official translation

REPUBLIC OF LITHUANIA

LAW

ON LOCAL SELF-GOVERNMENT

7 July 1994, No.I-533

Vilnius

(As amended by 24 November 1998, VIII-937)

Chapter I. GENERAL PROVISIONS

Article 1. The Concept of Local Self-Government and the Purpose of the Law

Local self-government (hereinafter referred to as "self-government") denotes the right and actual power of the institutions of a local government which is elected by the residents of an administrative unit of the territory of the Republic of Lithuania, to freely and independently on their own responsibility regulate and manage public affairs and meet the needs of local residents according to the Constitution and laws of the Republic of Lithuania.

The municipality shall be an administrative unit of the territory of the State, the community of residents whereof has the right to self-government guaranteed by the State.

The community of the municipality population shall be the residents of the actual municipality, who are connected with the legal relations of self-government.

The legal relations of self-government shall be regulated by the Constitution, this and other laws of the Republic of Lithuania, and statutes of the councils.

This Law shall establish the general procedure for the organisation and activities of the self-government institutions.

If other functions of state governing or administration are delegated to the local authority, or this is necessary for the implementation of its exclusive status, the laws may also establish a different procedure for the organisation and activities of the institutions of the respective local authority.

Article 2. The Principles of Self-Government

Self-government shall be implemented on the basis of the following principles:

1) the co-ordination of the interests of the municipality and the State;

2) the direct participation of the citizens of the Republic of Lithuania residing in the respective municipality in the election to the municipal council, polls, meetings of the residents and petitions;

3) the accountability of self-government institutions and their officers to the residents;

4) publicity and response to public opinion;

5) lawfulness and social justice;

6) economic independence; and

7) respect for human rights and freedoms. (Supplemented 25 February 1997)

Article 3. Territorial Basis of Self-Government

The right to self-government shall be guaranteed to the administrative units of the State territory which are provided by the Law.

Chapter II. SELF-GOVERNMENT INSTITUTIONS,

PROCEDURE FOR THEIR ORGANISATION AND ACTIVITIES

Article 4. Self-Government Institutions

Self-government institutions shall comprise the following institutions:

1) the elective representative institution - the municipal council (hereinafter referred to as "council");

2) executive institutions - the local authority mayor or the local authority mayor and the municipal executive board (formed by the decision of the council); and

3) the control institution - the local authority controller.

The structure of the executive institutions, specified in the second item of this Article, as chosen at the beginning of the term of office, shall not be changed until the end of the term of office of the council.

Within two months from the day of convocation of the first meeting of the newly-elected council the local authority mayor and deputy mayor must be elected, self-government institutions formed, the structure of the administration as well as the council statute approved.

The powers of the local authority institutions expire when a newly elected council assembles at the first meeting. The mayor, board and controller shall resign at the first council meeting, and the council shall charge them to continue performing its functions until new officers are elected or appointed in the established procedure.

If the results of the elections to municipal councils are declared invalid, the powers of local authority institutions shall continue until the first sitting of the council elected at repeat elections or until the introduction of direct rule in the municipality. (Supplemented 3 June 1997)

Article 5. The Council

Councillors shall be elected for a term of three years by the municipality residents - citizens of the Republic of Lithuania, on the basis of universal, equal and direct suffrage, by secret ballot according to the procedure established by the Law of the Republic of Lithuania on Elections to Municipal Councils. (Amended 25 February 1997)

The municipal council shall implement the right to self-government and shall posses the rights of a legal person.

The council shall form committees, commissions and other organs provided by laws of the Republic of Lithuania.

The council statute shall establish the structure and procedure for activities of the council.

The powers of the council shall be terminated before the expiration of the term of office when direct rule is temporarily introduced into the territory of the local authority.

Article 6. Forms of the Activities of the Council

The procedure for the work of the council shall be established by this Law and the statute adopted by the council.

A sitting shall be the main form of activities of the council.

The council shall exercise its powers by considering and resolving issues at the sittings of the council, committees and commissions, meetings of factions and groups. The council shall adopt decisions on the issues under consideration and organise their implementation and control.

The council must at least once a year provide information to the residents concerning the activities of the council and the institutions formed by it, shall correct the indicated shortcomings of its work, and implement constructive proposals.

The payment not received at the principal place of employment for the time spent at sittings of the council, committees, commissions, and the board shall be paid and expenses incurred during work in the council shall be compensated to the councillors in the manner prescribed by the council. (Supplemented 25 February 1997)

Article 7. Council Sittings

A council sitting shall be considered lawful if the majority of the established whole number of councillors is present.

The first sitting of a newly elected council shall be convened by the chairman of the appropriate electoral committee within two weeks after the announcement of the election results. Said sitting shall be opened by the chairperson of the electoral committee who shall preside over the sitting until the mayor is elected. If the chairman of the committee does not convene a sitting, councillors shall gather on their own on the next day after the expiration of a two-week term. (Amended 4 April 1995)

Subsequent council sittings shall be convened by the mayor and in case of his absence - the deputy mayor on the initiative thereof or on the proposal of the committee, board, as well as on the written demand of at least one-third of the established number of councillors, indicating the issues under consideration. The mayor, deputy mayor must convene the sitting and present the proposed issues for consideration within two weeks of receipt of the demand of the councillors.

If the sitting is not convened in due time, it may be convened by at least one-third of all the councillors, having informed other councillors and the local residents about this in writing. If mayor or his deputy does not participate in the sitting, the sitting shall be presided over and all documents adopted at the sitting shall be signed by one of the councillors.

The mayor, his deputy or one-third of councillors shall inform all the councillors and the local residents of the convocation of a sitting as well as of the issues prepared for consideration at least three days prior to the commencement of the sitting.

Issues to be considered by the council shall be submitted by committees, commissions, councillors, mayor, and the board. The mayor shall draw up the agenda of the council sitting. It may be supplemented or amended by the decision of the council upon proposal of the committee or commission, faction, group, controller or a representative of the Government.

Decisions of the council shall be adopted by a majority vote of all the councillors participating in the sitting. In the event of a tie, the mayor’s vote shall be casting. A councillor shall not have the right to vote if the property or financial issues related to his person are being considered. Decisions of the council shall become effective after their adoption, unless a further date of their coming into force is set forth therein. The decisions of the council in which rules of law are established, amended or declared invalid shall become effective on the next day following the announcement thereof in the press, unless a further date of their coming into force is set forth therein. (Amended and supplemented 25 February 1997)

Minutes shall be taken at council sittings. The mayor shall sign the minutes and the council decisions. Decisions concerning the election of the mayor shall be signed by the chairman of the electoral committee or the sitting.

Council sittings shall be convened at least once a quarter.

Council sittings shall be open to the public. The local authority controller, local authority administrator, county governor, representative of the Government, and members of the Seimas of the Republic of Lithuania shall have the right to participate and, with the consent of the council, take the floor at the sittings. The procedure for participation of representatives of State institutions, enterprises, offices, and organisations as well as residents at council sittings shall be established by the council statute. (Amended and supplemented 25 February 1997, 14 May 1998)

Only those issues shall be considered at council sittings the draft decisions whereof are submitted in the procedure established by the council statute.

Article 8. Council Committees

Council committees shall be the council organs which are formed for the preliminary consideration, preparation, and submission of issues to the council, mayor and the board, as well as for controlling the observance of laws and implementation of the decisions of the council, mayor and the board.

Committees may consider issues which are within their competence and adopt recommendatory decisions, which must be considered by self-government institutions, subdivisions of administrations, municipal enterprises and organisations which have received the recommendations or proposals.

Committees shall also submit proposals and findings concerning decisions submitted to the council for consideration as well as other draft documents.

Committees shall be formed from the councillors. The number of committees as well as members, competence and working procedure whereof shall be established by the council statute. Committee chairmen shall be elected on the recommendation of the mayor.

Minutes shall be taken at committee sittings. Committee chairmen shall sign the findings and decisions.

Experts and public representatives may participate with deliberate vote in the work of committees and commissions according to the procedure established in the council statute. (Supplemented 25 February 1997)

Article 9. The Mayor, Deputy Mayor

For the term of office, the council shall, from among the councillors, elect a mayor and, on the recommendation of the mayor, a deputy mayor. If there are more than 300 000 inhabitants in a municipality, the council shall elect the first deputy mayor and the deputy mayor. The mayor and deputy mayors shall be elected by secret voting. The mayor and deputy mayors shall be considered elected provided that the majority of the established whole number of the councillors voted for their candidatures. (Amended 25 February 1997)

The mayor, deputy mayor shall be responsible for and accountable to the council for exercising the powers of the autonomous competence.

The mayor, deputy mayor shall be directly responsible for exercising the powers delegated by the State. If the mayor, deputy mayor fails to exercise or poorly exercises the powers delegated by the State, the Government shall inform the council about this, and shall warn said officers as well as establish the term for elimination of the short-comings. If the short-comings are not eliminated within the established time, the Government shall appeal to the council with its directive concerning the dismissal of the mayor, deputy mayor. The Government appeal must be considered at a council sitting within two weeks. If the council does not dismiss the mayor, deputy mayor, the Government shall appeal to the Seimas for the introduction of direct rule.

The powers of the mayor, deputy mayor shall also be terminated:

1) when the ruling of the court on the crimes committed by them is being enforced;

2) when they do not resign from another job or office according to paragraph 10 of this Article; and

3) when direct rule is being temporarily introduced into the local authority territory.

By the motivated decision of the council, the mayor, deputy mayor may be dismissed prior to the expiration of the term of office on the initiative of the one-third of councillors, if the majority of the established whole number of councillors votes for this.

The mayor, deputy mayor may be dismissed prior to the expiration of their term of office on other basis and procedure established in the Law on the Employment Contract.

If the decision to dismiss the mayor, deputy mayor is not accepted, this issue may be considered no sooner than after six months, with the exception of cases, when the circumstances set forth in paragraph 4 of this Article turn out.

After the expiration of the term of office, if the mayor, deputy mayor are not re-elected for a new term and it is not possible to provide them with the previously held job (office), they shall be paid a severance pay equal to their three-month average salary.

The council shall establish the salary of the mayor, deputy mayor according to the rates established by the Government.

The mayor, deputy mayor may not hold any other elective or appointive office, work in any other state or private enterprises and receive additionally any other salary, with the exception of payment for creative activities.

The deputy mayor shall exercise the powers delegated to him by the mayor and perform all the duties of the mayor in the absence of such.

The deputy mayor shall preside over the sitting of the council or board, when issues related to the personality of the mayor are being considered.

The powers of the mayor, deputy mayor shall be extended after a new election until the transfer of matters to a newly-elected mayor, deputy mayor or to a person authorised by the Government, when direct rule is being temporarily introduced into the local authority territory.

For the term of office, the mayor may have a secretary and advisors. (Supplemented 25 February 1997)

Article 10. The Board

The council may, for the term of the powers thereof, decide to form a joint executive institution - the board from among the councillors, and to establish the number of its members. Employment contracts shall not be concluded with the members of this institution. (Amended and supplemented 25 February 1997)

In separate cases provided for in laws, it may be obligatory to form a board, and its composition - regulated.

If the board is formed, the mayor and deputy mayor shall be ex officio members of the board. The mayor shall present the candidatures of the board members for the council's approval.

A sitting of the board shall be lawful provided that at least two-thirds of all of the board members participate therein.

The agenda of a board sitting shall be drawn up by the mayor. It may be supplemented or amended by the decision of the board, on the proposal of the board members, local authority controller or the county governor. (Amended 25 February 1997)

Minutes shall be taken at board sittings. The mayor and the secretary of sittings shall sign the minutes of the sittings. (Amended 25 February 1997)

Decisions of the board shall be adopted by majority vote of the members participating in the sitting. Decisions of the board shall become effective after their signing. The decisions of the board in which rules of law are established, amended or declared invalid shall become effective on the next day following the announcement thereof in the press, unless a further date of their coming into force is set forth in said decisions. Board decisions shall be signed by the mayor. The board decisions concerning the issues of the council's autonomous competence must be signed by the mayor. The mayor shall be entitled not to sign the board decisions concerning the functions delegated by the State if said decisions contradict laws. The mayor's actions which, due to his not signing the decision, violate the rights of citizens and organisations may be appealed against in the court. (Supplemented 25 February 1997)

On the initiative of 1/3 of councillors, the council may declare non-confidence in the whole board, should the board be formed, or in an individual board member, if the majority of the established whole number of councillors votes for this. When non-confidence is being declared, the board or its individual member must resign from office. If the decision to declare non-confidence is not approved, this issue may be considered no sooner than after six months.

The powers of the board shall be extended after an election of councillors until the formation of a new board.

Article 11. The Administration

The administration shall implement decisions of the council, mayor and the board, as well as provide technical services for the council, mayor and the board.

The council shall approve the structure and regulations of the administration, and the mayor (the board, should the board be formed) shall draw up a list of the staff as well as fix the salaries thereof, following the laws and standards approved by the Government decrees and not exceeding the established wage fund.

The administration shall be headed by an administrator.

The administrator shall:

1) be accountable to the mayor, implement his ordinances and directives;

2) organise the preparation of sittings of the council and the board, and execution of documents;

3) be responsible for the inner procedure of work of the administration; and

4) within his competence issue orders.

The administrator shall be appointed and dismissed by the mayor. If the board is formed, it shall appoint and dismiss the administrator on the recommendation of the mayor.

With the mayor's consent, the administrator shall appoint and dismiss the heads of the administration divisions as well as their assistants. Other employees of the administration shall be hired and dismissed from work by the administrator.

Employees of the administration may not be the members of the council they are providing services for.

Article 12. Warden

The warden shall be an officer of the local authority in the ward - a part of the territory established by the council within the municipality, which the council designates for him to administer. He shall be appointed and dismissed by the mayor. A councillor may be appointed as warden. (Amended 23 January 1997)

Usually the warden must be a resident - a citizen of the Republic of Lithuania - of the respective ward.

Upon the expiration of the term of office, if the warden is not appointed for a new term and it is not possible to provide him with the job, previously held by him, he shall be paid a severance pay equal to his three-month average salary.

The warden's powers shall be extended after a new election of councillors until the transference of the matters to a newly-appointed warden.

The warden's salary shall be fixed by the mayor (the board, should it be formed) according to the standards approved by the Government.

Article 13. The Local Authority Controller

For the term of office of the council, it shall, on the recommendation of the mayor, appoint a local authority controller. The local authority controller may be a citizen of the Republic of Lithuania who has a higher education. The local authority controller shall be appointed by secret ballot. The local authority controller shall be considered appointed if the majority of the established total number of councillors has voted for his candidature. The same procedure shall be applied for appointing an assistant local authority controller on the recommendation of the local authority controller.

The local authority controller, assistant local authority controller may not perform any elective or appointive duties, work in any other state or private enterprises and receive additionally any other salary, with the exception of payment for creative activities.

If the local authority controller is not able to perform his duties or in his absence, the assistant local authority controller shall perform the said duties.

The local authority controller, assistant local authority controller may be dismissed before the expiration of his term of office on the initiative of 1/3 of councillors upon the motivated council's decision, if the majority of the established whole number of councillors votes for this.

If the decision to dismiss the local authority controller, assistant local authority controller is not approved, this issue may be considered not sooner than after a lapse of six months.

Upon the expiration of the term of office, if the local authority controller, assistant local authority controller are not appointed for a new term and it is not possible to provide him with the job (office) previously held by him, he shall be paid a severance pay equal to his three-month average salaries.

The powers of the local authority controller, assistant local authority controller extend after a new election of councillors until the transference of matters to a newly appointed local authority controller. (Amended 24 November 1998)

Chapter III. COMPETENCE OF SELF-GOVERNMENT INSTITUTIONS

Article 14. General Provisions

The competence of self-government institutions shall be autonomous and delegated by the State.

Self-government institutions, within the limits of the autonomous competence ascribed to them by this Law, shall be entitled to free activities, initiative, and adoption of decisions to the extent permitted under the Constitution, laws and subordinate legislation of the Republic of Lithuania. Moreover, other problems, resolving whereof does not fall within the competence of state institutions, which arise to the population of municipality communities shall be resolved in local authorities.

The state functions shall be delegated to local authorities by this Law or other laws.

Self-government institutions, adopting decisions on the issues within the competence delegated by the State, shall act in compliance with laws, Government decrees and other subordinate legislation.

State institutions shall act and control self-government institutions, which execute the functions delegated by the State, only in cases and forms provided by laws.

Article 15. Autonomous Competence of the Council

The council shall:

1) elect and dismiss the mayor and deputy mayor;

2) form committees, and upon adopting the decision - the board, administrative and other commissions as well, alter their composition, approve candidatures, proposed by the mayor, of the chairmen of committees and commissions;

3) at the proposal of the mayor, solve the issue related to instituting positions of the secretary and advisors. Upon approval of the proposal, it shall fix the secretary’s salary, the number of advisors and their salary fund; (Supplemented 25 February 1997)

4) determine the structure, list of staff and the wage fund of the administration;

5) appoint and dismiss a local authority controller and his assistant, and fix their salaries; (Amended and supplemented 25 February 1997)

6) adopt decisions concerning the division of the respective local authority territory into wards and establish their limits;

7) approve the council statute;

8) approve the regulations for activities of the mayor (the board, should it be formed) and controller;

9) terminate the powers of the councillors prior to the expiration of their term of office in cases and the procedure provided for in the Law on the Status of the Local Authority Councillor;

10) approve the municipal budget and the report on the implementation thereof;

11) approve the procedure for the establishment special-purpose (purpose-oriented, non-budgetary) funds and the regulations thereof; (Amended 25 February 1997)

12) distribute or authorise the mayor (the board, should it be formed) to distribute additional municipal budgetary resources;

13) establish prices and rates for services rendered to residents by municipal enterprises; (Amended 25 February 1997)

14) approve the general sum of allotments and wage funds for institutions and organisations which receive financing from the municipal budget;

15) establish local fees according to the procedure established by laws;

16) adopt decisions to establish, reorganise and liquidate municipal enterprises and organisations which function according to the Company Law;

17) adopt decisions on the establishment, reorganisation and liquidation of institutions, enterprises, and organisations, maintained from the municipal budget funds, as well as on the delegation of performance of separate functions of the founder; (Supplemented 25 February 1997)

18) establish the size of payment or compensations for plots of land which are being bought out, utilisation of the municipality equipment, facilities, and natural resources ;

19) approve general plans of the local authority territory and its parts, as well as those detailed plans, amendments and changes thereof, which fall within its competence, and adopt decisions on drafting of general plans of the local authority territory parts; (Amended 6 November 1997)

20) in accordance with the procedure prescribed by laws, establish and manage local authority protected territories and objects of landscape;

21) establish the procedure for conclusion of local authority contracts and agreements with enterprises, institutions and organisations located on the territory of said and other local authorities, as well as with other local authorities, foreign enterprises and local authorities of foreign states; (Amended and supplemented 25 February 1997)

22) may at the expense of the council grant privileges to enterprises which create new work places or meet other urgent needs of the residents;

23) utilise bank credits, take and lend loans in the manner prescribed by laws, establish conditions for the use of bank credits by local authority executive institutions, as well as for the lending and granting of loans;

24) consider issues raised by the councillors, adopt decisions thereon;

25) hear the reports of the mayor (the board, should it be formed) and other organs, formed by the council, inquiries by councillors to the officers of the administration, heads of municipal enterprises and organisations and adopt decisions thereon;

26) on its own initiative, the proposal or demand of the representative of the Government or other institutions, repeal or withdraw the decisions of the council (the board, should it be formed) and the ordinances of the mayor, as well as the orders of local authority officers, which contradict the laws, the decrees of the Government or the decisions the council; (Amended and supplemented 25 February 1997, 14 May 1998)

27) approve the rules concerning the protection of green plantations, of maintaining order and sanitary conditions in towns and settlements, and trade in market places and other rules for the violation whereof an administrative responsibility is established;

28) adopt decisions to join the local authority unions and international self-government organisations;

29) approve the symbols of a respective municipality, submit proposals to approve the coat of arms of a local authority; and

30) submit proposals concerning the altering of the limits of the local authority territory.

Article 16. Competence Delegated by the State

Self-government institutions shall perform the functions of civil registration, keep the register of municipal, state and private enterprises as well as public organisations; carry out secondary health activities, they may also manage state parks (national and regional), organise the municipal police, civil security and fire safety, and implement other functions delegated by law. (Amended 5 July 1995 and 24 June 1997)

In implementing the functions delegated by the State, self-government institutions shall act in compliance with the laws, execute the Government decrees.

Article 17. Competence and Powers of the Mayor

The mayor shall provide agendas of council sittings, convene council sittings and preside over them, co-ordinate the activities of council committees and commissions, sign council decisions and minutes of the sittings. The mayor shall organise the implementation of council decisions.

If a joint executive institution - the board - is being formed, the mayor shall head it and preside over its sittings, sign decisions on the issues of an independent competence and shall have the right not to sign the board decisions concerning the issues of the competence delegated by the State, if these decisions, in his opinion, contradict the laws or Government decrees.

The work of the mayor shall be regulated by the regulations approved by the Council.

While executing his powers, the mayor shall:

1) represent or authorise other persons to represent the council and the board in court, in relations with other local authorities, state institutions, institutions of foreign states as well as self-government institutions, residents of the municipality;

2) propose candidatures for a deputy mayor, chairmen of committees and commissions, other heads of bodies formed by the council;

3) appoint and dismiss an administrator, secretary, advisors and wardens, approve the work regulations of the secretary, the advisor and the warden; (Amended 25 February 1997)

4) draw up and present to the council for approval contracts and agreements with enterprises, institutions, organisations and foreign enterprises functioning on the territory of the respective local authority and other local authorities, as well as with other local authorities, and if there is the free economic zone on the territory of the municipality - contracts and agreements with the Administration Company of this zone as well; (Amended 28 March 1996)

5) organise the general education and additional training of children and youth and the general training of adults, look after the cultural education of the population and the promotion of general and ethnic culture, organise primary health care and disease prevention for residents, as well as care for the sick, disabled and elderly, ensure that the territory is sanitary and that the requirements for hygiene and environmental protection are being complied with, and develop the industry of recreation and tourism of the residents; and

6) organise the support, care and attendance of the disabled and single elderly persons, arrange charity events, and distribute accumulated funds and donations in accordance with the procedure established by the council.

While executing these and other provided powers, the mayor shall adopt ordinances.

Article 18. Competence of the Board

In the event that the council forms a board, while executing its powers the latter shall:

1) upon the instruction of the council, set prices and tariffs for services provided by municipal enterprises for the population;

2) upon the authorisation by the council appropriate additional municipal budgetary funds and other resources;

3) organise analysis of the development of the respective territory, preparation of drafts of general long-term social, cultural, economic, investment, demographic, ecological and other programmes;

4) organise the implementation of the programmes, approved by the council, on the local authority territory;

5) organise general planning of the local authority territory or its parts, as well as special and detailed planning thereof, which falls within its competence; organise the drafting of amendments and supplements to the territorial planning documents; (Amended 6 November 1997)

6) organise control over the compliance with the requirements stipulated in the territorial planning documents, establish planning conditions and requirements for general, special and detailed planning, approve the composite construction document with conditions and requirements of designing, adjust a drafted construction project; (Amended 6 November 1997)

7) submit to the council for consideration or resolve itself issues concerning the design and building of the facilities of the social and industrial infrastructure, supervise the establishment of the procedure for the exploitation thereof, and, when necessary, discharge the functions of a single client;

8) compose a draft budget and accounts on the budget implementation and submit them to the council for approval;

9) according to the regulations approved by the council, establish special-purpose (purpose-oriented, non-budgetary) funds, control their utilisation; (Supplemented 25 February 1997)

10) lay down the rules for the formation and utilisation of non-budgetary resources of the budgetary institutions financed from municipal budgets, approve records of resources used; (Supplemented 25 February 1997)

11) control the implementation of the rules established by the council for the violation of which administrative liability is provided;

12) organise the construction and exploitation of residential premises, arrange and supervise waiting lists of citizens for state support, rent and sale residential premises belonging to the municipal fund pursuant to laws;

13) examine and analyse migration processes, organise, in conjunction with the territorial labour exchanges, the rational employment of the residents, the improvement of their skills, their retraining, and communal work;

14) in conjunction with other state institutions, prepare and implement preventive measures, rescue the residents in the event of disaster, natural calamity, epidemic, or outbreak of infectious diseases, and liquidate the consequences thereof;

15) prepare recommendations for the council to found, reorganise and liquidate institutions, enterprises and organisations financed from the municipal budget funds;

16) manage, utilise and protect the municipal property; and

17) call meetings of residents in which, at least once a year, provide information concerning local authority affairs, account to the council for its activities once a year as well as upon request. (Amended 7 May 1996)

The competence of the board shall be regulated by the regulations approved by the council.

Should the board be not formed, the powers assigned to the board shall be exercised by the mayor.

Article 19. Competence of the Warden

The warden's work shall be governed by the regulations of his activities.

The warden shall:

1) upon the instruction of the mayor, prepare and present draft ordinances of the mayor (the board, should it be formed) on issues concerning the ward;

2) submit to the mayor recommendations for social protection;

3) present to the mayor proposals concerning the care of the territories and landscape objects protected by the local authority;

4) collect statistics ascribed to his competence;

5) issue to the residents of the respective ward certificates concerning their social status;

6) call meetings of the residents of the ward;

7) organise the maintenance of cemeteries;

8) gather information concerning the need for land lease;

9) organise the collection of fees and local taxes; (Repealed 25 February 1997)

9) keep economic management books;

10) control and furnish to the local government information concerning the implementation of the decisions of the council (the board, should it be formed), and ordinances of the mayor on the territory of the respective ward;

11) in the wards of municipalities of regions, except the wards of the centres of municipalities having the civil registrar’s office and the notary’s office, register births and deaths, issue burial permits, in the manner prescribed by laws execute notarial acts, enter the data concerning a permanent place of residence in a citizen's passport of the Republic of Lithuania; (Amended 25 February 1997) and

12) perform other functions delegated by the mayor's ordinance (decision of the board, should it be formed).

Article 20. Competence of the Local Authority Controller

The local authority controller, not exceeding the powers established by laws of the Republic of Lithuania and decisions of the council, shall supervise the utilisation of the municipal budgetary funds, the legitimacy, expediency and effectiveness of the exploitation of the municipal property, as well as the State property entrusted to the local authority.

The local authority controller shall:

1) direct the service of the local authority controller, hire and dismiss controllers of the said service and other employees (without exceeding the funds allocated for salaries and the employees’ maximum number which is approved by the council);

2) within his competence, issue orders;

3) present to the council conclusions concerning the implementation of the municipal budget, utilisation of non-budgetary assets and funds;

4) on his own initiative or on the proposal of the council, its committees, the mayor (the board, should it be formed), organise inspections and audits in the administration, budgetary institutions and organisations of the local authority, municipal enterprises, as well as on the proposal of the council (the board, the mayor) - in public companies in which the local authority owns at least fifty percent of voting shares;

5) present to the heads of institutions and enterprises under inspection the conclusions and proposals on the results of inspections and audits; and

6) carry out other actions ensuring the elimination of the established violations.

The local authority controller, assistant local authority controller and controllers of the service shall be officers.

The local authority controller shall be a legal person.

The activities of the local authority controller and his service shall be regulated by the regulations which are approved by the council. (Amended and supplemented by 24 November 1998)

Chapter IV. THE BASIS OF ECONOMIC ACTIVITIES

OF LOCAL AUTHORITIES

Article 21. Municipal Property

The basis of the economic activities of the local authority shall be the municipal property.

The municipal property shall be the property which belongs to the local authority by the right of ownership, the functions of owner whereof shall be implemented by the council according to laws.

The facilities of municipal ownership shall be established by laws.

The local authority shall acquire the ownership right by:

1) conveying state-owned facilities to the local authority ownership in accordance with the procedure established by laws. In this case, there may be provisions, established by laws, for the limitation of the disposal of such objects;

2) creating new objects of ownership; and

3) concluding contracts, or in other cases provided for in laws.

The council may delegate the right to manage and exploit concrete objects of local authority ownership to the institutions formed by it or to economic entities.

Article 22. Ownership Relations in Changing the Limits of the Territories of Local Authorities of the Republic of Lithuania

When liquidating a local authority or changing the limits of a territorial administrative unit of the Republic of Lithuania, the real estate of the local authority shall be ascribed to another local authority by that part of the real estate which is on the ascribed territory; other property and debts of the local authority shall be distributed among local authorities in proportion to the amount of taxes of legal and natural persons of the ascribed territory collected to the municipal budget.

Disputes concerning property of administrative units of the territory of the Republic of Lithuania arising from the reorganisation of the limits of administrative units of the respective territory shall be settled by the court.

Article 23. Financial Resources of the Local Authority

Financial resources of the local authority shall be comprised of the municipal budget and non-budgetary resources.

Each local authority shall have an independent budget. The municipal budget shall be drawn up and approved for the period of one year.

During a budget year the council may amend the budget and make up an additional budget in the same procedure as it is made and approved.

The relations between the Lithuanian State budget and the budgets of local authorities shall be regulated by the Laws of the Republic of Lithuania on Budget Structure and on Taxation.

The municipal budget revenues shall be formed from the income received for the exploitation of property which is in the ownership of the local authority, from the taxes paid by enterprises, institutions and organisations which are on the territory of the respective local authority, and from other sources of income ascribed to local authorities by laws of the Republic of Lithuania.

In the event that the income assigned to budgets of local authorities is insufficient for meeting the social needs of local authorities, municipal budgets shall be provided with subsidies from the Lithuanian State budget for the implementation of purpose-oriented programmes.

Supplementary income of municipal budgets which are received during the implementation of the budget as well as funds received from expenditure savings shall be left to local authorities.

In the event that the revenue or expenditure of the municipal budget changes due to acts adopted by the state institutions of Lithuania, the sums of said changes shall be appropriately compensated for from the Lithuanian State budget or from municipal budgets. The sums of compensations shall be co-ordinated by the interested parties. In the event of a dispute, the final decision shall be adopted by the court. Funds from the Lithuanian State budget shall be allocated to exercise functions delegated by the state.

The local authority may make use of bank credits, may borrow and grant loans. (Amended 7 May 1996)

Chapter V. RELATIONS OF LOCAL AUTHORITIES WITH

STATE INSTITUTIONS AND INTERNATIONAL ORGANISATIONS

Article 24. Relations of Local Authorities with State Institutions

Relations between the councils and executive institutions of local authorities and State institutions shall be based on the Constitution and laws of the Republic of Lithuania.

Self-government institutions shall not be subordinate to the State institutions.

In the cases when higher State institutions consider matters related to interests of a local authority, the former must inform the local authority about this. The council submit proposals which must be considered by higher State institutions.

The Government and its institutions shall co-ordinate the decisions on issues concerning the planning of the State territory with local authorities and propose the changes in the limits of local authorities, taking into consideration the proposals of local authorities.

The Government shall support local authorities in training, improving and retraining municipal employees.

Local authorities shall be informed and consulted at the State institutions on all issues concerning local authorities.

Article 25. Representation of Local Authorities of the Republic of Lithuania

The Association of Local Authorities of Lithuania shall represent local authorities of the Republic of Lithuania in the Seimas, in the relations with the President, in the Government and international organisations.

Chapter VI. LEGAL GUARANTEES FOR THE ACTIVITIES

OF LOCAL AUTHORITIES

Article 26. General Provisions of Legal Guarantees for the Activities of Local Authorities

The decisions of the municipal council, board and the ordinances of the mayor, which do not exceed their competence shall be binding to all enterprises, institutions and organisations located on the territory of a respective local authority as well as to the officers and residents thereof. (Amended 25 February 1997)

Local authority rights established by this Law may not be restricted or curtailed, except in the cases provided for in the laws of the Republic of Lithuania.

In the drafting and consideration stages, laws and other legal acts pertaining to activities of local authorities shall be co-ordinated with the Association of Local Authorities of Lithuania in the manner prescribed by institutions. (Amended 23 January 1997)

Article 27. Legal Protection for the Activities of the Councils

Councils shall have the right to appeal to court concerning the violations of their rights.

Article 28. Legal Supervision of Self-Government Institutions and Officers

The compliance of local authorities with the Constitution and laws of the Republic of Lithuania and decisions of the Government shall, in the manner prescribed by law, be supervised by representatives of the Government - officers appointed by the Government. (Amended 25 February 1997, 14 May 1998)

Complaints of citizens concerning the abuse of power or bureaucracy of municipal officers shall be examined by the Seimas Ombudsmen whose powers shall be defined by the Law on the Seimas Ombudsmen.

Acts or actions of councils, their executive institutions and officers, which violate the rights of citizens and organisations may be appealed against in the court.

Article 29. Symbols and Business Conduct of Local Authorities

The coat of arms of the administrative centre of a municipality shall be considered the coat of arms of the respective local authority. The local authorities which do not have the local authority coat of arms, approved in the prescribed manner, shall use the State Emblem.

The local authority coat of arms shall be used on the flag of the municipality, seals of local self-government institutions, local authority administration, its divisions and officers, insignia of mayors, document forms and signs. (Amended 14 March 1996)

Local authority business shall be conducted in the Lithuanian language and must correspond to the requirements for business conduct established by the State.

Article 30. Introduction of Direct Rule Into the Local Authority Territory

By the decision of the Seimas, direct rule may be temporarily introduced into the territory of the local authority, but not longer than up to the expiration of the term of office. Upon the introduction of direct rule, the municipal council and the executive institutions formed by it shall lose their powers.

Direct rule may be introduced if:

1) the actions of self-government institutions threaten the integrity of the state territory and constitutional order;

2) courts establish that the council fails to adhere to the Constitution of the Republic of Lithuania, violates laws;

3) the council fails to elect a mayor, deputy mayor and does not form self-government institutions within the time established in this Law or fails to convene for the sitting, convoked by the mayor, three times in success; and

4) the mayor or the council does not adhere to the provisions of paragraph 3 of Article 9 of this Law.

Proposals to temporarily introduce direct rule may be submitted to the Seimas by the Government of the Republic of Lithuania, and the conclusions concerning the validity of this proposal shall be submitted to the Seimas by the Local Government Committee of the Seimas.

In the decision to temporarily introduce direct rule, the Seimas shall set the date of a new election to the municipal council.

The Government of the Republic of Lithuania shall implement direct rule of a municipality in accordance with the Law of the Republic of Lithuania on Direct Rule of Administrative Territorial Units. (Repealed 25 February 1997)

Article 31. Coming into Effect of the Law

This Law shall become effective on the day following the elections to the councils of municipalities of the Republic of Lithuania. Upon coming into effect of this Law, the Law of the Republic of Lithuania on the Fundamentals of Local Government becomes invalid.

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

PRESIDENT OF THE REPUBLIC	ALGIRDAS BRAZAUSKAS