, internet link, transport expenses related to his activities as the councillor, to the extent they are not rendered or paid for directly by the municipal administration. The amount of this allowance and the procedure for accounting shall be set in the rules of conduct.

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

4. The councillor shall be released from his direct job or duties in any institution, establishment, undertaking or organisation for the duration of sittings of the municipal council, committees, as well as in other cases provided for in the rules of conduct.

CHAPTER SIX

MUNICIPAL CONTROL AND AUDIT

Article 27. Municipal controller (municipal control and audit service)

1. When supervising whether the municipal property and by the right of trust managed state property is managed and used in a legal, effective, economical and efficient manner, as well as the implementation of a municipal budget and the use of other monetary resources, the municipal controller (municipal control and audit service) shall:

1) carry out the financial and performance audit in the municipal administration, entities administrated by the municipality and undertakings controlled by the municipality;

2) annually prepare and submit to the municipal council within the time limit and in accordance with the procedure an opinion concerning a report on the property belonging to the municipality by the right of ownership and the state property managed by the right of trust, as well as an opinion on a set of reports on the implementation of the budget which is submitted for approval;

3) prepare and submit to the municipal council the findings necessary to take decisions, regarding the use by the municipality of bank credits, taking-out and granting of loans, provision of guarantees and suretyship to creditors for loans taken out by undertakings controlled by municipalities;

4) prepare and submit to the municipal council the findings necessary to take decisions, providing the grounds to the municipal council for approval of conditions of tendering for the award of the concession and the principal terms and conditions of the concession contract; draw up an opinion for the final draft of the concession contract, if the municipal council has set out the phases of tendering before the signing of the concession contract;

5) prepare and submit to the municipal council the conclusions necessary to take decisions; such conclusions provide the basis for the municipal council to approve terms and procedures of public procurement as well as principal conditions of a contract of partnership with private entities; after the municipal council defines the terms and procedure of public procurement as well as the principal conditions of the contract of partnership with private entities, prepare conclusions regarding a final draft of the contract of partnership with private entities before the signing of such a contract;

6) prepare and submit to the municipal council the findings necessary to take decisions, regarding the economic and financial position of debtors and the debtors the fulfilment of whose commitments are guaranteed by the State, as well as regarding the funds borrowed in the name of the State, the granted loans and the provision of state guarantees, use of loans according to the target purpose, and the repayment of loans;

7) at the request of the National Audit Office of Lithuania, submit the reports on the audits conducted by the municipal controller (municipal control and audit service) and working documents for conducting external supervision;

8) perform other functions provided for in laws and other legal acts.

2. For the implementation of the functions of the municipal control and audit, the municipal council shall, on the advice of the municipal controller, establish (and when the number of residents of a municipality is less than 30 thousand, may establish) a municipal control and audit service. The municipal controller shall direct this service and shall be responsible for its activities. If a municipal control and audit service is not established, controllers of other municipalities (civil servants of the control and audit service) may be invoked to conduct an external audit provided for in the plan.

3. The municipal controller (municipal control and audit service) shall have his own seal with the business name and the coat of arms of the municipality on it. The municipal controller shall be accountable to the municipal council. The municipal council shall set in the municipal budget the amount of appropriations allocated for the municipal controller (municipal control and audit service). The municipal administration shall render financial, economic, material services to the municipal controller, if a legal person is not established; the provision of services must not exceed the estimate of expenditure of the municipal controller.

4. The activities of the municipal controller (municipal control and audit service) shall be based on the principles of independence, legality, openness, objectivity and professionalism.

5. In his activities the municipal controller (municipal control and audit service) shall observe this and other laws, State audit requirements, methodologies prepared by the National Audit Office, and other legal acts.

6. The legal basis of employment relations of the municipal controller, civil servants of the office of the municipal control and audit service shall be established by the Law on Civil Service and the present Law.

7. The municipal controller, civil servants of the municipal control and audit service may not be members of the municipal council and, during their work, may not participate in activities of political parties. Moreover, the position of the municipal controller and civil servants of the municipal control and audit service shall not be compatible with any other elective office in state and municipal institutions, establishments and undertakings.

8. The municipal controller shall be appointed to his position by competition and shall be dismissed in the manner prescribed by the Law on Civil Service. The municipal controller must have a higher university education and the working experience of at least three years in the spheres of finance, economics, law, audit, control or public administration.

9. The municipal controller shall:

1) if a municipal control and audit service is established, approve the structure of this service, the list of positions, job descriptions and staff regulations. in accordance with the procedure laid down by the Law on Civil Service, employ and dismiss civil servants; in accordance with the procedure laid down by the Labour Code, employ and dismiss employees working under the employment contract; fulfil other functions of management of the personnel of the municipal control and audit service;

2) issue orders, organise the work of the municipal control and audit service, training of civil servants and improvement of their qualification;

3) draw up a draft plan of activities of the municipal controller (municipal control and audit service), with the consent of the Control Committee of the municipal council, submit this draft plan to the National Audit Office and municipal centralized internal audit service. He shall, annually before the 15th of November of the current year, approve a plan of activities of the municipal controller (municipal control and audit service), organize its implementation and be responsible for that. when necessary, revise the approved plan in accordance with the general procedure for approving the plan;

4) submit a plan of activities of the municipal controller (municipal control and audit service) annually to the National Audit Office within 10 days after its approval;

5) have the right to attend sittings of the municipal council, committees, council board (if it is set up), commissions and to express his opinion on the issues within his remit;

6) upon the written request of the Auditor General, may participate or instruct civil servants of the municipal control and audit service to take part within their remit in financial and performance audits of the administrating entities of the municipality, carried out by the National Audit Office officers;

7) carry out himself and (or) assign civil servants of the municipal control and audit service to carry out external financial and performance audit, fulfil the functions assigned to him in laws and other legal acts;

8) make decisions pursuant to financial and performance audit reports, indicate to the director of the municipal administration, heads of the audited entities the shortcomings in their activities and fix a time limit for the elimination of the determined violations of legal acts. The director of the municipal administration, heads of the audited must, within the time limit fixed by the municipal controller (which must not be shorter than 30 days), eliminate the shortcomings and violations determined during the audit, and inform in writing the municipal controller about the elimination thereof;

9) present to the mayor, municipal executive institution, heads of the audited the findings, reports and decisions made on the violations of legal acts determined during the financial and performance audit, but which have not been eliminated; Audit reports and findings shall be announced in the website of the municipality and, where possible, through other means of the mass media;

10) annually submit to the municipal council within the time limit and in accordance with the procedure defined in the rules of conduct an opinion concerning a report on the property belonging to the municipality by the right of ownership and the state property managed by the right of trust, on a set of consolidated financial reports of the municipality, which is submitted for approval, as well as on the use of the budget and assets of the municipality;

11) upon having established during the financial and performance audit evidences of criminal actions, inform law enforcement institutions about such facts;

12) take preventive measures so that the established violations of legal acts would be eliminated and would not repeat;

13) consider residents’ requests, notifications, complaints and applications regarding municipal funds and property, use, management and disposal of the state property managed by the right of trust, and submit conclusions on the results of such investigation;

14) in accordance with the procedure established by laws and other legal acts, furnish information to State and municipal institutions;

15) submit a report on the activities of the municipal control and audit service in compliance with the procedure and within the time limits set out in the rules of conduct. He shall announce the report on the activities of the municipal control and audit service or its summary in the local press, the website of the municipality, and, if possible, through other means of the mass media as well;

16) upon the request of the municipal council or the Control Committee of the municipal council, furnish information within the limits of his competence;

17) carry out the audit of the execution of the municipal budget and the use of other monetary resources;

18) be responsible for the discharge of the powers provided for the municipal controller by laws and other legal acts, as well as for the submission of the unfounded and incorrect audit findings;

19) in the cases provided for in the Code of Administrative Offences, draw up records of administrative violations of the law and present them to the municipal administrative commission for consideration in the manner prescribed by law;

20) furnish information to the representative of the Government about the opinion and recommendations submitted by the municipal controller.

10. Civil servants of the municipal control and audit service shall:

1) on the instruction of the municipal controller, carry out regular financial and performance audits of auditees as well as the financial and performance audits, which are not provided for in the operational plan;

2) during the financial and performance audit, have the right to get access to the facilities, obtain all the documents necessary for the financial and performance audit, receive written explanations from employees of the auditee, invoke experts (specialists) who have the necessary knowledge to solve the issues arising during the audit;

3) in accordance with the procedure laid down by the law, be responsible for inadequate performance of the functions designated for them, for the submission of an unsubstantiated or incorrect opinion;

4) in the cases provided for in the Code of Administrative Offences, draw up records of administrative violations of the law and present them to the Administrative Commission of the municipal council for consideration in the manner prescribed by law.

11. When conducting an audit, the municipal controller (municipal control and audit service) shall have the right to make use of the audit reports and work documents of the municipal centralized internal audit service, which are necessary to carry out internal control evaluation, if the auditee and the purposes coincide; he (it) shall also have the right to get access to the documents of other external audits conducted in municipal establishments and undertakings.

Article 28. Municipal centralised internal audit service

1. A municipal centralized internal audit service (hereinafter referred to as “internal audit service”) shall be set up by the municipal council when approving the structure of the municipal administration.

2. The head of the internal audit service and internal auditors shall be career civil servants. The director of the municipal administration shall set up a commission for the competition of candidates to the position of head of the internal audit service. A representative of the Ministry of Finance must be invited to be a member of the said commission.

3. The head of the internal audit service shall direct the service and be responsible for its activities. The service shall be accountable to the director of the municipal administration. He shall ensure the independence of activities of as well as organisational independence of the internal audit service; he may not transfer the said function to other civil servants or employees of a public legal person.

4. The internal audit service shall operate in compliance with an annual action plan of the internal audit service, which is co-ordinated with the director of the municipal administration. The director of the municipal administration may instruct the internal audit service to conduct an internal audit, which has not been provided for in the annual action plan of the internal audit service. An internal audit which has not been provided for in the annual action plan of the internal audit service may be conducted at the decision of the head of the internal audit service; such decision must be coordinated in writing with the director of the municipal administration.

5. Having drawn up a draft of the action plan of the internal audit service by the first of November of a current year, the service shall submit it to the municipal controller (municipal control and audit service) with the purpose of mutual coordination of activities. After the municipal controller (municipal control and audit service) familiarizes himself/itself with a draft of the action plan of the internal audit service, the said draft shall, by the 15th of November of a current year, be submitted to the National Audit Office of Lithuania. An action plan of the internal audit service of a coming year must be coordinated with the head of the municipal executive institution by the 31st of December of a current year. The approved plan shall be revised in accordance with the general procedure for approving the plan.

6. The internal audit service shall perform its function by conducting internal audits and formulating recommendations on the basis of the audit results. Internal auditors shall present reports of the carried-out audits to the director of the municipal administration and the heads of the auditees. The latter must make decisions regarding the implementation of internal audit recommendations. Moreover, reports of the carried-out internal audits may be submitted to the municipal council, the control committee of the municipal council, the mayor and the municipal controller, if they request this in writing.

7. In order to keep objectivity and independence, the head of the internal audit service and internal auditors may not participate in the management bodies of administrating entities of the municipality, undertakings controlled by the municipality and public legal persons of the municipality, may not participate in drafting of documents improving the internal control system or creating, defining and implementing of the internal control, including financial control of the municipal administration and its units, undertakings controlled by the municipality and municipal public legal persons, as well as the procedures of such control.

8. The internal audit service shall act in compliance with the Law on Internal Control and Internal Audit, and other legal acts, which regulate internal audit.

CHAPTER SEVEN

MUNICIPAL EXECUTIVE INSTITUTION, PUBLIC ADMINISTRATION ESTABLISHMENTS, THEIR FORMATION AND POWERS

Article 29. The municipal executive institution

1. The executive institution of the municipality (executive institutions) – the director of the municipal administration, deputy director(s) of the municipal administration (if this/these position(s) is/are set up and if the powers of the executive institution are vested in this/these position(s)), who possess the rights and duties of public administration. The director of the municipal administration shall be subordinate to the municipal council, accountable to the municipal council and the mayor.

2. The director of the municipal administration shall head the municipal administration. He shall be the head of the establishment. The procedure of appointment and dismissal of the director of the municipal administration shall be laid down by this Law and the Law on Civil Service.

3. The director of the municipal administration shall be appointed to the position on the mayor’s recommendation, at the municipal council’s decision for a period of the powers of the municipal council on the basis of political (personal) confidence. The number of terms of office shall not be limited for the same person. A deputy director of the municipal administration (deputy directors of the municipal administration) shall be appointed to the office on the recommendation of the director of the municipal administration, at the proposal of the mayor, on the decision of the municipal council, on the basis of political (personal) confidence. The municipal council shall impose disciplinary on the director of the municipal administration (deputy director(s) of the municipal administration) for misconducts in office. The procedure for imposing disciplinary penalties shall start on the initiative of the mayor or on the grounds of the written information received by him regarding misconducts in office done by the director of the municipal administration (deputy director(s) of the municipal administration).

4. The municipal council shall decide on the establishment of the position of deputy director(s) of the municipal administration and on deputizing for the director of the municipal administration. The maximum possible number of deputy directors of the municipal administration shall be set taking into consideration the number of the municipal councillors. Not more than three positions of deputy mayor of a municipality may be established in the municipality the council of which consists of 41 and more councillors; not more than two positions of deputy mayors of a municipality may be established in the municipality the council of which consists of 27-31 councillors; and not more than one position of deputy mayor may be established in other municipalities.

5. During the holidays of the director of the municipal director or during his illness, or when he is temporarily unable to perform his duties because of other reasons, a deputy director of the municipal administration shall, in accordance with the procedure laid down by the rules of conduct, perform the duties of the director of the municipal administration, defined in this Law and other laws as well as in other legal acts. If the position of deputy director of the municipal administration is not established, during the holidays of the director of the municipal administration or during his illness, or when he is temporarily unable to perform his duties because of other reasons, any other civil servant of the municipal administration shall, in accordance with the procedure laid down by legal acts, be instructed to perform the functions defined in the job description of the director of the municipal administration.

6. Upon the expiry of the term of office of the director of the municipal administration, deputy director of the municipal administration shall, if they are not appointed to these positions for a new term of office or if the director of the municipal administration, deputy director of the municipal administration resigns or is dismissed from office, with the exception of dismissal for misconducts in office, the said persons shall have the right to return in the manner prescribed by the Government to the position held before the appointment as director of the administration, deputy director of the administration, and in the absence of such possibility – to a position of the same or lower category, if the position held is assigned in accordance with legal acts to the positions of civil servants (with the exception of positions of civil servants of political (personal) confidence). Moreover, in the case laid down in this paragraph the director of the municipal administration, deputy director of the municipal administration shall have the right to return to the position they had before they have been elected as municipal councillors, provided that they held this position in a municipal or state budgetary or public establishment, or an undertaking controlled by the municipality, and if there is no such possibility – to return to another position in a municipal or state budgetary or public establishment or an undertaking controlled by the municipality. If these persons did not hold such positions prior to being appointed as the director of the municipal administration, deputy director of the municipal administration, or they have refused other proposed positions of a lower category which are under legal acts attributed to the positions of civil servants (with the exception of the positions of civil servants of political (personal) confidence), or other positions in a municipal or state budgetary or public establishment, or an undertaking controlled by the municipality, they shall be respectively paid a severance payment in the amount of the two-month salary of the director of the municipal administration, deputy director of the municipal administration. These payments shall be paid within 2 months in equal parts every month. If a person begins holding a position in civil service prior to the expiry of a two-month period, an unpaid part of compensation shall not be paid.

7. The director of the municipal administration shall have the right, to the extent it is not limited by the decision of the municipal council, to instruct a deputy director of the municipal administration (deputy directors of the municipal administration) to carry out the powers set out for him by laws and transferred to him by the municipal council, with the exception of the powers set out in subparagraphs 4 and 5 of paragraph 8 of this Article. A deputy director of the municipal administration shall account to the director of the municipal administration, and, if necessary, to the municipal council.

8. The director of the municipal administration:

1) shall be directly and personally responsible for the implementation within the territory of the municipality of the laws, decisions of the Government and the municipal council regarding the issues assigned to his competence;

2) when directly implementing the laws, decisions of the Government and the municipal council, may address administrating entities of the State, issue ordinances mandatory for structural units of the municipal administration, branches of the municipal administration – wards and for civil servants who do not work for the structural units, as well as, on the issues assigned to his competence, for residents of the municipality and other entities existing within the municipal territory;

3) shall organise the work of the municipal administration, approve rules of conduct of structural units of the municipal administration and branches of the municipal administration – wards, shall be responsible for internal administration of the municipal administration;

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

5) in the manner prescribed by the municipal council shall administrate appropriations from the municipal budget and other monetary resources, organise the execution of the municipal budget and be responsible for economic and financial activities of the municipality, administrate the municipal property;

6) shall, in accordance with the procedure laid down by laws, appoint and dismiss civil servants of the municipal administration and other employees of the municipal administration, shall fulfil other functions of personnel management, assigned to him by the Law on Civil Service and by the municipal council;

7) shall coordinate and control the work of entities providing public services, fulfil other functions of the management of municipal legal persons, assigned to him under laws and by the decisions of the municipal council;

8) shall organise training of municipal councillors, civil servants and employees working under the employment contract;

9) shall, in the manner prescribed by the rules of conduct, account for his own activities as well as for activities of the municipal administration, by presenting a report on the activities to the municipal council and the mayor;

10) shall, in the manner and within the time limits prescribed by the rules of conduct, but at least once a year, inform the residents of the municipality about his activities;

11) shall submit to the mayor proposals on the maximum allowed number of positions of civil servants and employees working under the employment contract in the municipal administration;

12) shall, on the instructions o the municipal council, approve detailed plans as well as special plans assigned to the competence of the director of the municipal administration.

9. When temporary direct rule is introduced on the territory of a municipality, the director of the municipal administration and his deputy(deputies) shall be subordinate and accountable to the representative of the Government.

Article 30. The municipal administration

1. Municipal administration shall be a municipal establishment, which consists of organizational units, civil servants who do not belong to organizational units and branches of the municipal administration. - wardens (organizational territorial units of the municipal administration). The structure of the municipal administration, its regulations of activities and wage fund, the biggest allowed number of positions of civil servants and employees working under the employment contract and receiving payment from the municipal budget shall, on the proposal of the director of the municipal administration and the recommendation of the mayor, be approved and changed by the municipal council, and the staff positions shall be approved by the director of the municipal administration. The powers of the municipal administration shall not be related to the expiration of the powers of the municipal council. The municipal administration shall have its own seal with the coat of arms and bank accounts.

2. The municipal administration shall:

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

2) implement laws and resolutions of the Government, which do not require decisions of the municipal council;

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

4) administer provision of public services;

5) through the authorised civil servants, represent the municipality in the management bodies of municipal undertakings and stock companies;

6) draw up drafts of decisions and ordinances of municipal institutions;

7) provide financial, economic and material services to the secretariat, the mayor, councillors and the municipal controller.

3. Conditions and procedure of the service of civil servants of the municipal administration shall be laid down in the Law on Civil Service. Civil servants of the municipal administration shall account to the director of the municipal administration.

4. Civil servants of the municipal administration and employees working under the employment contract may not be councillors of the municipality in which they work.

Article 31. The ward and the warden

1. A ward shall be a branch of the municipal administration which functions in a specific part of the municipal territory. The number of wards, the name of each ward, the boundaries of the territory serviced by a ward and the functions of a legal person (municipal administration) transferred to a ward shall be defined by the municipal council by its own decision. If the municipal council does not establish wards, the functions of the ward and the warden, set out by the law, shall be fulfilled by organizational units of the municipal administration.

2. When necessary, the municipal council shall set up public establishments and municipal undertakings within the territory of a ward. The warden may be appointed as a member of the management bodies of these establishments and undertakings.

3. The ward shall have a bank account. The warden shall have the seals with the Vytis and with the coat of arms of the locality in which the headquarters of the warden is situated, o with the coat of arms of the municipality.

4. The warden shall be the head of the ward, the manager of appropriations allotted for the ward. He shall be a career civil servant. The warden shall be appointed to the office and dismissed from it by the director of the municipal administration in compliance with this Law and the Law on Civil Service. An individual shall be accepted to the position of the warden only by competition. The commission for the competition of candidates to the office of the warden shall be composed of seven members; not less than three members and not more than four members of this commission must be representatives of the local communities of the territory serviced by this ward – elders.

5. An association of the wardens of the municipalities of Lithuania may be set up to represent the interests of the wardens in state institutions and the Association of Local Authorities in Lithuania.

Article 32. Functions of the ward and the ward

1. Activities of the ward shall be regulated by the regulations of activities of the ward, approved by the director of the municipal administration. Activities of the ward shall be financed from the municipal budget. Each year, when approving the municipal budget the municipal council shall approve work programmes of the wards and appropriate the funds necessary for the implementation of these programmes. The municipal council shall lay down the procedure for developing work programmes of the wards and the criteria for allocation of appropriations. Funds necessary for implementation of the functions of the ward and the warden may be allotted from other appropriations of the municipal budget as well.

2. The ward shall:

1) without exceeding its powers, organise and control in the municipal territory the implementation of decisions of municipal institutions or implement them itself;

2) when necessary, evaluate living conditions and needs of particular families (persons) and submit to the municipal administration proposals concerning the necessity of provision of social support to such families (persons), as well as the manner of such provision;

3) within the remit of its competence, organize the protection of the rights of a child and the work with problem families which raise children or whose parental rights to children are restricted;

4) keep residential property data books in rural localities according to the procedure laid down by the Minister of the Interior;

5) gather and furnish to the director of the municipal administration the data necessary for the records of school-age children;

6) repealed;

7) in rural localities, register information provided by owners, possessors and users of land, water bodies, forest plots about the damage done by hunted animals and wild animals of the strictly protected species, and submit data to the director of the municipal administration;

9) participate in preparation and implementation of programmes on rural development;

10) participate in organising civil protection;

11) participate in preparation and implementation of programmes on the employment of the population within the territory of a ward;

12) in the prescribed manner participate in holding public opinion polls, taking censuses of residents and dwellings, as well as other public censuses;

13) help to organize presidential elections, elections to the Seimas, elections to the European Parliament, elections to municipal councils, and referendums;

14) participate in creating and implementing programmes on mass media development;

15) participate in organizing or organize recreation of residents;

16) organize public works and socially useful activities;

17) organize and (or) control cleaning and maintenance of municipal roads, territories of common use, cemeteries, greenery, pavements, illumination of streets and other public places, provision of services of public toilets;

18) organise the provision of social support and payment of benefits in a prescribed manner;

19) organize and fulfil the transferred by the State functions in the sphere of agriculture;

20) keep the assigned registers and present data in the prescribed manner;

21) keep records of data on the declaration of a place of residence and persons who do not have a place of residence;

22) on the decision of the municipal council and only in the absence of a provider of public services, may provide public services the administration of which is assigned to another unit of the municipal administration.

3. The warden shall:

1) carry out internal management of the ward;

2) administer allotments appropriated for the ward;

3) draw up an activity programme of the ward, submit it to the meeting of elders of the ward for consideration. He shall introduce the programmes approved by the municipal council to the elders and discuss the use of allotted appropriations;

4) in accordance with the procedure laid down by the regulations of activities of a ward, conclude contracts and supervise their implementation;

5) issue to the residents of the territory assigned to the ward, documents referred to in the Law on Declaration of a Place of Residence and documents confirming family composition as well as other documents confirming an actual situation, with the exception of the cases when this must be confirmed by other documents according to legal acts;

6) register the facts of death in the ward that does not have civil registration establishments within the territory serviced by the ward;

7) issue permissions to bury, if he carries out supervision of cemeteries within the territory serviced by the ward;

8) in accordance with the procedure laid down by the Law on the Notary’s Office, carry out free of charge notarial acts for residents of the territory assigned to a ward, as well as in accordance with the procedure laid down by the Civil Code verify free of charge the wills of residents of the territory assigned to a ward, which are equated to official wills. The warden shall carry out notarial acts on the premises of a ward. The warden may carry out notarial acts outside the premises of a ward only when an interested person cannot arrive to the premises of a ward because of a valid reason and invites the warden to his place of residence;

9) within the limits of his competence, write down reports of administrative violations of the law, examine cases of administrative violations of the law;

10) control whether when rendering public services the requirements for rendering of such services set out in legal acts and agreements are being met, consider residents’ applications and complaints regarding rendering of public services and take decisions on these issues within the limits of his competence. He shall present proposals to the municipal administration and other entities administrating rendering of public services with regard to improvement of rendering of public services;

11) in a prescribed manner, supervise trading in public places;

12) submit to the director of the municipal administration proposals on the improvement of activities of civil servants of structural subdivisions of other the municipal administration and heads of municipal establishments in the territory assigned to the ward, maintenance of roads belonging to a municipality, settlement streets, pavements and squares, organisation of local-routs transport, repair of buildings and construction works belonging to a municipality, maintenance of monuments, cemeteries, organisation of the provision of public services to the population;

13) when necessary, prepare drafts of orders of the director of the municipal administration, prepare drafts of decisions of the municipal council and ordinances of the mayor on the issues related to activities of the ward, organize and control the implementation of the adopted decisions;

14) convene assemblies of the population of the territory assigned to the ward and organise meetings of the population with officials of municipal institutions and state institutions;

15) participate in sittings of municipal institutions when issues related to life of the population residing within the territory assigned to the ward are being considered, or authorize any other civil servant of the ward to participate in such sittings;

16) summarise remarks and proposals of representatives of local communities, and submit them to the director of the municipal administration. He shall consult residents of the territory assigned to the ward and furnish to them information about the activities of municipal institutions, the municipal administration and state institutions within the municipal territory;

17) at least once a year, submit a report on the activities of the ward to the meeting of elders and the director of the municipal administration.

4. Wards and wardens may be authorised in regulations of activities of wards to perform 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 33. The status of a representative of the local community – the elder

1. Elderships shall be formed from the localities of the territory serviced by the ward or from the parts of such localities. The project of formation of elderships shall be prepared by the warden and submitted to the director of the municipal administration. The said project shall be approved by the municipal council on the recommendation of the director of the municipal administration.

2. Residents of elderships shall, in accordance with the procedure laid down by this Law, elect representatives of the locality – elders. Candidates to elders may be nominated by residents, non-governmental organizations, associations, collectives of establishments and organizations that operate in the eldership.

3. In elderships with not more than 500 residents elders shall be usually elected at the meeting of residents, which is organized by the warden. An elder shall be elected by open ballot. A candidate who has got the most votes of the residents voting in the meeting shall be deemed to be elected as an elder.

4. In elderships with more than 500 residents elders shall be usually elected by polling the residents. Elections and polls shall be organized and decisions shall be taken by the commission set up by the director of the municipal administration. A candidate who has received the most votes during the polls shall be deemed to be elected as an elder.

5. An elder shall be elected for a term of two years. An elder shall work on a voluntary basis. The date of election of an elder shall be announced by the warden in accordance with the schedule drawn up by the director of the municipal administration. The date of election of an elder shall be announced not later than 15 days prior to election.

6. If an elder declines his powers or he is not able to carry out his duties due to the illness, death or other reasons, new election of an elder shall be organised. The date of election shall be announced by the warden with the consent of the director of the municipal administration.

Article 34. The rights and duties of the elder

The elder shall:

1) represent the interests of the residents of the eldership in the ward, municipal institutions and the state establishments functioning within the territory of the municipality;

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

3) when necessary participate in organization of public polls and meetings of the population with councillors, the warden, the director of the municipal administration or a representative authorised by him, other representatives of municipal and state institutions;

4) be entitled to access information about functions and working hours of municipal institutions, the municipal administration and its organizational units, other public administration entities of the municipality, the representative of the Government. The warden shall furnish this information to the elder;

5) be entitled to obtain drafts of legal acts drawn up by municipal institutions as well as legal acts adopted by them, which are related to the residents of the eldership, to attend sittings of the committees of the municipal council and the municipal council when the issues concerning the residents of the eldership are being discussed, and to voice the opinion of the residents of the eldership about the needs and interests on these issues, to offer variants of solution of the problems;

6) furnish information to the residents of the eldership about the functions, working hours and working procedure of municipal institutions, the municipal administration and its units, other public administration entities of the municipality, and the representative of the Government;

Article 35. The meeting of the elders

1. At the meeting of the elders the elders shall consider and take decisions on the issues that are of interest for the communities of the localities within the territory serviced by the ward. The municipal council shall approve the regulations of the meeting of the elders. The municipality shall provide for free the facilities for organising the meeting of the elders. The elders shall gather to the meeting on their own initiative or at the mayor’s invitation. The meeting of the elders shall be considered legal if more than half of the elders participate in it. The meeting shall be presided over by the chairman of the meeting who is elected by the elders participating in the meeting. In the meeting of the elders decisions shall be taken by open ballot by the simple majority of votes of the elders participating in the meeting. In the event of a tie, the Chairman of the meeting shall have a casting vote. Decisions of the meeting of the elders shall be written out in the minutes of the meeting. When the elders gather to the meeting on their own, the warden shall be also invited.

2. In the meeting the elders shall discuss and take decisions concerning the activity programmes of the ward, evaluation of the annual activity report of the warden, and shall consider other issues important for them. Decisions of the meeting of the elders shall be recommendatory.

3. In the meeting the elders shall decide on the feasibility of the implementation of the projects (rural development programmes, etc.) submitted by public organisations functioning within the territory serviced by the ward.

CHAPTER NINE

LOCAL POPULATION POLL

Article 36. General principles of local population poll

1. Residents may express their opinion about the issues of management of public municipal affairs by taking part in a local population poll (hereinafter referred to as a “poll”).

2. Poll results shall be of an advisory character.

3. Participation in a poll shall be free (voluntary) and based on the universal, equal right to voice opinion directly.

4. Municipal residents who have the right to elect a council of an appropriate municipality may take part in a poll.

5. During a sample survey residents who are interviewed must be selected in such a way that each resident who might be surveyed, would have the same opportunities to become a respondent. When evaluating results of sample surveys, data of their reliance must be indicated.

6. A poll shall be direct. Residents shall personally participate in a poll; it shall be prohibited to control their will.

7. It shall be prohibited to restrict the resident’s right to participate in a poll on the account of his sex, race, nationality, language, origin, social position, religious belief, convictions or views.

Article 37. Issues submitted to the poll

1. Issues that are solved by a municipality in the course of discharging independent and contractual functions, may be submitted for a poll.

2. Polls concerning establishment of municipalities, liquidation of the existing municipalities, as well as setting and changing of their territorial boundaries and centres shall be conducted in compliance with the Law on Administrative Territorial Units and their Boundaries.

Article 38. Types of polls shall be as follows:

1. Types of polls shall be as follows:

1) direct entering of individual’s opinion in questionnaire forms of respondents;

2) expression of individual’s opinion in meetings by means of voting;

3) sample survey at homes of respondents;

4) sample survey of respondents by phone.

2. A poll initiator shall propose a poll type, and a decision on a poll type shall be made by the municipal council by taking into consideration local conditions and circumstances.

3. The municipal council shall approve the procedure of a poll conducted in the prescribed manner as well as the powers of a poll commission.

Article 39. Territory covered by a poll

A poll may be conducted on the whole territory of a municipality, the territory serviced by a ward (several wards) or the territory of a locality (several localities). Poll territory may not be smaller than the territory of a settlement.

Article 40. The right of initiative to proclaim a poll

1. The right of initiative to announce a poll shall be enjoyed by the municipal population and the municipal council.

2. The residents shall implement the right of initiative to announce a poll at the request of at least 10 per cent of the population who reside within the territory of a poll and who are entitled to elect a municipal council of an appropriate municipality.

3. The municipal council shall implement the right of initiative to announce a poll at the request of a group of at least one-fourth of the councillors in accordance with the procedure laid down in the rules of conduct.

Article 41. Implementation of the right of initiative to proclaim a poll

1. The residents shall implement the right of initiative to announce a poll directly. For this purpose an initiative group shall be set up from at least 10 residents who are entitled to elect a municipal council. A representative of a group shall personally submit to the mayor an application to register an initiative group.

2. An application of an initiative group must indicate: a preliminary or final text of a question(s) submitted to a poll, a proposed type of a poll, and a coordinator(s) of an initiative group. Moreover, the application of the initiative group may propose the territory covered by a poll. All members of an initiative group shall sign an application.

3. If an application of an initiative group indicates that the text of a question(s) submitted for a poll is preliminary, at the request of representatives of a group the municipal administration shall provide necessary assistance in preparation of the final text of a question(s) submitted for a poll. All members of an initiative group shall sign the final text of a question(s) and it shall be submitted to the mayor.

4. The mayor shall instruct the director of the municipal administration to solve an issue of the registration of an initiative group. After having received an application of an initiative group, the director of the municipal administration shall, not later than within 5 working days, register an initiative group and shall, not later than within 5 working days after its registration, issue lists for collecting residents’ signatures with regard to a request to announce a poll. Lists shall have a form approved by the Minister of the Interior.

5. A time limit of one month shall be set for the implementation of the right of initiative of residents to announce a poll. It shall be calculated from the day of issuing of lists for collecting residents’ signatures concerning a request to announce a poll.

6. If within a time limit set in paragraph 5 of this Article a necessary number of signatures of residents is not collected, the director of the municipal administration shall terminate further collecting of signatures.

7. An initiative group shall gather requests of residents concerning the announcement of a poll. After having collected within a time limit set in paragraph 5 of this Article a necessary number of signatures of residents with regard to a request to announce a poll, an initiative group shall write out a final act pertaining to the collecting of signatures of and refer it together with requests of the residents to the director of the municipal administration.

Article 42. Taking of a decision to proclaim a poll

1. If a necessary number of signatures of residents with regard to a request to announce a poll has been collected within a time limit set in paragraph 5 of Article 41 of this Law and no violations of collecting of signatures (the cases of forging signatures or violations of the principle of voluntariness) have been established, the municipal council must take a decision to announce a poll.

2. The municipal council shall, not later than within a month from the day of submitting of a final act pertaining to the collecting of signatures and requests of the residents to the director of the municipal administration, take a decision to announce a poll.

3. A decision to announce a poll must indicate: the text of a question(s) submitted to a poll, the territory covered by a poll, a type of a poll, the date and place of a poll, the composition of a poll commission. An initiative group shall have the right to delegate its representative to the poll commission.

4. A decision of the municipal council to announce a poll must be made public through the local (regional) mass media.

Article 43. Publicity of a poll

1. The beginning of publicity of a poll shall be the day of the registration of an initiative group of residents with the municipal administration.

2. Publicity of a poll may be of various forms and in various ways, with the exception of those, which violate the Constitution, laws and other legal acts.

3. The members of the poll commission may not participate in publicity of a poll.

Article 44. Organization of a poll

The mayor shall organise a poll in accordance with the procedure laid down by the municipal council.

Article 45. Establishment and proclamation of poll results

1. A poll shall be deemed to have been held if not less than 25 per cent of the residents of the territory covered by the poll and having the right to participate in the poll expressed their opinion on a submitted question(s). This requirement shall not apply to a sample survey.

2. The poll commission shall, not later than within 5 working days after the end of the poll, submit the poll results to the mayor. The poll results shall be made public through the local (regional) mass media.

Article 46. Solution of the issues submitted for a poll

Poll results must be considered at a sitting of the municipal council in accordance with the procedure laid down by the rules of conduct and may be taken into consideration when taking a decision on a question(s) submitted for a poll.

Article 47. Expenses related to organization of a poll

Expenses related to the organisation of a poll shall be covered with the funds of the municipal budget.

CHAPTER TEN

PROPERTY AND FINANCES

Article 48. Municipal ownership

1. Composition of the municipal property and the ways of acquisition thereof, procedure for managing, using and disposing of such property shall be established by the Constitution, laws, 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 managed, used and disposed of by trust by municipal institutions, establishments, organisations and undertakings in accordance with the procedure established by the Laws on Budgetary Institutions, State and Municipal Undertakings, the 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, in the manner prescribed by laws and other legal acts, manage, use and dispose of the state property transferred to them by trust.

Article 49. 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 50. Financial resources of municipalities and the use thereof

1. 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 accordance with the procedure laid down by the law;

4) local fees and charges fixed by the law;

5) income of municipal budgetary establishments for services provided;

6) revenue from the balances of municipal funds on current accounts;

7) income received for leased-out state land and water bodies of the state inland waters stock, and after the distribution in the manner prescribed by the Government of the 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) non-repayable financial support (monetary funds);

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 establishments and organise the provision of public services.

4. Municipalities or, in their name, the Association of Local Authorities in Lithuania shall co-ordinate drafts of legal acts in compliance with which the change in municipal functions, income and/or expenditures is provided for, along with the financial calculation appended to it.

5. In the event that the revenue or expenditure of the municipal budget changes due to legal acts adopted by state institutions, the sums of said changes, except the sums by which municipal budgets decrease because of the tax on lease of state land within the territory of a free economic zone used to buy out the land from land owners on this territory, shall be compensated for from the State budget or municipal budgets appropriately. 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 court shall adopt a final decision.

6. Supplementary and surplus budget revenue received during the implementation of the budget as well as saved funds (expenditure) shall be left to municipalities, with the exception of other cases laid down in laws.

7. Funds intended for exercising state functions (delegated by the state to municipalities) shall be appropriated from the state budget or state monetary funds and transferred to municipalities as a special targeted grant.

Article 51. Drawing-up and control of the municipal budget

1. Each municipality shall have an autonomous 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 in the Law on the Structure of the Budget and the 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, as well as 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 rules of conduct.

5. Upon the end of a budget year, independent financial and/or performance audit may be conducted by a decision of the municipal council. If independent audit is carried out, an audit report must be publicly considered at a sitting of the municipal council not later than until the first of September of an appropriate budget year.

6. When necessary, the National Audit Office may, by decision of the Auditor General, carry out financial (legality) and performance audit of municipalities, as well as municipal establishments and undertakings controlled by municipalities.

CHAPTER ELEVEN

RELATIONS OF MUNICIPALITIES WITH

STATE INSTITUTIONS AND REPRESENTATION

Article 52. Relations of municipalities with state institutions and establishments

1. Relations between municipal councils and State institutions and establishments shall be based on the Constitution and laws.

2. Municipalities shall not be subordinate to State institutions.

3. Municipalities shall furnish to the Seimas, the Seimas committees and commissions the information necessary for parliamentary activities.

4. Central and territorial state administration entities, when considering issues related to the interests of a particular municipality or all municipalities, inform the mayor of an 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.

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

6. The State shall support training of municipal councillors, civil servants and employees working under the employment contract.

7. If necessary, when planning and resolving all the issues directly related to them municipalities may consult with state institutions.

8. Prepared or 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.

9. Each year the Government and the Association of Local Authorities in Lithuania shall consider the indicators specified in the Law on the Methodology of Determination of Municipal Budgetary Revenues and primary statistical data on demographic, social and other indicators of municipalities in accordance with the Government-approved rules for coordinating such indicators.

10. 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 53. Representation of municipalities

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

CHAPTER TWELVE

LEGAL GUARANTEES AND ADMINISTRATIVE SUPERVISION OF MUNICIPALITIES

Article 54. Rights of municipalities and the protection thereof

1. Municipalities may appeal to the court for the violation of their rights, taking into consideration the character of violation. Municipal institutions 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, which do not exceed the competence of the council, shall be mandatory to the municipal administration, all establishments, undertakings 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 municipal council for the violation of which laws provide for administrative liability, shall be effective within the whole territory of the municipality and all institutions, establishments, undertakings 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 drafting of laws and other legal acts regulating local self-government or establishing functions of municipalities, and to express their proposals and remarks in regard to the prepared drafts.

Article 55. Supervision of activities of municipalities

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

2. Complaints of residents concerning the abuse of power or bureaucracy of municipal employees shall be examined by the Seimas Ombudsmen; their powers shall be laid down in the Law on the Seimas Ombudsmen.

3. Acts or actions of municipal institutions and civil servants which violate the rights of residents, institutions, establishments and organisations may be appealed against in the manner prescribed by the Law on Administrative Proceedings.

4. The functions of municipalities and the restrictions of their rights in the event of the state of war and/or the state of emergency shall be established in special laws.

CHAPTER THIRTEEN

SYMBOLS AND BUSINESS CONDUCT OF MUNICIPALITIES

Article 56. 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 of the Republic of Lithuania on the State Emblem, other Coats of Arms and Armorial Insignia.

3. Repealed.

Article 57. Filing work of municipalities

Filing work of municipalities, documents of accounting, sets of financial reports and sets of consolidated financial reports of municipalities, as well as financial and technical documents of municipalities shall be managed in the Lithuanian language and must correspond to the requirements for filing work defined in the effective legal acts.

Annex to Republic of Lithuania

Law on Local Self-government

IMPLEMENTED LEGAL ACTS OF THE EUROPEAN UNION

1. Council Directive 94/80/EC of 19 December 1994 laying down detailed arrangements for the exercise of the right to vote and to stand as a candidate in municipal elections by citizens of the Union residing in a Member State of which they are not nationals (OJ 2004 special edition, Chapter 20, Volume 1, p. 12) with the latest amendments adopted by Council Directive 2006/106/EC of 20 November 2006 (OJ 2006 L363, p. 409).

2. Commission Directive 2006/111/EC of 16 November 2006 on the transparency of financial relations between Member States and public undertakings as well as on financial transparency within certain undertakings (OJ 2006, L 318, p. 17).