official translation

official translation Official translation REPUBLIC OF LITHUANIA LAW ON LOCAL SELF-GOVERNMENT 7 July 1994 No. I-533 Vilnius (Last amended on 28 June 2007 No. X-1245) CHAPTER ONE GENERAL PROVISIONS Article 1. Purpose of the Law The purpose of this Law - to promote and develop local self-government as the foundations of the development of a democratic State. Article 2. Objective of the Law 1. This Law shall lay down the procedure of formation and activities of local authorities when implementing the provisions of the Constitution of the Republic of Lithuania and the European Charter of Local Self-government, define the principles of local self-government, local authorities, their powers and functions, 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 the 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, which has the status of a legal person and the right to self-governance guaranteed by the Constitution of the Republic of Lithuania and implemented via a municipal council. 2. “Local self-government” means the right of an administrative unit of the territory of the State - a municipality - to freely and independently manage affairs in accordance with the Constitution and laws of the Republic of Lithuania through a municipal council composed of representatives directly elected by the permanent residents of a administrative unit, as well as through executive institutions formed by a municipal council. 3. “Local authorities” means a representative institution, that is a municipal council and an executive institution, that is a director of the municipal administration, having the rights and duties related to local government and public administration. Local authorities are responsible for the implementation of the right to self-governance and their functions in the interests of community. 4. “Municipal control and audit institution” means a municipal controller (the municipal controller’s service) who/which supervises whether the municipal property is managed and used in a legal, effective, economical and efficient manner, as well as the implementation of a municipal budget. 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 and undertakings controlled by a municipality which manage, use municipal property and disposes of it; the service shall be directly subordinate and accountable to the director of the municipal administration.   6. “Undertakings controlled by a municipality” means municipal undertakings operating in accordance with the Law on State and Municipal Undertakings, as well as public companies the shares whereof, giving more than ½ of votes at a general meeting of shareholders, belong to a municipality by the right of ownership. 7. “Administrating entities of a municipality” means local authorities and establishments subordinate to them, as well as 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 public administration and provision of public services attributed to municipalities by this and other laws. 9. “Community” means permanent residents living within an appropriate territory who share common public needs and interests. Article 4. Principles of Local Self-government Local self-government shall be based on the following main principles: 1) accountability to voters. Members of a municipal council (hereinafter referred to as “councillors”) shall be responsible and accountable to voters for their activities; 2) participation of the population in the management of public affairs of a municipality. Local authorities shall provide conditions for the population to directly participate in preparing and debating draft decisions, organising polls, meetings, assemblies, public consideration of petitions, as well as promote other forms of civic initiatives. Local authorities shall implement principles of self-governance in educational, cultural and other establishments, support initiatives of associations related to the management of public affairs of a municipality; 3) adjustment of municipal and State interests when managing public affairs of municipalities; 4) freedom and independence of the activities of local authorities when they, while implementing laws, other legal acts and obligations to the community, take decisions; 5) transparency of activities. Activities of local authorities and other public administration entities of a municipality must be transparent and easily understandable to the population who express interest in such activities, they shall be provided with possibilities to receive explanations what and why is done; 6) adjustment of interests of the community and individual residents of a municipality. Decisions taken by local authorities with respect to the interests of the community may not violate individual residents’ rights guaranteed by the law; 7) publicity and response to residents’ opinion. The population or their representatives shall be entitled to get access to decisions taken by local authorities, to receive public and justified answers to expressed opinion on work done by local authorities and other public administration entities of a municipality, as well as individual civil servants. Activities public administration entities of a municipality may be secret or confidential only in cases specified by the law; 8) lawfulness of the activities of a municipality and decisions taken by local authorities. Activities of local authorities 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; 9) ensuring and respect for human rights and freedoms. Decisions taken by local authorities or civil servants may not infringe human dignity, rights and freedoms, as well as equal opportunities of women and men. 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 such functions in accordance with the competence granted by the law, obligations to its community and for the interests thereof. When implementing the said functions, a municipality shall have the freedom of initiative of decisions, their adoption and enforcement, and shall be responsible for the fulfilment of the said functions; 2) assigned (of limited independence). When implementing this and other laws, as well as other legal acts taken on the basis thereof, municipalities shall exercise such functions taking into consideration local conditions and circumstances;  3) State (delegated to municipalities). These shall be State functions delegated to a municipality, taking into consideration interests of the local population. The said functions shall be delegated by the law and implemented in compliance with legal acts. When implementing the said functions, municipalities shall have the freedom of adoption of decisions, as prescribed by the law; 4) contractual. The implementation of such functions shall be based on contracts. 2. Functions of municipalities shall, in accordance with their type, be divided into 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, the director of the municipal administration, 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 pursuant to tendering procedure. Article 6. Independent Functions of Municipalities The following independent functions shall be established: 1) drawing-up and approval of a municipal budget; 2) pre-school education; 3) additional education, involvement in after school activities and vocational training of children and youth; 4) informal education of adults; 5) provision of meals at institutions of pre-school and general education;  6) founding, maintenance of establishments of social services, foster families, and co-operation with public organisations; 7) support of health care of the local population from the municipal budget; 8) organisation of people’s employment, acquiring of qualification and re-qualifying, public and seasonal works; 9) participation in ensuring public order and peace (creation and implementation of local programmes on crime control and prevention, requesting the services of police establishments operating within the territory of a municipality, as well as including public organisations and residents in the said activities); 10) development of physical training and sports; 11) organisation of tourism and recreation; 12) establishment of territories protected by a municipality, declaring objects of nature and cultural heritage of local significance the objects protected by the municipality; 13) creation of conditions for the development of business and promotion of such activities; 14) other functions that are not assigned to state institutions. Article 7. Assigned Functions (of Limited Independence) of Municipalities Assigned functions (of limited independence) of municipalities shall be as follows: 1) organisation of general education of children, youth and adults; 2) organisation of transportation to schools and to places of residence of pupils of rural schools of general education, who live far from schools; 3) ensuring of education of children under 16 years of age who live within the territory of a municipality, at schools of general education or other schools within the education system; 4) provision of social services and other social support; 5) creation of conditions of social integration into the community of the disabled (invalids, persons with total disability); 6) preparation and implementation of health programmes of municipalities; 7) primary personal and public health care; 8) control of compliance with the prohibition or restriction of alcohol and tobacco advertising on exterior means of advertising; 9) territory planning, implementation of solutions of a general plan and detailed plans of the territory of a municipality; 10) cultivation of general culture and fostering of ethnoculture of the population (participation in culture development projects, establishment, reorganisation, transformation, liquidation of museums, theatres 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); 11) establishing, in the manner prescribed by the law, of urban planning requirements for architecture of a construction works and putting of a construction plot in order in the set of construction works designing conditions; 12) maintenance and protection of the landscape, immovable cultural values and protected areas established by a municipality, protection, maintenance and development of green areas, vegetations, organisation of inventory, accounting, cadastral measuring of land plots of separate green areas and their recording in the Real Property Register, performance of monitoring; 13) supervision of the use of construction works, issuance of a set of construction works designing conditions and permits to build in the manner prescribed by the law; 14) planning of the infrastructure, social and economic development, preparation of programmes related to the development of tourism, housing, small and medium undertakings; 15) management, use and disposal of the land and other property which belong to a municipality by the right of ownership;     16) organisation of heating and drinking water supply, as well as wastewater collecting and treatment; 17) management of State aid to acquire housing, provision of social housing; 18) improvement and protection of environment quality; 19) approval of sanitary and hygiene rules and organisation of the control over compliance with the said rules, ensuring of cleanliness and tidiness in public places; 20) development of municipal waste management, organisation of secondary raw materials collecting and processing, as well as establishment and exploitation of waste dumps; 21) maintenance, repairing, surfacing of roads and streets of local significance, as well as ensuring of traffic safety conditions; 22) organisation of transportation of passengers by local routes, calculation and payment of compensations for preferential transportation of passengers; 23) provision and change of addresses (names of streets, buildings, construction works and other objects located within the territory of a municipality and belonging to it by the right of ownership, numbers of buildings and residential houses as well as flats); 24) ensuring of rendering of burial services and organisation of maintenance of cemeteries;   25) participation in the formation and implementation of regional development programmes; 26) establishment of the procedure for rendering trade and other services in marketplaces and public places; 27) issuance of permits (licences) in cases and manner prescribed by the law; 28) implementation of environmental noise prevention and state environmental noise management, assigned to municipalities. Article 8. State (Delegated to Municipalities) Functions State (delegated to municipalities) functions shall be as follows: 1) registration of acts of civil status; 2) management of registers assigned by the law and furnishing of data to State registers; 3) organisation of civil protection; 4) organisation of municipal fire-prevention services; 5) participation in the management of national parks; 6) calculation and payment of compensations (heating expenses, cold and hot water expenses, etc.); 7) 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; 8) calculation and payment of social benefits; 9) management, use and hold in trust of the State land and other State property assigned to a municipality; 10) consideration of citizens’ requests to restore ownership rights to dwelling houses, their parts, flats, buildings used for economic and commercial purposes, as well as adoption of decisions on the restoration of ownership rights; 11) execution of State guarantees for tenants moving out from dwelling houses or their parts and flats, which are returned to owners; 12) invalid from 27 April 2006; 13) control of use and accuracy of the State language; 14) management of archival documents assigned to municipalities in accordance with legal acts; 15) participation in selecting draftees for military service; 16) participation in preparing for mobilization; 17) provision of statistical data;  18) participation in preparing and implementing labour market policy measures and employment programmes; 19) participation in the organisation of elections of the President of the Republic, elections to the Seimas and to municipal councils; 20) participation in the preparation of opinion polls and referendums; 21) participation in the carrying-out of population and dwelling census and other total census; 22) protection of the rights of children and the youth; 23) allocation of quotas for State purchase of agricultural products; 24) registration of farmers' farms; 25) declaration of crop; 26) establishment of damage made to the agriculture by ungulates; 27) exploitation of land reclamation and hydrotechnical equipment, organisation of soil liming; 28) registration and technical maintenance of tractors, self-propelled and agricultural machines and their trailers; 29) co-ordination of agricultural issues, organisation and implementation of rural development and support for agriculture and rural development in the manner prescribed by the Government or an institution authorised by it; 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) other functions delegated by law; 33) ensuring of provision of social care to individuals with a severe disability; 34) gathering, storing and provision to the European Commission in the manner prescribed by the Government of the information about financial relations of local authorities and undertakings controlled by a municipality which meet the criteria set by the Government, as well as about undertakings which must maintain separate accounts. Article 9. Contractual Functions of Municipalities 1. Municipalities may exercise other State functions (public administration and public service rendering), which are not provided for in this Law, under contracts concluded with State institutions or establishments. A municipality may conclude such contracts only in the event that the municipal council gives its consent. Contracts shall be concluded and executed in compliance with the provisions of the Civil Code and other laws. Usually, contractual functions shall be short-term or seasonal. 2. For general purposes a municipality may conclude joint activity contracts or public procurement contracts with State institutions and (or) other municipalities. CHAPTER THREE RENDERING OF PUBLIC SERVICES Article 10. Basic Provisions of Rendering Public Services 1. A municipality shall be responsible for rendering public services to residents. 2. Public services shall be provided to residents for payment and free of charge. 3. A municipality shall organise the rendering of public services through existing providers of public services (budgetary and public establishments, municipal undertakings, companies and other entities), by establishing new providers of public services (public and other establishments and undertakings) or by concluding public service rendering contracts with natural and legal persons. 4. When rendering public services to residents of a municipality, providers must act in compliance with laws, decisions of local authorities and other legal acts.  5. Municipalities shall establish new providers of public services only in cases when other providers are not rendering public services or cannot render the said services to residents economically and of good quality. 6. When establishing new providers of public services, a municipality must seek that public services which are rendered for payment, would be economically rational and that a fix payment for them would cover the expenses of rendering of such services and other expenses of the provider related to the rendering thereof, but that the rendering of such services would not turn into profit-seeking activities. 7. A municipality must seek that all residents of a municipality could make use of public services and that such services would be rendered constantly. CHAPTER FOUR LOCAL AUTHORITIES, ESTABLISHMENT AND POWERS THEREOF Article 11. General Provisions 1. An institution which implements the right to self-governance shall be a municipal council. 2. Legal acts adopted by the municipal council may be suspended, amended or repealed by the municipal council itself. Legal acts adopted by other public administration entities of a municipality may be suspended or repealed by the municipal council within its remit. The director of the municipal administration or other public administration entities of a municipality may suspend, amend or repeal their adopted regulations by which laws are implemented and Government resolutions or other legal acts (by which state functions (delegated to municipalities) are fulfilled) are carried. If public administration entities of a municipality do not repeal disputable regulations within the time limits fixed by law, or adopt new regulations, which contradict the Constitution or laws, the representative of the Government shall appeal the validity of the said regulations in accordance with the procedure laid down by the Law on Administrative Proceedings. 3. Any municipal institution specified in paragraph 2 of this Article, upon having repealed a statutory administrative legal act of another administrating entity of a municipality, shall, when necessary, refer the issue for a new consideration to the same administrating entity whose act has been repealed, or it shall consider such issue anew and adopt a statutory administrative legal act on this issue, or it shall recognise that adoption of such an act is not necessary. 4. Individual administrative legal acts adopted by local authorities and other public administration entities of a municipality may be appealed against in the court. Article 12. Municipal Council 1. The municipal council shall consist of the representatives of the community of a municipality who are democratically elected in the manner prescribed by the law.   2. Procedure and form of the activities of the municipal council shall be established by this Law and the rules of conduct of the municipal council. 3. The powers of the municipal council shall start when the elected councillors gather to the first sitting, and shall expire when councillors elected for a new term of office gather to the first sitting. 4. A municipal mayor must be elected, deputy (deputies) of the mayor and the director of the municipal administration must be appointed, and a municipal council board must be set up, if so decided. 5. If the election results of a newly elected municipal council are deemed invalid, the powers of the existing municipal council shall last until the first sitting of the municipal council which shall be elected during a run-off election, or until introduction of temporary direct rule into the territory of the municipality. 6. 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 a municipality. Article 13. Forms of the Activities of the Council 1. The municipal council shall exercise its powers collegially at sittings of the municipal council. Issues for sittings of the municipal council shall be prepared by the committees of the municipal council (hereinafter referred to as “committees”) and commissions at their sittings, factions and groups of the councillors at meetings, as well as the administration of a municipality. The municipal council shall take decisions on the issues under consideration and control their implementation. 2. The municipal council must at least once a year present in the manner prescribed by the council’s rules of conduct, to the residents of a municipality a public report on the work done. On behalf of the municipal council the mayor shall present the said report. 3. Activities of the municipal council between sittings of the council shall proceed in the committees of the municipal council and in the form of communication of the councillors with the voters. Article 14. Municipal Council Sittings 1. A municipal council sitting shall be considered lawful if the majority of the elected councillors are present. 2. The first sitting of a newly elected municipal council shall be convened by the chairman of the constituency electoral committee not earlier than on the last day of office of the previous council and not later than 7 calendar days following the last day of office of the previous council, which is set in compliance with Article 119 of the Constitution of the Republic of Lithuania, and if the elections have been held in a newly established municipality or the municipality in which direct rule was introduced or run-off elections were held in the case provided for in Article 85 of the Law on  Elections to Municipal Councils – not later than within two weeks of the proclamation of election results. This sitting shall be presided over by the chairman of the constituency electoral committee. The time and place of the first sitting shall, not later than 14 days in advance, be announced via the mass media by the chairman of the constituency electoral committee. If the chairman of the constituency electoral committee does not convene the first sitting of a newly elected municipal council before the end of expiry of the time limit fixed in this paragraph, councillors of a newly 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 newly elected municipal council shall be presided over by the persons referred to in paragraph 2 of this Article, until a municipal mayor is elected. Two following issues shall be considered at the first sitting of a newly elected municipal council: 1) taking of a decision regarding the dismissal of director of the municipal administration (deputy director of the municipal administration) because of the expiration of his term of office, and assignment for him to hold office until a director of the municipal administration (deputy director of the municipal administration) is appointed for a new term of office; 2) election of municipal mayor, possible appointment of deputy mayor (deputy mayors) and director of the municipal administration. In the event of failure to elect mayor during the first sitting, the municipal council shall take a decision on the date of the next sitting. It must be convened not later than within 5 calendar days after the first sitting, and it shall be also presided over by the chairman of the constituency electoral committee. 4. Subsequent municipal council sittings shall, at least every 3 months, be convened by the mayor and in case of his absence - the deputy mayor. Sittings shall be presided over by the mayor and in case of his absence - by the deputy mayor. The mayor and in case of his absence - the deputy mayor must convene a sitting on the written demand of at least one-third of the elected councillors who submit issues 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 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. The mayor, and in case of his absence - the deputy mayor or a councillor who has been authorised by one-third of the elected councillors shall, at least three days prior to the commencement of the sitting, inform in writing all the councillors and, in the manner prescribed by the municipal council’s rules of conduct, the residents of the time of a sitting as well as of the issues prepared for consideration. 6. Issues subject to consideration by the municipal council, as well as draft solutions shall be submitted by the committees, commissions, councillors, municipal controller, director of the municipal administration. The mayor shall draw up an agenda of a council sitting. It may be supplemented or amended by the decision of the municipal council upon proposal of the committee, commission, faction and one-third of the councillors attending the sitting. 7. Decisions of the municipal council shall be adopted by a majority vote of all the councillors participating in the sitting. In the event of a tie, the vote of the mayor or the presiding officer of the sitting shall be casting. A councillor must disqualify himself when property or financial issues related to him or his family members and close relatives are being considered, or when his participation in the voting may result in a conflict of public and private interests. 8. Minutes shall be taken at municipal council sittings. Minutes of the sitting and decisions of the municipal council must be signed by the mayor or his deputy, or another councillor, who presided over that sitting. The minutes must be also signed by the council secretary and in case of his absence – a civil servant or an employee working under employment contract, who is appointed by the director of the municipal administration (with the mayor’s consent). The decision concerning the election of the mayor shall be signed by the chairman of the constituency electoral committee who has presided over the sitting of the municipal council. 9. Council sittings shall be open to the public. The presiding officer of the sitting shall have the right to permit invited persons to take the floor in the sitting. Other persons participating in the sitting shall be given the floor in the manner prescribed by the municipal council’s rules of conduct. 10. 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. 11. Only those issues shall be considered at municipal council sittings the draft decisions whereof are submitted in the manner prescribed by the municipal council’s rules of conduct. In cases of extraordinary situations the mayor shall have the right to submit to the municipal council an issue for consideration and to propose to adopt a decision not in accordance with the established procedure. 12. Submitted drafts of decisions shall be registered in accordance with the procedure laid down by the municipal council’s rules of procedure and shall be put on the webpage of a municipality not later than on the working day which follows their registration. Article 15. Municipal Council Committees 1. Municipal council committees shall be set up to preliminary consider issues submitted to the municipal council and to present conclusions and proposals, to control the observance of laws and implementation of decisions of the municipal council and the mayor. 2. Committees shall be set up from the councillors by decision of the municipal council. Each municipality must set up a control committee. The control committee shall comprise an equal number of representatives delegated by all the parties and coalitions represented in the municipal council. When setting up other committees, a principle of proportional representation of the majority and minority shall be adhered to. The number of committees as well as their members, powers, except the control committee, shall be established by the council. The powers of the control committee shall be established by the council, taking into consideration paragraph 4 of this Article. Work procedure of the control committee shall be established in the municipal council’s rules of conduct. 3. Chairmen and deputy chairmen of the committees, except the control committee, shall be elected by the councillors. The municipal council shall elected chairman of the control committee and appoint his deputy on the proposal of the chairman of the control committee. Chairman of the control committee shall be considered elected and his deputy shall be considered appointed, if the majority of the elected councillors vote for this. 4. The control committee shall: 1) propose to the municipal council to dismiss the municipal controller, if there are grounds for dismissal from civil service, laid down in the Law on Civil Service; 2) submit findings to municipal council regarding results of the activities of the municipal controller (municipal controller’s office); 3) consider a draft action plan of the municipal controller and present it to municipal council for approval, submit proposals regarding supplements or amendments of the said plan, in accordance with the procedure laid down by the municipal council’s rules of conduct return this draft plan prior to January 15 of the current year for approval by the municipal controller; 4) consider a report prepared by the municipal controller regarding the implementation of the action plan of the controller (municipal controller’s office), prepare on its basis and submit to the municipal council conclusions regarding the lawfulness, expediency and efficiency of the use of municipal property and funds, as well as activities of the municipal controller and the municipal controller’s office; 5) propose to the municipal council to carry out independent audit of the use of municipal property and funds and the activities of a municipality, submit its conclusions regarding the audit results; 6) periodically (every three months) consider the execution of the action plan of the municipal controller (municipal controller’s office), on the initiative of the municipal controller or on its own initiative hear out heads of institutions, establishments and undertakings concerning the elimination of deficiencies or violations of legal acts established by the municipal controller (municipal controller’s office) during inspections, when necessary address the director of the municipal administration regarding the implementation of requirements of the municipal controller (municipal controller’s office); 7) work in accordance with the activities programme approved by the municipal council, and at the end of each year account for its activities to the municipal council. 5. Committees shall within their competence adopt recommendatory decisions.  Local authorities must consider decisions related to their activities and report to the committees about the adopted decisions. The municipal administration, its subdivisions, budgetary and public establishments, and undertakings controlled by a municipality must consider committee decisions related to their activities and inform the committees about the results of consideration. 6. Experts, public representatives and civil servants may participate in a deliberative capacity in the work of committees and commissions according to the procedure established by the municipal council’s rules of conduct. Article 16. Commissions of the Municipal Council 1. The municipal council shall, for a term of its office, set up an administrative commission under the council. The said commission shall consider cases of administrative offences assigned to its competence by the Code of Administrative Offences. On the recommendation of the mayor, the municipal council shall appoint a council member as chairman of the said commission. A civil servant appointed by the director of the municipal administration shall perform the duties of an executive secretary of the commission; the said functions shall be entered in his job description. 2. In cases specified by laws or by decision of the municipal council other standing commissions (for a term of office of a particular council) and ad hoc commissions (for consideration of particular issues) may be set up. The procedure for forming such commissions shall be established by the municipal council’s rules of conduct, and their rules of procedure shall be approved by the municipal council. 3. Councillors, civil servants and representatives of communities of residential areas may become members of commissions set up by the municipal council. Article 17. Powers of the Municipal Council The municipal council: 1) shall approve municipal council’s rules of conduct. It must, among other issues, provide for main forms and ways of communication with the local population, which would guarantee the implementation of principles and rights to local self-governance for the interests of the community; 2) shall elect the mayor and dismiss him prior to the expiry of the term of office; 3) on the recommendation of the mayor, shall appoint deputy (deputies) of the mayor and dismiss him (them) prior to the expiry of the term of office; set his (their) salary in compliance with the law; 4) on the recommendation of the mayor, shall establish a sphere of activities of a deputy (deputies) of the mayor; 5) shall take a decision to form a municipal council board and form it on the recommendation of the mayor; 6) shall set up committees, commissions of the municipal council, and other units necessary to organise municipal council’s work, as well as public commissions and councils provided for by the law; 7) shall elect chairman of the control committee; on his proposal, appoint deputy of the chairman of the control committee, approve a programme of activities of the control committee; 8) shall set up a commission for the selection of candidates for the position of the municipal controller (a representative of the National Audit Office must be invited to be a member of such commission), adopt a decision concerning the acceptance of the municipal controller to the office and his dismissal from civil service, on the recommendation of the municipal controller establish (or may establish when a number of municipal residents is less than 30 000 residents) the office of the municipal controller and fix a maximum number of positions of civil servants and employees working under employment contracts in the said office, once a year hear a report of the municipal controller (office of the municipal controller) and adopt a decision thereon; 9) shall take a decision on acceptance of director of the municipal administration (deputy director of the municipal administration) to the office and his dismissal from civil service, on the recommendation of the mayor approve the structure of the municipal administration, its regulations and the wage fund, fix a maximum permitted number of civil servants and employees working under employment contracts and receiving wages from the municipal budget; 10) may take decisions regarding the establishment of wards and their number, grant names to wards and change them, assign municipal territories to wards, establish their boundaries and, when necessary, change them upon having evaluated local residents’ opinion; 11) shall approve rules of procedure of the municipal controller (office of the municipal controller), as well as of public commissions and councils; 12) in accordance with the procedure laid down by the Law on the Structure of the Budget and the Law on the Accountability of the Public Sector, shall approve the municipal budget, the municipal budget execution statements and financial reports of a municipality, when necessary, adjust the municipal budget; 13) shall adopt decisions on the appropriation of additional and plan-exceeding budgetary income and other resources, as well as on the establishment and use of target funds; 14) shall distribute budgetary assignments to budgetary institutions; 15) shall take decisions on an analysis of the development of a municipal territory, preparation of projects of general long-term social, cultural, economic, investment, demographic, crime control and prevention, ecological, health and other programmes; 16) shall take decisions on appropriation of target funds of state social and economic programmes and other funds of state foundations and other tangible property for budgetary establishments of a municipality; 17) shall take decisions on design and building of objects of social and industrial infrastructure, instruct the municipal administration to carry out functions of a contract giver, lay down a procedure for exploiting such objects; 18) shall take decisions on a procedure for forming a subsidized housing stock (building, purchase, etc.), a procedure for granting a dwelling and on a rate of rentals of municipal living quarters; 19) on the proposal of the mayor, shall decide on establishment of a municipal council’s secretariat and positions of civil servants of political (personal) confidence of the mayor (if a secretariat is not established) as well as fix their number; 20) shall each year set priorities of training of municipal councillors and civil servants; 21) fix prices and rates for the payable services rendered by undertakings controlled by a municipality, municipal budgetary and public establishments as well as the transportation of passengers by local routes, and, in the manner prescribed by the law, fix prices of centralised supply of heating, cold and hot water, establish local charges and fees and other payments; 22) shall, in the manner prescribed  by an institution authorised by the Government,  observing the limits on borrowing set out by law and after the receipt of municipal controller’s conclusions, take decisions on the use of bank credits, taking and making of loans, provision of guarantees and warranty to creditors for loans taken by undertakings controlled by a municipality; 23) shall take decisions on the provision of tax, charges and fees privileges and other privileges provided for by laws, at the expense of the municipal budget. It shall establish a procedure for providing subsidies and compensations for undertakings of all types, which establish new places of employment, amend appropriately the municipal budget in the cases when funds have not been provided for such matter; 24) shall approve programmes of social and economic development of a municipality; 25) shall delegate councillors to regional councils and commissions provided for by law, and grant authorisation to them; 26) shall take decisions on the disposal of the property belonging to a municipality by the right of ownership, establish a procedure of the management, use and disposal of such property, except for the cases when the said procedure have been established by laws; 27) shall take decisions on the management, use and disposal by trust of the State land and other State property assigned to a municipality; 28) shall take decisions on the setting-up of budgetary establishments, municipal undertakings, foster families, public establishments and companies; in the manner prescribed by law take decisions on participation in setting up of them and on reorganisation, restructuring and liquidation of such establishments, undertakings and foster families or participation in their reorganisation, restructuring and liquidation, as well as on appointment of heads of legal persons to the office and dismissal from it; 29) shall take decisions on the establishment of joint undertakings together with other municipalities; 30) shall in the manner prescribed by law approve territory-planning documents. It may instruct the director of the municipal administration to approve special and detailed plans in accordance with the procedure laid down by law and municipal council’s rules of conduct; 31) in the manner prescribed by the Law on Protected Territories, shall establish territories protected by a municipality, announce nature and cultural heritage monuments of local significance which are protected by a municipality, take decisions on the improvement of the condition of environmental protection; 32) shall submit proposals on the change in the boundaries of a municipality, naming of a municipality and changing of its name, establishment of residential areas, establishment of their names and boundaries and the change thereof, as well as, according to the criteria set by the Government, give and change names of streets, squares, buildings, construction works and other objects belonging to a municipality by the right of ownership; 33) shall approve the rules concerning the protection of green plantations, of maintaining order in cities and other residential areas, public health, sanitary and hygiene, waste management and environmental protection, keeping of pets, trade in market places and other rules; 34) shall submit proposals to approve in a prescribed manner coats of arms of residential areas, approve other symbols of a respective municipality and the procedure of the use thereof; may in a prescribed manner grant an honorary title of a resident of a municipality (its centre or another residential area); 35) in the manner prescribed by the municipal council’s rules of conduct, shall hear reports of the municipal mayor, director of the municipal administration, municipal controller, heads of budgetary and public establishments, undertakings and organisations as well as their responses to the inquiries of councillors, and take decisions thereon; 36) shall submit proposals to State institutions regarding the activities of their subdivisions  located in the territory of a municipality, when necessary, hear the heads of such subdivisions in the manner prescribed by the municipal council’s rules of conduct; 37) shall take decisions on the restoration of the rights of ownership of the existing real estate, managed by a municipality, to religious communities and associations; 38) shall take decisions on the payment of compensations to certain groups of consumers for bought fuel, electric power and thermal energy, hot water and natural gas; 39) shall take decisions on expediency of granting concessions, before the announcement of tendering, following the receipt of municipal controller’s conclusions, approve tendering conditions and main terms and conditions of a concession contract, set out phases of tendering and, after the receipt of municipal controller’s conclusions, before signing of a concession contract, approve of a final draft of a concession contract; 40) shall take decisions on the establishment of specialised (target) funds; 41) shall lay down a procedure of distribution of charity received in the name of a municipality; 42) may take a decision to carry out independent audit of certain activities of municipal establishments or undertakings controlled by a municipality; 43) shall approve a procedure of signing contracts, which are being concluded in the name of a municipality and establish which contracts may not be concluded without a prior consent of the municipal council; 44) shall take a decision to recover damages from the director of the municipal administration and other public administration entities of a municipality, which have been inflicted due to their (his) intentional unlawful decisions, non-performance of the duties or gross negligence while carrying out the duties, when public administration entities of a municipality have had to compensate for the damage following the court’s decision, if the damage does not exceed the amount equal to their (his) average workpays for the last six months; 45) shall take decisions to join municipality unions, to co-operate with municipalities of foreign states or to join international self-government organisations; 46) shall approve programmes on rural development; 47) shall make decisions to announce an opinion poll of local population. 48) shall approve municipal plans for noise prevention actions, indicators of noise within the territory of a municipality and rules of noise prevention in public places, set silent zones. It shall establish the competence of an executive institution of a municipality, other subordinate public administration entities in the field of noise management and supervise its implementation; 49) may, without exceeding the powers set out by law, take decisions, which are not excluded from its competence or are not assigned to other public administration entities. Article 18. Municipal Council’s Board 1. The municipal council may, for the term of the powers thereof, set up a municipal council’s board from among the councillors (hereinafter referred to as the “board”), and establish the number of its members. The municipal council may instruct the board to exercise the powers of the municipal council referred to in subparagraphs 15, 19 and 20 of Article 17 of this Law.  2. The mayor and deputy mayor (deputy mayors) shall be ex officio members of the board. The mayor shall present to the municipal council for approval the candidatures of other board members (not on permanent staff) from among the councillors. Only citizens of the Republic of Lithuania may be board members. Chairman of the control committee, his deputy and members of the control committee may not be members of the board. The municipal council’s rules of conduct shall establish working arrangements of the board, procedure for organising sittings, the status of board members, the procedure of their approval and loss of the board member’s status. The board shall account for its activities to the council at least once a year or when necessary. 3. The powers of the board shall expire when newly elected councillors gather for the first sitting. Until the formation of a new board, its powers shall be temporarily exercised by the mayor. Article 19. Powers of the Board Repealed on 25 February 2003 Article 20. Mayor, Deputy Mayor 1. For the term of its powers, the municipal council shall elected municipal mayor (hereinafter referred as the “mayor”) from among the councillors, and on the proposal of the mayor, shall appoint one or several deputy mayors. The mayor shall head a municipality. Only the citizens of the Republic of Lithuania may become mayors and deputy mayors. The municipal council may decide that a deputy mayor carries out the duties on a voluntary basis. The mayor shall be elected and his deputy shall be appointed by secret ballot. The mayor shall be considered elected and a deputy mayor shall be considered appointed if the majority of all the councillors have voted for their candidatures. An employment contract shall not be concluded with the mayor and deputy mayors. 2. The powers of the mayor, deputy mayors shall be terminated before the expiry of the term of office, if the majority of all the councillors vote: 1) on the proposal of the Government or the National Audit Office, for violations of laws or other legal acts which have inflicted essential damage to State or municipal interests or property; 2) if due to temporary incapacity to work, he does not work more than 120 calendar days in succession or more than 140 days within the last twelve months; 3) upon his request for resignation; 4) when he leaves for permanent residence in a foreign country. 3. The powers of the mayor, deputy mayors shall be also terminated prior to the term of office, if not less than 1/3 of all the councillors express the non-confidence in them, the municipal council adopts a decision to dismiss the mayor, deputy mayor and not less than ½ of all the councillors vote for such decision. If a decision to dismiss the mayor, deputy mayor because of the non-confidence is not adopted, such issue may be considered no sooner than after one year. 4. On the proposal of the mayor, the powers of a deputy mayor shall be terminated before the expiry of the term of office, of the majority of all the councillors vote for that. 5. The powers of the mayor, deputy mayor shall be terminated if they lose a mandate of a councillor. 6. Upon the expiry of the powers of the municipal council, the powers of the mayor elected by that council and the powers of the deputy mayor shall terminate. 7. After the expiry of the term of office, the mayor and his deputy, if not elected mayor or appointed deputy mayor, or if he loses his powers before the expiry of the term of office (with the exception of the cases when the mayor, deputy mayor loses his powers in accordance with the procedure laid down in subparagraphs 1 and 4 of paragraph 2 of this Article) shall have the right, in a manner prescribed by the Government, to return to the office held prior to being elected councillors, and if there is no such possibility - to another position of the same or lower category, if the position held is attributed, in accordance with legal acts, to the position of a civil servant (except the position of a civil servant of political (personal) confidence), or if they any other position in a state or municipal budgetary or public establishment or an undertaking controlled by a municipality. If the said persons had not held such positions prior to being elected councillors, they shall be paid compensation equal to their average salaries for three months. It shall be paid within 3 months in equal parts every month. If a person begins holding a position in civil service prior to the expiry of a three-month period, an unpaid part of compensation shall not be paid. If the said persons have held the positions of mayor and deputy mayor for less than a year before the expiry of the term of office, they shall be paid compensation equal to their average salaries for one month. Upon the termination of the powers of mayor and deputy mayor before the expiry of the term of office, when not less than one-third of councillors have express non-confidence in them and not less than 1/2 of all the councillors have voted for such decision, they shall be paid compensation equal to their average salaries for two months. 8. Salaries of the mayor and deputy mayor shall be approved by the municipal council in accordance with the ratios established by the law. 9. The mayor and deputy mayor may not work in other institutions, establishments, undertakings and organisations and receive any other payment, with the exception of payment for scientific, pedagogical or creative activities. This provision shall not apply if a deputy mayor holds the position on a voluntary basis. 10. A deputy mayor shall preside over a sitting of the municipal council, when the mayor may not participate while adopting a decision. 11. The Law on Employment Contract as well as provisions of labour laws regulating the application of disciplinary penalties shall not apply to the mayor, deputy mayor. 12. A secretariat of the municipal council (hereinafter referred to as the “secretariat”) may, on the mayor’s proposal, be set up to provide services for sittings of the municipal council, the committees, the mayor, as well as to prepare, consider drafts of decisions of the municipal council and to prepare drafts of conclusions regarding council’s decisions. The municipal administration shall carry out financial, economic and material servicing to a secretariat. The municipal council shall fix a separate estimate of expenditure of a secretariat. A secretariat may be formed from civil servants of political (personal) confidence, career civil servants and employees working under the employment contract. In the event a secretariat is not formed, the mayor may, for the duration of the term of office, have civil servants of political (personal) confidence. Article 21. Powers of the Mayor, Deputy Mayor 1. The mayor shall be accountable to the municipal council and the community for the activities of a municipality. 2. The mayor: 1) shall plan activities of the municipal council, set and draw up agendas of sittings of the municipal council, present drafts of decisions, convene municipal council sittings and preside over them, co-ordinate activities of municipal council’s committees and commissions, sign municipal council’s decisions and minutes of the sittings over which he has presided; 2) shall himself represent or authorise other persons to represent the municipality in court, in co-operation with other municipalities, state institutions, institutions of foreign states, as well as with other natural and legal persons; 3) shall represent a municipality in the Regional development council and have the right of casting vote when preparing and implementing a regional development programme; 4) shall propose to the municipal council candidatures for a deputy mayor (deputy mayors), director of the municipal administration, deputy director of the municipal administration (on the recommendation of the director of the municipal administration) and chairmen of commissions; may propose to dismiss them and propose to impose penalties to the director of the municipal administration; 5) shall approve regulations of the secretariat, appoint to a position and dismiss secretariat staff members in accordance with the procedure laid down by the Law on Civil Service; 6) shall guide the work of the secretariat; 7) may, in the manner prescribed by the rules of conduct of the municipal council, propose to the municipal council to instruct the municipal controller (the office of the municipal controller) to carry out a financial and performance audit, not provided for in an action plan, of the municipal administration, administrating entities of a municipality and undertakings controlled by a municipality, accept from the municipal controller (the office of the municipal controller) audit reports and conclusions on the results of the carried-out financial and performance audit, when necessary, shall organise consideration of such reports and conclusions at sittings of the municipal committees and council; 8) shall control and supervise activities of heads of institutions and establishments of public administration of a municipality and municipal undertakings, how they implement laws, decisions of the Government and the municipal council; 9) upon having received the consent of the municipal council, shall conclude agreements related to the co-operation of a municipality with State institutions, other municipal institutions and institutions of foreign countries; 10) shall co-ordinate preparation for an opinion poll of local population and organise it. 3. The mayor shall analyze the situation in a municipality and proposed to the municipal council drafts of solutions as well as recommendations for public administration establishments on the following issues: 1) public order and peace; 2) primary personal and public health care, attendance and care of ill persons, invalids and elderly people; 3) general education of children, youth and adults, pre-school education of children, supplementary training of children and youth;   4) general cultural education of the population, promotion of ethnic culture; 5) migration process, organisation of people’s employment, improvement of their qualifications and re-qualification, public works. 4. Decisions of the mayor shall be executed as ordinances. 5. The mayor shall at least once a year account to the municipal council for his activities and to voters for the activities of a municipality. 6. A deputy mayor shall carry out functions established by the municipal council and instructions of the mayor. In the event the mayor cannot carry out his duties, a deputy mayor shall exercise all his duties, except for the powers provided for in subparagraphs 4 and 5 of paragraph 1 of this Article.  The municipal council’s rules of conduct shall regulate activities of the mayor and the procedure for the appointment to act as the mayor. Article 211. Coming into Force of Leg …