(2024.10.15-ны өдрийн орчуулга)                                            Unofficial translation

Entry into force date: June 1, 2025

LAW OF MONGOLIA

June 5, 2024          State Palace, Ulaanbaatar city

ON THE LEGAL STATUS OF CITIES AND VILLAGES

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law is to determine the legal basis of the management and organization of cities and villages in the administrative and territorial units of Mongolia, common procedures for their establishment, reorganization, and dissolving, criteria for determining the rank of the cities, and to regulate relations between management of cities and villages with the administrative and territorial units' management, and business entities, organizations and residents.

Article 2.Legislation on the legal status of cities and villages

2.1.The legislation on the legal status of cities and villages shall consist of the Constitution of Mongolia, the Law on the Administrative and Territorial Units of Mongolia and their Governance, this Law, and other legislation issued in accordance with these laws.

Article 3.Scope of the application of the Law

3.1.Relations, other than those regulated by the law specifically with respect to the capital city Ulaanbaatar, as well as cities and villages with national and local classifications/ranking, shall be governed by this Law.

Article 4.Cities, villages, and classification of cities

4.1.The city is a public legal entity carries out functions specifically assigned by law,  with   its own management, organization, tenure land, as well as own infrastructure and economic potential that making it up as the city, as well as it carries out certain functions transferred from the management of administrative and territorial units in accordance with legislation.

4.2.The village is a public legal entity that has at least 2,000 permanent residents, or is planned to have those number of permanent residents, is being predominantly developed in one of the sectors such as agriculture, industry, tourism, recreation, sanatorium, transport, logistics, trade, and has some characteristics of a city, also that performs certain functions transferred from the management of administrative and territorial units in accordance with legislation.

4.3.By taking into account its role and importance in the economic and social development of the state and region, its geographical location, and the characteristics of its own and administrative functions, the city shall be classified as follows:

4.3.1.the capital city Ulaanbaatar;

4.3.2.the city with state ranking;

4.3.3.the city with local ranking.

4.4.A city with at least 100,000 residents or planned to have those number of residents, the majority of whom work in the industry and service sector, has a city-forming infrastructure, and is of special importance to the country's economic and social development, shall have the state ranking status.

4.5.A city with a population of at least 30,000 or planned to have those number of  population shall have local ranking status.

4.6.The capital city Ulaanbaatar and state-ranked cities may have satellite cities.

4.7.Satellite city shall have a local ranking status.

4.8.A settlement with a permanent border port can be developed as a city or a village.

Article 5.Establishment, reorganization and dissolving of cities and villages

5.1.The issue of establishing, reorganizing, and dissolving a city shall be decided by the State Great Khural upon the submission of the Government, by taking into account of the following criteria:

5.1.1.impact and significance on national, regional and aimag's economy and social life;

5.1.2.location of the population and infrastructure for delivering social services;

5.1.3.development of roads, communications, engineering facilities and other infrastructure;

5.1.4.economic impact on the surrounding environment, and existing administration and territorial units.

5.2.The decision to establish a city shall include the proper name of the city, the size, location and boundaries of the tenure land, and the matters on transferring the functions of the administrative and territorial units to the city.

5.3.Residents of one or several administrative and territorial units may submit their initiative to establish the city to the Government through the local self-governing organization.

5.4.Relations related to the reorganization and dissolving of the city shall be regulated specifically by the Law on Urban Development.

5.5.The issue of village establishment and reorganization shall be decided by the Government based on the proposal of the aimag and capital city Citizens' Representatives' Khural or the City Council, and the decision thereof shall include the proper name of the village, the size, location and boundaries of the tenure land.

5.6.If the functions of administrative and territorial units are transferred to villages, the State Great Khural shall decide upon the submission of the proposal by the Government.

Article 6.Principles of city and village management

6.1.In addition to the principles stipulated in Paragraph 2 of Article One of the Constitution of Mongolia, the self-management of cities and villages shall adhere to the following principles:

6.1.1.to ensure the unity of state structure;

6.1.2.to combine the management of administrative and territorial units with the self-management of cities and villages;

6.1.3.to solve the problems of economic and social life independently and take responsibility;

6.1.4.to protect the rights and freedoms of residents, to ensure rule of law and public order and security;

6.1.5.to give priority to residents' suggestions and participation in solving problems;

6.1.6.to deliver public utility services to residents equally and accessibly;

6.1.7.to ensure sustainable development;

6.1.8.to support public and private partnership;

6.1.9.to provide tax and non-tax support in case of conducting the business activities in remote cities and villages;

6.1.10.to be transparent and provide residents with information;

6.1.11.to make decisions related to the organization of cities and villages, their establishment, reorganization, dissolving, and determining the ranking of cities, based on big data calculations, and use of advanced technologies.

Article 7.Jurisdiction of city and village administrations

7.1.Unless otherwise specified by law, the city shall belong to the aimag or capital city in which it is located.

7.2.Unless otherwise specified by law, the village shall belong to the soum, district, or city in which it is located.

7.3.If the city or village is located across several administrative and territorial units, the jurisdiction shall be decided by the State Great Khural.

Article 8.Charter of cities and villages

8.1.Cities and villages shall have their own charter approved in accordance with legislation.

8.2.The following relations may be reflected in the charter of cities and villages except those belonging to the Capital city:

8.2.1.use and protection of green facilities;

8.2.2.use and protection of parks;

8.2.3.trees, bushes and shrubs that can be planted;

8.2.4.sound and noise pollution control;

8.2.5.construction of a children's playground, its use and improvement;

8.2.6.use and protection of public property;

8.2.7.placing monuments, memorials, honor boards;

8.2.8.standards of fences and banisters, their construction, use, and removal;

8.2.9.planning, use and protection of pedestrian and bicycle paths and areas;

8.2.10.requirements and color solutions for the facades of apartments and buildings commissioned;

8.2.11.improvement, cleaning and services of the external environment of buildings and service providers along the road;

8.2.12.disinfection and cleaning of vehicles being used in construction activities;

8.2.13.general education school patrol;

8.2.14.culture of city residents and neighborhood association;

8.2.15.bus for transporting school children;

8.2.16.use of drones;

8.2.17.organizing public events on streets and squares;

8.2.18.relations to be served by public transportation;

8.2.19.advertising, labeling/addressing, and street equipment;

8.2.20.use and regulation of public buildings;

8.2.21.management of lost items;

8.2.22.requirements and use of pit toilets.

8.3.City and village charters shall be approved by the city and village councils and registered in accordance with the procedure specified in the General Administrative Law.

8.4.Individuals and legal entities operating in cities and villages shall follow the charter of cities and villages.

Article 9.Tenure tenure land of cities and villages

9.1.Cities and villages shall have tenure land.

9.2.The issue on determining or changing the size and boundaries of city's tenure land shall be decided by the State Great Khural upon submission by the Government, and the issue on determining or changing the size and boundaries of village tenure land shall be decided by the Government based on proposals of Citizens' Representatives' Khural of the Aimag or the Capital city, or the City council.

9.3.The tenure land of a city or village can be located across the territories of several administrative and territorial units, and if necessary, the issue on making changes in the borders of the administrative and territorial units shall be decided in accordance with the legislation.

             CHAPTER TWO

CITY AND VILLAGE GOVERNANCE, ORGANIZATION AND FUNCTIONS

Article 10.Governance structure/system of cities and villages

10.1.State and local ranking city governance shall have the following system/structure:

10.1.1.City Council;

10.1.2.City Mayor.

10.2.Village governance shall have the following system/structure:

10.2.1.Village Council;

10.2.2.Mayor of the village.

10.3.City and village Councils and Mayors shall have offices.

10.4.The city khoroolols specified in Paragraphs 11.2 and 11.3 of this Law shall have a Mayor and office.

Article 11.Organization of cities and villages

11.1.The organizational unit of the City shall the city khoroolol. The city khoroolol shall have a proper name.

11.2.State-ranked city khoroolol shall be established with at least 10,000 residents, and the boundaries of the tenure land shall be determined by the City council.

11.3.Locally-ranked city khoroolol shall be established with at least 8,000 residents, and the boundaries of the tenure land shall be determined by the City council.

11.4.Villages can be organized into khesegs.

Article 12.General functions of the city

12.1.The city shall implement the following general functions:

12.1.1.the issue of determining the rate of taxes, fees and charges within the limits set by the law;

12.1.2.planning and distribution of the city's local development fund and other fund formation, spending, reporting and control;

12.1.3.management of the city's small and medium industry development fund;

12.1.4.urban development, construction and other standards, control and regulation thereof;

12.1.5.urban tourism policy and management;

12.1.6.support for ensuring the normal functioning of the State Great Khural, the President, the Government, the Supreme Court, the Constitutional Court, state administrative and other state bodies, diplomatic representative offices of foreign countries, and international organizations;

12.1.7.unless otherwise provided by law, organization of national and international festivals, conferences, cultural, artistic, sports and other events;

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

12.1.9.preservation and protection of historical and cultural memorials;

12.1.10.construction of international and local highways, their maintenance, repair, and related activities;

12.1.11.planning, monitoring and location of roads and parking lots other than international, national and special purposes;

12.1.12.investment for implementation of city development policy;

12.1.13.repair, maintenance, cleaning, service and protection of buildings and facilities, highways, public roads and areas, green structures/facilities, lighting and other infrastructure;

12.1.14.disaster prevention activities, surrounding environment safety;

12.1.15.food supply, agriculture, and production programs, and their general regulation;

12.1.16.re-planning of cities and settlements;

12.1.17.centralized and decentralized engineering supply of city electricity and heat;

12.1.18.coordination and control of the activities of the association of apartment owners;

12.1.19.planning, operation and control of communication, electricity and heat distribution networks, clean water, sewage lines and waste water drainage facilities, flood dams, canals, and related construction and facilities thereof;

12.1.20.water, heat, electricity supply, distribution and transmission activities;

12.1.21.regulation and control of outdoor and mobile advertising;

12.1.22.projects and measures aimed at increasing the type, quality and accessibility of public transport and taxi services, and solving other problems facing to the city;

12.1.23.payment of capital and loan interest for projects and measures being implemented in the city with foreign loans and aids;

12.1.24.protection and improvements of areas with water reservoirs in city tenure lands;

12.1.25.projects and measures to beautify and protect national conservation park, natural complex area, natural reserve, national monument areas in the city's tenure land to provide an environment for residents to travel and relax;

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

12.1.27.ensuring the unity of the city economy, and coordinating the activities of the organizations in charge of the city economy;

12.1.28.cooperating with residents, business entities, and organizations on the basis of contracts on city economy;

12.1.29.registration of city property, city residents and legal entities;

12.1.30.project to be implemented by public and private partnership at the scale of the tenure land;

12.1.31.others prescribed by law.

12.2.The city shall implement the delegated/assigned functions in accordance with Paragraphs 69.1 and 69.2 of the Law on Administrative and Territorial Units of Mongolia and their Governance.

12.3.On the basis of laws and public legal agreements, the city may perform the functions of the state specified in Paragraph 27.5 of the Law on Administrative and Territorial Units of Mongolia and their Governance.

12.4.The general functions of the city specified in Paragraph 12.1 of this Law may be transferred to the city khoroolols on the basis of public legal agreements.

12.5.The city may independently resolve specific issues of economic and social life that are not specifically regulated by legislation in accordance with the Constitution of Mongolia and other laws.

Article 13.Functions of the village

13.1.The village shall implement the following general functions:

13.1.1.to provide public utility services to residents in accordance with the law;

13.1.2.to organize the work of forwarding common opinions and requests of the residents to the appropriate level of organizations and officials on the issues stipulated by the legislation and on their own initiative;

13.1.3.specific issues of economic and social life of the village to be solved independently unless otherwise specified by the law or the decision of the relevant higher authority;

13.1.4.protection, use, and regulation of hay, crops, pastures, and water points that are not owned or used by others;

13.1.5.the work of ensuring residents' participation in monitoring the environmental balance;

13.1.6.coordination of referendum and discussions with respect to the village status;

13.1.7.issues transferred from the management of the city, and administrative and  territorial units to be resolved by the village management;

13.1.8.others prescribed by legislation.

13.2.The village shall implement the delegated functions in accordance with Paragraph 69.3 of the Law on Administrative and Territorial Units of Mongolia and their Governance to the extent of its tenure land.

13.3.In addition to Paragraph 13.1 of this Law, the village may perform the functions transferred to perform the functions of the state on behalf of the state in accordance with Paragraph 27.5 of the Law on Administrative and Territorial Units of Mongolia and their Governance on the basis of laws and public legal agreements.

Article 14.Use of communication and information technology in order to support the development of cities and villages

14.1.The city and village administration shall use communication and information technology in the following ways to implement the functions of the city and village:

14.1.1.introducing advanced technologies such as innovation, big data, artificial intelligence, and the internet of things;

14.1.2.before making a decision, pre-model the decision in the online environment and calculate the result;

14.1.3.when introducing advanced technology, test it in a regulatory sandbox environment and get residents' opinions;

14.1.4.to create communication and information technology infrastructure and information systems, to ensure its continuity, reliability and cyber security, and to create opportunities for the smooth exchange of information;

14.1.5.publicly uploading the information collected in the city as open data in accordance with the Law on Transparency of Public Information.

14.2.The Government shall approve the procedure for creating and operating the regulatory sandbox environment specified in sub-paragraph 14.1.3 of this Law.

14.3.Cities and villages shall use information systems and their infrastructure that meet the requirements specified in Paragraph 29.1 of the Law on Transparency of Public Information.

Interpretation: - The term "internet of things" specified in this article means sensors, other devices, software, information networks and other components and their sets for collecting and transmitting data for the purpose of monitoring and managing things in an electronic environment.

- The term "regulatory sandbox environment" specified in this article means to test newly introduced technology-based products and services in a real environment with a limited range and for a certain period of time.

CHAPTER THREE

CITY AND VILLAGE COUNCILS

Article 15.City and Village Councils

15.1.The governing organization of a city or village shall be the Council of the city or village /hereinafter referred to as "Council"/.

15.2.The term of office of the Council shall be 4 years.

15.3.The council shall consist of members.

15.4.The member of the Council of the state-ranked city shall be elected from among the residents, and the number of members shall be determined as follows:

15.4.1.if the number of residents is up to 200,000, there shall be 21 members;

15.4.2.if the number of residents is more than 200,001, there shall be 25 members.

15.5.The members of the Council of the locally ranked city shall be elected from among the residents, and the number of members shall be determined as follows:

15.5.1.if the number of residents is up to 50,000, there shall be 11 members;

15.5.2.if the number of residents is more than 50,001, there shall be 15 members.

15.6.The members of the Village Council shall be elected from the residents, and the number of members of the Council shall be 9.

15.7.Council elections shall be regulated by relevant laws.

Article 16.Powers of the Council

16.1.The City Council shall exercise the following powers:

16.1.1.to discuss and resolve the issues determined by this Law as per the functions of the city;

16.1.2.to approve partial general plans of cities of local ranking other than those belonging to the Capital city;

16.1.3.to discuss and approve the city budget, make amendments, and approve the budget performance report upon the submission of the City Mayor;

16.1.4.to set the rates of taxes, fees and charges within the limits established by law;

16.1.5.to make a decision to establish, reorganize, dissolve a city-owned legal entity, to approve its charter, and exercise the shareholder's rights;

16.1.6.to exercise the rights of the city owner;

16.1.7.to make a decision to organize a referendum in order to ensure the common interests and participation of the residents;

16.1.8.in the event that the Citizens Representatives Khural of the aimag and the Capital City transfers its function to issue securities, upon the submission of the City Mayor, to issue securities according to the grounds and procedures specified in the law and to grant permission to obtain loans;

16.1.9.to elect, release, and dismiss the chairman of the Council;

16.1.10.to establish Council committees and working groups, elect and change chairman and members of the committee;

16.1.11.to approve the action program of City Mayor, discuss the report, and give evaluations and conclusions on his/her activities;

16.1.12.to give evaluations and opinions on the actions of the Mayor who is implementing the Council's decision;

16.1.13.to release or dismiss the Mayor on the grounds specified in this Law;

16.1.14.to approve administrative normative acts in accordance with legislation, register them in the state registry in accordance with the procedures specified in the General Administrative Law, and enforce them;

16.1.15.other powers stipulated by legislation.

16.2.The power specified in sub-paragraph 16.1.8 of this Law shall not apply to the power of the Council of the city with local ranking.

16.3.The Village Council shall exercise powers other than those specified in sub-paragraph 16.1.4 which is to set the rates of taxes, as well as in sub-paragraph 16.1.8 of this Law.

16.4.The power of the Council shall be terminated prematurely in the following cases:

16.4.1.If the majority of the total members of the Council submit an opinion that the Council is unable to exercise its powers, and a decision is made to accept this with the votes of more than two-thirds of the total members, the Council shall dissolve itself;

16.4.2.If the inaugural session has not been convened within 15 days after it was scheduled, or if the budget has not been approved within the time prescribed by law, and furthermore, if no meeting is held within 60 days after the scheduled date, the Council of a city of state ranking shall be dissolved by the Prime Minister, the Council of a city of local ranking shall be dissolved by the Governor of the respective aimag or the Capital city, or by the Mayor of a city of state ranking, the Council of a village shall be dissolved by the Governor of the respective soum or district, or by the Mayor of a city of local ranking.

16.5.In the case of premature termination of the power of the Council, irregular elections shall be scheduled and announced within 30 days in accordance with the procedure prescribed by law.

Article 17.Organization of activities of the Council

17.1.The Council may establish and have operated a committee with the functions of pre-preparing issues to be discussed at the session, making suggestions and conclusions, and reviewing the implementation of the Council's resolutions and decisions.

17.2.The committee of the Council shall be established during its term of office, and the head of the committee shall be elected from among the members of the committee.

17.3.The Council Committee shall report to the respective Council.

17.4.The Council may establish and have operated a working group with the function to develop opinions and conclusions on specific issues.

17.5.The Council shall determine the establishment of the Council's committees and working groups, the directions of their activities, their composition, and their working procedures.

17.6.It shall be prohibited to establish a political party, coalition or other units under the Council.

17.7.The Council shall use stamps, symbols, and official letter head made in accordance with the established procedure.

Article 18.Council session

18.1.The main form of organization of the activities of the Council shall be the session. The procedure of the session shall be approved by the resolution of the Council.

18.2.Within 15 days from the date of submission of the regular election results, the election committee shall convene the first/inaugural session of the city and village councils. The first session shall be chaired by the oldest member who attended the session.

18.3.Except for the first session, the Chairman of the Council shall convene a session at least seven days before the start of the session. The session shall be chaired by the Chairman of the Council or, in his/her absence, by one of the members upon the proposal of the Chairman of the Council.

18.4.If the majority of total members of the Council are present at the session of the Council, the session shall be considered valid.

18.5.It shall be forbidden for a member of the Council not to participate in the session or to leave it without a valid reason.

18.6.The regular session of the Council shall be held once a month.

18.7.An extraordinary session of the Council shall be convened by the vote of at least one third of total members, or upon the initiative of the Chairman of the Council or the Mayor of a city or village.

18.8.Committees and members shall have the right to submit proposals for discussion at the Council session on the internal organization of the Council's activities.

18.9.Proposals specified in Paragraph 18.8 of this Law shall be accompanied by calculations, studies, inquiries, and draft decisions to be issued, and shall be distributed to Council members at least three working days before the session, matters that do not meet these requirements shall not be discussed at the session.

18.10.Failure to meet the time specified in Paragraph 18.9 of this Law when the Council convenes in an emergency or urgent matters of a state, city or local characteristics, it shall not be grounds for invalidating the decision of the session.

Article 19.Decision of the Council and its veto

19.1.The Council shall issue a resolution on the issues discussed at the session, and it shall be approved by the majority vote of the members present at the respective session.

19.2.In case of making a decision related to the budget and taxes, the respective decision shall be approved by the overwhelming majority vote of total members of the Council.

19.3.The Chairman of the Council shall sign the resolution, while the chairing person of the session shall sign the resolution on the appointing and dismissal of the Chairman of the Council.

19.4.If the Council deems that it has made a decision that violates the Constitution of Mongolia, this Law, or other legislation, or that has no financial sources, the Mayor shall impose the veto on that decision.

19.5.The veto shall be imposed in writing within five working days after the date of approval of the decision, and the reasons for the veto shall be clearly indicated.

19.6.The Council shall discuss the matter in a session within 15 days after receiving the veto, and if the overwhelming majority of the members do not agree with it, the decision and its relevant articles, paragraphs and sub-paragraphs shall be entered into force.

19.7.If the entire decision of the Council is vetoed, the full effect of the decision, and if it is partially vetoed, the relevant articles, paragraphs, and sub-paragraphs shall be considered suspended until the veto is discussed and resolved.

19.8.Mayor of the city and village shall not veto the following decisions of Councils:

19.8.1.whether to accept the vetoed decision of the Mayor;

19.8.2.setting the election date for electing the Mayor;

19.8.3.appointment and release of competent persons within the power of the Council.

Article 20.Powers of the Chairman of the council

20.1.The Chairman of the Council shall exercise the following powers:

20.1.1.to schedule and make preparation for regular and extraordinary sessions of the Council;

20.1.2.to preside over the session of the Council, formalize and approve the decisions made, and organize the implementation thereof;

20.1.3.to create conditions and provide management for council committees, working groups and members to exercise their powers;

20.1.4.to receive a proposal made by the competent person to be discussed at the Council session, and to organize its discussion at the session;

20.1.5.to organize the monitoring and inspection on the implementation of the Council's decision;

20.1.6.to submit and have decided the proposal to appoint the secretary of the council;

20.1.7.to manage and organize the daily activities of the Council;

20.1.8.to organize monitoring on the implementation of action programs and policy documents of city and village Mayors;

20.1.9.to organize the resolution of applications, proposals, and complaints submitted to the Council by residents, business entities, and organizations;

20.1.10.to issue orders on matters related to the activities of the Council's office.

20.2.The chairman and secretary of the Council shall be full-time staff.

Article 21.Electing, demoting/resigning and dismissal of the Chairman of the Council

21.1.At the first session after regular elections, the Chairman of the Council shall be elected from among the members for a period of 4 years.

21.2.Council members shall have the right to nominate their names and names of other members to the Chairman of the Council.

21.3.The Chairman of the Council shall be elected by secret ballot and by majority vote of the members present at the session.

21.4.If none of the candidates receives a majority of votes in the secret ballot referred to in Article 21.3 of this Law, the two representatives with the tied votes, or with the most votes shall be included in the second round of voting. If neither of them receives a majority of votes, they shall be nominated again for the position of Council Chairman in accordance with the procedure specified in this article.

21.5.When participating in the voting, the member of the Council shall vote for only one candidate, and the candidate himself/herself shall have the right to participate in the voting.

21.6.If the members consider the implementation of the duties of the Chairman of the Council to be insufficient, he/she shall be dismissed by a majority vote of all members.

21.7.If there are grounds for dismissing the Chairman of the Council as a member of the Council specified in Article 25 of this Law, he/she may be dismissed early.

21.8.If the Chairman of the Council is dismissed or released before the term, the term of office of the newly elected Chairman shall be equal to the remaining term of the previous Chairman's term of office.

Article 22.Council member

22.1.The member of the council shall be the representative of the common interests of the residents elected to their self-governing bodies of cities and villages.

22.2.The term of office of a member of the Council shall be 4 years.

22.3.The term of office of a member of the Council begins with the approval of the resolution recognizing his/her powers and ends with the adoption of the resolution recognizing the power of the newly elected member.

22.4.The term of office of the re-elected member shall be equal to the remaining term of the member whose seat became vacant.

22.5.Council member shall meet the following requirements:

22.5.1.must have moved to the city or village and registered as a permanent resident at least 180 days before the date of voting;

22.5.2.to be free of any debt or obligation as set by a court decision;

22.5.3.to have no conviction.

22.6.The member of the Council shall have a code of ethics to follow in his/her activities, and the code of ethics shall be approved by the Council.

Article 23.Rights and duties of the council member

23.1.Council member shall have the following rights:

23.1.1.to participate in the discussion and resolution of issues with the right to interrupt;

23.1.2.to belong to the Council Committee;

23.1.3.to ask questions and get answers, make proposals, and vote on the issues under discussion;

23.1.4.to initiate and submit suggestions for discussion of specific issues at the Council session;

23.1.5.to propose to discuss the report and hearing of the official elected or appointed by the Council;

23.1.6.to explain and promote the decision of the Council to residents;

23.1.7.to ask questions and inquiries to the Mayor in connection with ensuring the implementation of the Council's decisions, protecting the rights and legal interests of residents, and solving the development of cities and villages and pressing problems thereto;

23.1.8.other rights stipulated by legislation.

23.2.Council member shall have the following duties:

23.2.1.to work in regular contact with residents, respond to their applications, suggestions, and complaints in accordance with appropriate procedures, or forward them to competent organizations and officials;

23.2.2.to refuse to participate in the discussion of the issue if there is a conflict of interest in exercising the member's rights and duties;

23.2.3.to inform the residents in regards with the work performed as a member of the Council through the website of the Council and in other ways;

23.2.4.to adhere to the law and the code of ethics of the Council member.

Article 24.Prohibition in the activities of a member of the council

24.1.The following things shall be prohibited in the activities of a council member:

24.1.1.to hold managerial positions or official posts in any organization or structural unit within the scope of the responsibilities of the Mayor of a city or village, and that is accountable for its activities and receives funding from them;

24.1.2.to disclose or use for personal gain any information related to state, organization, or individual secrets that was learned during the exercise of the council member's rights and duties;

24.1.3.without justifiable reason, to intentionally fail to attend a Council session or leave it early;

24.1.4.others prescribed by legislation.

Article 25.Termination of the office of term of the Council member

25.1.The term of the office of a Council member shall be terminated prematurely on the following grounds:

25.1.1.deceased;

25.1.2.filed his/her own request for release;

25.1.3.a medical statement has been issued stating that due to illness, it is no longer possible to exercise its powers;

25.1.4.the commission of a crime was established by a valid court decision;

25.1.5.moved from that city;

25.1.6.appointed to a core civil servant's position;

25.1.7.violation of sub-paragraph 24.1.1 of this Law;

25.1.8.repeated or serious violating actions or in actions of the code of ethics of a member of the council.

25.2.The issue of dismissal of a member of the Council in the cases specified in sub-paragraphs 25.1.2, 25.1.3, 25.1.5, and 25.1.6 of this Law, and demoting in the cases specified in sub-paragraphs 25.1.7 and 25.1.8 of this Law shall be discussed and resolved at the Council session, and  shall be demoted in the case specified in sub-paragraph 25.1.4 of this Law.

25.3.If the conditions specified in sub-paragraph 25.1.1 of this Law occur, the term of the office of the member shall be deemed terminated.

Article 26.Guarantee of activity of the council member

26.1.During the term of office, the member of the Council shall use badge and official letters head, and their model and application procedure shall be approved by the Council.

26.2.The budget of the Council shall include the member's salary, allowances, transportation, official appointments, and clerical expenses.

26.3.It shall be the responsibility of the relevant organizations and officials to provide support and assistance to the members of the council in exercising their powers.

26.4.Any official, political party, or other organization shall not interfere or impose duties on exercising of powers by the members of the Council.

Article 27.Office of the Council

27.1.The Council shall determine the structure, staff and salary fund of the Council's office in accordance with the standards approved by the Government.

27.2.The Secretary of the Council shall be the head of the office.

27.3.The Council's office shall use official letter head and symbols made in accordance with the established procedure.

Article 28.Council budget

28.1.The Council shall have a budget, and the budget shall be managed by the Head of the Council's office.

28.2.The budget specified in Paragraph 28.1 of this Law shall consist of the budget of the Council's activities and its office.

CHAPTER FOUR

MAYOR OF CITY, VILLAGES AND CITY KHOROOLOL

Article 29.Mayor of the city

29.1.The executive management on ensuring the daily activities of the city with management and implementing the decisions of the Council shall be the Mayor of the city.

29.2.The Mayor of a state-ranked city shall be elected by the residents of the respective city and certified by the Prime Minister.

29.3.Unless otherwise provided by law, the Mayor of a local-ranked city shall be elected from among the residents of that city and certified by the Governor of an aimag or the Capital city, or the Mayor of a state-ranked city.

29.4.A state-ranked city shall have a deputy Mayor to ensure the implementation of legislation and government decisions within the tenure land, to support the Mayor in the performance of his duties, and to perform his duties in his temporary absence.

29.5.The deputy Mayor of the city with the state ranking shall be appointed and dismissed by the Prime Minister based on the proposal of the Mayor of that city.

29.6.The term of office of the City Mayor shall be 4 years.

29.7.If the term of office of the City Mayor ends prematurely, the term of office of the newly elected or appointed City Mayor shall be equal to the remaining term of office of the previous City Mayor.

29.8.The City Mayor shall have an office with the function of assisting him in exercising his powers.

29.9.The election of Mayors of cities and villages shall be regulated by relevant laws.

Article 30.Powers of the City Mayor

30.1.The City Mayor shall exercise the following powers:

30.1.1.to organize the implementation of the functions of the city, to be responsible and present the results before the City Council;

30.1.2.to develop a draft decision with calculations and studies related to the functions of the city and discuss it at the Council session;

30.1.3.to organize activities to implement decisions made by the Council and be responsible for the results;

30.1.4.to request support from the Government and submit proposals within the framework of the implementation of the functions stipulated by the law;

30.1.5.to appoint and dismiss the Mayor of the satellite city as presented to the Council, unless otherwise provided by law;

30.1.6.to establish and enforce the working hours of business entities and organizations engaged in production and services in the city;

30.1.7.to represent the city at home and abroad;

30.1.8.to establish a non-vacant professional council with advisory rights, and approve its composition and working procedures;

30.1.9.to transfer the powers stipulated by law to the city khoroolols;

30.1.10.to approve procedures for the limited participation and support of cargo, distribution, and delivery service vehicles in city traffic;

30.1.11.to approve procedures for providing municipal utility services and monitoring them;

30.1.12.to organize the work of approving and implementing the general and partial general plans of the city development in accordance with the procedures prescribed by the law;

30.1.13.to implement the functions of the general budget administrator in accordance with the legislation and manage the budget;

30.1.14.to be issued data and reports on finance, economy, employment, resources and land use necessary for the social and economic development of the city by relevant organizations and officials of the city;

30.1.15.to dispose of city property within the scope of the powers granted by law, and solve the problems of creating them newly and leasing them;

30.1.16.to develop the issue of privatization of city property in accordance with the interests of city residents and resolve it according to the procedure prescribed by law;

30.1.17.to provide assistance and support in the creation of production and services aimed at fulfilling the needs of residents;

30.1.18.to direct the activities of city-owned or city-property-dominant legal entities, appoint and release their management, and exercise the rights of shareholders;

30.1.19.to organize the development and approval of the city's land management plan for the current year;

30.1.20.to make a decision on ownership, possession, and use of land in accordance with legislation, the general and partial general plans for the development of the city, and the land management plan of the city for the current year;

30.1.21.to make proposals on the land management plan of the administrative and territorial units under the jurisdiction of the city;

30.1.22.to be used city water reserves in accordance with established procedures;

30.1.23.to organize the implementation of city sanitation, and hygiene-disinfection measures;

30.1.24.to organize the works on developing and implementing measures to protect and restore the city's environment and green areas;

30.1.25.to have resolved the problem of ceasing the construction and use of buildings that violate city hygiene and norms upon submission of them to the competent organization;

30.1.26.to organize and monitor the implementation of city charter;

30.1.27.to organize and involve business entities and organizations on the basis of contracts, as well as the residents, in city improvement works;

30.1.28.to establish the working hours of city trade and service organizations;

30.1.29.to meet hygiene requirements in commercial and service offices of the city;

30.1.30.to organize city sales, exhibitions and other service events;

30.1.31.to implement the program to improve the employment level of city residents;

30.1.32.to support, manage and monitor the city's education, culture, health, social protection, physical and sports activities;

30.1.33.to organize and implement measures to protect the health of city residents, prevent diseases, and provide conditions for their living and engaging in operations;

30.1.34.to organize and monitor the implementation of partial general plans and construction projects in accordance with the general development plan of the city approved by the Council, and monitor their implementation;

30.1.35.to act as a principal in the construction and maintenance of urban industrial infrastructure objects;

30.1.36.to make proposals on granting permits for construction of buildings and structures on city-owned tenure land, and accept and supervise residential and civil-purpose buildings and structures that are being put into operation;

30.1.37.to cooperate with law enforcement organizations to protect public order and combat crime, and provide assistance to them.

30.1.38.to process suggestions, petitions, complaints of residents and issues related to protecting their interests, unless otherwise specified by law;

30.1.39.to file lawsuits regarding common interests and property of city residents;

30.1.40.to make a proposal to create a city award;

30.1.41.to have approved the city symbol by the Council;

30.1.42.to communicate and cooperate with cities and villages of other countries in accordance with the procedures prescribed by legislation;

30.1.43.to appoint and dismiss the head of the Mayor's office;

30.1.44.to appoint and dismiss the Mayor of the city khoroolol;

30.1.45.to organize the use and protection of plants, animals, water, springs, and natural resources in the tenure land;

30.1.46.to protect historical and cultural memorials of the city and organize their use in accordance with legislation;

30.1.47.to approve the schedule of public transport services in the city, supervise the activities of other transport organizations serving the residents and the organization of passenger services at railways and airports;

30.1.48.to organize city trade, household and residential services, public utility services;

30.1.49.to regulate city traffic flow, determine the location of parking lots, and organize their maintenance;

30.1.50.to organize the implementation of the decision of the City Council made regarding the request of residents' associations, business entities, and organizations regarding the protection, proper usage, and possession of specific types of natural resources of the tenure land;

30.1.51.to organize monitoring of the fulfillment of the obligations stipulated in legislation regarding the protection and restoration of the environment of business entities and organizations engaged in the activities of using and possessing the land, prospecting, exploring, and exploiting minerals, and to take measures to cease the committed violations;

30.1.52.to explain and promote the social and economic importance of taxes within the tenure land, to support and cooperate with the activities of the tax authorities in order to ensure the implementation of tax legislation;

30.1.53.other functions provided by law and transferred on the basis of public legal agreements.

30.2.The operating costs of the Mayor shall be financed from the budget allocated to the respective city.

30.3.The Mayor shall report the activity report of the current year to the City Council within the first quarter of the following year.

30.4.The Mayor's activity report shall be open to the public.

30.5.The Mayor of the city shall, within the scope of his authority, issue orders in accordance with the legislation when exercising his powers stipulated in this Law and other legislation.

30.6.If the orders issued by the Mayor of the city on the implementation of his/her or delegated functions does not comply with the legislation, the Prime Minister shall cancel the decision of the Mayor of the city with the state rank, and the Mayor of the province or the capital city shall cancel the decision of the Mayor of the city with the local rank

If the City Mayor's order issued regarding the implementation of their own or delegated functions is inconsistent with the legislation, the Mayor shall annul it themselves, or the decision of the Mayor of a city with state ranking shall be annulled by the Prime Minister, and the decision of the Mayor of a city with local ranking may be annulled by the Governor of the respective aimag or the Capital city.

30.7.The Mayor of the city shall have a stamp, badge, and official letter head issued in accordance with the established procedure.

Article 31.Office of the City Mayor

31.1.The structure and staff of the City Mayor's office shall be determined by the City Mayor in accordance with the standards set by the Government. The City Mayor's office shall have departments and divisions.

31.2.The City Mayor shall have an organization in charge of municipal affairs to assist him in the implementation of his duties, and the matter on its establishment, reorganization, and dissolution shall be decided by the City Council.

31.3.The City Mayor's Office shall carry out the following functions:

31.3.1.to provide with professional, methodological, technical and organizational assistance and working conditions to the Mayor of the city;

31.3.2.to provide the Mayor with the necessary information;

31.3.3.to study the problems of urban business, to develop draft decisions, to organize the implementation of decisions, to monitor their implementation;

31.3.4.to deliver legislation, decisions of the Government, Council, and Mayor to relevant organizations and officials, organize their implementation, monitor their performance, and calculate results and fulfillment;

31.3.5.to organize the provision of public municipal services to residents and legal entities, and supervise their implementation;

31.3.6.to keep the Mayor's records, and to organize the work of resolving petitions, suggestions and complaints submitted by organizations and citizens;

31.3.7.to organize the preparation, retraining and qualification improvement of the human resources of the city management, their working conditions and ensuring the social guarantees within the framework of legislation;

31.3.8.to organize work to ensure the unity of city business;

31.3.9.to coordinate the activities of the organizations in charge of municipal affairs;

31.3.10.to cooperate with citizens, business entities, and organizations on the basis of contracts on municipal business affairs;

31.3.11.within the scope of authority granted by the Mayor of the city, to supervise and assign duties to the administration of the city khoroolols in matters of municipal business affairs;

31.3.12.others prescribed by law.

31.4.The employees and officers of the office shall be appointed and dismissed by the Head of the Mayor's office.

31.5.The head of the Mayor's office shall issue an order within his powers and shall use stamps, symbols/badge, and official letterheads issued in accordance with the established procedure.

Article 32.Powers of the Mayor of the city khoroolols

32.1.The Mayor of the city khoroolol shall exercise the following powers:

32.1.1.to be responsible for ensuring the implementation of legislation, decisions of the Government and the Mayor and Council of the city under the jurisdiction;

32.1.2.to exercise the functions of the direct budget administrator in accordance with the legislation;

32.1.3.to organize the possession and use of the property of the city khoroolol, to prepare suggestions for the possession, leasing, sale, privatization, and disposal of the property of the city khoroolol and submit it to the City Mayor for decision;

32.1.4.to organize the implementation of some functions of the state at the level of city khoroolols;

32.1.5.to implement the functions transferred by the city Mayor on the basis of the contract;

32.1.6.to exercise the powers granted by relevant laws in the field of crime prevention and public order maintenance;

32.1.7.to appoint, release or dismiss the head of the office of the city khoroolol;

32.1.8.other powers stipulated by legislation.

32.2.The office term of the Mayor of the city khoroolol shall be 4 years.

32.3.If the office term of the Mayor of the city khoroolol ends prematurely, the term of office of the newly appointed Mayor shall be equal to the remaining term of the previous Mayor.

32.4.The structure and staff of the office of the city khoroolol shall be approved by the City Mayor.

Article 33.Village Mayor

33.1.The Village Mayor shall manage the daily activities of the village and implement the functions of the village.

33.2.The person who meets the following requirements shall be selected as the Village Mayor from among the residents of the village and approved by the Mayor of the soum, district or city in which the village is located:

33.2.1.who has management experience;

33.2.2.who does not have any tax debt;

33.2.3.who has no conviction.

33.3.The term of the Village Mayor shall be 4 years.

33.4.If the term of the Village Mayor ends prematurely, the term of office of the newly elected Mayor shall be equal to the remaining term of the mandate of the previous Mayor.

33.5.The operational costs of the village Mayor shall be financed from the budget allocated to the respective village.

33.6.The Village Mayor shall have an office with functions to assist in the implementation of his/her mandate, and the structure and number of staff of the office shall be determined by the Mayor in accordance with the standards set by the Government.

33.7.When exercising his/her powers stipulated in this Law and other legislation, the Village Mayor shall issue orders in accordance with the legislation within his/her authority.

33.8.If the order issued by the Village Mayor does not comply with the legislation, he/she or the Governor of the locating soum and district, or city Mayor shall cancel it.

33.9.The Village Mayor shall have a seal, symbol and official letter head issued in accordance with the established procedure.

Article 34.Powers of the Village Mayor

34.1.The Village Mayor shall exercise the following powers:

34.1.1.to organize the work of approving and implementing the general and partial general plans for the development of the village in accordance with the procedures prescribed by legislation;

34.1.2.to implement the functions of the budget generalizing administrator in accordance with the legislation and manage the budget;

34.1.3.to be issued data and reports on finance, economy, employment, resources, and land use necessary for the social and economic development of the village by relevant organizations and officials of the respective city or village;

34.1.4.to dispose of the village property within the scope of the powers granted by the legislation, solve the problems of creating them newly and renting them;

34.1.5.to provide assistance and support in the creation of production and services aimed at fulfilling the needs of residents;

34.1.6.to cooperate with business entities and organizations in regards with solving the problems on social and economic development of the village, to conclude agreements on the production of food and consumer goods and the provision of services;

34.1.7.to propose and have approved the land management plan for the village tenure land;

34.1.8.to have used the village water reserves in accordance with established procedures;

34.1.9.to organize the implementation of village sanitation, hygiene-disinfection measures;

34.1.10.to develop and implement measures to protect and restore village green areas;

34.1.11.to propose and to have resolved the matter on ceasing the construction and use of buildings and facilities that violate village hygiene and standards;

34.1.12.to organize and monitor the implementation of village charters;

34.1.13.to organize business entities and organizations on the basis of contracts, as well as residents, to participate in village improvement works;

34.1.14.to establish the working hours of village trade and service organizations and to have met hygiene requirements by them;

34.1.15.to support, organize and monitor educational, cultural, health, social protection, physical and sports activities;

34.1.16.to organize the implementation of action plans and projects in accordance with the partial general plan of the village approved by the Council, and monitor their implementation;

34.1.17.to file a lawsuit regarding common interests and property of the village residents;

34.1.18.to make a proposal to create a village award;

34.1.19.to have approved the village symbol by the Village Council;

34.1.20.to represent the village, to establish the relationship and communicate with cities and villages of other countries;

34.1.21.to appoint and dismiss an employee of the Mayor's office;

34.1.22.to appoint and dismiss a head of kheseg of the village;

34.1.23.to be responsible for ensuring the implementation of legislation, the decisions of the Government, and Mayor at the highest level of jurisdiction;

34.1.24.to approve the route and schedule of village public transport services, as well as oversee the activities of other transport organizations serving residents and the organization of passenger services at railways and airports;

34.1.25.to resolve issues specifically transferred by law or public legal agreement to be resolved by the Village Mayor;

34.1.26.on behalf of the village, to organize work to collect common opinions and requests of residents on matters stipulated by law and initiatives by themselves;

34.1.27.to report the activity report of the village to the Village Council every year;

34.1.28.to explain the social and economic importance of taxes within the scope of the tenure land, to support and cooperate with the activities of the tax authorities in order to ensure the implementation of tax legislation;

34.1.29.other powers stipulated by legislation, and agreements.

Article 35.Premature termination of the mandate of the Mayor of a city, village, or city khoroolol

35.1.The Mayor of the city shall be dismissed early on the following grounds:

35.1.1.deceased;

35.1.2.issued a request for release;

35.1.3.there was a medical opinion that due to illness, it is no longer possible to exercise the powers;

35.1.4.appointed to another job or position.

35.2.The issue of dismissal of the Mayor in cases specified in sub-paragraph 35.1.2, 35.1.3, and 35.1.4 of this Law shall be discussed and decided at the session of the City Council.

35.3.If the conditions specified in sub-paragraph 35.1.1 of this Law occur, the term of the Mayor of a city, village, or city khoroolol shall be deemed to be terminated.

35.4.If any of the following reasons are met, the Prime Minister shall dismiss the Mayor of the state-ranked city, and the Mayor of the local-ranked city shall be dismissed by the higher Mayor or the Governor:

35.4.1.made a decision in violation of the general and partial general plans of the city development;

35.4.2.the tenure land organization is not made in accordance with the general and partial general plans of the city development;

35.4.3.reasons specified in Paragraphs 70.3 and 70.4 of the Law on Budget are established;

35.4.4.the Prime Minister demanded the dismissal of the Mayor of the state-ranked city on the grounds that he/she had not fulfilled his/her obligations under the law and the agreement.

35.5.The Mayor of the city khoroolol shall be released before the end of his/her term of office on the grounds specified in sub-paragraphs 35.1.2, 35.1.3, and 35.1.4 of this Law, and shall be dismissed on the grounds specified in sub-paragraphs 35.4.1 and 35.4.2 by City Mayor.

35.6.The Village Mayor shall be released by the Village Council before the end of his/her term on the grounds specified in sub-paragraphs 35.1.2, 35.1.3, and 35.1.4 of this Law, and shall be dismissed on the grounds specified in sub-paragraphs 35.4.1, 35.4.2, and 35.4.3.

35.7.In the event that it was established that a crime has been committed by a valid court decision, the Mayor of a city, village, or city khoroolol shall be deemed to have resigned.

35.8.In the event that the term of office of the Mayor of a city or village prematurely ends, extraordinary elections shall be scheduled and announced within 30 days in accordance with the procedures prescribed by law.

CHAPTER FIVE

BASIS OF CITY AND VILLAGE BUDGET, FINANCE AND ECONOMY

Article 36.Basis of city economy

36.1.The basis of the city's economy shall consist of funds created by state and local budget investments, as well as local property, tax and non-tax revenues, infrastructure funds and other funds.

36.2.It shall be the responsibility of the state and local government to strengthen the city's economic potential and ensure its independent development, and this relationship shall be regulated by this Law and other relevant legislation.

36.3.Tax and non-tax support for activities necessary for the development of cities and villages shall be regulated by the relevant tax law.

Article 37.City and village budgets

37.1.Cities and villages shall have a budget consisting of sources specified in the Law on Budget.

37.2.Khoroolols of the State-ranked city shall be the independent components of the budget of the respective city, as well as the local-ranked cities and villages shall be the  independent components of the budget of the respective aimag and the Capital city.

37.3.When developing and approving the budget of cities and villages, the opinions and participation of residents shall be provided in accordance with the law.

37.4.The city and village budget shall finance the activities of implementing its functions specified in this Law.

37.5.Sources for implementation of functions on behalf of the administrative and territorial units, as well as state transferred to cities and villages shall be allocated from the relevant higher-level budget and state budget.

37.6.Budget relations of cities and villages shall be regulated by the Law on Budget and other related legislation by following the principles set forth in this Law.

Article 38.City tax

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

Article 39.Property of cities and villages

39.1.Cities and villages shall have a property.

39.2.The rights of the owner of the property of the city or village shall be exercised by the Council of the city or village, and the management of the property shall be exercised on behalf of the Council of the city or village by the Mayor of the city or village.

39.3.Property relations of cities and villages shall be regulated by law.

Article 40.Free zone and special economic zone

40.1.The city may have free zones and special economic zones established by law.

40.2.Relations with respect to the free zone of the city shall be regulated by law.

40.3.Relations with respect to the city's special economic zone shall be regulated in accordance with Articles 38-45 of the Law on the Legal Status of Ulaanbaatar, the capital city of Mongolia.

Article 41.City Infrastructure Fund

41.1.A state-ranked city or a local-ranked city other than belonging to the Capital city shall have a city infrastructure fund to be used for the following activities:

41.1.1.development of engineering infrastructure;

41.1.2.maintenance, expansion and renewal of engineering networks, such as heat, electricity, communication, clean and dirty water treatment facilities, flood protection buildings, and increasing source capacity thereto;

41.1.3.to conduct research and analysis of engineering infrastructure, to develop and introduce relevant norms and standards, to train and specialize specialists thereupon.

41.2.Infrastructure fund assets shall consist of the following sources:

41.2.1.not less than 1.5 percent of the city's budget revenue;

41.2.2.at least 1.5 percent of the operating income of the heat, electricity, clean water supply and distribution, sewage disposal organization for the given year;

41.2.3.foreign loans, aid, donations;

41.2.4.50 percent of the payment for water pollution;

41.2.5.others not prohibited by law.

41.3.The Government shall approve the general procedures for formation, disposal and control of fund assets specified in Paragraph 41.1 of this Law. In accordance with the general rules approved by the Government, the respective Council of the city shall approve and supervise the implementation of the procedures for the collection and disposal of funds in the infrastructure fund of the city.

41.4.The Council shall register the procedure approved in accordance with Paragraph 41.3 of this Law in accordance with the General Administrative Law.

41.5.It shall be prohibited to grant loans from the infrastructure fund, create debts and receivables, and spend the assets of the fund for non-designated activities.

Article 42.Other funds of the city development

42.1.The city may have a Green Development Fund specified in Paragraph 1 of Article 171 of the Law on the Legal Status of Ulaanbaatar, the capital city of Mongolia.

42.2.The operations of the fund specified in Paragraph 42.1 of this Law shall be governed by the Law on the Legal Status of Ulaanbaatar, the capital city of Mongolia, and the Law on Waste.

CHAPTER SIX

CITY AND VILLAGE ADMINISTRATION COMMINICATING RELATIONSHIPS WITH OTHER AUTHORITIES

Article 43.Communicatiion by City Council with the Government, state central administrative bodies and state administrative organizations

43.1.The City Council shall take into account of the interests of the state, administrative and territorial units, and coordinate its policies and decisions with the state policy when resolving the issues of authority imposed on it by this Law and other legislation.

43.2.The City Council shall provide information to the Government, the relevant state central administrative bodies and state administrative organizations, and governance of the administrative and territorial units on the implementation of functions transferred from the state and locals, and shall report within the time specified in the law and agreement.

Article 44.Communication by the Mayor with the Government

44.1.The Mayor of the state-ranked city shall communicate with the Government in accordance with the following procedure:

44.1.1.to submit operational report to the Government per annum, and the Government shall discuss this report at its session and give an assessment and conclusion;

44.1.2.to prepare proposals and draft decisions on the development of the economy and society of the city and submit them to the member of the government in charge of the issue, or, if not supported, forward the proposals to the Prime Minister;

44.1.3.to participate in the government session to discuss the economic and social development of the city and express their opinions and positions.

Article 45.Communication of the City Mayor with the state central administrative bodies and state administrative organizations

45.1.The Mayor of a state-ranked city shall interact with the state central administrative bodies and the state administrative organization in the following procedure:

45.1.1.to cooperate with the state central administrative bodies and the state administrative organization when organizing work to enforce legislation, and  coordinate their activities with them;

45.1.2.to communicate directly with the Prime Minister about the integrated policy to be implemented jointly with the state central administrative bodies on the issue of city development;

45.1.3.to submit proposals to the State Great Khural, the Government, and the state central administrative bodies to solve economic and social problems that cannot be solved with city funds;

45.1.4.to propose issues to state central administrative bodies and state administrative organizations on the matters with respect to the city's economic and social development, urban development, protection of the surrounding environment, and services to be provided by the state to the city's population.

45.2.The Mayor of a city with a locally ranking status shall interact with the Government, the state central administrative bodies and state administrative organizations through the Governor of the aimag and the Capital city under the respective jurisdiction.

Article 46.Communication by city and village with administrative and territorial units

46.1.The following principles shall be followed in relations between cities, villages and administrative and territorial units:

46.1.1.the management/governance of the administrative and territorial unit may not participate in the implementation of the self-functions of the city or village defined by this Law;

46.1.2.cities and villages to enter into a public legal agreement with the administrative and territorial units on the implementation of some functions of the respective units.

46.2.Cities, villages and administrative and territorial units may work together on specific issues.

46.3.The following disputes arising between the management of cities and villages and administrative and territorial units, as well as other cities and villages shall be resolved as described below:

46.3.1.unless otherwise specified in the legislation, the disputes arising between a state-ranked city and an administrative and territorial unit, or other city shall be resolved by the Prime Minister;

46.3.2.the dispute arising between the local-ranked cities in the respective administrative and territorial unit, or between the local-ranked city in the respective unit and the administrative and territorial unit shall be resolved by the Mayor of the respective aimag or the Capital city, or the Mayor of the state-ranked city;

46.3.3.unless otherwise specified in the law, the disputes arising from the agreement concluded on the implementation of the functions of the state administration shall be resolved by the member of the Government in charge of the organization and management of the local administration.

Article 47.Communication by the City and Village Mayors with residents, business entities, and organizations

47.1.The Mayor of a city or village may, by himself or through a competent organization, assign tasks to business entities and organizations to fulfill the decisions of the city and village management, and check their implementation.

47.2.The Mayor of a city or village may enter into a public legal agreement with residents, business entities, and organizations of the territory under his/her jurisdiction in order to comply with legislation.

CHAPTER SEVEN

CITY AND VILLAGE RESIDENTS

Article 48.City and village resident

48.1.A resident of Mongolia, a foreigner or a stateless person who registers with a permanent address in a city or village specified in this Law and resides for a period of 180 days or more shall be a permanent resident of a city or village.

48.2.Temporary resident shall be a resident of Mongolia, a foreigner or a stateless person residing in a city or village for a period of up to 180 days.

Article 49.Participating in the management of cities and villages by the residents of cities and villages

49.1.As a resident of a city or village, a resident shall participate in solving the problems of life in the city or village directly or through the management organization of the city or village.

Article 50.Making decisions by residents of cities and villages and participating in the activities

50.1.Residents shall directly participate in the management of cities and villages in the following ways:

50.1.1.to make a proposal to discuss and resolve certain economic and social issues of cities and villages by the Councils of cities and villages;

50.1.2.to participate in consultations on certain issues of the life of cities and villages to be conducted in accordance with the law;

50.1.3.to initiate one-time or standardized decisions on economic and social problems of cities and villages. If this initiative is supported and signed by at least 10% of the eligible residents of the city or village, the Council shall be obliged to consider it.

50.2.Residents with the right to vote shall support and sign a request for a referendum on solving specific problems in the life of cities and villages:

50.2.1.20 percent if it has up to 30 000 residents;

50.2.2.15 percent if it has 30 001-60 000 residents;

50.2.3.12 percent if it has 60 001-100 000 residents;

50.2.4.10 percent if it has more than 100,001 residents.

50.3.In accordance with Paragraph 50.2 of this Law, if the residents make a request, the city and village Council shall organize the referendum, and the Mayor shall be responsible for the organization of the referendum.

50.4.The Government shall determine the procedure for organizing, conducting and issuing the results of referendum to solve specific issues specified in Paragraph 50.2 of this Law.

Article 51.Rights and obligations of city and village residents

51.1.Residents of cities and villages have the following rights:

51.1.1.to elect and to be elected to the administration of the city or village by a resident with the right to vote;

51.1.2.to receive information from the management of cities and villages and give opinions in accordance with the procedures prescribed by legislation;

51.1.3.to vote on drafting and approving city and village budgets;

51.1.4.other rights provided by legislation.

51.2.A resident of a city or village shall undertake the following obligations:

51.2.1.to enforce legislation within the framework of city and village tenure lands;

51.2.2.to comply with the decisions of the Council and the Mayor of the city and village, charters and standards of the city and village;

51.2.3.to pay tax;

51.2.4.to respect city culture and communication norms;

51.2.5.to use his/her ownership and possession land in accordance with hygiene requirements;

51.2.6.to participate in improvement, services and cleaning being organized at the level of cities and villages;

51.2.7.to live in residential areas and maintain a clean appearance in accordance with the general and partial general plans for the development of cities and villages.

51.3.A temporary resident in a city or village shall bear the obligations specified in Paragraph 51.2 of this Law during their stay in the city or village.

CHAPTER EIGHT

MISCELLANEOUS

Article 52.Symbols

52.1.Cities and villages shall have symbols.

52.2.City and Village Councils shall approve the design of city and village symbol and the procedure for their use.

Article 53.City and village titles and other awards

53.1.The Mayor shall decide on the issue of awarding the title of honorary resident to a person who has met the conditions of an honorary resident of a city or village and who has made a special contribution to the development of a city or village, to award an organization, community, or person with an honorary badge, in honor of, or other award, and to write and glorify it in an honorary book.

Article 54.Entry into force date

54.1.This Law shall enter into force on June 1, 2025.

THE CHAIRMAN OF STATE GREAT KHURAL OF MONGOLIA

ZANDANSHATAR.G