The Punjab Local Government Act 2022‎

^{^[1]}THE PUNJAB LOCAL GOVERNMENT ACT 2022

(ACT XXXIII OF 2022)

[16^th November 2022]

An Act to reconstitute local governments in the Punjab and consolidate laws relating to powers and functions of the local governments.

It is expedient to reconstitute the local governments and consolidate laws relating to powers and functions of local governments for establishing an effective elected local government system for meaningful devolution of political, administrative and financial responsibility and authority to the directly elected representatives of the local governments as envisaged under Article 140A of the Constitution to promote good governance, effective delivery of services and transparent decision making through institutionalized participation of the people at local level; and to deal with ancillary matters.

PART 1

PRELIMINARY

Chapter - I

Introduction

1. Short title, extent and commencement.– (1) This Act may be cited as the Punjab Local Government Act 2022.

(2) This Act shall extend to whole of the Punjab except:

(a) the areas notified as cantonments under the Cantonments Act, 1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002), or 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; and

(b) the area exempted by the Government from any or all of the provisions of this Act through a notification in the official Gazette.

(3) This Act shall come into force at once.

2. Definitions.– (1) In this Act:

(a) “administration” means administration of a local government other than Union Council, comprising such officers of the prescribed services and servants of local government; and in case of Union Council, such officials of Directorate General Local Government and Community Development, as may be determined by the Secretary in the schedule of establishment of the respective local government;

(b) “Auditor General‟ means the Auditor General of Pakistan appointed under Article 168 of the Constitution;

(d) “budget” means the estimate of expected receipts and expenditure of a local government for a given financial year, and as the case may be, includes the estimate of receipts and expenditure of constituent offices, entities and agencies of that local government;

(e) “building control” means implementation of a set of standards and regulatory framework established and enforced by a local government, for the safety of a building and its surrounding environment;

(f) “bye-laws” means bye-laws made by a local government under this Act or rules made thereunder;

(g) “candidate” means a candidate for election under this Act;

(h) “cantonment” means a place or places notified as cantonment under the Cantonments Act, 1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002);

(i) “Code” means the Code of Criminal Procedure, 1898 (V of 1898);

(j) “census” means a population and housing census provisionally or finally published under the General Statistics (Reorganization) Act, 2011 (XIV of 2011), whichever is later;

(k) “Chief Officer” means Head of the administration of the Metropolitan Corporation and District Council, including Officer in-charge of a Municipal Unit.

(l) “Collector” means a Revenue Officer appointed under section 7 of the Punjab Land Revenue Act, 1967 (XVII of 1967);

(m) “Commission” means the Punjab Local Government Commission constituted under this Act;

(n) “committee” means a committee constituted under this Act;

(o) “Community Council” means a Community Council constituted under this Act;

(p) “Constitution” means the Constitution of the Islamic Republic of Pakistan.

(q) “Council” means the Council comprising the Speaker and other Councillors of a local government;

(r) “Councillor” means a Councillor of the Council and includes a Speaker and a Councillor elected against a reserved seat;

(s) “defunct local government” means a local government constituted under any local government law existed prior to the commencement of this Act;

(t) “Department” means the Local Government and Community Development Department of the Government;

(u) “Directorate General” means the Directorate General Local Government and Community Development;

(v) “Directorate General (Inspections & Monitoring)” means the Directorate General of Inspections & Monitoring of the Board;

(w) "disabled person" means the same as defined under the Disabled Persons (Employment and Rehabilitation) Ordinance, 1981 (XL of 1981) or any other law on this subject for the time being in force;

(x) “district” means a District notified under the Punjab Land Revenue Act, 1967 (XVII of 1967);

(y) “District Council” means a District Council constituted under this Act;

(z) “elected office” means the office of a local government against which a Head, Deputy Mayor, Vice Chairperson, Speaker or a Councillor is elected;

(aa) “elected official” means a Head of local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor;

(bb) “Elections Act” means the Elections Act, 2017 (XXXIII of 2017);

(cc) “Election Commission” means the Election Commission of Pakistan established under Article 218 of the Constitution;

(dd) “farmer” means a person who owns more than five acres of land;

(ee) “Election Tribunal” means the Election Tribunal constituted by the Election Commission to decide election petitions;

(ff) “electoral group” means an Electoral Group enlisted under this Act;

(gg) “electoral officer” means an officer appointed for election under this Act and includes a Presiding Officer, an Assistant Presiding Officer and a Polling Officer;

(hh) “electoral roll” means an electoral roll prepared, revised or corrected under the Elections Act;

(ii) “electoral unit” means electoral unit constituted for an election under this Act;

(jj) “Electronic Voting Machine (EVM)” means any device that is used by the Election Commission for conduct of free and fair local government elections for voting purposes, other than Ballot Papers whether for voting, counting of votes, transmitting the final results or recounting of the votes purposes;

(kk) “emergency” means circumstances imminently endangering public health, safety, life or significant or large scale harm to property requiring an immediate action;

(ll) “fee” means fee against specific services provided by a local government and includes a regulatory fee for regulation of a business or activity;

(mm) “Finance Commission” means the Punjab Local Government Finance Commission constituted under this Act;

(nn) “financial year” means the year commencing on the first day of July and ending on the thirtieth day of June;

(oo) “Government” means Government of the Punjab;

(pp) “government agency” means a department, office, authority, body, company, or institution of the Government or the Federal Government;

(qq) “Head’s Cabinet” means the Cabinet of the Head of a local government constituted under this Act;

(rr) “Head of local government” means:

(i) Lord Mayor of Metropolitan Corporation Lahore;

(ii) City Mayor of a Metropolitan Corporation other than Lahore;

(iii) District Mayor of a District Council; and

(iv) Chairperson of a Union Council;

(ss) “High Court” means the Lahore High Court, Lahore;

(tt) “House” means the elected Council of a local government;

(uu) “joint authority” means a joint authority established under this Act;

(vv) “land use” means the human use of land, to represent the economic and cultural activities e.g., agricultural, commercial, residential, industrial, mining, and recreational use that are practiced at a given place;

(ww) “land use control” means exercise of power to restrict private and public use of land and natural resources, to conform to master planning;

(xx) “land use plan” means a plan drawn up and approved by a local government or any government agency competent to draw up and approve which provides the actual land use and proposed land use for permitted, permissible and prohibited development activities, both in the planned areas and non-planned areas, within the local area of a local government;

(yy) “local area” means the area comprising territorial jurisdiction of a local government demarcated or delimited under this Act;

(zz) “local government” means a Metropolitan Corporation, a District Council, and a Union Council;

(aaa) “master plan” means a dynamic long term planning and policy document that provides a conceptual lay out to guide future growth and development and includes analysis and evaluation of standards, proposals for population, economy, housing, transportation, community facilities and land use;

(bbb) “municipal unit” means a sub-office of a local government administration established for performance of its functions in an urban area;

(ccc) “operating officer” means the operating officer of a joint authority appointed under this Act;

(ddd) “Panchayat” means a panchayat constituted under this Act;

(eee) “peasant” means a person who is a landless farm worker, or one who during the period of five years preceding the year in which election is held, has been the owner of not more than five acers of land and depends directly on it for subsistence living;

(fff) “Political Party” means a Political Party within the meanings of the Elections Act;

(ggg) “prescribed” means prescribed by rules made under this Act;

(hhh) “prescribed service” means the Punjab Local Government Service, Provincial Management Service, or Pakistan Administrative Service, whether called by this or any other title;

(iii) “Province” means Province of the Punjab;

(jjj) “provincial allocable amount” means sums allocated out of the Provincial Consolidated Fund under this Act as a share for transfer to a local government under this Act.

(kkk) “Provincial Consolidated Fund” means the Provincial Consolidated Fund within the meanings of Article 118 of the Constitution;

(lll) “public service” means a service provided by a local government in relation to its functions for the residents;

(mmm) “recognized institution” means an educational institution recognized by the Higher Education Commission established under the Higher Education Commission Ordinance, 2002 (LIII of 2002) or any other similar agency mandated for this purpose under any other relevant law;

(nnn) “rent” means whatever is lawfully payable in money or kind by a tenant or lessee on account of the occupation of any building or land or use of any machinery, equipment or vehicle;

(ooo) “reserved seat” means a seat reserved for religious minorities, women, peasants or workers, youth, disabled persons and traders or farmers;

(ppp) “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;

(qqq) “rules” means the rules made under this Act;

(rrr) “Rural Union Council” means a Union Council delimited and constituted in the local area demarcated as rural area under the Punjab Local Government Act, 2019 (XIII of 2019);

(sss) “Schedule” means a Schedule appended to this Act;

(ttt) “Secretary” means the Secretary as defined in the Punjab Government Rules of Business, 2011, and where no suffix is mentioned therewith, it shall mean the Secretary in charge of the Local Government and Community Development Department of the Government;

(uuu) “Secretary Union Council” means an official in-charge of the administration of a Union Council;

(vvv) “servant” means an employee of a local government;

(www) “Speaker” means the Speaker of the Council, and in relation to the holding of a meeting of the Council in the absence of the Speaker, a Councillor chosen by the Council to preside over the meeting of such session; and in case of Union Council, it means the Vice Chairperson;

(xxx) “standing instructions” means the standing instructions issued under this Act;

(yyy) “tehsil” means an area notified under the Punjab Land Revenue Act, 1967 (XVII of 1967);

(zzz) “trader” means a person who during the period of five years preceding the year in which election is held, has been engaged in the business of buying and selling of goods, commodities or services and primarily depends upon it to earn his livelihood;

(aaaa) “Union Council” means an urban Union Council or a rural Union Council delimited and constituted under this Act;

(bbbb) “urban area” means an area demarcated and notified as urban under the Punjab Local Government Act, 2019 (XIII of 2019);

(cccc) “Urban Union Council” means a Union Council delimited and constituted in the local area demarcated as urban area under the Punjab Local Government Act, 2019 (XIII of 2019);

(dddd) “worker” means a person who primarily depends upon personal labour for subsistence, or a worker as defined in the “Punjab Industrial Relations Act 2010 (XIX of 2010), and in both cases, has maintained such status for last five years preceding the year in which election is held; and

(eeee) “youth” means a person who is not less than eighteen years of age and not more than thirty two years of age on the last date fixed for filing of nomination papers.

(2) The words, terms or expressions used but not defined in this Act shall have the same meaning as assigned in the Constitution or other applicable laws in force.

Chapter - II

Succession of Local Governments

3. Succession of the defunct local governments.– (1) 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 Secretary, 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 Secretary, are required by it for the discharge of any function under this Act; and

(c) such rights, funds, claims or liabilities or portions thereof which, in the view of the Secretary, were respectively raised, made or accrued by a defunct local government in relation to areas comprising its local area.

(2) Subject to subsection (3), the Secretary 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 Secretary, 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:

provided that 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.

(4) The Secretary shall, by a general or special order, provide for the manner of succession and discharge of liabilities, if any, of a defunct local government.

(5) The Secretary 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, work, facility, amenity, vehicle, equipment, plant, store or apparatus.

Chapter - III

Overriding Effect and Removal of Difficulties

4. Act to override other laws.– The provisions of this Act shall have effect notwithstanding anything contained in any other law for the time being in force.

5. Removal of difficulties.– The Chief Minister may, by order not inconsistent with the object of this Act, provide for the removal of any difficulty which may arise in giving effect to the provisions of this Act.

6. 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 - IV

Demarcation, Classification, Delimitation, Constitution

of Local Governments and Review of Local Areas

7. Demarcation, constitution and classification of Metropolitan Corporation and District Council.– (1) The urban and rural areas demarcated and notified under Punjab Local Government Act, 2019 (XIII of 2019) shall be deemed to have been demarcated and notified, unless altered under this Act, for constitution of the local areas of the following local governments and in the manner given below:

(a) a Metropolitan Corporation as follows:

(i) all areas comprising district Lahore as Metropolitan Corporation Lahore; and

(ii) Largest urban area in the districts of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha, as the Metropolitan Corporation of the respective local area; and

(b) a District Council as follows:

(i) area of District of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad, Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha, excluding the local area of Metropolitan Corporation in that district; and

(ii) whole area of a district except the districts of Lahore, Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha.

(2) Each local area shall constitute territorial jurisdiction of the respective local government.

8. Notification of local areas of Metropolitan Corporations and District Councils.- Subject to section 7, the Deputy Commissioner shall issue fresh notifications of demarcation of local areas of Metropolitan Corporations and District Councils mentioning therein urban and rural areas and population of each census block as per latest census results.

9. Review of local areas of Metropolitan Corporations and District Councils.- The Government may, through a notification in official gazette, increase or decrease the limit of the local areas of Metropolitan Corporations and District Councils.

Provided that any change in the limit of the local areas shall be effective from the next elections of such local governments.

10. Delimitation of Union Councils by the Election Commission.– (1) The Election Commission shall delimit the Union Councils under the Elections Act in the prescribed manner.

(2) The local areas of Union Councils shall be identified with a specific number given by Election Commission and name which may be assigned by the Government.

(3) The Election Commission shall delimit the urban area in a district constituting the Metropolitan Corporation, defunct Municipal Corporation, defunct Municipal Committee, defunct Town Committee demarcated and constituted under the Punjab Local Government Act, 2019 (XIII of 2019) into urban Union Councils, with an average population of twenty-five thousand.

(4) Subject to subsection (3), the Election Commission shall delimit rural area in a District Council into rural Union Councils, with an average population of twenty-five thousand.

(5) Government may through a notification in official gazette, declare a rural Union Council having urban characteristics as Urban Union Council on the recommendation of Deputy Commissioner concerned.

(6) Government may through a notification in official gazette, declare an urban Union Council as rural Union Council, if the local area has no urban characteristics, on the recommendation of Deputy Commissioner concerned:

Provided that any change under sub-section (5) and (6) shall be effective from the next elections of such local governments.

11. Principles of delimitation of Union Councils.– (1) A variation in the limit of population of local areas shall be permissible up to ten percent, in order to avoid splitting of census blocks.

(2) For delimitation of the local areas of Union Councils, it shall be ensured that:

(a) population of local area of each Union Councils shall be uniform, as far as possible, as per the latest census;

(b) the local area shall be a territorial unit;

(d) the boundaries of urban Union Council shall not cross the limits of the respective Metropolitan Corporation, defunct Municipal Corporation or Municipal Committee or Town Committee constituted under the Punjab Local Government Act, 2019 (XIII of 2019), as the case may be.

12. Coordination with Election Commission for delimitation.– (1) The Deputy Commissioners shall coordinate and facilitate the Election Commission in whole process of delimitation and provide required details about the local area of each local government demarcated under section 7 in identifying the distribution of population in geographically compact areas, physical features, existing boundaries of administrative units, facilities of communication and public convenience and other cognate factors to ensure homogeneity in the delimitation of Union Councils.

(2) The Deputy Commissioner shall provide to the Election Commission all notifications of local areas showing notified population along with their census block codes and copies of authenticated maps of local governments showing the clear boundaries.

(3) The Government may, by notification in the official Gazette, specify the name by which a Union Council shall be known and unless the name of a Union Council is so specified, it shall be known as the Union Council of the place where its office is situated.

Chapter - V

Composition and Structure of Local Governments

13. Local government structure.– (1) A local government of a Metropolitan Corporation and a District Council shall consist of:

(a) Head of a local government;

(b) two Deputy Mayors in Metropolitan Corporations;

(d) a nominated Head’s cabinet comprising of such Councillors and technocrats as provided in section 14 of this Act except for a Union Council;

(e) a Council comprising of such number and description of Councillors, including the Speaker, as is given in First Schedule of this Act; and

(f) an administration comprising of officers and servants in a local government.

(2) The Secretary with the approval of Minister, may establish one or more municipal units in a local government for performance of its functions.

(3) The local governments of Union Councils shall consist of:

(a) Chairperson and Vice Chairperson;

(b) five Councillors elected on general seats;

(d) one seat reserved for religious minorities;

(e) two seats reserved for women;

(f) one seat reserved for youth; and

(g) an administration comprising a Secretary Union Council and the members of ancillary staff, as may be determined by the Secretary;

provided that in case there is no candidate in an electoral unit to contest election against the seat reserved for religious minority, such seat shall be deemed to be an additional seat reserved for worker or peasant, as the case may be.

(4) The Vice-Chairperson of a Union Council shall act as the Speaker of the Council.

(5) Every local government, so constituted, 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.

14. Head’s Cabinet.– (1) There shall be a Head’s Cabinet of a local government, except Union Councils, to aid and advise the Head in exercise of his functions, to be appointed by the head, not later than forty five days from taking of his oath:

provided that the Cabinet Members shall hold the office during the pleasure of the Head:

provided further that with the removal of the Head or on expiry of his term, the Head’s Cabinet shall also be dissolved forthwith.

(2) The Head’s Cabinet, for local governments shall comprise of such number of Councillors and Technocrats nominated by the Head of a local government, as mentioned in the Second Schedule.

(3) No person shall be appointed as a Technocrat in the Head’s Cabinet, unless he is a technocrat holding a degree requiring conclusion of at least sixteen years of education, recognized by the Higher Education Commission and has a professional experience of not less than five years in public or municipal administration, public finance, law, education, public health, Commerce and Industry, Information Technology, Mass Communication or any other area relating to functions of the local government:

provided that no person shall be appointed as a Technocrat member of the Head’s Cabinet, unless he is otherwise eligible to be a candidate for the office of Head of a local government, Speaker or Councillor.

(4) Before entering upon office, a Head’s Cabinet member shall make before the Head of the local government, oath in the form set out in the Fourth Schedule.

(5) The Head’s Cabinet shall be responsible to the Head of the local government.

(6) A Head’s Cabinet member may, by writing under his hand addressed to the Head of the local government, resign his office.

Chapter - VI

Authority of Local Governments

15. 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.

16. 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 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 residents in running its affairs and from time to time consult them on the level, quality, range and impact of services; and

17. 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 this Act, the authority of a local government shall extend to 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.

18. Assignment of additional responsibilities by Government.– Nothing in this Act shall prevent the Government from assigning any function to a local government which is not included in its power and functions.

19. 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 in accordance with this Act.

(2) A Deputy Mayor or a Vice Chairperson shall generally exercise such powers and perform such functions as may be delegated by the Head of the local government.

(3) In case of temporary absence of the Head of a local government, the Deputy Mayor or the Vice Chairperson nominated by the Head shall deputize his office.

(4) The Head of a local government may, direct, guide or supervise officer or servant of a local government.

(5) The Council and its committees and sub-committees shall act through resolutions in accordance with the provisions of this Act.

20. 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.

Chapter - VII

Functions of Local Governments

21. Functions and powers of Metropolitan Corporation and District Council.– (1) A Metropolitan Corporation and a District Council shall:

(a) implement the provisions of this Act, rules and bye-laws;

(b) exercise control over land-use including land-subdivision, land development and zoning by public and private sectors for any purpose, including for agriculture, housing, industry, commerce markets, shopping and other employment centers, residential, recreation, parks, entertainment etc., as per the approved Master Plan;

(c) subject to any other special law relating to preparation and approval of Regional, Master and land use plan for the time being in force; approve spatial plans, zoning, land use plans, including classification and reclassification of land, as per the approved Master Plan;

(d) enforce building control as may be prescribed;

(e) undertake urban design and urban renewal programmes;

(f) approve development schemes for beautification of urban areas;

(g) prepare, approve, execute and manage development plans;

(h) regulate development and management of site development and housing schemes;

(i) manage properties, assets and funds vested in the local government;

(j) lease and rent out properties owned or otherwise vested in, managed or maintained by the local governments;

(k) undertake landscape, parks, monuments and municipal ornamentation;

(l) prepare and approve budget, revised budget and annual and long term municipal development programmes;

(m) approve taxes and fees etc.;

(n) collect approved taxes, fees, rates, rents, tolls, charges, fines and penalties;

(o) prepare and approve proposals for construction of express ways, fly-overs, bridges, roads, under passes owned by or vested in local governments;

(p) regulate affixing of sign-boards and advertisements except where this function is being performed by the Park and Horticulture Authority;

(q) naming and renaming of roads, streets and public places vested in, managed or maintained by the local governments;

(r) develop integrated system of water reservoirs, water sources, water supply and treatment plants, drainage including storm water drainage, liquid and solid waste collection, disposal and treatment including landfill site and recycling plants, sanitation and other municipal services;

(s) provide, develop, manage, operate, maintain and improve the municipal infrastructure and services, including –

(i) roads and streets;

(ii) traffic planning, engineering and management including traffic signaling systems, signs on roads, street markings, parking places, transport stations, stops, stands and terminals;

(iii) street lighting; and

(iv) playgrounds, open spaces, graveyards and arboriculture.

(t) maintain municipal records and archives;

(u) maintain a comprehensive data base and information system and provide public access to it on nominal charges;

(v) regulate and organize sports, cultural, traditional and recreational events, fairs and shows;

(w) undertake adaptive reuse strategies to restore, preserve and undertake heritage and historical assets through agency arrangement, in the local area;

(x) establish and manage municipal libraries;

(y) promote school sports and traditional local sports;

(z) ensure environmental protection;

(aa) encourage tree afforestation and plantation at local level;

(bb) provide assistance through grants to registered and credible Government and Non-Government Organizations for provision of public service;

(cc) regulate and establish street markets in the manner prescribed;

(dd) undertake steps to implement population control policy of Government;

(ee) regulate private markets and establish and maintain public markets;

(ff) regulate, establish and maintain cattle and other animal markets and slaughter houses;

(gg) regulate sale of cattle;

(hh) enforce all municipal laws, rules and bye-laws governing its functioning:

(ii) authorize an officer or officers to issue notice to a person committing any municipal offence and initiate legal proceedings for continuance of commission of such offence or for failure to comply with the directions contained in such notice;

(jj) sue, prosecute and defend court cases;

(kk) assist relevant authorities in disaster management and relief activities;

(ll) provide relief for the widows, orphans, poor, trans genders and other persons in distress, and children and persons with disabilities;

(mm) make arrangements for enhancement of the care of disabled persons, paupers, aged, sick, persons of unsound mind, abandoned minors, juvenile delinquents, drug addicts, victims of child abuse, needy and disadvantaged persons; and

(nn) exercise administrative, operational and management control of the devolved district level offices of the Government departments as may be notified by the Government.

(2) A Metropolitan Corporation and a District Council may:

(a) entrust any of its functions to a person, any public-private, public or private organization, authority, agency or company through a contractual arrangement, on such terms and conditions as may be prescribed:

provided that responsibility for discharge of such functions shall continue to vest with such local government;

(b) on such terms and conditions as are mutually agreed, transfer its functions or responsibilities with regard to providing municipal services to the Union Council falling within its local area:

provided that no function or responsibility shall be transferred without allocation of corresponding resources and funds:

provided further that the responsibility to regulate and monitor such functions and services shall remain with the transferring local government;

(d) by an agreement and on such terms and conditions as may be mutually agreed, perform any function of the Government;

(e) with funds raised through voluntary contributions or external grant, undertake any development project;

(f) with the approval of the Government and concerned regulatory authorities of the Federal Government and the Government, set-up, acquire, manage and operate any commercial activity on a self-financing basis; and

(g) setup a corporate body to perform any of its functions, singly or jointly with other public or private bodies:

provided that responsibility for discharge of such functions shall continue to vest with the local government.

(3) The Metropolitan Corporation and a District Council may also:

(a) review public service delivery of departments including Police and Revenue Administration; and

(b) seek written response and clarification from district Head of such departments on queries of the local government regarding their performance, functions and operations:

provided that in case of unsatisfactory response, Head of a local government may send a reference to the Chief Minister for resolution of the matter.

22. Functions and powers of Union Council.– (1) The functions and powers of Union Council shall be to:

(a) approve its budget;

(b) approve the levy of tax and fee etc;

(d) enforce this Act, rules and bye-laws regulating its functioning;

(e) nominate members of the Community Councils in its respective urban area and monitor their performance;

(f) nominate members of the Panchayats within its respective rural area and monitor their performance;

(g) mobilize the community:

(i) for maintenance of public ways, public streets, street lights, culverts, bridges, public buildings and local drains;

(ii) for plantation of trees, landscaping and beautification of public places;

(iii) for prevention and removal of encroachments on public ways, streets and places;

(h) provide and maintain public sources of drinking water, such as wells, water pumps, tanks and ponds, and open drains;

(i) coordinate with the community organizations for proper maintenance of water supply schemes, sewerage, waste collection and removal;

(j) manage and maintain grazing areas, common meeting places and other common property;

(k) hold local fairs and recreational activities;

(l) registration of births, deaths, marriages and divorces;

(m) promote local, school and traditional sports;

(n) take other measures likely to promote the welfare, health, safety, comfort or convenience of the inhabitants of its local area;

(o) identify deficiencies in delivery of public services and make recommendations for improvement of services;

(p) execute small scale development works relating to its functions;

(q) report illegal excavation of earth, sand, stones or other material to the relevant authorities;

(r) celebration of public festivals;

(s) assist the relevant authorities in disaster management and relief activities;

(t) manage properties, assets and funds vested in it; and

(u) maintain such statistics and data as may be specified and disseminate information on matters of public interest; and

(2) A Union Council may perform any other function entrusted to it by the Government or its respective upper level local government, in whose local area the Union Council is situated.

Chapter – VIII

Additional functions in relation to the Authorities, etc.

23. Functions and powers in relation to the Authorities, Agencies and Companies in the Metropolitan Corporations.– (1) Notwithstanding anything to the contrary contained in this Act or any other law for the time being in force, the following companies, authorities and agencies providing municipal services and facilities in Metropolitan Corporations, shall stand entrusted to the respective Metropolitan Corporation:

(i) Parks and Horticulture Authorities;

(ii) Development Authorities;

(iii) Water and Sanitation Agencies;

(iv) Traffic Engineering and Planning Agency; and

(v) Waste Management Companies.

(2) Subject to any specific direction and policy of the Government, the Metropolitan Corporation shall perform the following functions and powers in respect of the companies, authorities and agencies:

(a) administrative and financial control; and

(b) approval of policies, taxes, fees etc.

(3) The Head of the respective Metropolitan Corporation or his nominated Deputy Mayor or an elected member of the Head’s Cabinet shall be the ex-officio chairperson of the respective Authority, company or agency.

(4) A Development Authority shall, in discharge of its regulatory functions, where required by the local government due to its inability to act because of lack of resources or capacity, act as an agency in aid and support of such local government.

(5) Where a Development Authority intends to perform functions assigned to it under the law but such functions are assigned to the local government under the Act, the Development Authority shall perform such functions after consultation and with the consent of the concerned local government on such terms and conditions as may be determined by the concerned local government.

(6) No Development Authority shall extend or curtail the boundaries of its existing controlled area without the consent of the concerned local government.

(7) Where in the performance of the functions under subsections (5) and (6), the issue needs further guidance and direction, it shall be referred to the Commission for final decision.

Chapter – IX

District Local Government Authorities for the Devolved District Level Offices

24. Exercise of functions and powers in relation to the devolved district level offices of the Government Departments.– (1) Notwithstanding anything to the contrary contained in any other law for the time being in force, subject to the provisions of subsection (2), the following district level offices of the Government departments, shall stand devolved on the local governments:

(a) Health (Primary and Secondary);

(b) Education (School Education);

(d) Population Welfare; and

(e) Sports.

(f) Civil Defence

(2) The Government may, through a notification published in the official Gazette, devolve any other district level office of a Government Department or de-notify any such district level office.

(3) The devolved offices shall be administered, operated and managed at the district level, through the respective District Authority established under this Act.

(4) The respective District Authority shall exercise such authority within the district in accordance with the general policy of the Government.

25. District Authorities.– For each devolved district level office of a Government Department, a separate District Authority shall be established by the Government in each district through a notification published in official Gazette, as follows:

(i) A District Health Authority for the devolved function of district level office of Primary and Secondary Healthcare Department;

(ii) District Education Authority for the devolved function of district level offices of School Education Department and Literacy and Non-Formal Basic Education Department;

(iii) District Social Welfare Authority for the devolved function of district level office of Social Welfare Department;

(iv) District Population Control Authority for the devolved function of district level office of Population Welfare Department;

(v) District Sports and Recreation Authority for the devolved function of district level office of Sports Department;

(vi) District Civil Defence Authority for the devolved function of district level office of Civil Defence; and

(vii) Any other District Authority established by the Government, for each district level office of a Government Department, which is notified to have been devolved on the local governments.

26. Composition and management of the District Authorities.– (1) The administration, operation and management of the respective District Authority shall vest in its Executive Board, comprising:

(a) the Lord Mayor of Lahore Metropolitan Corporation as the Chairperson of all the District Authorities in the District and his nominated Deputy Mayor or one of the elected Member of the Head’s Cabinet or the Council as the Vice Chairperson of a District Authority, in Lahore district:

provided that a Vice Chairperson of a District Authority in Lahore district shall not hold the office of Vice Chairperson of more than one District Authority;

(b) the District Mayor of a district as the Chairperson of all the District Authorities in the District and his nominated Deputy Mayor or one of the elected Members of the Head’s Cabinet or the Council as the Vice Chairperson of a District Authority, except districts of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha:

provided that a Vice Chairperson of a District Authority shall not hold office of Vice Chairperson of more than one District Authority;

(c) the District Mayor of a District Council and City Mayor of Metropolitan Corporation, as the Chairperson and Vice Chairperson respectively in the districts of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad, Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha ;

(d) Deputy Commissioner of the concerned District or his nominee not below BS-18 as member;

(e) Chief Executive Officer of the District Authority as member and Secretary of the Executive Board;

(f) Director or Deputy Director of the Directorate General as member;

(g) a representative of the Commissioner of the Division concerned not below BS-18 as member;

(h) two experts as members including one woman having qualification and experience as given in subsection (3) of section 14 of this Act to be nominated by the Chairperson of the Authority; and

(i) District Attorney of the concerned district as member.

(2) The District Authority shall be responsible for management and supervision of the respective devolved office and its public service delivery.

(3) The District Authority shall be a body corporate having perpetual succession and a common seal, with power to acquire and hold property and enter into any contract and may sue and be sued in its name.

(4) The Departmental District Head of each devolved district level office of the respective Government Department shall be the ex-officio Chief Executive Officer of the Authority.

(5) The Chief Executive Officer shall be the Principal Accounting Officer of the Authority and shall perform such functions as are mentioned in this Act or as may be prescribed or as may be delegated by the District Authority or as the Government may assign.

(6) The District Office of each devolved district level office of the respective Government Department shall be the secretariat of the respective District Authority.

(7) The Authority shall receive its funds from Provincial Budget, directly from Finance Department.

27. Performance of functions by the District Authorities.– (1) The respective District Authority shall perform all the functions of the district level office of the respective Government Departments devolved on the local government to carry out purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing powers, a District Authority shall:

(a) establish, manage and supervise all the facilities and institutions of the respective devolved office;

(b) approve the budget of the Authority and allocate funds to the institutions under its administrative control;

(c) provide stewardship, ownership and oversight of service delivery of the devolved office within the policy framework given by the Government;

(d) coordinate planning and allocate finances for provision of service delivery at District level;

(e) develop linkages between private and public sectors for enhancing access and coverage of service facilities to the general public and improving quality of these services;

(f) coordinate emergency response during any natural calamity or emergency;

(g) ensure human resource management and capacity development of service delivery personnel under the policy framework given by the Government;

(h) ensure performance based contracts with service delivery managers as per prescribed indicators;

(i) monitor, exercise oversight and performance evaluation of service delivery managers as per agreed performance indicators either directly or through a third party;

(j) liaison with the Government for technical and logistic support in case of any emergency or disaster;

(k) implement policies and directions of the Government including achievement of key performance indicators set by the Government for the respective devolved function;

(l) ensure implementation of minimum service delivery standards, infrastructure standards, as prescribed by the Government; and

(m) perform any other function as may be assigned by the Government.

(3) In the performance of their functions, the District Authorities shall also be bound and be guided by the policies and instructions issued, from time to time, by the Government.

Chapter – X

Mode of Discharge of Functions by the local governments – Agency Arrangement and Joint Authorities.

28. Discharge of functions by local governments.– (1) Subject to subsection (2), a local government may discharge its functions through one or more of the following means:

(a) an officer or servant of the local government;

(b) a joint authority established under this Act;

(d) an office, authority or agency owned or operated by the Government by mutual agreement; and

(e) by otherwise 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 power or duty to enforce any law.

29. Delegation of functions to Union Councils.– (1) A Metropolitan Corporation and a District Council may, by a mutual agreement, delegate one or more of its functions or one or more public services relating to any such function, to a Union Council.

(2) In the performance of a function or delivery of a public service delegated under subsection (1), the Union Council, as the case may be, shall adhere to the general or specific directions of the local government delegating that function.

30. Agency arrangements.– (1) A local government may, through a written agreement, make arrangements with any other local government, or an office, Authority, agency or company of the Government or the Federal Government, for performance of any of its function.

(2) The expenses incurred for carrying into effect the agreement under subsection (1) shall be defrayed by the local government etc., for whom services are provided.

(3) In case of a disagreement on the amount of expenses or the actual value of expenses to be paid or received by a local government during a particular period, the expenses shall be paid and received in such amount and in such manner as may be determined by the Commission.

(4) Every local government shall keep separate accounts for the purposes of this section in the prescribed manner:

provided that arrangements made under this Act shall not diminish, in any respect, the responsibility of a local government with regards to the function or public service.

31. Establishment of joint authorities.– (1) Two or more local governments may, in the prescribed manner, 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) For the purpose to oversee the functions of the joint authority, the constituting local governments may notify a joint Committee.

32. Inter-agency coordination.– (1) A Deputy Commissioner shall, in relation to the district under his charge:

(a) establish coordination between the local governments and the Provincial or Federal agencies, in respect of matter which relates to or affects the work of one or more provincial or federal agencies in the district;

(b) establish coordination between one or more local governments and a cantonment adjoining such local government, for cooperation in respect of integrated services relating to provision of sanitation, water supply, sewerage collection and disposal and similar other services;

(c) advise local governments on avoiding duplication by prioritization of works of similar nature being undertaken by the Government or one or more local governments in the district; and

(d) amicable settlement of disputes among Union Councils or a Union Council with other Government agencies in the district; and

(d) convey Provincial or Federal Government initiative, direction or measure as principal representative of the Government under the Punjab Civil Administration Act, 2017 (Act III of 2017).

(2) Every local government shall generally cooperate with the Deputy Commissioner in performance of his functions under this section.

(3) Where an act of the Deputy Commissioner under subsection (1) is, in the opinion of the Head of a local government, unfair or unreasonable, he may make a reference to the Secretary.

(4) The Secretary may, after having considered the reference and the related circumstances, issue appropriate directions, to the Deputy Commissioner or take such other action in respect of the matter as may, in his opinion, be just or expedient having regards to the circumstances of the case.

Chapter - XI

Duties of Certain Functionaries

33. 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 by the Government;

(d) presenting annual report on the performance of local government to the Council during each financial year;

(e) representation of the local government at civic or ceremonial functions;

(f) any other duty, 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) 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 House and in case of unsatisfactory performance, House may send its recommendation to the Secretary for appropriate action.

(3) A Head of the local government shall have the right to be present and participate in the proceedings of the House and exercise the right to address the House, its committees or a sub-committees, but he shall not vote.

34. Duties and powers of a Speaker.– (1) In addition to any other duty assigned to him under this Act, a Speaker 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;

(d) constitute committees of the Council under this Act and oversee their working.

(2) A Speaker 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 Speaker may, in relation to above duties, direct a Councillor to abstain from or withdraw immediately from a meeting, where in his opinion:

(a) the attendance of meeting by that Councillor would constitute conflict of interest under this Act; or

(b) if the Councilor’s conduct, during the meeting, is grossly disorderly.

35. Duties of a Councillor.– 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.

36. Duties and powers of Chief Officer.– (1) 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 a local government, Speaker, committees and sub-committees of the Council in proper discharge of their duties under this Act;

(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 a local government, with the approval of the Head of a local government;

(g) undertake all procurements on behalf of a local government;

(h) maintain records pertaining to the functions of a local government;

(i) act for and on behalf of a 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, Secretary, Head of a local government, Council or a committee or sub-committee of the Council.

(2) 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

37. Attendance of Council meetings by Chief Officer.– The Chief Officer shall, when required by the Speaker, 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.

38. 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:

(a) any act done by him personally or done under his direction; or any loss, financial or otherwise, suffered by a local government due to a decision made by him personally or under his direction;

(b) any expenditure incurred by him personally or incurred under his direction, if such action, direction, or decision is taken or expenditure is incurred, without lawful authority or in violation of any provision of this Act or any other law for the time being in force.

Chapter - XII

Conduct of Business

39. Conduct of business.– (1) The business of a local government shall be conducted in the prescribed manner.

(2) Any proceedings or decision of a local government shall not be invalid merely because of a vacancy or defect in the membership of the local government.

(3) A local government may appoint committees consisting of such number of its members and other persons to perform such functions and in such manner as may be prescribed.

(4) One half of the existing membership of the House shall constitute quorum for a meeting and a decision shall be taken by the majority of the votes of the members.

40. Meetings of the House.– (1) A local government shall, within three months of the assumption of office, frame bye-laws for the conduct of its meetings.

(2) A meeting of a local government shall be presided over by its Speaker.

(3) A local government shall hold at least one meeting during a month.

(4) A meeting of a local government shall be open to general public, except when a local government, by simple majority, decides to consider any matter in a session attended exclusively by its Councillors, officers and officials.

(5) The Chief Officer or an officer authorised by him shall record minutes of every meeting of the House and submit the same to the person who presided the meeting for approval.

(6) The Chief Officer shall, after approval, issue the minutes of a meeting under his signatures.

(7) The Speaker may, grant observer status to teachers, physically disadvantaged persons, or any other category of individuals or organizations to represent stakeholders, to enable them to attend the proceedings of the House:

provided that such observer shall have no right to vote or interfere in the proceedings of the House.

provided further that such observer shall have no right to speak except with the prior permission granted by the Speaker before commencement of the meeting.

41. Contracts.– (1) All contracts made by or on behalf of a local government shall be:

(a) in writing and expressed to be made in the name of the local government;

(b) executed in such manner as may be prescribed; and

(c) reported to the local government by the Head of the local government in the meeting next following the execution of the contract.

(2) A local government may assign any of its functions to a public or private organization on such terms and conditions as may be prescribed or enter into public-private partnership for efficient performance of any of its functions.

PART 3

ELECTIONS, TERM OF OFFICES AND RELATED MATTERS

Chapter - XIII

Authority for Local Government Elections

42. 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.

43. Elections Act to apply.– For the purpose of local government elections, the Elections Act shall, as nearly as possible, apply to an election under this Act.

44. All authorities and persons to assist the Election Commission.– (1) The Election Commission may require any person or authority in the Province 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 an Authority shall include an authority which is not owned or controlled by the Government.

45. Delegation of powers.– The Election Commission may delegate any of its functions or powers in accordance with the Elections Act.

46. Election Commission to regulate its own procedure.– The Election Commission shall, subject to this Act and the rules, regulate its own procedure for the conduct of elections under this Act.

Chapter - XIV

Election Method, Franchise and Related Matters

47. Election Method.– (1) Election of local governments shall be held on party basis through secret ballot on the basis of adult franchise, through Electronic Voting Machine (EVM) and I-voting, in the prescribed manner.

(2) The Head of a local government, Deputy Mayor, or Vice Chairperson, and the Councillors to the reserved seats shall be elected, as joint candidates, on the basis of simple majority in terms of section 57.

(3) The general Councillors shall be elected on closed list proportional representation basis in terms of section 57.

(4) The Head of a local government, Deputy Mayor, or Vice Chairperson, as the case may be, and all Councillors on reserved seats shall be elected by eligible voters of the respective electoral unit.

(5) Only a Political Party or an Electoral Group shall be entitled to contest elections by fielding qualified candidates for the office of Head of the local government, Deputy Mayor, or Vice Chairperson, as the case maybe, and at least as many qualified candidates for elections as there are seats of Councillors.

(6) No Political Party or an Electoral Group shall be entitled to contest if it is unable to field qualified candidates for all the categories of candidates under subsection (5).

(7) Where a Political Party or an Electoral Group is contesting an election under this Act, its candidates for the Head, Deputy Mayor, or Vice Chairperson, as the case may be, and reserved seats, as joint candidates, and general Councillors shall contest election on the lists of the Political Party or the Electoral Group prepared under subsections (8) and (9).

(8) A Political Party or an Electoral Group contesting election under this Act shall indicate the names of the candidates for seats of Head, Deputy Mayor or Vice Chairperson, as the case may be, of a local government and Councillors for reserved seats, as joint candidates, on a list which shall not be varied after expiry of the date for submission of nomination papers for an election under this Act.

(9) A Political Party or an Electoral Group contesting election under this Act shall indicate the names of the candidates for seats of general Councillors on a list in ranking order in which they may be elected on the basis of votes obtained by the Political Party or the Electoral Group, on the basis of proportional representation.

(10) Subject to sub-section (7) of Section 70, after expiry of the date fixed for submission of nomination papers for an election under this Act, the list referred to in subsection (9) 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.

(11) Nothing in this section shall prevent a Political Party or an Electoral Group from fielding additional qualified candidates in ranking order to the seats of the Head of a local government, Deputy Mayor, Vice Chairperson and Councillors, keeping in view any possibility of rejection of nomination papers to avoid disenfranchisement, or for filling casual vacancies during the term of the Council for any reason.

(12) The Speaker of a local government, except Union Council, shall be elected by the Councillors from amongst themselves, in the prescribed manner, through simple majority of votes, in the first meeting of the Council.

(13) Where the seat of the Head of a local government or Deputy Mayor or Vice Chairperson, as the case may be, the seat of the Speaker and a Councillor falls vacant during their term of office, they shall be elected in the manner given in sections 69 and 70 of this Act.

48. Opposition Leader.– The Councillors representing majority of opposition in the House shall soon after assumption of their office, through written intimation to the Speaker, nominate the opposition leader in the House to represent them.

49. Electoral units.– (1) The entire local area of a local government shall constitute one multi-member electoral unit for elections to the respective local government.

(2) The Election Commission shall, at least forty five days prior to the date fixed for the election, notify electoral units in the official Gazette.

(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.

50. 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, by submitting a list of his members of the Electoral Group which shall not be less than the total seats of Head, Deputy Mayors or Vice Chairpersons as the case may be, and Councillors including reserved seats for the local government, for which his Electoral Group wishes to contest election.

(3) For enlistment of an Electoral Group, a non-refundable fee of one thousand rupee per member shall be deposited along with the application for enlistment.

51. Electoral rolls.– The Election Commission shall use the electoral rolls prepared under the Elections Act for elections under this Act.

52. 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.

(2) A voter shall be entitled to cast only one vote for the Political Party or the Electoral Group, representing candidates of his choice for election of a local government.

Chapter - XV

Conduct of Elections

53. Notification of election date and call up for election.– (1) Through an order published in the official Gazette, the Election Commission shall, after consultation with the Secretary, fix a date or several dates for elections to one or more electoral units under this Act:

(2) The Election Commission shall thereby call upon:

(a) the voters of the electoral unit to elect the Head of the local government, Deputy Mayors or Vice Chairperson as the case maybe, and Councillors; and

(b) the Councillors, other than the Councillors of the Union Council, to elect the Speaker.

54. Only nominated and eligible persons allowed to contest elections.– (1) No person shall be nominated for an election under this Act unless he is otherwise eligible for an election in terms of section 61 of this Act.

(2) No person, shall contest an election under this Act unless a Political Party or an Electoral Group includes that person as candidate for Head of the local government, Deputy Mayor, Vice Chairperson or a Councillor on its lists of candidates.

(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.

(4) The candidature fee paid by or on behalf of the candidate shall be non-refundable.

(5) A candidate may pay only one candidature fee even if such candidate is nominated for the same seat by more than one nomination papers.

(6) The Returning Officer shall, in the prescribed manner, after public notice and hearing the person nominated as a candidate or a person authorized by him in this behalf, satisfy himself 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.

55. Manner of conducting Elections.– Subject to the provisions of this Act and the Elections Act, the elections under this Act shall be conducted in the prescribed manner.

56. Code of Conduct for elections.– (1) The Election Commission shall by an order published in the official Gazette, issue 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 issued 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.

57. Returned Candidates.– (1) The candidates to the office of the Head of the local government, Deputy Mayor or Vice Chairperson as the case may be, and Councillors to the reserved seats, as joint candidates, appointed by the Political Party or the Electoral Group, securing highest number of votes in the respective electoral unit shall stand elected.

(2) The candidates to the office of a general Councillor shall be elected in the ranking order given by the Political Party or the Electoral Group on whose list they are contesting, in proportion to the votes secured by that Political Party or, as the case may be, Electoral Group in the respective electoral unit.

(3) Where there is equality of votes between two or more political parties or Electoral Groups obtaining highest votes, the Returning Officer shall recount the votes and in case equality still exists, forthwith draw a lot in respect of such political parties or Electoral Groups and on whom the lot falls, its candidate shall be declared elected.

(4) The Councillor of a local government, except a Union Council, securing highest number of votes of the Councillors, in the first meeting of the Council shall stand elected as the Speaker.

58. Announcement of Results. – Immediately after the counting of votes, the results of every election under this Act shall be announced through a public notice by the Returning Officer which shall be followed by a notification in the official Gazette by the Election Commission.

59. 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 procedures and exercise powers under the Elections Act.

60. Notification of vacancy and bye-election.– (1) The Election Commission shall, on receiving information, within fifteen days from the date of receipt of information, notify a vacancy occurred due to death, resignation, disqualification or removal of a Head of a local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor and publish the same in the official Gazette, and thereafter, Election Commission shall notify Election Programme and also publish the same in the official Gazette.

(2) Election Commission shall notify returned candidates elected under section 69 and 70 of the Act.

Chapter - XVI

Qualifications and Term of Office of Candidates

61. Qualifications and disqualifications.– (1) A person shall be eligible to be a candidate for the office of a Head of a local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor if:

(a) his name appears for the time being in the electoral roll of the electoral unit from where he is a candidate; and

(b) he, on the last day fixed for the filing of nomination papers for that election, is not less than twenty one years of age in case of a Councillor, and not less than twenty five years of age in case of a Head or a Deputy Mayor or Vice Chairperson or a Speaker:

provided that the age for a candidate for the seat reserved for Youth shall not be less than eighteen years and more than thirty two years.

(2) Without any prejudice to the provisions of subsection (1), no person shall be eligible to be a candidate or to hold the office of a Head of a local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor, if:

(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 unless a period of five years has elapsed;

(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 Federal Government or 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 a 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 unless a period of three years has elapsed;

(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 dependent for the use of any service such as Pakistan Telecommunication Company Limited, electricity, gas or water for over six months; and

(i) he is declared to have defected his Political Party or, as the case may be, the Electoral Group under this Act.

(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 Third Schedule along with his nomination papers for the election.

provided that a person contesting election to the Head of Metropolitan Corporation and District Council shall submit declaration of assets and liabilities alongwith his nomination papers.

62. 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, Deputy Mayor, Vice Chairperson, Speaker or a 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 Speaker, or a vote for removal of the Head of the local government, Deputy Mayor, Vice Chairperson, or a Speaker.

(2) After having declared a Councillor to have defected, 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, Deputy Mayor, Vice Chairperson, Speaker or 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.

63. Effect of being found to be disqualified to be a candidate, Head of the local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor.– (1) A person, on being found by the Election Commission to have filed nomination papers for a local government election or holding the office of a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or a Councillor, while knowing that he is not eligible to file such nomination papers or to hold such office; or have made election expenses in excess of the prescribed limit; or have failed to file a return on election expenses; 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, Deputy Mayor, Vice Chairperson, Speaker or a Councillor, for a period of four years from the date of disqualification.

(b) in case he is a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or a Councillor shall, cease forthwith to hold such office, and shall also stand disqualified from being a candidate in the local government election, for a period of four years from the date he ceased to hold such office.

(2) Any resident of the relevant local area may make a written complaint to the Returning Officer or the Election Commission to seek disqualification of a candidate from contesting local government election or from holding office on any ground mentioned in this section.

(3) Every order of the Returning Officer or the Election Commission under this section shall be passed in writing and after conducting inquiry as deemed appropriate and after affording right of hearing to such candidate or office holder as the case may be.

64. Bar against double membership.– (1) No person shall simultaneously hold the office of a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor in more than one local governments.

(2) No person shall simultaneously hold more than one such elected offices in the same local government except a Councillor who is elected as the Speaker.

(3) No person shall simultaneously hold the office of a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or a Councillor and a Member of the Parliament or Provincial Assembly.

(4) Where a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor is elected to any other such political office, his seat held in the local government shall become vacant, immediately upon taking oath of such office.

65. Term of office of the Council, Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or a Councillor.– (1) Subject to this Act, the term of office of a Council shall be four years commencing on the date on which it holds its first meeting.

(2) The term of office of every Head of the local government, Deputy Mayor, Vice Chairperson, Speaker, and Councillor shall, unless removed earlier under this Act, be the same as that of the term of office of the Council.

66. First Meeting and Oath of office.– (1) As soon as may be but not later than one month after the notification of results of an election by the Election Commission, the date or several dates of the first meeting of the Councils shall be fixed by the Election Commission.

(2) A person elected as a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor shall, before assuming his office, make and subscribe to an oath, appropriate to his office, in the form set out in the Fourth Schedule.

(3) The Election Commission shall nominate the Presiding Officers who shall administer the oath.

67. Effect of failure to take oath.– (1) The Election Commission shall, after giving an opportunity to show cause, disqualify an elected Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor from holding office, who fails to take oath within sixty days from the date of first meeting of the Council.

(2) Chief Officer or any resident of the relevant local area may make a written complaint within one month to the Election Commission for disqualification of a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor under this section.

68. Resignation by a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor.– (1) Any Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor of the Metropolitan Corporation or District Council 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 upon receipt of resignation under sub-section (1) shall forthwith forward it to the Deputy Director of the Directorate in the district concerned, who shall forward it to Secretary.

(3) The Chairperson, Vice Chairperson, or Councillor of Union Council may, at any time, resign from his office by writing under his hand to the respective Secretary of Union Council, whereupon his resignation shall be deemed to have been accepted and effective forthwith.

(4) The Secretary of Union Council upon receipt of resignation under sub-section (3) shall forthwith forward it to the Assistant Director of the Directorate in the tehsil concerned, who shall forward it to Secretary.

(5) The Secretary upon receipt of resignation under sub-section (2) or (4) shall immediately send the copy of 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, Deputy Mayor, Vice Chairperson, Speaker or Councillor to be vacant from the date of receipt of resignation.

(6) Notwithstanding the resignation of a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor under subsections (1) and (3), any proceedings for his removal under this Act, if already initiated, shall not abate as the same may result in his disqualification.

69. Fresh elections in case of casual vacancy in the office of a Speaker.– (1) If the office of the Speaker of a Council, other than a Union Council falls vacant during the term of the Council due to his removal on the basis of misconduct, disqualification or any other reason, the Election Commission shall hold a fresh election to the office of the Speaker of the Council.

(2) The Speaker of a Council elected through a fresh election under this section shall, unless removed earlier under this Act, hold office only for the residual term of the Council.

70. Filling up of casual vacancies of Head, Deputy Mayor, Vice Chairperson and Councillors.– (1) If, for any reason, the office of a Head in a Metropolitan Corporation or a District Council falls vacant during the term of a Council, the Deputy Mayor nominated by the Political Party or the Electoral Group to which the Head belonged, shall stand elected as Head.

(2) If, for any reason, the office of a Deputy Mayor of a Metropolitan Corporation or a District Council falls vacant, the councillor nominated by the Political Party or the Electoral Group to which the Deputy Mayor belonged, shall stand elected as Deputy Mayor.

provided that in case of District Councillor, the nominated Councillor shall be the voter of the respective Tehsil from which the Deputy Mayor belonged.

(3) If, for any reason, the office of a Chairman in a Union Council falls vacant during the term of a Council, the Vice Chairman shall stand elected as Chairman.

(4) If, for any reason, the office of a Vice Chairman falls vacant, the councillor nominated by the political party or electoral group to which the Vice Chairman belonged, shall stand elected as Vice Chairman.

(5) If, for any reason, the office of General Councillor in a local government falls vacant during the term of a Council, the candidate immediately below the last elected candidate in the ranking order in the list of the political party or electoral group to which the General Councillor belonged, shall stand elected.

(6) If, for any reason, the office of a Councillor on reserved seat in a local government falls vacant during the term of a Council, the additional candidate from the list of the political party or electoral group to which the Councillor on reserved seat belonged, shall stand elected to that office.

(7) If at any time, the list is exhausted, the concerned Political Party or Electoral Group may submit additional names for any vacancy, which may occur thereafter.

(8) A Head, Deputy Mayor, Vice Chairperson or Councillor elected under this section shall, unless removed earlier under this Act, hold office for the residual term of the Council.

71. Power of the Chief Minister to appoint an administrator.– On expiry of the term of a Council, or otherwise pending the constitution of a new local government or a Council, the Chief Minister shall, by an order published in the official Gazette, appoint any of its officers to perform such functions and exercise such powers and authority of the respective local government as may be specified in that order.

PART 4

LOCAL GOVERNMENT FINANCE AND PROPERTIES

Chapter - XVII

Local Government Finance

72. Funds of a local government.– (1) A local government shall establish a Local Fund, and all the revenues received by the local government from the following sources shall be credited to the Fund:

(a) the proceeds of taxes, tolls, fees, rates or charges levied by the local government;

(b) grants made to or monies received by the local government from the Government or other sources;

(c) rents and profits payable or accruing to the local government from immovable property owned or otherwise vested in or controlled or managed by it;

(d) proceeds or any other profits from any investment;

(e) gifts, grants or contributions to the local government by individual or institutions;

(f) income accruing from markets or fairs regulated by the local government;

(g) fines and penalties imposed under this Act;

(h) proceeds from other sources of income which are placed at the disposal of the local government under directions of the Government;

(i) all monies transferred to the local government by the Government; and

(j) monies transferred by another local government under this Act.

(2) The Government shall transfer the grants of a local government in the shape of share of the local government in the Punjab Finance Commission Award and share in the proceeds of taxes, tolls, fees, rates or charges levied by the local government collected by the Government to the Local Fund of the local government on monthly basis.

(3) Every local government shall maintain a Public Account to place all revenues received by the local government from the following sources:

(a) receipts accruing from trusts administered or managed by the local government;

(b) refundable deposits received by the local government; and

(4) A local government may establish and maintain a separate account for any special purpose to which one or more sources of revenue mentioned in subsection (1) or any part of these sources or any specified portion of the Local Fund may be assigned.

(5) The separate account under subsection (1) shall be maintained, administered and regulated as a Local Fund.

73. Custody of Local Fund and Public Account.– The monies credited to the Local Fund or the Public Account of a local government shall be kept and operated in separate accounts of a local government in such manner as may be prescribed.

74. Charged expenditure.– (1) The following expenditure shall be charged upon the Local Fund:

(a) the money required for repayment of loans;

(b) the money required to satisfy any judgment, decree or award against the local government;

(d) such other expenditure of local government as may be directed by the Secretary, in case of calamity or urgency.

(2) If any expenditure is a charge upon the Local Fund and is not paid, the Secretary may, by order, direct the person having the custody of the respective Local Fund to pay such amount from the Local Fund.

75. Application of Local Fund.– (1) The monies credited to a Fund shall be expended by a local government in accordance with the annual budget and supplementary budget approved by its Council.

(2) A local government may transfer approved budgeted amounts to any local government or Community Council or Panchayat or Community Based Organization, within its local area, for expenditure for the purpose of carrying out a project service or activity transferred to, or managed by, the recipient local government, Community Council, Panchayat or Community Based Organization, in the prescribed manner.

(3) The application of Local Fund shall be subject to the budgetary constraints and according to the minimum prescribed ratio of development and non-development expenditures.

(4) The development budget shall be prioritized in accordance with the bottom up planning system as laid down in section 78:

provided that:

(a) not more than twenty percent of the development budget shall be set apart for utilization in accordance with the provisions of section 78; and

(b) the amount referred to in clause (a) which remains unspent shall be credited under the same Head in the following year’s budget in addition to the fresh allocation under the said clause for that year.

(5) Every local government shall allocate not less than twenty percent of its budget for maintenance and repair of existing infrastructure and provision of earlier initiated services.

(6) Every local government shall allocate two percent of its budget for sports and cultural activities.

(7) Where a new local government is to take over during a financial year as a result of fresh elections, the outgoing local government shall not spend funds or make commitments for any expenditure under any Demand for Grant or Appropriation in excess of eight percent per month of the budgeted funds for the remainder of its term in office in that financial year .

(8) In every budget, a provision may be made for payment of such performance incentive bonuses as may be prescribed.

(9) Expenditure from the Fund of a local government on total establishment expenditures in a financial year shall not increase more than ten percent in total from the establishment expenditures of the previous year:

provided that this subsection shall not apply to a general salary increase of existing schedule of establishment prescribed by the Government.

76. Budget preparation.– (1) The annual budget for a local government shall contain estimates of:

(a) grants from the Government;

(b) amounts available in the Local Fund;

(d) expenditure to be incurred for the next year.

(2) The Government shall, sufficiently before the beginning of each financial year, notify the provisional share which may be credited to the Local Fund of a local government from the Provincial Allocable Amount.

(3) The functionaries of a local government may re-appropriate budget in accordance with the powers of re-appropriation delegated to them by the local government, and at the end of the financial year, a revised budget shall be submitted to the local government for approval.

(4) A demand for a grant shall not be made except on the recommendation of the Head of local government.

(5) Conditional grants from the Government or other local government shall be shown separately in the budget and shall be governed by the conditions on which such grants were made.

(6) Before the commencement of a financial year each local government shall, for its Fund, prepare in the prescribed manner, a budget for that year in conformity with the provisions of section 78.

(7) A local government shall prepare the budget in the prescribed manner and in accordance with the chart of accounts notified by the Auditor-General of Pakistan.

77. Approval of budget.– (1) Before the commencement of the next financial year, the Head of local government shall present the budget for consideration and approval of the local government.

(2) The local government may discuss the charged expenditure but shall not vote on such expenditure.

(3) The budget of a local government shall, subject to quorum, be approved by simple majority and the local government shall not take up any other business during the budget session.

(4) Secretary may review approved budget of a local government, and if found contrary to the budget rules, may require the local government to rectify it.

(5) A budget shall not be approved if the sums required to meet estimated expenditure including previous liabilities and commitments exceed the estimated receipts.

(6) In case a budget is not approved by a local government before the commencement of the financial year to which it relates, the local government shall spend money under various objects, on pro-rata basis in accordance with the budgetary provisions of the preceding financial year for a period not exceeding thirty days.

(7) A local government shall not spend funds or make commitments for any expenditure under any demand for grant or appropriation in excess of eight percent of the amount budgeted in the preceding year within the period of thirty days mentioned in subsection (6).

(8) In case, a local government fails to pass the budget within the extended period as specified in subsection (6), the Secretary shall prepare, approve and authenticate the budget of the local government for full year.

(9) After approval of the budget by a local government, the Head of local government shall authenticate under his signature a schedule specifying:

(a) grants made or deemed to have been made by the local government; and

(b) sums required to meet the expenditure charged upon the Local Fund.

(10) The budget authenticated under subsection (8) shall be laid before the local government but shall not be open to discussion or vote.

(11) The authenticated budget shall be communicated to the local government functionaries, accounts officials, the Secretary and posted on the official website or a portal designated by the Department for this purpose.

(12) At any time before the expiry of the financial year to which the budget relates, a revised budget for the year may, if necessary, be prepared and such revised budget shall be approved in the manner as that of annual budget.

78. Bottom up planning and the community ownership incentive system.– (1) Before the beginning of the financial year the respective local government shall lay down and announce the classification of development schemes to be undertaken exclusively under the provisions of this section.

(2) A local government may grant to the Community Based Organization within its local areas, up to eighty percent of the budgeted amount of an approved development scheme in the manner prescribed:

provided that a scheme shall be deemed to be an approved scheme if:

(a) the prescribed departmental procedure for estimating the cost of the scheme has been followed;

(b) the estimating officer certifies that the scheme meets the requirements laid down by law;

(c) the Community Based Organization has deposited its share of the cost of the development scheme with the concerned local government; and

(d) the complete departmental estimates and the proof of deposit of the contribution of Community Based Organization are attached.

(3) The grant referred to in subsection (2) shall be spent from the reserved amount of the annual development budget as provided in section 75.

(4) A cut-off date for submission of all schemes proposed by the Community Based Organization shall be announced by the local government concerned before the presentation of its budget.

(5) The respective local government shall authorize an official to draw up a statement specifying the schemes submitted by the cut-off date specified in subsection (4) by classification including the total amount of contributions for a particular classification of schemes.

(6) A second statement shall determine contributions for a particular classification of schemes as a ratio of the total contributions for all schemes submitted with a particular local government for that year, and the statement shall be used to determine amounts of allocations for a classification of schemes from the budget reserved for the purpose.

(7) A third statement shall be drawn up which shall identify the number of schemes submitted in a particular classification, beginning with the scheme containing the highest contribution by the Community Based Organization in a classification until all the schemes in the classification are selected or the funds allocated for that particular classification in the amount determined in subsection (6) are exhausted.

(8) The funds for Community Based Organization under section 75 shall be communicated to the authorized officer under subsection (5).

(9) The identified schemes shall be included in the budget before submission to the concerned Council.

(10) The statement referred to in subsection (7) shall be approved by a simple majority of the members of the respective Council in a budget session to be held by the respective Council.

(11) The schemes approved by the respective Councils shall be carried out as prescribed.

(12) Subject to subsection (10), the Accounts Official of the respective local government shall release funds in the prescribed manner in accordance with the schedule of expenditure.

79. Honoraria and allowances.– A local government may, subject to the specified limitations approved by the Government, make budgetary provisions for honoraria and allowances of the Head of local government, Deputy Mayor, Vice Chairperson, Speaker, Opposition Leader or a Councillor of the local government.

Provided that remuneration and allowances would be allowed only in one capacity.

80. Accounts.– (1) The accounts of all receipts and expenditures of a local government shall be kept in such form and in accordance with such principles and methods as may be prescribed by the Auditor-General of Pakistan.

(2) In addition to maintenance of accounts by a local government, Provincial Director, Local Fund Audit of the Government shall maintain the accounts of the local governments, other than the accounts of the Union Council, and devolved offices managed under the respective District Local Government Authority.

(3) The Secretary of a Union Council, shall maintain the accounts of the Union Council.

(4) Accountant General and District Accounts Officer of the District shall maintain the accounts of the devolved offices managed under the respective District Local Government Authority.

(5) The Provincial Director, Local Fund Audit of the Government shall pre-audit all the payments from the Local Fund of a local government other than the payments from the Local Fund of the Union Council and accounts of the devolved offices managed under the respective District Local Government Authority.

(6) The Secretary of the Union Council shall pre-audit all the payments from the Local Fund of the Union Council.

(7) The Accountant General and the District Accounts Officer shall pre-audit all the payments from the Local Funds of the devolved offices managed under the respective District Local Government Authority.

(8) A local government shall not withdraw or disburse money from the Local Fund unless it is pre-audited in the prescribed manner.

(9) The Provincial Director, Local Fund Audit and the Accountant General shall, by fifteenth day of July, prepare an annual statement of receipts and expenditures of the accounts of local governments and District Local Government Authorities, for the preceding financial year, and shall transmit the statement to the Government and the concerned local government.

(10) A copy of the annual statement of accounts shall be displayed at a conspicuous place in the office of the local government for public inspection, and all objections or suggestions concerning such accounts received from the public shall be considered by the local government and appropriate decision shall be taken.

81. Audit.– (1) The Auditor-General of Pakistan shall, on the basis of such audit as he may consider appropriate or necessary, certify the accounts of a local government for each financial year.

(2) The Auditor-General shall audit the accounts of a local government in such form and manner as may be deemed appropriate.

(3) The audit report of the Auditor-General shall be considered by the Public Accounts Committee of the Provincial Assembly of the Punjab.

(4) If in the opinion of the Government, it is necessary in public interest to have a special audit of a local government, it may cause it to be conducted by Auditor General of Pakistan or the Provincial Director Local Fund Audit .

(5) After the receipt of special audit report of a local government, the Government may, after enquiry by the Punjab Local Government Commission, take appropriate action on the recommendations of the Commission.

82. Local government debt.– (1) A local government shall not incur any debt without previous approval of the Government.

(2) A local government may invest surplus funds, if any, in such securities and financial institutions, as may be approved by the Government.

Chapter - XVIII

Punjab Local Government Finance Commission

83. Local Government Finance Commission.– (1) The Government shall constitute the Punjab Local Government Finance Commission to perform functions under this Act.

(2) The Finance Commission shall comprise of members including the Chairperson as under:

(a) Minister in charge of Finance Department of the Government, who shall also be the Chairperson of the Finance Commission;

(b) Minister in charge of the Department, who shall be the co-Chairperson of the Finance Commission;

(c) four members of the Provincial Assembly of the Punjab, 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 Assembly;

(d) Secretary to the Government, Finance Department, who shall also be the Secretary of the Finance Commission;

(e) Secretary of the Department;

(f) Secretary to the Government, Planning and Development Department;

(g) four experts including one woman, on local governments and local government finance appointed in terms of section 86 of this Act; and

(h) four Heads of the local governments to be nominated by the Chief Minister.

(3) In case of 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.

84. Term of office and premature removal of certain members.– (1) The Ministers and Secretaries referred to in section 83 of this Act shall be ex-officio members of the Finance Commission.

(2) A Head of the local government referred to in section 83 of this Act shall hold the office of member of Finance Commission for four years from the date of assumption of office.

(3) An expert member referred to in section 83 of this Act shall hold office for four years from the date of assumption of office.

(4) The Chief Minister may, after due notice and inquiry in the prescribed manner, remove any member of the Finance Commission, not being the member referred to in subsection (1), during the tenure of his office on ground of inefficiency, misconduct, misuse of office or inability to perform functions on account of bad health or physical or mental incapacity.

(5) Any member of the Finance Commission, not being the member referred to in subsection (1), may resign from his office by writing under his hand to the Chairperson of the Commission.

85. Casual vacancies.– (1) Where the position of a member, not being the Minister or a Secretary to the Government, becomes vacant on account of his resignation, removal, death or for any other cause, the Government shall appoint a person to fill this vacancy in the same manner as was applicable for the selection of that member.

(2) A person appointed under subsection (1) shall hold office for the remainder of the term of office of the member to whom he replaces.

86. Eligibility for appointment as an expert member.– (1) A person shall be eligible for appointment as an expert member under section 83 of this Act if:

(a) he has at least sixteen years education in a discipline related to the functions of the Finance Commission, possesses adequate knowledge of economics, public finance, accounts, or working of the local governments in general with at least fifteen-year experience in the aforesaid or any other related affairs;

(b) he is, for the time being, qualified to be a candidate for an election under this Act;

(c) he is not in the service of Pakistan or any office or body which is set up, or owned or controlled by the Government, or a local government in the Punjab, or in which the Government or a local government has a controlling share or interest or otherwise holds any office of profit in the Government;

(2) Subject to the provisions of subsection (4), a person who has previously remained as an expert member shall be eligible for re-appointment as a member of the Finance Commission.

(3) No Head of the local government shall be eligible for appointment as a member of the Finance Commission if he has previously remained its member as a Head of the local government during the preceding four calendar years.

(4) An expert member or a Head of the local government who has previously been removed from the office of a member of the Finance Commission under subsection (4) of section 84 of this Act shall not be eligible for appointment as a member of the Finance Commission subsequently.

87. Oath of office of members of Finance Commission.– Before entering upon office, every member of the Finance Commission shall make an oath in the form set out in the Fourth Schedule before Governor of the Punjab.

88. General functions of the Finance Commission.– (1) In addition to any other work assigned to it under this Act or any other law for the time being in force, the Finance Commission shall:

(a) establish formulae for determining the size of provincial allocable amount and the share of local governments from this amount;

(b) oversee and report upon the transfer of share of local governments from the provincial allocable amount in accordance with the formulae referred to in clause (a);

(c) advise the Government or a local government on matters relating to fiscal transfers to and fiscal performance of local governments;

(d) advise the Government or a local government on specific matters, objections or claims in relation to fiscal transfers;

(e) support local governments in effecting improvements in their fiscal capacity and performance, better budget management and increased adherence to financial and procurement laws;

(f) fix an enhanced incidence of a local tax, fee, rate, toll, rent or other charge of a local government if it is under fiscal distress;

(g) recommend the schedule, nature and structure of independent audits of the local governments;

(h) monitor fiscal health of local governments on an annual basis in particular their fiscal effort and performance; their ability to meet budgetary and development targets, their debt management and to make a determination of fiscal distress defined in terms of the ability of a local government to balance their budgets by ensuring that the sum of estimated net revenues and appropriated fund balances are sufficient to cover appropriations and other liabilities including pension and general provident fund liabilities;

(i) during the first month of each financial year, present to the Government and all local governments in the Punjab an annual report on fiscal performance of local governments during the previous financial year which shall, among other things, include an analysis of the matters referred to in this subsection and fiscal transfers made to the local governments and own resources raised by them and their performance in meeting budgetary and performance objectives.

(2) The report referred to in clause (h) and (i) of subsection (1) shall be laid before the Provincial Assembly.

(3) The Finance Commission shall not be subject to or take cognizance of the directions of any person as to the manner in which it shall discharge its duties.

(4) The Secretary shall, during the exercise of its powers under this Act, shall have regard to the recommendations, reports and advice of the Finance Commission in relation to the matters mentioned under subsection (1).

Explanation: For the purpose of this section, the term fiscal stress shall mean the condition under which a local government is unable to generate sufficient receipts within the period under question to meet its expenditure and other liabilities.

89. Right of local governments to refer objections to Finance Commission.– (1) Where a local government has any objection on the sums to be transferred or likely to be transferred to it or to any other local government from provincial allocable amount under this Act, that local government may make a reference to the Finance Commission.

(2) Every reference under subsection (1) shall be made in writing and contain grounds of objection.

(3) The Finance Commission shall, after due notice and inquiry, decide every reference made to it under this section in not more than sixty days.

90. Procedure of Finance Commission.– (1) The Finance Commission shall, subject to this Act and the rules, regulate its own procedure.

(2) All decisions of the Finance Commission shall be made through a simple majority of votes of the members present and voting on one member one vote basis.

(3) The quorum necessary for transaction of business at an ordinary or special meeting of the Finance Commission shall be one-half of the members holding office at the time out of whom not less than two shall be the expert members.

(4) All meetings of the Finance Commission shall be public unless the members present, by a simple majority vote, decide to exclude public from the whole or part of the proceedings on the ground that public information of the proceedings of its meeting shall be prejudicial to public interest by reason of the confidential nature of business to be transacted at that meeting or for such other special reasons as may arise from the nature of business to be transacted or the proceedings at the meeting.

(5) The Finance Commission shall exercise the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (V of 1908) with regards to summoning and enforcing the attendance of any person and compelling the production of documents and records for the purposes of this Act.

91. Duty of local governments and other public entities etc. to cooperate with Finance Commission.– (1) The Finance Commission may require the Government, a local government, an agency owned or managed by the Government or a local government, or any other person or authority in the Punjab to render assistance to it or to provide all information which it reasonably requires for the purposes of this Act.

(2) It shall be the duty of the Government and all such local governments, public entities, or other persons and authorities to render assistance or to provide information as is required by the Finance Commission under subsection (1).

92. Secretariat of the Finance Commission.– (1) The Finance Commission shall have a secretariat comprising such number of officers and staff as the Government may from time to time determine

(2) There shall be a separate budget for the Finance Commission in the annual budget of the Punjab.

(3) The secretariat of the Finance Commission shall be headed by the Secretary to the Government, Finance Department who shall also be the Principal Accounting Officer of the Finance Commission.

Chapter - XIX

Local Government Properties

93. 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 with the title, 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 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 (VIII of 1873) or any other law on the subject of the Act ibid, 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) any 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.

(3) The Government shall not, except with the prior consent of the local government concerned, reallocate or in any other manner divest title of properties vested in that local government under this Act.

94. Use and disposal of properties of local governments.– (1) The properties of local governments shall be used only for public purposes.

(2) The immovable properties of local governments shall not be sold or permanently alienated without prior approval of the Government:

provided that in case title of an immoveable property is transferred to a Government department, authority, or agency, the price of property not less than the amount assessed by District Price Assessment Committee shall be transferred to such local government.

(3) The properties of the local government may be given on lease through competitive bidding by public auction.

(4) The local government may through a written agreement, lease a property to a Government department, authority or agency, without public auction on a rent approved by the Council.

(5) The local government may constitute a Committee headed by the Head of the local government to identify encroached or redundant properties that may be sold in the prescribed manner with the approval of the Government, and the funds generated from the sale of such properties shall be kept in a separate head of account and be used only for development purposes.

(6) Where a lease of immoveable property of a local government under a valid lease agreement has expired or is about to expire and it does not contain any condition for extension of lease period, the period of lease may be extended upto ten years after fresh assessment by Rent Assessment Committee on a rate not below the rate assessed by it with an annual increase of ten percent, consisting of following members:

(a) Head of the local government as convenor;

(b) Assistant Commissioner concerned or his nominee;

(d) Incharge of Finance Wing of the local government as Secretary of Committee;

(e) Incharge of Regulation Wing of the local government; and

(f) District Excise and Taxation Officer or his nominee not below the rank of BS-16.

(7) Where no written lease agreement is available but the occupant of immoveable property has been paying rent to the local government for at least last five years, the local government may enter into written agreement with the occupant for a period of five years after fresh assessment by Rent Assessment Committee on a rate not below the rate assessed by it with an annual increase of ten percent.

(8) In case of failure to enter into written agreement under subsection (6) or (7), the local government shall, within one month, take over the possession of the immoveable property and shall proceed in accordance with subsection (3).

(9) The movable property of a local government including all articles declared unserviceable which are required to be disposed of, shall be sold through competitive bidding by public auction.

(10) 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.

95. Acquisition of immovable property.– Whenever any local government considers it necessary or expedient, it may acquire or purchase any immovable property for public purposes, with the prior permission of the Government:

provided that in case of purchase of property, the agreement of purchase shall be in writing:

provided further that the development authorities entrusted to local governments, may acquire land for development purposes and may sell or dispose of thereafter in accordance with the existing laws and the rules made thereunder.

96. Loss of property of local government.– In case of any loss of property of the local government, the responsibility for such loss shall be fixed by the concerned local government and the amount of the loss shall be recovered from the defaulting person and a report to this effect shall forthwith be submitted to the concerned Council in the meeting next following.

97. Annual stock of local government properties.– Every local government shall, in the prescribed manner, at least once in every financial year, take the physical stock of movable and immovable properties of the concerned local government, submit a report to the concerned Council and shall publish the same.

98. Insurance of certain local government properties.– A local government may, subject to the rules and any other relevant l