Chapter 8: Local Self-Governance

Article 148. Right to Local Self-Governance

1. Local self-governance shall be the right and capacity of local self-government bodies to decide, under their own responsibility, on public issues of community importance –in the interests of residents of the community and in compliance with the Constitution and laws.
2. Local self-governance shall be exercised in communities.

Article 149. Community

1. Community shall be the entirety of residents within one or several settlements.
2. Community shall be a legal person under public law.

Article 150. Elections of Local Self-Government Bodies

1. Local self-government bodies shall be the Council of Elders and the head of community, which shall be elected for a term of five years. Direct or indirect election of the head of community may be prescribed by the Electoral Code. In case of direct election of the head of community, the principles of electoral law prescribed by Article 7 of the Constitution shall apply.
2. The procedure for elections of local self-government bodies shall be prescribed by the Electoral Code.

Article 151. Community Tasks and Powers of Local Self-Government Bodies

1. Local self-government bodies shall have own powers, for the purpose of performing the mandatory and voluntary tasks of a community, as well as those delegated by the State. The mandatory tasks of a community shall be prescribed by law, whereas voluntary tasks shall be prescribed upon decisions of the Council of Elders of a community.
2. The powers of state bodies may, for the purpose of more effective implementation thereof, be delegated by law to local self-government bodies.
3. The Council of Elders of a community shall, as prescribed by law, adopt secondary normative legal acts subject to enforcement within the territory of the community.
4. The head of community shall execute the decisions of the Council of Elders of the community, shall carry out the general management of the staff of community. The head of community shall be responsible before the Council of Elders of the community.
5. The powers of local self-government bodies shall be prescribed by law.

Article 152. Direct Participation in the Administration of Community Affairs

1. Residents of a community may directly participate in the administration of community affairs, by resolving public issues of community importance through a local referendum.
2. The procedure for holding a local referendum, as well as other ways of direct participation of residents of a community in the administration of community affairs shall be prescribed by law.

Article 153. Community Ownership

1. A community shall have the right of ownership over land as well as other property.
2. The land located in the territory of a community shall be under the ownership of the community, except for the land owned by the State as well as by natural and legal persons.
3. The Council of Elders of a community shall dispose of the community property as prescribed by law.

Article 154. Community Budget, Local Taxes, Duties and Payments

1. A community shall have its own budget which shall be approved by the Council of Elders of the community upon submission of the head of community.
2. The procedure for community budget revenue formation and expenditures shall be prescribed by law.
3. The Council of Elders of a community shall establish local taxes and duties within the scope of the rates prescribed by law.
4. The Council of Elders of a community may establish payments to be made to the community budget for the services rendered by the community.

Article 155. Financing of Community

1. With a view of performing the mandatory tasks of a community, the law shall prescribe tax and non-tax sources which are necessary for ensuring the implementation of these tasks.
2. The powers delegated to communities by the State shall be subject to mandatory financing from the State Budget.
3. The State shall, to the extent possible, allocate funds aimed at ensuring the proportional development of communities.

Article 156. Merger and Division of Communities

In view of public interests, communities may be merged or divided by law. When adopting a relevant law, the National Assembly shall be obliged to hear the opinion of those communities.