on the legal status of ulaanbaatar, the capital city of mongolia

chapter one

general provisions

Article 1.Purpose of the Law

1.1.The purpose of this law is to determine the special and other functions of Ulaanbaatar, the capital city of Mongolia, and to regulate relations concerning the development policy, management, organizational features, satellite cities, special economic zones, communications with the highest organ of state and central state administrative organizations, other administrative and territorial units, legal entities and organizations.
Article 2.Legislation on the legal status of Ulaanbaatar, the capital, city of Mongolia

2.1.The legislation on the legal status of Ulaanbaatar, the capital city of Mongolia shall consist of the Constitution of Mongolia, Law on Administrative and Territorial Units of Mongolia and their Governance, this law, and other legislative acts enacted in conformity

with them.

Article 3.The scope of the law

3.1.The relations related to the legal status of Ulaanbaatar the capital city of Mongolia, other than those regulated by this law, shall be regulated by the relevant laws.

Article 4.Legal basis and organization of Ulaanbaatar, the capital city of Mongolia

4.1.Ulaanbaatar, the capital city of Mongolia /hereinafter referred to as the "Capital city"/, stated in Article 13.1 of the Constitution of Mongolia, is a city with legal status, functions especially stipulated by law, management and organization.

4.2.As for the administrative and territorial units, the capital shall be divided into districts, and a district shall be divided into Khoroos. A Khoroo shall have a sectional organization.

4.3.The capital city shall have a satellite city.

Article 5. Development policy for the capital city

5.1.In determining the development policy of the capital city, in addition to Article 5 of the Law on Development Policy, Planning and Its Management, the principle of creating conditions for the capital city to occupy a leading position in all spheres of social and cultural life and ensuring the right of citizens to live in a healthy and safe environment shall be followed.

5.2.The urban development and planning policy of the capital city shall be directed at developing the heritage of national architecture in combination with common standards of modern urban development.

5.3.The capital city will implement land acquisition measures within the framework of the capital city development policy and planning, and the required funds shall be reflected in the state and capital budgets every year.

Article 6.The territory, plots of land, and the zoning of the capital city

6.1.The capital shall have a territory with its borderline approved by the State Great Khural.

6.2.The capital city shall have its measured plots of land as determined by the general development plan of the city and approved by the Citizens' Representative Khural of the Capital.

6.3. Plots of land specified in Article 6.2 of this law shall have zones, and the criteria for establishing plots of land zones shall be determined by the Government upon the proposal of the Governor of the Capital City and the Mayor of Ulaanbaatar.

6.4. The Citizens' Representative Khural of the Capital shall determine the land zones and rules of the zones in accordance with the criteria specified in Article 6.3 of this law.

6.5.In places where the population density limit specified in city planning and construction norms and rules is exceeded, no new land possession or use rights or construction permits shall be granted for purposes other than the construction of engineering and social infrastructure structures, public roads, fields, and green spaces.

Article 7.Emblem

7.1.The capital city shall have an emblem.

7.2. The design of the emblem of the capital city and its use regulation shall be approved by the Citizens' Representative Khural of the Capital.

chapter two

functions and rules of the capital city

Article 8.Functions of the capital city

8.1.As an administrative and territorial unit, the capital shall implement the special and other functions specified in this law in addition to the provisions of Article 24.1 of the Law on Administrative and Territorial Units of Mongolia and their Governance.

8.2.The capital city shall implement the following special functions:

8.2.1.to support the proper functioning of the State Great Khural, the President, the Government, the Supreme Court, the Constitutional Court, other state agencies, diplomatic missions of foreign countries, and international organizations;

8.2.2.unless otherwise provided by law, organization of national and international festivals, conferences, art, sports and other events;

8.2.3.management and coordination of international passenger and cargo transportation and logistics activities;

8.2.4.preservation and safeguarding of the national historical and cultural monuments in the capital;

8.2.5.construction of international roads passing through the territory of the capital, its maintenance, repair, and related activities;

8.2.6.investment of the capital city development policy;

8.2.7.repair, maintenance, cleaning, service and protection of buildings, highways, roads, green spaces, lighting and other infrastructure required for the implementation of the special functions of the capital city specified in this law.

8.3.The capital city shall implement the following other functions:

8.3.1.management of the capital city development fund;

8.3.2.human resources policy of the capital, its planning, and implementation;

8.3.3. environmental safety;

8.3.4.food supply, agriculture, production programs, general regulation;

8.3.5.re-planning of cities and towns;

8.3.6.maintenance, repair, planning and monitoring of capital roads;

8.3.7.centralized water supply of drinking and domestic water for the population;

8.3.8.decentralized engineering supply of water and heat in the capital;

8.3.9.coordination and control of activities of the Association of Housing Owners;

8.3.10.regulation and control of outdoor and mobile advertising;

8.3.11.projects and measures for reducing traffic congestion, increasing the type, quality, and access of public transportation services, and solving other problems in the capital city;

8.3.12.funds and loan interest payments of the capital for projects and measures implemented in the capital with foreign loans and assistance;

8.3.13.protection and landscaping of the rivers in the territory of the capital;

8.3.14.projects and measures of landscape and protection of the protected areas, natural complexes, reserves, and monuments in the territory of the capital for creating a travel and leisure environment for citizens;

8.3.15.the use and distribution of housing owned by the city;

8.3.16.other functions provided by law.

8.4.The government may transfer to the capital the right to possess and use the state property required for the implementation of special functions specified in Article 8.2 of this law in accordance with legislation.

Article 9.Regulation of the capital city

9.1.The matters not specifically regulated by law may be regulated by the regulation of the capital city.

9.2.The regulation of the capital city shall be approved by the Citizens' Representative Khural of the Capital.

9.3.The regulation of the capital city shall be followed at least three months after registration in accordance with Article 67.2 of the General Administrative Law, on the basis of promulgation.

chapter three

economic relations of the capital city

Article 10.The economic basis of the capital city

10.1.The economic basis of the capital city consists of assets created by state and capital investments, as well as capital property, tax and non-tax income, and funds of the capital development fund.

10.2.It is the duty of the state to strengthen the capital city's economic capacity and guarantee its independent development, and these relations shall be regulated by the Law on Administration, Territorial Units of Mongolia and their Governance, this law, and other relevant legislation.

Article 11.The budget of the capital

11.1.The capital shall have an independent budget as stated in Article 16.1 of the Law on Administration, Territorial Units of Mongolia and Their Governance.

11.2.Funds required for the implementation of the special functions specified in Article 8.2 of this law shall be financed from the state and local budgets, and other functions specified in Article 8.3 shall be financed from the local budget.

Article 12.The property of the capital

12.1.The capital shall have properties.

12.2.The property of the capital shall be the assets to be possessed, used, and disposed of in accordance with the law for the purpose of implementing the functions specified in Article 24.1 of the Law on Administration, Territorial Units of Mongolia and their Governance, and Article 8 of this law.

12.3.The ownership rights of the state property required for the implementation of the special functions specified in Article 8.2 of this law may be transferred to the capital in accordance with legislation.

Article 13.The securities of the capital

13.1.The capital city may issue securities according to the conditions and procedures specified in the law.

13.2. Issuance of capital securities shall be governed by the Law on Debt Management and other related laws.

Article 14.Granting a concession

14.1.Projects and programs to be implemented in the capital through concession agreements shall be regulated in accordance with the Law on Concessions.

Article 15.The capital-owned legal entity

15.1.The capital may have legal entities with local ownership or with local ownership participation.

15.2.Work and services related to the implementation of the functions of the capital and the capital city, which cannot be performed by a private legal entity, may be performed by the legal entity specified in Article 15.1 of this law on the basis of a contract.

Article 16.The capital city tax

16.1.The capital city shall have a tax, and the tax shall be determined by law.

16.2.The Citizens' Representative Khural of the Capital shall determine the rates of taxes, fees and charges within the rights and limits set by tax laws.

17.The Capital Development Fund

17.1.The capital may have a capital development fund. Funds from the Capital Development Fund shall be used for the following activities:

17.1.1.to develop the city standards and culture;

17.1.2.to promote the development of smart and digital cities;

17.1.3.to promote production and innovation;

17.1.4.to promote investment;

17.1.5.to promote public and private partnership;

17.1.6.to develop urban development and infrastructure;

17.1.7.to promote green development;

17.1.8.to develop tourism;

17.1.9.to reduce risks.

17.2.The fund specified in Article 17.1 of this law shall be a part of the capital's budget.

17.3.The Citizens' Representative Khural of the Capital shall approve the rules for formation, disposal and monitoring of the funds specified in Article 17.1 of this law and shall supervise its implementation.

17.4.It is prohibited to grant loans and create debts and receivables from the Capital Development Fund.

Article 18.Investment in the capital city

18.1.The person referred to in Article 3.1.2 of the Law on Investment may invest in the assets of a profit-making legal entity owned by the capital, in tangible or intangible form.

18.2.Proposals for investment submitted in accordance with Article 18.1 of this law shall be decided by the Citizens' Representative Khural of the Capital or with its authorization-the Governor of the capital and the Governor of Ulaanbaatar City.

Article 19.Promoting investment in the capital city

19.1.In order to protect the rights and legal interests of investors operating in the capital city, and cooperate with them to develop the capital city, the Council of Investors shall be established, attached to the Governor of the Capital City and the Mayor of Ulaanbaatar.

19.2.The council specified in Article 19.1 of this law shall have non-staff members, and the composition and regulation of the council shall be approved by the Governor of the Capital City and the Mayor of Ulaanbaatar.

19.3.The management of the capital city shall provide the following guarantees to investors who have invested in accordance with Article 18.2 of this law:

19.3.1.to follow the procedures and grounds specified in the General Administrative Law when changing, revoking, or canceling the decision specified in Article 18.2 of this law;

19.3.2.to provide information related to investment;

19.3.3.unless otherwise provided by law, to not change the decision regarding land possession and use;

19.3.4.to issue special permits stipulated by law for activities related to investment;

19.3.5.other guarantees provided by law.

19.4.Unless otherwise provided by law, the administration of the capital city shall provide the following guarantees to the legal entity that received the investment specified in Article 18.1 of this law in order to ensure the benefit of the investment in the capital city:

19.4.1.to determine working hours to be flexible;

19.4.2.depending on the type, form, and purpose of the investment, to grant financing for the expenses specified in the relevant regulations for the public interest;

19.4.3.other guarantees provided by law.

19.5.The administration of the capital city shall apply the option provided for in Article 42 of the General Law on Administration when deciding on guarantees specified in Articles 19.3 and 19.4 of this law.

19.6.The Citizens' Representative Khural of the Capital shall decide based on a proposal whether to provide the investor in the capital city with the guarantees specified in Articles 19.3 and 19.4 of this law, applying criteria of the priorities of the development of the capital city.

chapter four

administration of the capital city and its power

Article 20.Administration of the capital city and its feature

20.1.The administration of the capital city shall have the following organization:

20.1.1.the Citizens' Representative Khural of the Capital;

20.1.2.the Governor of the capital and the Governor of Ulaanbaatar City.

20.2.The Governor of the capital shall be the Governor of Ulaanbaatar City and shall have its office.

20.3.The administration of the capital city shall adhere to Article 31 of the Law on Administration, Territorial Units of Mongolia, and their Governance when making decisions.

20.4.The government may determine the classification and rank of managerial, executive, and assistant positions of administrative organizations of the capital and districts differently from the classification ranks of other equivalent positions of local administration.

Article 21.Powers of the Citizens' Representative Khural of the Capital

21.1.The Citizens' Representative Khural of the Capital shall exercise the following powers in addition to the powers provided by the Law on Administrative and Territorial Units of Mongolia and their Governance and by other laws:

21.1.1.to hear the report of the Governor of the Capital City and the Mayor of Ulaanbaatar on the implementation of the special functions specified in Article 8.2 of this law;

21.1.2.to discuss and resolve the matters pertaining to other functions specified in Article 8.3 of this law, and evaluate the report on the implementation of the Governor of the capital and the Mayor of Ulaanbaatar;

21.1.3.to approve rules, regulations, standards, and instructions regarding the implementation of the capital city functions in accordance with the law;

21.1.4.to determine the capital and public plot of land, its size, and the usage rules;

21.1.5.within the limits established by law, to determine the rate of taxes, fees and charges considering the zoning of the capital's plot of land, the type and form of services, and the expenditure on services;

21.1.6.other powers provided by law.

Article 22.Powers of the Governor of the capital city and the Mayor of Ulaanbaatar

22.1.The Governor of the capital city and the Mayor of Ulaanbaatar shall exercise the following powers in addition to the powers provided in the Law on the Administrative and Territorial Units Mongolia and their Governance, and by other laws:

22.1.1.to organize the implementation of the special functions specified in Article 8.2 of this law, to be responsible for the results before the Government, and to present them to the Citizens' Representative Khural of the Capital;

22.1.2.to prepare a draft decision with calculations and studies related to other functions specified in Article 8.3 of this law and to present it for the discussion of the Citizens' Representative Khural of the Capital;

22.1.3.to organize the implementation of the decisions made by the Citizens' Representative Khural of the Capital on the issues specified in Article 22.1.2 of this law and to be responsible for the results;

22.1.4.within the framework of the implementation of the functions specified in the law, to make proposals to the Government and participate in Government meetings;

22.1.5.within the framework of the implementation of the functions specified in the law, to initiate and develop draft decisions of the Government in accordance with the relevant regulations, and submit them to the Government meeting, present them for discussion;

22.1.6.to initiate projects and programs for the development of the capital city, to give opinions and evaluations on projects and programs, and request support from the Government for the implementation of such projects and programs;

22.1.7.to appoint and discharge the Mayor of the satellite city of the capital city upon presentation to the Citizens' Representative Khural of the Capital;

22.1.8.to establish and enforce the working hours of business entities and organizations engaged in production and services in the territory of the capital;

22.1.9.to represent the capital domestically and abroad;

22.1.10.to appoint and discharge the representative of the capital city abroad;

22.1.11.to establish a professional advisory council with non-staff members, to approve its composition and regulation;

22.1.12.to transfer the powers to perform the duties stipulated by law to the General Manager of Ulaanbaatar city;

22.1.13.other powers provided by law.

22.2.The Governor of the capital city and the Mayor of Ulaanbaatar may transfer his/her duties specified in Articles 24.1.7, 24.1.9, 24.1.10, 24.1.11, 24.1.12, 24.1.13, 24.1.14, 24.1.15, 24.1.16, 24.1.17, 24.1.18, 24.1.19, 24.1.21, 24.1.22 of the Law on Administrative and Territorial Units of Mongolia and their Governance and Articles 8.3.3, 8.3.4, 8.3.6, 8.3.7, 8.3.8, 8.3.9, 8.3.10, 8.3.11 and 8.3.12 of this law to the General Manager of Ulaanbaatar City on the basis of an agreement.

22.3.The agreement specified in Article 22.2 of this law shall include the scope, limits, reporting and monitoring procedures of the powers transferred from the Governor of the capital and the Mayor of Ulaanbaatar.

22.4.The transfer of powers in accordance with Article 22.2 of this law shall not ground the release of the Governor of Ulaanbaatar from the responsibility.

22.5.The Governor of the capital city and the Mayor of Ulaanbaatar shall issue orders within his/her powers.

Article 23.Guarantee of the powers of the Governor of the capital city and the Mayor of Ulaanbaatar

23.1. The Governor of the capital city and the Mayor of Ulaanbaatar shall be provided with the same guarantees as a member of the Government when exercising its powers.

Article 24.The General Manager of Ulaanbaatar city and its powers

24.1.The Governor of the Capital City and the Mayor of Ulaanbaatar shall appoint and discharge the General Manager of Ulaanbaatar City /hereinafter referred to as the "General Manager"/ who is responsible for implementing the business functions of the capital city, ensuring uniformity, and coordinating the activities of related organizations.

24.2.The General Manager shall report his/her job to the Governor of the Capital City and the Mayor of Ulaanbaatar.

24.3.The General Manager shall exercise the following powers:

24.3.1.to organize the activities for ensuring the uniformity of the city businesses;

24.3.2.to coordinate the activities of organizations responsible for business affairs;

24.3.3.to cooperate with citizens, business entities, and organizations on the basis of a contract on business affairs;

24.3.4.to supervise and assign duties to the activities related to the business affairs of the district management within the authority granted by the Governor City and the Mayor of Ulaanbaatar;

24.3.5.to appoint and discharge employees of the Office of the Governor of Ulaanbaatar;

24.3.6.other powers provided by law.

24.4.The General Manager shall communicate directly with a district governor within the scope of the power provided by this law.

24.5.Relevant officers, citizens, and legal entities shall fulfill the duties assigned by the General Manager related to ensuring the uniformity of city businesses.

24.6.The General Manager shall issue orders within his/her authority and shall use a stamp, seal, and official letterhead in accordance with the regulations by law.

Article 25.Office of the Mayor of Ulaanbaatar

25.1.The structure of the office of the Mayor of Ulaanbaatar and the number of staff shall be determined by the Government upon the proposal of the Mayor of Ulaanbaatar.

25.2.The Mayor of Ulaanbaatar shall have an office in charge of municipal affairs to assist him/her in the implementation of his/her functions, and its establishment, reorganization, and dissolution shall be decided by the Citizens' Representative Khural of the Capital.

25.3.The Office of the Mayor of Ulaanbaatar is separate from the Office of the Governor of the Capital. The head of the Office of the Mayor of Ulaanbaatar City shall be the General Manager.

25.4.The Office of the Mayor of Ulaanbaatar shall perform the following functions:

25.4.1.to provide professional, methodological, technical, and organizational assistance and ensure the working conditions of the Mayor of Ulaanbaatar;

25.4.2.to provide necessary information to the Mayor of Ulaanbaatar;

25.4.3.to research the business matters of the capital city, draft decisions, organize and monitor the implementation of decisions;

25.4.4.to organize and monitor the implementation of public services of the city for citizens and legal entities;

25.4.5.other functions provided by law.

chapter five

COMMUNICATION of the CAPITAL CITY ADMINISTRATION WITH

OTHER persons

Article 26.Communication of the Citizens' Representatives Khural of the Capital with the Government and a state central administrative body

26.1.The Citizens' Representatives Khural of the Capital City shall communicate with the Government and a state central administrative body in accordance with Article 70 of the Law on Administrative and Territorial Units of Mongolia and their Management.

Article 27.Communication of the Governor of the Capital and the Mayor of Ulaanbaatar with the Government

27.1.The Governor of the Capital and the Mayor of Ulaanbaatar shall communicate with the Government in the following manner:

27.1.1.to ensure the implementation of the Government decisions;

27.1.2.to make proposals to the Government on the matters related to the functions provided by law, participate in Government meetings, express a position, initiate matters concerning his/her power other than initiating laws, and communicate directly with the Prime Minister of Mongolia and members of the Government.

Article 28.Communication of the Governor of the Capital and the Mayor of Ulaanbaatar with a state central administrative body

28.1.The Governor of the Capital and the Mayor of Ulaanbaatar shall make a joint decision with a state central administrative body to solve the economic and social problems of the capital and organize its implementation.

28.2.A state central administrative body shall obtain an opinion of the Governor of the Capital and the Mayor of Ulaanbaatar on matters related to the mutual interests of the capital city and its residents when making sectoral and inter-sectoral decisions based on the requirements set forth in Articles 61 and 62 of the General Administrative Law.

28.3.A state central administrative body shall support and cooperate with the capital city in the implementation of its special functions provided in this law.

28.4.A state central administrative body shall obtain an opinion of the Governor of the Capital and the Mayor of Ulaanbaatar to make a decision regarding the use of land for citizens, business entities, and organizations in the territory of the capital city based on the relevant law and in conformity with the general and partial general plans of the city development and the zoning rules of plots of land.

Article 29.Communication of the Administration of the capital city with the other administrative and territorial units and a country-level city

29.1.The administration of the capital city may cooperate with the administration of other administrative and territorial units and a country-level city on the economic and social matters of the capital city.

29.2.The administration of administrative and territorial units and a country-level city shall assist in providing goods and services to the population of the capital city, the organization of national festivals, state ceremonies, and national and international events in the capital in accordance with legislation and the Government decisions.

29.3.In order to develop the capital city and form the social and economic basis, industrial, agricultural and supply organizations may be established in the territory of other administrative and territorial units by the decision of the Government and may be used on the basis of a contract.

Article 30.Communication of the Administration of the capital city with an administration of a district

30.1.A district administration shall provide assistance in implementing the special functions of the capital city.

30.2.In the event of a force majeure situation in the performance of a district's functions provided by law, the capital city shall provide human resources, technical and economic assistance.

30.3.The capital may transfer the property required for the implementation of its functions to a district or take it over from a district by the law.

30.4.The administration of the capital city shall obtain an opinion of the administration of the district when making decisions on matters related to the mutual interests of the residents of the district.

30.5.The opinion of the Governor of the Capital and the Mayor of Ulaanbaatar on determining the structure and the limit of the number of staff of a District Governor's Office, taking into account the district governor's opinion, the population, and service access shall be discussed and resolved by the Government meeting.

Article 31.Communication with a business entity and organization

31.1.Projects and programs for the development of the capital may be implemented through public-private partnerships, and these relations shall be regulated by relevant laws.

31.2.The administration of the capital city may perform some of its functions specified in Articles 8.2 and 8.3 of this law through a privately owned legal entity based on a contract, and finance the related expenses in full or in part.

31.3.A legal entity operating in the territory of the capital, regardless of the form of ownership, is responsible for following the general development plan of the city, city standards, and complying with decisions made by the administration of the capital city by the law.

Article 32. Rights and obligations of a resident of the capital city

32.1.A resident of the capital city shall have the following rights except for exercising basic rights and freedom stipulated in the Constitution of Mongolia and other laws:

32.1.1.to get information about the decision of the capital city administration;

32.1.2.to express an opinion on the development and of general and partial general plans for urban development, zoning rules for plots of land and participate in its implementation;

32.1.3.to make proposals and contribute to solving the social and economic problems of the capital city;

32.1.4.to be provided with infrastructure services if living in the residential area specified in the general and partial general plans of the city development and zoning;

32.1.5.other rights provided by law.

32.2.A resident of the capital city shall have the following obligations:

32.2.1.to fulfill the decisions made by the administration of the capital city;

32.2.2.to reside in the residential area specified in the general city development plan;

32.2.3.to comply with the rules and standards of the capital city;

32.2.4.to use the public property properly and keep the environment clean;

32.2.5.to furnish his/her residence and surroundings in accordance with the general and partial general plans of city development and zoning rules;

32.2.6.other obligations provided by law.

32.3.A visitor in the capital city is obliged to comply with this law, other laws, and decisions made by the capital city's administration in conformity with the law.

Article 33.Promoting the activities for developing the capital city

33.1.The selected citizen and legal entity who have contributed to the development of the capital city in the following directions shall be rewarded:

33.1.1.to increase green space;

33.1.2.to landscape the environment, repair and improve public property;

33.1.3.to ensure environmental safety;

33.1.4.to solve traffic jams, waste, environmental pollution, and other problems;

33.1.5.other directions provided by law.

33.2.The Citizens' Representative Khural of the capital shall approve the procedures for selecting, promoting and rewarding citizens and legal entities who have contributed and achieved results in accordance with Article 33.1 of this law.

chapter six

satellite CITy AND SPECIAL ECONOMIC ZONES of THE CAPITAL CITY

Article 34.A satellite city of the capital city and its organizational basis

34.1.A satellite city of the capital city /hereinafter referred to as "satellite city"/ forms a unified system of plots of land, population, economy, infrastructure, transportation, and logistics with the capital city, and is a centralized residential land that has strategic importance in its geographical location and performing the special functions of the capital city, and has infrastructure which forms a city.

34.2.A satellite city may be established in the capital and other administrative and territorial units, or across several administrative-territorial units.

34.3.A satellite city plots of land shall not be overlapped with the plots of a country or local level city.

34.4.A satellite city shall have its rules. Matters related to satellite cities other than those regulated by law shall be regulated by rules approved by the Government.

Article 35.Establishing a satellite city

35.1.A satellite city shall be established by the State Great Khural based on the submission of the Government considering the following conditions of strategic importance:

35.1.1.the impact on the economic and social development of the country, the capital and the local area;

35.1.2.the importance of tourism, cultural services and industry;

35.1.3.geographical location for national and international transport and logistics;

35.1.4.the infrastructure in international relations, trade and production network;

35.1.5.the impact on decentralization of the capital city by increasing employment and jobs;

35.1.6.the possibility of developing in campus form by diversifying a center of science, innovation, professional training and production.

35.2.Name of the city, the scale of the plots and the location shall be stated in a resolution to establish a satellite city.

Article 36.Functions of a satellite city

36.1.The functions of a satellite city include the following matters:

36.1.1.implementation of capital city development policy and planning;

36.1.2.city landscaping, maintenance and protection of public leisure parks and green space;

36.1.3.drinking and household water supply;

36.1.4.automobile road maintenance and protection;

36.1.5.parking lot planning, maintenance and protection;

36.1.6.housing and utility services;

36.1.7.monument maintenance and protection;

36.1.8.maintenance and protection of lighting;

36.1.9.other functions provided by law.

36.2.A satellite city shall implement the functions specified in Articles 8.2 and 8.3 of this law if necessary.

Article 37.Management, organization and guarantee of activity of a satellite city

37.1.The management of a satellite city consists of the Governor and the Satellite City Council with an advisory function.

37.2.The Governor of a satellite city shall be responsible for directing and organizing the daily activities of the satellite city. The Governor of a satellite city shall be appointed by the Governor of the capital and the Mayor of Ulaanbaatar based on open selection and hearing.

37.3.The Satellite City Council shall consist of seven to eleven members, and the members of the council shall be openly selected and appointed from the management of the administrative and territorial unit, representatives of legal entities that are influential in the society and economy of the satellite city, and residents. The Governor of a satellite city shall be the head of the satellite city council.

37.4.The procedure for selection and work of the Satellite City Council members shall be approved by the Governor of the satellite city.

37.5.The Governor of a satellite city shall have an office, and the structure and the number of staff of the office shall be determined by the Governor of the Capital and the Mayor of Ulaanbaatar.

37.6.The budget of the Satellite City Governor's Office shall be approved by specifically reflecting it in the budget of the capital.

37.7. The Governor of a satellite city shall issue orders within his/her authority and shall use a stamp, seal, and official letterhead in accordance with the regulations by law.

Article 38.Special economic zone of the capital city

38.1.The capital city may have a special economic zone (hereinafter referred to as "special zone"). Special zones in a satellite city shall be established by the decision of the Government.

38.2.The capital city may have no more than five special zones.

Article 39.Directions for establishing a special zone

39.1.A Special zone may be established exclusively or in combination in the following areas of activity:

39.1.1.information technology and innovation;

39.1.2.tourism, culture and leisure;

39.1.3.greenhouse and warehousing industry;

39.1.4.light and food industry;

39.1.5.repair, service and assembly of aircraft.

Note: - Light and food industry specified in Article 39.1.4 of this law does not include alcoholic beverages and tobacco production.

Article 40.Area, location and plan to establish a special zone

40.1.The size and location of the area for the establishment of special zones shall be determined by the Government.

40.2.The general development plan of the special zone shall be approved by the Citizens' Representative Khural of the Capital.

40.3.The general development plan specified in Article 40.2 of this law shall include the following matters:

40.3.1.special zone development program;

40.3.2.land and infrastructure program;

40.3.3.whether to permit resident population.

40.4.In the event that the special zone is not for the residents, the Governor of the special zone shall solve the matter together with the management of the administrative unit.

40.5.A land possession and use right in the special zone shall be granted to a business entity through open auctions and project selection.

Article 41.The Governor of a special zone

41.1.The Governor of a special zone shall be the Governor of the satellite city of that special zone locates.

Article 42.Tax support in a special zone

42.1.A business entity that is permanently located in the special zone and with stable activity may be provided the following types of tax support from its date of commencement of business:

42.1.1.land fee;

42.1.2.immovable property tax;

42.1.3.capital city tax.

42.2.The tax support specified in Article 42.1 of this law shall be regulated by the relevant tax legislation.

Article 43.The non-tax supports provided in a special zone

43.1.The following non-tax supports may be provided to the business entity permanently located in the special zone and with stable activity, from its date of commencement of business:

43.1.1.to provide a certain amount of support for current expenses such as electricity, heat, and rental fee;

43.1.2.to simplify documents, permits and requirements for doing business;

43.1.3.to grant soft loans for the development of small and medium-sized enterprises and services on a priority basis.

43.2.Matters related to encouraging and providing non-tax support to business entities operating in special zones shall be regulated by the rules approved by the Citizens' Representative Khural of the capital.

Article 44.Infrastructure in a special zone

44.1.The infrastructure in a special zone shall be planned and developed in accordance with Article 40.3.2 of this law.

44.2.The infrastructure of a special zone may be financed by the state and local budgets, capital securities, capital development funds, private sector investments, foreign loans and aids.

44.3.Tax and non-tax support specified in this law may be provided for the use of gray water, the increase of green space, and the establishment of eco-infrastructure with renewable energy.

Article 45.Registration of business entities in a special zone

45.1.Business entities conducting business activities in a special zone shall register the following documents at the Office of the Satellite City:

45.1.1.a letter of application, a copy of the state registration certificate of the legal entity, and a receipt of payment of the registration fee for a legal entity of Mongolia;

45.1.2.a letter of application, a copy of a document certifying the foreign legal entity, a power of attorney, receipt of payment of the registration fee for a foreign legal entity.

45.2.The Governor's office of a special zone shall review the document specified in Article 45.1 of this law within five working days after receiving it, and if it finds that it is in conformity with the requirements specified in the relevant regulations, it shall be registered in the registration of legal entities in the special zone and issue a certificate; and the certificate shall be valid only in that special zone.

45.3.A legal entity operating in a special zone shall be removed from the registration of legal entities in a special zone on the following grounds:

45.3.1.if the main production and services specified in the contract and regulations are not commenced within one year from the date of issuance of the legal entity registration certificate in the special zone;

45.3.2.the activity has been interrupted or stopped for more than 12 consecutive months due to a reason of its own responsibility even the activity was commenced;

45.3.3.if there is a court decision on liquidation

chapter seven

miscellaneous

Article 46.Transparency of the capital city activities

46.1.In accordance with the Law on Information Transparency and the Right to Access Information, the decisions of the Capital City administration, the capital's budget, and activities shall be transparent and open, and shall be posted on the website within three working days after the relevant decision is issued, providing the public with the opportunity to access to it.

Article 47.Foreign cooperation of the capital city

47.1.The capital city shall cooperate with capitals of foreign countries and other cities and international organizations in the following matters within the scope stipulated by the legislation:

47.1.1.to enter into a cooperation agreement;

47.1.2.to establish an international association of cities and become a member of it;

47.1.3.to exchange of resident representatives of the capital city;

47.1.4.other matters provided by law.

47.2.The capital city shall obtain a permit from the state central administrative body in charge of foreign relations when implementing foreign cooperation specified in Article 47.1 of this law.

Article 48.The capital city day and awards

48.1.The Capital City Day shall be celebrated every year.

48.2.A citizen who has made a special contribution to the development of the capital city will be honored with the title of "Honorary Citizen of the Capital City" and granted other awards. The matters of honoring the "Honorary Citizen of the Capital City" shall be decided by the Citizens' Representative Khural of the capital based on the submission by the Governor of the capital and the Mayor of Ulaanbaatar.

48.3.The procedure for honoring "Honorary Citizen of the Capital City" and granting other awards shall be approved by Citizens' Representative Khural.

Article 49.The capital city research organization

49.1.The research and analysis center with the function of studying the problems related to the history and prospects of the development of the capital city, urbanization, urban development, population and environment shall operate, attached to the Governor of the capital and the Mayor of Ulaanbaatar.

Article 50.Liability for the violators of the law 

50.1. In case the actions of a civil servant violating this law have no criminal nature, they shall be subject to liability specified in the Civil Service Law.

50.2.Any person or legal entity violating this law shall be subject to liability specified in the Criminal Law or the Law on Violations.

Article 51.Entry into force of the law

51.1.This law shall enter into force on January 1, 2022.

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA ZANDANSHATAR.G