THE PUNJAB LOCAL GOVERNMENT ACT 2019
(Act
XIII of 2019)
C O N T E N T S
Section Heading
PART
1
PRELIMINARY
Chapter I – Applicability and
Interpretation
1. Short
title, extent and commencement.
2. Definitions.
2A. Elections
Act to apply.
Chapter II – Succeeding Local
Governments and their General Responsibility
3. Dissolution
of existing local governments.
4. Succession
of the defunct local governments.
5. General
authority and responsibility of a local government.
6. Local
governments to work within the Provincial framework.
7. Certain
matters to be prescribed.
PART 2
CONSTITUTION AND FUNCTIONING OF
LOCAL GOVERNMENTS
Chapter III – Local Areas
8. Demarcation
of local areas.
9. Classification
of urban local areas.
10. Change
of name of a local area.
11. Periodic
review of local areas.
12. Power
of the Government to direct special reviews.
13. Procedure
for review of local areas.
14. Changes
in the limits and re-classification of local areas.
Chapter IV – Local Governments
15. Constitution
of local governments.
16. Name
of a local government.
17. Division,
amalgamation or re-classification of local governments.
Chapter V – Composition of Local
Governments
18. Local
government structure.
19. Composition
of the head’s cabinet.
20. Representation
of councillors in the councils.
Chapter VI – Functions of Local
Governments
21. Responsibility
of local governments.
22. Assignment
of additional responsibilities by Government.
23. Extent
of Government control on functions of the local governments.
24. Discharge
of functions by local governments.
25. Delegation
of functions to Panchayats and Neighbourhood Councils.
26. Agency
arrangements.
27. Appointment
of an undertaker by Government.
28. Delegation
of functions etc. and agency arrangements not to diminish responsibility of a
local government.
29. Quality
and accessibility of public services.
Chapter VII – Joint Authorities
30. Establishment
of joint authorities by voluntary action.
31. Subsequent
joining of a local government.
32. Power
of the Government to establish joint authority in relation to certain
functions.
33. Operating
Officer of a joint authority.
34. Joint
committees to oversee and direct functions of joint authorities.
35. Expenses
of a joint authority how defrayed.
36. Assets
etc. of a joint authority.
37. Dissolution
of a joint authority.
38. Succession
of a joint authority.
Chapter VIII – Authority of Local
Governments
39. Extent
of authority of local governments.
40. Manner
of exercise of authority by a local government.
41. All
acts and orders to be taken or made in the name of local government.
Chapter IX – Duties of Certain
Functionaries
42. Duties
and powers of a head of the local government.
43. Duties
and powers of a convenor.
44. Duties
of a councillor.
45. Duties
and powers of Chief Officer.
46. Attendance
of council meetings etc. by Chief Officer.
47. Duty
of Chief Officer etc. in case of an illegal order or instruction.
48. Personal
responsibility for acts done and expenditure incurred without lawful authority.
Chapter X – Contracts
49. Principles
governing contracts.
50. Form
of contract.
51. Power
to make contract.
52. Validity
of a contract.
Chapter XI – Meetings of the Council
53. Disposal
of business of a local government.
54. Business
of the council to be disposed of at meetings.
55. Decisions
at the meetings how made.
56. Ordinary,
special and emergency meetings.
57. Presiding
over of council meetings.
58. Quorum
of council meetings.
59. Frequency
of council meetings.
60. Councillors,
members and certain other persons to abstain from meetings on account of
personal interest.
61. Vacancy
or defect in membership not to effect power of a council to act.
62. Right
of public to attend council and committee meetings.
63. Preservation
of order at council meetings.
64. Record
of proceedings of meetings.
65. Indemnity
of councillors in relation to anything said in proceedings of a meeting.
66. Defraying
of expenses in relation to meetings.
67. Bye-laws
for meetings.
Chapter XII – Committees and
Sub-committees of the Council
68. Appointment
of committees and sub-committees.
69. Membership
of a committee or a sub-committee.
70. Requirement
of political balancing in the committees.
71. Cessation
of a committee or sub-committee.
72. Cessation
of membership of a committee or sub-committee on loss of membership of council.
73. Exemption
from personal liability of a member who is not a member of local government.
74. Bye-laws
for committees and sub-committees.
75. Certain
provisions of Chapter XI to apply to committees and sub-committees.
PART 3
ELECTIONS, TERM OF OFFICES AND
RELATED MATTERS
Chapter XIII – Authority for Local
Government Elections
76. Election
Commission to conduct local government elections.
77. Submission
of complaints.
78. Election
Commission to report on elections and certain other matters.
79. General
powers of the Election Commission.
80. All
authorities and persons to assist the Election Commission.
81. Delegation
of powers.
82. Election
Commission to regulate its own procedure.
Chapter XIV – Election Method,
Franchise and Related Matters
83. Election
method in general.
84. Electoral
units.
85. Enlistment
of an electoral group.
86. [Procedure
for constitution of electoral units.] [Omitted]
87. Electoral
rolls.
88. [Electoral
rolls to be open to inspection and purchase.] [Omitted]
89. [Right
to enrolment as a voter.] [Omitted]
90. Right
to vote.
Chapter XV – Conduct of Elections
91. Notification
of election date and call up for election.
92. Only
nominated and eligible persons allowed to contest elections.
93. Polling
stations and appointment of electoral officers.
94. All
political parties, electoral groups and candidates allowed to appoint election
and polling agents.
95. [Rights
and power of an election agent or polling agent.] [Omitted]
96. Code
of Conduct for elections.
97. Returned
candidates.
98. Election
to be called in question only before Election Tribunal.
99. Election
Tribunal. [Omitted]
100. Powers
of the Election Tribunal.
[Omitted]
101. Procedure
for hearing of an election petition. [Omitted]
102. Decision
of Election Tribunal and right of appeal. [Omitted]
103. Ground
for declaring the election of a returned candidate void. [Omitted]
104. Declaration
of a person other than a returned candidate as elected. [Omitted]
105. Declaration
of an election as a whole void. [Omitted]
106. Notification
of election, resignation and removal.
107. Limit
of election expenses and consequences of exceeding such limit.
108. Duty
to declare election expenditure and consequences of failure.
Chapter XVI – Qualifications and
Term of Office of Councillors
109. Qualification
for being a candidate and to hold the office of head of the local government,
convenor or councillor.
110. Defection
from a political party or electoral group.
111. Effect
of being found to be disqualified to be candidate, head of the local
government, convenor or councillor.
112. Bar
against double membership and requirement to tender resignation to contest for
certain other political offices.
113. Term
of office of the council, head of the local government, convenor and
councillors.
114. Oath
of office and submission of declaration etc.
115. Every
head of the local government, convenor and councillor to declare assets
annually.
116. Effect
of failure to take oath or submit declaration.
117. Resignation
by a head of the local government, convenor or councillor.
118. Fresh
elections in case of vacancy in the office of the head of the local government.
119. Filling
of casual vacancies of convenor and councillors.
120. Temporary
accession to the office of a head of the local government and convenor.
121. Power
of the Government to appoint an administrator.
PART 4
LOCAL GOVERNMENT FINANCE AND
PROPERTIES
Chapter XVII – Local Government
Funds
122. Funds
of a local government.
123. Credit
of moneys to a local fund.
124. Application
of local fund.
125. Credit
of monies to public fund.
126. Application
of public fund.
127. Custody
of funds.
128. Investment
of surplus funds.
129. Cognizance
of wrongful application of moneys.
Chapter XVIII – Local Government
Budget
130. Legal
basis for local government expenditure
131. Submission
of estimates of receipt and expenditure by head of the local government and its
approval.
132. Government
to certify estimates if not approved by a local government.
133. Revision
of the approved estimates.
134. Duty
of a local government to readjust income and expenditure in certain cases.
135. Receipts
to always exceed the expenditure of local governments.
136. Ring
fencing of expenditure of local governments.
137. Authority
of the Government to review approved estimates.
138. Advance
notification of provisional amounts by Finance Commission.
Chapter XIX – Borrowing by Local
Governments
139. Power
of a local government to borrow money for certain purposes.
140. Conditions
precedent for approval of a loan and methods of borrowing.
141. Local
Development Fund.
142. Limits
on authority of local government to borrow moneys.
143. Application
of sums raised by borrowing.
144. Repayment
of borrowed moneys.
145. Sinking
fund.
146. Investment
of sinking fund.
147. Inspection
of sinking funds and payment of any deficient amounts by local government.
148. Attachment
of local fund in default of repayment of loan.
149. Annual
statement of moneys borrowed.
Chapter XX – Local Government
Properties
150. Local
government properties.
151. Application
of local government properties.
152. Disposal
of local government properties.
153. Resumption
of a property by the Government.
154. Annual
stock take of local government properties.
155. Insurance
of certain local government properties.
Chapter XXI – Local Government
Taxes, Fees, Rates and Tolls
156. Authority
of a local government to levy taxes etc
157. Procedure
for imposition, revision or abolishment of a local tax etc.
158. Date
on which local taxes etc. become effective.
159. Rating
areas and property tax.
160. Power
of the Finance Commission in case of unfair local taxes etc.
161. Duty
to furnish information on liability to local tax etc.
162. Power
of entry for the purpose of valuation of local taxes etc.
163. Presentation
of bill for local taxes and rates.
164. Notice
of demand to be issued on non-payment of bill.
165. Payment
of local tax etc. subsequent to receipt of bill or notice of demand and consequences
of default.
166. Investigation
of objections by Chief Officer.
167. Opportunity
to make appeal against the determination of Chief Officer.
168. Liability
for local tax etc. to be called in question only under this Act.
169. Payments
to be made in authorized banks against receipts.
170. Writing
off of irrecoverable taxes etc.
171. Tax
etc. not to become invalid for defect in form.
172. Records
pertaining to valuation, assessment and collection of local tax etc.
173. Authority
of the Government to appoint any of its agency or officer for local tax
collection.
Chapter XXII – Local Government
Finance Commission
174. Establishment
of Local Government Finance Commission.
175. Term
of office and premature removal of certain members.
176. Casual
vacancies.
177. Eligibility
for appointment as an expert or a member representing heads of the local
governments.
178. Certain
restrictions to apply on subsequent employment of an expert member.
179. Oath
of office of members of Finance Commission.
180. General
functions of the Finance Commission.
181. Right
of local governments to refer objections to Finance Commission.
182. Procedure
of Finance Commission.
183. Duty
of local governments and other public entities etc. to cooperate with Finance
Commission.
184. Secretariat
of the Finance Commission.
Chapter XXIII – Inter-governmental
Fiscal Transfers
185. Provincial
allocable amount and transfers to the local governments.
186. Process
for determination of provincial allocable amount and share of individual local
governments.
187. Duty
of Finance Commission to consider views of Government and local governments.
188. Term
of formulae on share of local governments and their revision.
189. Principles
for determining provincial allocable amount.
190. Principles
for determining transfers to individual local governments and related grants.
Chapter XXIV – Local Government
Accounts and Audit
191. Accounts
of local governments to be kept in the prescribed manner.
192. Annual
statement of accounts.
193. Monthly
abstract of accounts.
194. Authority
for audit of local government accounts.
195. Extra-ordinary
audits.
196. Audit
reports.
197. Consideration
of audit report and duty to remedy defects.
198. Authority
of Auditor General to inspect documents etc.
199. Punishment
for obstruction etc. in the audit.
200. Statement
of accounts and audit reports to be made public.
201. Audit
fees.
PART 5
ACCOUNTABILITY, OVERSIGHT AND
RESPONSIVENESS
Chapter XXV – Internal Controls
202. Power
of the council to remove a head of the local government and convenor.
203. Certain
limitations to apply in bringing a resolution for removal of a head of local
government and convenor.
204. Oversight
through committees of the council.
205. Internal
inspections.
206. Internal
inquiries.
Chapter XXVI –Continuous
Supervision of Local Governments
207. Inspectorate
of Local Governments.
208. Yearly
inspections.
209. Special
inspections.
210. Powers
of the person inspecting a local government.
211. Local
governments to take action on inspection report.
Chapter XXVII – Responsiveness to
Citizens Needs
212. Duties
of local governments towards residents of local area.
213. Requirement
to consult residents in certain cases.
214. Community
initiatives.
Chapter XXVIII – Transparency
215. General
rules of conduct.
216. Conflict
of interest.
217. Duty
to abstain from proceedings in case of conflict of interest.
218. Register
of interests.
219. Code
of Conduct for councillors, officers etc.
220. Misconduct.
221. Certain
orders to be in writing or to be reduced to writing.
222. All
orders of local government to be open to inspection.
Chapter XXIX – Oversight by the
Government
223. Supervision
of local governments.
224. Calling
in question the legality of an order etc. of local government.
225. Right
of certain government officers to attend local government meetings etc.
226. Power
to call for information.
227. Power
of the Government to inquire into complaints.
228. Power
of the Government to suspend certain resolutions or orders and prohibit certain
actions of local government.
229. Power
of the Government to require a local government to take action.
230. Procedure
where head of the local government fails to show cause or to take action on
directions of the Government.
231. Power
of the Government to take action on its own.
232. Power
of the Government to suspend or remove a head of the local government, convenor
or councillor.
233. Suspension
or dissolution of a local government.
234. Effect
of suspension or dissolution of a local government.
235. Reinstatement
of suspended council.
236. Bar
of suits and impact of suspension of resolution etc.
PART 6
COORDINATION AND CONFLICT
MANAGEMENT
Chapter XXX – Punjab Local
Government Commission
237. Establishment
of Punjab Local Government Commission.
238. Chairperson
and members of the Commission.
239. Term
of office and premature removal of certain members.
240. Casual
vacancies.
241. Eligibility
for appointment of expert members.
242. Certain
restrictions to apply on subsequent employment of an expert member.
243. Oath
of office of members of the Commission.
244. Functions
of the Commission and duty of the government to have regards to their reports.
245. Certain
powers of a court to vest upon the Commission.
246. Procedure
of the Commission.
247. Duty
of the Government, local governments etc. to cooperate with the Commission.
248. Secretariat
of the Commission.
Chapter XXXI – Coordination and
Dispute Management
249. Inter-agency
coordination.
250. Resolution
of disputes.
Chapter XXXII – Planning,
Development and Land Use
251. Local
development plan.
252. Initiation
of proposals for new works etc.
253. Approval
of annual development plan.
254. Government
to certify annual development plan if not approved by a local government.
255. Evaluation
and approval of proposals for new works etc.
256. Planning
guidelines.
257. Local
Planning Board.
258. Duty
of every local government to maintain public service infrastructure maps.
259. Land
use planning and land use permissions.
260. Local development and land-use plans to abide
by relevant provincial and regional planning considerations.
PART 7
REGULATION AND ENFORCEMENT
Chapter XXXIII – Offences Relating
to Local Government Elections
261. Prohibition
to give, offer or promise illegal gratification.
262. Prohibition
to impersonate as a voter.
263. Prohibition
to unduly influence outcome of election.
264. Prohibition
of certain unwarranted practices.
265. Canvassing
on a polling day prohibited.
266. Disorderly
conduct near polling station.
267. Prohibition
on tampering with ballot paper etc.
268. Interference
with the secrecy of voting prohibited.
269. Duty
to maintain secrecy.
270. Conduct
of officials or any other person employed in connection with election.
271. Breach
of official duty in connection with election.
272. Illegal
assistance to a candidate by government servants.
273. Prohibition
of excessive expenditure on election.
274. Failure
to correctly declare election expenditure.
275. Summary
trial.
276. Cognizance
of offences under this Chapter.
Chapter XXXIV – Municipal Offences
and their Cognizance
277. Municipal
offences.
278. Cognizance
of municipal offences.
279. Proceedings
before the enforcement officer.
280. Certain
powers of a court to vest upon enforcement officer.
281. Appeal
against order of an enforcement officer.
282. Cognizance
of an offence under this Chapter by courts.
283. Appointment
of Inspectors and Enforcement Officers.
284. General
powers of Inspectors and Enforcement Officers.
285. Appointment
of Municipal Magistrates.
286. Right
of citizen not effected.
Chapter XXXV – Offences Relating to
Good Conduct and Conflict of Interest
287. Punishment
for acting dishonestly.– In addition to any punishment
for this act provided for
288. Punishment
for acting despite conflict of interest.– A person who
has a conflict of interest
289. Punishment
for failure to disclose immediate relatives etc.– A head of the local
290. Cognizance
of an offence under this Chapter by courts.– No court
shall take cognizance of
Chapter XXXVI – Offences Relating
to Local Taxes
291. Punishment
for failure to provide information on liability to tax etc.
292. Punishment
for non-payment of tax etc.
293. Cognizance
of offences under this Chapter.
PART 8
MISCELLANEOUS
Chapter XXXVII – Officers and
Servants of Local Governments
294. Chief
Officer, other officers and servants of local governments.
295. Security
of tenure for the Chief Officer and other officers.
296. Local
Government Service.
297. Service
cadre for servants of the local governments.
298. Continuation
of the Punjab Local Government Board.
299. Composition
of the Board.
300. Functions
of the Board and method for conduct of business.
Chapter XXXVIII – General Matters
301. Appeal
against orders of local governments.
302. All
heads of the local governments, convenors, councillors, officer and servants of
the local governments to be public servants.
303. Remuneration
etc. for heads of the local governments, convenors and councillors.
304. Right
to information.
305. Training
of heads of the local governments, convenors and councillors.
306. Manner
of exercise of authority of the government.
307. Delegation
of powers by a local government.
308. Bar
of suits etc. for action taken in good faith.
309. Bar
against employment of head of the local government, convenor and councillors in
the local government.
310. Power
to make rules and bye-laws.
311. Power
to issue regulations and standing instructions.
312. Repeal
and Savings.
313. Amendments
in the Fifteenth Schedule.
314. Removal
of difficulties.
315. Act
to override other laws.
Chapter XXXIX – Transitional
Arrangements
316. Interim
authorities and continuation of public services.
317. Interim
maintenance of offices and authorities to be transferred to local governments
under this Act.
318. Fiscal
transfers and taxes etc. to continue.
319. Fiscal
transfers and budget of the succeeding local governments for the first year in
office.
320. Salaries
and emoluments of officers and servants of the local governments during
transition.
SCHEDULES
First Schedule
Second Schedule
Third Schedule
Fourth Schedule
Fifth Schedule
Sixth Schedule
Seventh Schedule
Eighth Schedule
Ninth Schedule
Tenth Schedule
Eleventh Schedule
Twelfth Schedule
Thirteenth Schedule
Fourteenth Schedule
Fifteenth Schedule
Sixteenth Schedule
[1]THE
PUNJAB LOCAL GOVERNMENT ACT 2019
(Act XIII of 2019)
[4 May 2019]
An Act to
reconstitute local governments in the Punjab and for related purposes
Whereas it is expedient
to reconstitute local governments in the Punjab for effective discharge of
certain public services and to provide for their authority and duties for this
purpose, and matters connected therewith and ancillary thereto;
Be it enacted by Provincial
Assembly of the Punjab as follows:-
PART 1
PRELIMINARY
Chapter I – Applicability
and Interpretation
1. Short title, extent
and commencement.– (1) This Act may be called the
Punjab Local Government Act, 2019.
(2) It shall extend to the whole of the
Punjab other than the areas notified as cantonments under the Cantonments Act,
1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002), in
relation to the matters covered there under and such other areas under active
possession and direct control of the Armed Forces of Pakistan that may be notified
by the Government for this purpose.
(3) It shall come into force at once.
2. Definitions.– In this Act, unless there is anything
repugnant in the subject or context:-
(a)
‘Act’ means the Punjab Local
Government Act, 2019;
(b)
‘administration’ means the part of
a local government comprising Chief Officer, other officers and servants of the
local government;
(c)
‘Auditor General’ means the Auditor
General of Pakistan appointed under Article 168 of the Constitution;
(d)
‘authorized auditor’ means any
commercial auditor other than the Auditor General authorized by the Government
to undertake extra-ordinary audit of a local government under section 195 of
this Act;
(e)
‘Board’ means the Punjab Local
Government Board continued under section 298 of this Act;
(f)
‘Cabinet’ means the Cabinet of
Ministers, with the Chief Minister as its head as mentioned in Article 130 of
the Constitution;
(g)
‘candidate’ means a candidate for
election under this Act;
(h)
‘cantonment’ means a place or
places declared and notified as cantonment under the Cantonments Act, 1924 (II
of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002) by the
Government of Pakistan;
[2][(i) ‘census’ means a population and housing
census provisionally or finally published under the General Statistics
(Reorganization) Act, 2011 (XIV of 2011), whichever is later;]
(j)
‘Chief Minister’ means the Chief
Minister of the Punjab;
(k)
‘Chief Officer’ means an officer of
the local government who is the head of the respective administration and
includes a Chief Corporation Officer who shall be the head of the
administration of a Metropolitan Corporation;
(l)
‘circumstances of emergency’ mean
circumstances imminently endangering public health, safety, loss of life or
significant or large scale harm to property and
require an immediate action;
(m)
‘Collector’ means a Revenue Officer
appointed under section 7 of the Punjab Land Revenue Act, 1967 (XVII of 1967);
(n)
‘Commission’ means the Punjab Local
Government Commission constituted under section 237 of this Act;
(o)
‘committee’ means a committee of
the council constituted under section 68 of this Act;
(p)
‘consolidated fund’ means Provincial
Consolidated Fund within the meanings of Article 118 of the Constitution;
(q)
‘constituting local government’
means a local government constituting a joint authority established under
section 30 of this Act;
(r)
‘Constitution’ means the
Constitution of the Islamic Republic of Pakistan.
(s)
‘Convenor’ means the
convenor of the council and in relation to the holding of a meeting of the
council, shall also include a councillor or any other person presiding over the
meeting in his absence;
[3][(t) * * * * * * * * *
*]
(u)
‘corruption’ by a head of the local
government, convenor, councillor or an officer or servant of a local government
or any other person acting under this Act means:
(i) accepting,
obtaining or offering any gratification or valuable thing, directly or
indirectly, other than the legal remuneration, as a reward for doing or for
bearing to do any official act; or
(ii) dishonestly
or fraudulently misappropriating, or indulging in embezzlement or misuse of
property or resources of a local government; or
(iii) possession of pecuniary sources or property by
himself or any of his dependents or any other person, through him or on his
behalf, which cannot be accounted for and which are disproportionate to his known
sources of income; or
(iv) maintaining
standard of living beyond known sources of income; or
(v) having
a reputation of being corrupt; or
(vi) entering
into plea bargain under any law for the time being in force and return the
assets or gains acquired through corruption or corrupt practices, voluntarily;
(v)
‘Council’ means the council
comprising the convenor and other councillors of a local government;
(w)
‘councillor’ means a councillor of
the council and includes a convenor;
(x)
‘defunct local government’ means a
local government dissolved under section 3 of this Act;
(y)
‘Director Local Fund Audit’ means
the Director of Local Fund Audit Department, Punjab;
(z)
‘district’ means a District
notified under section 5 of the Punjab Land Revenue Act, 1967 (XVII of 1967);
[4][(za) ‘Elections Act’ means the Elections Act, 2017
(XXXIII of 2017);]
(aa)
‘Election Commission’ means the
Election Commission of Pakistan established under Article 218 of the
Constitution;
[5][(bb) ‘electoral group’ means an electoral group
enlisted under the Act;]
[6][(cc) ‘electoral officer’ means an officer
appointed for election under the Act and includes a Presiding Officer, an
Assistant Presiding Officer and a Polling Officer;]
[7][(dd) ‘electoral roll’ means an electoral roll
prepared, revised or corrected under the Elections Act;]
(ee)
‘electoral unit’ means electoral
unit constituted for an election under section 84 of this Act;
(ff)
‘estimate of receipts and expenditure’
means the estimate of expected receipts and expenditure of a local government
for a given financial year, and as the case may be, shall include the estimate
of receipts and expenditure of constituent offices, entities and agencies of that
local government;
(gg)
‘Finance Commission’ means the Punjab
Local Government Finance Commission constituted under section 174 of this Act;
(hh)
‘financial year’ means the year
commencing on the first day of July and ending on the thirtieth day of June;
[8][(ii) ‘Government’ means Government of the
Punjab;]
[9][(jj) ‘government agency’ means an office or
entity of the Government;]
(kk)
‘head’s cabinet’ means the cabinet
of the head of the local government referred to in section 19 of this Act;
(ll)
‘head of the local government’
means the head of the local government and includes:
(i) a
Lord Mayor of a Metropolitan Corporation;
(ii) a
Mayor of a Municipal Corporation, Municipal Committee or a Town Committee; and
(iii) a
Chairperson of Tehsil Council
(mm)
‘High Court’ means the Lahore High
Court, Lahore;
(nn)
‘Inspector General’ means the
Inspector General of the Inspectorate;
(oo)
‘Inspectorate’ means the
Inspectorate of Local Government constituted under section 207 of this Act;
(pp)
‘joint authority’ means a joint
authority established under section 30 of this Act;
(qq)
‘local area’ means the jurisdiction
of a local government determined under section 8 of this Act;
(rr)
‘Local Council Service’ means the
Local Council Service comprising servants of the local governments constituted
under section 297 of this Act;
(ss)
‘local government’ means a local
government constituted under subsection (2) of section 3 of this Act;
(tt)
‘Metropolitan’ means a local area
of a Metropolitan Corporation;
(uu)
‘Minister’ means the Minister as
defined in the Punjab Government Rules of Business, 2011 or any other similar
law for the time being in force, and where no department has been mentioned
with the Minister, it shall mean the Minister in charge of the Local Government
and Community Development Department;
(vv)
‘Municipality’ means the local area
of a Municipal Corporation or, as the case may be, a Municipal Committee;
(ww) ‘Neighbourhood
Council’ means a neighbourhood council constituted under the Punjab Village
Panchayat and Neighbourhood Councils Act, 2019;
(xx)
‘officer’ in relation to an officer
of a local government shall mean to include a Chief Officer;
(yy)
‘official Gazette’ means the
official Gazette of the Government;
(zz)
‘Operating Officer’ means the
operating officer of a joint authority appointed under section 33 of this Act;
(aaa) ‘Panchayat’
means a Panchayat constituted under the Punjab Village Panchayat and
Neighbourhood Councils Act, 2019;
(bbb) ‘peasant’
means a landless farm worker or a person engaged in subsistence agriculture
from not more than five acres of agricultural land whose annual income does not
exceed such limit as the Government may from time to time determine having
regards to the prevailing poverty line;
(ccc) ‘political
party’ means a political party within the meanings of the Election Act, 2017
(XXXIII of 2017) or any other relevant law for the time being in force;
(ddd) ‘prescribed’
means prescribed by rules made under this Act;
(eee) ‘prescribed
service’ means the Local Government Service, Pakistan Administrative Service
constituted under Article 240 of the Constitution and Provincial Management
Service constituted under the Punjab Provincial Management Service Rules, 2004 whether
called by this or any other title;
(fff)
‘province’ means the province of
the Punjab;
(ggg) ‘provincial
allocable amount’ means sums set aside out of the provincial consolidated fund under
section 185 of this Act as a share for transfer to one or more local governments
and panchayats and neighbourhood councils under section 186 of this Act.
(hhh) ‘Provincial
Assembly’ means the Provincial Assembly of the Punjab;
(iii)
‘public service’ means a service
provided by a local government in relation to its functions for the residents;
(jjj)
‘Punjab’ means the province of the
Punjab;
(kkk) ‘recognized
institution’ means an educational institution recognized by the Higher
Education Commission established under the Higher Education Commission
Ordinance, 2002 or any other similar agency mandated for this purpose under any
other relevant law;
(lll)
‘regulations’ means the regulations
issued under section 311 of this Act;
(mmm) ‘resident’
means a person who ordinarily resides in the local area of a local government,
and where relevant as regards the functions of a joint authority, includes
persons from outside that area who regularly use facilities or services
provided by that joint authority.
(nnn) ‘Rules’
means the rules made under this Act;
(ooo) ‘Secretary’
means the Secretary as defined in the Punjab Government Rules of Business, 2011
or any other similar law, and where no department has been mentioned with the
Secretary, it shall mean the Secretary in charge of the Local Government and
Community Development Department;
(ppp) ‘servant
of local government’ means an employee of the local government appointed or
continued under section 297 of this Act;
(qqq) ‘standing
instructions’ mean the standing instructions issued under section 311 of this
Act;
(rrr)
‘sub-committee’ means the sub-committee
of a committee of the council appointed under section 68 of this Act;
(sss)
‘tehsil’ means an area notified as
Tehsil under the Punjab Land Revenue Act, 1967 (XVII of 1967);
(ttt)
‘town’ means the local area of a
Town Committee;
(uuu) ‘urban
local area’ means a Metropolitan, Municipality or a Town; and
(vvv)
‘worker’ means a person who primarily
depends upon personal labour or a small scale business
for subsistence, a worker as defined in the Industrial Relations Ordinance,
2002 (Ordinance XCI of 2002) and in both cases, his annual income does not
exceed such limit as the Government may from time to time determine having
regards to the prevailing poverty line.
[10][2A. Elections Act to apply.– For the
purpose of local government election, the Elections Act shall, as nearly as
possible, apply to an election under this Act.]
Chapter II – Succeeding
Local Governments and their General Responsibility
3. Dissolution of existing
local governments.– (1) All local governments constituted or continued under the Punjab
Local Government Act, 2013 (Act XVIII of 2013) are hereby dissolved.
(2) As soon as may be but not later than [11][twenty one months]
of the commencement of this Act, the
Government shall constitute succeeding local governments in accordance with the
provisions of section 15 of this Act.
4. Succession of the
defunct local governments.– (1) Subject to
subsection (3) below, each local government shall succeed:
(a)
such property of a defunct local
government located within the limits of its local area which, in view of the
Government, is required by it for the due discharge of any function under this
Act;
(b) such
officers and servants of a defunct local government who, in the view of the
Government, are required by it for the discharge of any function under this
Act; and
(c)
such rights, fund, claim or
liability or portion thereof which, in the view of the Government, was
respectively raised, made or accrued by a defunct local government in relation
to areas comprising its local area.
(2)
Subject to subsection (3) below,
the Government shall, having regards to the circumstances appertaining to each
case, determine the share of a local government where:
(a) any
property of a defunct local government is required by two or more local governments
for the discharge of a function under this Act;
(b) any
officer or servant of a defunct local government is required by two or more
local governments for the discharge of a function under this Act; and
(c) any
fund, claim or liability or portion thereof which was respectively raised, made
or accrued by a defunct local government in relation to areas comprising the
local areas of two or more local governments.
(3)
No local government shall, unless
otherwise provided by the Government, succeed to any property, right, fund,
claim or liability or portion thereof of a defunct local government which does
not pertain to a function assigned to it under this Act.
(4)
All properties, rights, funds,
claims and liabilities of a defunct local government which pertain to a
function not assigned to any local government under this Act shall be succeeded
to by the Government.
(5)
The Government shall, by a general
or special order, provide for the manner of succession and discharge of
liabilities, if any, of a defunct local government.
(6)
The Government shall assign all
properties, rights, funds, claims or liabilities among local governments under
this section and all disputes relating to this matter shall be referred to and
decided by it and such decision shall be final.
Explanation: For the purpose of this
section, the term ‘property’ shall include any land, building, office, wok, facility,
amenity, vehicle, equipment, plant, store or apparatus.
5. General
authority and responsibility of a local government.– (1) Subject
to and to the extent given under this Act, every local government shall have
the authority to run the affairs of respective local area without improper
interference.
(2) A local government shall, having regard
to the practical considerations:-
(a)
exercise its
authority and incur expenditure in the best interests of the residents without any
favour or prejudice in a democratic and accountable manner;
(b)
involve all
residents in running its affairs and from time to time consult them on the
level, quality, range and impact of services;
(c)
provide
services in financially and environmentally sustainable manner;
(d)
give
equitable access to services; and
(e)
promote and
undertake development in the respective local area.
(3) Every resident shall have the right to:
(a)
contribute
to the running of the affairs of respective local government in accordance with
this Act;
(b)
receive prompt
response to his written or oral communication, including any complaint, to a local
government;
(c)
be informed
of the decisions of the local government affecting his rights, property and
reasonable expectations;
(d)
regular
disclosure of the state of affairs of the respective local government,
including its finances;
(e)
demand that
affairs of the respective local government are conducted impartially and
without prejudice and are untainted by personal self-interest; and
(f)
use and
enjoyment of facilities and services provided by the local government.
(4) Every resident shall, where applicable,
pay promptly toll, tax, fee, rates or other charges imposed by the local
government, allow officers and servants of the local government reasonable
access to his property in relation to the performance of their duties, and
comply with lawful bye-laws or instruction of the local government applicable
to him.
6. Local governments to
work within the Provincial framework.– (1) Every
local government shall function within the framework of the province and adhere
to all applicable federal and provincial laws.
(2) No local government shall do anything or
act in a manner that impedes or is otherwise prejudicial to the exercise of
executive authority of the Government.
[12][(3) The Government may, by general or special
order, direct a local government to take any measure in furtherance of section
5, and the local government shall comply with such direction.]
7. Certain matters to be
prescribed.– Wherever this Act requires anything
to be done but does not make any provision or sufficient provision as to the
authority by whom it shall be done, or the manner in which it shall be done,
then it shall be done by such authority and in such manner as may be prescribed.
PART 2
CONSTITUTION AND
FUNCTIONING OF LOCAL GOVERNMENTS
Chapter III – Local
Areas
8. Demarcation of local areas.– (1) As soon as may be, but not later than six
months of the commencement of this Act, the Government shall by an order
published in the official Gazette:-
(a)
divide all areas comprising the Punjab,
except the areas excluded under sub-section (2) of section 1, into urban and
rural local areas;
(b)
identify the limits of each local
area;
(c) having
regards to the provisions of section 9 of this Act, classify each urban local
area; and
(d) name
each local area.
(2)
All areas comprising a Tehsil,
excluding areas notified as cantonments and urban local areas, shall be the
local area of that Tehsil.
(3)
As far as may be, each local area
shall be compact, contiguous and constitute a territorial unity.
(4)
Each local area shall constitute
territorial jurisdiction of the respective local government.
9. Classification of urban
local areas.– (1) An area which displays distinct urban
features may either be classified as a Metropolitan, Municipality or a Town.
(2) There shall be following nine
Metropolitans in the Punjab, namely:
(a) areas comprising the cities of
Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal
and Sargodha; and
(b) notwithstanding anything
contained in section 8 of this Act and subsection (1) of this section, all
areas comprising
the district of Lahore.
(3) An area referred to in subsection (1),
except the area comprising a city which houses the Tehsil headquarters, shall
not be classified as a Municipality or a Town, unless it has a population of
not less than seventy-five thousand and twenty thousand respectively as per the
last available census.
(4) The area comprising the city which
houses a Tehsil headquarters, unless it qualifies to be classified as a
Municipal Corporation, shall be a Municipal Committee whether or not its
population is less than seventy-five thousand as per the last available census.
10. Change of name of a
local area.– The Government may, on its own, or on
a resolution of the relevant council approved by not less than two-third of its
councillors for the time being in office, change the name of a local area.
11. Periodic review of
local areas.– (1) Every eight years from the
commencement of this Act, the Commission, shall review all local areas in the
Punjab and if required recommend to the Government extension, curtailment or
otherwise alteration of the limits of one or more local areas, or constitution
of new local areas, or amalgamation or abolition of existing local areas, or
reclassification of a local area.
(2) All recommendations of the Commission
under subsection (1) shall be made in the interest of effective and convenient
local government, or to reflect interests of residents, or to accommodate
changes in the demographics or nature of a local area.
12. Power of the Government
to direct special reviews.– Notwithstanding the provisions of section 11 of
this Act, where the Government upon request of the Commission or a resolution
of one or more local governments approved by not less than two-third of their
respective councillors for the time being in office, or otherwise considers that
a special review of all or one or more local areas is necessary, it may, at any
time, direct the Commission to conduct a special review of the indicated local
areas.
13. Procedure for review of
local areas.– (1) For the purpose of conducting a
review under section 11 or 12 of this Act, the Commission shall:-
(a) ensure
that all local governments, government agencies, other authorities and persons
who may be interested in the review are informed of the proposal to conduct it
and of any directions of the Government which are relevant to it;
(b)
consult local governments of the
local area effected by the review as well as all the relevant government
agencies, other authorities and persons;
(c)
ensure that all local governments, government
agencies, other authorities and persons who may be interested in the review are
informed of every draft recommendation, or any interim decision not to make any
recommendation or any other such order and of the place or places where such
recommendation, decision or order can be inspected; and
(d) take
into consideration any representation made to it within the period specified
for this purpose.
(2) The Government may issue general
directions to the Commission for the conduct of review in the aforesaid manner.
14. Changes in the limits and
re-classification of local areas.– (1) On the recommendation of the Commission, the
Government may, through an order published in the official gazette, extend,
curtail or otherwise alter the limits of a local area, constitute one or more new
local areas, amalgamate or abolish any existing local areas, or reclassify a
local area.
(2) No
extension, curtailment or otherwise alteration of the limits of a local area,
constitution of a new local area, or amalgamation or abolishment of an existing
local area, or reclassification of a local area under this section shall be
ordered unless a period of not more than three months remains in the term of the
respective council under section [13][113] of this Act.
[14][(3) The order under subsection (1) shall become
effective from the next election to the local government.]
Explanation: For the purpose of this
section, re-classification of a local area shall mean to include change of the
existing class of an urban local area to another class of urban local area or
re-designation of a rural local area as an urban local area and vice versa.
Chapter IV – Local Governments
15. Constitution of local governments.– (1)
The Government shall, having regards to the provisions of subsection (2) of
section 3 of this Act, constitute local governments of various classes in the
following manner:-
(a) a
Metropolitan Corporation for each Metropolitan;
(b) a
Municipal Corporation for each Municipality with a population of not less than
two hundred and fifty thousand as per the latest census;
(c) a
Municipal Committee for each Municipality with a population of not less than
seventy-five thousand as per the latest census;
(d) a
Town Committee for each Town; and
(e) a
Tehsil Council for each Tehsil in the Punjab.
(2) Every local government
shall be a body corporate having perpetual succession and a common seal, and,
subject to the provisions of this Act, shall have power to acquire, hold and
transfer property, both movable and immovable, to contract and to do all other
things necessary for the purposes of its constitution; and shall by its name
sue and be sued.
16. Name of a local government.– The Government may, by an order published
in the official Gazette, specify the name by which a local government shall be
known and unless the name of a local government is so specified, it shall be
known as the local government of the respective local area.
Illustration: Pending an order by the
Government, Municipal Committee of a Municipality ‘Z’ shall be known as Municipal
Committee Z.
17. Division, amalgamation or re-classification of local governments.–
(1) The Government may, in accordance with an order under section 14 of this
Act:-
(a) divide
a local government into two or more local governments; or
(b) amalgamate
two or more local governments into one local government; or
(c) re-classify
a local government.
[15][(2) When, as a result of such division,
amalgamation or re-classification, a new local government is constituted or the
limits of a local area are altered under section 14, the Government shall, by
an order, specify the extent to which the new, reconstituted or re-classified
local government shall succeed the local government so divided, amalgamated or
reconstituted.]
(3) No
division, amalgamation, reconstitution or re-classification of a local
government under this section shall be ordered unless a period of not more than
three months remains in the term of the respective council under section [16][113] of this Act.
[17][(4) The order under subsection (1) shall become
effective from the next election to the local government.]
(5) Every order under this section shall be
in writing and published in the official Gazette.
Chapter V – Composition of Local Governments
18. Local government structure.– (1) Every
local government shall consist of:-
(a) a directly
elected head of the local government;
(b) a head’s
cabinet comprising such councillors and professionals as is given at section 19
of this Act;
(c) a council
comprising such number and description of councillors, including the convenor,
as is given at section 20 of this Act to:
(i) keep
under review the performance of duties and exercise of powers by the head of
the local government under this Act;
(ii) investigate
and prepare reports on actions and decisions of the head of the local
government under this Act;
(iii) investigate
and prepare report on any other matter which it considers to be of importance
for the residents;
(iv) submit
a proposal for the purpose of this Act to the head of the local government
where it considers it appropriate; and
(d) an
administration comprising officers and servants of the local government.
(2)
A head of the local government
shall perform such duties and exercise such powers as are mentioned at section
42 of this Act.
(3)
A convenor shall perform such
duties and exercise such power as are mentioned at section 43 of this Act.
(4)
The administration of every local
government shall be headed by a Chief Officer who shall be appointed by the
Government from amongst the officers of the prescribed services.
(5)
The Chief Officer shall perform
such duties and exercise such powers as are mentioned at section 45 of this Act.
19. Composition of the
head’s cabinet.– (1) The head’s cabinet for
various classes of local governments shall comprise such number of councillors
and professionals as mentioned in the First Schedule.
(2) For the purpose of this section, a
professional shall mean a person who has successfully completed sixteen years
of education from a recognized institution and has an experience of not less
than ten years in public administration, public finance, education, public
health, or any other area relating to the functions of the local government.
20. Representation of
councillors in the councils.– (1) Each council shall consist of such
number of general councillors and councillors representing women, religious
minorities and other special interests in a local area as is mentioned in the Second
Schedule, one of whom shall be the convenor.
(2) Nothing
contained in sub-section (1) shall prevent a woman or a person belonging to a
religious minority or other special interest group from being a candidate for
or elected to a general seat.
Chapter VI – Functions of Local Governments
21. Responsibility of local
governments.– (1) For the purposes of this Act:-
(a) A Metropolitan
Corporation, Municipal Corporation and Municipal Committee shall be responsible
for the functions listed in the Third Schedule;
(b)
A Town Committee shall be
responsible for the functions listed in the Fourth Schedule; and
(c)
A Tehsil Council shall be
responsible for the functions listed in the Fifth Schedule.
(2)
Any office, agency or authority established
or maintained by the Government, which at the
commencement of this Act is providing public services or discharging other
duties in relation to the building control, solid waste management, water
supply, and sewerage collection and disposal function in a Metropolitan, shall,
subject to such conditions and control as the Government may impose, stand
transferred to the respective Metropolitan Corporation.
(3)
Every
office, agency and authority referred to in subsection (2) shall be transferred
to the respective Metropolitan Corporation as soon as may be but not later than
six months [18][from
the date of establishment of the Metropolitan Corporation].
(4)
A local government shall undertake
such other functions as are entrusted to it under any other law for the time
being in force.
22. Assignment of
additional responsibilities by Government.– Nothing in section 21 of
this Act shall prevent the Government from assigning any function to a local government
which is not included in the Third, Fourth or Fifth Schedule on such terms and conditions
as may mutually be agreed.
23. Extent of Government control on functions
of the local governments.– (1) Without any prejudice to the
provisions of section 6 of this Act, the Government may, from time to time,
give policy directions and fix objectives for the effective, transparent and
efficient undertaking of functions by a local government.
(2) A local government shall perform
functions listed in Part 1 of the Third, Fourth and Fifth Schedules in such
manner and to such extent as may be directed by the Government.
(3) Having regards to the provision of
subsection (1), the council shall provide for the manner and extent to which
functions listed in Part 2 of the Third, Fourth and Fifth Schedules shall be
performed by the respective local government.
24. Discharge of functions
by local governments.– (1) Subject to subsection (2) below, a local government may discharge
its functions through one or more of the following means, namely:-
(a) an officer
or servant of the local government;
(b) a
joint authority established under sections 30 and 32 of this Act;
(c) another
local government by mutual agreement under section [19][26] of this Act;
(d) an
office, authority or agency owned or operated by the Government by mutual
agreement under section 26 of this Act; and
(e) by
contracting out.
(2) No local government shall contract out
any public service which constitutes or involves the exercise of power to award
administrative or other penalties, interferes with or otherwise affects the
liberty of an individual, involves the power to enter, search or seize any
property, or a power or duty to enforce any law.
25. Delegation of functions
to Panchayats and Neighbourhood Councils.– (1) A local
government may by a mutual agreement, delegate one or more of its functions
listed in Part 2 of the Third, Fourth or, as the case may be, the Fifth Schedule
or one or more public services relating to any such function to a Neighbourhood
Council or a Panchayat.
(2)
In performance of a function or
delivery of a public service delegated under subsection (1), the Neighbourhood
Council or, as the case may be, the Panchayat shall adhere to the general or
specific directions of the local government delegating that function.
26. Agency arrangements.– (1) A
local government may, through a written agreement, make arrangements with any
other local government, or an office, authority or agency of the Government for
any of the following purposes:-
(a)
provision by any party to the
arrangement to the other of any administrative, professional, technical or any
other services related to the functions of that local government;
(b)
the use by one party to the
arrangement of any facility, amenity, vehicle, plant, stores or apparatus
belonging to the other and placement of the services of any person employed in
connection with any facility, amenity, vehicle, plant, stores or apparatus in
question;
(c)
the provision or maintenance by one
party to the arrangement of any works, facility, amenity, vehicle, plant, store
or apparatus for the provision or maintenance of which the other is
responsible.
(2)
An office, authority or agency of
the Government shall not make arrangements under subsection (1) without prior
permission of the Government.
(3)
The expenses incurred
by a local government, joint authority or government agency for carrying into effect
the agreement under subsection (1) shall be defrayed by the local government
for whom services are provided by that local government, joint authority or
government agency.
(4)
In case of a
disagreement on the amount of expenses or the actual value of expenses paid by
a local government during a particular period, the expenses shall be paid by
the local government in such amount and in such manner as may be determined by
the Commission.
(5)
Every local government
and the office, authority or agency of the Government acting under this section
shall keep separate accounts for the purposes of subsection (3) in the
prescribed manner.
27. Appointment of an undertaker
by Government.– (1) In the
interest of economy of effort and effectiveness, the Government may appoint any
of its office, authority or agency to undertake one or more functions listed at
Part I of the Third, Fourth or Fifth Schedule or one or more public services
related to any such function in one or more local areas in the Punjab.
(2) The function or public service referred
to in subsection (1) shall not be undertaken by a local government in respect
of the local areas referred to in this subsection.
(3) All expenses required for the
undertaking of a function or public service referred to in subsection (1) shall
be defrayed by the Government.
(4) The office, authority or agency referred
to in subsection (1) shall, for the purpose of undertaking a function or
provision of a public service, be deemed to be a local government within the
meaning of this Act.
28. Delegation of functions
etc. and agency arrangements not to
diminish responsibility of a local government.– Arrangements made
under clause (b), (c), (d) and (e) of section 24 of this Act, or delegation of
any function under section 25 of this Act and agency arrangements under section
26 of this Act shall not diminish, in any respect, the responsibility of a
local government with regards to the function or public service which it
outsources, contracts out or delegates to another local government, joint
authority, government agency, Panchayat or, as the case may be, a Neighbourhood
Council.
29. Quality and accessibility of public services.– (1) The quality of a
public service provided by a local government in relation to the functions
assigned to it under this Act shall be as under:-
(a) where
standard of provision of a public service is regulated [20][by law], the standard
of provision of that public service shall be deemed to be the standard laid
down by such law;
(b)
where standard of provision of a
public service is not regulated [21][by law], the Government
may, by an order, fix the standard of provision of that public service;
(c)
where standard of provision of a
public service is neither regulated [22][by law] nor fixed by the
Government, the standard of provision of that public service shall be deemed to
be the standard fixed by a professional body concerned with that service; and
(d)
where standard of provision of a
public service is neither regulated [23][by law], or fixed by
the Government or by a concerned professional body, the standard of provision
of that public service shall be that which at the time of provision of the
public service could be reasonably expected to be obtained in the respective
local area.
(2)
All public services provided by a
local government shall meet the quality standards fixed or expected under this
section.
(3)
Each public service provided by a
local government shall be accessible to all such persons for whom that service
is intended.
Chapter VII – Joint Authorities
30. Establishment of joint authorities by voluntary action.– (1) Subject to the limitations
mentioned at section 32 of this Act, the heads of two or more local governments
may, through a written agreement, establish a joint authority for the provision
of one or more of such public services which relate to a function assigned to
them under this Act.
(2)
An agreement referred to in
subsection (1) shall, among other things, provide for:-
(a)
the extent of responsibility of the
joint authority in relation to the provision of a public service;
(b)
the manner in which the joint
authority will discharge its responsibility;
(c)
personnel, facility, amenity,
equipment, plant, stores or apparatus required for effective working of the
joint authority; and
(d)
arrangements for sharing the
expenses of joint authority between constituting local governments.
(3)
A joint authority shall be
responsible to each constituting local governments for
the provision of public services assigned to it.
(4)
The head of the local government of
a constituting local government of a joint authority established under this
section may, after due notice of not less than three months to the other
constituting local governments, rescind from the agreement referred to in
subsection (1).
31. Subsequent joining of a local government.– A local government may join a joint authority through a written agreement [24][between the head of the
local government and the heads of the other local
governments then constituting the joint authority].
32. Power of the Government to establish joint authority in
relation to certain functions.– (1) In the interest of economy of effort and
effectiveness, the Government may by an order, establish a joint
authority for such local governments as may be mentioned in that order, for the
provision of one or more of such public services which relate to their
functions listed in Part 1 of the Third, Fourth or, as the case may be, the Fifth
Schedule.
(2)
Every order under subsection (1)
shall, among other things, provide for:-
(a)
the areas comprising the
jurisdiction of the joint authority;
(b)
public services to be provided by
the joint authority;
(c)
the manner in which the joint
authority will discharge its responsibilities;
(d)
personnel, facility, amenity,
equipment, plant, stores or apparatus required for effective working of the
joint authority; and
(e)
arrangements for sharing of expenses
of the joint authority by the constituting local governments.
(3)
A public service referred to in subsection
(1) shall be provided by the joint authority in the respective local area and
not the constituting local governments.
(4)
No local government shall establish
a joint authority under section 30 of this Act for the provision of any public
service for which a joint authority has been established by the Government
under this section.
(5)
A joint authority established under
this section shall continue unless otherwise ordered by the Government.
33. Operating Officer of a joint authority.– (1) Each joint authority shall have an Operating Officer
who shall be responsible for proper administration and discharge of
responsibilities assigned to that joint authority.
(2) The Operating Officer of a joint
authority established under section 30 of this Act shall be appointed by the
constituting local governments from amongst their officers with mutual
agreement and in case where no such agreement is reached within thirty days of
the establishment of the joint authority, by the Government.
(3) The Government shall appoint Operating
Officer of a joint authority established under section 32 of this Act.
34. Joint committees to oversee and
direct functions of joint authorities.– (1) The constituting local governments may appoint a joint
committee to oversee and direct the proper discharge of functions by a joint
authority established under section 30 of this Act and may also by mutual
agreement determine:-
(a)
the total membership of
the joint committee;
(b)
representation of each
constituent local government in the joint committee; and
(c)
the term of office of
the members of that joint committee.
(2) Representation of constituent local governments
in a joint committee shall be worked out in the following manner:
(a)
the representation of each constituting local government shall not be
less than one member; and
(b) additional representation of a constituting
local government in a joint committee shall be, as nearly as possible,
proportional to its share in meeting the expenses of the joint authority.
(3) The membership of a joint authority
established under section 32 of this Act shall be decided by the Government and
may in addition to the representatives of the constituting local governments
also include such officers or description of officers and other nominees of the
Government as may be mentioned in the order referred to in the said section provided
that the total number of officers and other nominees of the Government shall
not exceed the accumulative strength of representatives of the constituting
local governments in that joint authority.
(4) The head of the local government of the constituting local
government may appoint members of the joint committee from amongst the head’s
cabinet, councillors or officers of the local government.
(5) A member of the joint committee, other than the officer and
other nominee of the Government referred to in subsection (3), shall hold
office during the pleasure of the head of the local government of the respective
constituting local government.
(6) A member of the joint committee shall upon ceasing to be the member
of head’s cabinet, councillor, or as the case may be, the officer of that local
government shall also cease to be a member of the joint committee.
35. Expenses of a joint authority how
defrayed.– (1)
The expenses incurred by a joint authority shall be defrayed in the following
manner:-
(a)
in case of a joint
authority established under section 30 of this Act, by the constituting local
governments in such proportions as agreed by them;
(b)
in case of a joint
authority established under section 32 of this Act, by the constituting local
governments in such proportions as ordered by the Government.
(2) In case
of a disagreement on proportions in which the expense are to be shared or the
actual value of share paid by a constituting local government during a
particular period, the expenses shall be paid by each constituting local
government in such amount and in such manner as may be determined by an
arbitrator appointed with the agreement of the disputing local governments and where
the disputing local governments fail to agree to an arbitrator within thirty
days of the arising of the dispute, by an officer authorized by the Government.
(3) Every joint authority shall keep its
accounts in the prescribed manner.
36. Assets etc. of a joint authority.–
(1) In relation to the working of a joint authority, the
constituting local governments may make arrangements for:
(a)
temporary transfer of officers and
staff to the joint authority;
(b)
use of any facility, amenity,
vehicle, equipment, plant, stores or apparatus of a constituent local
government by the joint authority in relation to provision of a public service
and placement of the services of any person employed in connection with the
facility, amenity, equipment, plant, store or apparatus in question with the
joint authority; and
(c)
purchase of any facility, amenity,
vehicle, equipment, plant, stores or apparatus or employment of any person in
relation to the working of the joint authority.
(2)
A constituting local government
which provides funds for the purchase of any facility, amenity, equipment,
plant, store or apparatus of a joint authority shall be the joint owner of such
facility, equipment, plant, store or apparatus to the extent determined by
subsection (3).
(3)
The share of a constituting local
government in a facility, amenity, equipment, plant, stores or apparatus owned
or used by a joint authority shall be proportionate to the capital cost of that
facility, equipment, plant, stores or apparatus property shared by that local
government.
37. Dissolution of a joint authority.–
(1) A joint authority
established under section 30 of this Act shall stand dissolved if:
(a)
all
constituting local governments of that joint authority, after due notice, agree
to such dissolution;
(b)
as a result of rescission of a
constituting local government of that joint authority under subsection (4) of
section 30 of this Act, the number of remaining constituting governments becomes
less than two; or
(c)
the Government orders as such after
being satisfied that the performance of the joint authority has remained
unsatisfactory consistently or the joint authority has become economically
unviable or the constituting local governments are consistently defaulting in
defraying their respective share of expenses to the joint authority.
(2)
A joint authority established under
section 32 of this Act shall not dissolve unless ordered as such by the
Government.
(3)
Subsequent
to the dissolution of a joint authority, the public services provided by that
joint authority shall be provided by the respective local governments.
38. Succession of a joint authority.– (1) Upon dissolution of a joint
authority:-
(a)
all facilities, amenities,
vehicles, equipment, plants, stores and apparatus purchased by the joint
authority shall be succeeded by each constituting local government, as nearly
as possible, proportional to the expenses of the joint authority shared by it
during the entire period of its continuation;
(b)
all facilities, amenities,
vehicles, equipment, plants, stores and apparatus lent to the joint authority
by a constituting local government shall return to that local government;
(c)
all officers and staff transferred
or lent to the joint authority by a constituting local government shall return
to that local government;
(d)
left over funds, if any, of the
joint authority shall be succeeded by each constituting local government in
such amounts which are, as nearly as possible,
proportional to the expenses of the joint authority shared by it during the
entire period of its continuation.
(2) Any
disagreement amongst the constituting local governments on the issue of
succession of a joint authority shall be determined by an arbitrator appointed
with the agreement of the disputing local governments and where the disputing
local governments fail to agree to an arbitrator within thirty days of the
dissolution, by an officer authorized by the Government.
Chapter VIII – Authority of Local Governments
39. Extent of authority of
local governments.– (1) The authority of every
local government shall be limited to the discharge of functions assigned to it
under this Act or any other law for the time being in force.
(2) Subject to the provisions of section 23
of this Act, the authority of a local government shall extend to the doing of
all acts that are necessary for the due discharge of its functions or acts that
are likely to facilitate or are conducive or incidental to the discharge of its
functions under this Act or any other law for the time being in force.
40. Manner of exercise of authority
by a local government.– (1) Subject to the provisions of this Act, the executive authority of
a local government shall vest in and be exercised by its head through officers of
the local government authorized by him in accordance with this Act.
(2)
The head of the local government,
council or any of its committee or sub-committee may direct, guide or supervise
but not directly engage in the discharge of a function of the local government.
(3)
The council and its committees and
sub-committees shall act through resolutions in accordance with the provisions
of section 55 of this Act.
41. All acts and orders to be taken or made in the name of
local government.– All acts and orders of a local government
shall be expressed to be taken or made in its name and shall be authenticated
in the prescribed manner.
Chapter IX – Duties of Certain
Functionaries
42. Duties and powers of a head of the local government.– (1) In addition to any
other duty assigned to him under this Act or any other law for the time being
in force, a head of the local government shall be responsible for:-
(a) ensuring
that the business of the local government is carried out strictly in accordance
with this Act and all other relevant laws for the time being in force;
(b) efficient,
effective and transparent functioning of the local government;
(c) accomplishment
of operational, developmental and fiscal objectives set out by the council or
as the case may be the Government under section 23 of this Act;
(d) presenting
not less than two reports on the performance of local government to the council
and the Government during each financial year;
(e) representation
of the local government at civic or ceremonial functions;
(f)
any other duty, not being the duty
assigned to any other authority under this Act, as the council may, by a
general or special resolution direct;
(g) any
other duty as may be assigned to him by the Government; and
(h) general
supervision and control over officers of the local government for the above
purposes.
(2) A head of the local government shall, in
relation to the above duties or for the transaction of business of the local government,
exercise:-
(a) such powers as are
conferred upon him under this Act or any other law for the time being in force;
and
(b) such powers of the
local government, not being the powers of the council or the powers assigned to
any officer or authority under this Act, as are delegated upon him by the council
through a resolution.
(3) Subject to other provisions of this Act,
a head of the local government shall, during the performance of his duties or
exercise of his powers, observe the general policy or directions of the Government.
(4) At the end of each calendar year or at
such other appointed interval, the head of the local government shall evaluate
the work done and results obtained by the Chief Officer as against his duties
and the manner in which he exercised his powers under this Act and submit a
report to the Secretary in the prescribed manner.
(5) Notwithstanding him being not a councillor,
a head of the local government shall have the same right to be present at any
meeting of the council, or the meeting or any of its committee or sub-committee
and of taking part in the discussion thereat, or to make an address, or any
statement or explanation of facts as if he were a councillor or a member of
such committee or, as the case may be, the sub-committee, but he shall not vote
upon any proposition at such meeting.
43. Duties and powers of a convenor.– (1) In addition to any other duty
assigned to him under this Act, a convenor shall:
(a)
convene
meetings of the council as required under this Act;
(b)
preside over,
and ensure orderly conduct of meetings of the council at which he is present;
(c)
maintain
record of meetings of the council; and
(d)
constitute
committees of the council under this Act and oversee their working.
(2)
A convenor shall, in relation to the
above duties, exercise such powers as are conferred upon him under this Act or
any other law for the time being in force.
(3)
Without prejudice to the provisions
of subsection (2), a convenor may, in relation to above duties, direct a
councillor to abstain from or withdraw immediately from a meeting where in his
opinion the attendance of meeting by that councillor would constitute conflict
of interest under section 216 of this Act or the conduct of that councillor during the meeting is grossly disorderly.
44. Duties of a councillor.– (1). While acting under this Act, a councillor shall:
(a) serve the overall interest of the local area which he
represents; and
(b) ensure that there is no conflict, or possible
conflict between his private interest and honest performance of his role of
serving public interest.
(2) A councillor shall not direct or attempt
to direct an officer or servant of a local government, or direct or attempt to
direct on the manner in which the duties of an officer or servant of the local
government shall be performed.
45. Duties and powers of Chief Officer.–
(1) A Chief Officer shall be the principal officer of the local government and
all other officers and servants of that local government shall be subordinate
to him.
(2) In addition to any other duty assigned
to him under this Act or any other law for the time being in force, a
Chief Officer shall:-
(a) work
as the principal accounting officer of the local government;
(b) assist
and advise the head of the local government, convenor, committees and
sub-committees of the council in proper discharge of their duties under this
Act;
(c) ensure
timely, effective and efficient implementation of local government policy and
decisions;
(d) supervise
and control officers and servants of the local government and coordinate and
synergize the work of all offices of the local government;
(e) maintain
financial and administrative discipline and ensure that the business of the
local government is carried out strictly in accordance with the provisions of
this Act and other laws for the time being in force;
(f) enter
into and manage all contracts on behalf of the local government;
(g) undertake
all procurements on behalf of the local government;
(h) maintain
records pertaining to the functions of the local government;
(i) act
for and on the behalf of the local government in every action or other legal
proceedings whether instituted by or against the local government;
(j) assist
relevant authorities in the circumstances of emergency; and
(k) perform
such other duties as are assigned to him by the Government, head of the local
government, council or a committee or sub-committee of the council.
(3) A
Chief Officer shall, in relation to the above duties, exercise:-
(a) such powers as are
conferred upon him under this Act or any other law for the time being in force;
(b) such powers of the
local government as are delegated upon him by the council through a resolution;
and
(c) such powers of the head
of the local government as are delegated upon him by the head of the local
government.
(4) Subject
to other provisions of this Act, the Chief Officer shall, during the
performance of his duties or exercise of his powers, observe the general policy
and any specific direction of the Government.
46. Attendance of council meetings etc. by Chief Officer.– (1) The Chief Officer shall have the
same right to being present at any meeting at the council, or a committee or a sub-committee
of the council and of taking part in the discussions thereat as if he were a councillor
or a member of such committee or, as the case may be, the sub-committee, and
may at any time make a statement or explanation of facts, but he shall not vote
upon, or move, any proposition at such meeting.
(2) In so far as it is not inconsistent with
or does not interfere with the due discharge of his duties, a Chief Officer
shall, when required upon by the convenor attend a meeting of the council or a
committee or sub-committee of the council and render such advice or provide
such assistance as may reasonably be required of him.
47. Duty of Chief Officer etc. in case of an illegal order or
instruction.– (1) Where in
the opinion of the Chief Officer or any other officer or servant of the local
government, any resolution of the council or any of its committees or
sub-committee, or any decision, order, instruction or act of the head of the
local government, convenor, or a councillor is not in accordance with this Act
or any other law for the time being in force, or is motivated, or is likely to lead
to wasteful or improper expenditure, or is likely to lead to the breach of
peace or cause injury or annoyance to the public or any class or body of
persons or is otherwise prejudicial to the public interest, he shall:
(a)
in case
of him being the Chief Officer, refer every such resolution, decision, order,
instruction or act in writing, along with the grounds of his opinion, to the
Government for decision;
(b)
in case
of him being any other officer, send every such resolution, decision, order,
instruction or act in writing, along with the grounds of his opinion, to the
Chief Officer who shall, after recording his own opinion in the matter, forward
the same to the Government.
(2) The Government shall, after due notice
and inquiry, decide every reference of the Chief Officer received under this
section and such decision shall be final as regards to the validity of the
resolution, decision, order, instruction or act.
48. Personal responsibility for acts done and expenditure
incurred without lawful authority.– Every person exercising any authority
for the purposes of this Act, shall be personally responsible for any act done
by him personally or done under his direction; any loss, financial or
otherwise, suffered by a local government due to a decision made by him
personally or under his direction; or any expenditure incurred by him
personally or incurred under his direction without lawful authority or in
violation of any provision of this Act or any other law for the time being in
force.
Chapter X – Contracts
49. Principles governing contracts.– (1) Without prejudice to the
provisions of any other law for the time being in force governing contracts and
public procurements, all contracts for the carrying out of a work, or the
purchase of goods or services of any description, shall be made by a local government
having regards to the following principles, namely:-
(a) open and effective competition;
(b)
value for
money; and
(c) ethical behaviour and fair dealing.
(2) All contracts shall be made, varied or
discharged by a local government in the prescribed manner.
50. Form of contract.– All contracts made, varied or discharged on
behalf of a local government shall be in writing and expressed to be made in
the name of that local government.
51. Power to make contract.– (1) Subject to the provisions of this
Act, all contracts shall be made, varied or discharged on behalf of a local government
by its Chief Officer.
(2) The
Government may, by an order specify that contracts for carrying out of a work
or the purchase of goods or services of a particular nature or exceeding a
particular pecuniary value shall not be made, varied or discharged by the Chief
Officer without the prior approval of the council.
(3) The
Government may likewise, by an order specify that contracts for carrying out of
a work or the purchase of goods or services of a particular nature or exceeding
a particular pecuniary value shall not be made, varied or discharged without
prior approval of the council and confirmation of such approval by an officer
authorized by the Government.
(4) All
contracts made by the Chief Officer on his own authority shall be reported to
the head of the local government immediately and the council at the meeting
next following the making of the contract.
52. Validity
of a contract.– (1) No contract executed otherwise than in conformity with the
provisions of this chapter shall be binding on the local government.
(2) No contract made by a
local government for the provision of a service shall be valid unless it is in
conformity with the limitation prescribed under subsection (2) of section 24 of
this Act.
Chapter XI – Meetings
of the Council
53. Disposal
of business of a local government.– All business of a local government shall, to
the extent provided under this Act, be disposed of at the meetings of its
council, or by the head of the local government, or by the officers of the
local government in the prescribed manner.
54. Business
of the council to be disposed of at meetings.– Every matter required by any provision of
this Act or the rules or bye-laws to be decided by the council or its committee
or sub-committee shall be decided at a meeting of the council, committee or, as
the case may be, sub-committee, held in the prescribed manner.
55. Decisions
at the meetings how made.– (1) Save as otherwise provided under this Act, all matters
or questions which come before the council, a committee or a sub-committee shall
be decided by a simple majority of votes of the councillors or, as the case may
be, the members present at the meeting and voting.
(2) The convenor shall not vote on any
matter or question pending decision before the council except in case of
equality of votes.
(3) In the like manner, a councillor
presiding over a meeting of the committee or sub-committee of the council shall
not vote on any matter or question pending decision before it except in case of
equality of votes.
56. Ordinary, special and emergency meetings.– (1) Every matter required by any provision of
this Act or the rules or bye-law to be decided by the council shall be
transacted at an ordinary meeting unless required by this Act or the rules or
bye-law to be transacted at a special meeting.
(2) Any matter to be decided by the council
in relation to the circumstances of emergency may be transacted at an emergency
meeting.
57. Presiding
over of council meetings.– (1). All meetings of a council,
shall ordinarily be presided over by the convenor.
(2). Notwithstanding the provisions of
subsection (1), first meetings of the council shall be presided over by the convenor
of the council immediately preceding that council and in case there was no council
immediately preceding that council, by an officer to be authorized in this
behalf by the Government.
58. Quorum
of council meetings.– (1) Unless otherwise provided under this Act, or the rules, the
quorum necessary for transaction of business at an ordinary or special meeting
of the council shall be one-half of the councillors holding office at the time.
(2) The quorum necessary for transaction of
business at an emergency meeting shall be one-third of the councillors holding
office at that time.
(3) If at any ordinary, special or emergency
meeting of a council, the number of councillors present does not constitute a
quorum, the convenor shall adjourn the meeting to such other day as he may
think fit, and the business which would have been brought before the original
meeting, if there had been a quorum present, shall be brought before and
transacted at the adjourned meeting in the usual manner.
(4) If at any of the subsequent meeting
called under subsection (2) the number of councillors present is again
insufficient to constitute a quorum, the convenor shall adjourn the meeting to
such other day as he may think fit, and the business which would have been
brought before the original meeting, if there had been a quorum present, shall
be brought before and transacted at this meeting whether there be a quorum
present thereat or not.
59. Frequency
of council meetings.– Every council shall meet at
least once in every calendar month and shall be in session for at least fifty
accumulated days in a calendar year.
60. Councillors, members and certain other
persons to abstain from meetings on account of personal interest.– (1) Notwithstanding
anything to the contrary in this Act, a convenor shall not preside over or take
part, in any manner, in the consideration or discussion, or to vote on any
question with respect to a matter which is to be discussed, considered or
decided by the council if he has an interest in that matter as defined in
section 216 of this Act.
(2) In the like manner, a councillor shall not take part, in any
manner, in the consideration or discussion, or to vote on any question with
respect to a matter which is to be discussed, considered or decided by the
council, a committee or sub-committee of whom he is a member if he has an
interest in that matter as defined in section 216 of this Act.
(3) A person not being a
councillor, who is otherwise authorized to participate in a meeting of the
council or is a member of a committee or sub-committee under this Act, shall
not take part, in any manner,
in the consideration or discussion, with respect to a matter which is to be
discussed, considered or decided by the council or a committee or sub-committee
of whom he is a member if he has an interest in that matter as defined in
section 216 of this Act.
61. Vacancy
or defect in membership not to effect power of a council to act.–
(1) A council shall
have the power to act notwithstanding any vacancy in its membership.
(2) No proceedings of a council shall be
invalid merely by the reason that a person who was, for the time being, not
entitled to do so, sat and voted or otherwise took part in its proceedings.
62. Right
of public to attend council and committee meetings.– (1)
Subject to the provisions of subsections (2) and (3) below, every meeting of
the council, committee and sub-committee shall be open to the public.
(2) The convenor presiding over a meeting
referred to in subsection (1), may exclude public from whole or part of the
proceedings of a meeting if majority of the councillors present there at
consider that public information of the proceedings of the meeting shall be
prejudicial to public interest by reason of confidential nature of business to
be transacted at the meeting.
(3) Nothing in subsection (1) shall affect
or derogate the power of the convenor to exclude a person from the meeting for
the purpose of suppressing or preventing disorderly conduct or other
misbehaviour at, or disturbance of, the meeting.
63. Preservation of order at council meetings.– (1) The convenor shall be responsible for orderly conduct of the
meeting of the council and for this purpose may direct a councillor or a person
witnessing the meeting whose conduct, in his opinion, is grossly disorderly to
withdraw immediately from the meeting.
(2) The councillor or person ordered to
withdraw from a meeting under subsection (1) above shall withdraw from the
meeting forthwith and shall also absent himself during the remainder of day’s
proceedings.
(3) If a councillor is ordered to withdraw from
two meetings consecutively, the convenor may while making such order also
suspend the councillor from attending the meetings for any period not exceeding
thirty days and the councillor shall absent himself from the meetings
accordingly.
(4) Where the councillor referred to in
subsection (1) tenders an apology to his satisfaction, the convenor may remit
the period of suspension of the councillor.
(5) If the councillor or the person ordered
to withdraw from the meeting under subsection (1) above, unlawfully remains in
the meeting, the convenor may take such steps as he deems fit to cause him to
be removed.
64. Record
of proceedings of meetings.– (1) The names of councillors
present and minutes of the proceedings at each meeting of the council shall be
drawn up and recorded in the prescribed manner in a book to be kept for the
purpose.
(2) The minutes of a meeting recorded under
subsection (1) shall be signed by the convenor and shall at all reasonable time
and without charge be open to inspection by all councillors and the public.
(3) No councillor shall be entitled to
object to the minutes of a meeting in which he was not present.
(4) The minutes of a meeting to which public
is excluded under subsection (2) of section 62 of this Act shall not be open to
inspection by public unless otherwise ordered by the Government or the respective
council.
65. Indemnity of councillors in relation to anything said in
proceedings of a meeting.– (1) No head of the local government, convenor,
councillor or other person shall be liable to any proceedings in any Court in
respect of anything said by him or any vote cast by him in the meeting of a council,
committee or sub-committee so long as such action does not:
(a)
undermine the ideology, integrity
or solidarity of Pakistan; or
(b)
seek to create or excite feelings
of enmity, ill will, or hatred between different communities, sects, classes or
sections of citizens of Pakistan; or
(c)
contains any indecent, obscene,
scurrilous or ironical expressions or remarks to defame any person.
(2) A head of the local government, convenor
or councillor who acts in contravention of the provisions of sub-section (1) may,
without prejudice to any other action against him, be disqualified and removed
from his office by the Government after due notice and inquiry in the
prescribed manner.
66. Defraying
of expenses in relation to meetings.– A local
government may, in the prescribed manner, make payments to defray any expenditure
reasonably incurred by its head of the local government, convenor, councillor
or officer, or any other member of its committee or sub-committee in respect of
attendance of a meeting of the council, committee or, as the case may be, a sub-committee.
67. Bye-laws
for meetings.– (1). Having regards to the provisions of this Act and the
rules, every local government shall, within three months of the assumption of
office, frame bye-laws for the conduct of its meetings.
(2).
Where a local government fails to timely meet the
requirements of subsection (1), the Government may prescribe bye-laws for that
local government which shall be valid as if framed by that local government.
Chapter XII – Committees and
Sub-committees of the Council
68. Appointment
of committees and sub-committees.– (1) A council may appoint a
committee for any general or special purpose and may also delegate to such
committee, with or without restrictions or conditions, any of its business
except the power with respect to approval of receipts and expenditure, rates
and taxes, bye-laws, or the powers with respect to acquiring, holding or
disposing of local government properties.
(2) Without
any prejudice to the provisions of subsection (1), every council shall
constitute the following committees:–
(a)
A committee to oversee
financial matters of the local government including its receipts and
expenditure;
(b)
A committee to oversee the
formulation and delivery of local development plan and annual development
plans;
(c)
A committee to oversee maintenance
of accounts and conduct of audits and implementation of the recommendations of
the audit reports; and
(d)
A committee to oversee
provision of infrastructure and public services in the local area.
(3) A committee appointed under this section
may, subject to any direction of the council, appoint a sub-committee, and may
delegate to such sub-committee with or without restrictions any business
delegated to the committee by the council under subsection (1).
69. Membership
of a committee or a sub-committee.– (1) The number of members of a committee and
their respective term of office shall be such as may be determined by the council.
(2) Subject to any restrictions imposed by the
council, the number of members of a sub-committee and their respective term of
office shall be such as may be determined by the committee constituting it.
(3) While constituting a committee or a sub-committee,
the council or, as the case may be, the committee may appoint a person as member
of the committee or sub-committee who is not a councillor.
(4) A person, not being a person in the
service of Pakistan or in the service of a local government, shall not be
appointed as a member of a committee or sub-committee unless he is otherwise
qualified for being elected as a member of a council under this Act.
70. Requirement
of political balancing in the committees.– (1) Every political party and electoral
group represented in the council shall be represented in every committee of
that council in such a manner that:
(a)
the number of seats allocated to a political party or electoral
group in a committee shall bear, as nearly as may be, the same proportion to
the number of total seats in that committee as to the number of councillors of
that political party or electoral group in the council to the total number of councillors
of that council; and
(b)
the number of total seats allocated to a political
party or electoral group in all the committees shall bear, as nearly as may be,
the same proportion as to the number of total seats in all the committees as to
the number of councillors of that political party or electoral group in the
council to the total number of councillors of that council.
(2) If, in calculating a ratio for the
purposes of sub-section (1), the number of seats reserved for a political party
or electoral group does not come to be a whole number and such number is less
than one-half, the number shall be rounded down to the next lower number; or
one-half or more, the number shall be rounded up to the next higher level.
71. Cessation
of a committee or sub-committee.– (1) A council
which appoints a committee or a committee which appoints a sub-committee, may,
at any time, revoke any such appointment and may also revoke or vary anything
delegated, or any restrictions or conditions imposed or any matter fixed under
section 68 of this Act.
(2) A council shall have a similar power
with respect to revocation of appointment or revoking or varying anything
delegated, or any restriction or conditions imposed or any matter fixed in
relation to a sub-committee as that of a committee.
72. Cessation of membership of a committee or
sub-committee on loss of membership of council.– Every member of a committee or sub-committee who was, at the
time of his appointment, a councillor shall, upon ceasing to be such councillor,
also cease to be a member of the committee or sub-committee.
73. Exemption
from personal liability of a member who is not a member of local government.– A member of a committee or sub-committee
who is not a councillor shall have the same exemption from personal liability
as if he were a councillor.
74. Bye-laws for committees
and sub-committees.–
(1) Having regards to the provisions of this Act and the rules, every local government
shall, within three months of the assumption of office, frame bye-laws for the
constitution and conduct of its committees and sub-committees.
(2) Where a local government fails to timely
meet the requirements of subsection (1), the Government may prescribe bye-laws
for that local government which shall be valid as if framed by that local
government.
75. Certain provisions of Chapter XI to apply
to committees and sub-committees.– The provisions of sections 58, 61, 62, 63 and
64 of this Act relating to the meeting of the council shall, mutatis mutandis, apply to the meetings
of the committees and sub-committees.
PART 3
ELECTIONS, TERM OF OFFICES AND
RELATED MATTERS
Chapter XIII – Authority for Local
Government Elections
76. Election
Commission to conduct local government elections.– (1) All elections under this Act shall be
conducted by the Election Commission.
(2) The Election Commission shall undertake
such measures and make such arrangements as are necessary for the conduct of
elections in accordance with the law and in a just, fair and transparent
manner.
[25][(3) The
Election Commission shall keep in safe custody the record of an election
including the votes secured by a political party or an electoral group for a
period specified in the Elections Act.]
[26][77. Submission of complaints.– (1) During the process of
election, a person may submit a complaint to the Election Commission, District
Returning Officer or Returning Officer other than an election dispute.
(2) The Election Commission, District
Returning Officer or Returning Officer may process and decide a complaint under
subsection (1) in accordance with the Elections Act.]
78. Election
Commission to report on elections and certain other matters.–
(1) The Election Commission
shall, soon after the completion of every election under this Act, prepare and
publish, in such manner as it may consider appropriate, a report on the
administration and results of the election.
(2) The Election Commission shall keep under
review, and from time to time submit reports to the Government on such matters
which it considers important in relation to elections under this Act.
79. General
powers of the Election Commission.– Without prejudice to any other specific power
vested in it under this Act or any other law for the time being in force, the
Election Commission shall have the power to issue such directions or orders
including the powers to review an order passed under this Act and to make such
consequential order as may be necessary for the performance of its duties under
this Act.
80. All
authorities and persons to assist the Election Commission.–
(1) The Election Commission may require any person or authority in the
Punjab to perform such function or render such assistance as may be required
for the purposes of this Act.
(2) It shall be the duty of all persons and
authorities required to perform a function or render any assistance under
subsection (1) to perform such function or render such assistance, in as much
as may be reasonably possible.
(3) The Government shall make available to
the Election Commission the services of such of its officers and servants as
the Election Commission may require for the purposes of this Act.
Explanation: For the purpose of this section, any reference to
authority shall include an authority which is not owned or controlled by the
Government.
[27][81. Delegation of powers.– The Election Commission may delegate any of its
functions or powers in accordance with the Elections Act.]
82. Election
Commission to regulate its own procedure.– The Election Commission shall, subject to
this Act and the rules, regulate its own procedure.
Chapter XIV – Election Method, Franchise
and Related Matters
83. Election
method in general.– (1) Subject to
the provisions of subsection (12) and (13), an election under this Act shall be
held on the basis of adult franchise through secret ballot in the prescribed
manner and involve:
(a)
the return of the head of
the local government;
(b)
the return of the councillors.
(2) The head of the local
government shall be elected on the basis of simple majority in terms of section
97 of this Act.
(3) The councillors shall be
elected on closed list proportional representation basis in terms of section 97
of this Act.
(4) The head of the
local government and all councillors, except the councillors to the seats
reserved for religious minorities, shall be elected by all eligible voters of
the respective electoral unit.
(5) The councillors to the
seats reserved for religious minorities shall be elected by eligible voters
belonging to all religious minorities of the respective electoral unit.
[28][(6) In addition to the candidate for the office
of the head of the local government, a political party or an electoral group
shall field at least as many qualified candidates for election as there are
seats of general councillors and seats reserved for women, religious
minorities, peasants and workers.]
[29][(7) Where a political party or an electoral
group is contesting an election under this Act, its candidates for councillors
shall contest election on the list of the political party or the electoral
group prepared under subsection (8).]
[30][(8) A
political party or an electoral group contesting election under this Act shall
indicate the names of the candidates for different seats of councillors on the
list in ranking order in which they may be elected on the basis of votes
obtained by the political party or the electoral group.]
(9) After expiry of the date fixed for submission of nomination
papers for an election under this Act, the list referred to in subsection (8)
shall not be varied by any political party or, as the case may be, any
electoral group in terms of ranking order of the candidates or the name of the
candidates by way of addition of a fresh name or omission of an existing name
in the list.
(10) Nothing in this section shall prevent a political party or an
electoral group from:
(a) nominating not more than two additional candidates for the election of a head of the local government to provide for rejection of the appointed candidate under section 92 of this Act, or his inability to contest election for any other reason; and
[31][(b) fielding as many qualified
candidates to the seats of various categories of councillors in excess of but
not less than the number of such seats provided for the respective council
under section 20 keeping in view rejection of nominations under section 92, or
for filling casual vacancies during the term of the council for any reason
under section 119.]
[32][(11)* * * * * * * *]
(12) The convenor shall be
elected by the councillors from amongst themselves in the prescribed manner through
simple majority of votes.
(13) Where the office of the
head of the local government or, as the case may be, the convenor falls vacant
during their term of office, they shall be elected in terms of section 118 and
119 of this Act receptively.
84. Electoral
units.– (1) The entire local area shall constitute
one multi-member at large electoral unit for elections to the respective council.
(2) The Election Commission shall, not less
than sixty days prior to the date fixed for the election, notify electoral
units in the official gazette.
[33][(3) The
electoral units constituted under this section shall remain valid for every
subsequent election under this Act unless altered by the Election Commission
subsequent to review of local areas under this Act.]
[34][85. Enlistment
of an electoral group.– (1) The Election Commission
shall, through public notice, specify the dates for enlistment of electoral
groups of a local government with the office of the Election Commission for
election under this Act.
(2) The
head of a proposed electoral group may, in the prescribed manner, apply for
enlistment of the electoral group and in case of:
(a) a Metropolitan Corporation, submit a list of two hundred or
more members of the electoral group and deposit a non-refundable fee of fifty
thousand rupees;
(b) a Municipal Corporation, submit a list of one hundred or more
members of the electoral group and deposit a non-refundable fee of twenty-five
thousand rupees; and
(c) any
other local government, submit a list of fifty or more members of the electoral
group and deposit a non-refundable fee of ten thousand rupees.]
[35][86. *
* * * * * * * * * * * * * * * * *]
[36][87. Electoral
rolls.– (1) The Election Commission shall use the electoral
rolls prepared under the Elections Act for election under this Act.
(2) For
issuance of an additional ballot paper to a voter belonging to the religious
minorities in an electoral unit, the Election Commission shall specify mark or
any other indication on the electoral rolls for the identification of such
voter.]
[37][88.
* * * * * * * * * * * * * * * *]
[38][89.
* ** * * * * * * * * ****** ]
90. Right
to vote.– (1) No person shall be eligible to vote in an electoral unit unless his name,
for the time being, appears in the electoral roll of that electoral unit.
[39][(2) Subject to subsection (3), a voter may cast
only one vote for the election to the offices of the head of the local
government and councillors to the general seats and seats reserved for women,
peasants and workers.]
(3) A person whose name, for the time being,
appears on electoral roll of religious minorities in an electoral unit, shall in
addition to the right to cast a vote under subsection (2), have the right to cast
a second vote for the election to the office of councillor or councillors reserved
for religious minorities.
Chapter XV – Conduct of Elections
91. Notification
of election date and call up for election.– (1)
Through an order published in the official gazette, the Election Commission
shall, after having consulted the Government on this matter, fix a date or
several dates for elections to one or more electoral units under this Act and
thereby call upon:
(a)
the voters of the electoral unit to elect the head of
the local government and councillors; and thereafter
(b)
the councillors to elect the convenor.
(2) Subject to the provisions of section 118
of this Act, the date or dates fixed for an election under sub-section (1)
shall be no earlier than one hundred and twenty days from the date of
publication of the order in the official gazette.
92. Only
nominated and eligible persons allowed to contest elections.–
(1) No persons shall be nominated
for an election under this Act unless he is otherwise eligible for an election
in terms of section 109 of this Act.
[40][(2) A person shall not contest
an election under this Act unless a political party or an electoral group
includes the person as candidate for head of the local government or on its
list of candidates of councillors under the Act.]
[41][(3) The Returning Officer shall not accept the
nomination of a candidate unless the amount as may be prescribed is paid in
cash or in the form of a bank draft or pay order in favour of the Election
Commission by or on behalf of the candidate as candidature fee.
(3A) The candidature fee paid by or on behalf of
the candidate shall be non-refundable.
(3B) The Returning Officer shall deposit the
cash, bank draft or pay order received as candidature fee as may be prescribed.
(3C) A candidate may pay only one candidature
fee even if the candidate is nominated for the same seat by more than one
nomination papers.]
(4) The [42][Returning Officer] shall, after public
notice and hearing the person nominated as a candidate or a person authorized
by him in this behalf, satisfy itself that each nomination has been properly
made and the person nominated as a candidate is eligible to be a candidate for
the relevant election under this Act.
[43][(5) A candidate shall not contest election under
this Act unless the Returning Officer is satisfied that the candidate is
validly nominated and qualified to be a candidate under this Act.]
[44][93. Polling stations and appointment of electoral officers.– The
Election Commission shall set up such number of polling stations and polling
booths as may be required for an election under this Act and may appoint such
number of electoral officers as it considers appropriate for such election
under the Elections Act.]
94. All
political parties, electoral groups and candidates allowed to appoint election
and polling agents.– [45][(1) Every
political party and electoral group contesting election under this Act may
appoint one election agent for the entire electoral unit and one polling agent
for each polling booth at every polling station in the electoral unit.]
(2) No person shall be appointed as an election
agent or a polling agent under this section unless he is otherwise qualified to
be elected as a councillor under this Act.
[46][95. * * * * * * * * * * * * * * * * *]
96. Code
of Conduct for elections.– (1) The Election
Commission shall by an order published in the official gazette, prescribe a
Code of Conduct for candidates, election agents, polling agents and other
relevant persons for every election under this Act.
(2) The Code of Conduct
prescribed under subsection (1) shall, among other things, define the
consequences of violation of its provisions and the authority responsible for
taking cognizance of such violations and their powers for such purpose.
97. Returned
candidates.– (1) The
candidates to the office of the head of the local government appointed by the
political party or, as the case may be, the electoral group, securing highest
number of votes in the respective electoral unit shall stand elected.
(2) The candidates to the office of a councillor
shall be elected in the ranking order given by the political party or the electoral
group on whose list they are contesting under section 83 of this Act, in
proportion to the votes secured by that political party or, as the case may be,
electoral group in the respective electoral unit in the prescribed manner.
[47][(3) Where there is equality of votes between two
or more political parties or electoral groups obtaining highest votes, the
Returning Officer shall forthwith draw a lot in respect of such political
parties or electoral groups and on whom the lot falls, its candidate for head of the local
government shall be declared elected.]
(4) The councillor securing highest number
of votes of the councillors in a special meeting of the council shall stand
elected as the convenor.
(5) Immediately after the counting of votes,
the results of every election under this Act shall be announced through a
public notice by [48][the Returning Officer] which shall be
followed by a notification in the official gazette by the Election Commission.
[49][98. Election to be called in question only before Election Tribunal.– (1) No election under this Act shall be called in question except through an election petition made to the Election Tribunal constituted under the Elections Act.
(2) The Election
Tribunal shall follow procedure and exercise powers under the Elections Act.]
[50][99. **************]
[51][100.**************]
[52][101.
**************]
[53][102.
**************]
[54][103.
**************]
[55][104.
**************]
[56][105.
**************]
[57][106. Notification of election, resignation and removal.– (1) The Election
Commission shall, within fifteen days from the date of receipt of information,
notify every election or a vacancy occurred due to death, resignation,
disqualification or removal of a head of a local government, convenor or
councillor and publish the same in the official Gazette.
(2) The Government shall immediately inform
the Election Commission about occurrence of the vacancy.]
107. Limit of election expenses and consequences of exceeding such
limit.– (1)
Election expenses of a candidate to an election under this Act, his agent
or any other person on his behalf, shall accumulatively not exceed such amount
as [58][may be prescribed and different amount may be prescribed for different
categories of candidates].
(2) Without any prejudice to
the provisions of section 273 of this Act, where election expenses of an
elected candidate exceed the limit specified under subsection (1), he shall be
disqualified by the Election Commission from holding his office.
108. Duty to declare election expenditure and consequences of failure.– (1)
Every candidate shall, in not more than thirty days from the date of
an election under this Act, submit a return on expenditures incurred by him,
his agent or by some other person on his behalf on that election.
(2) Without any prejudice to the provisions
of section 274 of this Act, an elected candidate who fails to submit a return
under subsection (1), or submits a return that contains particulars that to the
knowledge of the candidate are false or misleading in a material particular, shall
be disqualified by the Election Commission from holding his office.
Chapter XVI – Qualifications and
Term of Office of Councillors
109. Qualification
for being a candidate and to hold the office of head of the local government, convenor
or councillor.– (1) A person shall be eligible to
be a candidate for the office of a head of the local government, convenor or councillor
if:
(a)
he, on the last day fixed for the filing of nomination
papers for that election, is not less than twenty-five years of age; and
(b)
his name appears for the time being in the electoral
roll of the electoral unit from where he is a candidate.
(2) Without any prejudice to
the provisions of subsection (1), no person shall be eligible to be a candidate
for the office of a head of the local government, convenor or councillor or to
hold the office of a head of the local government, convenor or councillor if:-
[59][(a) he is not eligible
or becomes ineligible to be enrolled as a voter under the Elections Act;]
(b)
he has been convicted by a court of competent
jurisdiction on a charge of corrupt practice, moral turpitude or misuse of
power or authority under any law for the time being in force;
(c) he is under contract
for work to be done or goods to be supplied to that local government or has
otherwise any pecuniary interest in its affairs;
(d) he is in or enters
into the service of Pakistan, or any statutory body or other body which is set
up, or owned or controlled by the Government, or a local government in Pakistan,
or in which the Government or a local government has controlling share or
interest or he is or becomes a salaried official of a public or statutory
corporation;
(e) he holds an office of
profit in the service of Pakistan other than an office which is not whole-time
office remunerated either by salary or by fee, or the office of Lumbardar, whether called by this or any other title, or
the office of Qaumi Razakar;
(f) he has been dismissed,
discharged or compulsorily retired from the service of Pakistan, or the service
of a local government or a public or statutory corporation on the charge of misconduct
or a corrupt practice;
(g)
he has obtained a loan for an amount of ten hundred
thousand rupees or more, from any bank, financial institution, cooperative
society or cooperative body in his own name or in the name of his spouse or any
of his dependents, which stands unpaid for more than one year from the due
date, or has had such loan written off unlawfully;
(h)
he, his spouse or any of his dependents has not paid any
tax, fee or any other charge payable to the government or a local government,
or any amount exceeding ten thousand rupees due upon him, his spouse or any of
his dependant for the use of any service such as telephone, electricity, gas
and water for over six months;
(i)
he is declared a defector from his political party or,
as the case may be, electoral group under section 110 of this Act; and
(j)
he is or becomes disqualified for membership of the
Parliament or a Provincial Assembly under any law for the time being in force.
(3) Where
a person contesting an election to any office in the local government claims to
be a Muslim, he shall submit to the Returning Officer a declaration given in
the Sixth Schedule along with his nomination papers for the election.
110. Defection from a
political party or electoral group. – (1) The head of a political party or an electoral
group may, after giving him an opportunity to show cause, declare a head of the
local government, convenor or [60][councillor] to have defected his political party or, as
the case may be, the electoral group who, after having been elected on its
list:
(a)
joins another political party or an electoral group;
or
(b)
votes or abstains from voting in the council
contrary to any direction of the political party or, as the case may be,
electoral group in relation to the election of the convenor under section 83 of
this Act, or a vote for removal of the head of the local government or convenor
under section 202 of this Act.
(2) After
having declared a [61][councillor] defector, the head of the political party
or, as the case may be, electoral group shall forthwith forward a copy of the
declaration to the Election Commission.
(3) Where
the declaration is confirmed by the Election Commission after due notice and
inquiry, the head of the local government, convenor or [62][councillor] referred to in subsection (1) shall cease to
hold office.
Explanation: For the purpose
of this section, the head of a political party or electoral group shall mean
any person by whatever name called, declared as such by the political party or,
as the case may be, electoral group.
111. Effect
of being found to be disqualified to be candidate, head of the local government,
convenor or councillor.– (1) A person, on being found by the Election Commission
to have filed nomination papers for a local government election or having held
the office of a head of the local government, convenor or councillor while
knowing that he is not eligible to file such nomination papers or to hold such
office under section 109 of this Act; or have made election expenses in excess
of the limit given under section 107 of this Act; or to have failed to file a
return on election expenses under section 108 of this Act; or filed a return
that contains particulars that to his knowledge are false or misleading, shall:-
(a) in case he is a
candidate to a local government election, stand disqualified from being a
candidate for the office of the head of the local government, convenor or a
councillor for the following five years.
(b) in case he is a head
of the local government, convenor or councillor, cease forthwith to be such head
of the local government, convenor or councillor and stand disqualified from
being a candidate for the office of the head of the local government, convenor
or a councillor for the following five years.
(2) The Government, or any resident of the
relevant local area may make a written complaint to [63][the Returning Officer or] the Election Commission
to seek disqualification of a candidate from contesting local government
election or a head of the local government, convenor or councillor from holding
office on any ground mentioned in this section.
(3) Every order of [64][the Returning Officer or] the Election Commission
under this section shall be in writing and made after due inquiry into
circumstances of the case.
112. Bar
against double membership and requirement to tender resignation to contest for
certain other political offices.– (1) No person
shall at the same time be a head of the local government or a councillor of
more than one local governments.
(2) Without
any prejudice to the provision of subsection (1), no person shall at the same
time be a head of the local government or a councillor and a member of a Provincial
Assembly or the Parliament.
(3) No
head of the local government or convenor shall contest elections for any other
political office without first resigning from and vacating his office.
(4) Where
a councillor is elected to any other political office, immediately upon
notification of such election, his seat as councillor shall become vacant.
113. Term
of office of the council, head of the local government, convenor and councillors.– (1) Every council shall, unless it is
dissolved earlier under section 233 of this Act, continue for a period of four
years from the date of its first meeting.
(2) As
soon as may be after the notification of the results of an election by the
Election Commission, the Government shall fix a date or several dates of the
first meeting of the councils.
(3) Where
for any reason, no date is fixed under subsection (2) despite the lapse of
forty-five days after the notification of the results of an election, the
elected head of the local government may call first meeting of the council.
(4) The
term of office of every head of the local government, convenor and councillor
shall, unless removed earlier under this Act, be the same as that of the council.
114. Oath
of office and submission of declaration etc.– (1) A person elected
as a head of the local government, convenor or councillor shall, before assuming
his office, make and subscribe to an oath, appropriate to his office, in the form set out in the Seventh
Schedule.
(2) A
head of the local government, convenor or councillor shall, after taking an oath
under subsection (1), make and submit a declaration as to his immediate
relatives and assets to the Government through the respective Chief Officer,
respectively in the form set out in the Eighth and Ninth Schedule or such other
form as the Government may from time to time prescribe.
(3) The
Government shall notify the fact of assumption of office by every head of the
local government, convenor and councillor in the official gazette after having
satisfied itself that the declarations referred to in subsection (2) above have
been appropriately made.
115. Every
head of the local government, convenor and councillor to declare assets annually.– In the like manner, every head of the local
government, convenor and councillor shall declare his assets to the Government
through the respective Chief Officer in the form set out in the Ninth Schedule or
such other form as the Government may from time to time prescribe each
subsequent year of his office by the appointed date.
116. Effect
of failure to take oath or submit declaration.– (1) The Election Commission
shall, after giving him an opportunity to show cause, disqualify an elected head
of the local government, convenor or councillor from holding office, who fails
to make or submit a declaration under section 114 of this Act within thirty
days from the date of his election.
(2) In
the like manner, the Election Commission shall, after giving him an opportunity
to show cause, remove a head of the local government, convenor or councillor
from office who fails to make or submit a declaration under section 115 of this
Act within thirty days from the appointed date.
(3) The
Government, respective Chief Officer or any resident of the relevant local area
may make a written complaint to the Election Commission for disqualification of
a head of the local government, convenor or councillor under this section.
117. Resignation
by a head of the local government, convenor or councillor.– (1) Any head of the local government, convenor
and councillor may, at any time, resign from his office by writing under
his hand to the respective Chief Officer whereupon his resignation shall be
deemed to have been accepted and effective forthwith.
(2) The
Chief Officer receiving a resignation under subsection (1) shall forward it to the
Government immediately.
[65][(3) The Government shall immediately send the
resignation to the Election Commission which shall, by notification to be
issued within fifteen days from the date of receipt of resignation, declare the
office of the resigning head of the local government, convenor or councillor to
be vacant from the date of receipt of resignation by the Chief Officer.]
(4) Notwithstanding
the resignation of a head of the local government, convenor or councillor under
subsection (1), any proceedings for his removal under section 116, 230 or 232
of this Act, if already initiated, shall not abate.
118. Fresh
elections in case of vacancy in the office of the head of the local government.–
(1) If the office of the
head of the local government falls vacant during the term of the council due to
his removal under section 202 of this Act, the Election Commission shall hold a
fresh election to the offices of the head of the local government, the convenor
and all councillors under section 91 of this Act.
(2) If the office of the head of the local
government falls vacant during the term of the council for any reason other
than the reason referred to at subsection (1), the Election Commission shall
hold a fresh election to the office of the head of the local government under
section 91 of this Act.
(3) The head of the local government, convenor
and councillors elected through an election under this
section shall, unless removed earlier under this Act, hold office for the
residual term of the council.
(4) Notwithstanding the provisions of
subsection (1) and (2), if the office of a head of the local government falls
vacant within one hundred and twenty days before the expiry of the term of the council,
no fresh elections shall be called.
119. Filling
of casual vacancies of convenor and councillors.– (1) Subject to the provisions of subsection (4), if,
for any reason, the office of a councillor falls vacant during the term of a council,
the candidate immediately below the last elected candidate in the ranking order
declared under section 83 of this Act by the political party or the electoral
group to which the councillor vacating the office belonged, shall be elected to
that office.
(2) If, for any reason, the office of the convenor
falls vacant during the term of a council, the council shall elect a convenor
through fresh election under section 91 of this Act.
(3) A convenor or councillor elected under this
section shall, unless removed earlier under this Act, hold office for the
residual term of the council.
(4) If a vacancy referred to in subsection
(1) or subsection (2) occurs within one hundred and twenty days before the
expiry of the term of the council, the vacancy shall not be filled.
120. Temporary accession to
the office of a head of the local government and convenor.– (1) The convenor
shall accede to the office of the head of the local government during his
temporary absence.
(2) The
convenor may nominate one of the councillor to accede to his office during his
temporary absence and where no such nomination is made, the councillors may
choose any one of them to accede to the office of the convenor during his
temporary absence.
Explanation: For the purpose of this
section, absence shall mean temporary absence from office for reasons such as
leave, travel and illness for a period of not more than sixty days.
PART 4
LOCAL GOVERNMENT FINANCE AND
PROPERTIES
Chapter XVII – Local Government
Funds
122. Funds
of a local government.– (1) Every local government shall establish
and maintain the following funds, namely:
(a)
a local fund for the credit of such moneys and for
such purposes as respectively specified in sections 123 and 124 of this Act;
and
(b)
a public fund for the credit of such moneys and for
such purposes as respectively specified in sections 125 and 126 of this Act.
(2) A local government may:
(a)
establish a sinking fund under section 145 of this Act
for repayment of any money borrowed by the local government under this Act;
(b)
with the prior permission of the Government, establish
a special fund for any purpose other than the purposes mentioned in sections 124,
126 and 145 of this Act.
(3) All funds of a local government
shall be held in trust for the purposes of this Act.
All moneys payable to any fund of a local government shall be received by
or on behalf of that local government and shall be forthwith consigned to
custody as per the provisions of section 127 of this Act.
(4) All funds of a local government
shall be administered in such manner as may be prescribed.
123. Credit
of moneys to a local fund.– (1) There shall be credited to the local
fund of a local government:-
(a)
such moneys as the local government may, on coming
into force of this Act, succeed from the balance funds of a defunct local
government under section 4 of this Act;
(b)
proceeds of all taxes, fees, rates, tolls, rents and
other charges levied by or on behalf of the local government under this Act;
(c)
all moneys received as rents and profits payable or
accruing to the local government from property vested in or controlled or
managed by it;
(d)
all moneys received as proceeds of the disposal of
local government properties by, or on behalf of the local government under this
Act;
(e)
all fines imposed under this Act and any such fine or
part thereof which shall stand transferred to the local government under any
other law for the time being in force;
(f)
all moneys received by way of any administrative
penalty, compensation or compounding of offences under this Act;
(g)
all moneys transferred to the local government by the
Government or by any other local government under this Act;
(h)
all moneys received as gifts, grants or contributions
made to the local government by any person, organization, institution or the
Government;
(i)
all moneys received by the local government in
connection with the performance of its functions under this Act or any other
law for the time being in force;
(j)
all interests and profits arising from any investment
of, or from any transaction in connection with, any money belonging to the
local government;
(k)
all loans raised by the local government under this
Act; and
(l)
all proceeds from such other sources of income as the
Government may, from time to time, direct to be placed at the disposal of the
local government.
(2) All moneys, for the time
being, in a local fund shall form part of the composite cash balance of the Punjab
but shall be used exclusively for the purpose of and in accordance with the
provisions of this Act.
124. Application
of local fund.– (1) The
moneys credited to the local fund shall be applied to various purposes in the
following order of preference:-
(a) Firstly, in making due provisions for the repayment of loan payable by
the local government under Chapter XIX of this Act;
(b) Secondly, in making due provisions for the satisfaction of any judgement,
decree or award against the local government;
(c) Thirdly, in making payments for the conduct of election under this Act and
in meeting any other expenditure declared by the government to be an
appropriate charge on the local government;
(d) Fourthly, in discharging all liabilities imposed upon the local government
under section 4 of this Act;
(e) Fifthly, in the payment of salaries, allowances and other remunerations
of the officers and servants of the local government and, in so far as
practicable, making due provisions for their pensions and similar other expenses;
(f) Sixthly, in the payment of all other sums, charges and costs necessary
for effective discharge of functions of the local government under section 21 of
this Act and for otherwise carrying into effect this Act, or of which the
payment shall be duly or directly sanctioned under any of the provisions of
this Act.
(2) A local government shall not, directly
or indirectly, apply any part of its local fund, or any money under its
control, for any purpose not authorised specifically or generally under this
Act or any other law for the time being in force.
(3) During every financial year in which local government
elections are to be held, the expenditure or commitment of expenditure of a
local government prior to the convening of elections shall not exceed eight per
centum per mensem of the relevant approved estimate of receipts and
expenditure.
125. Credit
of monies to public fund.– (1) There shall be credited to the public fund
of a local government:-
(a)
all receipts accruing from a trust administered or
managed by the local government;
(b)
refundable deposits received by the local government
from one or more other local governments;
(c)
all deferred liabilities of the local government; and
(d)
an amount paid to the local government in trust for a
person.
(2) The moneys in a public fund shall not
form part of the composite cash balance of the Punjab.
126. Application of public fund.– (1) The moneys from time to time credited to the public fund of a local government
shall be applied in the following manner, namely:-
(a)
all
payments accruing from a trust administered or managed by the local government
shall be applied for the purposes of that trust;
(b)
all
refundable deposits received by the local government from another local government
shall be applied for the refund of the deposited amount to that local government;
(c)
all moneys
received as a deferred liability shall be applied towards retiring that
liability; and
(d) an amount paid to local government in trust for a
person shall be applied for making payment to that person.
(2) The moneys from time to time credited to
the public fund of a local government shall not be applied to any purpose other
than the purposes specified in this section.
127. Custody
of funds.– (1) All moneys credited to a local fund, public fund or any
other fund established under section 122 of this Act shall, if not otherwise
invested in accordance with section 128 of this Act, be kept in the State Bank,
or such other bank or banks as may be appointed by the Government for this
purpose.
(2) All interests, profits, dividends or
other sums received in respect of such custody of a fund shall, as soon as may
be, after receipt or becoming due, accrue to that fund.
128. Investment
of surplus funds.– (1) A local government may, from time to time, invest for
profitable purposes any sums in its local fund, public fund or any other fund
which cannot immediately or at an early date be applied to the purposes of this
Act or of any loan raised under this Act –
(a) in government
securities;
(b) with a bank authorized
by the Government;
(c) with a deposit-taking
institution authorized by the Government; or
(d) in any other manner
prescribed by the Government either generally or specifically to be an authorized
manner of investment for the purpose of this section.
(2) All incomes, profits, dividends or other
sums resulting from an investment made under subsection (1) shall, as soon as
may be, after receipt or becoming due, accrue to the relevant fund.
129. Cognizance
of wrongful application of moneys.– Where, in the opinion of the
Government, a local government has applied or is applying money in the local
fund to a purpose not specified, or in disregard of the order of preference
given under subsection (1) of section 124 of this Act, or to a purpose without
first applying sufficient amount to a purpose carrying higher order of
precedence, or moneys in the public fund to a purpose not specified in section 126
of this Act, the Government may, in addition to proceeding against the head of
the local government under any other provision of this Act, direct the person
having custody of that local fund to pay such amount or so much thereof as may
be possible from time to time, from the balance of the local fund to the
purpose which has been disregarded or to which insufficient amounts have been
applied.
Chapter XVIII – Local Government
Budget
(2) No
expenditure shall be incurred by or on behalf of a local government from its
local fund unless it is:
(a) previously authorized
in the estimates of receipts and expenditure approved under sections 131 of
this Act;
(b) previously authorized
in the estimates of receipts and expenditure certified by the Government under
section 132 or 137 of this Act;
(c) previously authorized
in the estimates of receipts and expenditure revised or readjusted under
section 133 or 134 of this Act;
(d) made under an order of
the Government under section 124 of this Act; or
(e) necessarily incurred
in circumstances of emergency in relation to a function of the local government.
(3) All
expenditures incurred by or on behalf of a local government in the circumstances
of an emergency shall, as soon as may reasonably be possible, brought to the
notice of the council and if such expenditure was made by a Chief Officer or
any other authority, also to the notice of the head of the local government.
(4) A
consolidated account of all expenditures incurred during each financial year
shall be presented to the council when an estimate of receipts and expenditure
for the next following financial year is presented under section 131 of this
Act.
131. Submission
of estimates of receipt and expenditure by head of the local government and its
approval.– (1) Every financial year, during the third
week of March, the head of the local government shall:
(a) cause to be prepared a
draft estimate of receipts and expenditure of the respective local government
for the next following financial year;
(b) publish the draft
estimate of receipts and expenditure for public information in such manner as
may appear appropriate to him to solicit suggestions and objections;
(c) consider any
suggestion and objections received; and
(d) not less than fifteen
days after the publication of draft estimate of receipts and expenditure,
present it before the council.
(2) The
council may, at a public meeting and with a simple majority of vote of all
councillors holding office:
(a) revise the draft
estimate of receipts and expenditure in such manner as the council considers
appropriate;
(b) having regards to the
provisions of sections 134, 135 and 136 of this Act, approve the estimate of
receipt and expenditure.
(3) Where
in the view of the head of the local government, revision of estimate of
receipts and expenditure under clause (a) of subsection (2) above is not in
accordance with the provisions of this Act or is otherwise inappropriate, he
may, again present the estimate of receipt and expenditure, with or without any
revision, before the council.
(4) The
council may, at a public meeting, consider the estimate of receipt and
expenditure presented before it under subsection (3) and:
(a) having regards to the provisions of sections
134, 135 and 136 of this Act, approve it with a simple majority of vote of all
councillors holding office; or
(b) revise or reject it with a two-third majority
of vote of all councillors holding office.
(5) Following
shall be the approved estimate of receipt and expenditure of the local
government for the following financial year:
(a) the
estimate approved under clause (b) of subsection (2);
(b) the
estimate approved or revised under subsection (4);
(c) the
estimate presented by the head of the local government which is not revised or
rejected by two-third majority of vote of the council under subsection (4).
(6) If,
for any reason, the estimate of receipt and expenditure is not approved before
the commencement of the financial year to which it pertains, the local government
expenditures, on various categories of expense, for that financial year shall
be made in accordance with the approved estimates for the preceding financial
year on pro rata basis till such time
the estimate is approved under this section or an order for this purpose is
issued by the Government under section 132 of this Act, whichever is earlier.
(2) The
estimate of receipts and expenditure certified under subsection (1) shall be
deemed to be the approved estimate of receipts and expenditure of the local government
for that financial year.
133. Revision
of the approved estimates.– (1) At any time before the expiry of the
financial year to which an approved estimate of receipts and expenditure relates,
the head of the local government or the council may reduce, add or transfer the
amount or a portion thereof from one category of expense in the estimate to
another category or authorize an additional category of expenditure, if the
same is considered necessary for the purpose of this Act,
(2) The revision of an approved estimate of
receipts and expenditure under this section shall, so far as may be, subject to
the provisions of section 131 of this Act.
134. Duty
of a local government to readjust income and expenditure in certain cases.– (1)
If at any time during a financial year, it appears to the head of the local
government or the council that the receipts of local fund of the local
government during the same financial year will not suffice to meet the
expenditure sanctioned under the approved estimate for that year, the head of
the local government or, as the case may be, the council shall sanction
forthwith any measures which they consider necessary for proportionating the
year’s receipt to expenditure.
(2) For the purposes of subsection (1), in
addition to any other measure authorized under this Act, a head of the local
government or, as the case may be, the council may either diminish the sanctioned
expenditure for relevant financial year so far as it may be possible with due
regards to all the requirements of this Act, or have recourse, subject to other
provisions of this Act, to supplementary taxation or to an increase of rates or
charges, or adopt all or any of those methods.
(3) The readjustment of an approved estimate
under this section shall, so far as may be, subject to the provisions of
section 131 of this Act.
(4) Where in the opinion of the Government, sufficient
circumstances exist for an action under subsection (1) and both the head of the
local government and the council are not taking such action or a sufficient
action, it may, after affording an opportunity of hearing to the head of the
local government, make one or more provisions as given under subsection (2) and
such provisions shall be deemed to be authorized by the local government under
this section.
135. Receipts
to always exceed the expenditure of local governments.– An estimate of
receipts and expenditures shall not be approved unless the estimated receipts
for the relevant financial year exceed the sums required to meet estimated
expenditure of a local government for that year.
136. Ring fencing of expenditure of local
governments.– The Government may, in consultation with the Finance
Commission, fix minimum expenditure requirements which shall be met by a local
government during any financial year towards one or more public services
provided by it which, in its opinion, is necessary to maintain minimum service
standards pertaining to that public service.
137. Authority
of the Government to review approved estimates.– (1) Every Chief Officer
shall forthwith submit every estimate of receipt and expenditure approved or
revised by the respective local government to the Government for review.
(2) If during a review under subsection (1),
it is determined that the approved or revised estimate of receipts and
expenditure is contrary to any provision of this Act or the rules, the
Government may after offering an opportunity of hearing to the head of the
local government, direct the local government to suitably amend the estimate
within a prescribed period.
(3) If the local government fails to amend
the estimate of receipts and expenditure pursuant to a direction under
subsection (2), the Government may amend the estimates itself and certify them.
(4) The estimate of receipts and expenditure
certified under subsection (3) shall be deemed to be the approved estimate of
receipts and expenditure of the local government for the relevant financial
year.
138. Advance
notification of provisional amounts by Finance Commission.– (1) The Finance
Commission shall, by the first of March of each financial year, notify the
provisional amounts which may be credited to the local fund of each local government
from provincial allocable amount during the following financial year under
section 185 of this Act.
(2) If
provisional amounts to be transferred to the local fund of a local government are
not notified as required under subsection (1), the local government may proceed
with the preparation and approval of estimate of receipts and expenditure based
on the amount of funds credited to it by the Government during the preceding
financial year.
(3) The
estimate of receipts and expenditure approved under subsection (2) may be
revised by the local government after the notification of amounts to be
credited to its local fund in, so far as may be, accordance with the provisions
of section 131 of this Act.
Chapter XIX – Borrowing by Local Governments
139. Power
of a local government to borrow money for certain purposes.– (1) Having
regards to other provisions of this Act, a local government may with the
previous sanction of the Government, raise a loan of any sums of money for one
or more of the following purposes, namely:-
(a)
undertaking a work of permanent nature;
(b)
purchase of any facility, amenity, equipment, plant,
or apparatus the cost of which, in the opinion of the council, be spread over a
term of two or more years;
(c)
acquisition of land for the purposes of this Act; and
(d)
repayment of a loan raised by the local government
under this Act or any other loan or debt for the payment of which the local government
is liable.
(2) A local government shall not raise a
loan under subsection (1) except in pursuance of a resolution of the council in
a special meeting.
(3) The amount of loan to be raised, the
period within which it shall be repaid and terms and conditions and method by
which the loan is to be raised and repaid by a local government, shall be such
as approved by the Government.
140. Conditions precedent for approval of a loan
and methods of borrowing.– (1) No approval for a loan under
section 139 of this Act shall be granted unless the Government is satisfied
that:
(a)
the loan is meant for one or more purposes mentioned
in section 143 of this Act;
(b)
by reason of the nature of expenditure incurred or to
be incurred by a local government, the expenditure shall be met by borrowing;
and
(c)
the financial position of the local government is such
that the repayment of loan is likely.
(2)
Subject to approval of the Government, a local
government may raise a loan by any one or more of the following methods:-
(a) on the security of all
or any immovable property vested in the local government; or
(b) on the security of all
or any of the incomes likely to accrue to the local government from taxes, fees,
rates, tolls, rent and other charges under this Act; or
(c) by the issue of bills
or promissory notes payable within any period not exceeding twenty-four months;
or
(d) by an overdraft from a
bank; or
(e) by means of an
agreement with the Government for borrowing moneys out of the Local Development
Fund established under section 141 of this Act; or
(f)
by any other specified method.
141. Local
Development Fund.– (1) The Government shall establish and maintain a
fund to be called the Local Development Fund for the purposes of section 139 of
this Act.
(2) The
Government may require every local government to contribute money to the Local Development
Fund in such amounts and, in such manner as may be prescribed.
(3) Without
any prejudice to the provisions of subsection (2), the Government may endow the
Local Development Fund with such sum as it may consider appropriate.
142. Limits
on authority of local government to borrow moneys.– The authority of a
local government to borrow money shall be limited so that the total sums
payable by the local government shall not, at any time, exceed together with
the balances of all outstanding loans and debts due by the local government, in
the whole, double the average annual value of the taxes, fees, rates, tolls,
rent and other charges raised by that local government under this Act for the
three consecutive preceding financial years.
143. Application
of sums raised by borrowing.– (1)
When any sum of money has been borrowed by a local government under
section 139 of this Act:-
(a)
no portion thereof shall, without the previous
sanction of the Government, be applied to any purpose other than that for which
it was borrowed;
(b)
no portion thereof shall be applied to the payment of
salary, pension, any allowance or other remuneration to any officer or servant of
the local government; and
(c)
no portion thereof shall be applied to the payment of any
day to day expenditure of the local government.
(2) Nothing
in clause (b) of subsection (1) above may be construed to bar payment from the
borrowed money any sums on account of salary, pension or allowance or other
remuneration to such officers or staff of the local government who are
exclusively employed upon works for the construction of work for which the
money was borrowed.
144. Repayment
of borrowed moneys.– (1) Every loan raised by a local government
shall be repaid within the time approved under section 139 of this Act and by
such of the following methods as may be approved, namely:-
(a)
by payment from a sinking fund established under
section 145 of this Act in respect of the loan;
(b)
by equal or agreed payments of principal and interest;
(c)
by equal or agreed payments of principal;
(d)
from any sums borrowed for the purpose under section 139
of this Act; or
(e)
partly from the sinking fund in respect of the loan
and partly from money borrowed for the purpose under section 139 of this Act.
(2) A
local government may, with the prior sanction of the Government and after
securing an agreement with the lender, resettle the period and the terms by
which a loan raised by it is to be repaid.
145. Sinking
fund.– (1) Where payment from a sinking fund has been approved as a method
for the repayment of a loan under section 144 of this Act, the respective local
government shall establish a fund to be called the sinking fund for that loan
and pay into this fund on such dates as may have been approved, such sums as
will, with the accumulation of compound interest or any other profit, be
sufficient, after payment of all expenses, to pay off the loan at the approved
time.
(2) If at any time the sum standing to the
credit of a sinking fund is of such amount that if allowed to accumulate at
compound interest together with any other profit, it will be sufficient to
repay the loan at the time approved, further payments by the local government
into such fund may be discontinued with the previous permission of the
Government.
(3) A local government shall not apply sums
standing to the credit of a sinking fund to any purpose, other than repayment
of loan or investment under section 144 of this Act, unless the loan for the
repayment of which it was established is wholly repaid.
146. Investment
of sinking fund.– (1) All moneys paid into a sinking fund shall, as soon as
possible, be invested by the local government in one or more of the following methods, namely:-
(a)
in government securities;
(b)
in a deposit-taking institution nominated by the
Government from time to time; or
(c)
any other manner prescribed by the Government either
generally or specifically to be an authorized manner of investment for the
purpose of this section.
(2) All profits, interests, dividends or
other sums received in respect of any investment under subsection (1) shall, as
soon as possible after receipt, be paid into the appropriate sinking fund and
invested in the aforesaid manner.
(3) Any investment made under this section
may, from time to time, be varied or transposed.
147. Inspection
of sinking funds and payment of any deficient amounts by local government.– (1)
A sinking fund established under this Act shall be subject to annual
inspection by the Auditor General.
(2) A local government shall forthwith pay
into a sinking fund any such amount which the Auditor General may certify to be
deficient as a result of an inspection under subsection (1) unless the
Government by general or special order permits a gradual readjustment.
(3) In case of a dispute as to the accuracy
of any certificate made by the Auditor General under subsection (2), the relevant
local government may, after making the payment, refer the matter to the
Government and the decision of the Government with respect to that matter shall
be final.
148. Attachment
of local fund in default of repayment of loan.– (1) If any money borrowed
by a local government or any interest or cost due in respect thereof is not
repaid according to the conditions of the loan, the Government may if it has
itself given the loan and in other cases shall, on the application of the
lender, attach local fund or a portion thereof as it considers appropriate.
(2) After such attachment, no person except
an officer appointed in this behalf by the Government shall, in any way, deal
with the attached local fund or a portion thereof.
(3) An officer appointed under subsection
(2) may do all acts in respect of attached local fund or portion thereof which
any local government, authority or officer may have done if such attachment had
not taken place, and may apply the proceeds in satisfaction of the arrears and
of all interest and cost due in respect thereof and subsequent proceedings.
(4) No attachment under subsection (1) shall
defeat or prejudice any debt for which the fund or portion thereof is attached
was previously pledged in accordance with law, but all such prior charges shall
be paid out of the proceeds of the fund, or portion thereof, before any part of
the proceeds is applied to the satisfaction of the debt in respect of which
such attachment is made.
149. Annual
statement of moneys borrowed.– (1) The Chief Officer of a local government
shall at the end of each financial year, prepare a statement showing:-
(a)
the loans borrowed by the local government during the
financial year with particulars as to the amount and date of borrowing and the
annual loan charges;
(b)
in the case of every loan for which a sinking fund has
been established under section 145 of this Act, the amount of accumulation in
the sinking fund during the financial year showing separately the amount paid
to the credit of the sinking fund;
(c)
the loan repaid during the financial year and in the
case of loans repaid in instalments or by annual drawings, the amounts repaid
and the balance due at the close of the financial year; and
(d)
the particulars of investments to which the sinking
fund has been applied.
(2) Every statement prepared under
subsection (1) shall be laid before the council and a copy of such statement
shall be submitted to the Government and to the Auditor General on such date as
the Government may, from time to time, appoint.
Chapter XX – Local Government
Properties
150. Local
government properties.– (1) Subject to any conditions imposed by the
Government, all properties whether movable or immovable specified hereunder,
and all interests of whatsoever nature or kind therein, shall vest in a local
government:-
(a)
all lands, buildings or other properties which were
vested in any defunct local government of which the local government is the
successor under section 4 of this Act;
(b)
all lands or other properties transferred to the local
government or acquired by gift, purchase or otherwise for the purposes of this
Act;
(c)
all public and other buildings of every description
and all works, materials and things appertaining thereto which are maintained
by the local government in relation to its functions under this Act;
(d)
all lands, open spaces, play grounds, gardens, parks
and other places of public resort transferred to the local government by gift,
purchase or otherwise for the purposes of this Act;
(e)
all public streets, roads, bridges and other means of
public communication which are transferred to the local government and the
pavements, stone and other material thereof and also trees growing on, and
erections, materials, implements and things provided with them;
(f)
all public sewers and drains except those owned and
maintained under the Canal and Drainage Act, 1873 (Act VIII of 1873), and all
sewers, culverts and other channels for sullage in or under any public street,
or constructed by or for the local government in the respective local area and
all works, materials and things appertaining thereto;
(g)
all works for the disposal of refuse and night soil
maintained by the local government;
(h)
all public lamps, lamp posts and other appliances for
street lighting maintained by the local government;
(i)
all public streams, springs and works for supply,
storage and distribution of drinking water for public purposes maintained by
the local government and all buildings, machines, materials and things or land,
not being privately owned land, appertaining thereto;
(j)
all trees, plants and flowers on roadsides and other
places maintained by the local government; and
(k)
all other property which may vest in the local government
under any law for the time being in force or under an order of the Government
(2) Every local government shall maintain a
register of all properties along with a map of all immovable properties of
which it is the proprietor or which vests in it or which it holds in trust for
the Government or any other authority or person.
Explanation: For the purpose of this section, a building map shall
include any location maps as well as a map indicating the layout of the
building.
151. Application
of local government properties.– (1) The properties of a local government
shall not be applied for any purpose other than for the purposes of this Act or
any other law for the time being in force.
(2) A local government shall inspect,
manage, maintain and whenever so required develop or improve any property which
is owned by or vested in it or which is otherwise placed under its charge.
152. Disposal
of local government properties.– (1) Immovable properties of a local
government shall not be sold or permanently alienated except with the prior permission
of the Government.
(2) Such moveable properties of a local government
which, in the opinion of the council, may be disposed of as being no more
required or having become unserviceable, shall be sold through competitive bidding
in a public auction.
153. Resumption
of a property by the Government.– (1) The Government may resume any
immovable property transferred to a local government where such property is
required for a public purpose.
(2)
The Government shall not be liable to pay any
compensation for resumption of an immovable property under subsection (1) other
than the amount paid by the local government for transfer of that property and
the market value at the date of resumption of any building or works erected or
executed thereon by the local government subsequent to the aforesaid transfer.
(3)
Nothing in this section shall be construed to allow the
Government a right to assume any immovable property which the local government
has acquired through purchase from its funds, or as a transfer or gift from a
person or entity not being the Government.
154. Annual
stock take of local government properties.– Once in every financial year, every local government shall take a
physical stock of all properties vested in it in the prescribed manner and
publish a report on the results for general information.
155. Insurance
of certain local government properties.– A local government may, subject to
the rules and any other relevant law for the time being in force, insure any
property, whether moveable or immoveable in which it has an insurable interest,
against any contingency which may result in the imposition of any liability or
loss to the local government.
Chapter XXI – Local Government
Taxes, Fees, Rates and Tolls
156. Authority
of a local government to levy taxes etc.– (1) A local government may, through a notification
published in the official gazette, levy all or any of the taxes, fees, rates,
tolls, rent and other charges given in the Tenth Schedule.
(2) For the purpose of subsection (1), every
local government shall, among other things, abide by the directions of the
Finance Commission under clause (f) and (g) of subsection (1) of section 180 of
this Act.
157. Procedure
for imposition, revision or abolishment of a local tax etc.– (1) A head of
the local government may make proposal with respect to:-
(a)
levy of a new tax, fee, rate, toll or other charge under
this Act; or
(b)
increase or reduction in the incidence of a tax, fee,
rate, toll or other charge or otherwise revision of a tax, fee, toll or other
charge which is for the time being in force under this Act; or
(c)
suspension or abolishment of a tax, fee, rate, toll or
other charge which is for the time being in force under this Act; or
(d)
exemption of any person or class of persons, or
property or goods or class of property or goods, or services or other things
from the levy of a tax, fee, rate, toll or other charge which is for the time
being in force under this Act.
(2) Every proposal for levy of a new tax,
fee, rate, toll or other charge under subsection (1) shall, among other things,
mention:
(a) the class of persons,
or description of property or goods, or services or other things on which the
proposed tax, fee, rate, toll or other charge shall apply;
(b) the method of
assessment of the proposed tax, fee, rate, toll or other charge;
(c) the incidence at which
the tax, fee, rate, toll or other charge is to be levied.
(3) As soon as may be after making of a
proposal under subsection (1) above, the head of the local government shall,
through a public notice, invite suggestions and objections on the proposal
mentioning therein, among other things, the date and time by which the
suggestions and objections shall be submitted.
(4) The last date of submission of
objections under subsection (3) above shall be fixed in such manner as to allow
not less than thirty clear days commencing from the date of publication of the
notice.
(5) Any resident of the relevant local area
or a person affected by the proposal referred to in subsection (1) above, may
submit his suggestions or objections or both in writing to the Chief Officer by
the date and time appointed under subsection (3) above.
(6) After having considered all suggestions
and, as the case may be, objections received under subsection (5), the head of
the local government may:
(a) accept suggestions and
objections in as much as he deems appropriate and present a revise proposal
before the council in a public meeting; or
(b) reject the suggestions
and objections and present his original proposal before the council in a public
meeting.
(7) The council may with a simple majority
of vote of all councillors, for the time being holding office:
(a)
revise or further revise the proposal in such manner
as the council considers appropriate; or
(b)
having regards to other provisions of this Act,
approve the proposal;
(8) Where in view of the head of the local
government, the revision or further revision of the proposal under clause (a)
of subsection (7) above is not in accordance with the provisions of this Act or
is otherwise inappropriate, he may, present the proposal, with or without any further
revision, before the council again.
(9) The council may, at a public meeting:
(a) approve
the proposal presented before it with simple majority of vote of all
councillors holding office; or
(b) revise
or reject it with a two-third majority of vote of all councillors holding
office.
(10) Without
any prejudice to other provisions of this section, a proposal presented by a
head of the local government under subsection (8) which is not rejected or
revised by the council with two-third majority, should be deemed to have been
approved.
158. Date
on which local taxes etc. become effective.— Where a proposal for the levy of a tax, fee, rate,
toll or other charge; or for the suspension or abolishment; or increase or
decrease in the incidence or otherwise revision of a tax, fee, rate, toll or
other charge which is, for the time being, in force is approved under section
157 of this Act, the council or, as the case may be, the head of the local
government shall specify, in the official gazette referred in that section, a
date for the enforcement of the proposal and such tax, fee, rate, toll or other
charge, or the suspension or abolishment; or increase or decrease of the
incidence or any other revision shall take effect from that date.
159. Rating
areas and property tax.– (1) On the commencement of this Act, a rating
area in which tax has been imposed under the Punjab Local Government Act, 2013 (Act
XVIII of 2013) shall continue to be the rating area within the meaning of the
Punjab Immovable Property Tax Act, 1958 (Act V of 1958).
(2) Notwithstanding anything contained in
the Punjab Immovable Property Tax Act, 1958 (Act V of 1958) a local government
to which urban immovable property tax relates to, may determine the rate of
this tax in accordance with section 157 of this Act.
(3) If no determination under subsection (2)
is made, the rate of urban immovable property tax shall be determined under the
Punjab Immovable Property Tax Act, 1958 (Act V of 1958).
160. Power
of the Finance Commission in case of unfair local taxes etc.– (1) If
at any time, on a representation made to it for this purpose or otherwise, it
appears to the Finance Commission that the incidence of a tax, fee, rate, toll
rent or other charge imposed under this Act is unfair or excessive or that levy
of a tax, fee, rate, toll, rent or other charge or of any part thereof is
injurious to the interests of the general public, the Finance Commission may
through an order require the concerned local government to take, within a
prescribed period, measures to remove the objection.
(2)
If a local government fails to comply with the order
of the Finance Commission under subsection (1) to their satisfaction within the
prescribed period, the Government may suspend the levy of the objectionable tax,
fee, rate, toll or other charge or of such part thereof until the objection is
removed.
(3)
Any resident of the relevant local area or a person or
entity affected by the imposition or levy of a tax, fee, rate, toll or other
charge may make a representation to the Finance Commission under subsection
(1).
161. Duty
to furnish information on liability to local tax etc.– Every resident of
the relevant local area and every other person subject to any tax, fee, rate,
toll or other charge imposed under this Act, shall on demand of the
Chief Officer or an officer authorized by him in this behalf, furnish such information, produce such record
or accounts, or present such goods, vehicles, animals or other things which are
liable to the tax, fee, rate, toll, or other charge, as may be necessary for
the purpose of determining their liability to the tax, fee, rate, toll, or other
charge as the case may be or the assessment thereof.
162. Power
of entry for the purpose of valuation of local taxes etc.– The Chief
Officer or an officer authorized by him in this behalf, may after giving due
notice to the occupier, or, if there is no occupier, to the owner of a building
or premises, at any time between sunrise and sunset, enter upon any building or
premises for the purpose of assessing the liability of that building or
premises to any tax or inspecting any goods, vehicles, animals or other things
therein liable to any tax, fee, rate, toll or other charge under this Act.
163. Presentation
of bill for local taxes and rates.– (1) When any sums become due for
payment on account of any tax, fee, rate, toll or other charge under this Act,
the Chief Officer or any other officer authorized by him shall, cause to be
presented to any person liable for payment thereof a bill for the sum claimed
as due.
(2) Every such bill shall specify the period
for which and the property, occupation, services or things in respect of which
the sum is claimed and shall also give notice of the time by which the sums
shall be paid and liability incurred in default of payment and the time within
which an objection may be preferred against such claim under this Act.
164. Notice
of demand to be issued on non-payment of bill.– (1) If the sum for
which a bill has been presented under section 163 of this Act is not paid
within the time specified therein, the Chief Officer or any other officer
authorized by him may cause to be served upon the person to whom such bill has
been presented a notice of demand in the prescribed form.
(2) For every such notice of demand, a fee
of such amount, not exceeding fifteen per centum of the sums due, shall be
payable by the said person, and the said amount shall be included in the cost
of recovery.
165. Payment
of local tax etc. subsequent to receipt of bill or notice of demand and
consequences of default.– (1) A person upon whom a bill or notice of
demand has been served under section 163 or 164 of this Act, may:-
(a) pay the sum demanded
in the bill or notice of demand to the local government concerned as directed
in the bill or notice; or
(b) within fifteen days
from the service of such bill or notice of demand make an objection in writing
to the Chief Officer and show cause to his satisfaction as to why he should not
pay the sum indicated in the notice; or
(c) prefer an appeal in
accordance with the provisions of section 167 of this Act against the
determination of a Chief Officer under clause (b) above.
(2) Where such person does not pay the sum
demanded, or show cause or prefer an appeal under subsection (1), the Chief
Officer may refer a case for the recovery of such sums as an arrear of land
revenue to the respective Collector.
166. Investigation
of objections by Chief Officer.– (1) The Chief Officer shall cause
all objections made before him under section 165 of this Act to be entered in a
register to be maintained for this purpose and shall give a notice in writing
to the objector of a time and place at which his objection shall be
investigated.
(2)
At the time and place fixed under subsection (1), the
Chief Officer or any other officer authorized by him for this purpose, shall
hear the objection, in the presence of the objector or his authorized agent if
he appears; or may, for reasonable cause, adjourn the investigation.
(3)
When the objection has been determined, the order
passed on such objection shall be recorded in the register mentioned in
subsection (1) and if necessary, the bill or demand notice shall be amended or
withdrawn in accordance with the result of investigation.
(4)
The Chief Officer shall cause to be immediately
delivered to the objector, free of any charge, a certified copy of the order
made by him under subsection (3).
167. Opportunity
to make appeal against the determination of Chief Officer.– (1) A
person aggrieved with the determination of a Chief Officer under section 166 of
this Act, may, within thirty days of the receipt of such order, file an appeal
before the respective Collector.
(2)
No appeal shall be heard or determined by the Collector
unless it is made in writing and is accompanied by an order of the Chief
Officer appealed against.
(3)
It shall be the duty of every local government to give
effect to the decisions of the Collector in relation to an appeal made under
this section.
(4)
The Collector shall, for the purpose of this section,
have all the powers of a civil court trying a suit under the Code of Civil
Procedure, 1908 (Act V of 1908) and shall be deemed to be a Court within the
meaning of sections 480 and 482 of the Code of Criminal Procedure, 1898 (Act V
of 1898).
168. Liability
for local tax etc. to be called in question only under this Act.– No
assessment of a tax, fee, rate, toll or other charge under this Act or the liability
of a person for such tax, fee, rate or toll shall be called in question except
in accordance with the provisions of this Act.
169. Payments to be made in authorized banks against
receipts.– (1) All sums on account of a tax, fee, rate,
rent and any other charges under this Act shall paid to the local government
through an authorized bank unless a permission for any other method of
payment is obtained from the Government.
(2) For all sums paid to a local government
on account of any tax, fee, rate, rent, toll or other charge under this Act, a
receipt, stating among other things the amount and the tax, fee, rate, toll or
other charge on account of which it has been paid, shall be tendered by the
person receiving such payment on behalf of the local government.
170. Writing
off of irrecoverable taxes etc.– (1) At the close of each financial
year, every Chief Officer shall prepare a statement of all such sums due to the
respective local government on account of any tax, fee, rate, toll or other
charge which, in his opinion, are irrecoverable.
(2)
The Chief Officer shall present the statement prepared
under subsection (1) to the council and after due consideration, the council
may order that such sums or any part thereof shall be struck off the relevant
books kept under section 172 of this Act.
(3)
The Chief Officer shall cause an authenticated copy of
the statement prepared under subsection (1) along with an authenticated copy of
the statement of struck off dues to be displayed at a conspicuous place in the
office of the local government for public inspection and shall, on application
of any person, also cause to be furnished to him a copy thereof or any extract
thereof on payment of such reasonable fee as may, from time to time, be fixed
by the council.
171. Tax
etc. not to become invalid for defect in form.– (1) No assessment of
value, or charge or demand of any tax, fee, rate, toll or other levy made under
this Act, shall be called in question or in any way be effected by reason of:-
(a)
any mistake in the name, residence, place of business
or occupation of any person liable to pay such tax, fee, rate, toll or other
charge; or
(b)
any mistake in the description of any property,
service or thing liable to such tax, fee, rate, toll or other charge; or
(c)
any mistake in the amount of assessment of such tax,
fee, rate, toll or other charge; or
(d)
any clerical error; or
(e)
any other defect of form.
(2) It
shall suffice for any assessment of value, or levy or demand of a tax, fee,
rate, toll or other charge that the person, property, service or any other
thing subject thereof is so described as to be sufficiently identifiable.
172. Records
pertaining to valuation, assessment and collection of local tax etc.– (1)
Every Chief Officer shall prepare and maintain records pertaining to valuation,
assessment and collection of all taxes, fees, rates, tolls, rents and other
charges levied by the local government in the prescribed manner.
(2)
All records prepared and maintained by the Chief
Officer under subsection (1) above shall be authenticated by the respective head
of the local government.
(3)
The Chief Officer shall cause to be displayed at a
conspicuous place in the office of the local government a copy of all records
authenticated under subsection (2) above for public inspection and shall, on
application of any person, also cause to be furnished to him a copy thereof or
any extract thereof on payment of such reasonable fee as may, from time to
time, be fixed by the council.
173. Authority of the Government to appoint any
of its agency or officer for local tax collection.– (1) In the interest of economy, efficiency and effectiveness, the
Government may by a notification in the official gazette, direct that an agency
or an officer of the Government engaged in collection of its tax, fee, rate,
toll, or other charge shall also collect one or more taxes, fees, rates, tolls,
rents or other charges on the behalf
of one or more local governments or constitute a separate agency for this
purpose and provisions relating to the authority of the Chief Officer in relation
to collection of local tax, fee, rate, toll or other charge under this Act
shall mutatis mutandis apply on that
agency or officer.
(2) Agency or officer referred to in
subsection (1) above shall, to the extent of collection of a local tax, fee, rate,
toll or other charge be responsible to the respective local government.
Chapter XXII – Local Government
Finance Commission
174. Establishment
of Local Government Finance Commission.– (1) As soon as may be, but not later than one hundred and
twenty days of commencement of this Act, the Government shall appoint a
commission to be called the Punjab Local Government Finance Commission,
hereinafter referred to as the Finance Commission, to perform such functions as
are mentioned in this Act.
(2) The Finance Commission shall comprise of
thirteen members including the Chairperson as under:
(a)
The Minister in charge of Finance Department, who
shall also be the Chairperson of the Finance Commission;
(b)
The Minister in charge of Local Government Department,
who shall be the co-Chairperson of the Finance Commission;
(c)
Four members of the Provincial Assembly, out of whom
two shall be appointed by the leader of the house and the other two by the
leader of the opposition in the Punjab;
(d)
The Secretary in charge of Finance Department, who
shall also be the Secretary of the Finance Commission;
(e)
The Secretary in charge of Local Government and
Community Development Department;
(f)
The Secretary in charge of Planning and Development Department;
(g)
Four experts, out of whom one shall be a woman, on
local governments and local government finance appointed in terms of section
174 of this Act; and
(h)
Four heads of the local government selected through
drawing of lots in the following manner:
(i)
one head of the local government from amongst all heads
of Metropolitan Corporations in the Punjab;
(j)
one head of the local government from amongst all
heads of Municipal Corporations, Municipal Committees and Town Committees in
the Punjab; and
(k)
two heads of the local government from amongst all
heads of Tehsil Councils in the Punjab.
(3) In case of the absence of the chairperson
for any reason, the co-chairperson shall chair the Finance Commission and in
case he is also absent, the present members shall elect one of them to chair
the Finance Commission for the duration of his absence.
(4) The Finance Commission may co-opt any
other person for advice in relation to a particular matter under its
consideration; however, the co-opted member shall have no right of vote.
(5) No proceedings or act of the Finance
Commission shall be invalid merely on ground of existence of a vacancy or
defect in composition of the Finance Commission.
(6) The members of the Finance Commission
shall be paid such remuneration and other allowances as the Government may
determine from time to time.
(7) The remuneration and other allowances of
a member of the Finance Commission shall not be varied to his disadvantage
during his term in office.
175. Term
of office and premature removal of certain members.– (1) The
Ministers and Secretaries referred to in section 174 of this Act shall be
ex-officio members of Finance Commission.
(2)
A head of the local government referred to in section 174
of this Act shall hold the office of member of Finance Commission for two year
from the date of assumption of office.
(3)
An expert member referred to in section 174 of this
Act shall hold office for four years from the date of assumption of office.
(4)