Act on Municipalities (Gemeindegesetz, GG) - I. Definition (GG)

1. Municipalities are territorial corporations under public law with general purposes and their own legal personality. They encompass the territory defined by their municipal boundaries, including all persons who reside or are present within.

2. In this law and other decrees, municipalities are referred to as "communes."

1. The personal designations used in this law refer to both genders.

1. The municipalities shall regulate and administer their affairs independently, under the supervision of the state.

1. Municipalities may establish independent or dependent public-law municipal institutions to fulfill specific tasks.

2. Municipalities may delegate the fulfillment of individual tasks to third parties by contract.

3. Third parties may also be involved in the cooperation.

1. The establishment of an independent public-law municipal institution requires the adoption of the institution’s charter by the municipal assembly or the residents' council and the approval by the government council.

2. Amendments to the institution’s charter must be resolved by the municipal assembly or the residents' council and require the approval of the government council.

1. The Foundations of the Autonomous Public Law Municipal Institution shall be governed by the Institution's Charter. This charter shall particularly include provisions

a) on the name and location of the institution,

b) on the nature and scope of the assigned task,

c) on the organization with at least one executive body and one supervisory entity,

d) on the competence for the election of the bodies,

e) on the delegated authorities,

f) on financing,

g) on liability for the institution's obligations,

h) on supervision.

2. The supervisory entity may be the Finance Commission or an external auditing office, which holds the appropriate federal accreditation in accordance with the provisions of the Federal Act on the Accreditation and Supervision of Auditors (Auditor Supervision Act, ASA) of December 16, 2005.

1. Furthermore, the provisions concerning municipalities shall apply, insofar as they are compatible with the specifics of the independent public-law municipal institutions.

1. Alterations of municipal boundaries that concern undeveloped areas and do not cause any significant changes to the composition of the municipalities can be effected through agreements between the municipalities. These require approval by the governing council.

2. For important reasons, the governing council may also decide such changes on its own initiative, after consulting the municipalities.

1. Changes in the Status of Municipalities are Possible Through

a) Merger (Incorporation or Amalgamation),

b) Reallocation of Municipal Territories (Reassignment),

c) Formation of a New Municipality.

1. The merger of municipalities can occur if it is approved by the majority of voters in each of the affected municipalities.

2. The merger and any associated public law agreements require approval by the Grand Council.

1. In the event of a merger of municipal communities, the Grand Council simultaneously merges the corresponding civil communities.

2. Civil communities can merge with the corresponding municipal communities if both communities decide to do so.

3. ...

1. The municipality enlarged or newly formed through the merger shall assume the legal relations of the former municipalities. It shall take over their assets and liabilities.

2. The former civic rights shall be replaced by those of the municipality arising from the merger. In the event of the unification of a local citizen municipality with the corresponding resident municipality, the previous local citizenship rights shall be abolished.

2bis. The municipal citizens affected by the merger may, within two years after the merger's entry into force, apply to the competent Regional Civil Registry Office, subject to a fee, for the inclusion of their previous municipal citizenship rights as a bracketed addition to the applicable municipal citizenship rights.

3. The Grand Council may issue implementing provisions regarding the merger of resident municipalities and local citizen municipalities with resident municipalities.

1. The Executive Council provides merging municipalities with payments in accordance with the Financial Equalization Act (Finanzausgleichsgesetz, FLAG) of June 29, 1983

a) * Project cost contributions,

b) * Merger lump-sum payments pursuant to § 13a paragraph 2 FLAG,

c) * Merger contributions pursuant to § 13a paragraph 2 FLAG,

d) * Equalization contributions pursuant to § 13a paragraph 4 FLAG.

2. The canton, its public law institutions, and the municipalities shall make the mandatory changes to official documents and the land register required as a result of a municipal merger free of charge.

1. The merger agreement may provide for the election of additional members to the authorities and commissions elected by the eligible voters, and may deviate from the number of members prescribed by law or municipal regulations for no more than one term of office.

1. Developed or larger undeveloped areas of a municipality shall be allocated to one or more other municipalities if this change is decided upon in the involved municipalities and the Grand Council grants its approval.

2. The residents of the areas affected by the reallocation must be consulted beforehand.

1. Territories may be separated from one or more municipalities to form a new municipality, provided that the eligible voters residing in the territories to be separated and those in the remaining municipal territories consent in separate ballot votes.

2. The formation of new municipalities requires approval by the Grand Council.

3. The formation of new local civic municipalities as a result of creating new resident municipalities is not permitted.

1. In the reallocation of municipal areas and the formation of new municipalities, a distribution of assets and liabilities takes place with special consideration of the needs and the tax capacity of the individual areas. If the municipalities cannot agree on the distribution, the administrative court makes a final decision.

2. The reorganization of municipal areas and the formation of new municipalities results in the affected citizens receiving the citizenship rights of the acquiring or new municipality. Their previous local citizenship rights remain unaffected.

3. Citizens affected by the reassignment or the formation of a new municipality can, within two years after the entry into force of the reassignment or the formation of a new municipality, apply for the inclusion of their previous municipal citizenship as a bracket addition to the current municipal citizenship at the competent regional civil registry office, subject to a fee.

1. The municipalities retain their existing names, coats of arms, and seals. They may change these symbols.

2. In the event of a merger or formation of new municipalities, the new municipality shall decide on the name, coat of arms, and seal.

3. Resolutions concerning the change or creation of names, coats of arms, and seals require approval by the government council. The protection of names, coats of arms, and seals is governed by the relevant federal legislation.

1. Special statutory provisions apply to local communities. The present law is only applicable to them insofar as it is expressly stated.

2. Local municipalities that still exist for the fulfillment of specific tasks are to be merged with the corresponding resident or local communities by resolution of the governing council.

3. ...

1. Forest Corporations, Justice Associations, and similar organizations are subject to private law.

1. Municipalities are subject either to the organization with a municipal assembly or to that with a residents' council.

1. Organs of municipalities with a municipal assembly are

a) the municipal assembly,

b) the entirety of eligible voters at the ballot,

c) the municipal council,

d) the mayor,

e) the commissions and municipal staff with their own decision-making authority.

2. In municipalities with a residents' council, this council replaces the municipal assembly as the organ.

1. Except for the municipal council, local authorities and commissions with their own decision-making powers must be sworn in by the mayor or by the president of the local council in written or oral form before taking office.

2. Municipal personnel must be sworn in by the municipal council in written or oral form.

3. In the case of re-election and promotion, an oath of office is not required.

1. Municipalities determine their organization within the framework of legal provisions through the municipal code. This requires approval by the governing council to be valid. It is responsible for legal oversight.

1. The municipal ordinance must contain provisions regarding

a) the number of authority and commission members to be determined by the municipalities;

b) the conduct of elections;

c) the manner of required publications;

d) the jurisdiction for concluding agreements concerning municipal boundaries;

e) the jurisdiction for the acquisition, disposal, and exchange of real estate;

f) other competencies of municipal bodies.

2. The municipal ordinance may further specifically determine

a) the establishment of an audit commission and the number of its members;

b) * ...

c) * ...

d) electoral districts for elections to be held by the municipality;

e) * the increase or decrease in the number of signatures required for referendum and initiative proposals;

f) * the jurisdiction of the municipal council for granting municipal citizenship to foreigners.

1. The Municipal Assembly is composed of all eligible voters residing in the municipality.

1. The Municipal Assembly is the highest authority of the municipality.

2. The Municipal Assembly has the following tasks and powers

a) * the determination of the budget and the tax rate;

b) * the receipt of the accountability report, the annual financial statement, and the credit accounts, as well as decision-making on them;

c) decision-making on commitment credits and new, annually recurring expenditures;

d) the assumption of guarantees and other securities;

e) setting the compensations for the members of the municipal council;

f) * decision-making on the establishment of municipal institutions of any kind;

g) decision-making on participation in private or mixed-economy enterprises;

h) the approval of contracts for the transfer of tasks to third parties and of municipal contracts whose consequences are of significant financial importance for the municipalities or directly for their residents;

i) the enactment of regulations in which fees and contributions are stipulated, and of regulations executing cantonal decrees;

k) * the assurance of municipal citizenship to foreign nationals, unless the municipal code provides for the competence of the municipal council;

l) the enactment and amendment of the service and salary regulations for municipal staff;

m) decision-making on the distribution of assets and debts in the case of reallocation of municipal areas and the formation of new municipalities;

n) decision-making on joining a municipal association, a possible withdrawal, as well as the dissolution of an association;

o) decision-making on changes or creation of new municipal names, coats of arms, and seals;

p) decision-making on matters subject to the mandatory referendum;

q) those transferred to it by legislation and the municipal code, based on § 18 para. 1 lit. d-f.

3. The Municipal Assembly exercises supervision over the municipal authorities and all branches of the municipal administration, including dependent public law municipal institutions.

1. The following are elected at the municipal assembly or by ballot

a) the members of the municipal council, the mayor, and the deputy mayor;

b) * the members of the finance commission and, if applicable, the business audit commission;

c) the vote counters and their substitute members;

d) the members and substitute members of the tax commission;

e) * ...

1. The municipal assembly is convened by the municipal council.

2. By means of a justified written request, 10% of eligible voters can demand the discussion of a subject at the assembly. Simultaneously, the convening of an extraordinary assembly may be requested.

2bis. The municipal code may reduce the number of signatures required according to paragraph 2 to up to 5% of eligible voters.

3. The municipal assembly has the capacity to deliberate if it has been duly convened.

1. No later than 14 days before the municipal assembly, the eligible voters must be summoned by the municipal council through the delivery of voting certificates and the agenda with the proposals and any explanations. The documents must be made publicly available.

2. A substantive resolution can only be passed on matters of business that have been duly announced.

1. The municipal mayor presides over the meetings, conducts the negotiations, and ensures the maintenance of peace and order.

2. During the vote on the annual accounts and credit reports, the chairperson of the finance committee presides, whereby the members of the municipal council, the municipal clerk (female or male), as well as the head of finance (female or male) must abstain from voting.

1. If a voting member has a direct and personal interest in a matter being deliberated, because it results in direct and precisely determined, particularly financial, impacts for them, then they, along with their spouse or registered partner, their parents, and their children with their spouses or registered partners, must leave the meeting room before the vote.

2. The same obligation to recuse applies to members of the management and directors of legal entity companies, as well as to members of partnerships, if a matter being deliberated directly affects the interests of the company they represent.

1. The municipal assembly is public. The chairperson can, for important reasons, prohibit the participation of non-voting persons. The press shall have access in all cases.

2. All resolutions of the municipal assembly shall be published without delay.

1. Each eligible voter has the right to submit motions regarding procedure and substance on the matters listed on the agenda.

2. Votes are conducted openly unless 25% of the present eligible voters request a secret ballot. The decision is made by the majority of those voting. In the event of a tie in open votes, the chairperson casts the deciding vote.

1. Every eligible voter is entitled to propose to the assembly the referral of a new matter to the municipal council for report and recommendation.

2. The item to be reviewed by the municipal council is to be placed on the agenda of the next assembly. If this is not possible, the reasons must be explained to it.

1. Every eligible voter may submit inquiries regarding the activities of the municipal authorities and the municipal administration. These inquiries must be answered immediately or at the next assembly. A general discussion may follow these inquiries.

1. The municipal assembly makes final decisions on the matters to be addressed, provided that the deciding majority constitutes at least 20% of the eligible voters.

1. Positive and negative resolutions of the municipal assembly are subject to a ballot if 10% of the eligible voters request it in writing within 30 days from the date of publication.

2. The municipal regulations may increase the number of signatures required according to paragraph 1 up to 25% of the eligible voters or reduce it to 5% of the eligible voters.

1. Resolutions of the municipal assembly become legally binding on the day they are accepted by the eligible voters if a request for a ballot vote is made, otherwise on the day after the unused expiration of the referendum period.

2. Any necessary approval by cantonal authorities and the taking of legal remedies are reserved.

1. If a request for a ballot vote has been made against a resolution of the municipal assembly, the entire body of eligible voters shall decide at the ballot box in accordance with the provisions of the law on elections and votes.

2. The following are subject to a mandatory ballot vote in all cases

a) Adoption and amendment of the municipal code;

b) Resolutions on changes in the composition of municipalities;

c) Resolutions on the introduction of the organization with a residents' council.

1. The municipal council consists of the mayor, the deputy mayor, and an additional 3, 5, or 7 members residing in the municipality.

1. For eligibility, term of office, and the swearing-in of members of the municipal council, the provisions of the cantonal constitution apply. The swearing-in is conducted by the competent department.

2. Upon acceptance of election, each member of the municipal council, the mayor, and the deputy mayor commit themselves to performing their duties for the entire term of office. An early resignation is permissible only for important reasons and requires the consent of the Department of the Interior.

3. If a member of the municipal council, the mayor, or the deputy mayor leaves office before the end of the term, a by-election must be held.

1. The Municipal Council is the executive and administrative body of the municipality. It is responsible for organizing the administration in an efficient and progressive manner.

2. The Municipal Council represents the municipality externally and is, in turn, represented by the Mayor and the Municipal Clerk, whether male or female.

1. The municipal council holds all powers that are not assigned to another body by the regulations of the federal government, the canton, or the municipality.

2. The duties of the municipal council include, in particular

a) the preparation of all matters and the submission of proposals to the superior municipal bodies, as well as the execution of their decisions;

b) the direct supervision of the administration and financial management of the municipality, including dependent public-law municipal institutions;

c) the annual submission of a written or oral accountability report on the municipal administration;

d) the taking out of loans, bonds, and credits as well as the investment of funds;

e) the representation of the municipality in all legal disputes, including necessary expropriation procedures;

f) ensuring local security in accordance with the law on guaranteeing public safety (Police Act, PolG) of December 6, 2005, as well as the issuance of corresponding regulations;

g) the tasks assigned to it by special decrees;

h) the establishment and abolition of easements (excluding building rights and gravel extraction rights), of real burdens, and real security interests in favor of and to the detriment of the municipality, with the corresponding entries and deletions in the land register;

i) the arrangement of naming and annotations in the land register in the cases provided by law;

k) the naturalization of Swiss nationals, the release from citizenship with the reservation of release from Swiss citizenship, as well as the assurance of municipal citizenship for foreigners, if provided by the municipal regulation;

l) the awarding of public works and deliveries;

m) all further tasks assigned to it by canton and municipal regulations, namely the municipal order, as well as by decision of superior bodies;

n) the election of commissions, insofar as it is not assigned to another body;

o) the election or appointment of municipal personnel;

p) the election or appointment of other officials who are to be appointed by the municipal council according to the relevant regulations.

1. The municipal council may impose fines of up to CHF 2,000 pursuant to the police regulations. Reserved are the penalty provisions of other enactments.

2. The municipal council imposes fines by penal order. The procedure is regulated in § 112.

1. The municipal council may delegate decision-making powers to one of its members, to committees, or to employees of the administrative office entrusted with the corresponding task.

2. If the affected parties declare that they do not agree with the decision of this office, the municipal council shall decide on the matter itself. The declaration must be submitted in writing to the municipal council within 10 days of the delivery of the decision.

3. The details of the delegation are to be specified by the municipal council in regulations.

1. The municipal clerk and the deputy clerk are elected by the municipal council for a term of office or appointed by a public law contract or an order for an indefinite or fixed duration.

2. ...

3. The municipal clerk or the deputy clerk participates in the meetings of the municipal council with an advisory voice and keeps the minutes of the community assembly, the residents' council, and the municipal council.

1. For the quorum of the municipal council, an absolute majority of the council is required.

2. For the validity of a resolution, a majority of the votes of the members present is required. A member is considered present if they attend the meetings on-site or virtually in accordance with paragraph 4.

3. The meetings of the municipal council are not public.

4. The municipal council may provide in a regulation that its meetings can exceptionally be conducted virtually or in a hybrid format.

1. The mayor presides over the meetings and casts the deciding vote in elections and referendums.

2. The proceedings are governed by the provisions of the Administrative Procedure Act.

1. The Municipal Mayor presides over the municipality.

2. The Municipal Mayor

a) * ensures the execution of the resolutions passed by the municipal bodies,

b) * carries out the tasks assigned by the supervisory authorities,

c) * ...

d) * issues the necessary orders in urgent cases and reports on them to the municipal council at the next meeting.

3. ...

4. ...

5. ...

1. In case of incapacity, the Mayor shall be represented by the Deputy Mayor, if the Deputy Mayor is also incapacitated, by the longest-serving member of the Municipal Council.

1. In every municipality, there shall be a Finance Commission. It shall consist of at least three members and shall constitute itself. The tasks of the Finance Commission are

a) * To provide an opinion on the budget to the municipal council and the competent authority,

b) * To review the annual financial statements and credit reports, and to submit a written report to the municipal council and the competent authority,

c) * To examine the principles of budget management as per § 85b and bookkeeping as per § 92a,

d) * To handle other matters designated by the municipal regulation, provided that it does not require the election of an auditing commission.

2. ...

3. The Finance Commission shall report any significant deficiencies in accounting and any indications of potentially criminal conduct without delay to the municipal council and the competent department.

1. The Audit Commission is responsible for examining the accountability report and handling any other matters that may be specified by the municipal regulations. The provisions regarding the Finance Commission apply correspondingly.

1. Insofar as the law does not provide for election for a term of office, municipal personnel may be employed through a public-law contract or decree, either for an indefinite or fixed term.

2. Employment based on a private-law employment contract is reserved for the municipalities.

1. The municipalities may enact a service and salary regulation. In the absence of such a regulation or if it contains gaps, the relevant provisions of the cantonal personnel law shall apply accordingly.

1. The municipal council holds disciplinary authority over the municipal staff.

2. In cases of intentional or negligent breach of duty, the municipal council may impose the following disciplinary measures

a) Warning;

b) in the event of an ineffective warning, serious breach of duty, or incompetence, reassignment to provisional status or premature dismissal;

c) suspension from office during a criminal investigation for a serious offense or crime;

d) salary reductions, if provided for in the service and salary regulations.

3. The individuals concerned must be heard beforehand.

1. The introduction of the organization with a residents' council shall be decided by a fundamental resolution at the ballot box.

2. The conduct of the ballot may be requested by the municipal council, the municipal assembly, or 20% of the eligible voters by means of a written petition.

1. In the event of an affirmative fundamental decision, the municipal council must submit a corresponding municipal ordinance to the municipal assembly for resolution, to be forwarded to a ballot vote. This ordinance shall specify the date on which the organization with a citizen council will come into effect.

1. The organization with a resident council can be abolished by a ballot vote at the end of a term of office of the municipal authorities.

2. The provisions concerning the introduction are applied mutatis mutandis for the initiation of the procedure for abolition.

1. To the extent that the following provisions do not contain any deviations, the regulations concerning municipalities with a municipal assembly shall apply.

1. The entirety of eligible voters exercises their rights at the ballot box.

2. The following are elected through the ballot box

a) the members of the residents’ council;

b) the members of the municipal council, the mayor, as well as the vice mayor;

c) * ...

d) the members and substitute members of the tax commission.

1. The following must be submitted to the electorate for decision by ballot

a) Amendment of the municipal code;

b) Resolutions concerning changes in the composition of municipalities;

c) * ...

d) Validly concluded referendum and initiative petitions;

e) Requests for the abolition of the organization with a resident council;

f) Other matters expressly designated by the municipal code.

1. Against all other positive and negative resolutions of the Municipal Council, 5% of the eligible voters can initiate a referendum within 30 days, counting from the date of publication, provided that the Municipal Council does not possess final decision-making authority.

2. The Municipal Council can also independently submit a matter to a ballot vote.

1. Every eligible voter may submit a motion to the President of the Residents' Council concerning matters that fall within the jurisdiction of the entirety of eligible voters or the Residents' Council, either in the form of a general suggestion or a drafted proposal. This motion must be addressed by the Residents' Council within 6 months of submission.

2. A motioner who is not a member of the Residents' Council is entitled to explain the motion before this authority and participate in the discussion.

1. Five percent of the eligible voters may request the treatment of matters that fall within the competence of the entirety of eligible voters or the Municipal Council, either in the form of a general suggestion or a drafted proposal, from the President of the Municipal Council.

1. If the subject of the initiative is subject to a mandatory referendum, a ballot vote must be ordered within one year from the submission of the initiative. In exceptional cases, a request for an extension of the deadline may be submitted to the Department of the Interior.

2. If the initiative request is made in the form of a general proposal and the municipal council agrees to it, a corresponding draft must be prepared and submitted for voting.

3. If the initiative request is submitted as a fully drafted proposal, it must be presented for voting with a recommendation for either acceptance or rejection.

1. If the subject matter of the initiative is subject to an optional referendum, the municipal council may agree to the initiative request. A referendum can be invoked against this decision.

2. If the municipal council rejects the initiative request, it must bring the same to a vote within 6 months from the submission with a motion for dismissal.

1. If an initiative petition is submitted in the form of a draft proposal, the residents' council may prepare a counter-proposal. It must submit this simultaneously with the initiative petition for a vote.

1. Additionally, the municipal code regulates the procedure for the initiative and the referendum.

1. The Municipal Council consists of at least 30 and at most 80 members. The municipal ordinance determines the number of members. This number may not be changed during the term of office.

2. Eligible are all eligible voters with the exception of the members of the Municipal Executive and the municipal clerk.

3. The municipal ordinance may provide for incompatibility between municipal personnel and membership in the Municipal Council.

4. The election is conducted according to the principles for the election of the Grand Council. Establishing a quorum is not permissible. The organization and preliminary procedures of the election are regulated by the Government Council through ordinance.

5. The municipal ordinance may provide for the representation of members of the Municipal Council who are unable to serve for an extended period. The provisions regarding the representation of members of the Grand Council unable to serve for an extended period pursuant to § 7a of the Law on the Organization of the Grand Council and on the Interaction between the Grand Council, the Government Council, and the Judicial Authority (Business Transactions Act, BTA) of June 19, 1990, apply mutatis mutandis.

1. The Residents' Council handles matters subject to mandatory and optional referendums.

2. It makes final decisions on matters delegated to it by the municipal ordinance according to § 18 or the statutes of a municipal association, which do not fall under the jurisdiction according to § 20 para. 2.

3. The final jurisdiction of the Residents' Council also includes decisions that, by their nature, cannot be subjected to a referendum.

4. The Residents' Council elects the members of the electoral office (vote counters and their substitute members).

1. The Residents' Council elects from among its members the President, the Vice President, and two vote counters for a term of 2 years, who together with the recorder form the bureau.

1. The municipal council elects the finance committee, which mainly consists of its members, and, if applicable, an audit committee, as well as their presidents.

2. It can elect advisory committees from among its members.

1. The Municipal Council meets at the invitation of its President

a) * to discuss the budget, the annual accounts with management report, and the loan statements,

b) if the President deems it necessary,

c) * upon the request of 20% of the council members or 5% of the eligible voters, stating the reasons,

d) upon the request of the Municipal Executive Council.

2. The Municipal Council may provide in its rules of procedure that its meetings and those of its bodies may be held virtually or in a hybrid format.

3. The requirements of a crisis situation pursuant to § 26a paragraphs 1 and 2 GVG* equally apply to the virtual or hybrid holding of meetings of the Municipal Council.

4. The virtual or hybrid meetings shall be conducted in a manner and using an information system that ensures the authentication of participants, the protection of processed data, the security of voting, and, if necessary, the confidentiality of the meeting content.

*GVG: This stands for "Gerichtsverfassungsgesetz" or Court Organization Act, which may need to be defined or referenced specifically in its context.

1. The Municipal Council enacts a set of procedural rules.

1. The municipal council prepares the business for the residents' council and submits reports and proposals to it.

2. The members of the municipal council participate in the sessions of the residents' council with an advisory vote. They are entitled to make motions.

1. The Municipal Assembly or Resident Council may decide on temporary experiments for the reorganization of administrative management and organization (pilot projects). The Municipal Council shall inform the Department of the Interior about the experiments.

2. The Government Council may allow exceptions to the provisions of this law insofar as such exceptions are necessary for the experiments.

3. The Municipal Council shall report to the Municipal Assembly or Resident Council at least once a year on the progress and effects of the experiments.

1. The municipal assembly or the municipal council may organize areas of administration according to the principles of performance-oriented administrative management (POAM).

2. If POAM is established as the general principle of administrative management, this must be stipulated in the municipal code.

1. Municipalities are not bound by the budget principles of gross representation and specification when passing resolutions on global budgets.

2. They may carry forward the unclaimed portion of the global budget to the next budget period.

3. Global budgets must meet the following requirements

a) Budgeting by product groups and balance specifications;

b) Performance mandates;

c) Effectiveness or performance measurement through standards and indicators;

d) Controlling.

4. Multi-year global budgets can be established for individual or all product groups.

5. The remaining cantonal regulations, particularly those pertaining to municipal financial budget law, remain reserved.

1. The Municipal Assembly or the Residents' Council are responsible for

a) defining the product groups;

b) setting the effect or performance targets for each product group;

c) determining the validity period of the global budgets;

d) deciding on the balance specifications for each product group;

e) receiving the accountability report on the achievement of the effect and performance targets for each product group.

2. The Municipal Council is responsible for

a) defining the products and setting the associated balance specifications, performance and, if applicable, effect targets, standards, and indicators;

b) allocating the balance specifications and the services to be provided to the product managers;

c) controlling.

3. The allocation of further competencies to the legislative or executive bodies and possible additional instruments of the WOV are to be specified in a regulation, in particular

a) the responsibility for setting the indicators and standards for each product group;

b) the permanent or periodic determination of the budget structure;

c) the establishment of an incentive system;

d) the mandate by which the legislature can issue guidelines to the municipal council within its area of responsibility for planning and future global budgets;

e) the involvement of the legislature in political planning.

1. The Government Council supports voluntary measures by the municipalities for comparing their services and costs.

2. It collaborates with the participating municipalities while respecting their different management models.

1. Municipalities may agree by contract that tasks will be carried out jointly or delegated to one municipality for fulfillment.

2. The government council may mandate the joint handling of administrative tasks if adequate administration is no longer ensured and significant savings and simplifications can be achieved. The affected municipalities must be consulted beforehand.

1. The conclusion of a municipal contract is effected by the acceptance of the contract text by the competent bodies of the contractual parties according to the municipal organization.

2. The contract must contain the information required for the purposeful and appropriate fulfillment of duties.

3. The contract must stipulate the termination and dissolution as well as their consequences.

1. The Municipal Association is a corporation under public law consisting of various municipalities with the purpose of fulfilling one or more tasks.

1. The municipal association is established as a corporation upon the acceptance of the statutes by the associated municipalities and their approval by the governing council.

1. Accession to the municipal association occurs with the adoption of its statutes by the municipal assembly or the residents' council.

2. By resolution of the Grand Council, a municipality may be compelled to join, after being heard, if

a) it appears urgently necessary in its interest, or

b) the purpose of the municipal association cannot otherwise be achieved or can only be achieved with great difficulty.

3. The Grand Council may compel a municipal association to admit a municipality upon its well-founded request.

4. Subsequent accession or accession limited to part of the association's tasks by additional municipalities is possible. It must be brought to the attention of the government council.

1. The Statutes shall include provisions regarding

a) the name, seat, and purpose of the association;

b) the affiliated municipalities;

c) the organization (designation, composition, and competences of the association’s bodies);

d) the procurement of the necessary financial resources;

e) the liability for the association’s obligations;

f) jurisdiction and procedure for amendments to the statutes and the admission of additional municipalities;

g) the right of application and right to information for eligible voters.

2. Furthermore, the statutes may include provisions concerning

a) * ...

b) the issuance of regulations;

c) contributions and fees as well as charges for operations open to public use;

d) a qualified or double majority (majority of votes and municipalities);

e) other matters serving the fulfillment of the association’s purpose.

3. The enactment and amendment of the statutes are subject to the legal oversight of the government council.

**1. Resolutions of the Assembly of Delegates or, if not provided for in the statutes, the Board, shall be submitted to a referendum if**

a) 5% of the eligible voters of the member municipalities or 1,500 eligible voters demand this within 60 days from the date of publication,

b) the municipal councils of 25% of the member municipalities demand this within 60 days from the date of publication,

c) the Assembly of Delegates or, if not provided for in the statutes, the Board resolves to do so.

**2. The statutes may increase the number of signatures required according to paragraph 1 lit. a up to 10% of the eligible voters of the member municipalities, but not more than 3,000 eligible voters.**

**3. The statutes may exclude the optional referendum, with the exception of resolutions concerning the following matters:**

a) budget and accounts,

b) commitment credits,

c) amendments to the statutes,

d) the enactment and amendment of regulations.

1. 5% of the eligible voters of the municipal associations or 1,500 eligible voters, or the municipal councils of 25% of the municipal associations, may demand the consideration of matters falling within the competence of the assembly of delegates or, if not provided for in the statutes, of the board, in the form of a general suggestion or a well-prepared draft.

2. The provisions regarding the right of initiative in municipalities with a citizen’s council apply mutatis mutandis to the procedure.

3. The statutes may increase the number of signatures required according to paragraph 1 up to 10% of the eligible voters of the municipal associations, but not exceeding 3,000 eligible voters.

1. Organs of the Municipal Association are

a) the Assembly of Delegates, if provided for by the statutes;

b) the Board;

c) the Audit Office.

1. The election of the representatives is conducted in the municipalities by the body competent according to municipal regulations. Each municipality is entitled to at least one seat. The term of office corresponds to that of the municipal councils.

2. The proceedings of the representatives' assembly are public. The meetings must be announced in a timely manner in the local publications specifying the matters to be discussed, and the resolutions passed must be published.

3. Budgets, accounts, and accountability reports shall be made publicly accessible at the association or in the municipalities of the association.

1. The Board is the administrative and executive authority of the municipal association with the same term of office as the municipal councils. As a rule, it should include no more than one representative per municipality.

2. The members of the Board are elected by the assembly of delegates, or in the case of municipal associations without an assembly of delegates, by the municipal councils of the member municipalities.

3. The Board's competence extends to all matters that fall within the competence of the municipal association and are not expressly reserved by law or statutes for another organ of the association.

1. Eligible voters of the municipal associations or an external auditing body in accordance with § 3b paragraph 2 can be appointed as the auditing authority.

2. If the auditing authority is composed of eligible voters from the municipal associations, it must consist of at least three members who are neither part of the assembly of delegates nor the executive board. The election of these members is conducted in the same manner as that of the board members. The term of office is equivalent to that of the municipal council members.

3. The auditing authority examines the accounts of the association.

1. The withdrawal of a municipality from the municipal association is only possible for significant reasons. If the competent association body opposes the withdrawal, the Grand Council shall decide in accordance with the rules applicable to the compulsory membership.

2. A municipal association can dissolve if its purpose becomes impossible or obsolete, or if a more suitable legal entity takes its place. The dissolution requires the approval of the majority of the associated municipalities as well as the government council.

3. The details, especially the financial consequences of withdrawal and dissolution and the deadlines to be observed in these cases, are regulated by the statutes. Disputes in this matter are decided by the administrative court.

1. Municipalities may establish inter-municipal independent public-law municipal institutions for the joint fulfillment of their tasks.

2. They additionally regulate the internal liability quotas of the municipalities in the institution's regulations.

3. Subsequent participation of additional municipalities is possible. It must be brought to the attention of the government council.

4. Otherwise, the provisions of §§ 3a-3c also apply to inter-municipal independent public-law municipal institutions.

1. In the case of inter-municipal associations, independent inter-municipal public law institutions, and municipal contracts with a focus in the canton, the participation of municipalities from outside the canton is also possible.

2. The participation of municipalities in out-of-canton municipal associations and out-of-canton independent public law municipal institutions requires the approval of the Cantonal Government.

3. To the extent necessary in inter-cantonal relations, the Cantonal Government shall regulate the status of the inter-cantonal municipal association or the independent public law municipal institution with the other participating cantons.

1. The canton may support initiatives of municipal collaboration of cantonal significance through

a) Training and further education measures;

b) Initiation of municipal collaboration projects;

c) Partial or full assumption of the costs of planning and implementation of self-sustaining collaboration projects;

d) Financial participation in legal entities of public or private law, provided that they have municipal collaboration as their purpose.

2. The decision regarding the support of such initiatives is made by the Cantonal Executive Council within the scope of its financial and budgetary responsibilities; in other cases, the Cantonal Parliament decides.

1. Financial assets include those assets that can be sold without impairing the fulfillment of public tasks.

2. Administrative assets include those assets that serve the fulfillment of public tasks.

1. Revenues are payments from third parties that increase the assets or are intended for the exchange of assets.

2. An expenditure is considered the use of financial assets to fulfill public purposes.

3. An investment is a financial transaction where there is a freely realizable value in return and which only leads to a reallocation within the financial assets.

1. An expenditure is considered new if there is discretion regarding its amount, timing, or other significant circumstances.

2. An expenditure is considered committed if it does not meet the criteria outlined in paragraph 1.

1. The income statement shows the revenues and expenses for the accounting period.

2. Revenue is considered to be the increase in value within a specific period.

3. Expense is considered to be the decrease in value within a specific period.

1. The Investment Accounting includes essential expenditures with a multi-year useful life, which are capitalized as administrative assets, as well as the related revenues, which are recognized as liabilities.

1. Budget management shall be governed by the principles of legality, budget balance, frugality, urgency, economic efficiency, the polluter pays principle, indemnification for benefits, and the prohibition on earmarking taxes for specific purposes.

2. The services provided to fulfill tasks (monetary, material, or services) must be evaluated for effectiveness and economic efficiency. Tasks should be executed with the best cost-benefit ratio.

3. Tasks must be assessed for their necessity and feasibility. New tasks should be approached according to their importance and urgency, taking into account economic, social, and ecological developments.

4. Those causing and benefiting from special services of the municipality shall generally bear the reasonable costs.

5. Special economic advantages derived from public facilities or orders must be compensated.

1. The municipal council shall prepare a task and financial plan for a minimum of four years and update it annually.

2. The task and financial plan shall be publicly accessible. The municipal council is required to present the essential points of the task and financial plan as part of the budget reporting.

1. Prior to the commencement of the fiscal year, the competent body shall prepare the budget according to the principles of annuality, comprehensiveness, gross presentation, and specification, in such a way that, in principle, expenses including interest on liabilities and depreciation are covered by revenue.

1. The budget shall be prepared according to the chart of accounts established by the competent department, using the functional and economic classification.

2. The budget shall include, for comparison, the figures from the preceding budget and the last finalized account, including the statement of income. It shall be accompanied by credit control as well as the item classification. Significant deviations must be justified.

1. The budget is to be submitted to the competent authority for consultation and decision-making. The budget, along with the tax rate, is approved in an overall vote.

2. ...

3. In the event that the budget is not approved by December 31 prior to the budget year, the municipal council is authorized to decide on expenditures essential for administrative activities.

1. The Budget Contains

a) the approved expenses and estimated revenues in the profit and loss statement,

b) the approved expenditures and estimated revenues in the investment account,

c) annual tranches of the approved commitment credits.

1. The principles of the budget apply mutatis mutandis to the annual financial statement.

1. The municipal council submits the annual accounts to the competent body for approval each year.

1. The annual financial statement contains the following elements

a) Balance sheet,

b) Income statement,

c) Capital expenditure statement,

d) Cash flow statement,

e) Notes.

2. The balance sheet must be structured according to the chart of accounts established by the competent department.

3. The competent authority must also be provided with the figures from the balance sheet, the income statement, and the capital expenditure statement of the previous year, as well as the budget for the fiscal year for comparison. Significant deviations must be explained.

1. Approval of the invoice must not be associated with any expenditure resolutions.

1. The annual financial statements and credit accounts, along with all reports from the municipal council and auditing bodies, must be made publicly available for inspection for 14 days and submitted to the decision-making body by June 30th.

2. The following must also be included for inspection

a) Income statement and balance sheet, including account sheets and subsidiary accounts,

b) Booking and financial documents,

c) Appendix to the annual financial statements,

d) Fixed asset accounting,

e) Tax accounting,

f) Accounts receivable and accounts payable accounting,

g) Payroll accounting.

1. The rejected annual financial statement or credit account must be reviewed again by the municipal council and the financial commission within 60 days and submitted with recommendations to the organ responsible for decision-making. The competent department may extend the deadline upon a justified request.

2. In the event of a repeated rejection of the annual financial statement or credit account, it must be submitted to the government council for a decision.

3. The provisions according to paragraphs 1 and 2 apply mutatis mutandis also to the budget and the tax rate.

1. The cumulative result of the income statement shall be balanced in the medium term.

2. If the balance sheet shows a balance sheet deficit, it must be reduced annually by at least 30% of the residual book value; the corresponding amounts are to be taken into account in the budget.

1. The municipalities disclose key figures in the budget and the annual accounts regarding indebtedness, debt service, self-financing, and investments.

2. The competent department determines the details of the calculations.

1. A credit is the authorization to incur financial obligations up to a certain amount for a specific purpose.

2. Credits must be

a) obtained before entering into new obligations,

b) used for the purposes for which they were granted.

1. A budget credit grants the municipal council the authority to enter into commitments and the approval to charge the income and investment accounts for the specified purpose up to the established amount within the budget year.

2. The budget may also authorize credits for investments and investment contributions, provided they can be settled within the same fiscal year.

1. If it becomes apparent that a budget credit is insufficient, a supplementary credit must be requested. Minor credit overruns are excluded from this requirement.

2. A supplementary credit is not required for tied expenditures, for annual installments of commitment credits, or for expenditures that are offset by related income in the same fiscal year.

1. If an expenditure for which no budget or no sufficient credit has been approved cannot be deferred, the municipal council may execute it.

2. The finance commission is to be informed about the urgent expenditures.

1. Unclaimed budget and supplementary credits expire at the end of the fiscal year.

1. The commitment credit establishes the maximum amount up to which the municipal council is authorized to incur financial obligations for specific projects.

2. Commitment credits are particularly required for

a) significant investments and new, annually recurring expenses,

b) one-time substantial contributions to third parties,

c) expenses that extend over multiple fiscal years or those that become due in later fiscal years.

1. Obligation Credits Must Be Decided Gross. Financing and Subsequent Costs Must Be Outlined in the Considerations to the Resolution.

1. An obligation credit must be settled immediately after the completion of the project. If the accounting transactions are processed within a fiscal year, it is not necessary to prepare a credit settlement.

2. An obligation credit expires if the purpose is achieved, abandoned, or if the project has not begun within five years.

1. If it becomes evident before or during the execution of a project that the designated commitment credit is insufficient, an additional credit must be obtained before entering into new commitments. If obtaining this is not possible without significant adverse consequences for the municipality, the municipal council shall approve the additional credit and inform the finance commission thereof.

2. With the approval of the credit statement, any additional expenditures will be authorized.

1. The financial reporting provides a clear, complete, and truthful overview of budget management, assets, and liabilities.

2. It adheres to the principles of gross presentation, accrual accounting, materiality, and comparability.

1. Assets in financial assets are recognized on the balance sheet if they yield future economic benefits.

2. Assets in administrative assets are recognized on the balance sheet if they provide a multi-year public benefit.

3. Liabilities are recognized on the balance sheet if fulfilling them is likely to result in an outflow of resources.

4. Provisions are recognized for existing obligations where the timing of fulfillment or the amount of the future outflow of resources is uncertain.

1. Liabilities are valued at nominal value.

2. Financial assets are initially recorded in the balance sheet at acquisition cost. If no costs arise, they are recorded at market value at the time of entry.

3. Subsequent valuations are conducted at market value on the balance sheet date, with a systematic revaluation of financial investments annually, and real estate within financial assets every four years at the beginning of the term of office. Any valuation adjustments must be recorded affecting profit or loss.

4. If a permanent impairment occurs in a position of financial assets, its recorded value is adjusted affecting profit or loss.

1. Real and personal property within the administrative assets, as well as loans and investments, are recorded at acquisition cost upon initial recognition.

2. Assets of the administrative property that are subject to depreciation through use are depreciated linearly according to the assumed useful life for each asset category.

3. Depreciation beyond the linear method as outlined in paragraph 2 is not permitted.

4. If a permanent impairment occurs in any item of the administrative assets, its book value is adjusted in the income statement.

1. Each independent public-law corporation of municipal law maintains its own accounts. The bookkeeping is conducted in accordance with the aforementioned provisions.

1. Municipal associations, independent public-law municipal institutions, and private-law organizations in which the municipality has full or partial participation are generally not to be consolidated. A report on participations and guarantees must be maintained.

1bis. The government council may, by regulation, prescribe a consolidation obligation and method for municipal associations, independent public-law municipal institutions, and private-law organizations in deviation from paragraph 1, insofar as the participating municipalities outsource to these entities tasks that are financed with public funds.

2. The accounts of dependent public-law municipal institutions must be maintained in the municipal accounts as special financing.

1. Special financing exists when funds are allocated for designated public tasks. The establishment of special financing requires a resolution by the municipal assembly or the citizens' council.

2. The expenses and revenues of the special financing are recorded in the income statement, while capital expenditures and capital income are recorded in the capital statement.

1. The accounting shall adhere to the following principles

a) complete, truthful, and systematic recording of all transactions and facts,

b) documentary evidence for each accounting entry,

c) clarity,

d) verifiability.

2. Accounting documents include all written records on paper or in electronic or similar form, which are necessary to trace the transaction or fact underlying an accounting entry.

1. The municipality shall take the necessary measures to protect assets, ensure the appropriate use of funds, prevent or detect errors and irregularities in accounting, and guarantee the proper maintenance of financial records and reliable reporting.

1. The competent department prepares a municipal finance statistic annually.

1. The competent department shall be provided annually with the following documents in electronic form, according to its temporal and substantive specifications

a) * the budget and accounting data as well as the task and financial planning of the municipal communities,

b) * the accounting data of the local citizen communities, municipal associations, and independent public-law municipal institutions,

c) * the reports of the audit bodies.

2. The government council shall, by regulation, designate the further audit reports that may be required from the municipality.

1. The municipal council is responsible for the financial management of the municipality.

2. It is specifically responsible for

a) * ...

b) the leasing and renting of municipal property,

c) the regulation of internal control and authorization of signatures,

d) the conclusion of required insurance policies for authorities, employees, and the municipality,

e) * the storage and archiving of the budget, accounts, receipts, books, and other financial documents,

f) * the periodic conduct of unannounced audits of individuals who manage funds.

3. The municipal council and the head of finance confirm to the finance commission at the time of the approval of the annual accounts that

a) all transactions that require recording are included in the present annual accounts,

b) all assets, liabilities, receivables, and debts are included in the balance sheet,

c) all contingent liabilities, guarantees, and shareholdings are listed in the notes to the annual accounts,

d) all information necessary for understanding the annual results is contained in the explanatory notes to the accounts.

4. The municipal council may, on its own initiative or at the request of the finance commission, decide to appoint special audit firms or experts to review the accounts both formally and materially. These may also be used for ongoing control tasks.

5. The municipal council may delegate the conduct of unannounced audits of individuals who manage funds to the finance commission.

1. The financial budget shall be managed by a qualified Director of Finance.

2. The Director of Finance is responsible for

a) the correct and timely execution of expenditures and revenues as well as expenses and income,

b) the proper management of the financial budget in all its parts,

c) the secure custody of funds and the timely filing of accounts,

d) controls and statistics.

1. The Finance Commission examines the accounts and may request information from the Municipal Council regarding the completion of specific administrative tasks and the handling of individual loans as well as access to the relevant non-confidential records. In doing so, it takes into consideration the results of the audit as per paragraph 2.

2. The Municipal Council has the balance sheet audited annually by an external auditing body. This body submits its written report simultaneously to the Finance Commission and the Municipal Council.

1. The Competent Department

a) executes the state supervision over municipal budgets,

b) prepares the account plans according to the specifications of the account framework of the Harmonized Accounting Model 2,

c) examines budgets and annual accounts as well as task and financial planning,

d) orders the necessary measures in cases of deficient and improper budgets and accounts, as well as in cases where there are indications, based on the budget and task and financial planning, that compliance with financing regulations may not be ensured in subsequent years,

e) conducts the necessary education and training courses in collaboration with the competent professional organizations,

f) advises municipal entities in all matters of finance and accounting,

g) issues the necessary directives for an orderly accounting system.

2. All budgets and accounts of the entities subject to state supervision must be made available to the competent department after approval by the responsible bodies.

1. The government council issues the necessary implementation provisions by ordinance. It particularly regulates

a) the content of task and financial planning,

b) * the details regarding the elements of the annual financial statements pursuant to § 88c paragraph 1 and the credit law,

c) the determination of the principle for the allocation of taxes,

d) the definition of the concept of investment and the indicators,

e) the booking of net investments and third-party contributions,

f) the materiality thresholds for the capitalization of investments and the formation of provisions, graduated according to the size of the municipality,

g) * valuation methods and depreciation rates,

h) permissible investments by municipalities,

i) the establishment of deadlines in connection with the financial statements,

k) the retention obligations,

l) the criteria for the certification of the financial accounting software used by the municipalities,

m) the details of the balance sheet audit and the requirements for external auditing bodies.

1. To the extent that the following provisions do not contain deviations, the regulations concerning the financial budget shall apply mutatis mutandis to municipal communities, municipal associations, and independent public-law municipal institutions.

2. Upon request, the competent department may permit municipal communities, municipal associations, or independent public-law municipal institutions to deviate from these regulations if

a) their accounting is governed by federal or inter-cantonal standards or by mandatory provisions of an industry organization, or

b) the total expense of the income statement and the expenditures of the investment account do not exceed CHF 100,000 in an accounting year.

1. The municipal associations grant, usually simultaneously with the approval of the statutes, the corresponding commitment credits for the investment contributions or the refinancing.

1. If the association does not possess the relevant financial competencies according to its statutes, the member municipalities must be invited in a timely manner to approve commitment credits.

2. If the statutes do not contain any differing provisions, the same distribution key applies as for the initial investment.

3. If a member municipality refuses the requested commitment credit, the board shall reassess the project and submit the new proposal to the dissenting municipality, and if necessary, to all member municipalities.

4. If the commitment credit is not approved by all member municipalities for the second time, the government council shall decide, at the board's request, if the conditions for compulsory membership are met.

1. The expenses for administration and operation can be covered in particular by

a) contributions from the associated municipalities,

b) fees for the use of facilities and amenities,

c) charges for operations that are open for use by the public,

d) donations and other contributions.

2. The statutes shall establish the decisive criteria for determining the contributions of the associated municipalities and the fees.

3. For the use of facilities and amenities, the association may establish special conditions for non-associated municipalities.

1. The municipalities, municipal associations, and other public law bodies shall independently regulate and administer their affairs, subject to the supervision of the state within the framework of the constitution and the laws.

2. The supervisory authorities are the governmental council and the departments.

1. The supervisory authorities ensure that the entire administration of the public corporations under state supervision is conducted in accordance with the regulations.

2. ...

1. If unlawful conditions are identified in the administration or financial management of a corporation subject to state supervision, the competent department must inform the government council without delay.

2. The government council shall investigate the matter, after hearing from the responsible authorities, and shall set an appropriate deadline for rectifying proven deficiencies. In cases of non-compliance, the government council shall order substitute performance and, in urgent cases, provisional measures.

3. The government council shall decide on the allocation of costs.

1. The Executive Council may caution members of authorities who disregard directives from supervisory bodies, dismiss them in cases of serious neglect of duty, and suspend them during criminal investigations for a serious offense or felony committed in office.

1. Corporations that persistently refuse to comply with the orders of supervisory authorities in significant matters, or for other reasons, particularly due to the impossibility of appointing authorities or fulfilling financial obligations, are no longer able to ensure lawful and orderly management, may have their self-governance partially or completely revoked by the Government Council for as long as it is required by the interests of the state and the supervised corporation.

2. The Government Council appoints one or more administrators for such a corporation.

3. The regulations concerning the personnel of the canton and their liability apply to the administrators. They are compensated by the corporation they manage. The Government Council determines the compensation.

1. Decisions of the bodies of municipalities, municipal associations, as well as independent public-law municipal institutions and intermunicipal municipal institutions may be contested with an administrative appeal within 30 days from the date of notification.

2. The provisions of the Administrative Justice Act apply, particularly regarding standing, the appeal brief, and grounds for appeal.

1. Generally binding decrees issued by municipalities, municipal associations, and other public-law entities, as well as administrative acts that do not interfere with personal circumstances, can be challenged through a municipal complaint within 10 days of publication.

2. The municipal complaint is only admissible in the event of procedural legal violations, provided no other legal remedy is available.

1. The following are entitled to file a complaint

a) In relation to decrees and administrative acts by municipalities and municipal associations, the eligible voters of the respective municipalities;

b) In relation to decrees and administrative acts of other corporate bodies, their members.

2. The municipal council of an affiliated municipality may also file a complaint regarding decrees of the organs of municipal associations.

3. The provisions of the Law on Administrative Jurisdiction are applicable to municipal complaints insofar as this is compatible with their specific nature.

4. The special provisions of the said law apply to complaints against elections and votes conducted according to the provisions of the Law on Elections and Voting[12].

1. The government council is responsible for evaluating administrative complaints and municipal complaints, unless jurisdiction is assigned to another authority by law.

2. The municipal council is also entitled to appeal municipal complaints.

3. ...

1. Provisions of an administrative law nature in ordinances issued by municipalities, municipal associations, and other public law entities can, in accordance with the provisions of the Administrative Procedure Act, be submitted to the Administrative Court at any time for examination of their constitutionality and legality.

1. Objection to a penal order can be lodged with the municipal council in writing within 20 days, excluding an administrative appeal. This will result in the annulment of the penal order.

2. The objector must be summoned to a hearing before the municipal council or a member designated by it. The municipal council will make a reasoned decision.

3. The penal decision can be appealed to the president of the district court as a sole judge within 20 days of its issuance. This decision can be further contested in the higher court.

4. Otherwise, the provisions of the Swiss Criminal Code and the Swiss and cantonal criminal procedure laws apply.

1. This law shall be enacted by the government council upon acceptance by the populace.

2. Existing municipal associations as well as other entities pursuing the purposes of such associations at the time of enactment shall adjust their organization to the provisions of this law within 4 years.

3. The adaptation of the existing municipal regulations of municipalities with a residents' council must occur within 2 years.

1. Upon the enactment of this law, all decrees and provisions that contradict it are repealed, particularly

a) the Law on the Organization of Municipalities and Municipal Councils of November 26, 1841[13], subject to its partial continued applicability to local municipalities in accordance with Paragraph 2;

b) the Law on the Extraordinary Municipal Organization of May 15, 1962[14];

c) the Law on the Use of Municipal Assets of November 30, 1866[15];

d) § 25 of the Law on the Establishment of District Offices of March 16, 1854[16];

e) § 10 Para. 1 lit. b Nos. 1-4 and Para. 2, § 18 Para. 2, § 35 (version pursuant to the Amendment Law of October 25, 1966), § 36 Para. 1 of the Law on Elections and Voting of September 6, 1937[17];

f) § 2 of the Law on the Adaptation of Legislation on Elections and Voting and on the Extraordinary Municipal Organization to Women's Suffrage of March 23, 1971[18];

g) § 11 Paras. 3 and 4 of the Law on Public Health of November 28, 1919[19] as well as § 16 of the Enforcement Ordinance of February 26, 1946, to the said law[20];

h) § 29 Para. 2, § 70 Nos. 1 lit. a and e, Nos. 2-4, and § 71 of the Law on Poor Relief of March 12, 1936[21];

i) the Enforcement Ordinance of September 10, 1964, to the Law on the Extraordinary Municipal Organization[22];

k) the Enforcement Ordinance of December 22, 1966, to § 35 of the Law on Elections and Voting[23].

2. If a law concerning local municipalities submitted for a public referendum under this law is not accepted, §§ 22 and 26-36 of the Law on the Organization of Municipalities and Municipal Councils of November 26, 1841, shall continue to apply to local municipalities, and the provisions of the present law regarding municipal councils, financial management, and oversight shall apply mutatis mutandis.[24]

1. The Federal Act on the Amendment of the Swiss Civil Code of March 27, 1911 is amended as follows

*Text inserted in the relevant enactment.*

1. The Citizenship Act of October 29, 1940, is amended as follows

*Text inserted in the relevant decree.*

1. The provisions of this Act concerning municipal council criminal proceedings apply to all criminal offenses assigned to the municipal council for resolution. Conflicting provisions of other laws are repealed.

1. The Financial Equalization Act of June 29, 1983, is amended as follows

*Text inserted in the relevant decree.*

1. The administrative and financial assets shall be valued upon the entry into force of the partial revision of May 8, 2012, according to the rules of the revised provisions.

2. The administrative assets shall be recorded at the value they would have if they had been systematically depreciated in accordance with the provisions of this law since their creation.

3. Valuation differences of financial assets and administrative assets shall be recorded in equity as a revaluation reserve or as an appreciation reserve, respectively. The revaluation reserve must be dissolved by the end of the first fiscal year.

4. When transitioning to the new accounting model, the comparative figures for the budget and accounts shall be prepared according to the guidelines of the competent department.

5. Municipalities that do not meet the minimum capitalization requirements pursuant to § 88h at the time of entry into force may, upon request, be granted by the governing council a reduction in the limit set in the ordinance for a maximum period of five years.

1. The execution of this law is the responsibility of the Executive Council. It issues the necessary regulations.

1. Section 8a Paragraph 2 applies to municipal mergers that come into effect on January 1, 2012, or later.

2. Section 8b applies to municipal mergers that come into effect on January 1, 2012, or later.

1. Affected municipal citizens may, within two years after the amendment comes into effect, apply to the competent Regional Civil Registry Office for a fee to have their previous municipal citizenship, which has been replaced due to a municipal merger, reallocation, or formation of a new municipality, added in parentheses to the current municipal citizenship. This is applicable if the municipal merger, reallocation, or formation of a new municipality came into effect on January 1, 2002, or later.