Kohaliku omavalitsuse korralduse seadus (KOKS)

§ 1. Scope of regulation of Act

(1) This Act determines the competence, responsibility and organisation of local government and the relations of local authorities (hereinafter local authorities) with one another and with state bodies.

(1¹) The specifications of local government organisation on permanently inhabited small islands are provided for in the Permanently Inhabited Small Islands Act.

(2) The provisions of the Administrative Procedure Act apply to the administrative proceedings prescribed in this Act, taking account of the specifications provided for in this Act.

§ 2. Definition and objective of local government

(1) Local government is the right, authority and duty of the democratically formed bodies of power of a local authority provided for in the Constitution, a rural municipality or city, to independently organise and manage local issues pursuant to law and based on the legitimate needs and interests of the residents of the rural municipality or city, and considering the specific development of the rural municipality or city.

(2) Local government is:

1) based on the administrative division of the territory of the state and its administrative-territorial organisation;

2) exercised by democratically formed legislative and executive bodies and, with regard to local issues, by means of opinion polls or public initiative.

(3) The objective of local government is to contribute to the creation of a high-quality and safe living environment and well-being for the residents of a rural municipality or city that meets their needs, to ensure that the residents of a rural municipality or city have access to high-quality and accessible public services, promote the local business environment, and strengthen regional competitiveness through co-operation with the state as well as among local authorities.

§ 3. Principles of local government

Local government is based on the following principles:

1) the independent and final resolution of local issues, and organisation thereof;

2) guarantee of everyone’s lawful rights and freedoms in a rural municipality or city;

3) observance of law in the performance of functions and duties;

4) the right of the residents of a rural municipality or city to participate in the exercise of local government (hereinafter local governance);

5) responsibility for the performance of functions;

6) transparency and publicity of activities;

7) provision of high-quality and accessible public services on the most favourable terms.

§ 4. Local government bodies

Local government bodies are:

1) rural municipality or city council (hereinafter municipal council) – the representative body of a local authority elected by the residents of the rural municipality or city with the right to vote pursuant to the Municipal Council Election Act;

2) rural municipality or city government (hereinafter municipal administration) – the executive body formed by the municipal council.

§ 5. Rural municipality and city budget and right to impose taxes and duties

(1) Rural municipalities and cities have independent budgets.

(1¹) RThe requirements for the preparation, adoption, implementation, and disclosure of rural municipality and city budgets, as well as for reporting, are provided in the Local Government Financial Management Act.

(2) Municipal councils have the right to impose taxes and duties pursuant to law.

§ 6¹. Functions to be performed jointly by local authorities, competence of performance thereof and financing

(1) The function of local authorities is to jointly plan the development of the county, including its business environment, and to steer the implementation of relevant strategies.

(2) The performance of the function specified in subsection 1 of this section is assigned by the resolutions of all the local authorities of a county to the county or regional association of local authorities, on the basis of a co-operation agreement to one local authority or to a joint administrative agency or joint agency of local authorities or to a non-profit association or foundation established by the local authorities or an association of local authorities (hereinafter co-operation body). The Administrative Co-operation Act does not apply upon grant of authorisation for performance of the functions to the specified non-profit association or foundation.

(3) Unless the local authority of a county has decided through which co-operation body the development of the county is to be planned and steered, the function is performed by a co-operation body through which the performance of the function has been requested by at least two-thirds of the municipal councils of the local authorities of the county, where the total number of residents constitutes at least two-thirds of the total number of the residents of the county and which must include also the local authority constituting the county centre.

(3¹) The minister in charge of the policy sector of regional development may authorise the co-operation body designated in accordance with subsections 2 and 3 of this section to perform an administrative duty in relation to the implementation of a national support programme for regional development established under subsection 1 of § 53¹ of the State Budget Act, without applying subsections 2 and 3 of § 5, subsections 1 and 2 of § 6 and subsection 1 of § 13 of the Administrative Co-operation Act.

(4) Performance of the functions specified in subsection 1 of this section is supported from the state budget.

(5) The procedure for allocating the state subsidy for the performance of a function specified in subsection 1 of this section shall be established by a regulation of the minister in charge of the policy sector.

(6) Performance of local government functions through the joint administrative agency of a rural municipality or city formed on the basis of this Act (hereinafter joint administrative agency) and an agency under the administration of the joint administrative agency of a rural municipality or city (hereinafter joint agency) is considered the performance of the functions by the local authorities that have formed a joint administrative agency or joint agency.

§ 7. Legislation of municipal council and municipal administration

(1) Municipal councils and municipal administrations have the right to issue regulations as legislation of general application.

(2) Municipal councils have the right to adopt resolutions and municipal administrations have the right to pass orders as legislation of specific application.

(3) Legislation passed by a municipal council and a municipal administration is valid in the administrative territory of the local authority.

(3²) The draft municipal council and municipal administration regulations and their explanatory memoranda are subject to the requirements for legislative drafting established by the Government of the Republic for draft Regulations of the Government of the Republic and regulations of ministers.

(4) The municipal council may, by a regulation, establish more detailed procedures for implementing the requirements for legislative drafting for the legislation and explanatory memoranda of draft legislation of the municipal council and municipal administration.

(4¹) The municipal council may authorise the municipal administration to establish more detailed procedures for the application of the requirements for legislative drafting for legislation and explanatory memoranda for draft legislation of the municipal administration, as well as for the processing of draft legislation.

(5) The regulations of municipal councils and municipal administrations are published in the Riigi Teataja in accordance with the procedure provided in the Riigi Teataja Act.

(6) Regulations of municipal councils and municipal administrations generally enter into force on the third day following their publication in the Riigi Teataja, unless the regulation specifies a later date of entry into force or unless other exceptions provided in § 93 of the Administrative Procedure Act apply.

(7) Resolutions of municipal councils and orders of municipal administrations enter into force after they are made public, unless the resolution or order specifies a later date of entry into force.

(8) Regulations and resolutions of a municipal council are signed by the chairman of the municipal council. Regulations and orders of a municipal administration are signed by the rural municipality or city mayor and the rural municipality or city secretary.

(9) Resolutions of municipal councils, orders of municipal administrations and minutes of sessions must be accessible to all persons. Data the disclosure of which is prohibited by law or which are intended solely for internal use by a rural municipality or city administrative agency, joint administrative agency or joint agency, or an agency under its administration are not disclosed.

(10) Legislation and minutes of sessions of municipal councils and municipal administrations are drafted in Estonian. In local authorities where the majority of permanent residents are non-Estonian speakers, minutes of municipal council sessions may, in addition to Estonian language, be also translated into the language of the national minority constituting the majority of the permanent residents of the local authority.

§ 8. Statutes of rural municipality or city

(1) The statutes of a rural municipality or city provide:

1) the procedure for the election of the chairman and deputy chairman of the municipal council;

2) the procedure for formation of the government, the procedure for the formation of the rural municipality or city mayor, the competence of the government;

3) the insignia of the rural municipality or city and the use thereof;

4) the procedure for the formation, restructuring and terminating the activities of the administrative agencies, agencies which are under their administration and the joint administrative agencies and joint agencies of the rural municipality or city;

5) procedure for representing the rural municipality or city;

6) the specific procedure for the adoption and disclosure of rural municipality or city legislation.

(2) The statutes of a rural municipality or a city shall be established by a regulation of the municipal council and, in addition to the provisions of subsection 1 of this section, it may contain other provisions regulating the activities of the rural municipality or city.

§ 10. Rural municipalities and cities as legal persons in public law

(1) Rural municipalities and cities are public legal persons which operate in accordance with the European Charter of Local Self-Government, this Act, other Acts, their statutes, and other legislation.

(2) A local authority is represented by the municipal council, the chairman of the municipal council, the municipal administration and the rural municipality or city mayor or their authorised representatives, within the limits of their competence, on the basis of Acts and the statutes of the rural municipality or city.

§ 14. Use of symbols of local authorities

(1) A local authority may have its own flag, coat of arms, badges of honour, medals of office, honorary titles and other symbols, the procedure for the use of which are provided in the statutes of the rural municipality or city.

(2) Before the approval of the flag or the coat of arms of a local authority, the sketch of the flag or the coat of arms shall be submitted to the State Chancellery for an opinion.

(3) The flag or coat of arms of a local authority shall not be confusingly similar to the flag or coat of arms of another local authority or the flag or coat of arms of another person which is historical or in use. The flag or coat of arms of a local authority shall comply with the requirements for heraldry.

(4) The coat of arms of a local authority may be used on the document forms and seals of the bodies and agencies of the local authority and in other places pursuant to the procedure for the use of the symbols of the local authority provided in the statutes of the rural municipality or city.

(5) The dimensions of a flag of a local authority shall not exceed the dimensions of the national flag.

§ 15. Protection of rights of local authority

(1) A local authority shall not be liquidated and its boundaries or name shall not be altered without hearing the opinion of the rural municipality or city council.

(3) Local authorities have the right of recourse to the courts for the protection of their lawful rights and for the resolution of disputes.

§ 16. Formation of municipal council

(1) Municipal councils are elected by general, uniform and direct elections by secret ballot for a term of four years pursuant to the municipal council Election Act. Voting is secret.

(4) The authority of the new membership of a municipal council and of its members commences, and the authority of the previous membership of the municipal council and of its members terminates, as of the date the election results are announced.

§ 17. Municipal council member

(1) A municipal council member is a person who is elected in accordance with the municipal council Election Act.

(2) Municipal council members shall operate pursuant to law, rural municipality or city legislation and the needs and interests of the residents of the rural municipality or city.

(3) A municipal council has the right to pay remuneration to its members for the participation in the work of the municipal council, including the work of committees formed by the council and other work formats, and compensation for expenses incurred in the performance of tasks assigned to them by the municipal council on the basis of the submitted documents pursuant to the rates and procedure established by the municipal council. If a municipal council member is a Member of the European Parliament or member of the Riigikogu during their term of authority, they are paid no remuneration for the participation in the work of the municipal council, including the work of committees formed by the council and other work formats.

(4) The position of the chairman and deputy chairman of the municipal council may be remunerative based on a resolution of the municipal council. The chairman and deputy chairman of the municipal council working in remunerative positions may be paid only such additional remuneration, compensation or other remuneration or such benefits applied in respect to such persons, which have been provided for and decided by the municipal council in accordance with its established procedure. If the chairman or deputy chairman of the municipal council is a Member of the European Parliament or member of the Riigikogu during their term of authority, they are paid no remuneration for the performance of the duties of the chairman or deputy chairman of the municipal council.

(4¹) The duration of the annual holiday of the chairman and deputy chairman of the municipal council working in remunerative positions is 35 calendar days and the legal provisions regulating holiday as provided in §§ 54 and 59–71 of the Employment Contracts Act are applied in respect to such persons.

(4²) Municipal council members may be sent on official travel pursuant to the procedure established by the municipal council. Travel expenses of municipal council members shall be compensated pursuant to the conditions and the procedure provided for in the Public Service Act.

(5) A municipal council member shall not participate in the preparation, debate and resolution of legislation of specific application in the municipal council with regard to which a procedural restriction extends to him or her pursuant to the provisions of the Anti-corruption Act.

(6) In the case provided in subsection 5 of this section, a municipal council member is required to make a statement concerning their non-participation in the deliberation of the relevant item on the agenda prior to the commencement of the deliberation of the items. A corresponding notation is documented in the minutes of the session. The number of votes required for the decisions specified in subsection 5 of § 45 of this Act is reduced by such municipal council member.

(6¹) The provisions of subsection 5 of this section do not apply to election of persons and approval of a member of the municipal administration.

(6²) A municipal council member who has been elected a rural municipality or city mayor or who has been approved as a member of the municipal administration, must not participate as of the moment of being elected or approval as a member in the deliberation and resolution on adoption of legislation of specific application by which their remuneration or compensation is being determined.

§ 18. Premature termination of authority of municipal council member

(1) The authority of a municipal council member terminates prematurely:

1) if the municipal council is unable to act;

1¹) due to commencement of the authority of the members of the municipal council of a local authority formed by merger in the period between regular elections;

2) due to the resignation of the municipal council member;

3) due to a change in the residence of the person if the residential address of the person with legal effect for the purposes of subsection 1 or 2 of § 65 of the Population Register Act is not in the given rural municipality or city according to the data of the population register;

4) upon loss of the citizenship of Estonia or any other Member State of the European Union;

5) due to the election of the municipal council member to the office of the President of the Republic, the appointment of the municipal council member as the State Secretary, the Auditor General, the Chancellor of Justice, a judge or prosecutor;

8) due to entry into force of a conviction by a court for an intentional criminal offence or in connection with a court judgment which has entered into force and which annuls a resolution of the rural municipality or city election committee concerning the registration of the municipal council member due to their failure to comply with the requirements provided in the Municipal Council Election Act;

9) due to divestment of active legal capacity with regard to the right to vote;

10) due to the death of the municipal council member.

(2) In the case provided in clause 2 of subsection 1 of this section, a municipal council member submits an application, and in the case provided in clauses 3–5, 8 and 9 makes such information immediately known in writing to the rural municipality or city secretary.

(3) A rural municipality or city secretary notifies the rural municipality or city election committee within three working days after becoming aware of the circumstances specified in subsections 1 and 2 of this section.

§ 19. Suspension of authority of municipal council member

(1) The suspension of the authority of a municipal council member means their temporary release from the performance of the tasks of a municipal council member.

(2) The authority of a municipal council member is suspended:

1) if he or she has been elected as the rural municipality or city mayor, been approved as a member of the municipal administration, or been appointed as the rural municipality district or city district elder in the same rural municipality or city;

1¹) for the duration of his or her authority as a member of the Government of the Republic;

1²) if he or she has been appointed as the official of an administrative agency of the same rural municipality or city, or if he or she works at an administrative agency of the same rural municipality or city based on an employment contract;

2) due to the imposition of preventive custody on them for more than three months;

3) on the basis of his or her application within the term indicated therein, which shall not be shorter than three months;

4) if he or she has been absent from council sessions during three consecutive months, taking no account of the months when the council sessions were not held;

5) for the period of time when he or she is in compulsory military service, alternative serviceor reserve service.

(3) The restriction provided in clause 1 of subsection 2 of this section does not apply to rural municipality or city mayors elected by the previous composition, members of the municipal administration approved by the previous composition and rural municipality district or city district elders appointed by the previous composition who are elected to the new composition of the municipal council and who continue their activity until the municipal council approves the new municipal administration to office.

(3¹) If a municipal council member has been elected or appointed to a position that is incompatible with the authority of a municipal council member, except in the case specified in clause 5 of subsection 1 of § 18 of this Act, he or she must, within three working days after the incompatibility appears, notify the rural municipality or city secretary whether he or she wishes to participate in the work of the municipal council or continue working in the position incompatible with the authority of a municipal council member. If a person wishes to continue working in the position incompatible with the authority of a municipal council member or does not notify within the term that he or she wishes to participate in the work of the municipal council, his or her authority as a municipal council member are suspended. If a municipal council member is elected or appointed to a position incompatible with the authority of a municipal council member in the case specified in clause 5 of subsection 1 of § 18 of this Act, the authority of the municipal council member terminates before the end of the term. The rural municipality or city secretary sends a relevant notice to the rural municipality or city election committee within three working days as of becoming aware of this fact.

(3²) A municipal council member whose authority has been suspended on the basis of clause 3 of subsection 2 of this section may submit an application for the extension of the term of suspension of authority by at least three months at a time. In such case, the authority of the municipal council member is not restored in the meantime.

(4) A rural municipality or city secretary sends to the rural municipality or city election committee:

1) in the cases provided in clause 1 of subsection 2 and in subsection 3 of this section, the corresponding legislation of the municipal council within three working days after the adoption thereof;

2) in the case provided in clause 2 of subsection 2 of this section, the corresponding court ruling within three working days after the receipt thereof;

3) in the case provided for in clause 3 of subsection 2 of this section, the corresponding application within three working days;

4) a corresponding notice becoming aware of the circumstances provided in clauses 1¹, 1², 4 and 5 of subsection 2 of this section within three working days.

§ 20. Alternate municipal council member

(1) In the cases provided in §§ 18 and 19 of this Act, a municipal council member is replaced by an alternate municipal council member. An alternate municipal council member is appointed by a resolution of the election committee on the basis of a list of alternate members.

(2) The authority of a municipal council member terminates prematurely upon the occurrence of a legal fact specified in subsection 1 of § 18 of this Act. The authority of an alternative municipal council member commences upon the entry into force of the resolution of the rural municipality or city election committee.

(3) The authority of the member of the municipal council is suspended, and the authority of the alternate member as a municipal council member commences as of the entry into force of the resolution of the rural municipality or city election committee. The suspension of the authority of the member of the municipal council and the appointment of an alternate municipal council member are formulated as a single resolution.

(4) A rural municipality or city election committee makes the resolutions specified in §§ 19 and 20¹ of this Act within five working days after receipt of the document which was the basis of the corresponding resolution and sends them immediately to the persons concerned and to the chairman or deputy chairman of the council.

(5) The alternate member of a municipal council member who is elected in an electoral district is the first candidate of the same political party or election coalition to be registered as an alternate member who stood as a candidate in the same electoral district. If the first alternate municipal council member declines or is unable to participate in the work of the municipal council due to the reasons specified in subsection 1 of § 18 or subsection 2 of § 19 of this Act, the new municipal council member shall be the next candidate who was not elected of the same political party or election coalition and who ran as a candidate in the same electoral district.

(5¹) The alternate member of a municipal council member who is elected on the basis of a compensation mandate is the first candidate of the same political party or election coalition to be registered as an alternate member who stood as a candidate in the city list. If the first alternate municipal council member declines or is unable to participate in the work of the municipal council due to the reasons specified in subsection 1 of § 18 or subsection 2 of § 19 of this Act, the new municipal council member shall be the next candidate who was not elected of the same political party or election coalition and who ran as a candidate in the same city list.

(5²) The rural municipality or city electoral committee shall promptly notify an alternate member of the right to be granted the authority of a municipal council member. An alternate member shall notify the electoral committee in writing within three working days as of the receipt of a notice whether he or she wishes to participate in the work of the municipal council.

(6) An alternate municipal council member who notifies of his or her declination in writing or is unable to participate in the work of the municipal council due to the reasons specified in subsection 1 of § 18 of this Act shall be deleted from the list of alternate members.

(7) If an alternate member is unable to participate in the work of the municipal council for the reasons specified in subsection 2 of § 19 of this Act, they remain on the list of alternate members.

(8) If the member to be replaced ran as an independent candidate or if the same political party or election coalition has no more alternate members in the electoral district, an alternate member designated on the basis of an additional mandate distributed among the political parties and election coalitions and registered by the rural municipality or city election committee shall become a member of the municipal council. If the political parties or election coalitions have no more alternate members in the electoral district, the unelected candidate who received the largest number of votes in the electoral district shall be the municipal council member.

(8¹) If the same political party or election coalition has no more candidates registered as alternate members in an electoral district in Tallinn, the alternate member is the first candidate of the same political party or election coalition to be registered as an alternate member who stood as a candidate in the city list. If the political party or election coalition has no more alternate members registered in the city list, the alternate member who is appointed on the basis of additional mandate distributed among the city lists shall become the municipal council member.

(9) If only independent candidates are in the consolidated list of candidates in an electoral district, the municipal council member shall be the first unelected independent candidate who ran as candidate in the electoral district. If the first unelected independent candidate declines or his or her authority terminates or is suspended, the next unelected independent candidate shall be the municipal council member.

(10) If an independent candidate notifies of his or her declination in writing or is unable to participate in the work of the municipal council due to the reasons specified in subsection 1 of § 18 of this Act, he or she can no longer be designated as municipal council member.

§ 20¹. Restoration of authority of municipal council member

(1) If a municipal council member wants his or her authority to be restored, the municipal council member shall submit a corresponding application to the rural municipality or city secretary who shall forward the application to the rural municipality or city election committee not later than within three working days. The application need not be submitted if the authority of the municipal council member has been suspended on the basis of his or her application within the term indicated within.

(2) Upon restoration of the authority of a municipal council member, the authority of the alternate municipal council member who was last designated to replace a municipal council member on the basis of an additional mandate or from among the candidates of the same political party or election coalition in the electoral district or city list, shall terminate.

(3) If only independent candidates are in the consolidated list of candidates in an electoral district, then upon restoration of the authority of a municipal council member, the authority of the municipal council member who was last designated to replace the municipal council member in the electoral district, shall terminate.

(4) The authority of the member of the municipal council is restored, and the authority of the municipal council member substituting for them is terminated as of the entry into force of the resolution of the rural municipality or city election committee.

§ 22. Competence of municipal council

(1) Resolution of the following issues, among others, is within the competence of a municipal council:

1) adoption of the rural municipality or city budget, taking into account the exceptions provided in the Local Government Financial Management Act;

2) approval of the annual report;

3) imposition of local taxes;

4) imposition of duties;

5) establishing the principles for granting support and providing services, as well as the bases for charging fees for the use of services;

6) establishment of the principles for the administration of the rural municipality or city property;

7) approval of the rural municipality or city development plans and budget strategies;

8) assumption of long-term debt obligations, granting and guaranteeing of loans, and encumbering of immovables to secure debt obligations in accordance with the procedures provided in the Local Government Financial Management Act, and establishing of the relevant principles;

9) approval of the statutes of the rural municipality or city;

10) initiation of and application for alteration of administrative-territorial organisation and boundaries and changes to names of administrative units and provision of opinion with regard thereto;

11) formation and liquidation of rural municipality districts, city districts or other regional representative bodies, determination of their competence, and approval of their statutes or statute;

12) the determination of the number of members of the next membership of the municipal council;

13) determination of the number and boundaries of electoral districts, and determination of the number of mandates in each electoral district in accordance with the Municipal Council Election Act;

14) the election of the chairman, deputy chairman or deputy chairmen of the municipal council;

15) the election of the rural municipality or city mayor;

16) approval of the number of members of the municipal administration;

17) approval and release from office of the members of the municipal administration;

18) expression of no confidence in the chairman or deputy chairman of the municipal council, a chairman or deputy chairman of a municipal council committee, a member of the revision committee, the municipal administration, the rural municipality or city mayor, or a member of the municipal administration;

19) the determination of remuneration, additional remuneration, compensations, benefits and advantages to the rural municipality or city mayor and members of the municipal administration working in remunerative positions, and the resolution on payment of compensation to other members of the municipal administration and the determination of the amount of compensation to be paid;

20) the formation and liquidation of municipal council committees, election of chairmen and deputy chairmen thereto from among municipal council members, and approval of the membership of such committees;

21) determination of the remuneration and compensation of the chairman and deputy chairman of the municipal council;

22) determination of the amount and procedure for payment of remuneration to municipal council members for the participation in the work of the municipal council and for compensation for expenses incurred in the performance of tasks assigned to them by the municipal council;

24) foundation, merger, division and dissolution of companies and foundations of the rural municipality or city;

25) the resolution of the participation and termination of participation of the rural municipality or city in a company, foundation or non-profit association;

25¹) appointment of representatives of the rural municipality or city and their deputies to the general meeting of an association of local authorities and their removal therefrom;

34) foundation and restructuring of rural municipality or city administrative agencies, joint administrative agencies and joint agencies or agencies under the administration of rural municipality or city administrative agencies, terminating their activities and establishment of the statutes of such agencies;

35) the establishment of social guarantees for rural municipality or city officials and employees;

36) establishment of the structure and salary guide of rural municipality or city administrative agencies and joint administrative agencies;

36¹) establishment of rules for excavation operations and property maintenance rules in order to ensure maintenance which may impose duties on natural and legal persons in accordance with § 36 of this Act;

36²) establishment of rules for keeping pet animals;

36⁷) the establishment of the requirements and procedure for organising commerce on land which is in public use;

36⁸) determining the amount of a waste transport fee and establishing the procedure for payment thereof in the case of waste transport organised on the basis of subsection 1 of § 66¹ of the Waste Act;

36⁹) determining the amount of the waste transport fee and establishing the procedure for payment thereof where the local authority is not obliged to organise waste transport on the basis of subsection 2 of § 135 of the Waste Act;

37) other issues placed within the competence of the municipal council by law.

(2) The issues placed within the competence of local government, local authority or local government body by legislation are resolved in the name of the local authority by the municipal council that has the right to authorise the municipal administration or rural municipality district or city district representative body, other regional representative body, administrative agency, its structural unit or official to resolve such issues, unless it is prohibited by law.

(2¹) The municipal council may not authorise any other local government body or agency to perform a function assigned to its competence by law, unless otherwise provided by law.

(2²) The authorisation referred to in subsection 2 of this section is not necessary for resolving issues which, by their nature, are functions to be performed by executive power and which can be performed by the municipal administration or a rural municipal or city administrative agency.

(2³) The municipal council grants the authorisation specified in subsection 2 of this section for resolving an unspecified number of cases by a regulation. If the issue concerns the resolution of a one-time issue, an authorisation for its resolution may be granted to the municipal administration by a municipal council resolution.

(3) The municipal council may delegate to the municipal administration the right to make changes to the structure of an administrative agency within the limits of the budget established by the municipal council.

§ 22¹. Rules for keeping pet animals

(1) The municipal council may, in the rules established pursuant to clause 36² of subsection 1 of § 22 of this Act, provide requirements for keeping pet animals within the administrative territory of the relevant local authority to ensure property maintenance and public order within the meaning of property maintenance rules and Law Enforcement Act, in order to prevent threats to the life and health of persons in the territory of the local authority and damage to property.

(2) The municipal council may, in the rules specified in subsection 1 of this section, establish specific requirements regarding the enclosure of any area owned or used by a pet animal keeper where the pet animal is kept, in order to prevent the pet animal from straying from that territory under subsection 1 of § 37 of the Veterinary Act.

(3) The municipal council may, in the rules specified in subsection 1 of this section, specify the general requirements for behaviour in public places provided in § 55 of the Law Enforcement Act by designating public places within the territory of the local authority where pet animals are not permitted to be present or to stay without a leash, a carrier, muzzles, or to roam freely.

(4) The municipal council may, in the rules specified in subsection 1 of this section, designate public places within the territory of the local authority where pet animals may be allowed to roam freely.

§ 25. Obligation of employers to municipal council members

An employer is obligated to allow a municipal council member to participate in municipal council sessions, meetings of municipal council committees and other working bodies and to perform other tasks of the municipal council member.

§ 26. Right of municipal council members to obtain information

(1) Municipal council members have the right to obtain legislation, documentation and other information of the municipal council and municipal administration, as well as a response to their written inquiry, which is necessary for the performance of their tasks as a municipal council member except for data the issue of which is prohibited by law.

(2) A municipal council member has the right receive a response to their request for information and to a question submitted by them in writing to the municipal administration or a rural municipality or city administrative agency within ten working days after the date of submission of the request for information or the question. In special cases, depending on the complexity or large volume of the question, the term for responding may be extended to up to 20 business days. The municipal council member is notified of the extension of the term for responding and the reason for it.

(3) Responding to a request for information or a written question from a municipal council member is not subject to the provisions of the Public Information Act regarding responses to requests for information, as well as the Response to Memoranda and Requests for Explanations and Submission of Collective Proposals Act.

§ 26¹. Restriction on disclosure of information that has become known to municipal council member

A municipal council member may not, during the performance of their tasks, during a suspension of their authority, or after the termination of their authority, disclose any business secrets, information concerning the family or private lives of others, or any other information designated for internal use only that has become known to them in the course of performing their tasks as a municipal council member.

§ 27. Election of rural municipality or city mayor

A rural municipality or city mayor is elected by the municipal council under the conditions and pursuant to the procedure provided in this Act and the statutes of the rural municipality or city.

§ 28. Right of rural municipality or city mayor to form government

(1) A rural municipality or city mayor has the authority to form a municipal administration as of their election.

(2) A detailed procedure for the formation of the government shall be provided for in the statutes of the rural municipality or city.

(3) A rural municipality or city mayor obtains the authority prescribed by law and the statutes of the rural municipality or city as of the day following the date the approval of the municipal administration to office.

§ 29. Term of office of government

(1) A municipal administration obtains authority as of the day following the date of its approval to office by the municipal council.

(2) A government shall submit its resignation at the first session of a new membership of the municipal council.

(3) After submitting its resignation, a municipal administration continues to perform its functions and its authority remains in force until the day following the day of approval to office of a new municipal administration.

§ 30. Competence of municipal administration

(1) A municipal administration:

1) prepares issues to be discussed in the municipal council based on the position of the government or municipal council resolutions;

2) resolves and manages local issues which are assigned to it by municipal council regulations or resolutions;

3) resolves and manages local issues which are not within the competence of the municipal council;

4) resolves issues, the resolution of which has been delegated to the government on the basis of subsection 2 of § 22 of this Act, or authorises the resolution of these issues for performance to a rural municipality or city administrative agency, structural unit or official of an administrative agency.

4¹) approves, upon the recommendation of the rural municipality or city mayor, the head of an administrative agency or of an agency under the administration of an administrative agency to office.

(3) A municipal administration establishes, by an order, the prices of services provided by rural municipality or city agencies, taking account of the provisions of subsection 3 of § 5 of the Administrative Procedure Act.

(4) In the case specified in subsection 3 of this section, the municipal administration may authorise a rural municipality or city administrative agency to establish the prices of services provided by agencies which are under the administration of the rural municipality or city administrative agency. If the prices of services are established by a rural municipality or city administrative agency on the basis of an authorisation, the head of the respective administrative agency has the right to issue the relevant legislation.

§ 31¹. Processing of personal data for the purposes of surveys, involvement, analysis, and research

(1) Rural municipality or city administrative agencies and agencies under the administration of rural municipality or city administrative agencies have the right to conduct satisfaction and feedback surveys for the purpose of development of services and promotion of innovation, and involve the residents of the rural municipality and city in the development of data-driven local policy, including the preparation of development documents and legislation and the assessment of their impact. In order to conduct surveys and form a sample for the purpose of involving residents, and to contact the persons included in the sample, the rural municipality or city administrative agencies and agencies under the administration of rural municipality or city administrative agencies have the right to make inquiries in the population register to obtain the given names and surnames, personal identification codes, places of residence and contact details, and native language of individuals.

(2) Responding to a survey or participating in an involvement project is voluntary. Personal data obtained during a survey or involvement project will be processed on the basis of the consent of the individual.

(3) Rural municipality or city administrative agencies and agencies under the administration of rural municipality or city administrative agencies have the right to conduct analyses and studies for the purpose of policy development. If, in order to perform an analysis or study, it is necessary to obtain personal data, including pseudonymised data, from the databases of another controller or processor, the Data Protection Inspectorate assesses, before submitting a request to the controller of the database, the existence of public interest, the purpose of the data processing, the minimal nature of the data set, and the need for retention of data. The decision to release personal data from the database is made by the controller of the database, taking into account the assessment of the Data Protection Inspectorate.

§ 31². Right to obtain personal data for verifying the rights of residents of rural municipality and city to be involved and to participate

In order to verify the rights of the residents of a rural municipality and city to participate and be involved as stipulated in this Act and other acts, a local authority has the right to obtain the given name and surname, personal identification code, place of residence of an individual, and data on divestment of an individual of active legal capacity with regard to the right to vote from the population register. In the case of a person who is not a citizen of Estonia or another European Union member state, the local authority has the right to obtain also the data about the long-term resident’s residence permit or permanent right of residence in Estonia. A local authority has the right to obtain the data specified in subsection 1¹ of § 32 of this Act from the database of prisoners, persons held in custody, detained persons and probationers concerning the sentence served by the resident of the rural municipality or city in a custodial institution.

§ 31³. Rural municipality and city administrative agencies and agencies under their administration

(1) A municipal council may form, within a rural municipality or city, administrative agencies that exercise official authority within the meaning of subsection 3 of § 6 of the Civil Service Act to perform functions of executive power that do not require the authorisation of the municipal administration as a collegial decision-making body. Local authorities may also form joint agencies in co-operation with one another in accordance with the procedure provided in §§ 62¹–62³ of this Act. Such agencies are not legal entities.

(2) A rural municipality or city administrative agency, including a rural municipality or city government as an administrative agency, performs, through its structural units, the administrative tasks of executive power assigned to the administrative agency and municipal administration within the limits of the authorisation and competence granted by Acts and other legislation, except for the adoption of municipal administration regulations and orders, and serves the municipal council, the municipal administration, and their working bodies.

(3) For the provision of services, agencies under the administration of a rural municipality or city administrative agency or joint agencies of rural municipalities and cities, which are not legal entities and which do not exercise official authority, may be formed in a local authority.

(4) The municipal council decides on the formation and termination of the activities of an agency under the administration of a rural municipality or city administrative agency. The adoption of the statutes of the agency under its administration, as well as the approval and amendment of its structure and composition, are carried out in accordance with the procedure established by the municipal council.

(5) Rural municipality and city administrative agencies and agencies under the administration of administrative agencies are registered in the state register of state and local government agencies.

(6) Rural municipality and city administrative agencies and agencies under the administration of administrative agencies represent the rural municipality or city as a public legal person in accordance with the procedure provided in the statutes of the rural municipality or city or other relevant legislation.

§ 32. Right to local initiative

(1) Not less than one percent of the residents of a rural municipality or city, however not less than five residents of the rural municipality or city who are at least 16 years of age have the right to present public initiatives on local issues for the adoption, amendment, or repeal of legislation of the municipal council or municipal administration or for the resolution of other local issues (hereinafter in this section referred to as initiative).

(1¹) A resident of a rural municipality or city within the meaning of this section and § 32¹ of this Act is a person who is at least 16 years of age, whose residential address according to the population register is located in the territory of the relevant rural municipality or city, whose residential address according to the population register is located in that rural municipality or city, who has not been divested of active legal capacity with regard to the right to vote, and who is not serving a sentence in custodial institution after being convicted of a criminal offence by a court. In addition to Estonian citizens and citizens of the European Union, a foreign national, i.e. a person who is not an Estonian citizen or a citizen of another Member State of the European Union but who meets the above requirements and resides in Estonia on the basis of a long-term resident’s residence permit or permanent right of residence, is also considered a resident of a rural municipality or city.

(2) The initiative is presented to the municipal administration in writing and is accompanied by a list of the residents of a rural municipality or city who have signed in support of the initiative, together with their personal identification codes. The initiative must indicate who is the representative of the initiators. The proposal presented in the initiative must be justified. The initiatives presented are made public.

(2¹) The initiative is taken up for deliberation and the representatives of the initiators are informed of further action related to the initiative within three months after the presentation of the initiative. If the initiated issue falls within the competence of the municipal council, the municipal administration submits it together with its opinion to the municipal council for resolution within one month of the presentation of the initiative. The time limit of three months for processing the initiative may be extended by up to three months with good reason, while notifying the representative of the initiators of the new time limit and the reasons for the extension.

(2²) If an initiative that meets the conditions set out in subsections 1 and 2 of this section requests an alteration of the boundaries of an administrative unit by assignment of a territorial area belonging to one administrative unit to another administrative unit, the municipal administration organises, before submitting the draft alteration of the boundaries of the administrative unit to the municipal council for deliberation, the ascertaining of the opinion of the residents specified in subsection 7 of § 7 of the Territory of Estonia Administrative Division Act in the relevant territorial area in accordance with the procedure established on the basis of subsection 8 of the same section.

(2³) In the case provided in subsection 2² of this section, the municipal administration submits a draft alteration of the boundaries of the administrative unit, together with the results of the opinion poll of the residents and its own opinion, to the municipal council for deliberation within two months of the presentation of the initiative. The municipal council takes the initiative up for deliberation within two months after the municipal administration submitted the relevant draft to the municipal council.

(3) A representative of the initiators set out in the initiative has the right to participate in the deliberation of the initiative in the municipal council or municipal administration.

(4) The rejection of an initiative must be justified to the representative of the initiators set out in the initiative, and the justification must be recorded in the minutes of the municipal council or municipal administration session.

§ 32¹. Local opinion poll

(1) The municipal council may decide to hold an opinion poll on an important local issue within the competence of the local authority in the territory or territorial area of the given local authority. An opinion poll may be held at the initiative of the municipal council or residents in order to ascertain the opinion of the residents of the rural municipality or city.

(2) Not less than ten percent of the residents of a rural municipality or city within the meaning of subsection 1¹ of § 32 of this Act, however not less than 20 residents have the right to submit an initiative to the municipal administration to hold an opinion poll on an important local issue.

(3) An opinion poll cannot be held on the initiative of residents regarding the budget of a rural municipality or city, except for participatory budget, also regarding taxes and benefits deriving from law and fees in public law, recruitment for rural municipality or city offices or jobs, salaries and other issues related to service relationships, and issues that are contrary to the law.

(4) The municipal administration assesses the legality of a proposal to hold an opinion poll and its compliance with the conditions set out in subsections 2, 3, and 8 of this section. If the proposal to hold an opinion poll does not meet the above conditions, the relevant reasons are presented to the representative of the persons who presented the proposal to hold an opinion poll, and the opinion poll procedure is terminated.

(5) When holding an opinion poll on a proposal presented as a local initiative pursuant to § 32 of this Act, the municipal council has the right to formulate a precise question in order to ascertain the opinion of the residents.

(6) The wording of the question to be submitted to an opinion poll, as specified by the local authority in terms of language and rules of legislative drafting, must be agreed upon with the representative of the persons who presented the proposal to hold an opinion poll.

(7) An opinion poll is held within six months of the presentation of a proposal to hold the opinion poll on the initiative of the residents to the municipal administration.

(8) All residents of a rural municipality or city who live in the territory or territorial area of the given local authority according to the population register and who meet the requirements of subsection 1¹ of § 32 of this Act may participate in an opinion poll.

(9) The municipal administration gives notice about holding an opinion poll and explains the opinion poll procedure on the website of the rural municipality or city and in a newspaper with at least local circulation.

(10) The result of an opinion poll is of an advisory nature to the municipal council and municipal administration.

(11) When confirming the results of an opinion poll, the time and place of the opinion poll, the number of residents aged 16 or older in the administrative unit, the number of residents who participated in the poll, and the results of the poll must be noted.

(12) The specific procedure for holding an opinion poll is established by a regulation of the municipal council.

(13) Based on the results of the opinion poll, the implementation of changes and initiatives desired by residents, if this was the preferred solution in the opinion poll, is decided by the municipal council or municipal administration, depending on their competence. Within three months of the opinion poll, it must be disclosed on the website of the rural municipality or city what the municipal council or municipal administration has decided regarding the implementation of the solution preferred in the opinion poll.

(14) If the municipal council or municipal administration does not support the solution preferred in the opinion poll, the relevant justification is entered in the minutes of the session of the municipal council or municipal administration at which the implementation of the results of the opinion poll was deliberated.

§ 33. Application for amendments to legislation of municipal council and municipal administration

(1) Everyone has the right to apply to a rural municipality or city government for the amendment or repeal of legislation passed by the rural municipality or city government if such legislation unlawfully restricts the rights of the applicant.

§ 34. Administration of rural municipality and city property

(1) Rural municipality and city property is the property owned by the local authority.

(1¹) A local authority must ensure that the rural municipality and city property is used in a purposeful, prudent, and economical manner.

(2) The municipal council establishes the bases and procedures for the administration of rural municipality and city property by a regulation, by which it may authorise the municipal administration to establish more specific conditions and procedural requirements for the administration of property.

(3) A local authority may transfer an immovable which has been transferred into its ownership without charge by the state if such immovable ceases to be necessary or has become unsuitable for the performance of the functions of the local authority.

(3¹) Before the transfer of an immovable specified in subsection 3 of this section or establishment of a right of superficies thereon, the local authority ascertains whether the property has utility for the State pursuant to subsection 1¹ of § 33 of the State Assets Act.

(4) A local authority has the right of pre-emption upon the transfer of a construction work located within its administrative territory by private law persons if such construction work was, in whole or in part, used as an educational, health care, cultural or child care institution for not less than one year prior to the transfer. Otherwise, the provisions of the Law of Property Act apply to the right of pre-emption.

§ 35. Economic activities and participation in legal persons

(1) The conditions and procedures for participation in private law legal persons by a local authority are established by a municipal council regulation, taking into account the requirements arising from this Act and other legislation.

(2) A local authority may be a partner or shareholder in a company, found foundations, and be a member of a commercial association or a non-profit association if this is necessary for the performance of the local government functions. The decision on the foundation and participation must specify the purpose of the foundation or participation and the local government function that needs to be performed through the company, foundation, commercial association or non-profit association. A local authority may only be a member of a commercial association if the member of the association is not personally liable for the obligations of the association.

(3) Where a rural municipality or city is the sole founder, sole member or sole shareholder of a foundation, private limited company, or public limited company, the municipal council decides on its foundation, merger, division, transformation, and dissolution, as well as on the approval of the articles of association in the case of its foundation. The municipal administration exercises the other post-foundation rights of the founder, partner, or shareholder of a foundation, private limited company, or public limited company, and also appoints the members of the supervisory board. In the absence of a supervisory board, the municipal administration appoints the members of the management board.

(3¹) The following persons may not be members of managing bodies of foundations, commercial associations or non-profit associations of which the rural municipality or city is the founder, and of private limited companies and public limited companies of which the rural municipality or city is the shareholder, and of units under the control of the rural municipality or city for the purposes of clause 9 of § 2 of the Local Government Financial Management Act:

1) a person whose act or omission has led to a person’s bankruptcy;

2) a person whose wrongful act or omission has led to the activity licence issued to a legal person being declared invalid;

3) a person who is subjected to a prohibition on business;

4) a person whose wrongful act or omission has caused damages to a legal person;

5) a person who has been punished for an economic criminal offence, criminal official misconduct or a criminal offence against property;

6) a person who has significant business interests with the legal person in private law expressed, inter alia, in the possession of a significant holding in this legal person for the purposes of § 9 of the Securities Market Act or membership of the managing bodies of such company that is a significant seller or purchaser of the goods or provider or customer of the services of that legal person in private law.

(3²) The restrictions referred to in clauses 1–4 of subsection 3¹ of this section apply for five years following the declaration of bankruptcy, the revocation of an activity license, the expiration of a prohibition on business, or the compensation of damage. The prohibition provided in clause 5 of subsection 3¹ of this section does not apply to persons whose criminal record has been deleted from the criminal records database.

(3³) Where a rural municipality or city is the sole founder, sole member or sole shareholder of a foundation, private limited company, or public limited company of the rural municipality or city, the municipal council may, by a regulation, establish additional conditions and procedures for the election of members of the managing body, membership in the managing body, and remuneration of members of the managing body.

(3⁴) The municipal council may authorise the municipal administration to establish the conditions and procedures provided in subsection 3³ of this section.

(4) If a foundation has several founders or if other partners or shareholders in addition to a city or rural municipality participate in a company, or if a rural municipality or city is a member of a commercial association or non-profit association, participation in and termination thereof are decided by the municipal council. Otherwise the rights of a partner, shareholder, founder or member are exercised by the municipal administration or by a person appointed by the municipal administration.

(4¹) If a rural municipality or city that has founded a foundation merges and the legal succession of a local authority transfers to a local authority formed as the result of alteration of administrative-territorial organisation, the provisions of subsection 5 of § 5 of the Foundations Act do not apply and the founder’s rights in the foundation transfer to the local authority formed as the result of alteration of administrative-territorial organisation.

(4²) If a rural municipality or city which is a member of a non-profit association merges and the legal succession of a local authority transfers to a local authority formed as the result of alteration of administrative-territorial organisation, the provisions of subsection 2 of § 14 of the Non-profit Associations Act do not apply and the membership right transfers, in case of a merger, to the formed local authority.

§ 36. Imposition of taxes and duties

(1) Local taxes and amendments to tax rates are established prior to the adoption of a rural municipality or city budget or supplementary budget.

(2) A duty is an obligation which is imposed on natural or legal persons pursuant to law by a municipal council regulation for the performance of mandatory work for the fulfilment of the property maintenance rules established on the territory of the rural municipality or city.

(3) Duties may be imposed on a natural or legal person pursuant to law to ensure compliance with the property maintenance rules on the territory of immovables in their ownership or possession, or any other territory in their use, and on public lands directly bordering such territories.

(4) When imposing a duty, the nature and scope of the duty, the conditions and procedure for fulfilling the duty, the procedure for supervising the fulfilment of the duty, and, in the case provided in subsection 5 of this section, the basis and procedure for calculating the cost of the work necessary to fulfil the duty are established by a municipal council regulation.

(5) A person with whom the fulfilment of a duty rests, may have another person fulfil such duty at their expense. Upon a reasoned request of a person, a municipal council has the right to allow the person to pay for the fulfilment of the duty in money, which must be used for the fulfilment of such duty. Upon grant of the corresponding permission by the municipal council, the cost of work necessary for the fulfilment of the duty is specified pursuant to the procedure established by the municipal council regulation specified in subsection 4 of this section.

(6) The fulfilment of duties is supervised by the municipal administration.

(7) Duties shall not be substituted by taxes which accrue to the local budget.

(8) Taxes, fines, service charges, fees or financial obligations by any other name shall not be imposed as duties.

(9) Duties shall not be the object of a contract.

§ 37. Principles for planning of development

(1) Rural municipalities and cities must have a development plan, a budget strategy, and a comprehensive plan that are consistent with one another and serve as the basis for integrating and coordinating development across various areas of life.

(2) A development plan is prepared regarding a rural municipality or city and it stipulates at least the following:

1) long-term directions and needs in the economy, entrepreneurship, the social and natural environment, population and public health, as well as in the fields of education, culture, youth, and the elderly;

2) an analysis of the current status of problems and opportunities by areas of activity, unless the analysis of the current status of the area of activity is included in a supplementary development plan;

3) strategic objectives of areas of activity together with the effect to be achieved until the end of the development plan period;

4) the courses of action necessary to achieve the strategic objectives until the end of the development plan period.

(2¹) The development priorities agreed upon during the merger of local authorities, including changes in provision of services and investments, are also set forth in the development plan and budget strategy.

(3) A local authority may prepare a supplementary development plan which is consistent with the development plan of the rural municipality or city:

1) regarding a part of the territory of a rural municipality or city;

2) for the development of several rural municipalities or cities or parts of their territory, based on an agreement, as a joint development plan;

3) for the development of an area of activity, including for its joint development by several rural municipalities or cities.

(4¹) When preparing a development plan and supplementary development plans of a rural municipality or city, the directions of the county development strategy are taken into account.

(5) The preparation of a development plan and supplementary development plans of a rural municipality or city must be based on the objectives of the national long-term development strategy and take into account other directions in the strategic and spatial development of the state.

§ 37¹. Relationships between development plan, budget strategy and budget

(1) A budget strategy is a financial plan together with explanations arising from a development plan, which constitutes a part of the development plan or an independent document related to the development plan. The requirements of a budget strategy shall be provided for in the Local Government Financial Management Act.

(2) The development plan and the budget strategy provide the basis for the preparation of the rural municipality or city budget, assumption of long-term obligations, carrying out of transactions related to property, planning of investments and applying for support for investments.

(3) If the development plan is amended and this is accompanied by an impact on the budget, the budget strategy shall be brought into conformity with the development plan.

§ 37². Preparation, processing, adoption and publication of development plan and budget strategy

(1) A municipal council establishes, by a regulation, the procedure for the preparation of the development plan and budget strategy.

(2) A municipal council may authorise a municipal administration to establish, by a regulation, the procedure for the preparation of the development plan and budget strategy.

(3) The development plan and budget strategy shall comprise as at 30 November of each year at least four coming budgetary years.

(4) A municipal administration prepares a draft development plan and budget strategy and submits these for adoption to a municipal council.

(4¹) If a rural municipality district or city district has been formed in a rural municipality or city, a draft development plan and budget strategy are submitted for forming a position and making proposals to the rural municipality district or city district representative body (hereinafter rural municipality district or city district assembly).

(5) A municipal administration organises the involvement of all interested persons in the preparation of a development plan and budget strategy through public consultations.

(6) A municipal administration publishes the draft development plan and budget strategy on the website of the rural municipality or city for at least two weeks.

(6¹) Written proposals submitted during the public disclosure and public consultation of the draft development plan and budget strategy are published on the website of the rural municipality or city prior to the adoption of the development plan and budget strategy. Based on the results of the public consultation, necessary amendments are made to the draft where justified.

(7) A municipal council approves the development plan and budget strategy by a regulation no later than by the due date specified in subsection 3 of this section. The development plan and budget strategy must be adopted prior to the adoption of the budget for the coming year.

(8) The development plan and budget strategy, and the minutes of municipal council sessions and meetings of municipal council committees concerning the processing of the development plan and budget strategy are published on the website of the rural municipality or city within seven working days after the adoption of the development plan and budget strategy.

§ 37³. County development strategy

(1) A county must have a development strategy on the basis of which the development of the county is jointly planned and directed in accordance with subsection 1 of § 61 of this Act, and which sets out the necessary strategic development priorities and activities planned for this purpose. The development strategy serves as the basis for planning common investments by local authorities that affect all local authorities in the county and for applying for support for such investments. Instead of a county development strategy, the local authorities may, on the basis of an agreement, prepare a regional development strategy with respect to the territory of several counties.

(2) The county development strategy sets out only those development priorities and activities that extend beyond the administrative territory of a single local authority and have a clear connection to other local authorities.

(3) A development strategy is prepared with respect to a county and it shall stipulate at least the following:

1) long-term directions in and needs for the economic development, including the development of the business environment, as well as the social, cultural, demographic, and health development;

2) analysis of the current status by areas of activity, which includes the analysis of the problems and the existing opportunities in each area;

3) strategic objectives which reflect the effect sought and which achievement can be measured or estimated;

4) sets of activities necessary for the performance of the strategic objectives until the end of the development strategy period;

5) spatial location of the activities necessary for the performance of the strategic objectives.

(4) In addition to the development strategy specified in subsection 1 of this section, local authorities within the county may prepare a supplementary development strategy for the development of a specific area of activity.

(5) The additional and regional development strategy specified in subsections 1 and 4 of this section and the county development strategy (hereinafter jointly also county development strategy) shall be consistent.

(6) The county development strategy shall take into account the county plan. The county development strategy provides the basis for preparation of a comprehensive plan.

(7) A comprehensive plan covering the territory of several rural municipalities or cities pursuant to the procedure provided for in the Spatial Planning Act may be prepared for the implementation of the county development strategy, including the choice of the spatial location of the activities necessary for the performance of the strategic objectives.

(8) If the local authorities have agreed on the preparation of a regional development strategy which meets the requirements provided in subsections 1, 2, 3 and 10 of this section, the relevant local authorities need not prepare a separate county development strategy.

(9) If a county has only one local authority, a county development strategy need not be prepared, if the development plan of the local authority complies with the requirements for the county development strategy set out in this section.

(10) The national long-term development strategy and sectoral development plans are taken into account when preparing the county development strategy, and it is described how the county development strategy will contribute to achieving the goals set out in the national long-term development strategy and sectoral development plans and to addressing development needs.

(11) The development objectives planned and the sets of activities recorded in a county development strategy are taken into account in the grant of case-by-case support to local authorities from the state budget, planning of state investments and changing the availability of the services provided by state agencies in the county.

§ 37⁴. Preparation, processing, adoption and publication of county development strategy

(1) A county development strategy is approved no later than on 31 March and it includes at least four coming budgetary years. The development strategy is reviewed and updated at least once every four years.

(2) A county development strategy must have an action plan or sectoral action plans, which need not include the entire period of validity of the development strategy. The action plan of the county development strategy must be in compliance with the budget strategies of the local authorities of the county.

(3) The draft county development strategy is prepared by a co-operation body designated by the local authorities and specified in subsection 2 of § 6¹ of this Act, and the draft is submitted for approval to the relevant municipal councils.

(4) A municipal administration organises or authorises a co-operation body to organise the involvement of all interested persons in the preparation of a draft county development strategy by public consultations.

(5) A municipal administration publishes the draft county development strategy on the website of the rural municipality or city, and a co-operation body publishes it on the website of the co-operation body for at least two weeks.

(5¹) Written proposals submitted during the public disclosure and public consultations of the draft county development strategy are published on the websites of the rural municipalities or cities, or a link to the website of the co-operation body is added thereto, through which the information is available prior to the adoption of the development strategy. Based on the results of the consultations, necessary amendments are made to the draft where justified.

(6) A county development strategy is deemed to be approved and enters into force after at least two-thirds of the municipal councils of the local authorities of the county, where the total number of residents constitutes at least two-thirds of the total number of the residents of the county and which must include also the local authority constituting the county centre, have approved the strategy by a regulation no later than on 15 January. A local authority is considered the country centre if it is designated as such in the county plan.

(6¹) Local authorities may agree that the action plan of the county development strategy is approved by the co-operation body referred to in subsection 2 of § 6¹ of this Act.

(7) The minutes of the meetings of a co-operation body and municipal council committees that prepared and processed a county development strategy, and minutes of the sessions of the municipal council and the information regarding the processing of the county development strategy are published on the websites of the rural municipalities or cities within seven working days after the adoption of the development strategy.

(8) The specific procedure for preparation, processing and adoption of a county development strategy and the conditions of adoption may be established by a regulation of the minister in charge of the policy sector.

§ 40. Work format

(1) Municipal councils and municipal administrations conduct work in sessions. Municipal council and municipal administration committees conduct work in meetings.

(2) Sessions and meetings may also be held using electronic means, subject to the requirements provided in § 33¹ of the Act on the General Part of the Civil Code.

(3) A municipal council and municipal administration may also provide for other work formats in their legislation.

§ 41. Use of language in local governments

(1) The working language of local governments is Estonian. Everyone has the right to address a local government and its officials in Estonian and to receive responses in Estonian.

(2) The sessions of municipal councils and municipal administrations are held in Estonian.

(3) The use of foreign languages including languages of national minorities shall be provided for in the Language Act. The permission granted on the proposal of the municipal council pursuant to § 11 of the Language Act to use the language of the majority of the permanent residents of the local authority as the internal working language of the local government shall be valid until the term of office of the corresponding municipal council expires.

(4) If a local authority has been granted, pursuant to subsection 3 of this section, the permission to use the language of the national minority constituting the majority of the permanent residents of the local authority alongside Estonian as the internal working language, the municipal council and the municipal administration may decide to translate part or whole of the sessions of the municipal council and municipal administration into the language of the national minority.

§ 42. Chairman of municipal council

(1) The chairman of a municipal council:

1) manages the work of the municipal council, convenes and chairs the sessions of the municipal council and preparation of the issues to be deliberated at the session;

2) represents the local authority and its municipal council in accordance with the competence granted by law, the statutes or other legislation of the rural municipality or city, or by the municipal council;

3) signs legislation passed by the municipal council and other municipal council documentation;

3¹) issues directives for the organisation of the internal operations of the municipal council;

4) performs other tasks assigned to them pursuant to law and the legislation of the municipal council.

(2) The authority of the chairman and deputy chairman of a municipal council terminates simultaneously with the suspension or premature termination of their authority as members of the municipal council.

§ 43. Convention of municipal council sessions

(1) Municipal council sessions are convened by the chairman or deputy chairman or, in the absence of the deputy chairman, by the eldest member of the municipal council pursuant to the procedure established by the municipal council. The first municipal council session is convened by the chairman of the rural municipality or city election committee not later than on the seventh day after the declaration of the election results. Compliance with the requirement prescribed in subsection 3 of this section to communicate a notice of the session to municipal council members at least four days in advance and to send the session materials along with the notice is not necessary upon the sending of notices of the first municipal council session. The same procedure also applies upon convening the subsequent municipal council sessions if the chairman of the municipal council is not elected at the first session.

(2¹) Pursuant to subsection 2 of § 52 of this Act, the chairman of the rural municipality or city election committee convenes the municipal council session not later than on the seventh day after the appointment of alternate members. Compliance with the requirements provided in subsection 3 of this section is not necessary upon the sending of a notice.

(3) When a municipal council meeting is convened, the notice of the meeting is communicated to the municipal council members at least four days prior to the meeting; the notice specifies the time, place, and work format of the meeting, as well as the issues to be deliberated. The meeting materials are made available to the municipal council members along with the notice.

(4) The chairman or deputy chairman of a municipal council convenes a municipal council session on the proposal of the municipal administration or on the proposal of not less than one fourth of the composition of the municipal council for the deliberation of issues raised by them. The time of the session is determined by the chairman or deputy chairman of the municipal council, taking account of the provisions of the rules of procedure of the municipal council. A municipal council session must be held within one month of the date the proposal is submitted. If the chairman or deputy chairman of the municipal council does not convene a municipal council session within one month, a municipal council member agreed upon by at least one-fourth of the composition of the municipal council convenes the session without delay, taking into account the requirements provided in subsection 3 of this section.

§ 44. Discussion of issues by municipal council

(1) The work of a municipal council is organised and sessions are chaired by the chairman or deputy chairman of the municipal council. In the absence of the chairman or the deputy chairman, the session is chaired by the eldest member of the municipal council who is present. The rules of procedure of the municipal council are established by the municipal council.

(2) The municipal council may assign the preparation of issues to be deliberated in the municipal council to the municipal administration.

(3) The first municipal council session shall be chaired by the chairman or deputy chairman of the rural municipality or city election committee until the chairman of the municipal council is elected. The agenda of the first session shall include the election of the chairman and deputy chairman or deputy chairmen of the municipal council, and consideration of the resignation of the municipal administration. The same procedure also applies to the agenda of the first session of a new municipal council convened pursuant to subsection 2 of § 52 of this Act, except for the consideration of the resignation of the municipal administration. The election of the chairman of the municipal council shall be organised by the rural municipality or city election committee and the election results shall be established by a resolution of the election committee. The same procedure also applies at the following municipal council sessions if the chairman of the municipal council is not elected at the first session.

(4) Municipal council sessions are public. The chairman of a municipal council declares the deliberation of an issue at a session to be closed if the disclosure of data pertaining to the issue under deliberation is prohibited or restricted by law In justified cases, the chairman of the municipal council may restrict the presence of persons not invited to the municipal council session at the venue of the session.

(5) A municipal council deliberates issues indicated in the notice of the session and prepared pursuant to the procedure required in the rules of procedure of the municipal council.

(6) The members of the municipal administration, the rural municipality or city secretary and persons invited to a session by the municipal council may participate in the session of the municipal council with the right to speak.

§ 45. Voting in municipal council

(1) A municipal council decides on issues specified in subsection 1 of § 22 of this Act and on matters assigned to the competence of the municipal council by law through a vote. On other matters, a vote is taken if at least one member of the municipal council so requests.

(2) Voting in municipal councils is open.

(3) The election of persons shall be decided by secret ballot, which results shall be formulated as a decision of the municipal council. The results of the election of persons are not subject to repeat vote.

(4) Municipal council decisions shall be documented by the chair of the session.

(5) Municipal council decisions are passed by a majority of votes in favour. A majority of votes of the composition of the municipal council is required to adopt the resolutions on the issues specified in clauses 3, 4, 6, 7, 8, 9, 14, 15, 18 and 24 of this Act and § 7 of the Constitutional Review Court Procedure Act.

(6) A majority of at least two-thirds of the votes of the composition of the municipal council is required to amend a merger agreement adopted upon alteration of administrative-territorial organisation of the local authorities within the first election cycle after the entry into force of the alteration of administrative-territorial organisation.

§ 46. Procedure for expression of no confidence in municipal council

(1) Not less than one fourth of the members of a municipal council may initiate an expression of no confidence in the chairman of the municipal council, deputy chairman of the municipal council, chairman of a municipal council committee, deputy chairman of a municipal council committee, a member of the revision committee, the municipal administration, the rural municipality or city mayor or a member of the municipal administration.

(1¹) An expression of no confidence is initiated at a municipal council session by submission of a motion of no confidence before deliberation of items on the agenda. The representative of the initiators of the expression of no confidence presents a report which includes the reasons for no confidence set out in the motion of no confidence, and delivers the motion of no confidence to the chair of the session.

(2) The issue of expression of no confidence is included in the agenda of the next municipal council session.

(2¹) A notice of a municipal council meeting is also sent, in accordance with the requirements provided in subsection 3 of § 43 of this Act, to persons against whom an expression of no confidence has been initiated.

(3) The vote of no confidence is public. Expression of no confidence releases the chairman or deputy chairman of the municipal council, the chairman or deputy chairman of a municipal council committee, or a member of the revision committee from their duties. In the event of an expression of no confidence in the chairman of a municipal council, the duties of the chairman of the municipal council are performed by a deputy chairman of the municipal council appointed by the municipal council, or in their absence, the eldest member of the municipal council, until the election of a new chairman.

(4) Expression of no confidence releases a rural municipality or city mayor or a member of the municipal administration from their duties and office. In the event of expression of no confidence in a rural municipality or city mayor, the municipal council elects a new rural municipality or city mayor at the same municipal council session, or appoints one of the members of the municipal administration to act as substitute for the rural municipality or city mayor until the day when a new rural municipality or city mayor is approved to office. In the event of expression of no confidence in a rural municipality or city mayor, the municipal administration continues to perform its tasks, and its authority remains in effect in accordance with the procedure provided in this Act until the day following the date on which the new municipal administration is approved to office.

(5) In the event of expression of no confidence in a municipal administration, the municipal administration continues to perform its tasks and the authority of the municipal administration remains in effect until the new municipal administration is granted authority pursuant to the procedure provided in this Act. The termination of the authority of the municipal administration related to the expression of no confidence results in the release of all the members of the municipal administration from their duties.

(6) If the municipal council expresses no confidence in a member of the municipal administration and the quorum provided in subsection 6 of § 49 of this Act is preserved, the municipal administration continues to act and the vacant position of the municipal administration is filled pursuant to the procedure provided in § 28 of this Act, or the number of members of the municipal administration is changed pursuant to the established procedure.

(7) If the requirement for quorum provided in subsection 6 of § 49 of this Act cannot be complied with due to the expression of no confidence in members of the municipal administration, the municipal administration has no quorum until a necessary number of new members of the municipal administration are approved.

(8) If an expression of no confidence finds no support in a municipal council session, an expression of no confidence in the same person shall not be initiated for the same reason within three months.

§ 46¹. Resignation

(1) If the chairman or deputy chairman of a municipal council, the chairman or deputy chairman of a municipal council committee, a member of the revision committee, a rural municipality or city mayor or a member of the municipal administration resigns, they submit an application to the rural municipality or city secretary. The person who submitted the application is deemed to have resigned as of the date indicated in the application which may not be earlier than the following working day after the submission of the application. The rural municipality or city secretary immediately informs the rural municipality or city mayor or their deputies and the chairman of the municipal council or their deputy about the receipt of the application for resignation.

(2) The person who submitted the application shall, at the earliest opportunity, deliver the property entrusted to him or her in connection with professional activities and the performance of his or her official duties.

§ 47. Municipal council committees

(1) Municipal councils may form standing committees and ad hoc committees for the duration of their authority. Chairmen and deputy chairmen of committees must be elected from among the members of the municipal council. The other committee members are approved by the municipal council on the proposal of the chairman of the committee, taking into account the proposals previously submitted by political parties and election coalitions. Each member of the municipal council is entitled to be part of at least one committee.

(1¹) The chairman and deputy chairman or chairmen of a committee shall be elected simultaneously by secret ballot. A municipal council member shall have one vote.

(1²) The candidate who receives the greatest number of votes shall become chairman of the committee. The candidate who receives the second greatest number of votes shall become deputy chairman of the committee. If several deputy chairmen are elected for a committee, the candidates according to the number of the deputy chairmen elected who followed the candidate receiving the greatest number of votes shall become the deputy chairmen.

(1³) The formation of the composition of a municipal council committee shall take into account the share of the representatives of political parties and election coalitions in the municipal council.

(1⁴) If due to the equality of votes no candidate is elected to become the chairman of the committee, a second ballot shall be held between the candidates who received the equal number of votes. In case of equality of votes in the second ballot, lots shall be drawn.

(1⁵) If due to the equality of votes no candidate is elected to become the deputy chairman of the committee, lots shall be drawn, or a second ballot shall be held between the candidates who received the equal number of votes. In case of equality of votes in the second ballot, lots shall be drawn.

(1⁶) The authority of the chairman and deputy chairman of a committee terminates at the same time as the suspension or premature termination of their authority as municipal council members. Upon the termination of the authority of the chairman and deputy chairman of a committee due to an expression of no confidence, resignation, or the termination or suspension of their authority as municipal council members, a new chairman and deputy chairman of the committee are elected.

(2) The procedure for the formation and the bases and procedure for the activities of municipal council committees are provided in a regulation of the municipal council.

(3) Members of a committee must comply with the restriction on disclosure of information provided in § 26¹ of this Act with respect to information that has come to their knowledge due to performing their tasks as committee members.

§ 48. Revision committee

(1) A municipal council shall form a revision committee of not less than three members for the duration of its term of office.

(2) The chairman, deputy chairman and members of the revision committee shall be elected from among the municipal council members. Subsections 1¹–1⁶ of § 47 of this Act shall apply to the election of the chairman and deputy chairman of the revision committee.

(2²) A member of the revision committee shall not perform the functions of the chief executive, director or member of the management board of a company, foundation or non-profit association under the control of the same rural municipality or city, or the head or deputy head of an agency under the administration of the administrative agency of the same rural municipality or city.

(2³) If a member of the revision committee fails to submit an application for their resignation from the management board or from the position of the director or chief executive of a company, foundation or non-profit association under the control of the same rural municipality or city, or for cancellation of an employment contract or other contract under the law of obligations entered with them for performing the functions of the head or deputy head of an agency under the administration of the administrative agency of the rural municipality or city within ten working days after the appearance of the fact specified in subsection 2² of this section, such member shall be deemed to have resigned from the position of a member of the revision committee. The member of the revision committee shall immediately inform the rural municipality or city secretary of submission of the application.

(3) The revision committee has the right:

1) to verify and assess the lawfulness, purposefulness and productivity of the activities of a municipal administration, rural municipality or city administrative agencies and agencies under their administration, or companies, foundations and non-profit organisations under control of a local authority, and the purposefulness of the use of rural municipality or city property;

2) to verify and assess the compliance with the rural municipality or city budget;

(3¹) The revision committee shall assess the productivity pursuant to the following criteria:

1) economy, i.e. cutting back the costs incurred in achieving the objectives;

2) efficiency, i.e. the relationship between the results and the expenses made to achieve them;

3) effectiveness, i.e. the actual impact of an activity compared to the intended impact.

(4) The revision committee performs the functions within its competence pursuant to the procedure provided in the legislation of the municipal council on the basis of its work schedule or as required by the municipal council.

(5) The municipal administration takes a position concerning a decision of the revision committee and the audit report within ten working days after receiving these documents. The revision committee submits these documents and the draft legislation of the municipal council to the municipal council for making a resolution concerning the implementation of the results of the audit.

(6) The revision committee has the right to obtain the documents and information necessary for the performance of the tasks specified in subsection 3 of this section. In responding to a question from the revision committee, subsections 2 and 3 of § 26 of this Act are applied.

(7) The revision committee presents a report concerning its activities at least once a year at a municipal council session.

(8) The reports of the revision committee are published on the website of the rural municipality or city.

§ 48¹. Internal audit system and internal audit

(1) A municipal council ensures that an internal audit system is in place within a local authority.

(1¹) An internal audit system is a comprehensive set of measures concerning legality and purposefulness which is implemented under the management of a rural municipality or city administrative agency and the agencies under its administration, which makes it possible to ensure:

1) compliance with legal acts and oversight of their implementation;

2) protection of property against damage resulting from wasting, unpurposeful use, incompetent management, and other such causes;

3) the purposefulness of the activities of an agency in performing its functions;

4) the collection, storage, and disclosure of accurate, timely, and reliable information regarding the activities of the agency.

(2) The municipal administration is responsible for the functioning of the internal audit system within the local authority. The head of the relevant rural municipality or city administrative agency, or of an agency under its administration, is responsible for the implementation and productivity of the internal audit system.

(3) If necessary, the position of internal auditor is established within the local authority, an appropriate structural unit is created, a person responsible for internal auditing is appointed, or internal auditing services are outsourced from an external service provider. If a local authority establishes the position of internal auditor or a corresponding structural unit, the municipal council may, if necessary, establish general procedures for internal auditing by a regulation.

(4) Internal audit is an independent, objective, assuring, and advisory activity inside of a rural municipality or city administrative agency and an agency under its administration that adds value to the activities of the agency and contributes to the achievement of its objectives through the systematic evaluation and improvement of the effectiveness of risk management, control, and governance processes.

§ 48². Requirements for rural municipality and city mayors and members of municipal administration

(1) A citizen of the Republic of Estonia who has full active legal capacity and who is proficient in Estonian to the extent of the requirements for officials established by the Language Act and legislation issued on the basis of the Language Act may be elected a rural municipality or city mayor and approved as a member of the municipal administration.

(2) A person with a criminal record for an intentionally committed criminal offence shall neither be elected a rural municipality or city mayor nor approved as a member of the municipal administration.

(3) If the precluding circumstances specified in subsection 1 or 2 of this section become evident or arise during the become evident of a rural municipality or city mayor or member of the municipal administration, the municipal council shall release him or her from office due to unsuitability for position.

§ 49. Organisation of municipal administration work

(1) The head of a rural municipality government is the rural municipality mayor and the head of a city government is the city mayor, who represents the municipal administration.

(4) The rural municipality or city mayor and members of the municipal administration belong to the composition of a municipal administration.

(4¹) The members of a municipal administration coordinate and manage the areas of activity of the municipal administration within the limits of authorisation granted by the rural municipality or city mayor, and perform other tasks assigned by the rural municipality or city mayor.

(4²) The position of a member of the municipal administration may be remunerative based on a resolution of the municipal council. The rural municipality and city mayor and members of the municipal administration may only be paid such additional remuneration, compensation or benefit during the term of their authority, and only such benefits may be applied in respect to such persons, which have been provided for and decided by the municipal council in accordance with its established procedure.

(4³) The duration of the annual holiday of the rural municipality or city mayor and members of the municipal administration working in remunerative positions shall be 35 calendar days and the holiday regulation provided for in §§ 54 and 59–71 of the Employment Contracts Act shall be applied in respect to such persons.

(4⁴) The rural municipality or city mayor and members of the municipal administration may be sent on official travel pursuant to the conditions and the procedure established by the municipal council. Travel expenses of the rural municipality or city mayor and members of the municipal administration shall be compensated pursuant to the conditions and the procedure provided for in the Public Service Act.

(4⁵) If the performance of official duties by the rural municipality or city mayor or member of the municipal administration is continuously hindered due to work decrement, the municipal council may release him or her from office. The performance of official duties is continuously hindered due to work decrement if the rural municipality or city mayor or member of the municipal administration is unable to perform his or her official duties on the basis of a certificate of incapacity for work for more than four consecutive months or for more than five months during a year.

(5) A rural municipality or city mayor is substituted for pursuant to the procedure provided in the legislation of the rural municipality or city.

(6) A municipal administration has a quorum if more than one half of the composition of the municipal administration, including the rural municipality or city mayor or their deputy, participate in the session. The rural municipality or city secretary participates in a session with the right to speak.

(7) Municipal administration decisions are passed by a majority of votes in favour.

(8) Municipal administration sessions are closed unless the municipal administration decides otherwise.

(9) A rural municipality or city mayor may invite other persons to participate in a session.

(10) The documents of a municipal administration are signed by the rural municipality or city mayor.

(11) The specific rules of procedure of a municipal administration, the bases and procedure for the formation of committees and the bases for their activities are established by the municipal administration.

(12) The rural municipality or city mayor or member of the municipal administration shall not participate in the debate and resolution of legislation of specific application in the municipal administration with regard to which a procedural restriction extends to him or her pursuant to the Anti-corruption Act.

(13) In the case provided for in subsection 12 of this section, the rural municipality or city mayor or member of the municipal administration is required to make a statement concerning his or her non-participation in the discussion of such item prior to the debate of the corresponding items on the agenda. The respective notation shall be made in the minutes of the municipal administration sitting. The quorum necessary for the debate and resolution of items shall be decreased by such member.

§ 50. Rural municipality and city mayors

(1) A rural municipality or city mayor:

1) organises the work of the municipal administration and preparation for the sessions of the municipal administration;

2) represents the local authority and municipal administration in accordance with the competence granted by law, the statutes of the rural municipality or city and by the municipal council;

3) issues directives for organising the internal work of the municipal administration and concerning the members of the municipal administration and in case the rural municipality or city mayor is the head of an administrative agency, then for organising the service of the administrative agency;

4) signs municipal administration regulations and orders, and other municipal administration documents;

5) submits the members of the municipal administration to the municipal council for approval;

6) submits a proposal to the municipal council for the approval of the members of the municipal administration working in remunerative positions and of the additional members of the municipal administration and their release from their duties as members of the municipal administration;

6¹) appoints to office and releases from office pursuant to the procedure provided by law an official or head of a corresponding structural unit for the performance of the duties in the sphere of the professional activity of an internal auditor;

7) presents the candidates for the heads of rural municipality or city administrative agencies for their appointment to office and candidates for the heads of agencies under the administration of rural municipality or city administrative agencies to the rural municipality or city government for their approval to office, makes proposals to the municipal administration for the release of the heads of these agencies from office and exercises other rights and obligations of an employer, while issuing directives regarding the heads of agencies and entering into contracts with them, unless otherwise provided in the legislation of the municipal council or municipal administration;

8) performs other tasks assigned to them pursuant to law and the legislation of the rural municipality or city.

(2) The rural municipality or city mayor shall not be in any elected or appointed office of the state or the same local government outside his or her official duties. The rural municipality or city mayor shall immediately inform the municipal council in writing if he or she acts or intents to act outside his or her official duties based on a contract of employment or contract for provision of services or in a position of another local government, as an undertaking or a general partner in a general or limited partnership or a member of the management or controlling body of a legal person. Official duties for the purposes of this Act have the meaning assigned to these in the Anti-corruption Act.

(3) The municipal council prohibits the rural municipality or city mayor by an administrative act from engaging in full or in part in the ancillary activities specified in subsection 2 of this section, if the volume of labour spent on the ancillary activities or the nature thereof hinders regular performance of their functions or if the ancillary activity brings about a breach of their functions.

(4) A member of the municipal administration substituting for the rural municipality or city mayor has the same rights and duties as the rural municipality or city mayor, except for the right to submit the members of the municipal administration to the municipal council for approval, to propose the approval of an additional member of the municipal administration, and to propose the release of a member of the municipal administration from their duties.

§ 50¹. Restrictions on activities of members of municipal administration

(1) A member of the municipal administration shall immediately inform the municipal council in writing if he or she acts or intents to act outside his or her official duties based on a contract of employment or contract for provision of services or in another elected or appointed office, as an undertaking or a general partner in a general or limited partnership or a member of the management or controlling body of a legal person.

(2) The municipal council prohibits the member of the municipal administration by an administrative act from engaging in full or in part in the ancillary activities specified in subsection 1 of this section, if the volume of labour spent on the ancillary activities or the nature thereof hinders regular performance of their functions or if the ancillary activity brings about a breach of their functions.

§ 51. Minutes of sessions and meetings

(1) Minutes of municipal council sessions shall be signed by the chairman of the municipal council or his or her deputy.

(2) Minutes of municipal administration sessions are signed by the rural municipality or city mayor or their deputy, and the secretary at the minutes.

(3) Minutes of municipal council or municipal administration committee meetings shall be signed by the chair of the meeting.

(4) Persons who sign minutes are responsible for the correctness of the information contained therein.

(5) The time and place of the session or meeting, names of participants, issues discussed, proposals submitted in respect thereto and decisions on taking into account or disregarding the proposals, voting results if an issue was resolved by way of voting and dissenting opinions of persons who decided and initiated such issues shall be entered in the minutes.

(6) Minutes of municipal council sessions shall be accessible to everyone.

(7) Minutes of municipal administration sessions and of meetings of municipal council and municipal administration committees must be accessible to everyone pursuant to the procedure provided in the legislation of the rural municipality or city.

(8) Data contained in the minutes the issue of which is restricted by law or which is intended only for the internal use of rural municipality or city administrative agencies shall not be made accessible to the public.

§ 52. Inability of municipal council to act

(1) A municipal council is unable to act if it:

1) fails to pass the rural municipality or city budget within three months as of the beginning of the budgetary year;

1¹) fails to establish the statutes of a rural municipality or city formed as a result of merger within six months after the date of announcement of the results of the municipal council elections in a local authority formed as the result of alteration of administrative-territorial organisation;

2) fails to elect the chairman of the municipal council, or the rural municipality or city mayor within two months after the date of the convention of the first municipal council session or fails to confirm the membership of the municipal administration within four months after the date on which the first municipal council session of the new membership is convened;

3) fails to elect a new chairman of the municipal council, or a rural municipality or city mayor within two months after the release from office or resignation of the previous chairman of the municipal council or the rural municipality or city mayor, or fails to approve the members of the municipal administration within four months after the release from office or resignation of the rural municipality or city mayor;

4) fails to elect a new rural municipality or city mayor within two months after the date of the expression of no confidence in the previous rural municipality or city mayor, or the municipal administration or fails to confirm the membership of the municipal administration within four months after the date of the expression of no confidence;

5) violates subsection 2 of § 46 of the Local Government Financial Management Act.

(2) If a municipal council is unable to act, the authority of every municipal council member is deemed to be prematurely terminated and alternate members shall replace them pursuant to the procedure provided for in § 20 of this Act. In such case, the municipal council shall call a session which shall be chaired by the chairman or deputy chairman of the election committee of the rural municipality or city until the chairman of the municipal council is elected.

(3) If the number of members of a municipal council falls below the number required to obtain a majority of the votes of the membership of the municipal council less than six months prior to municipal council regular elections, the municipal administration shall decide on the issues set out in clauses 12 and 13 of subsection 1 and subsection 2 of § 22 of this Act.

§ 53¹. Law enforcement unit and law enforcement official

(1) A local authority may form a law enforcement unit of a municipal administration (hereinafter law enforcement unit) or appoint an official who engages in law enforcement into office (hereinafter law enforcement official), whose main function is to participate in ensuring the public order and to exercise supervision, within the limits of their competence, over compliance with the legislation of the municipal council within the jurisdiction determined by the local authority.

(2) The activities of a law enforcement unit and a law enforcement official shall be financed from the local government budget.

§ 53². Formation of law enforcement unit and establishing of position of law enforcement official and their functions

(1) The formation and termination of a law enforcement unit or the establishment or redundancy of the position of a law enforcement official are decided by the municipal council.

(2) The subordination, jurisdiction and specific duties of a law enforcement unit are provided in the statutes approved by the municipal council. If the position of law enforcement official is created in a municipal administration, the subordination, jurisdiction and specific duties of a law enforcement official are provided in the job description of the law enforcement official.

(3) The Public Service Act extends to law enforcement officials.

§ 53³. Co-operation between law enforcement unit and law enforcement official

(1) In the performance of their duties, a law enforcement unit and law enforcement officials shall co-operate with other local government agencies, state bodies, the Police and Border Guard Board, legal persons in private law, citizens and citizens' associations.

(2) The Police and Border Guard Board provides assistance in the training and in-service training of law enforcement units and law enforcement officials on the basis of a contract entered into with the municipal administration.

§ 53⁵. Uniform and badges of law enforcement official

(1) Law enforcement officials wear uniforms with the symbol of the local authority and the distinguishing badges of law enforcement officials. The uniforms of law enforcement officials must not bear a misleading resemblance to the uniforms of the officials of state administrative agencies.

(2) A description of the uniforms and distinguishing badges of law enforcement officials is established by a regulation of the minister in charge of the policy sector.

§ 54. Local government service

(1) Local government service in rural municipality and city administrative agencies is regulated by the Public Service Act, Employment Contracts Act and this Act.

(2) The officials and employees of a rural municipality or city administrative agency must be proficient in Estonian to the extent provided in the Language Act and legislation issued on the basis of the Language Act.

§ 54¹. Compensation and social guarantees for persons elected and appointed by municipal council upon termination of their authority

(1) The chairman and the deputy chairman of a municipal council, a rural municipality and city mayor, and a member of the municipal administration may be paid, in the event of their release from office, compensation by a decision of the municipal council in the amount of up to three months’ salary if the person has worked in such office for two to eight years, and in the amount of up to six months’ salary if the person has worked in such office for more than eight years, and the person is released from office:

1) due to the premature termination of his or her authority;

2) on his or her own initiative due to his or her state of health which does not allow the performance of functions in a continuous manner;

3) due to an expression of no confidence.

(2) The compensation provided in subsection 1 of this section is not paid if the person:

1) is released from office on their own initiative except in the case set out in clause 2 of subsection 1 of this section;

2) is elected or appointed to the same office for a new term of office by the municipal council.

(2¹) Release from office on one’s own initiative for the purposes of clause 1 of subsection 2 of this section is deemed to include also taking up a position that is incompatible with one’s current authority.

(3) A rural municipality or city mayor is paid, in the event of their release from office due to the timely expiry of their authority a compensation in the amount of six times average monthly salary of the relevant position for two years preceding the date of announcement of the results of the municipal council elections if they are released from office due to appointment to office of a new municipal administration as the result of entry into force of alteration of administrative-territorial organisation of the rural municipalities or cities at the initiative of the municipal councils and the rural municipality or city mayor has held the office for at least one year before the date of announcement of the municipal council election results of a new local authority formed as the result of a merger.

(3¹) The chairman of a municipal council to whom the municipal council has determined a remuneration or compensation based on clause 21 of subsection 1 of § 22 of this Act is paid, in connection with timely expiry of their authority a compensation in the amount of average monthly salary for two years preceding the date of announcement of the results of the municipal council elections or six times the compensation if the authority of the chairman of the municipal council terminates as the result of announcement of the results of the municipal council elections in a local authority in the course of alteration of administrative-territorial organisation of the rural municipalities or cities at the initiative of the municipal councils and they have worked as the chairman of the municipal council for at least one year before the date of announcement of the municipal council election results of a new local authority formed as the result of a merger.

(4) The compensation provided for in subsections 3 and 3¹ of this section shall not be paid if the municipal council elects the rural municipality or city mayor or the chairman of the municipal council for a new term of office.

(5) In the case provided in subsection 3 or 3¹ of this section, neither the rural municipality or city mayor nor the chairman of a municipal council is paid a compensation specified in clause 1 of subsection 1 of this section.

§ 54². Specifications for substitution for officials in local government administrative agencies

(1) An absent official may be substituted or, in case the work of an administrative agency would be hindered due to the absence of an official and the appointment to service of a substitute is impossible or inexpedient, the functions of an absent official may be assigned to another official or a person employed by this administrative agency under an employment contract who meets the requirements towards the official and the substituted position. Substitution for an official by an employee is permitted only in case it is impossible to appoint in the administrative agency a substitute who is an official.

(2) A substitute who is an employee is appointed to service as an official for the period of substitution based on clause 1 of subsection 2 of § 23 of the Civil Service Act.

(3) An employee may not substitute for an official for over five months in a calendar year.

(4) A person who is pregnant or raising a child under three years of age or a disabled minor child may refuse from performing the functions of an absent official.

(5) A substitute who is an employee may be paid additional remuneration proportionally to the functions of the substituted person assigned to them.

(6) The prohibition on strikes and the restrictions on activities of officials arising from the Civil Service Act apply to a substitute who is an employee for the period of substitution.

§ 54³. Social guarantees for officials and employees

If the release from office of an official or employee working at an administrative agency of a rural municipality or city takes place in connection with disestablishment of a post or position arising from the alteration of administrative-territorial organisation, the official or employee may be paid, by a resolution of the council, a compensation or bonus upon the release from office for the long-term and exemplary performance of the service or employment duties in the amount of up to three months' salary if the person has worked as an official or employee at an administrative agency of a rural municipality or city for two to eight years, and in the amount of up to six months' salary if the person has worked as an official or employee for more than eight years.

§ 55. Rural municipality and city secretaries

(1) A rural municipality or city secretary is appointed to and released from office by the rural municipality or city mayor pursuant to the procedure provided by law.

(2) The following Estonian citizens of at least 21 years of age may be appointed as rural municipality and city secretaries:

1) who have acquired in the field of law at least an officially certified Master's degree, a corresponding qualification for the purposes of subsection 2² of § 28 of the Republic of Estonia Education Act or a corresponding foreign qualification;

2) who have acquired in the field of law at least an officially certified Bachelor's degree, a corresponding qualification for the purposes of subsection 2² of § 28 of the Republic of Estonia Education Act or a corresponding foreign qualification and who have been employed for the purposes of § 2 of the Public Service Act in a state or local government administrative agency for at least two years; or

3) who have been issued prior to 1 March 2011 a certificate of compliance with the professional qualification requirements for rural municipality and city secretaries by the Rural Municipalities and City Secretaries Professional Qualifications Committee formed by the Government of the Republic and who have been employed for the purposes of § 2 of the Public Service Act in a state or local government administrative agency for at least two years, but who do not comply with the education requirements specified in clauses 1 and 2 of this subsection.

(3) A rural municipality or city secretary does not belong to the composition of the municipal administration, however, they participate in municipal administration sessions with the right to speak. A rural municipality or city secretary may participate in municipal council sessions with the right to speak.

(4) A rural municipality or city secretary shall:

2) co-sign municipal administration regulations and orders;

3) manage the publication of the legislation of the municipal administration and the disclosure of the activities of the municipal administration;

4) manage the publication of the legislation of the municipal council and the disclosure of the activities of the municipal council;

6) represent the rural municipality or city in the courts or authorise other persons to do so;

8) participate in the preparation of documents for municipal administration sessions and arrange the taking of minutes of sessions;

9³) organise elections or referenda in a rural municipality or city pursuant to the procedure provided for in the European Parliament Election Act, Local Government Council Election Act, Riigikogu Election Act or Referendum Act;

10) perform other functions assigned to rural municipality or city secretaries pursuant to law and the legislation of the rural municipality or city.

(5) In the absence of a rural municipality or city secretary, he or she shall be substituted by a person appointed by the order of a rural municipality or city mayor. A substitute for a rural municipality or city secretary has all the rights and obligations of a rural municipality or city secretary and he or she shall comply with the requirements concerning the age and citizenship provided for in subsection 2 of this section and one of the conditions specified in clauses 1–3 of subsection 2 for the appointment of a rural municipality or city secretary.

(6) If a rural municipality or city secretary runs as a candidate in the European Parliament, municipal council or Riigikogu elections, is involved in these elections as an authorised representative or for other reasons is unable to perform the functions of an elections manager, a rural municipality or city mayor shall appoint, by a regulation, a substitute for a rural municipality or city secretary for the performance of the functions provided for in clause 9³ of subsection 4 of this section.

§ 56. Rural municipality district or city district

(1) A rural municipality district or city district is a unit which operates in the territory and within the composition of a rural municipality or city pursuant to the statutes of the rural municipality district or city district approved by the municipal council, with the objective of keeping the local initiative and identity, involvement of the residents of the local authority in deciding on local issues and representing regional interests in the performance of rural municipality or city functions.

(2) A rural municipality district or city district assembly is formed in a rural municipality district or city district based on the rural municipality district or city district statutes as the representative body of the residents of the rural municipality district or city district, and the members thereof are elected on the basis of the democratic principle pursuant to the procedure provided for in the said statutes.

(4) A rural municipality district or city district assembly is competent to:

1) take a position and make proposals on all issues concerning the functioning of the local authority, local governance or local way of life in the territory of the rural municipality district or city district;

2) represent the local authority and adopt resolutions on any issues concerning the territory of the rural municipality district or city district in the areas and within the authority granted thereto by the law, statutes of the rural municipality or city, statutes of the rural municipality district or city district or resolution of the municipal council.

§ 57. Formation of rural municipality district or city district

(1) The formation of a rural municipality district or city district is decided by the municipal council.

(1¹) A rural municipality district or city district may be formed upon alteration of administrative-territorial organisation of local authorities if this is agreed in a merger agreement. A rural municipality district or city district formed by a merger agreement commences activities as of the date of entry into force of the results of the municipal council elections.

(2) The statutes of a rural municipality district or city district shall provide:

1) a description of the boundaries of the rural municipality district or city district;

1¹) the procedure for formation of a rural municipality district or city district assembly as the representative body of the residents of the rural municipality district or city district and the procedure for election of the chairman of a rural municipality district or city district assembly;

2) the procedure for formation of a rural municipality district or city district government if a rural municipality district or city district government is formed;

3) the procedure for appointment to office of a rural municipality district or city district elder, if the position of a rural municipality district or city district elder is formed in the rural municipality district or city district, whereas the term of authority of the elder may not exceed term of authority of the municipal administration of this local authority;

4) the authority of a rural municipality district or city district assembly, the chairman of a rural municipality district or city district assembly, the rural municipality district or city district government and the rural municipality district or city district elder and the budgetary funds of a rural municipality or city necessary for compliance thereto;

5) the bases of and procedure for supervision over the activities of a rural municipality district or city district assembly, the chairman of a rural municipality district or city district assembly, the rural municipality district or city district elder and the rural municipality district or city district government and the bases of and procedure for liquidation of a rural municipality district or city district.

(4) Neither a rural municipality district or city district assembly nor the chairman thereof and neither the rural municipality district or city district government nor elder shall have the right to issue a legislative act.

(4¹) A rural municipality district or city district assembly may, within the limits of their authority and for the performance of their functions, adopt resolutions as legislation of specific application.

(5) Rural municipality district and city district elders may, within the limits of their authority and for the performance of their functions, issue orders as legislation of specific application and directives for the organisation of the internal operations of the municipal administration.

(6) The requirements provided in subsections 7, 9 and 10 of § 7 of this Act apply to the resolutions of a rural municipality district or city district assembly and orders issued by rural municipality district or city district elders. Resolutions of a rural municipality district or city district assembly are signed by the chairman of a rural municipality district or city district assembly. Orders of the rural municipality district or city district elder are signed by the rural municipality district or city district elder.

(7) Supervision over resolutions of the rural municipality district or city district assembly and orders of the rural municipality district or city district elder shall be exercised by the rural municipality or city mayor pursuant to the procedure provided for in the statutes of the rural municipality or city.

(9) The rural municipality district or city district assembly is entitled to make initiatives regarding issues of local life to the municipal council or municipal administration for the deliberation of issues and adoption, amendment or repeal of legislation; such initiatives are deliberated within two months after the submission of the initiative.

(10) An initiative of the rural municipality district or city district assembly is submitted to the municipal administration as a draft or, in case of questions, as a written inquiry which is signed by the chairman of the rural municipality district or city district assembly. If the initiated issue is within the competence of the municipal council, the municipal administration submits, within one month, such issue together with its position to the municipal council for resolution.

(11) A representative of the rural municipality district or city district assembly shall be entitled to participate in the discussion of an initiative in the corresponding committee of the municipal council or municipal administration and in the municipal council or municipal administration with the right to speak.

(12) A rural municipality district or city district formed as the result of alteration of administrative-territorial organisation shall not be liquidated prior to the expiry of a merger agreement, excluding at the request of the rural municipality district or city district assembly.

(13) If the rights and performed duties of a rural municipality district or city district formed as the result of alteration of administrative-territorial organisation are agreed in a merger agreement, the majority of votes of the municipal council members provided for in subsection 6 of § 45 of this Act shall be followed in amendment thereof during the term of the merger agreement.

§ 57¹. Appointment to office and release from office of rural municipality district elders and city district elders

(1) Rural municipality district or city district elders are appointed to office by the municipal administration pursuant to the procedure provided in the statutes of the rural municipality district or city district, after hearing the opinion of the rural municipality district or city district assembly.

(1¹) The provisions of the Public Service Act concerning officials shall extend to rural municipality district elders and city district elders to the extent not provided otherwise by this Act.

(1²) Sections 16–20 of the Public Service Act need not be applied to fill vacant positions of rural municipality district elders and city district elders.

(2) Rural municipality district or city district elders are released from office by the municipal administration if, in the opinion of the rural municipality or city mayor, their co-operation with the rural municipality district or city district elder does not succeed, after hearing the opinion of the rural municipality district or city district assembly.

(3) A rural municipality district or city district elder must not be released from office on the basis specified in subsection 2 of this section before the expiry of six months after the rural municipality or city mayor and the rural municipality district or city district elder started working together.

(4) The last date of the service relationship of a rural municipality district or city district elder upon release from office on the basis specified in subsection 2 of this section is the date specified in the notice on release from office.

§ 57². Regional representative body

(1) A regional representative body may be formed within the territory of a rural municipality or city with the objective of keeping the local initiative and identity, involvement of the residents of the settlement units forming the region in deciding on local issues and representing regional interests in the performance of rural municipality or city functions.

(2) The regional representative body is formed in accordance with the principle of democracy and the procedure set forth in the statute of the regional representative body.

(3) The municipal council establishes the statute of the regional representative body which stipulates the following:

1) settlement units from whose residents the regional representative body is formed;

2) procedure for the formation of the representative body and its rules of procedure;

3) term of authority;

4) rights and competence of the representative body.

(4) The statute may prescribe that settlement unit elders and representatives of interest groups are involved in the work of the representative body.

(5) The regional representative body has the competence of a rural municipality district or city district assembly provided in this Act, unless otherwise provided by law or the statute of the representative body.

§ 58. Settlement unit elders

(1) A city, town, small town or village elder may be elected at the meeting of the city as a settlement unit, the town, the small town or the village.

(2) A city, town, small town or village elder may participate in municipal council sessions with the right to speak.

(3) A municipal council may adopt the statute of city, town, small town or village elders, which sets out the procedure for their election, the requirements for candidates, the rights and obligations and the term of authority of the specified persons. The term of authority of city, town, small town or village elders is not restricted by the term of authority of the municipal council.

(4) The performance of the functions of the municipal administration by city, town, small town or village elders is set out in a contract.

§ 62. Forms of co-operation

(1) For the expression, representation and protection of common interests and for the performance of common functions, local authorities may, on the basis of and in accordance with the procedures provided by legislation:

1) co-operate;

2) grant authority to another rural municipality or city for this purpose;

3) form associations of local authorities, county co-operation organisations and other associations.

(1¹) A function relating to the organisation of local issues assigned to a local authority by law or on the basis of law may be assigned to another local authority by an administrative contract, unless otherwise provided by law and unless a specific local government body has been designated by law to perform the function.

(2) In the case of co-operation specified in subsection 1 of this section, local authorities may decide to form a joint administrative agency or joint agency for the performance of common functions based on an administrative contract.

§ 62¹. Joint administrative agencies and joint agencies of local authorities

(1) For the performance of functions in co-operation on the basis of this Act, local authorities may form joint administrative agencies as rural municipality or city joint administrative agencies, and joint agencies as agencies under the joint administration of the rural municipality or city administrative agencies.

(2) A joint administrative agency is governed by the regulation determined by the administrative contract for its formation or applicable to an administrative agency of a rural municipality or city of its location and a joint agency by the regulation applicable to an agency under the administration of an administrative agency, unless prescribed otherwise by the Acts or the administrative contract for the formation of a joint administrative agency or joint agency.

(2¹) An administrative act of a joint administrative agency is considered to be the administrative act of the local authority on whose behalf the joint administrative agency issued the act. In the performance of its functions and the issue of administrative acts, a joint administrative agency is subject to the legislation of the rural municipality or city that has authorised the joint administrative agency to perform the function by an administrative contract.

(3) The officials and employees of a joint administrative agency are within the structure of administrative agencies and in the composition of the places of service of the local authority, in the composition of which the joint administrative agency has been formed.

(4) The employees of a joint agency are within the structure and in the composition of agencies under the administration of the local authority, in the composition of which the joint agency has been formed.

(5) The officials and employees of a joint administrative agency and the employees of a joint agency perform the functions on behalf of the local authority that has authorised the joint administrative agency or joint agency to perform the function by an administrative contract.

(6) Joint administrative agencies and joint agencies are registered in the state register of state and local government agencies in the composition of the local authority where it has been formed.

§ 62². Formation and bases for activities of joint administrative agencies and joint agencies

(1) The formation of joint administrative agencies or joint agencies is decided by an administrative contract entered into by and between municipal administrations with the authorisation of municipal councils of the local authorities participating in the co-operation and are formed by the statutes of joint administrative agencies or joint agencies established by the municipal councils.

(2) The administrative contract for the formation of a joint administrative agency and joint agency shall determine the following:

1) the local authorities participating in the activities of a joint administrative agency or joint agency (hereinafter contracting parties);

2) the local authority, in the composition of which the joint administrative agency or joint agency is being formed;

3) the functions which the joint administrative agency or joint agency is authorised to perform;

4) the procedure for entry into and amendment of the administrative contract;

5) the rights and obligations of the contracting parties in the management and financing of and organising supervision over the joint administrative agency or joint agency;

6) the conditions of and procedure for the acceptance of new contracting parties to the joint agency or joint administrative agency and the termination of the membership;

7) the bases for dissolution of the joint administrative agency or joint agency;

8) other terms and conditions arising from the Acts, which are essential or, in the opinion of the contracting parties, necessary for the organisation of the performance of an administrative duty.

(3) All the municipal councils of the local authorities participating in the activities of a joint administrative agency or joint agency approve the statutes of the joint administrative agency or joint agency, which set out the following with regard to the joint administrative agency or joint agency:

1) the name, location, area of activities, legal status and service area and designate the seal and procedure for use of the symbols of the relevant local authorities;

2) the principal activities, purpose of the activities and functions;

3) the procedure for the issue of administrative acts by the joint administrative agency;

4) the rights and obligations of the officials and employees;

5) the procedure for the formation of the board and election of the chairman of the board, and the rights, obligations and rules of procedure of the board;

6) the procedure for the appointment to or release from office of the head of the agency, and the rights and obligations of the head of the agency;

7) the structure and, if necessary, the rights and obligations of the structural units;

8) the financing, and the procedure for the preparation and approval of the budget;

9) the management, administration and reporting, and the procedure for supervision over the performance of functions;

10) the procedure for reorganisation and dissolution, including the term for giving advance notice of termination of the administrative contract, unless the administrative contract and the participation in the activities of the joint administrative agency or joint agency are terminated unilaterally.

(4) Supervisory control over the activities of a joint administrative agency and joint agency is organised pursuant to the procedure provided in § 66¹ of this Act and an internal audit system is implemented pursuant to the procedure provided in § 48¹ of this Act by the municipal administration of the local authority in whose composition the joint administrative agency or joint agency has been formed.

(5) The membership in a joint administrative agency or joint agency is terminated as of the beginning of a budgetary year. An advance notice of the request to terminate the membership is given to the other contracting party in writing at least by 1 April of the year preceding the termination of the contract, unless the administrative contract prescribes a longer term for cancellation of the administrative contract.

(6) The membership in a joint administrative agency or joint agency terminates automatically in case of a local authority participating in the activities of the joint administrative agency or joint agency that has materially violated the contract and has not eliminated the violation within a reasonable additional term set out in the administrative contract. Material violation of the contract includes primarily the non-performance of the principal obligations arising from the contract, including where the contracting party has not participated in the financing of the activities of a joint administrative agency or joint agency to the extent provided in the administrative contract or an annex thereto or where the contracting party has repeatedly failed to comply with the precept of a person exercising supervision and has not eliminated the violation within a reasonable additional term. In such case the time limits specified in subsection 5 of this section are not taken into account.

.

(7) The Public Service Act and the requirements for rural municipality or city officials apply to officials working at joint administrative agencies.

(8) The activities of joint administrative agencies or joint agencies are financed from the budgets of the local authorities participating in the co-operation. The scope of the specific functions to be performed through the joint administrative agencies and joint agencies and of the financing is agreed upon separately each year and is confirmed in an annex to the administrative contract.

§ 62³. Management of joint administrative agencies and joint agencies

(1) A permanent board comprising the representatives of the municipal councils of the relevant local authorities and of experts (hereinafter board) is formed for the strategic management and coordination of the activities of a joint administrative agency or joint agency.

(2) The board consists of a chairman, deputy chairman and members. The board members are appointed by municipal administrations pursuant to the procedure provided in the statutes of a joint administrative agency or joint agency. The composition of the board is approved by the municipal council of the local authority in the composition of which the joint administrative agency or joint agency has been formed, in concert with all the local authorities participating in the activities of the joint administrative agency or joint agency.

(3) Upon management of a joint administrative agency or joint agency, the board is competent to:

1) approve and amend the budget and action plan;

2) approve the report on implementation of the budget;

3) make a proposal to the municipal council of the local authority that gave the authorisation to perform a function by an administrative contract for conducting an audit pursuant to the procedure provided in § 48 of this Act.

(4) In addition to the provisions of subsection 3 of this section, the board is competent to make proposals to the local authorities participating in the activities of a joint administrative agency or joint agency:

1) on the amendment of the administrative contract for the formation of the joint administrative agency or joint agency and on the establishment of the statutes, and approval and alteration of the structure and rules of procedure;

2) on the appointment to and release from office of the head of the joint administrative agency, and on the approval and release from office of the head of the joint agency;

3) on increasing the financing of the services provided by the joint administrative agency or joint agency;

4) on improving the quality and efficiency of the services provided by the joint administrative agency or joint agency;

5) on improving the division of duties between the local authorities participating in the activities of the joint administrative agency or joint agency;

6) on changing the activities of the joint administrative agency or joint agency, and on the addition and exclusion of members.

(5) The work format of the board is a meeting. The meeting shall be called by the board chairman or deputy chairman when necessary. Meetings have a quorum if over one-half of the membership of the board participates. Minutes shall be taken of meetings of the board.

(6) The board has the right to receive from the joint administrative agency or joint agency and from the local authorities participating in its activities the information and documents necessary for its work.

(7) Other rights and obligations, and the specific work procedures of the board shall be stipulated in the statutes of a joint administrative agency or joint agency.

§ 62⁴. International co-operation among local authorities

(1) The municipal council, the municipal administration, and administrative agencies have the right, within the limits of their competence, to co-operate with all other local authorities outside Estonia and to enter into contracts with them. Administrative agencies inform the municipal council of such co-operation.

(2) A local authority has the right to become a member of international organisations or to co-operate with them.

(3) In its relations with international organisations, a local authority is represented by the municipal council or a representative appointed by the municipal council.

(4) Contracts to be entered into are reviewed and approved by the municipal council if their performance involves expenditures from the rural municipality or city budget or if other financial obligations are assumed.

§ 63. Association of local authorities

(1) An association of local authorities (hereinafter association) is an association formed to represent and protect the common interests or to perform common functions of municipalities and cities.

(2) The association operates as a non-profit association, and its members can be local authorities. The Non-profit Associations Act is applied to the activities of the association, taking account of the specifications provided in this Act.

§ 63¹. County association of local authorities

(1) A county association of local authorities (hereinafter county association) may be established jointly by more than one half of the local authorities in the county.

(2) A local authority may belong to only one county association at a time.

(3) The objective of a county association is to contribute to the balanced and sustainable development of the county through joint activities among the local authorities in the county, to preserve and promote the cultural traditions in the county, to represent the county and its members, and to protect the common interests of its members, as well as to promote co-operation among the local authorities in the county and create opportunities for its members to better perform their functions prescribed by law.

(4) The name of a county association must refer to the county whose local authorities belong to that association and must include an appendage in Estonian “omavalitsuste liit” [association of local governments].

§ 63². Regional association of local authorities

(1) Local authorities which belong to the composition of the territory of two or more counties may form a regional association of local authorities (hereinafter regional association). To form a regional association, more than one half of the local authorities from each county must be members of it.

(2) The objective of a regional association is to contribute to the balanced and sustainable development of the region through joint activities among the local authorities in the region, to preserve and promote the cultural traditions in the region, to represent the region and its members, and to protect the common interests of its members, as well as to promote co-operation among the local authorities in the region and create opportunities for its members to better perform their functions prescribed by law.

(3) The name of a regional association must refer to the region whose local authorities belong to that association and must include an appendage in Estonian “omavalitsuste liit” [association of local governments].

(4) A local authority may simultaneously belong to one county association and one regional association.

§ 63³. National association of local authorities

(1) More than one half of the local authorities in Estonia may jointly form a national association of local authorities (hereinafter national association).

(2) The objective of the national association is to contribute to the overall development of rural municipalities and cities through joint activity of local authorities, to represent its members and protect their common interests, as well as to promote co-operation among members and create opportunities for them to better perform their functions prescribed by law.

§ 63⁴. Requirements for articles of association of association

(1) The articles of association of an association must comply with the requirements provided in the Non-profit Associations Act.

(2) In addition, the articles of association of an association must set out:

1) the functions of the association;

2) the bodies of the association;

3) the bases and procedures for determining representation of members at the general meeting and in other bodies;

4) the principles governing the establishment of membership fees and the participation of members in the acquisition and use of the assets of the association and in the performance of the functions of the association;

5) performance control and financial control of the activities of the association, and the means and procedures for addressing identified deficiencies.

§ 63⁵. Requirements for membership of association

(1) The members of an association are local authorities.

(2) If the articles of association of an association stipulate that, when determining the representation of members in the bodies of the association or in other cases, the proportion of the number of residents of the local authorities that are members of the association must be taken into account, the articles of association specify also the conditions and procedure for determining the number of residents or other bases for representation. If not provided in the articles of association, the number of residents of the local authority based on data from the population register as of June 1 of the year of the most recent municipal council elections is taken as a basis.

(3) An association may not refuse to admit a local authority that meets the requirements for membership to the association.

(4) If the number of members of an association decreases below the number specified in subsection 1 of § 63¹ or subsection 1 of § 63² of this Act, and the number of members cannot be increased to the required level within six months of such a decrease, the activities of the association are terminated.

(5) Upon entry into force of an alteration of administrative-territorial organisation of local authorities, the membership in an association is transferred to the newly formed local authority if all of the former merged or joined local authorities were members of the association.

(6) The proportion of representation in the bodies of an association for a local authority formed as a result of alteration of administrative-territorial organisation is determined based on the number of residents of the newly formed local authority, unless the articles of association provide for other proportional bases for determining representation.

(7) If not all of the local authorities that have merged or joined were members of the same association prior to the entry into force of the alteration of administrative-territorial organisation, their membership status terminates upon the entry into force of the alteration of administrative-territorial organisation of the local authorities.

(8) A list of the members of an association must be attached to the application for entry in the non-profit associations and foundations register. In the event of admission of a member to the association, their leaving from the association, their exclusion, or transfer of membership status, the association must immediately submit a notice to that effect to the registrar of the non-profit associations and foundations register.

§ 63⁶. General meeting of association

(1) The highest body of a non-profit association is the general meeting of its members.

(2) All local authorities that are members of an association may participate in the general meeting of the association through a representative. In cases provided in the articles of association of the association, a member may have more than one representative.

(3) The general meeting adopts resolutions on all management matters of the non-profit association which are not placed within the competence of the management board or another body of the non-profit association by law or the articles of association.

(4) Each member of the association appoints its representative to the general meeting for the term of authority of the municipal council of the local authority. A substitute is appointed for each representative. The representative of the local authority and their substitute are appointed from among the members of the municipal council or municipal administration. The municipal council may recall the representative or their substitute for any reason and appoint a new representative or substitute.

(5) Resolutions of the general meeting are adopted by a majority of votes in favour of the representatives participating in the general meeting of the association. Each representative has one vote. The law or the articles of association may prescribe a greater majority requirement for the adoption of certain resolutions, or may prescribe that a resolution is adopted if no representative votes against it.

(6) The majority of votes of members specified in the Non-profit Associations Act is, in the case of an association, deemed to be the majority of votes in favour referred to in subsection 5 of this section.

§ 63⁷. Functions of association and financing their performance

(1) An association represents the local authorities that are its members as a whole and protects the common interests of its members in their dealings with state agencies, other persons, and international organisations.

(2) A county association may form a joint regional representation with another association, other associations, or a co-operation body referred to in subsection 2 of § 61 of this Act, and matters relating to such representation are decided in accordance with its articles of association.

(3) An association has the right to file a complaint with an administrative court to protect the common interests of its members.

(4) The association may, by agreement with a local authority, perform local government functions even without a specific authorisation under the law, unless otherwise provided by law and unless a specific local government body has been designated by law to perform such functions. The general meeting of the association must give its consent to the entry into a corresponding administrative contract with the local authority.

(5) A state or local government function related to the exercise of official authority may be assigned to an association only if there is a specific authorisation under the law. This provision does not apply to decisions regarding the use of assets and funds provided for in the budget of a rural municipality or city if the municipal council has delegated such decision-making to the association.

(6) A local function assigned to a local authority by law or on the basis of law may be assigned to an association, unless otherwise provided by law and unless a specific local government body has been designated by law to perform the function.

(7) The performance of local government functions assigned to an association by law is supported from the state budget.

(8) A state function assigned to a local authority by law or on the basis of law may be assigned to an association upon agreement between the association, the local authority, and a government agency, by means of an administrative contract, provided that the relevant authorisation is provided by law.

(9) An association performs state functions under an agreement with a government agency only if none of the local authorities belonging to the association objects.

(10) Expenses related to the performance of state functions assigned to an association by law or on the basis of law are covered from the state budget.

(11) The activities of an association are financed from:

1) membership fees;

2) support, appropriations from local authorities, and donations;

3) income generated from the statutory activities of the association;

4) in cases provided by law or on the basis of law, appropriations from the state budget.

(12) An association submits its annual report in accordance with subsection 5 of § 36 and subsection 3 of § 78 of the Non-profit Associations Act, without including information on its principal activity.

§ 65. Relations between local authorities and state bodies

(1) Relations between local government bodies and state government agencies are based on law and contract.

(2) Local government bodies may not delegate the functions and competence related to the exercise of official authority which have been assigned to them by law to state government authorities, unless otherwise provided by law.

(3) Municipal councils and associations of local authorities have the right to submit proposals to the Government of the Republic for the adoption or amendment of Acts and other legislation.

(4) Local authorities are consulted in a timely and appropriate manner in the planning and resolution of all issues which directly pertain to them.

(5) Representatives of the national association and the Government of the Republic hold negotiations with the objective to agree on the following in accordance with the procedure provided in the State Budget Act:

1) the functions of local authorities and their self-governing or national nature;

2) initiation of significant policy measures with long-term effects;

3) amendments to legislation and financing arrangements.

§ 65¹. State supervision over compliance with rules established by municipal council

(1) Local authorities exercise state supervision over compliance with the rules provided in clauses 36¹ and 36² of subsection 1 of § 22 of this Act, as well as with the requirements and procedure provided in clause 36⁷ of subsection 1 of § 22 of this Act.

(2) In the event of failure to comply with a compliance notice, the upper limit of the non-compliance levy for each imposition thereof in accordance with the procedure provided in the Substitutional Performance and Non-Compliance Levies Act is 6,400 euros.

(3) Local authorities may, for the purpose of exercising the state supervision provided in this section, apply the special state supervision measures provided in §§ 30 and 32 of the Law Enforcement Act on the basis and in accordance with the procedure provided in the Law Enforcement Act. Local authorities may apply the special state supervision measures provided in §§ 50–53 of the Law Enforcement Act to counter an immediate threat. In the case of supervision over compliance with the rules on keeping pet animals, the provisions of §§ 52 and 53 of the Law Enforcement Act do not apply, taking account of the specifications provided in § 65² of this Act.

§ 65². Assumption of obligation of proper keeping of pet animals

(1) In the event of a material or repeated violation of the requirements of the rules provided in clause in clause 36² of subsection 1 of § 22 of this Act, particularly if the violation poses an immediate threat to a person’s life or health, a local authority has the right to assume the obligations of the pet animal keeper related to the proper keeping of the pet animal, and to remove the pet animal from its current location and place it in a facility designated for the keeping of animals.

(2) In the event of assuming the obligation related to the proper keeping of a pet animal, the local authority applies the bases and procedures provided in sections 4–7 of § 64, §§ 64² and 64⁸ of the Animal Protection Act, as well as in the Substitutional Performance and Non-Compliance Levies Act, applying substitutional performance and taking account of the specifications provided in this Act.

§ 65³. Provision of services related to operation of websites of rural municipalities and cities

(1) A local authority may authorise, by means of an administrative contract, a state agency responsible for the provision of information and communication technology development and management services to perform the tasks of providing hosting, administration, development, and maintenance services for the relevant website of the rural municipality or city.

(2) The state agency specified in subsection 1 of this section, with which a local authority has entered into an administrative contract, must provide the local authority with hosting, administration, development, and maintenance services for the operation of the website of the rural municipality or city. The state agency may charge a fee for the provision of these services.

§ 66. Supervision and inspection of activities of local authorities

(1) The Ministry of Justice and Digital Affairs exercises supervision over the activities of a local authority pursuant to the procedure provided by the Government of the Republic Act.

(2) The National Audit Office inspects the activities of a local authority pursuant to the National Audit Office Act.

(3) The Chancellor of Justice exercises supervision over the conformity of the legislative or regulatory instruments of rural municipalities and cities with the Constitution of the Republic of Estonia and the Chancellor of Justice Act.

§ 66¹. Supervisory control

(1) Supervisory control is control exercised by the municipal administration over the legality and purposefulness of the activities of rural municipality and city administrative agencies, their officials, and of the agencies under the administration of rural municipality and city administrative agencies and of their heads.

(2) In the course of exercising supervisory control, the municipal administration has the right to:

1) issue a precept for the elimination of deficiencies in a legal instrument or act;

2) suspend the performance of an act or the validity of a legal instrument;

3) invalidate a legal instrument.

(3) Resolutions passed by way of supervisory control must be reasoned.

(4) The implementation of a legal instrument or performance of an act of a rural municipality or city administrative agency and of their official, and of the head of an agency under the administration of a rural municipality or city administrative agency may be suspended for up to ten working days for the supplementary control of the legality and purposefulness of the legal instrument or act, or for the collection of necessary supplementary information, including for obtaining explanations from the issuer of the legal instrument or the performer of the act.

(5) Upon the suspension of the implementation of a legal instrument or the performance of an act by way of supervisory control, the running of the period established by law, or legislation issued for implementation on the basis thereof, or other legislation for the performance of a given act shall be suspended.

(6) The municipal administration repeals a legal instrument or act of the rural municipality or city government administrative agency and of their official, and of the head of an agency under the administration of a rural municipality or city administrative agency if the legal instrument or act:

1) is not in conformity with the Constitution of the Republic of Estonia, other Acts, legislation issued for implementation on the basis thereof, or rural municipality or city legislation;

2) clearly does not comply with the principles of local government; or

3) causes inexpedient use of the property or budgetary funds of the rural municipality or city.

(8) Legal instruments and acts for which the conditions for issue are provided by law, or legislation issued for implementation on the basis thereof, may not be repealed or invalidated on the grounds of inexpediency.

(9) Supervisory control on the basis of this Act is not exercised over the legal instruments issued and acts of the officials who perform supervisory duties of government agencies.

§ 66². Violation of rules for maintenance and excavation operations and failure to perform duties

(1) Violation of the rules for maintenance and excavation operations established on the basis of clause 36¹ of subsection 1 of § 22 of this Act and failure to perform duties established on the basis of § 36 of this Act, if it causes a danger to human life or health or natural environment, is punishable by a fine of up to 100 fine units.

(2) The same act, if committed by a legal person, is punishable by a fine of up to 1300 euros.

§ 66³. Violation of rules for keeping pet animals

Violation of the rules for keeping per animals established on the basis of clause 36² of subsection 1 of § 22 of this Act, if this negligence has caused proprietary damage or physical harm to humans, is punishable by a fine of up to 200 fine units.

§ 66⁴. Proceedings

(2) The following extra-judicial bodies conduct proceedings in matters of misdemeanours provided for in §§ 66² and 66³ of this Act:

1) a rural municipality or city government;

2) the Police and Border Guard Board.

(3) The Environmental Board shall conduct extra-judicial proceedings in the matters of the misdemeanours provided for in § 66² of this Act.

§ 66⁵. Accrual of fines

If a municipal administration is the extra-judicial body which has imposed a cautionary fine or fine, the cautionary fine or fine imposed for misdemeanours provided for in §§ 66² and 66³ of this Act is transferred into the budget of the rural municipality or city which made the decision.

§ 67. Entry into force of Act

(1) Sections 1–5, 7, 10, 12–15, 23–26, 31, 33–37, 40–42, 50, 51, 56–58, 62–64 and 66 of this Act enter into force as of the date of publication of this Act in the Riigi Teataja. Subsection 2 of § 55 of this Act enters into force as of 1 January 1997. Other sections of this Act enter into force as of the date of the announcement of the results of the first municipal council elections following the passage of this Act.

(2) If municipal council elections do not take place or the election results are not announced in a local authority, a representative of the local authority of the county to the county assembly specified in subsection 1 of § 59 of this Act shall be elected by the previous membership of the municipal council.

§ 68. Status of towns and independent cities

Upon the entry into force of this Act, towns obtain the status of rural municipalities and independent cities obtain the status of cities.

§ 69. Termination of authority of municipal councils

The authority of the current memberships and members of rural municipality, town, city and county councils terminates on the date the results of the first municipal council elections following the entry into force of this Act are announced.

§ 70. Term of authority of county governors and county governments

The authority of county governors, assistant county governors and counsellors to county governments the appointment to office of whom was confirmed by the current memberships of the county councils terminates on the date the results of the first municipal council elections following the entry into force of this Act are announced.

§ 70¹. Continuation of service of rural municipality and city secretary

The requirements provided for in subsection 2 of § 55 of this Act do not apply to rural municipality or city secretaries appointed before 1 March 2011 who continue service as at 1 January 2011 as the rural municipality or city secretaries of the same local authority.

§ 70³. Exception to implementation of Chapter 8 of this Act

In case of rural municipality districts or city districts formed on the basis of Chapter 8 of this Act and in case of representative bodies created in rural municipality districts or city districts for representing the interests of their residents, which have been formed on the basis of the rural municipality or city statutes before 1 June 2016, the version of this Act in force on 1 June 2016 may be applied until the time of announcement of the results of the municipal council elections in 2017.

§ 70⁴. Specification for application of subsection 3 of § 6¹ and subsection 1 of § 37¹ of this Act

(1) Municipal councils must decide on granting the function of planning the development of the county to the co-operation body specified in subsection 3 of § 6¹ of this Act no later than on 1 February 2018.

(1¹) If the co-operation body designated under subsections 2 and 3 of § 6¹ of this Act no longer meets the requirements specified in subsection 3 of the same section or if a new co-operation body has been nominated, the municipal administrations must inform the Ministry of Regional Affairs and Agriculture about a decision on the termination of the activities of a co-operation body and change of the co-operation body, and send a joint notice together with respective municipal council resolutions of local authorities by the 1st day of August of the current year. The functions specified in subsection 1 of § 6¹ of this Act can be performed via the new co-operation body from the beginning of the subsequent calendar year.

(1²) In the event specified in subsection 1¹ of this section, the former co-operation body shall perform the duties specified in subsection 1 of § 6¹ of this Act until the end of the calendar year.

(1³) If the municipal administrations have not given notice about a decision on the change of a co-operation body by the 1st day of August of the current year, the functions specified in subsection 1 of § 6¹ of this Act are performed by the existing co-operation body until the end of the subsequent calendar year.

(2) Local authorities must adopt the county development strategy specified in subsection 1 of § 37⁴ of this Act no later than on 15 January 2019.

(3) Until the entry into force of the strategy specified in subsection 2 of this section, the county development strategy established earlier by an order of the county governor shall be force.

§ 70⁵. Specifications for application of the restriction on acting as member of revision committee

Subsections 2² and 2³ of § 48 of this Act shall be applied as of the date of announcement of the results of the regular municipal council elections in 2021.

§ 70⁶. Specifications for adoption of development plan and budget strategy

In 2020, the development plan and the budget strategy shall comprise at least four coming years as at 1 December.

§ 70⁷. Specification for application of clause 1² of subsection 2 of § 19 of this Act

A municipal council member who works at an administrative agency of the same rural municipality or city based on an employment contract as at 20 July 2021, shall notify the rural municipality or city secretary within three working days after said date, whether he or she wishes to participate in the work of the municipal council or continue working at the administrative agency of the same rural municipality or city based on an employment contract. If the person wishes to continue working at the administrative agency or does not notify within said term that he or she, his or her authority as a municipal council member is suspended.

§ 70⁸. Application of subsection 2 of § 55

(1) A rural municipality or city secretary appointed after 1 January 2028 must meet the requirements provided in clause 1 or 2 of subsection 2 of § 55 of this Act.

(2) A rural municipality or city secretary who has been issued prior to 1 March 2011 a certificate of compliance with the professional qualification requirements for rural municipality and city secretaries by the Rural Municipalities and City Secretaries Professional Qualifications Committee formed by the Government of the Republic, but who does not meet the requirements provided in clause 1 or 2 of subsection 2 of § 55 of this Act, and who was appointed to the office of municipal or city secretary before 1 January 2028, may continue to serve in that office in the same local authority.

§ 71. Statutes of local authorities

The statutes of local authorities shall be approved or brought into accordance with this Act within three months from the date that the appointment to office of the rural municipality or city government is confirmed by the municipal council formed as a result of the next municipal council elections.

§ 72². Election of chairmen and deputy chairmen of municipal council committees

The requirements provided for in subsections 1¹–1³ of § 47 of this Act shall apply in the election of the chairmen and deputy chairmen of the municipal council committees and the formation of the compositions of the committees as of the date of announcement of the results of the regular municipal council elections in 2017.

§ 72³. Member of Riigikogu serving on municipal council

A member of the Riigikogu may perform the duties of the member of a rural municipality or city council as of the date of announcement of the results of the regular municipal council elections in 2017.

§ 72⁴. Member of the European Parliament serving on municipal council

A Member of the European Parliament may perform the duties of the member of a rural municipality or city council as of the date of announcement of the results of the regular municipal council elections in 2021.

§ 73. Repeal of legislation

[Omitted from this text.]

§ 74. Settlement of disparities

In the case of disparities in the provisions specified in § 67 of this Act and the Estonian Soviet Socialist Republic Principles of Local Government Act and provisions of other Acts and legislation, the provisions of this Act apply.

§ 75. Accordance of legislation

The Government of the Republic shall submit proposals to bring Acts and other legislation into accordance with this Act.