REPUBLIC OF LITHUANIA

REPUBLIC OF LITHUANIA REPUBLIC OF LITHUANIA LAW ON LOCAL SELF-GOVERNMENT 7 July 1994 No I-533 Vilnius (Last amended by 26 November 2013 – No XII-620) 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, survey, activities through their representatives, community-based organisations, etc.) with the aim of meeting these needs and interests. 13. ‘’Community-based 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 residential zone or part thereof; the elder shall enjoy the rights and duties defined by this Law. 15. ‘’Meeting’’ means a meeting of elders where the issues defined by this Law are solved. 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 surveys, 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; Subparagraph 11 valid as of 1 January 2014: 11) development and activity planning. The municipality shall act pursuant to mutually-coordinated, varying-duration spatial, strategic and financial planning documents the preparation, consideration and supervision of implementation (monitoring, consideration of reports) of which involve the population of the municipality; 12) 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; 13) 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; Version of subparagraph 17 valid until 31 December 2013: 17) primary personal and public health care (founding, reorganization, liquidation and maintaining of establishments); Version of subparagraph 17 valid as of 1 January 2014: 17) primary personal and public health care (founding, reorganization, liquidation and maintaining of establishments) with the exception of public health care of learners educated under pre-school, pre-primary, primary, basic and secondary education curricula at pre-school   education, general education schools and vocational training schools located within the municipal territory; public health improvement and public health monitoring; Version of subparagraph 18 valid until 31 December 2013:                  18) preparation and implementation of health schemes of municipalities; support of health care of the municipal population; Version of subparagraph 18 valid as of 1 January 2014: 18) planning and implementation of health promotion measures; support of health care of the municipal population; Version of subparagraph 19 valid until 31 December 2013: 19) territory planning, implementation of solutions of a general plan and detailed plans of the territory of a municipality; Version of subparagraph 19 valid as of 1 January 2014: 19) territory planning, implementation of solutions of a general plan of a municipality and general plans and detailed plans of the parts 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; Version of subparagraph 22 valid until 31 December 2013: 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; Version of subparagraph 22 valid as of 1 January 2014: 22) preparation and implementation of strategic development documents and planning documents implementing them; 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; Version of subparagraph 27 valid until 31 December 2013: 27) provision of addresses to land plots, on which the construction of buildings is permitted in accordance with the purpose (way, type) of use or spatial planning documents, to buildings, apartments and other premises, provision of names to streets, buildings, construction works and other facilities situated within the territory of a municipality as well as change and cancelation of these addresses and names; Version of subparagraph 27 valid as of 1 January 2014: 27) provision of addresses to land plots, on which the construction of buildings is permitted in accordance with the purpose (way) of use or spatial planning documents, to buildings, apartments and other premises, provision of names to streets, to buildings, construction works and other facilities situated within the territory of a municipality as well as change and cancelation of these addresses and names in accordance with the procedure laid down by the Government or an institution authorized by it; 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; Version of subparagraph 34 valid until 31 December 2013: 34) participation, cooperation in ensuring public order, creating and implementing crime prevention programmes; Version of subparagraph 34 valid as of 1 January 2014: 34) participation, cooperation in ensuring public order, creating and implementing crime prevention measures; 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; Version of subparagraph 43 valid until 31 December 2013:                  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; Version of subparagraph 43 valid from 1 January 2014 to 31 December 2014:       43) provision of a social allowance set in by the Law of the Republic of Lithuania on Cash Social Assistance to Poor Residents and rendering of cash social assistance to poor residents in the municipalities specified by the abovementioned Law; 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 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) repealed as of 1 January 2012; 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 valid from 1 January 2014 to 31 December 2014:         9) calculation and payment of social benefits and compensations, except a social allowance set in by the Law of the Republic of Lithuania on Cash Social Assistance to Poor Residents and cash social assistance to poor residents in the municipalities specified by the abovementioned Law; 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 as of 1 January 2011; 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 surveys 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; Subparagraph 35 valid as of 1 January 2014: 35) public health care of learners educated under pre-school, pre-primary, primary, basic and secondary education curricula at pre-school education, general education schools and vocational training schools located within the municipal territory; public health improvement and public health monitoring; 36) radiation protection; 37) 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. Version of Chapter Three1 valid as of 1 January 2014: CHAPTER THREE1 PLANNING AND PLANS AT A MUNICIPALITY Article 101. Planning at a Municipality A municipality shall create and operate a planning system which consists of spatial, strategic and financial planning. Article 102 . Spatial Planning at a Municipality Spatial planning at a municipality shall be implemented and spatial planning documents shall be prepared and implemented in accordance with the procedure and under the conditions laid down by the Law of the Republic of Lithuania on Spatial Planning and the legal acts enforcing it. Article 103. Strategic Planning at a Municipality 1. A municipality shall prepare the following municipal strategic planning documents: a municipal strategic development plan, development programmes of individual industry types (sectors) of the municipality and a municipal strategic action plan. Development programmes of individual industry types (sectors) shall be prepared only in cases where such preparation of planning documents is provided for by law. 2. A municipal strategic development plan and development programmes of individual industry types (sectors) shall be planning documents of a longer term (more than three years) intended for forecasting the environmental, social and economic development in the municipality and prepared taking into account spatial planning and strategic planning documents of the national and regional levels and also spatial planning documents of the municipalities. 3. A municipal strategic action plan which is being prepared for a period of 3 years (making adjustments every year) shall elaborate on the implementation of the goals and objectives of the strategic development plan of the municipality and development programmes of individual industry types (sectors) of the municipality and is formed taking into consideration planned financial and human resources of the municipality. 4. Annual action plans of the municipal administration, a ward, a municipal budgetary institution shall be documents elaborating on the implementation programmes of the municipal strategic action plans or parts thereof (goals and objectives, individual measures) which is the responsibility of the municipal administration, the ward, the municipal budgetary institution, where such documents are prepared taking into consideration the appropriations planned in the municipal budget to be allocated to them. These plans shall specify concrete operations (actions) and/or projects of the municipal administration (its organisational units), the ward, the municipal budgetary institution to be carried out during that year, appropriations to be allocated for such operations (actions), and the criteria of assessment ( and their meanings) of the results to be achieved by the said institution or its units. 5. The procedure of organisation of strategic planning at a municipality (preparation, review and approval of municipal strategic planning documents and planning documents elaborating on the implementation thereof, monitoring of the implementation, evaluation of the results to be achieved, preparation and consideration of reports on the implementation of planning documents, including of the municipal population in the preparation, consideration and supervision of the implementation thereof, publicity, etc.) shall be laid down by the municipal council, taking into account the recommendations for strategic planning in municipalities approved by a resolution of the Government. 6. Municipal strategic planning documents and planning documents elaborating on the implementation thereof as well as reports on the implementation of these documents shall be available to the public and published on the website of the municipality. Article 104. Financial Planning at a Municipality 1. Financial planning of municipal activities shall be a process during which, taking into account the approved strategic planning documents of the municipality, a municipal budget and estimates of other funding sources are drawn up. 2. A municipal budget (a municipal annual financial plan) shall be drawn up in accordance with the approved strategic action plan of the municipality, as well as taking into account other approved strategic planning documents of the municipality, while appropriations being planned to implement programmes of the strategic action plan of the municipality and to achieve the planned results and distributed to appropriations managers. 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, committees of the municipal council must be set up and chairmen of these committees must be elected (appointed), commissions provided for in this Law must be set up and chairmen of these commissions must be appointed, 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 chair 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 chair 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 chair of the constituency electoral committee. If the chair 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 the director of the municipal administration, a deputy director of the municipal administration or any other civil servant of the municipal administration 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 chair 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. Version of paragraph 6 valid until 30 June 2014: 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. Version of paragraph 6 valid as of 1 July 2014: 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 according to the procedure laid down by the rules of conduct. An agenda of a sitting of the municipal council shall, not later than three working days prior to a sitting of the municipal council, be announced on the municipal website. 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 drafts of solutions of these proposals are registered at least 24 hours before the beginning of the sitting. This provision shall not apply to proposals related to the submission of drafts of solutions of regulative nature. 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 and 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 the elder – when issues under consideration concern the local community represented by him, also the warden and a representative (representatives) of an initiative group for the local population opinion survey when the results of the local population opinion survey or matters concerning the issue (issues) proposed for the local population opinion survey are deliberated. 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 chair of the Control Committee, a deputy chair of the Control Committee, a chair of the Administrative Commission, a chair of the Ethics Commission are appointed, the issue regarding the non-confidence in the chair of the Control Committee, the deputy chair of the Control Committee, the chair of the Administrative Commission, the chair 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 each councillor must be stored in the information medium and announced in the website of the municipality. 10. A councillor must stay away from voting 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 chair 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. Chairs and deputy chairs 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 chair of the Control Committee on the proposal from the minority (opposition) of the municipal council, while a deputy chair 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 chair of the Control Committee or if the minority (opposition) of the municipal council is not proclaimed, a chair and a deputy chair 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. Version of paragraph 7 valid until 30 June 2014:             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. Version of paragraph 7 valid as of 1 July 2014: 7. Agendas of sittings of the committees shall be announced on the website of the municipality not later than two working days prior to the beginning of a committee sitting. Paragraph 8 valid as of 1 July 2014: 8. Sittings of the committees shall be audio recorded. Audio recordings of sittings of the committees shall be stored in the information medium. 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 chairs of these Commissions from the councillors. If the minority (opposition) of the municipal council is announced, the candidature of chair 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 chair of the Ethics Commission, a chair 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-based 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-based 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 …