Lietuviškai
						Case No. 10/02

           THE CONSTITUTIONAL COURT OF THE REPUBLIC OF           
                            LITHUANIA                            

                             RULING                              
     ON  THE  COMPLIANCE OF THE REPUBLIC OF LITHUANIA LAW "ON THE
PROCEDURE  OF  REORGANISATION  AND  LIQUIDATION OF ESTABLISHMENTS
OF  CULTURE"  (WORDING  OF 13 JUNE 1995) AND ITEMS 1, 2.3 AND 2.4
OF  GOVERNMENT  OF  THE REPUBLIC OF LITHUANIA RESOLUTION NO. 1320
"ON  THE  HOUSE  OF  SIGNATORIES  TO  THE  ACT OF INDEPENDENCE OF
LITHUANIA  AND  THE HOUSE OF ARTISTS OF LITHUANIA" OF 28 NOVEMBER
1997 WITH THE CONSTITUTION OF THE REPUBLIC OF LITHUANIA

                           8 July 2005                           
                             Vilnius                             

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Justices  of  the Constitutional Court Armanas
Abramavičius,   Toma   Birmontienė,   Egidijus   Kūris,  Kęstutis
Lapinskas,   Zenonas   Namavičius,   Ramutė   Ruškytė,   Vytautas
Sinkevičius, Stasys Stačiokas, and Romualdas Kęstutis Urbaitis,
     with the secretary of the hearing-Daiva Pitrėnaitė,
     in the presence of:
     the   representative  of  the  Seimas  of  the  Republic  of
Lithuania,  the  party  concerned, who was Marytė Bagdonavičienė,
the  chief  expert  at  the Legal Department of the Office of the
Seimas,
     the  representative  of  the  Government  of the Republic of
Lithuania,  the  party  concerned,  who  was  Sigutė Pučienė, the
Head  of  Law  and  Personnel Division at the Ministry of Culture
of the Republic of Lithuania,
     pursuant  to  Articles  102  and  105 of the Constitution of
the  Republic  of  Lithuania,  as well as Article 1 of the Law on
the  Constitutional  Court  of  the  Republic  of Lithuania, on 7
June  2005  in  its  public  hearing  heard  Case No. 10/02 which
originated  in  a petition of the Vilnius Regional Administrative
Court,  the  petitioner,  requesting to investigate as to whether
the   Republic   of   Lithuania   Law   "On   the   Procedure  of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13  June  1995) is not in conflict with Paragraph 2
of   Article   120   of  the  Constitution  of  the  Republic  of
Lithuania,  Paragraph  1  of  Article  3,  Paragraphs  2 and 5 of
Article  4,  and Paragraph 1 of Article 6 of the European Charter
of  Local  Self-Government,  as  well  as  whether  Item  2.4  of
Government  of  the Republic of Lithuania Resolution No. 1320 "On
the   House   of  Signatories  to  the  Act  of  Independence  of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  is  not  in conflict with Paragraph 2 of Article 120 of the
Constitution  of  the  Republic  of  Lithuania,  Paragraph  1  of
Article  3,  Paragraphs  2 and 5 of Article 4, and Paragraph 1 of
Article  6  of  the European Charter of Local Self-Government, as
well  as  Item  4  of  Paragraph  1  of  Article 4 and Item 13 of
Paragraph  1  of  Article  6  of the Republic of Lithuania Law on
Local Self-Government.

     The Constitutional Court
                        has established:                         

                                I                                
     1.  On  28  October 1993, the Seimas adopted the Republic of
Lithuania   Law   "On   the   Procedure   of  Reorganisation  and
Liquidation  of  Establishments  of  Culture"  (Official  Gazette
Valstybės žinios, 1993, No. 59-1143).
     On  13  June  1995,  the  Seimas  adopted  the  Republic  of
Lithuania  Law  "On  Amending  the  Republic of Lithuania Law 'On
the    Procedure    of    Reorganisation   and   Liquidation   of
Establishments  of  Culture'" (Official Gazette Valstybės žinios,
1995, No. 53-1302).
     2.  On  28  November 1997, the Government adopted Resolution
No.   1320   "On   the   House  of  Signatories  to  the  Act  of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"   (Official   Gazette   Valstybės  žinios,  1997,  No.
111-2807).
     3.   The   Vilnius   Regional   Administrative   Court,  the
petitioner,  requests  to  investigate  as to whether the Law "On
the    Procedure    of    Reorganisation   and   Liquidation   of
Establishments  of  Culture"  (wording of 13 June 1995) is not in
conflict  with  Paragraph  2  of Article 120 of the Constitution,
Paragraph  1  of  Article 3, Paragraphs 2 and 5 of Article 4, and
Paragraph  1  of  Article  6  of  the  European  Charter of Local
Self-Government,  as  well  as  whether  Item  2.4  of Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"   of   28  November  1997  is  not  in  conflict  with
Paragraph  2  of  Article 120 of the Constitution, Paragraph 1 of
Article  3,  Paragraphs  2 and 5 of Article 4, and Paragraph 1 of
Article  6  of  the European Charter of Local Self-Government, as
well  as  Item  4  of  Paragraph  1  of  Article 4 and Item 13 of
Paragraph 1 of Article 6 of the Law on Local Self-Government.

                               II                                
     The  petition  of  the  petitioner is based on the following
arguments.
     It   was  established  in  the  Law  "On  the  Procedure  of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13  June  1995) that establishments of culture that
belong  to  the sphere of regulation of municipal councils may be
reorganised  or  liquidated  only upon receipt of written consent
by the Ministry of Culture of the Republic of Lithuania.
     By  Item  1  of Government Resolution No. 1320 "On the House
of  Signatories  to  the Act of Independence of Lithuania and the
House  of  Artists of Lithuania" of 28 November 1997 the Ministry
of  Culture  was  obligated  to  transfer, by 1 January 1998, the
functions  of  founder  of  the  House of Artists of Lithuania to
the   Vilnius   City  Municipality,  and  by  Item  2.4  of  this
resolution  the  Vilnius  City Municipality was commissioned with
the  task,  while  discharging  the  functions  of founder of the
House  of  Artists of Lithuania, not to change the purpose of the
House,  type  of  its  activity  and  its status, and to document
this  in  a  trilateral  agreement  on  cooperation  between  the
Vilnius  City  Board,  the  Ministry  of Culture and the House of
Artists of Lithuania.
     It  is  established  in Article 120 of the Constitution that
the   state   shall   support   municipalities   (Paragraph   1);
municipalities  shall  act  freely and independently within their
competence,  which  shall  be established by the Constitution and
laws (Paragraph 2).
     According  to  Item  4  (wording  of  12  October  2000)  of
Paragraph  1  of  Article  4 of the Law on Local Self-Government,
one  of  the  principles  on which local self-government is based
is  freedom  and  independence  of  the  activities  of municipal
institutions  when  they,  while  implementing  laws, other legal
acts  and  obligations  to  the  community,  adopt  decisions. In
Article  6  of  the  Law on Local Self-Government one established
independent  functions  of municipalities and in Item 13 (wording
of   12  October  2000)  of  Paragraph  1  of  this  article  one
established   that  they  are  assigned  with  other  independent
functions that are not assigned to state institutions.
     In  Paragraph  1  of  Article  3  of the European Charter of
Local  Self-Government  local  self-government  is defined as the
right  and  the  ability  of local authorities, within the limits
of  the  law,  to  regulate  and  manage  a  substantial share of
public   affairs  under  their  own  responsibility  and  in  the
interests  of  the  local  population. Pursuant to Paragraph 2 of
Article  4  of  the  aforementioned  charter,  local  authorities
shall,  within  the  limits  of  the law, have full discretion to
exercise  their  initiative  with  regard  to any matter which is
not  excluded  from  their  competence  nor assigned to any other
authority;  it  is  established  in  Paragraph  5  of  Article  4
thereof  that  where powers are delegated to them by a central or
regional   authority,   local   authorities   shall,  insofar  as
possible,  be  allowed  discretion  in adapting their exercise to
local  conditions.  In  Paragraph  1 of Article 6 of the European
Charter  of  Local  Self-Government local authorities are granted
the   right   to   determine  independently  their  own  internal
administrative  structures  in order to adapt them to local needs
and ensure effective possession.

                               III                               
     In  the  course  of  the  preparation  of  the  case for the
Constitutional   Court   hearing,  written  explanations  of  the
representative  of  the  Seimas,  the party concerned, who was E.
Mušinskis,  a  senior  consultant  at the Legal Department of the
Office  of  the  Seimas,  the  representative  of the Seimas, the
party  concerned,  M.  Bagdonavičienė,  and the representative of
the Government, the party concerned, who was S. Pučienė.
     1.  E.  Mušinskis  and  M.  Bagdonavičienė  state  that  the
principle  of  co-ordination  of  interests of municipalities and
the   state   is   consolidated   in   the  Constitution.  It  is
consolidated  in  Article  4  of the Law on Local Self-Government
as well.
     According  to  the  representatives  of the party concerned,
the   Seimas,   in   Lithuania   the   model   of  administrative
supervision  over  activity  of  municipalities  has  been formed
where  municipalities  are  supervised  by the executive power of
the  state.  In  Paragraph  2  of Article 123 of the Constitution
one    has   entrenched   the   institute   of   supervision   of
administrative   activity   of   municipalities.  The  legislator
enjoys  the  right  to  establish  various  legal  means by which
institutions  of  central  power  are  empowered to supervise the
activity  of  municipal  institutions. The representatives of the
party  concerned,  the Seimas, believe that the duty, established
in  the  disputed  law, of municipal councils to obtain a written
consent  of  the Ministry of Culture concerning reorganisation or
liquidation  of  establishments  of  culture  that  belong to the
sphere  of  regulation  by  municipalities is one of the forms of
implementation  of  the  principle  of co-ordination of interests
of the state and municipalities.
     Alongside,  the  representatives of the party concerned, the
Seimas,  note  that  the  provision of Paragraph 2 of Article 120
of  the  Constitution  that  municipalities  shall act freely and
independently  is  linked to the provision of this paragraph that
municipalities  shall  act  freely and independently within their
competence,  which  shall  be established by the Constitution and
laws.  E.  Mušinskis  and  M.  Bagdonavičienė  indicate  that  an
analogous  provision  is consolidated in Paragraph 1 of Article 3
and  Paragraph  2  of  Article 4 of the European Charter of Local
Self-Government as well.
     According   to  E.  Mušinskis  and  M.  Bagdonavičienė,  the
Ministry   of   Culture   within   its  competence  performs  the
functions  of  state  administration in the area of culture which
is  assigned  to  it by laws and other legal acts, and implements
state  policy  in  this  sphere. According to the representatives
of  the  Seimas,  institutions  of  the executive which implement
the  established  state policy in any area in the whole territory
of   the   state,  should  have  a  possibility  to  control  and
coordinate  the  execution  of  provisions  of this policy in the
whole  territory  of  the  state,  thus  in all municipalities as
well.  Coordination  of relations between the Ministry of Culture
and   municipal   councils   when   reorganising  or  liquidating
municipal  establishments  of  culture  is an important condition
of   even   and  efficient  implementation  of  state  policy  of
culture,  while  taking  account of social and cultural situation
in  the  territory  of each municipality, cultural needs of local
community, capabilities of the state and other conditions.
     In   the   opinion  of  the  representatives  of  the  party
concerned,  the  Seimas,  by  the  disputed  regulation  which is
established  in  the  law one does not revoke the actual right of
municipalities  to  reorganise or liquidate the establishments of
culture:  the  entrenched  therein  duty of municipal councils to
obtain  written  consent  of  the  Ministry  of  Culture is to be
considered  not  a limitation of the right of municipal councils,
related  to  reorganisation  or  liquidation of establishments of
culture   that   were   established   by   them,   but  rather  a
co-ordination  of  joint  actions of the state and municipalities
when  striving  for  the  social objectives that are important to
the  state.  According  to  the representative of the Seimas, the
party  concerned,  the  provisions  of  the  disputed  law do not
limit  the  competence  of  municipalities  which  is  set in the
Constitution  and  which  comprises  also  the right of municipal
councils  to  reorganise or liquidate municipal establishments of
culture  and  do  not  deny the guarantees of judicial defence of
municipal   rights,   as   pursuant   to   Article   122  of  the
Constitution  municipal  councils  have the right to apply at any
moment  to  court  regarding  the  violation of their rights upon
the procedure established in laws.
     Therefore  the  representatives  of the party concerned, the
Seimas,  believe  that  the  duty of municipal councils, which is
established  in  the  disputed  law, to obtain written consent of
the    Ministry   of   Culture   concerning   reorganisation   or
liquidation  of  establishments  of  culture  that  belong to the
sphere  of  regulation  by municipalities is not in conflict with
Paragraph 2 of Article 120 of the Constitution.
     2.  S.  Pučienė,  the  representative of the Government, the
party  concerned,  states  that  in  the Law "On the Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
that  was  effective  till  26  October  2004 one established the
procedure  of  reorganisation or liquidation of establishments of
culture,  but  did  not  deprive  municipal  institutions  of the
right to reorganise or liquidate establishments of culture.
     S.  Pučienė  pointed  out that the Vilnius City Municipality
decided  to  liquidate  the  House  of  Artists  of  Lithuania, a
budgetary  establishment,  without  addressing  the  Ministry  of
Culture  concerning  this  issue.  However,  in her opinion, this
does  not  mean that Government Resolution No. 1320 "On the House
of  Signatories  to  the Act of Independence of Lithuania and the
House  of  Artists  of  Lithuania"  of  28  November  1997  is in
conflict  with  Paragraph  2  of Article 120 of the Constitution,
Paragraph  1  of  Article 3, Paragraphs 2 and 5 of Article 4, and
Paragraph  1  of  Article  6  of  the  European  Charter of Local
Self-Government,  as  well  as Item 4 of Paragraph 1 of Article 4
and  Item  13  of  Paragraph  1  of Article 6 of the Law on Local
Self-Government.

                               IV                                
     In  the  course  of  the  preparation  of  the  case for the
Constitutional   Court   hearing,   written  explanations  of  R.
Dovydėnienė,   the   Minister  of  Culture  of  the  Republic  of
Lithuania,  A.  Zuokas,  Mayor  of the Vilnius City Municipality,
Assoc.  Prof.  Dr.  E.  Šileikis  who works at the Constitutional
and  Administrative  Law  Department  of  the  Faculty  of Law of
Vilnius  University,  Dr.  A. Gazarian, Director of the Centre of
Investigation  of  Self-Government  Problems, and S. Šiupšinskas,
Director  of  the  Lithuanian Association of Municipalities, were
received.

                                V                                
     At  the  Constitutional  Court hearing the representative of
the  Seimas,  the  party concerned, who was M. Bagdonavičienė and
the  representative  of  the Government, the party concerned, who
was  S.  Pučienė, virtually reiterated the arguments set forth in
their    written    explanations    and    submitted   additional
explanations.
     At  the  Constitutional  Court  hearing  the  witnesses, who
were  V.  Klimantavičius,  the  Director of Administration of the
Vilnius  City  Municipality,  and  J.  Elzbergas, Director of Law
and  Personnel  Department of the Vilnius City Municipality, were
questioned.

     The Constitutional Court
                           holds that:                           

                               I                                
     1.   The   Vilnius   Regional   Administrative   Court,  the
petitioner,  requests  to  investigate  as to whether the Law "On
the    Procedure    of    Reorganisation   and   Liquidation   of
Establishments  of  Culture"  (wording of 13 June 1995) is not in
conflict  with  Paragraph  2  of Article 120 of the Constitution,
Paragraph  1  of  Article 3, Paragraphs 2 and 5 of Article 4, and
Paragraph  1  of  Article  6  of  the  European  Charter of Local
Self-Government,  as  well  as  whether  Item  2.4  of Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"   of   28  November  1997  is  not  in  conflict  with
Paragraph  2  of  Article 120 of the Constitution, Paragraph 1 of
Article  3,  Paragraphs  2 and 5 of Article 4, and Paragraph 1 of
Article  6  of  the European Charter of Local Self-Government, as
well  as  Item  4  of  Paragraph  1  of  Article 4 and Item 13 of
Paragraph 1 of Article 6 of the Law on Local Self-Government.
     2.  On  15  October  1985, the Council of Europe adopted the
European  Charter  of  Local Self-Government; it became effective
on  1  September  1988.  The  Seimas  ratified  this  charter  by
Article  1  of  the Republic of Lithuania Law "On Ratification of
the  European  Charter of Local Self-Government" that was adopted
on 25 May 1999.
     In  its  decision of 25 April 2002, the Constitutional Court
held  that  pursuant to the Constitution the Constitutional Court
does  not  investigate  the  compliance of a law with a legal act
which  has  the  power  of  the  law, and it decided to refuse to
investigate  the  petition of the Vilnius Regional Administrative
Court  wherein  in  requests  to  investigate whether the Law "On
the    Procedure    of    Reorganisation   and   Liquidation   of
Establishments  of  Culture" (wording of 13 June 1995) was not in
conflict  with  Paragraph  1  of Article 3, Paragraphs 2 and 5 of
Article  4,  and Paragraph 1 of Article 6 of the European Charter
of  Local  Self-Government.  By  the  aforementioned decision the
Constitutional  Court  decided  to  accept  for investigation the
petition  of  the  Vilnius  Regional Administrative Court wherein
in  requests  to investigate whether the Law "On the Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13  June 1995) was not in conflict with Paragraph 2
of  Article  120  of  the  Constitution,  and whether Item 2.4 of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of  28  November  1997  was  not in conflict with
Paragraph  2  of  Article 120 of the Constitution, Paragraph 1 of
Article  3,  Paragraphs  2 and 5 of Article 4, and Paragraph 1 of
Article  6  of  the European Charter of Local Self-Government, as
well  as  Item  4  of  Paragraph  1  of  Article 4 and Item 13 of
Paragraph 1 of Article 6 of the Law on Local Self-Government.
     3.  The  petitioner  requests  to  investigate as to whether
the  Law  "On  the Procedure of Reorganisation and Liquidation of
Establishments  of  Culture"  (wording of 13 June 1995), which is
set  forth  as  follows:  "To  establish  that  establishments of
culture   that   belong   to  the  sphere  of  administration  of
municipal  councils  may  be  reorganised or liquidated only upon
receipt  of  written  consent  by  the Ministry of Culture of the
Republic   of   Lithuania"   is   not   in   Conflict   with  the
Constitution.
     4.  On  12  October 2004, the Seimas adopted the Republic of
Lithuania  Law  on  Recognising  the  Law  "On  the  Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
and   the   Law   which  Substituted  the  Latter  as  No  Longer
Effective,  by  which it recognised the Republic of Lithuania Law
"On   the   Procedure   of   Reorganisation  and  Liquidation  of
Establishments  of  Culture"  (which  was  adopted  on 28 October
1993)  and  the  Republic  of  Lithuania  Law  "On  Amending  the
Republic  of  Lithuania  Law  'On the Procedure of Reorganisation
and   Liquidation  of  Establishments  of  Culture'"  (which  was
adopted  on  13  June  1995)  that became effective on 26 October
2004 as no longer effective.
     Thus  the  disputed  by the petitioner Law "On the Procedure
of  Reorganisation  and Liquidation of Establishments of Culture"
(wording  of  13  June  1995) is not effective at the time of the
investigation of the constitutional justice case at issue.
     5.  According  to  Paragraph  4  of Article 69 of the Law on
the  Constitutional  Court,  the  annulment of the disputed legal
act  shall  be  grounds  to  adopt  a  decision  to  dismiss  the
initiated  legal  proceedings.  In its rulings the Constitutional
Court   has   held   more   than   once  that  according  to  the
Constitution  in  the  cases  where  the  Constitutional Court is
addressed  by  a  court which investigates the case and which has
doubts   concerning   the  compliance  of  the  applicable  in  a
particular   case   law   with  the  Constitution  or  laws,  the
Constitutional  Court  has a duty to consider the petition of the
court  irrespective  of  the  fact  whether  the  disputed law or
other legal act is in force or not.
     6.  The  petitioner  requests  to  investigate as to whether
Item  2.4  of  Government  Resolution  No.  1320 "On the House of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania"  of 28 November 1997 is not in
conflict with the Constitution and laws.
     It is established in this Government resolution:
     "The Government of the Republic of Lithuania resolves:
     1.  To  obligate  the  Ministry of Culture to transfer, by 1
January  1998,  the  functions of founder of the House of Artists
of Lithuania to the Vilnius City Municipality.
     2.   To   assign   to  the  Vilnius  City  Municipality  the
following tasks:
     2.1.  by  1  January  1998,  to  transfer to the Ministry of
Culture  the  functions of founder of the House of Signatories to
the Act of Independence of Lithuania;
     2.2.  to  transfer  the  building  located at Pilies St. 26,
Vilnius,  area  of 1234,16 sq. m., of the House of Signatories to
the  Act  of Independence of Lithuania, which is possessed by the
Vilnius  City  Municipality  under  the  right  of  trust, to the
Ministry  of  Culture  for  possession  and  use  as  state-owned
property   under   the  right  of  trust  after  the  repair  and
restoration  of  this  building  are  finished  after  the  state
commission has adopted it for use;
     2.3.  by  1  January  1998,  to  take over from the House of
Artists  of  Lithuania  the  house  located  at  Didžioji St. 31,
Vilnius  for  possession  and  use  as state-owned property under
the right of trust;
     2.4.  when  performing the functions of founder of the House
of  Artists  of  Lithuania,  not  to  change  the  purpose of the
House,  nor  the type of its activity and status, and to document
this  in  a  trilateral  agreement  on  cooperation  between  the
Vilnius  City  Board,  the  Ministry  of Culture and the House of
Artists of Lithuania."
     7.  It  should be noted that disputed Item 2.4 of Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997 regulates the relations linked
to  the  House  of  Artists  of  Lithuania  and it is inseparably
related  to  Items  1  and  2.3  of  this  Government resolution.
Therefore,  the  investigation  of  the compliance of Item 2.4 of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of  28  November  1997  with the Constitution and
laws  is  inseparable from the investigation of the compliance of
Items   1   and  2.3  of  this  Government  resolution  with  the
Constitution and laws.

                              II                                
     1.  The  petitioner has doubts as to whether the Law "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture"  (wording  of  13 June 1995) is not in conflict with
Paragraph  2  of  Article  120  of the Constitution wherein it is
established    that   municipalities   shall   act   freely   and
independently   within   their   competence,   which   shall   be
established   by   the   Constitution  and  laws.  Moreover,  the
petitioner  had  doubts as to whether the provision "To assign to
the  Vilnius  City  Municipality  the following tasks: <...> 2.4.
when  performing  the  functions  of  founder  of  the  House  of
Artists  of  Lithuania,  not  to change the purpose of the House,
nor  the  type  of  its activity and status, and to document this
in  a  trilateral  agreement  on  cooperation between the Vilnius
City  Board,  the Ministry of Culture and the House of Artists of
Lithuania"  of  Item  2 of Government Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of  Artists of Lithuania" of 28 November 1997 is
not  in  conflict  with  inter alia Paragraph 2 of Article 120 of
the Constitution.
     2.   The   content   of  the  indicated  by  the  petitioner
provision  of  Paragraph  2  of  Article  120 of the Constitution
that  municipalities  shall  act  freely and independently within
their   competence,   which   shall   be   established   by   the
Constitution  and  laws,  may  not  be  construed separately from
other  provisions  of  the  Constitution,  which  consolidate the
constitutional  concept  of  local  self-government,  inter  alia
functioning  of  local  self-government  as  a  system  of public
authority,  as  well as constitutional bases of relations between
local  self-government  and state administration. The majority of
these   provisions   are   set   forth   in   Chapter   X  "Local
Self-Government   and   Administration"   of   the   Constitution
(Articles 119-124).
     In  its  ruling  of  24  December  2002,  the Constitutional
Court  held  that  under  the  Constitution certain functions are
vested    exceptionally   in   the   municipalities   (respective
competence  of  municipalities  is  directly  entrenched  in  the
Constitution);  moreover,  municipalities  may  be  assigned also
with  commission  of  certain functions of the state by the laws.
In  this  regard  the  concept  "functions  of  municipality"  is
resumptive;    it    comprises   all   functions   performed   by
municipalities   according   to   the   Constitution   and  laws,
including  those  that are performed by municipalities due to the
fact  that  pursuant  to  the  Constitution  these  functions are
assigned  exceptionally  to  them,  and  those the performance of
which  must  be guaranteed by the state, but which are performed,
under    laws,    through    municipalities   or   with   certain
participation  of  municipalities  to  (institutions or officials
of)  which  respective  competence  (empowerments)  is  assigned.
Thus,  in  the  cases  of  constitutional  justice, when deciding
whether  the  established  by  laws legal regulation by which the
performance    of    certain    functions   is   transferred   to
municipalities  is  not  in  conflict with Paragraph 2 of Article
120   of   the   Constitution,  as  well  as  whether  the  legal
regulation,  established  in  laws and/or substatutory legal acts
of  the  Government,  by which municipalities (their institutions
or    officials)    are    assigned   with   certain   competence
(empowerments)   which   is   needed  in  order  to  perform  the
functions  transferred  to municipalities is not in conflict with
Paragraph  2  of  Article  120 of the Constitution, one must take
account  of  the  norms of the Constitution and the principles of
the  Constitution,  which establish constitutional bases of legal
regulation  of  respective  public  relations, and interrelations
of   these   norms   and   principles   with  provisions  of  the
Constitution  that  entrench  the constitutional concept of local
self-government.  In  the  constitutional  justice case at issue,
when   deciding   whether   the   Law   "On   the   Procedure  of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording   of  13  June  1995)  and  Items  1,  2.3  and  2.4  of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of  28  November  1997  are  not in conflict with
Paragraph  2  of Article 120 of the Constitution, one should take
account  of  the  provisions  of  Article  42 of the Constitution
which  consolidate  inter  alia  freedom  of  culture  as well as
constitutional  bases  of state support to culture and protection
of  cultural  monuments and valuables, the provisions of Articles
23,  47  and  128  of  the  Constitution  which  consolidate  the
constitutional  bases  of  relations of ownership in the Republic
of   Lithuania,   as   well   as   interrelations  of  respective
provisions  of  Articles  23,  42,  47 ad 128 of the Constitution
with  the  indicated  by  the petitioner provision of Paragraph 2
of  Article  120  of  the  Constitution that municipalities shall
act  freely  and  independently  within  their  competence, which
shall  be  established  by  the Constitution and laws, as well as
other   provisions  of  the  Constitution  that  consolidate  the
constitutional concept of local self-government.
     3.  The  Constitutional  Court,  when construing Paragraph 2
of  Article  120  of  the  Constitution  in  the context of other
provisions   of   the   Constitution   (inter   alia  those  that
consolidate     the     constitutional     concept    of    local
self-government),  has  held  in  its  rulings that governance of
the  state  and  local  self-government are two systems of public
power  which  are  established  in the Constitution. They are not
identical.   In   the   Constitution   local  self-government  is
consolidated  as  a  local system of public administration, which
acts  on  the  basis  of  self-activity  and  is not under direct
jurisdiction      of     institutions     of     state     power:
self-administration     and    self-activity    of    territorial
communities  of  established in laws administrative units, as per
competence  which  is defined in the Constitution and laws. Local
self-government   is   power   of   territorial   communities  of
administrative  units,  which  is  formed  and which functions on
the  constitutional  bases  other than those of state power. Each
above-mentioned  system  of  public power performs functions that
are  characteristic  of  the particular system only. On the other
hand,  a  self-governing territorial community constitutes a part
of  the  whole  community of the state-the civil Nation-therefore
the     public     interest     of     municipalities-territorial
communities-may  not  be  confronted  with the public interest of
the  community  of  the  entire  state,  which must be ensured by
state   institutions   within   their   competence  as  well.  An
interrelation  exists  between  administration  of  the state and
local  self-government,  which manifests itself inter alia in the
fact  that  centralised  governance  of  the state in territorial
administrative  units  is combined with de-centralisation, in the
fact   that   one   consolidates   in  laws  the  cooperation  of
institutions  of  central  power  and municipalities, in the fact
that  the  state  supports  municipalities  in  various  ways and
forms,  as  well  as  the  fact  that  the  state, upon the forms
established  by  laws,  supervises the activity of municipalities
and  coordinates  joint  actions of the state and municipalities,
when    important    social    objectives    are   being   sought
(Constitutional  Court  rulings  of  18  February  1998,  13 June
2000,  28  June  2001,  14 January 2002, 24 December 2002, 30 May
2003, and 13 December 2004).
     In  its  rulings the Constitutional Court has held also more
than  once  that  the  provision of Paragraph 2 of Article 120 of
the   Constitution  that  municipalities  shall  act  freely  and
independently   within   their   competence,   which   shall   be
established  by  the  Constitution  and laws, is the guarantee of
participation   of   local   communities   in  administration  of
respective territories.
     4.  It  was  mentioned  that  pursuant  to  the Constitution
certain  functions  are  vested  exceptionally in municipalities,
moreover,  one  may  transfer,  by laws, certain functions of the
state  to  be  performed  by municipalities as well. It should be
noted   that   the   possibility   which   originates   from  the
Constitution  to  transfer by laws certain functions of the state
to   be   performed   by   municipalities  means  also  that  the
aforementioned   functions   may   be  assigned  by  laws  to  be
performed  by  municipalities  on  the  full-scale  or  only to a
certain  extent.  In  the  latter case one must especially stress
the  requirement  of clarity of legal regulation which originates
from  the  Constitution: legal regulation which is established by
laws   must  be  such  where  it  is  clear  to  what  extent  do
municipalities   perform  a  particular  function,  and  to  what
extent the performance of this function is left to the state.
     In  the  context of the constitutional justice case at issue
it  should  be  held that the performance of certain functions of
the  state,  speaking  objectively, may not, to a certain extent,
be  not  transferred to municipalities, as, without doing so, one
could not guarantee an effective performance of such functions.
     It  should  be  stressed  that according to the Constitution
functions  of  municipalities  may be established only by law; it
may not be done by a substatutory legal act.
     In  the  area  of  legal  regulation  of  relation  of local
self-government,  the  legislator  enjoys  broad discretion. This
discretion  comprises  not  only  the  right of the legislator to
establish  by  a  law  which  functions  (full-scope or a certain
extent  of  them)  are  transferred  to  municipalities,  but  to
differentiate   these  functions  inter  alia  according  to  the
freedom  of  decision-making and, on this basis, to set the types
of  functions  that  are  transferred  to municipalities as well.
The  level  of  self-dependence of municipalities when performing
various  functions  that are established by laws may differ: when
performing   some   functions   municipalities   may  enjoy  more
self-dependence,  meanwhile  when performing other functions, the
freedom   of   activity   of   municipalities  is  restricted  by
respective  decisions  of the state institutions and/or officials
(Constitutional Court ruling of 24 December 2002).
     It  should  be  stressed  also  that  when  establishing the
functions  of  municipalities  and  their  types,  the legislator
must  pay  heed  to  the  self-dependence  of  municipalities and
freedom  of  their  activity within the competence established by
the  Constitution  and  laws,  the principles of co-ordination of
interests  of  municipalities  and  the  state,  as  well  as the
constitutional concept of local self-government.
     In  this  context  one  should note that, as already held by
the  Constitutional  Court in its rulings of 24 December 2002 and
13    December    2004,   the   constitutional   provision   that
municipalities   act   freely   and  independently  within  their
competence,  which  shall  be established by the Constitution and
laws  means  also  that in case certain functions are assigned to
municipalities    by   the   Constitution   or   laws,   so   the
municipalities  perform  them  (both the ones, that are performed
by  them  due  to  the fact that these functions, pursuant to the
Constitution,  are  assigned exceptionally to municipalities, and
the   ones   the   performance   of   which,   according  to  the
Constitution,  must  be  guaranteed  by  the state, but which are
performed,  in  order  to  guarantee  inter alia a more efficient
interaction   between  state  power  and  citizens,  as  well  as
democracy  of  administration,  all  of them or some of them to a
certain  extent  are  transferred  by  laws  to  be  performed by
municipalities),  to  the  extent  that  they are assigned to the
latter.   However,   none   of  these  functions  means  absolute
independence  of  municipalities in respective area; they are all
regulated by laws.
     5.  The  Constitutional  Court  has  held  that  one may not
assign  any  functions  to institutions of self-government, which
they  are  not able to perform (Constitutional Court ruling of 14
January  2002),  and  that in case the functions of the state are
transferred  by  laws  to municipalities, as well as in case laws
and  other  legal  acts  create  duties  of municipalities, funds
needed   for   performance  of  these  functions  (fulfilment  of
duties)  must  be  allocated as well (Constitutional Court ruling
of  24  December  2002).  It was held in the Constitutional Court
rulings  of  14  January  2002, 24 December 2002, and 13 December
2003  that  according  to  the  Constitution  municipalities must
execute  laws,  including  the  laws  by which municipalities are
obligated  to  perform  functions  of the state that are assigned
to  them,  and  that  funds,  which are needed in order to ensure
full-fledged  functioning  of  self-government and performance of
municipal  functions,  must  be provided for in the state budget.
It  is  to  be  held  that  from the Constitution (inter alia the
provision  of  Paragraph  1  of  Article  120 of the Constitution
that  the  State  shall  support  municipalities) stems a duty of
the  legislator  to  establish  by  laws  such  legal regulation,
where,  having  taken  account  of  resources  of  the  state and
society,  material  and  financial capabilities, as well as other
important  factors,  funding  for  municipal  functions  might be
guaranteed.  On  the  other  hand, the constitutional duty of the
legislator  to  establish  such  legal  regulation  where, having
taken  account  of  resources  of the state and society, material
and  financial  capabilities, as well as other important factors,
funding  for  municipal  functions  might be guaranteed, does not
deny   the   duty   of   municipalities  (their  institutions  or
officials)    to   adopt   decisions,   within   the   competence
established  by  the  Constitution  and  laws,  to  collect funds
needed  for  performing their functions and to use these funds in
a  due  way;  the aforesaid constitutional duty of the legislator
does   not  deny  the  responsibility  of  municipalities  (their
institutions  or  officials)  for  the  proper performance of the
functions  transferred  to  them.  In  this  context it should be
noted  that  according  to  the Constitution municipalities draft
and  confirm  their  budget  (Paragraph  1  of Article 121 of the
Constitution),    that    municipal   budgets   are   independent
(Paragraph   1  of  Article  127),  as  well  as  that  municipal
councils  have  the  right  to  establish local levies within the
limits  and  in  accordance  with  the  procedure provided for by
law,  moreover,  municipal  councils  may provide for preferences
with  respect  to  taxes  and  levies at the expense of their own
budget (Paragraph 2 of Article 121 of the Constitution).
     It  is  to  be  noted  that according to the Constitution no
legal  regulation,  where,  having  established  by  laws certain
functions   of   municipalities,  municipal  institutions  and/or
officials  through  which  these  functions  are  to be performed
have   no   respective   competence  (empowerments),  may  exist.
Otherwise,  one  would have to hold that the functions which were
transferred   to  municipalities  by  laws  are  the  ones  which
municipalities are not able to perform.
     6.  The  public  interest which is to be guaranteed by local
self-government  as  well,  as one of the systems of public power
provided  for  in  the  Constitution, as well as particular tasks
that  are  faced  within  particular period by the whole society,
the  state  and territorial communities, are dynamic and they are
subject   to  change.  Therefore,  the  legislator  may,  and  in
certain  cases  he  even  must, change by laws (expand, narrow or
correct  it  otherwise)  the  scope and content of functions that
are   transferred  to  municipalities,  transfer  new  functions,
which   previously   were  not  performed,  to  be  performed  by
municipalities  and/or  establish  that  municipalities  cease to
perform  certain  functions,  which  were  performed earlier; the
legislator   may,   and   in   certain   cases  even  must,  also
respectively    correct    the   competence   (empowerments)   of
municipalities   (their  institutions  or  officials),  which  is
needed   in   order  to  perform  the  functions  transferred  to
municipalities.  When  doing  so  the legislator must pay heed to
the  norms  and  principles  of  the Constitution, inter alia the
imperative  which  originates  from the Constitution to establish
by  laws  such legal regulation, where, having taken into account
the  resources  of  the state and society, material and financial
capabilities,  and  other  important factors, the funding for the
municipal  functions  is  ensured; moreover, in case the scope of
functions   transferred   to   municipalities  is  being  changed
(expanded,  narrowed  or  corrected  otherwise),  the  legislator
may,  and  in  certain  cases  even  must,  respectively  correct
(increase  or  reduce)  the  funding  for municipal functions. It
should  be  noted  in  this  context that, as already held in the
Constitutional  Court  rulings  of  14  January 2002, 24 December
2002,  and  13 December 2004, in case additional functions of the
state   are   transferred   (other   duties   are   assigned)  to
municipalities  prior  to  the  end  of  the  budgetary year, the
funds  must  be  allocated  for  implementation  of the latter as
well.
     One   should   especially   stress   that  pursuant  to  the
Constitution  it  is  only  by  laws  how one may change (expand,
narrow  or  correct otherwise) the scope and content of functions
transferred  to  municipalities,  transfer  new  functions, which
were    previously    not   performed,   to   be   performed   by
municipalities  and/or  establish  that  municipalities  cease to
perform  certain  functions,  which  were performed earlier; this
may not be done by a sub-statutory legal act.
     7.  Municipalities  perform  all  their functions (including
those  that  are performed, as according to the Constitution they
are  vested  solely  in municipalities, and those the performance
of  which  must  be guaranteed by the state, however, in order to
ensure  inter  alia  a  more  efficient interaction between state
power  and  citizens, a well as democracy of governance, they all
or  to  a  certain extent are transferred by laws to be performed
by     municipalities)    and    implement    their    competence
(empowerments)          through          institutions          of
self-government-municipal  councils-the  members  of  which  have
the   mandate  of  territorial  community,  as  well  as  through
executive  bodies  that  are  established  by  and accountable to
municipal   councils   and   other  institutions  accountable  to
municipal  councils  (municipal  establishments  or enterprises).
In  its  rulings  of  24  December  2002,  17  March 2003, and 13
December  2004,  the  Constitutional  Court  held  that municipal
institutions   are   established   in   order  to  implement  the
interests  of  municipality,  and  to  directly  implement  laws,
resolutions  of  the  Government  and  decisions of the municipal
council;   thus,   pursuant   to   the   Constitution,  municipal
councils,  executive  bodies  that  are  accountable to them, and
other  institutions  established  by municipal councils are to be
considered   municipal   institutions   as   well.   The  concept
"municipal   institutions"   expresses   the   subordination   of
respective institutions to respective municipality.
     In  this  context  one  should mention that the Constitution
directly   consolidates   the  bases  and  procedure  of  forming
(electing)  self-government  institutions, the municipal councils
(Paragraph  2  of Article 119 of the Constitution); moreover, the
Constitution  expressis  verbis  requires that municipal councils
establish  executive  bodies  accountable to them (Paragraph 4 of
Article  119  of  the Constitution). In its ruling of 13 December
2004,  the  Constitutional  Court  held  that  in the established
cases   municipal   councils  (representative  institutions)  and
executive  bodies  accountable  to  them (executive institutions)
are  granted  authoritative empowerments, and that such municipal
institutions  are  institutions  of  municipal  power  and public
administration.
     It   should   be  stressed  that  municipal  councils,  i.e.
institutions  through  which  the  right  of  self-government  of
territorial   communities   is   implemented,  according  to  the
Constitution  have  the  right  to establish various institutions
accountable  to  them-municipal  establishments, enterprises-that
are   needed   in  order  to  perform  functions  transferred  to
municipalities,  and  in  cases  provided  for  by laws they must
establish   such   institutions   (municipal   establishments  or
enterprises).  Paragraph  2  of  Article 120 of the Constitution,
wherein  it  is  established  that  municipalities act freely and
independently   within   their   competence,   which   shall   be
established  by  the  Constitution  and  laws, and Paragraph 3 of
Article  119  of  the  Constitution,  wherein  it  is established
inter  alia  that  the  procedure  of activity of self-government
institutions   is   established  by  law,  imply  also  that  the
legislator  has  the  duty  to  set  by  laws  the  procedure  of
establishment  of  municipal  establishments  or enterprises, and
municipal  councils  must  establish  municipal establishments or
enterprises according to the requirements set in laws.
     In  the  context  of  the case at issue one should note that
the  legislator,  while  paying  heed  to  the  Constitution, may
establish  by  law  certain  conditions  and/or procedures, which
must  be  followed  by  municipalities  when  implementing  their
rights  of  the  founder  of  the  establishments  or enterprises
founded  by  them,  and  one  may  establish  also  by  law other
limitations  which  to  a  certain  extent restrict the rights of
municipalities   as  founders  of  respective  establishments  or
enterprises.
     In  its  decision  of  11  February 2004, the Constitutional
Court   held:   if   the  laws  provide  that  certain  relations
connected  with  the  procedure (procedures) of implementation of
requirements  of  laws,  thus  also  the requirements of the laws
whereby  municipal  functions  are  established, are regulated by
the  Government,  then  the  Government  must  do  so; such legal
regulation   established  by  the  Government  is  obligatory  to
municipal  institutions  as  well;  if  it  is established in the
laws   that   certain  relations  connected  with  the  procedure
(procedures)  of  the  implementation of laws, thus also the laws
establishing   municipal   functions,   are   regulated   by   an
institution   empowered   by   the  Government  (for  example,  a
ministry),  then  the  Government  has  a  duty  to establish, by
means  of  a  resolution, which state institutions have to do so,
while  the  latter institution (its head) must issue a respective
legal  act;  such legal regulation established by the institution
(its   head)   empowered  by  the  Government  is  obligatory  to
municipal  institutions  as  well;  if  it  is established in the
laws   that   certain  relations  connected  with  the  procedure
(procedures)  of  the  implementation of laws, thus also the laws
establishing  municipal  functions,  are  regulated by a ministry
(minister)  or  another  state  institution (its head), then this
ministry  (minister)  or  another  state  institution  (its head)
must  issue  a  corresponding legal act, and the legal regulation
established   by   this   ministry   (minister)  or  other  state
institution  (its  head)  is obligatory to municipal institutions
as  well;  however,  these  Government  resolutions, substatutory
legal  acts  issued  by  ministries  (ministers)  or  other state
institutions  (their  heads)  cannot  change or distort the legal
regulation  established  in  laws,  these substatutory legal acts
cannot  establish  any  such legal regulation which would compete
with that established in laws.
     One  should  note  in this context that according to Article
122  of  the  Constitution  municipal councils may apply to court
regarding violation of their rights.
     The  right  of  municipal councils which originates from the
Constitution      and      laws,     to     establish     various
institutions-municipal  establishments  that  are needed in order
to       perform      the      functions      transferred      to
municipalities-accountable  to  them  implies also their right to
liquidate,  reorganize  or  upon the established procedure in any
other    way    restructure   the   aforementioned   institutions
irrespective  of  the  way how the liquidation, reorganisation or
restructuring  in  any  other  way of municipal establishments or
enterprises  is  called  in  laws  or  substatutory  legal  acts,
including decisions of respective municipal councils.
     The  above-mentioned  requirements  that  originate from the
Constitution,  inter  alia  the  duty  of  the  legislator to set
forth   by  law  the  procedure  of  establishment  of  municipal
establishments   or   enterprises   and  the  duty  of  municipal
councils  to  establish  municipal  establishments or enterprises
while  following  requirements  that  are  set  forth in laws, as
well  as  the  duty  of municipal councils to follow requirements
of   the  Government  resolutions,  substatutory  legal  acts  of
ministries   (ministers)   or  other  state  institutions  (their
heads),   are  applicable  also  mutatis  mutandis  to  municipal
councils'   decisions,   by  which  municipal  establishments  or
enterprises  are  being  liquidated,  reorganised or restructured
in  any  other  way, irrespective of the way how the liquidation,
reorganisation  or  restructuring  in  any other way of municipal
establishments  or  enterprises is called in laws or substatutory
legal   acts,   including   decisions   of  respective  municipal
councils.
     It  should  be  noted  that the Constitution (in particular,
having  taken  into  account  the  fact  that  the  principle  of
co-ordination  of  the  interests of municipalities and the state
is  consolidated  therein)  does  not prevent municipalities from
holding   the  right  of  the  founder  of  certain  institutions
(establishments  or  enterprises)  through  which the transferred
to  municipalities  functions  of  the state are performed, if it
is  permitted  by  laws, together with other entities, inter alia
state institutions.
     8.  In  its  ruling  of 24 December 2002, the Constitutional
Court  held  that  the  executive bodies accountable to municipal
councils  have  no  right  to adopt decisions which are not based
on  decisions  of  municipal councils, as well as decisions which
are  equal  in  their  legal  power  to  decisions  of  municipal
councils.  When  construing  this  statement  of the ruling of 24
December  2002,  the  Constitutional  Court in its decision of 11
February  2004  inter  alia  held  that  the  legislator, who has
established  by  law  that  municipalities  may  establish  their
establishments   or   enterprises,   may   not   set  such  legal
regulation  where  decisions concerning the establishment of such
establishments  or  enterprises  are  adopted by executive bodies
accountable to municipal councils instead of the latter.
     This  provision  is  mutatis  mutandis  applicable  also  to
decisions    of    municipal    councils   by   which   municipal
establishments  or  enterprises are being liquidated, reorganised
or  restructured  in any other way upon the established procedure
irrespective  of  the  way how the liquidation, reorganisation or
restructuring  in  any  other  way of municipal establishments or
enterprises  is  called  in  laws  or  substatutory  legal  acts,
including decisions of respective municipal councils.
     9.  In  its  ruling  of  13 December 2004 the Constitutional
Court  held:  the  system of state institutions comprises various
state  institutions;  the  variety  of  state institutions, their
legal   status   and  powers  are  determined  by  a  variety  of
functions  exercised  by  the  state, particularities of managing
the   general   affairs   of   the  society,  organisational  and
financial  capabilities  of the state, the content and expediency
of  the  policy  implemented  during a concrete period of life of
the   society   and   development  of  the  state,  international
obligations  of  the  state,  as  well  as other factors; certain
state   institutions   are  expressis  verbis  indicated  in  the
Constitution;  the  Seimas,  the  President  of the Republic, the
Government,  and  courts  are  the  institutions  executing state
power;  in  the Constitution one has indicated also certain state
institutions  which  are  assigned, pursuant to the Constitution,
neither  to  legislative,  executive,  nor judicial power; in the
Constitution,  the  term  "institution"  comprises not only state
institutions-it  bears  a  broader  sense  as  well,  because  in
certain cases non-state institutions are called the same too.
     In  the  Constitutional  Court ruling of 13 December 2004 it
is  held  also  that  according  to  the  Constitution  it is the
Seimas  and  according  to  laws  it  is  also the Government who
enjoy  powers  to  establish  state institutions other than those
expressis  verbis  indicated  in  the  Constitution,  a  need  to
establish  which  originates  from  the  necessity  to  implement
state  governance,  to administer affairs of the state, to ensure
the  performance  of  various state functions, that, while paying
heed  to  the  Constitution,  law  may  also establish such legal
regulation  where  certain  state institutions may be established
under  the  institution  of  the  President  of the Republic, the
Head  of  State, as well as that law may also establish the legal
regulation   where   certain   state   institutions  that  ensure
independent  administration  of courts are founded under judicial
power.
     It   should   be   held   that  various  state  institutions
(including  establishments  and  enterprises)  may or, in certain
cases  even  must,  be  established,  within their competence and
pursuant   to  the  requirements  of  laws,  also  by  the  state
institutions  which  are  assigned by the Constitution neither to
legislative, executive, nor judicial power.
     In   addition,   it   should  be  held  that  various  state
institutions  (including  establishments  and enterprises) within
their  competence  and in line with requirements of laws may, and
in  some  cases  even  must,  be  also  established  by the state
institutions  which  are  not  specified  in the Constitution and
which  themselves  were established according to the law by other
state institutions as well.
     In  this  context one has to emphasize that the concept used
in  the  Constitution  "state  institution"  is  a constitutional
concept,   it  has  a  constitutional  content  and  may  not  be
construed  on  the  grounds  of  the  sole fact that an analogous
concept  is  defined  in  laws  or other legal acts; according to
the  Constitution  all institutions (including establishments and
enterprises)  through  which  the  state  exercises its functions
and  the  rights  of  the founder of which are owned by the state
(its   institutions),   irrespective   of  the  way  how  certain
institutions  are  called in laws and/or substatutory legal acts,
are  to  be  considered  state  institutions.  In this regard the
notion  "state  institutions"  is resumptive. In its ruling of 13
December  2004,  the  Constitutional  Court  held that the notion
"state  institutions"  which  is  used  in the Constitution is of
general  type,  it  comprises  various state institutions through
which   the   state  exercises  its  functions,  that  the  state
institutions  comprise  a  system,  and that this system of state
institutions  is  consolidated  in  legal  acts  of diverse legal
power:  some  state  institutions  are expressis verbis specified
in  the  Constitution, others, according to the Constitution, are
to  be  specified by the law, still others are established on the
grounds  of  a  need to implement state governance, to administer
affairs  of  the  state,  to  ensure  the  performance of various
state  functions-the  state  institutions  must  be  organised in
order  to  perform such functions although their establishment is
not explicitly provided for in the Constitution.
     The   indicated  provisions  concerning  the  establishment,
based   on   laws,   of   the   state   institutions   (including
establishments   and   enterprises),   through  which  the  state
exercises  its  functions, is mutatis mutandis applicable also to
the  liquidation,  reorganisation  or  restructuring in any other
way  under  established  procedure,  irrespective  of the way how
such  liquidation,  reorganisation  or restructuring in any other
way  of  the state institutions is called in laws or substatutory
legal  acts,  of state institutions (including establishments and
enterprises), through which the state exercises its functions.
     One  must  note  that  the Constitution does not prevent the
state  institutions  from  holding  the  rights of the founder of
certain   establishments   or  enterprises  together  with  other
entities,  inter  alia  municipalities,  if  this is permitted by
law.  Thus,  the Constitution does not prevent state institutions
from  founding,  within  their  competence  and  in line with the
requirements  of  laws,  certain  establishments  or  enterprises
together with other entities, inter alia municipalities.
     10.  It  has  been  held in this Constitutional Court ruling
that  due  to  the  fact  the  public  interest,  which  must  be
guaranteed  by  local self-government as well, and specific tasks
that  are  faced  within  particular period by the whole society,
the  state  and  territorial communities, are dynamic and subject
to  change,  the  legislator  may  and in certain cases even must
change  by  law  (expand,  narrow or correct otherwise) the scope
and  content  of  functions that are transferred to municipality,
transfer  new  functions, which were previously not performed, to
be    performed   by   municipalities   and/or   establish   that
municipalities  cease  to  perform  certain functions, which were
performed  earlier,  moreover,  that  the  legislator may, and in
certain   cases   even   must,   also  respectively  correct  the
competence  (empowerments)  of municipalities (their institutions
or   officials),   which  is  needed  in  order  to  perform  the
functions transferred to municipalities.
     Establishment  of  the  public  interest,  which  has  to be
guaranteed  by  local self-government as well, and change by laws
of  the  scope  and  content of functions that are transferred to
municipality,  transfer  of  new functions, which were previously
not   performed,   to   be  performed  by  municipalities  and/or
establishment   that  municipalities  cease  to  perform  certain
functions,  which  were  performed earlier, caused by dynamics of
specific  tasks  that  are  faced by the whole society, the state
and  territorial  communities,  may  be related to the assignment
of  certain  establishments  or  enterprises  to  municipalities,
inter  alia  transfer  of  the  rights  of  the  founder of these
establishments  or  enterprises,  which  were  previously held by
certain  state  institutions,  to  municipalities.  It  should be
especially  noted  that  the  aforementioned  assignment of state
establishments  or  enterprises to municipalities and transfer of
rights  of  their  founder  to  municipalities  imply  also  that
municipalities  may  also take over new duties related to funding
of  respective  establishments or enterprises or their support in
another  form,  as  well  as  control,  supervision  etc.  of the
above-mentioned  establishments  or  enterprises. Thus, the state
establishments    or    enterprises    must    be   assigned   to
municipalities,   while   the  rights  of  the  founder  must  be
transferred    to    municipalities    without    violating   the
constitutional  concept  of local self-government, the entrenched
in  the  Constitution  independence of municipalities and freedom
of  their  activity  within  the  competence  established  by the
Constitution   and  laws,  the  principles  of  co-ordination  of
interests  of  municipalities  and  the state, and paying heed to
the   interests   of   municipality;   the   requirements,  which
municipalities   are   not   able   to   implement,  may  not  be
established   upon   them;   funding   of   respective  municipal
functions  must  be  respectively  corrected, if needed. All this
implies  that  in order to enable respective municipalities to be
ready  for  proper  performance of functions transferred to them,
inter  alia  sufficient  exercising  of  the  transferred to them
rights  of  the founders of the establishments or enterprises and
fulfilment  of  duties  related  thereto,  they  must be informed
about    the    anticipated    assignment    of   certain   state
establishments  or  enterprises (inter alia transfer of rights of
the  founders  of  these  establishments or enterprises) to these
municipalities.
     It  has  been  mentioned  that  the  Constitution  does  not
prevent  municipalities  from  holding  the rights of the founder
of  certain  institutions (establishments or enterprises) through
which  the  transferred  to municipalities functions of the state
are  performed,  if  it is permitted by laws, together with other
entities,  inter  alia state institutions. Thus, according to the
Constitution,  it  is  not  impossible  to  establish by law such
legal  regulation,  where,  in  case the rights of the founder of
certain  institutions  (establishments  or  enterprises), through
which  state  functions assigned to municipalities are exercised,
are  transferred  not only to certain municipalities, but also to
other  entities  (inter alia state institutions), or, in case the
rights  of  the  founder  of certain institutions (establishments
or  enterprises),  through  which  state  functions  assigned  to
municipalities   are   exercised,   are  transferred  to  certain
municipalities,  but  these  rights  are  still held by the state
institutions   that   used   to   hold  such  rights  previously,
municipalities  would  become  and continue being the founders of
institutions   (establishments   or   enterprises  through  which
functions  of  the state are exercised), which used previously to
belong  to  certain  state  institutions, together with the state
institutions.
     11.  It  should  be  stressed  that  assignment  of  certain
institutions  (establishments  or enterprises) to municipalities,
inter  alia  transfer  of  the  rights  of  the  founder of these
establishments  or  enterprises,  which  were  previously held by
certain   state  institutions,  in  itself  does  not  mean  that
respective    functions    of   the   state   are   assigned   to
municipalities  alongside.  quite to the contrary: the assignment
of   certain  institutions  (establishments  or  enterprises)  to
municipalities,   inter  alia  transfer  of  the  rights  of  the
founder  of  these  establishments  or  enterprises,  which  were
previously  held  by  state institutions, to municipalities, must
be  based,  pursuant  to  the  Constitution,  on  the  fact  that
respective  functions  of  the  state  (all  or some of them to a
certain  extent)  are  transferred  by  law  to  be  performed to
municipalities.
     12.  It  has  been  held in this Constitutional Court ruling
that  the  legislator, while paying heed to the Constitution, may
establish  by  law  certain  conditions  and/or procedures, which
must  be  followed by municipalities when exercising their rights
of  the  founders  of  the  establishments  or enterprises, which
have  been  established  by  them; one may establish by law other
limitations,  restricting  to  a  certain  extent  the  rights of
municipalities   as  founders  of  respective  establishments  or
enterprises, as well.
     Thus,  in  the  context  of  the  case at issue it should be
noted   that   the   transfer   of   rights  of  the  founder  of
establishments  or  enterprises,  which  were  held previously by
certain  state  institutions,  does  not  mean  that  one may not
establish  by  law  certain  conditions  and/or procedures, which
must  be  followed  by  municipalities when exercising the rights
of   the   founder   of  the  above-mentioned  establishments  or
enterprises  transferred  to  them,  moreover, this does not mean
that  one  may  not  establish  by  law  other  limitations  that
restrict  to  a  certain  extent  the rights of municipalities as
the  founders  of  the  establishments  or  enterprises  that are
newly  assigned  to  them.  When establishing the above-mentioned
conditions,  procedures  or  other  restrictions,  one  must  not
violate  the  interests  of  municipalities  and  pay heed to the
entrenched  in  the  Constitution  independence  and  freedom  of
activity  of  municipalities within the competence established by
the   Constitution  and  laws,  as  well  as  the  principles  of
co-ordination  of  interests  of  municipalities  and  the state,
which are defined in the Constitution and laws.
     13.  The  constitutional  requirements  of legal clarity and
legal  certainty  are  applied to the legal acts by which certain
state  establishments  or  enterprises,  inter alia the rights of
the    founder   of   these   institutions   (establishments   or
enterprises),   through   which   functions   of  the  state  are
performed:  the  legal  regulation  must  be  such  so that it is
clear  whether  the  rights of municipalities, as of the assignee
of  the  rights  of  the  founder  of  a  respective  institution
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  are restricted in any way, and whether no
such  restrictions  have  been  established,  moreover, it should
not  establish  any  uncertainty  whether respective institutions
(establishments  or  enterprises), through which functions of the
state  are  performed, are financed or supported in any other way
by   the  municipality,  or  the  state  (its  institutions),  or
whether  the  burden  of  financing is divided in any way between
the  municipality  and  the state (its institutions), whether the
powers   of   control   or   supervision  of  these  institutions
(establishments  or  enterprises), through which functions of the
state  are  performed,  belong  to municipality (its institutions
or  officials),  or the state (its institutions or officials), or
both  the  municipality  (its  institutions or officials) and the
state (its institutions or officials), etc.
     14.  It  should  be  emphasised that assignment of any state
institution   or   enterprise   to  a  municipality,  inter  alia
transfer  of  the  rights  of  the  founder  of  this institution
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  to  the municipality must be based on the
law.  The  requirement  that  relations  of  such  type are to be
regulated    by    means   of   a   law   originates   from   the
Constitution-from  the  principle  entrenched in the Constitution
that  administration  of  the state and local self-government are
two   non-identical   systems   of   public   power,   from   the
constitutional   imperative   that  municipal  functions  may  be
established  by  law only, from the principle of co-ordination of
interests  of  municipalities  and  the  state,  as well as other
provisions  of  the  Constitution.  The  established  by such law
legal  regulation,  which  is  followed  by the state institution
enjoying  the  powers  to  issue legal acts, according to which a
certain   state   institution   (establishment   or  enterprise),
through  which  functions of the state are performed, is assigned
to  the  municipality,  inter  alia  the rights of the founder of
this  institution  (establishment  or  enterprise), through which
functions  of  the  state  are performed, are transferred, may be
general (lex generalis) or special (lex specialis).
     Thus,   when   deciding   (inter   alia   in  the  cases  of
constitutional  justice)  as to whether a legal act (inter alia a
Government   resolution),  by  which  certain  state  institution
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  is assigned to a municipality, inter alia
the  rights  of the founder of this institution (establishment or
enterprise),   through   which   functions   of   the  state  are
performed,  are  transferred  to  the  municipality,  is  not  in
conflict  with  the  Constitution, one must find out, whether the
aforementioned    assignment    of    the    state    institution
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  to  municipality,  inter alia transfer of
the  rights  of the founder of this institution (establishment or
enterprise),   through   which   functions   of   the  state  are
performed,  to  the  municipality,  is  based  on  the  law  (lex
generalis  or  lex  specialis),  i.e. one must find out, first of
all,  whether  the  state  institution that issued the respective
legal  act  enjoyed  the  competence  as  per  laws  to adopt the
decision   to  assign  the  said  institution  (establishment  or
enterprise),   through   which   functions   of   the  state  are
performed,  to  the  municipality,  inter  alia  to  transfer the
rights  of  the  founder  of  this  institution (establishment or
enterprise),   through   which   functions   of   the  state  are
performed,  to  the  municipality,  and,  secondly,  whether  the
above-mentioned   decision   to   assign  the  state  institution
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  to  the municipality, inter alia transfer
of   the   rights   of   the   founder   of   this   institutions
(establishment  or  enterprise),  through  which functions of the
state  are  performed,  to  the municipality, was adopted without
violating the procedure established by laws.
     In  this  context  one  should note that prior to 2 November
1992,  when  the Constitution of the Republic of Lithuania became
effective,  the  national legal system was developed on the basis
of  the  Provisional  Basic  Law,  moreover,  lots  of legal acts
issued  prior  to  the  restoration  of  the independent State of
Lithuania   were   effective.   When   the   Constitution  became
effective,  the  national  legal  system,  as  well as legal acts
aimed  at  regulation  of  relations  of  local  self-government,
could  be  developed  only  on the basis of the Constitution. One
of  the  features  of  creation  of  the  national  legal system,
developed  on  the  basis of the Constitution, was the transition
to  such  model  of  interaction  of public power and society, in
which,  while  implementing  the  entrenched  in the Constitution
and  declared  in the Preamble thereof the striving of the Nation
for  an  open, just, and harmonious civil society and State under
the  rule  of  law,  one encourages the true self-government of a
civil  society  (thus  of territorial communities as well). Under
such   circumstances  the  fact  that  municipalities-territorial
communities  could  be  supported by the state, especially if one
takes  into  account the imperative of Paragraph 1 of Article 120
of   the   Constitution   that  the  state  provides  support  to
municipalities, was an immediate public interest.
     However,   as  it  was  held  in  the  Constitutional  Court
rulings  of  29  October  2003  and  5  March  2004, creation and
development  of  the  national legal system is a gradual process.
After  the  Constitution  became  effective,  a  legal situation,
where  most  of the laws, which had to be issued according to the
Constitution  and  on  which,  pursuant  to the Constitution, one
had  to  base all the decisions of state institutions (inter alia
the  Government)  and  officials concerning the administration of
certain  areas  of  life  of  the state and society, had not been
issued  yet,  was  in  place  for  a certain period. One must pay
heed  also  to  this fact in the cases of constitutional justice,
in  which  one  has  to decide whether the Government resolutions
adopted  within  the aforementioned period, immediately after the
date  of  coming  into  effect  of  the  Constitution, are not in
conflict with the Constitution.
     The  Government  inter alia executes laws (Item 2 of Article
94  of  the Constitution), administers the affairs of the country
(Item  1  of  Article  94  of  the Constitution). When, after the
coming  into  effect  of the Constitution, there appeared a legal
situation  where  most of the laws establishing the powers of the
Government   to   decide   by  its  resolutions  the  affairs  of
administration  of  the  country  had  not  been  issued yet, the
Government  used  to  adopt  resolutions which where not directly
based   on   laws  that  established  respective  powers  of  the
Government.  When  deciding,  in cases of constitutional justice,
whether  such  Government  resolutions  were not in conflict with
the  Constitution,  one  should  also  take  account  of the fact
whether  respective  decisions were not determined by a necessity
to    immediately    implement    certain   provisions   of   the
Constitution,  despite  the  fact that their implementation, thus
the  powers  of  the  Government in particular areas as well, had
not been regulated by laws yet.
     Alongside,  it  should  be  noted that immediately after the
Constitution  became  effective,  there  appeared legal situation
originated  where  most  of  the  laws,  which  had  to be issued
according  to  the  Constitution  and  which had to be the basis,
pursuant  to  the  Constitution,  for  all Government resolutions
related  to  administration of certain areas of life of the state
and  society,  had  not  been  issued  yet,  in  itself  does not
justify  any  legal  act  issued  by  the  Government  during the
above-mentioned  period,  if  it  is  not based on laws. In order
not  to  recognise  a Government resolution which is not based on
laws  (neither  lex  generalis,  nor  lex  specialis) as being in
conflict   with   the   Constitution,   a  respective  Government
resolution  had  to  be  caused  by  the necessity to immediately
implement   certain   provisions   of   the   Constitution,   the
non-implementation   of   which   would   have   resulted   in  a
fundamental  harm  to  certain  values, entrenched in, as well as
protected   and   defended  by  the  Constitution.  Besides,  the
aforementioned  legal  situation,  which  originated  immediately
after  the  coming  into  effect  of  the Constitution, should be
considered  as  a  notably  short-term situation, i.e. the one of
unavoidable  transitional  period;  other  construction  of  this
situation    would    be   absolutely   inconsistent   with   the
Constitution,  inter  alia  the  principle  of  supremacy  of the
Constitution.   It   should   be   especially   noted   that  the
aforementioned   transitional  period,  when  the  said  specific
legal situation was in place, is long over.
     Thus,  when  deciding  in  cases  of constitutional justice,
whether  a  Government  resolution,  by  which  a  certain  state
establishment   or  enterprise  is  assigned  to  a  municipality
(inter  alia  the  rights of the founder of this establishment or
enterprise   are  transferred),  is  not  in  conflict  with  the
Constitution,   one   must   find   out   not  only  whether  the
above-mentioned   assignment   of   the  state  establishment  or
enterprise  to  the  municipality (inter alia the transfer of the
rights  of  the  founder  of this establishment or enterprise) is
based  on  the  law,  but also whether such Government resolution
was   adopted   during  the  aforementioned  transitional  period
(right  after  the  entry  into  effect  of the Constitution) and
whether  the  respective  Government  resolution was based on the
necessity  to  implement  certain provisions of the Constitution,
without  implementation  of  which  one would have inflicted harm
on  certain  values,  entrenched in and protected and defended by
the  Constitution  (including  the  provisions, consolidating the
constitutional  concept  of  local  self-government,  inter  alia
constitutional  bases  of  functioning  of local self-government,
as   well   as  relations  of  local  self-government  and  state
administration).
     15.  As  mentioned,  when  deciding,  in  the constitutional
justice  case  at  issue,  whether  the  Law "On the Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording   of  13  June  1995)  and  Items  1,  2.3  and  2.4  of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of  28  November  1997  are  not in conflict with
Paragraph  2  of Article 120 of the Constitution, one should take
into  account  the  provisions of Article 42 of the Constitution,
which  entrench  inter  alia  freedom  of culture, as well as the
constitutional  bases  of state support to culture and protection
of  cultural  monuments  and  other  culturally valuable objects,
and  the  relation  of these provisions with the indicated by the
petitioner  provision  of  Paragraph  2  of  Article  120  of the
Constitution  that  municipalities  act  freely and independently
within   their   competence,   which   is   established   by  the
Constitution  and  laws,  as  well  as  other  provisions  of the
Constitution  that  consolidate  the  constitutional  concept  of
local self-government.
     In   this   context   one   should   discuss  the  following
provisions  of  Article  42 of the Constitution: culture, science
and  research,  and  teaching  shall  be  free (Paragraph 1); the
State  shall  support  culture  and  science  and  shall  protect
Lithuanian  historical,  art,  and  cultural  monuments and other
culturally  valuable  objects (Paragraph 2). Thus, in Paragraph 1
of  Article  42  of  the Constitution the principle of freedom of
culture  is  expressis  verbis entrenched, and in Paragraph 2 the
constitutional  duty  of the state to support culture, as well as
to  protect  cultural  monuments  and  other  culturally valuable
objects is consolidated.
     16.  The  notion  of culture is used in the Constitution not
only   in   the   indicated  provisions  of  Article  42  of  the
Constitution,  but  also  in other articles (paragraphs) thereof.
The  constitutional  concept  of  culture is especially broad. It
comprises  various  values  held  and  fostered by the Nation and
separate  communities,  the  models  and  norms of behaviour that
have  originated  in  the  society  (including  law,  customs and
traditions),    historical   experience,   spoken   and   written
language,  institutions,  world-view and convictions, etc. On the
other  hand,  in  the  constitutional  concept  of culture (inter
alia  in  Article  42)  one stresses the purposeful both material
and  spiritual  creative  activity of people and its results-art,
science,   education,  architecture,  technology,  etc.  Cultural
values  are  transferred  to the future generations, they are the
foundation  of  survival  and  continuity  of  the Nation and the
state,   thus   they   are   protected   and   defended   by  the
Constitution.   Culture   is   a   national  value  of  universal
importance.  The  Constitution  obligates the state to ensure the
freedom  of  culture,  to  support  culture,  to protect cultural
monuments  and  other  culturally  valuable objects. The ensuring
of  the  freedom of culture, state support to culture, protection
of  cultural  monuments  and other culturally valuable objects is
a   public   interest  and  important  function  of  the  state-a
function of state support and protection of culture.
     In   this   context   one   should   especially  stress  the
importance  of  provisions  that are set forth in the Preamble to
the  Constitution:  it  is entrenched therein that the Lithuanian
Nation,  having  created  the  State  of Lithuania many centuries
ago,  having  based  its  legal  foundations  on  the  Lithuanian
Statutes  and  the  Constitutions  of  the Republic of Lithuania,
having  for  centuries  persistently  defended  its  freedom  and
independence,  having  preserved  its  spirit,  native  language,
writing,  and  customs,  embodying  the innate right of the human
being  and  the  Nation  to live and create freely in the land of
their   fathers  and  forefathers-in  the  independent  State  of
Lithuania,  fostering  national concord in the land of Lithuania,
striving  for  an  open,  just,  and harmonious civil society and
state  under  the rule of law, by the will of the citizens of the
reborn   State   of   Lithuania,   adopts   and   proclaims  this
Constitution.  Thus,  the  Lithuanian  Nation  has  obligated the
state  created  by  it  to  foster  the  cultural values that are
entrenched  in  the Preamble to the Constitution, and not to give
them  up  under  any  circumstances.  All other provisions of the
Constitution,  including  the  ones that are set forth in Article
42,  must  be  construed  so  that  one does not deviate from the
imperatives originating from the Preamble to the Constitution.
     17.  The  entrenched  in  Paragraph  1of  Article  42 of the
Constitution  freedom  of  culture  is  to be construed by taking
account   of   the   fact   that,   as   already  mentioned,  the
constitutional  concept  of culture defines a purposeful material
and  spiritual  creative  activity  of people and its results. In
this  regard  the  concept  of  freedom of culture comprises also
the  freedom  of  science  and  research,  as  well as freedom of
teaching,  which  are  mentioned  in Paragraph 1 of Article 42 of
the  Constitution  as  well.  It  should  be noted alongside that
cultural  activity  is  not  limited to scientific work, research
and  teaching,  thus  the  concept  of  freedom of culture is not
limited   to   the  freedom  of  scientific  work,  research  and
teaching; it is much wider.
     18.  The  Constitution  distinguishes  two  aspects  of  the
freedom  of  culture  as  an innate freedom of a human being. The
entrenched  in  the  Constitution  freedom  of culture comprises:
(1)  freedom  of creative activity, which, in its turn, comprises
the   right  of  every  person  to  freely  create  material  and
spiritual  cultural  values  (freedom of the process of creation)
and  the  right  to  spread  or  distribute  in any other way the
created  material  and  spiritual  cultural  values  (freedom  of
spreading   products   of  creative  activity);  (2)  freedom  of
accessibility  to  cultural  values, i.e. freedom of every person
to use created cultural valuables.
     19.  In  its ruling of 1 July 2004, the Constitutional Court
held:  "According  to  the  Constitution  creative activities are
activities  in  the  area of science, technology, culture or art,
aimed  at  creating  a  certain  result,  i.e. qualitatively new,
original  and  specific  material or spiritual values of science,
technology,  culture  or  art,  which  have never existed before.
Creative  activities  may  be  continuous,  professional,  and of
one-time  type  (episodic)."  Creation  of material and spiritual
values is impossible without freedom of creative activity.
     The   imperative   of   freedom   of  creative  activity  is
consolidated  not  only  in Article 42 of the Constitution (inter
alia  Paragraph  1  thereof),  other articles of the Constitution
(their  parts)  that  entrench  human rights and freedoms, but in
the   provision  of  the  Preamble  to  the  Constitution,  which
consolidates  the  innate  right  of  a  person and the Nation to
create  freely  in  the  independent State of Lithuania. Creation
of  material  and  spiritual  values  is  realisation of creative
potential  and  abilities  of  a human being. Thus the freedom of
creative   activity   (comprising   freedom  of  the  process  of
creation   and   freedom   of   spreading  products  of  creative
activity)   is  one  of  the  most  important  manifestations  of
freedom  of  self-expression,  which  is  one  of the universally
recognised  innate  human  rights  and which is entrenched in, as
well  as  protected  and  defended  by  the  Constitution; on the
other   hand,  the  content  of  freedom  of  self-expression  is
broader  than  that  of  freedom  of creative activity and is not
limited  thereby.  Freedom  of  creative activity (as the freedom
of  self-expression  in  general)  is  inseparably related to the
entrenched  in  Article  25  of  the  Constitution human right to
have  his  own  convictions  and  freely express them (freedom of
convictions  and  their  expression)  and  freedom to search for,
obtain   and   impart   information   and   ideas   (freedom   of
information), which are in their turn directly interrelated.
     20.  When  construing  the  content of the entrenched in the
Constitution  freedom  of human convictions and their expression,
the  Constitutional  Court  has  held: convictions are a spacious
and   diverse  constitutional  notion  comprising  political  and
economic  convictions,  religious  feelings,  cultural attitudes,
ethic  and  aesthetic  views,  etc.;  freedom to have convictions
means  that  a person is free to form his convictions himself, to
form  and  express his attitudes, choose values of world-view; he
is  protected  from  any  compulsion,  his  attitudes  may not be
subject  to  control;  a  duty of state institutions is to ensure
and   protect   this  freedom  of  the  person;  the  content  of
convictions  is  a  private  matter  of a human being; freedom of
convictions   and   their   expression   entrenches  ideological,
cultural  and  political  pluralism;  no  convictions or ideology
may  be  declared  compulsory  and forced upon an individual; the
state  must  be neutral in regard to convictions, it has no right
to  establish  any compulsory system of convictions; the right to
freely  express  convictions  is  inseparable from the freedom to
have  such  convictions;  freedom of expression of convictions is
a   possibility  to  express  thoughts,  views,  and  convictions
without  hindrance  orally, in writing, in signs, and by applying
other  ways  and  means  of  spreading  information;  freedom  of
expression  of  convictions  comprises  also  the  freedom not to
disclose  one's  convictions,  and  not  to be forced to disclose
them.  The  Constitutional  Court  has  also held that freedom to
have  convictions  in  general  may  not  be  limited,  while the
freedom  to  express  convictions  may  be  limited only upon the
procedure  established  by  laws and only when it is necessary in
order  to  protect the values indicated in Paragraph 3 of Article
25  of  the  Constitution-health,  honour  and  dignity,  private
life,  and  morals  of  a human being-or to defend constitutional
order;  according  to  Article 145 of the Constitution freedom of
expression  of  convictions  may  also  be limited temporarily by
introducing  a  state  of  war or emergency (Constitutional Court
ruling  of  13  June  2000).  In  this context it should be noted
that  the  validity of limitation of a human right or freedom may
be  assessed  in  a democratic state according to the criteria of
reasonability  and  obvious  necessity,  it must inter alia be in
line  with  the  concept of justice (Constitutional Court rulings
of  13  February  1997  and  13  June  2000).  In its rulings the
Constitutional  Court  has  held more than once that according to
the  Constitution  human  rights and freedoms may be limited only
if  the  following  conditions  are met: this is done by law; the
limitations  are  necessary  in  a democratic society in order to
protect  the  rights  and  freedoms  of other persons, the values
that   are   entrenched   in   the   Constitution,   as  well  as
constitutionally  important  objectives; by restrictions one does
not  deny  the  nature  and  essence  of rights and freedoms; and
when   the   constitutional   principle   of  proportionality  is
followed.
     21.  When  construing  the  content of the entrenched in the
Constitution  freedom  of  information  as an innate freedom of a
human  being,  the Constitutional Court has held: this freedom is
one  of  the  fundamentals of an open, just, and harmonious civil
society  and  state  under  the  rule  of  law,  as  well  as  an
important   pre-condition   for  the  implementation  of  various
rights  and  freedoms  of  the person which are entrenched in the
Constitution,   since  the  person  can  implement  most  of  his
constitutional  rights  and  freedoms in an all-sufficient manner
only  if  he has the right to seek, obtain and impart information
unhindered.   The  Constitution  guarantees  and  safeguards  the
interest  of  the  public  to be informed, inter alia the freedom
of  mass  media  (Constitutional Court rulings of 23 October 2002
and  26  January  2004).  It  should  be  stressed alongside that
freedom   to   express  convictions  and  impart  information  is
incompatible  with  criminal actions-the instigation of national,
racial,    religious,    or    social    hatred,   violence   and
discrimination,   slander  and  disinformation  (Paragraph  4  of
Article   25   of  the  Constitution);  thus  the  constitutional
concept  of  freedom  of  information  (as well as the freedom of
expression   of   convictions)  does  not  comprise  the  seeming
freedom,   which   denies  the  constitutional  values  in  their
essence,  to  perform  criminal  actions indicated in Paragraph 4
of  Article  25 of the Constitution-to spread ideas, views, etc.,
by   which  national,  racial,  or  social  hatred,  violence  or
discrimination  is  instigated,  persons  are  being slandered or
society  or  its  separate members are being misinformed. Freedom
of  information  is  not  absolute, its limits are defined in the
Constitution.   In   this   context   one  should  note  that  in
exercising  rights  and  freedoms,  the  human being must observe
the  Constitution  and  the laws of the Republic of Lithuania and
must   not  impair  the  rights  and  freedoms  of  other  people
(Article  28  of the Constitution). Under the Constitution, it is
not  permitted  to  establish any such legal regulation by which,
while  consolidating  the  guarantees  for  implementation of the
freedom  of  information,  conditions would be created to violate
the  other  constitutional  values  and  the  balance  among  the
constitutional   values   (Constitutional   Court  ruling  of  23
October   2002).   However,   any   restrictions  of  freedom  of
information  must  be  based on the same constitutional criteria,
as  in  case  of  restrictions  of other fundamental human rights
and  freedoms:  freedom of information may be restricted, if this
is   done  by  law,  if  the  restrictions  are  necessary  in  a
democratic   society   in  attempt  to  protect  the  rights  and
freedoms  of  other  persons  and  the  values  entrenched in the
Constitution   as   well   as   the   constitutionally  important
objectives,  if  the  restrictions  do  not  deny  the nature and
essence  of  the  rights  and freedoms, and if the constitutional
principle  of  proportionality  is followed (Constitutional Court
rulings of 23 October 2002 and 26 January 2004).
     22.  with  regard  to  what  has  been  said, the freedom of
creative  activity  of  every  human  being  (which comprises the
freedom  of  process of creation and freedom of spreading results
of  creative  activity), which is entrenched in the Constitution,
has   much   in   common  with  the  constitutional  freedoms  of
convictions  of  a  human  being and their expression, as well as
freedom  of  information.  The constitutional freedom of creative
activity  of  every  human  being (which comprises the freedom of
process   of  creation  and  freedom  of  spreading  products  of
creative  activity),  as  an  innate  right, implies the right of
every  human  being  to  realise  without  hindering his creative
powers  or  abilities in any area of purposeful creative activity
of  human  beings,  where  such activity may (but not necessarily
does)  result  in any material or spiritual values (art, science,
architecture,  technology,  etc.)  which,  from the standpoint of
the  Nation  and/or  individual  communities,  are to be held and
fostered.  In  this  regard  freedom  of  creative  activity is a
condition  of  pluralism  in the society, sapidity and variety of
public life.
     The   human  being  uses  the  freedom  of  the  process  of
creation  without  any hindrance and control, he acts only at his
own  discretion,  by following his own convictions. An attempt to
the   freedom  of  creative  process  may  be  linked  also  with
violation  of  his  right  to privacy and freedom of convictions.
It  should  be  noted  that  the Constitution guarantees to every
human  being  the freedom of the process of creation irrespective
of  true  or  implied  talents,  abilities, his personal or other
characteristics,   legal   status   (inter   alia   belonging  or
non-belonging   to  any  association  of  artists),  as  well  as
irrespective  of  possible  results  of creative activity of that
person,  i.e.  irrespective  of  the  fact  whether  or not these
results  will  be assessed as cultural values (achievements) that
have  any  permanent  value.  In  its  ruling of 1 July 2004, the
Constitutional  Court  held: "The established in the Constitution
notion  of  creative activities is integral, its content does not
depend  inter  alia  upon  a  person,  who  is  engaged  in  it."
According  to  the  Constitution  the  state may not discriminate
any   creative  activity,  prohibit  or  restrict  any  trend  of
creative  activity  only  due  to the fact that in the opinion of
the   legislator  this  creative  activity  and/or  its  possible
results  are  seemingly  not  useful  to society, though they are
not  detrimental  either. The constitutional duty of the state to
ensure  freedom  of  process  of  creation  for every human being
comprises  not  only  its  duty  not to discriminate any creative
activity  itself,  but also to protect and defend this freedom of
a  human  being  from  illegal  encroachment  upon  it  by  other
persons.  Alongside,  one should stress that one may not construe
the  freedom  of  process of creation of every human being, which
originates  from  the Constitution, as the one which implies also
an  opportunity  for a human being to realise his creative powers
and  abilities,  when  such  activity  violates  laws, as well as
rights  and  freedoms  of  other  persons;  freedom of process of
creative  activity  does not deny the liability of the person for
his  activity,  by  which  one  strives to create any material or
spiritual cultural values.
     Freedom  of  spreading  products of creative activity is not
absolute;  the  established in the Constitution limits of freedom
of  spreading  products  of  creative  activity  are  narrower in
comparison  to  the freedom of process of creative activity. Like
the   constitutional  concept  of  freedoms  of  information  and
expression  of  convictions  does not comprise an alleged freedom
of  spreading  the  ideas,  attitudes,  etc.,  by which national,
racial,   or   social   hatred,  violence  or  discrimination  is
instigated,  persons  are  slandered or society or its individual
members  are  misinformed,  the constitutional concept of freedom
of  spreading  products of creative activity does not comprise an
alleged  freedom,  which  denies  in  essence  the constitutional
values,  of  spreading ideas, attitudes, etc., by which national,
racial,   or   social   hatred,  violence  or  discrimination  is
instigated,  persons  are  slandered or society or its individual
members  are  misinformed,  orally,  in  writing, in signs, or by
applying  other  ways and means of transferring information, i.e.
it  does  not  comprise the aforementioned alleged freedom, which
denies  the  constitutional values, to engage in criminal actions
indicated  in  Paragraph 4 of Article 25 of the Constitution. The
Constitution  does  not  tolerate situations where one abuses the
freedom  of  spreading  products  of  creative  activity  as  the
freedom  of  expression  in  general  or any other constitutional
human  right  or  freedom,  where  one uses it as a cover for the
actions,  by  which certain values entrenched in and protected by
the   Constitution  are  denied  in  essence.  The  state  has  a
constitutional  duty  to  establish  such legal regulation, where
one  is  able to ensure that the freedom of spreading products of
creative  activity  will  not be used as a cover while seeking to
attain   the   aforementioned   unconstitutional  objectives.  It
should  be  noted also that according to the Constitution freedom
of  spreading  products of creative activity, like the freedom of
information  and  freedom  of  expression  of convictions, may be
restricted  upon  the  procedure  established by law and this may
be  done  in  cases,  where  it  is  necessary  to protect values
indicated    in    Paragraph    3    of   Article   25   of   the
Constitution-health,   honour  and  dignity,  private  life,  and
morals  of  a  human being, or to defend constitutional order (it
may  be  inter  alia  temporarily  limited by introducing martial
law  or  a  state  or  emergency).  However,  any restrictions of
freedom  of  spreading  products  of  creative  activity  must be
based  on  the  same  constitutional criteria as the restrictions
of  other  fundamental  human  rights  and freedoms: this freedom
may  be  restricted only if this is done by law, only if they are
necessary  in  a  democratic  society  in  order  to  protect the
rights  and  freedoms  of  other  persons,  the  values  that are
entrenched  in  the  Constitution,  as  well  as constitutionally
important  objectives,  only  if by the restrictions one does not
deny  the  nature and essence of rights and freedoms, and only if
the constitutional principle of proportionality is followed.
     23.   By   ensuring   the   freedom   of  creative  activity
(comprising  the  freedom  of  process of creation and freedom of
spreading  products  of creative activity) and freedom of culture
in  general,  pursuant to the Constitution the state has not only
duties  with  negative  content  (inter  alia not to discriminate
any  creative  activity  and to protect this freedom from illegal
encroachment   upon   it  by  other  persons),  but  duties  with
positive content as well.
     It  has  been  held in this Constitutional Court ruling that
every  human  being  has  the  right  to  use  freely the created
cultural  values.  In  the  Constitution  one  has entrenched the
freedom  of  accessibility  to  cultural  values.  This  freedom,
protected  and  defended by the Constitution, is related with the
entrenched  in  Article 25 of the Constitution freedom of a human
being  to  search  for  and obtain information and ideas, and the
compulsory  condition  of the aforementioned freedom-freedom of a
human  being  to  form  his  convictions  and views himself-which
also   originates   from   the   Constitution.   The  freedom  of
accessibility  to  cultural  values  is  related  also  with  the
imperative   of  open  society,  which  is  consolidated  in  the
Constitution:  if  this  freedom is not ensured, the striving for
an open society would suffer damage as well.
     The    entrenched    in    the   Constitution   freedom   of
accessibility  to  cultural values implies also the negative duty
of  the  state  to  ensure  that human being is not hindered from
free  use  of  the created cultural values, and the positive duty
of  the  state  to  adopt  such  decisions,  which  would  create
material,  organisational  and  legal  pre-conditions  for making
cultural  values  available to a bigger number of people, and for
allocating  funds  from the budget to the protection of monuments
of  science,  art,  history,  architecture,  other  monuments and
values  of  culture,  as well as to the establishments of culture
(museums,    theatres,    libraries,    organisations   arranging
concerts,  etc.).  The constitutional imperative of accessibility
to  cultural  values  implies  the duty of the state to establish
and  maintain  state institutions (establishments or enterprises)
through  which  functions  of  the state are performed, which are
aimed   at   maintaining,  propagating  and  developing  national
culture,  the  value  protected and defended by the Constitution,
(inter   alia  establishments  or  enterprises  providing  public
cultural  services)  or  at  initiating  and encouraging in other
way    the    establishment    and    maintenance    of    other,
non-governmental,   institutions,   the   purpose   of  which  is
development  of  culture.  The legislator enjoys broad discretion
in  the  area of establishment of bases of the system of cultural
establishments   and   other  institutions  (inter  alia  of  the
establishments   or  enterprises  providing  services  of  public
culture),  the  purpose  of  which is to take care of development
of   culture;  institutions  of  executive  power,  within  their
competence,   enjoy  broad  discretion  in  this  area  as  well;
establishment  of  bases  of  the system of cultural institutions
(inter  alia  of  the  establishments  or  enterprises  providing
services  of  public  culture),  the  purpose of which is to take
care  of  development  of culture, is a matter of cultural policy
of  the  state.  On the other hand, when forming and implementing
the  cultural  policy,  one must pay heed to the resources of the
state  and  society,  material  and financial capabilities of the
state  and  society,  as  well  as other important factors, inter
alia  expediency.  However, it should be stressed that, according
to  the  Constitution,  there  may  be  no  such legal regulation
where  the  state  does  not  substantially support the system of
institutions contributing to development of culture.
     24.  The  entrenched  in the Constitution freedom of culture
is  to  be  construed  while  taking account also of the right of
union   of  citizens  or  freedom  of  association,  one  of  the
fundamental  rights  of a citizen of a democratic state, which is
consolidated  in  Article  35  of  the Constitution. To belong or
not  to  any  association-the  person  makes this decision on his
free  will  (Constitutional Court rulings of 21 December 2000 and
1  July  2004).  The  unions provided for in the Constitution are
founded  and  act  in  the  interests of their members. The basic
element   of  the  constitutional  legal  status  of  the  unions
provided  for  in the Constitution is their autonomy in regard to
the   state  governing  bodies,  and  other  state  or  municipal
institutions,   in  other  words-the  public  power.  Only  being
autonomous  in  regard  to  the state governing bodies, and other
state  and  municipal institutions the unions may efficiently act
as  an  important  element  of  the  civil  society, be a form of
self-expression   of   citizens  of  a  democratic  state  and  a
guarantee  of  public  activity (Constitutional Court ruling of 1
July 2004).
     One  may  enjoy  the  freedom  of  culture  (comprising  the
freedom  of  creative  activity  and  freedom of accessibility to
cultural  values),  like  most of the other constitutional rights
and  freedoms,  not  only  individually,  but  through the unions
provided  for  in  Article  35 of the Constitution as well. It is
not  permitted  to  establish  any requirements or limitations on
the  activity  of  artists,  nor to prevent them or other persons
from  founding  associations  that  spread  culture and/or defend
material and spiritual interests of artists.
     25.  A  necessary condition of the freedom of culture, as an
innate  freedom  of a human being (which comprises the freedom of
creative  activity  and  freedom  of  accessibility  to  cultural
values)   is  support  to  culture,  as  well  as  protection  of
cultural  monuments  and values. It has been mentioned that it is
established  in  Paragraph  2  of  Article 42 of the Constitution
that   the  state  supports  culture  and  science  and  protects
Lithuanian  historical,  art,  and  cultural  monuments and other
culturally   valuable   objects.   It   has  been  held  in  this
Constitutional  Court  ruling  that  support  and  protection  of
culture  by  the  state is an important function of the state and
a  public  interest. It should be stressed that the provisions of
Paragraph  2  of  Article  42 of the Constitution are imperative:
not  only  do  they  specify that culture must be supported, that
cultural  monuments  and  culturally  valuable  objects  must  be
protected,  but  also they consolidate the entity, which has both
positive   and   negative   duties  to  ensure  that  culture  is
supported   and   cultural   monuments  and  culturally  valuable
objects are protected, which namely is the state.
     Paragraph  2  of  Article  42  of  the Constitution is to be
construed  by  taking  account  of  the  fact  that,  as  already
mentioned,   the  constitutional  concept  of  culture  comprises
various  values  held  and nourished by the Nation and individual
communities,   including   historical   experience,   spoken  and
written  language,  etc.,  as  well  as  of  the fact that in the
constitutional  concept  of  culture  one  defines  a  purposeful
material  and  spiritual  creative  activity  of human beings and
its  results,  inter  alia  art  and  science. In this regard the
constitutional  bases,  entrenched  in  Paragraph 2 of Article 42
of  the  Constitution  comprise  also  the  established  in  this
paragraph  duty  of  the  state  to  support  science,  while the
constitutional  bases  of  protection  of  cultural monuments and
culturally   valuable  objects,  entrenched  in  Paragraph  2  of
Article  42  of  the Constitution, comprise also the consolidated
in  this  paragraph  duty  of the state to take care of monuments
of Lithuanian history and art.
     The   provisions  of  Paragraph  2  of  Article  42  of  the
Constitution  that  the  state  supports  culture and science and
takes   care   of   Lithuanian   historical,  art,  and  cultural
monuments  and  other  culturally  valuable objects mean that the
state   is  constitutionally  obligated  to  support  and  foster
culture   as   a   national  value  of  universal  importance-the
material  and  spiritual  creative  activity and its results that
are  to  be  transferred  to future generations; according to the
Constitution,  the  state  must  not  only refrain from hindering
the   natural   development   of   culture   (inter   alia   from
discriminating   against  any  creative  activity),  but  by  its
positive  decisions  (inter  alia legal regulation) encourage and
support  by  using  state funds and other resources the creation,
spreading,  propagation  and  preserving  material  and spiritual
cultural   values.   It   should   be  noted  that  decisions  of
institutions  of  public  power  regarding  the  state support to
institutions  or  separate  artists engaged in cultural activity,
as  well  as  separate  initiatives developing culture (projects,
programs)  must  be  adopted  while paying heed to the principles
of  equal  rights  of all persons and honest competition, as well
as  the  requirement  of  publicity,  which are entrenched in the
Constitution.  The  imperative  of  a  just  society  and  social
harmony,  which  is  consolidated  in  the  Constitution, implies
that  while  supporting  culture  (inter  alia creative activity)
one  must  pay  heed  to  the resources of the state and society,
material   and   financial   capabilities   and  other  important
factors, inter alia expediency.
     26.  It  has  been  held in this Constitutional Court ruling
that  state  support  to  culture,  and  protection  of  cultural
monuments  and  culturally  valuable objects is a public interest
and  an  important  function  of the state. It has also been held
that  pursuant  to  the  Constitution  there may be no such legal
regulation  where  the  state  does not substantially support the
system  of  institutions  contributing to development of culture.
The   constitutional  consolidation  of  culture  as  a  publicly
important  value  results  in  the  support  of  culture  on  the
national scale.
     The   Seimas   enjoys  the  discretion  to  establish  which
institutions  form  and  implement  the  policy  of  culture, and
perform  the  function  of  state  support  to  culture  and  its
protection.  In  Lithuania  there  is  an  established  tradition
(similar  to  majority  of  states) it is the Ministry of Culture
that  enjoys  wide range of powers when implementing the cultural
policy.
     27.  It  has  been mentioned that certain state functions of
may   also   be   transferred   by  laws  to  municipalities  for
execution,  and  that  the  legislator enjoys broad discretion to
establish  by  law,  what  functions  (all  or  some of them to a
certain  extent)  are  assigned  to  municipalities.  It has also
been  mentioned  that  performance  of  certain  functions of the
state  may  not  be  objectively  non-transferred  (at least to a
certain   extent)   to   municipalities,   because  otherwise  an
efficient performance of such functions would not be ensured.
     In  the  context of the constitutional justice case at issue
one  should  stress  that  it is such function of the state which
constitutes  support  and  protection  of  culture. The fact that
the  above-mentioned  function  of  the  state  may  not  be  not
transferred  at  least  to  a certain extent to municipalities is
caused   by   the   nature   of  both  this  function  and  local
self-government    as   self-administration   and   self-activity
according  to  the  competence  defined  in  the Constitution and
laws  of  the  territorial  communities  of  administrative units
that  are  provided  for in laws. The spread of culture is, first
of  all,  its  spread  in  the  closest  environment, territorial
surroundings  among  those  who  live  in  the respective area on
whose   territory   certain   cultural   objects   are   located;
accessibility  to  cultural  values  implies  first  of all their
accessibility  to  the members and residents of community, in the
territory  of  which  respective  cultural  objects  are located;
cultural  establishments  (museums,  theatres, libraries, concert
organisations,   etc.)   function   in   certain   administrative
territorial  units,  localities;  cultural  monuments  and  other
objects  of  culture are located also in certain territories, the
local  authorities  (their  institutions or officials) possessing
which   may   not   avoid   respective   obligations  related  to
maintaining  of  these  monuments,  ensuring  their accessibility
etc.;  creators  are  also  members  of  territorial communities;
associations  of  creators  function in particular administrative
territorial  units,  thus the state support to creators and their
associations  may  be  rational  and  efficient only if one takes
account  of  the  local  conditions,  in  which  creators act and
their  association  function;  etc.  Moreover,  state support and
development  of  culture  as  a  constitutionally  protected  and
defended   value   would   be  impossible,  if  culture  was  not
developed  in  regions,  separate  parts  of the territory of the
state,  separate  self-governing  territorial  communities, which
form  a  part  of  the  entire  community  of the state-the civil
Nation.
     The  extent  to  which  the  performance  of the function of
support  and  protection  of  culture  should  be  transferred to
municipalities  is  subject  to  the state policy of culture. The
legislator  enjoys  broad  discretion in this regard. However, he
must  pay  heed to the independence of municipalities and freedom
of  their  activity  within  the  competence  established  by the
Constitution   and  laws,  the  principles  of  co-ordination  of
interests  of  municipalities  and  the  state,  as  well  as the
constitutional concept of local self-government.
     Alongside  it  should  be  noted  that the fact that support
and  protection  of culture as a function of the state may not be
to  a  certain  extent not transferred to municipalities does not
mean  that  the  state  (its  institutions)  may opt out from the
performance  of  this  function.  It  was  held  that  a relation
exists   between  the  administration  of  the  state  and  local
self-government,  which  manifests  itself inter alia in the fact
that  centralised  governance  of  the  state  in  administrative
territorial  units  is  combined  with  decentralisation, that in
the   laws   one  consolidates  cooperation  of  institutions  of
central   power  and  municipalities,  that  the  state  supports
municipalities  in  various  ways  and forms, as well as that the
state,  in  the  forms  defined  by  laws, supervises activity of
municipalities  and  coordinates  joint  actions of the state and
municipalities   when   striving   for   the   important   social
objectives.  Thus,  to  whatever  extent  the  execution  of  the
aforementioned   function   is   transferred  to  municipalities,
according  to  the  Constitution  the  state  still has a duty to
ensure that this function is performed properly.
     28.   It   has   been   mentioned   that  according  to  the
Constitution  functions  of  municipalities  may  be  established
only  by  means  of a law; this may not be done by a substatutory
legal  act.  In  this  context  one should also note that support
and  protection  of  culture in the Constitution is not expressis
verbis   consolidated   as   the   function   which  is  assigned
exceptionally   to   municipalities   (respective  competence  of
municipalities    is    not    directly   consolidated   in   the
Constitution).  Thus,  the  duty of municipalities to perform (to
a  certain  extent)  the  function  of  support and protection of
culture  may  be established by the law only; only by the law one
may  establish  respective  competence of municipalities as well.
The  originating  from  the  Constitution  requirements  of legal
clarity  are  applicable  to  such  laws:  the  legal  regulation
established  therein  must  be  such  that  it  is  clear to what
extent  do  municipalities  perform  this  function  and  to what
extent the performance of it is left to the state.
     Due  to  the fact that according to the Constitution one may
not  assign  to  the  institutions  of  self-government  any such
function  which  they  are not able to perform, a duty appears to
the  legislator  to  establish  by  laws  such  legal regulation,
where,  having  taken into account resources, as well as material
and  financial  capabilities  of the state and society, and other
important  factors  one  would  ensure  (to a certain extent) the
financing  (inter  alia from the state budget) of the function of
support  and  protection  of  culture,  which  is  transferred to
municipalities.   The   municipalities   (their  institutions  or
officials),  the  councils of which enjoy powers, pursuant to the
Constitution,  to  draw  up  and  approve  an independent budget,
have  also  a duty to adopt decisions according to the competence
defined  by  the  Constitution  and  laws  so that funds that are
necessary  for  implementation  of their functions are raised and
used  in  a  proper  manner;  they  are  in  charge of sufficient
execution  of  functions  transferred to them. However, it should
be  held  that  the  constitutional consolidation of culture as a
national  value  of universal importance does not permit to place
the   burden   of   providing  funds  to  the  institutions  that
contribute  to  the  development  of  culture  on  municipalities
only.
     29.  It  has  been  held in this Constitutional Court ruling
that  pursuant  to the Constitution the state has a duty to found
and  provide  funding  to  the state institutions (establishments
or   enterprises,  through  which  functions  of  the  state  are
performed)  whose  objective  would be taking care of development
of  culture  (inter  alia establishments or enterprises providing
public  cultural  services), or to initiate or encourage founding
and  providing  support  to  other-non governmental-institutions,
the  purpose  of  which is taking care of development of culture,
as  well  as  that  according to the Constitution there may be no
legal   regulation   where   the  state  does  not  substantially
maintain   the   system   of  institutions  contributing  to  the
development of culture.
     In   order  to  perform  (to  the  established  extent)  the
function   of   supporting   and  protecting  culture,  which  is
transferred  to  them,  and to implement their competence in this
area   municipalities  may  and,  in  certain  cases,  must  have
respective  institutions  that  contribute  to the development of
culture  (inter  alia  institutions  or  enterprises that provide
services  of  public  culture),  which  are  found,  reorganised,
restructured  in  any  other  way or liquidated by municipalities
(their  institutions)  in  line  with requirements established in
laws.
     The  legislator,  while paying heed to the Constitution, may
establish  by  laws  certain  conditions  and/or procedure, which
must  be  followed  by  municipalities  when  implementing  their
rights  of  the  founder  of  institutions  or enterprises (inter
alia  establishments  or  enterprises  that  provide  services of
public  culture)  that are founded by them and that contribute to
the  development  of  culture,  as well as other limitations that
restrict  to  a  certain  extent  the rights of municipalities as
the  founders  of  respective  establishments  or enterprises and
guarantee   that   municipalities   will   properly  perform  the
function   of   support   and  protection  of  culture  which  is
transferred to them (to the established extent).
     30.  It  has  been  mentioned  that due to the fact that the
public  interest,  which must be ensured by local self-government
as  well,  and  particular tasks that are faced within particular
period   by   the   whole  society,  the  state  and  territorial
communities,  are  dynamic  and  they  are subject to change, the
legislator  may  and, in certain cases, must change by means of a
law  (expand,  narrow  or  correct  it  otherwise)  the scope and
content  of  functions that are transferred to municipalities, or
transfer  new  functions, which were previously not performed, to
be    performed   by   municipalities   and/or   establish   that
municipalities  cease  to  perform  certain functions, which were
performed  earlier;  in  addition, it has been mentioned that the
legislator   may,   and   in   certain   cases   even  must  also
respectively    correct    the   competence   (empowerments)   of
municipalities   (their  institutions  or  officials),  which  is
needed   in   order  to  perform  the  functions  transferred  to
municipalities.
     The  cultural  policy  of  the  state cannot be non-dynamic,
either;   its  formation  and  implementation  are  corrected  by
taking  various  factors  into account. Therefore, the content of
the  function  of  support  and  protection  of culture, which is
transferred  to  municipalities  by  law,  may be changed by law,
the  extent,  to  which  the  municipalities  are  assigned  with
performance  of  this  functions  may  be  extended or reduced by
laws.  In  the context of the case at issue it is to be held that
in   order   to   more   efficiently   ensure  the  interests  of
municipalities,  to  better  take into consideration of the local
conditions   of  the  localities  in  which  creators  and  their
associations  act,  to  bring  the  spread  of  culture closer to
territorial   communities,   to  decentralise  administration  of
culture,   as  well  as  by  other  reasons  (first  of  all  the
expediency),  one  may  commission  municipalities  by  laws with
performance   of  the  function  of  support  and  protection  of
culture  to  a  greater  extent-the  performance of this function
(to  a  certain  extent)  may  be  transferred  from the national
level  to  municipal  level.  Alongside, the reverse process when
the  performance  of  the  aforementioned functions (to a certain
extent)  is  transferred  from  municipal  level  to the national
level, is, in general, not impossible as well.
     When  transferring  the performance (to a certain extent) of
the  function  of  support  and  protection  of  culture from the
national  level  to  municipal  level,  one  must pay heed to the
constitutional  concept  of local self-government, the entrenched
in  the  Constitution  independence of municipalities and freedom
of  their  activity  within  the  competence  established  by the
Constitution   and  laws,  the  principles  of  co-ordination  of
interests  of  municipalities  and  the  state,  and interests of
municipalities;  one  may  not  establish  to municipalities such
obligations,  which  they are unable to fulfil; if necessary, one
should  correct  (increase or reduce) funding of the functions of
respective municipalities.
     31.   The   above-mentioned   transfer   of  performance  of
functions  (to  a  certain  extent)  of support and protection of
culture  from  the  national  level  to  municipal  level  may be
related   to   the  change  of  subordination  of  certain  state
institutions  (establishments  or  enterprises), the objective of
which  is  to  take  care  of  development of culture (inter alia
establishments  or  enterprises  that  provide services of public
culture),  whereby  the  administration of such establishments is
transferred  from  the  system  of  state administration to local
self-government.   The  legislator,  while  paying  heed  to  the
Constitution,  may  establish  by  laws certain conditions and/or
procedures,   which  must  be  followed  by  municipalities  when
exercising  the  rights  of the founders of the establishments or
enterprises   (inter  alia  establishments  or  enterprises  that
provide  services  of  public  culture)  that  are transferred to
municipalities  and  contribute to the development of culture, as
well  as  other  limitations  restricting to a certain extent the
rights    of    municipalities    as   founders   of   respective
establishments  or  enterprises,  which  would  ensure the proper
performance  of  the  transferred  to  them (to a certain extent)
function of support and protection of culture.
     It   has   been   held   that   assignment   of   any  state
establishment   or   enterprise   to   municipality  (inter  alia
transfer  of  rights  of  the  founder  of  this establishment or
enterprise)  must  be based on the law, and that this requirement
originates   from   the   Constitution.   Thus,   the  change  of
subordination    of   state   institutions   (establishments   or
enterprises),   the  objective  of  which  is  to  take  care  of
development    of   culture   (inter   alia   establishments   or
enterprises  that  provide services of public culture) may not be
based  not  on  the  law;  this  requirement  originates from the
Constitution  as  well.  The constitutional requirements of legal
clarity   and   legal  certainty  are  applicable  to  the  legal
regulation,  according  to  which  a respective state institution
enjoys  powers  to  issue  legal  acts,  on  the basis of which a
particular  state  institution (establishment or enterprise), the
objective  of  which  is  to  take  care  of  the  development of
culture  (inter  alia  establishment  or enterprise that provides
services  of  public culture), is assigned to municipality (inter
alia   the  rights  of  the  founder  of  this  establishment  or
enterprise  are  transferred):  it must be such, that it is clear
whether  the  rights  of  municipalities,  as  of the holder (the
sole  holder  or holder in partnership with other entities, inter
alia  state  institutions)  of  the  rights  of  the founder of a
respective  establishment  or  enterprise,  are restricted to any
extent  or  no such restrictions have been established, moreover,
it  should  not  establish  any  uncertainty  whether  respective
establishments  or  enterprises  are financed or supported in any
other  way  by  municipality, or the state (its institutions), or
whether  the  burden  of  financing is divided in any way between
municipality  and  the  state  (its  institutions),  whether  the
powers  of  control  or  supervision  of  these establishments or
enterprises  are  vested  in  municipality  (its  institutions or
officials),  or  the  state  (its  institutions or officials), or
both  municipality  (its institutions or officials) and the state
(its  institutions  or  officials),  etc.  Municipalities must be
informed  about  the  foreseen  transfer  of  the above-mentioned
institutions to them.
     In  the  context  of  the case of the constitutional justice
at   issue  one  should  note  that  when  the  respective  state
institution  transfers  the  cultural establishment or enterprise
to  the  municipal  level  (inter  alia  when  one  transfers the
rights  of  the  founder  to municipality), the state may and, in
certain  cases,  must  establish  by the law various restrictions
applicable  to  municipality,  which  must  be  followed  by  the
latter  when  exercising  the  rights  of the founder, inter alia
when  adopting  decisions  on  reorganisation, liquidation or any
other  restructuring  of  establishments  or enterprises that are
transferred  to  municipalities.  In  certain cases, if the state
establishes  no  such  restrictions applicable to municipalities,
performance   of  the  function  of  support  and  protection  of
culture,  which  is  transferred  to  the  municipal level, would
become  more  difficult  or municipalities could even refuse to a
certain  extent  the  performance  of the function of support and
protection  of  culture,  which is set as their function by laws.
This  restriction  of  independence  of municipalities originates
from  the  Constitution and in itself should not be considered as
disregard  of  interests  of  municipalities; by this restriction
originating  from  the Constitution one ensures the co-ordination
of interests of municipality and the state.
     In  this  context  one should mention that the observance of
the  Constitution  and  the laws, as well as the execution of the
decisions  of  the  Government by municipalities is supervised by
representatives  appointed  by  the  Government  (Paragraph  2 of
Article 123 of the Constitution).
     In  its  decision  of  11  February 2004, the Constitutional
Court  held  that  while  defining  the  competence  of municipal
councils   and   executive   bodies   accountable  to  them,  the
legislator  can  also  establish  the procedure of realisation of
this   competence,  the  supervision  and  control  of  municipal
activities,  as  well  as  the  officials  who  enjoy  powers  to
control  or  supervise  the  activities of municipal councils and
executive   bodies   accountable   to   them;   respective  state
officials  (civil  servants and other persons irrespective of how
they  are  referred to in laws) have the right to adopt decisions
upon  which  depend  the adoption and implementation of decisions
of  municipal  councils  within  their  competence defined by the
Constitution   and   laws.   Thus,  the  powers  of  control  and
supervision  of  decisions  of municipalities (their institutions
or  officials)  may be assigned by laws (while paying heed to the
entrenched  in  the  Constitution  independence of municipalities
and  freedom  of their activity within the competence established
by  the  Constitution  and  laws, the principles of co-ordination
of  interests  of  municipalities  and  the state, as well as the
constitutional  concept  of local self-government) to other state
institutions (their officials) as well.
     32.  It  has  been  held in this Constitutional Court ruling
that  one  must  provide  funding  (inter  alia  from  the  state
budget)  for  the  function  of support and protection of culture
that  is  transferred  (to  a  certain extent) to municipalities,
that  the  prohibition  originates from the Constitution to place
the  burden  of  funding  the institutions that contribute to the
development  of  culture solely on municipalities, as well as the
prohibition  for  the  state  not  to  substantially  support the
system  of  institutions  that  contribute  to the development of
culture.  It  has also been mentioned that in order to be able to
perform  the  transferred  to them (to a certain extent) function
of   support   and  protection  of  culture  and  exercise  their
competence  in  this  area  municipalities  may  and,  in certain
cases,  must  have respective institutions that contribute to the
development    of   culture   (inter   alia   establishments   or
enterprises  that  provide  services  of public culture) and that
are  founded,  reorganised  or  restructured in any other way, or
liquidated  by  municipalities  in  line  with  the  requirements
established  in  laws,  as  well as the municipalities themselves
(their   institutions   or   officials)  have  a  duty  to  adopt
decisions   according   to   their   competence  defined  in  the
Constitution  and  laws,  which are aimed at collecting necessary
funds  for  performance  of  their functions and that these funds
are used in a proper manner.
     By  right  of  ownership  municipalities  may  own  only the
property  which  they need in order to perform the aforementioned
function   (to   the   established  extent).  Municipalities  are
subjects  to  the right of ownership. Beside that, municipalities
possess  by  right  of trust certain property, needed in order to
perform   the   above-mentioned  functions  (to  the  established
extent),  which  is  owned  by  the  state by right of ownership.
Both  the  property,  which  belongs  by  right  of  ownership to
municipalities,  and  the  property,  which  belongs  by right of
ownership  to  the state and which is possessed by municipalities
by   right   of  trust,  comprise  the  material  basis  for  the
performance   of  the  function  of  support  and  protection  of
culture   that   is   transferred   (to   a  certain  extent)  to
municipalities.
     In  this  context  one  should  stress  that  the  change of
subordination  of  a  certain state institution (establishment or
enterprise)  the  objective  of  which  is  to  take  care of the
development    of   culture   (inter   alia   establishments   or
enterprises  that  provide  services of public culture), when the
administration  of  this  establishment  is  transferred from the
system  of  administration  of  the  state to self-government, in
itself   does  not  mean  that  in  every  case  the  state-owned
property  (its  part)  that  is  possessed by this institution by
right  of  trust or other (non-ownership) right is transferred to
municipal  ownership.  One  may  transfer  state-owned  property,
inter  alia  the  one  which  is  possessed  by another person by
right  of  trust,  to  municipal ownership only while paying heed
to the Constitution and acting in line with laws.
     33.  It  has  been  mentioned  that  in  the  constitutional
justice  case  at  issue,  when  deciding whether the Law "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture"  (wording  of 13 June 1995) and Items 1, 2.3 and 2.4
of  Government  Resolution  No. 1320 "On the House of Signatories
to  the  Act  of  Independence  of  Lithuania  and  the  House of
Artists  of  Lithuania"  of  28 November 1997 are not in conflict
with  Paragraph  2 of Article 120 of the Constitution, one should
take  account  of  the  provisions of Articles 23, 47, and 128 of
the  Constitution  that  consolidate  the constitutional bases of
relations  of  ownership  in the Republic of Lithuania, and links
of   these   relations  with  the  indicated  by  the  petitioner
provision  of  Paragraph  2  of  Article  120 of the Constitution
that  municipalities  act  freely  and independently within their
competence,  which  shall  be established by the Constitution and
laws,  and  other provisions of the Constitution that consolidate
the constitutional concept of local self-government.
     34.  It  is established in Paragraph 2 of Article 128 of the
Constitution  that  the procedure concerning the possession, use,
and  disposal  of  state-owned  property  shall be established by
law.
     When   construing   Paragraph   2  of  Article  128  of  the
Constitution,  the  Constitutional Court held in its ruling of 30
September   2003:   the   constitutional   imperative  "ownership
obligates"  is  to  be  addressed also to the state and municipal
institutions   and  officials  that  have  the  powers  to  adopt
decisions  concerning  the  possession,  use  and disposal of the
property  which  belongs  to the state by right of ownership; one
may  not  establish any such legal regulation, where the property
that  belongs  to  the  state  by  right  of  ownership  would be
possessed,  used  and  disposed  of  in  such  a  manner that the
interests  or  needs of only one social group or separate persons
would  be  satisfied and this property would not serve the public
interest,  need  of society, welfare of the Nation (which may not
be   understood   only  in  the  material  or  financial  sense);
state-owned  property  is  not  an  end in itself, it must render
benefit   for   the   society;   state-owned   property  must  be
possessed,  used  and disposed of lawfully; this is supervised by
state control.
     35.  The  provision  of  Paragraph  2  of Article 128 of the
Constitution  that  procedure concerning the possession, use, and
disposal  of  state-owned property is established by law is to be
construed  in  the  context  of  the  provision of Paragraph 1 of
Article   23   of   the   Constitution  that  property  shall  be
inviolable  and  the  provision  of  Paragraph  2 of this article
that the rights of ownership shall be protected by laws.
     Inviolability  of  property  is  a  constitutional principle
defended  by  law.  Nobody  may seize property arbitrarily and on
other  than  legal  basis. The right to demand that other persons
do  not  violate  his  right  of  ownership  and  that  the state
ensures  the  protection of his ownership rights is guaranteed by
the Constitution to the subject of ownership-the owner.
     When   construing   Paragraph   2  of  Article  128  of  the
Constitution  together  with  Paragraphs 1 and 2 of Article 23 of
the  Constitution,  the  Constitutional  Court  has held that the
provision  of  Paragraph 2 of Article 23 of the Constitution that
the  rights  of  ownership  shall be protected by laws means that
the  laws  must  protect the rights of all owners, therefore also
the  right  of  ownership of the state as the organisation of the
entire  society  (Constitutional  Court  ruling  of  30 September
2003).  According  to  Paragraphs  1  and  2 of Article 23 of the
Constitution,   the   rights   of  ownership  of  the  state  and
municipalities   (territorial   communities)  are  protected  and
defended  as  well.  The provision that the Constitution protects
and  defends  the  rights  of ownership of municipalities as well
is  followed  in  the  jurisprudence  of the Constitutional Court
(Constitutional Court ruling of 23 June 1999).
     36.  Pursuant  to  the  Constitution,  state-owned  property
must  be  preserved and not misappropriated. Of course, this does
not  mean  that  it  may not be transferred to ownership of other
entities   (save   the   exceptions   that   originate  from  the
Constitution itself).
     When   construing   Paragraph   2  of  Article  128  of  the
Constitution,   the   Constitutional  Court  has  held  that  the
transfer   of   property   as   ownership   (also  including  its
privatisation),  which  belongs  by  right  of  ownership  to the
state  to  other  entities  may  be  constitutionally justifiable
only  if  it  renders  more  benefit to the society, when by this
transfer  significant,  constitutionally grounded needs/interests
of  society  are  sought  to  be  satisfied.  Such transfer (both
repayable    and    gratuitous)    would    be   constitutionally
unjustifiable  if  it  caused  evident  harm  to the society, and
violated  the  rights  of  other  persons.  The  transfer  of the
property  which  belongs  by  right  of ownership to the state as
ownership  to  other  entities must be based on the law. The laws
must  inter  alia establish the state institutions which have the
powers   to  adopt  decisions  concerning  the  transfer  of  the
property  which  belongs  by  right  of ownership to the state as
ownership   to   other   entities,   and   the  powers  of  these
institutions  to  transfer  the  said  property,  as  well as the
conditions  and  procedure  of  this transfer of the property. It
is  not  permitted  to  establish such legal regulation according
to  which  the  property  that  belongs  to the state by right of
ownership  would  be  transferred  as ownership to other entities
in  order  to  satisfy  the interests or needs of only one social
group  or  individual  persons,  if this does not comply with the
need  of  society,  the  public  interest,  or does not serve the
welfare   of  the  Nation  (Constitutional  Court  ruling  of  30
September 2003).
     Moreover,  as  already mentioned in the Constitutional Court
ruling  of  30  September  2003,  the legislator, while observing
the  Constitution  and  taking  account  of  various factors, may
establish  the  legal  regime  (conditions  and  procedure of the
use)  of  the property which is being transferred as ownership to
other  entities  in  order  to further safeguard the interests of
the  society,  the  welfare  of  the Nation, and to implement the
values which are entrenched in the Constitution.
     It  is  to  be  held  that  one  must  pay heed to all these
constitutional  requirements  also  when the subordination of the
particular  state  institution (establishment or enterprise) that
contributes   to   the   development   of   culture  (inter  alia
establishment  or  company providing public cultural services) by
transferring   its   administration  from  the  system  of  state
administration  to  self-government. Otherwise, one would violate
the  imperative  of  an open, just, and harmonious civil society,
which  is  entrenched in the Constitution, and the constitutional
principle of a state under the rule of law.
     It  has  been  mentioned that the change of subordination of
a  particular  state  institution (establishments or enterprise),
the  objective  of  which  is  to take care of the development of
culture,  (inter  alia  establishments  or  enterprises providing
public   cultural  services)  when  the  administration  of  this
establishment  or  enterprise  is  transferred from the system of
state  administration  to  self-government,  does not mean itself
that  in  all  cases the state-owned property (its part) that was
possessed   by   municipality   by   right   of  trust  or  other
(non-ownership)  right  is  transferred  to  the ownership of the
latter.
     Alongside   one   should   note   that   when  changing  the
subordination  of  a  particular state institution (establishment
or  enterprise),  the  objective  of which is to take care of the
development   of   culture,   (inter   alia   establishments   or
enterprises   providing   public   cultural  services)  when  the
administration   of   this   establishment   or   enterprise   is
transferred   from   the   system   of  state  administration  to
self-government,  one  may  decide  the issue of ownership of the
state-owned  property  that  was  possessed  by right of trust by
the  institution  (establishment  or  enterprise)  which is being
transferred   to  the  municipality.  This  (as  well  as  other)
state-owned   property   may   be  transferred  to  a  respective
municipality  as  ownership as well. This may be done only on the
bases  and  upon  the  procedure  established  by  laws;  if  the
aforementioned  property,  on  the  bases  and upon the procedure
established   by   laws,  is  not  transferred  to  a  respective
municipality  as  ownership, in all cases it remains ownership of
the  state,  which  may  be  possessed by right of trust or other
(non-ownership)    right    by   the   respective   municipality,
institution or, if this is provided for by laws, other persons.
     37.  The  provision  of  Paragraph  2  of Article 128 of the
Constitution  that  the procedure concerning the possession, use,
and  disposal  of  state-owned  property  shall be established by
law  is  to  be construed also in the context of the provision of
Paragraph  1  of Article 47 of the Constitution that the right of
exclusive  ownership  of  the  subterranean,  as well as internal
waters,  forests,  parks,  roads,  historical, archaeological and
cultural   objects  of  state  importance  shall  belong  to  the
Republic of Lithuania.
     It  should  be  noted  that  despite  several  amendments to
Article  47  of  the  Constitution,  the aforementioned provision
was  present  in  the  Constitution  all the time (Paragraph 3 of
Article  47  of  the  Constitution  (wording of 25 October 1992),
Paragraph  4  of  Article  47  of the Constitution (wording of 20
June  1996),  and  Paragraph  1 of Article 47 of the Constitution
which  is  effective at present (wording of 23 January 2003)) and
it was not amended.
     It  is  to  be  held  in  this  case  of  the constitutional
justice  at  issue  that  while paying heed to the constitutional
concept  of  culture  (comprising,  as  already  mentioned, quite
diverse  values  held  and  nourished  by the Nation and separate
communities),   the   notion   of   cultural   objects  of  state
importance,  which  is  used  in Paragraph 1 of Article 47 of the
Constitution,   is   general,   it   comprises   historical   and
archaeological  objects  of  state importance as well, but is not
limited  to  them;  it  is  much  broader.  This notion comprises
diverse  property-  real  property,  movable  property,  property
that  is  to  be  attributed  to  the  cultural heritage and that
recognised  upon  the  established  procedure as the one of state
importance.  Moreover,  other objects specified in Paragraph 1 of
Article  47  of  the  Constitution  (for  example, parks of state
importance)  may  be considered also as cultural objects of state
importance.
     38.   Culture   (when   this   notion   is   used   in   its
constitutional  sense)  is  always related with valuable objects.
The  Constitution  does  not create preconditions for recognising
every  cultural  object  that is to be attributed to the cultural
heritage,  even  of  the  greatest  value,  as  the  one of state
importance.  It  is  not  any  cultural object, attributed to the
cultural  heritage,  but  only the cultural object, the permanent
value  and  importance  of  which  is  great and the necessity to
preserve  it  for  the  future generations is such insistent that
without  recognising  it of state importance a threat would arise
to  its  preservation  and  its accessibility to the public would
not  be  ensured,  that  may  be  recognised  as the one of state
importance.
     It  is  to be noted that the recognition of cultural objects
as  the  ones of state importance implies a special regulation of
relations  linked  to the maintenance, protection and use of such
cultural   objects.   Having   taken  into  account  the  special
permanent  value  and  importance of the above-mentioned cultural
objects,  as  well  as  the necessity to preserve them for future
generations,  in  regard  to the aforementioned cultural objects,
in  comparison  to  other  objects,  one  must establish special,
exceptional legal regime by law.
     It  has  been mentioned that the freedom of accessibility to
culturally  valuable  objects-freedom  of  every human to use the
created   culturally   valuable   objects-is  entrenched  in  the
Constitution.  Therefore  the  legal regime established in regard
to  the  cultural  objects of state importance must be such where
one  ensures  the  accessibility  to  the aforementioned cultural
objects  to  the  public  and, alongside, does not inflict damage
upon  these  valuable  objects,  nor  denies other constitutional
values.
     The   established  by  the  law  legal  regime  of  cultural
objects  of  state  importance  may  comprise  inter alia various
prohibitions,  obligations,  other  restrictions  or  limitations
related   to  possession,  use  or  disposal  of  these  cultural
objects.  This  legal  regime  may  be  differentiated  by taking
account  of  the  character  (inter  alia  the  fact  whether the
respective   cultural   objects  are  real  property  or  movable
property),  features,  and  other  factors of respective cultural
objects.
     The  state  (its  respective institutions or officials) have
a  duty  to  control how the aforementioned legal regime is being
followed.
     39.  The  provision  of  Paragraph  1  of  Article 47 of the
Constitution  that  the  right  of  exclusive  ownership  of  the
subterranean,   as  well  as  internal  waters,  forests,  parks,
roads,  historical,  archaeological and cultural objects of state
importance  shall  belong  to  the  Republic  of Lithuania, means
that  the  listed objects may belong by right of ownership solely
to  the  state,  save the exceptions that originate directly from
the  Constitution.  The state (its institutions or officials) may
not   adopt  any  decisions  that  could  become  the  basis  for
transferring  these  objects  from  the ownership of the state to
the  ownership  of  other entities (save the exceptions permitted
by the Constitution).
     40.  It  has  been mentioned that the constitutional concept
of  culture  comprises  various  values  held and fostered by the
Nation  and  individual  communities,  as  well  as  that  in the
constitutional  concept  of  culture  one stresses the purposeful
material  and  spiritual  creative  activity  of human beings and
its  results.  The  areas  in which valuables objects of national
and  universal  importance  may  be created and must be preserved
are  of  great  variety:  art,  science, education, architecture,
technology, etc.
     The   Constitution  is  an  integral  act  (Paragraph  1  of
Article   6  of  the  Constitution).  Its  norms  and  principles
comprise  a  harmonious  system.  It is not permitted to construe
any  provision  of  the  Constitution  in  such  manner where the
content  of  another  constitutional provision could be distorted
or  denied,  since  thus  the essence of the whole constitutional
regulation   would   be   distorted   and   the  balance  of  the
constitutional  values  would  be  disturbed.  The  provision  of
Paragraph  1  of Article 47 of the Constitution that the right of
exclusive  ownership  of  the  subterranean,  as well as internal
waters,  forests,  parks,  roads,  historical, archaeological and
cultural   objects  of  state  importance  shall  belong  to  the
Republic  of  Lithuania  I  to  be  construed  in  the context of
Article  23  of  the  Constitution as well. It has been mentioned
that  it  is  entrenched  in  Paragraph  1  of  Article 23 of the
Constitution   that   property   shall   be  inviolable,  and  in
Paragraph  2  that  the rights of ownership shall be protected by
laws.  In  Paragraph  3  of  this  article it is established that
property  may  only  be  seized  for  the  needs  of  society  in
accordance  with  the  procedure  established by law and shall be
justly compensated for.
     The  Constitution,  which  consolidates the human rights and
freedoms  (inter  alia  the  freedom  of culture and the right of
ownership)  and  recognises  their  innate  nature,  tolerates  a
situation  where  the  objects  of  culture  of even the greatest
permanent  value  and obvious state or national importance belong
by  right  of ownership not only to the state, but other entities
as  well,  of  course  subject  to the condition that these other
entities  acquired  the  respective  cultural  objects in a legal
manner.
     There  are  different  ways how the above-mentioned cultural
objects  of  state importance (similar to other objects indicated
in  Paragraph  1  of  Article  47 of the Constitution, except the
subterranean)  may  become  the  ownership  of other persons, but
not  the  state.  A  person  (artist) may create them himself and
become  their  owner.  A person may acquire such cultural objects
by  transactions  from another person-their legal owner; besides,
the  other  party  of  such  transaction  need not necessarily be
subject  to  the  jurisdiction  of  the Republic of Lithuania. It
should   also   be   mentioned  that  after  the  restoration  of
independence  in  Lithuania  the process of restitution commenced
(and  is  not over yet)-still the existing real property that was
nationalised  and  disseized  in any other unlawful manner by the
occupation  government  is  being  returned to the former owners;
thus   it  is  possible  that  even  the  property  (for  example
buildings),  which  is  attributable to cultural objects of state
importance,  is  being  returned  to  the  former  owners.  It is
possible  that  a  situation occurs where certain property, which
legally  belongs  by  right of ownership not to the state, but to
another  legal  or  natural  person,  due  to its great permanent
value  and  importance  to  the  future generations is or will be
declared  upon  the  established  procedure  a cultural object of
state  importance.  In  all  these  as well as other cases, where
cultural   objects   of  state  importance  belong  by  right  of
ownership  not  to  the state but other persons, according to the
Constitution  the  state  (its  institutions  or  officials) must
tolerate  this.  Otherwise,  one would violate the constitutional
imperative  of  an  open,  just,  and  harmonious  civil society,
violate  the  innate  human rights and freedoms, as well as other
values   entrenched   in,  and  protected  and  defended  by  the
Constitution.
     On  the  other hand, the institute of expropriation (eminent
domain)  is  entrenched in the Constitution as well. According to
Paragraph  3  of  Article  23  of  the Constitution, property may
only  be  seized  for the needs of society in accordance with the
procedure  established  by  law  and  shall be justly compensated
for.  The  Constitutional Court, while construing, in the context
of  the  problem  of  ownership  of  cultural  objects  of  state
importance,  Paragraph  4  of  Article  47  of  the  Constitution
(wording  of  20 June 1996), the text of which corresponds to the
text   of   the   current  Paragraph  1  of  Article  47  of  the
Constitution   (wording  of  23  January  2003),  has  held:  the
Constitution  does  not  reject  an  opportunity to make separate
cultural  objects  of  state  importance state-owned property; it
would   depend   on   the   public   significance  and  value  of
corresponding  objects,  as well as the necessity to guarantee an
opportunity  of  its  endurance  and  preservation for the future
generations;  such  nationalisation of valuables of culture ought
to   be   carried  out  only  pursuant  to  the  requirements  of
Paragraph  3  of  Article  23 of the Constitution (Constitutional
Court  ruling  of  16  March  1999).  It  should be stressed that
nationalisation  of  cultural  objects  is  possible  only  after
recognising  them  upon  the established procedure as the ones of
state  importance.  One  has to note that such nationalisation of
cultural  objects  of  state importance, which belong by right of
ownership  not  to  the  state,  but  to other entities, is to be
considered as an exceptional measure.
     In  this  context  one  should mention that, as already held
by  the  Constitutional  Court  in  its  ruling  of 4 March 2003,
under  Paragraph  3  of  Article 23 of the Constitution, property
may   be   seized   according   to   inter   alia  the  following
requirements:  the  needs  of  society,  for  which  property  is
seized,  are  always  particular  and  clearly expressed needs of
society  for  a  concrete  object of property, which would not be
objectively  met  if  a  certain concrete object of property were
not  seized;  an  individual  decision  concerning the seizure of
property   belonging  to  private  ownership  for  the  needs  of
society  must  be  adopted upon the procedure established by laws
in  every  case; while adopting a decision on seizure of property
for  the  needs  of  society, at the same time one must establish
the  amount  of  compensation  for  the  property  seized and the
procedure  of  paying  the  compensation  to the owner; the owner
must  be  notified  about  the  seizure  of  his property and the
amount  of  the  compensation  for it as well as other conditions
prior  to  the  adoption of a decision on seizure of the property
for  the  needs  of society; the established compensation must be
equivalent   in   value   for  the  property  seized;  until  the
agreement  is  reached  on  the  compensation  for  the  property
seized  or  until  the  dispute  is  not  settled  by  court, the
property may not be seized from the owner.
     41.  While  taking  account  of  the special permanent value
and  significance  of  cultural  objects  of state importance, as
well  as  a need to preserve them for the future generations, the
state  has  a  constitutional  duty to take care of these objects
and  protect  them.  It  should  be  noted  that the provision of
Paragraph  2  of  Article  42  of the Constitution that the state
shall  support  culture  and science and shall protect Lithuanian
historical,  art,  and  cultural  monuments  and other culturally
valuable  objects  implies  that  the  fact that certain cultural
objects  of  state  importance  (similar to various other objects
indicated  in  Paragraph  1  of  Article  47 of the Constitution,
except  the  subterranean)  belong  by  right of ownership not to
the  state,  but  to  other  persons,  does not relieve the state
from the duty to ensure their protection and take care of them.
     42.   In   this   context   one   has  to  stress  that  the
constitutional  status  of  cultural  objects of state importance
implies  the  duty  of  the  state  to  keep  records of cultural
objects   of  state  importance,  inter  alia  the  duty  of  the
legislator  to  set  by  the  law  a  list of cultural objects of
state  importance  and  to mark separately which cultural objects
of  state  importance  belong  to  the  state, and which-to other
owners.  If  necessary,  this  list  must  be  revised  upon  the
established  procedure,  by  taking into account the fact whether
a  need  exists  during  a  particular  phase  of  development of
society  and  the state to include additional cultural objects in
this  list  (and/or  a  need  to exclude certain cultural objects
from  the  aforementioned  list).  It should be stressed that the
inclusion   of  cultural  objects  of  state  importance  in  the
aforementioned   list   cannot   depend  upon  the  fact  whether
respective  cultural  objects belong by right of ownership to the
state  or  other  legal or natural persons. It should be stressed
also  that  the  recognition  of particular cultural objects that
belong  by  right  of  ownership  not  to the state, but to other
persons,  as  the  ones  of  state importance does not mean their
nationalisation.
     One  should  note  that  no such list of cultural objects of
state importance has been set by the law yet.
     The   specified   requirements   that   originate  from  the
Constitution  and  are  related  to  keeping  record  of cultural
objects  of  state  importance  and the duty of the state to take
care  of  cultural  objects  of  state  importance  and to ensure
their   protection   (irrespective   of   the  fact  whether  the
aforementioned  cultural  objects belong by right of ownership to
the  state  or  other  legal  or  natural  persons)  are  mutatis
mutandis  applicable  to  other  objects indicated in Paragraph 1
of Article 47 of the Constitution as well.
     43.  It  is  to  be  stressed  that the originating from the
Constitution  duty  of  the  state  to take care also of cultural
objects  of  state  importance  that belong by right of ownership
not  to  the  state,  but  to  other persons, and to ensure their
protection  may  not be construed as the one which relieves their
owners   from   the   duty   to   contribute  themselves  to  the
preservation  of  the  aforementioned  cultural  objects,  and to
follow  the  legal regime established in regard of these cultural
objects  that  may  comprise  inter  alia  various  prohibitions,
obligations,   other   limitations  or  restrictions  related  to
possession,  use  or  disposal of these cultural objects. One has
to    emphasize    that    the    above-mentioned   prohibitions,
obligations,  limitations  and restrictions must be reasoned-they
must  create  preconditions  for  ensuring  the  preservation  of
cultural   objects   of   state  importance,  as  well  as  their
accessibility  to  the  public; they must be proportionate to the
sought  objective  of  universal  importance and not restrict the
rights  of  the  owner  more  than  it  is  necessary in order to
attain the aforementioned objectives.
     The   state  (its  respective  institutions  or  officials),
while  enjoying,  under  the  Constitution, the powers to control
how  one  follows  the  legal  regime  established  in  regard to
cultural  objects  of  state  importance,  has the powers also to
control  how  the  owners,  to whom these objects belong by right
of  ownership,  and  the  state  or  municipal  institutions that
possess  these  objects by right of trust or other (non-property)
right, follow this legal regime.
     In  some  cases  the  owners  (for example, natural persons)
may  be  unable  to  efficiently  guarantee  themselves  that the
cultural  objects  of  state  importance,  belonging  to  them by
right  of  ownership,  will be preserved. It has to be emphasized
that  the  entire  burden  of preservation of the above-mentioned
cultural  objects  and  taking  care  of them cannot be placed on
the  owners.  In  this  area  one  must find solutions ensuring a
balance  between  the  respective  duties  of  the  owner and the
state.
     One  should  mention also that the legislator must establish
such  legal  regulation,  which  would  provide  a possibility to
ensure  both  the  accessibility  to  cultural  objects  of state
importance,  belonging  by  right  of  ownership not to the state
but  other  persons, to the public (thus guaranteeing the freedom
of  accessibility  to  valuable  objects  of culture as well) and
the  protection  of  rights and legal interests of the owner, and
would  not  create  preconditions  for  inflicting  damage on the
aforementioned  cultural  objects.  In  the  cases where cultural
objects  of  state importance belong by right of ownership not to
the  state,  but other persons, the entire burden of ensuring the
accessibility  to  the  aforementioned  objects of culture to the
public  should  not be placed on the owners, either. In this area
one  must  find solutions, guaranteeing the right balance between
the  rights  of  the  owner,  inter alia the ownership rights and
the right to privacy, and the rights of other persons.
     44.  It  has  been  held in this Constitutional Court ruling
that  the  material  basis for performing the function of support
and    protection    of   culture,   that   is   transferred   to
municipalities  (to  a  certain  extent),  is  comprised  of  the
property,  needed  for  the  performance  of this function, which
belongs   by   right  of  ownership  to  municipalities  and  the
property  which  belongs  by right of ownership to the state, but
is  possessed  by right of trust or other (non-property) right by
municipalities.
     It  should  be  noticed  that the property, which belongs by
right  of  ownership  to  certain  municipality, or the property,
which  belongs  by  right  of  ownership  to  the  state,  but is
possessed  by  right  of  trust  by  a  municipality,  may  be  a
cultural   object   of   state   importance  or  may  become  (be
recognised)   such  cultural  object  in  future.  Such  cultural
objects  must  be  included  in  the  approved by the law list of
cultural  objects  of state importance, and such cultural objects
may  become  subject  to  the legal regime established by the law
in  regard  to  cultural  objects  of state importance, which may
include  inter  alia  various  prohibitions,  obligations,  other
restrictions  or  limitations  concerning  possession,  use,  and
disposal of these cultural objects.
     45.  It  should  be  noted that in order to more efficiently
guarantee  the  function  of  support  and protection of culture,
entrenched  in  Paragraph  2  of  Article 42 of the Constitution,
while  paying  heed  to  the  Constitution,  cultural  objects of
state  importance  that  belong  to  municipalities  by  right of
ownership may be nationalised.
     46.  Is  it to be held that the Constitution does not create
preconditions   for   transferring   cultural  objects  of  state
importance  that  belong  to  the  state by right of ownership to
municipal  ownership  solely due to the reason that subordination
of    a    particular   state   institution   (establishment   or
organisation)  contributing  to the development of culture (inter
alia  establishments  or  enterprises  providing  public cultural
services),  is  changed  by replacing its administration from the
system  of  state  administration  to  self-government,  and, for
this reason, certain property is transferred to municipalities.
     The   indicated   prohibition   that   originates  from  the
Constitution  does  not  mean  that  in the specified cases (when
subordination  of  a  particular state institution (establishment
or  organisation)  contributing  to  the  development  of culture
(inter   alia  establishments  or  enterprises  providing  public
cultural  services)  is  changed  by replacing its administration
from  the  system  of  state  administration  to self-government,
cultural  objects  of  state importance may not be transferred to
municipalities  to  be  possessed  by  right  of  trust  or other
(non-property)   right   by  establishing  alongside  such  legal
regime  (conditions  and procedure of use) of this property which
would  continue  to  ensure the interests of society, the welfare
of  the  Nation,  and  implementation of values entrenched in the
Constitution.  In  case  the transfer of certain cultural objects
of  state  importance  to  municipalities for possession by right
of  trust  is related to the change of subordination of a certain
state  institution  (establishment or enterprise) contributing to
the   development   of  culture  (inter  alia  establishments  or
enterprises   providing   public  cultural  services),  when  its
administration   is   transferred   from   the  system  of  state
administration  to  self-government,  one  may  and,  in  certain
cases  must,  establish  also such legal regime of this property,
which  would  ensure  that this property will continue to be used
for  the  performance  of  the function of support and protection
of  culture,  which is transferred to respective municipality (to
the established extent).
     47.  In  the  context  of  the  case  of  the constitutional
justice  at  issue one has to note that the Constitution does not
tolerate  such  change  of  subordination  of a state institution
(establishment    or    enterprise),   inter   alia   institution
contributing   to   the   development   of   culture,   when  its
administration   is   transferred   from   the  system  of  state
administration  to  self-government,  if  the  transfer  of  this
institution  is  only  a  cover  for transferring the state-owned
property   related   to  the  aforementioned  institution  and/or
possessed   by   inter   alia   the   said   institution  or  its
founder-state  institution  (establishment  or  enterprise)-to be
possessed by the municipality.

                               III                               
     1.   The   petitioner-the  Vilnius  Regional  Administrative
Court-faced  doubts  concerning the compliance of the Law "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture"  (wording of 13 June 1995) with the Constitution and
the  compliance  of the provisions of Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House of Artists of Lithuania" of 28 November 1997 with
the   Constitution   and   laws  when  he  was  investigating  an
administrative  case,  in  which the decision of the Vilnius City
Municipality   to  liquidate  the  budgetary  establishment,  the
House of Artists of Lithuania had been appealed against.
     It  is  clear  from  the  case  material  that  the  dispute
concerning  the  liquidation of the House of Artists of Lithuania
is  related  to  possession,  use and disposal of the building at
Didžioji  St.  31,  Vilnius,  in  which  the seat of the House of
Artists of Lithuania is located.
     2.  When  deciding,  as to whether the Law "On the Procedure
of  Reorganisation  and Liquidation of Establishments of Culture"
is  not  in  conflict  with  the Constitution, as well as whether
Items  1,  2.3,  and  2.4 of Resolution No. 1320 "On the House of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania" of 28 November 1997 are not in
conflict  with  the  Constitution  and  laws, one has to find out
the  evolution  of  the  legal  status of the House of Artists of
Lithuania,  and  how  the  possession,  use  and  disposal of the
building  at  Didžioji  St. 31, Vilnius, in which the seat of the
House of Artists of Lithuania is located, changed.
     3.   The   building   at  Didžioji  St.  31,  Vilnius  is  a
historical  Vilnius  City  Hall. Historical sources indicate that
in  the  place, where the aforementioned building is located from
the  16th  century  institutions  of  self-government  of Vilnius
used   to   function.  In  1845,  the  Russian  power  moved  the
magistrate  away  from  the  city hall. The building was used for
other needs that were public as well.
     4.   In   1940,   Lithuania   was   occupied,   annexed  and
incorporated   into   another   state-the   Soviet   Union.   The
occupation  government  nationalised  and  in other unlawful ways
nationalised   a   great  many  objects  of  private  and  public
ownership,  inter  alia  buildings  of public purpose, which were
declared  state-owned  property. The building of the Vilnius City
Hall,   Didžioji   St.   31,  was  also  treated  as  state-owned
property.  From  1940,  the  State Art Museum of Vilnius City was
located  therein.  Names  of  this museum used to change (in 1941
it  was  named  as  the  Vilnius State Art Museum, in 1965 as the
Art  Museum  of  the Lithuanian Soviet Socialist Republic, and in
1990  as  the  Art  Museum of Lithuania). In 1995, the Art Museum
of  Lithuania  was  commissioned  with the task to move away from
this building.
     It  should  be  noted that even back in the Soviet times the
aforementioned  building,  under the name of the Former City Hall
(the   then  address:  M.  Gorkio  St.  55),  as  a  monument  of
architecture  and  history  was included in the list of monuments
of architecture of republic importance.
     5.  On  31  December  1971,  the  Minister of Culture issued
Order  No.  458,  whereby  the  House  of Art Workers was founded
therein  as  from  1  January  1972. In the above-mentioned order
one  indicated  the  seat of the House of Art Workers in Vilnius,
which  was  then M. Kutuzovo sq. 3/8 (at present: S. Daukanto sq.
3).
     On  15  November  1988, the Minister of Culture issued Order
No.  502,  whereby  the  House  of Art Workers was renamed as the
House of Artists of the Lithuanian Soviet Socialist Republic.
     On  11  March  1990,  after  the Supreme Council adopted the
Law  "On  the  Name  of the State and the Coat of Arms", names of
enterprises,  establishments,  and  organisations  were  changed,
and  the  name  of  the House of Artists of the Lithuanian Soviet
Socialist   Republic  was  among  them-it  became  the  House  of
Artists of Lithuania.
     6.  On  11  March  1990, the Supreme Council adopted the Act
"On  the  Re-establishment of the Independent State of Lithuania"
whereby  one  restored the independent State of Lithuania. It was
inter  alia  established  in this act that no constitution of any
other state shall be valid in Lithuania.
     7.  On  11  March  1990,  the  Supreme  Council  adopted the
Republic  of  Lithuania  Law "On the Provisional Basic Law of the
Republic  of  Lithuania",  by  Article 2 of which it approved the
Provisional   Basic   Law   of   the  Republic  of  Lithuania-the
provisional  constitution  of  the  restored independent State of
Lithuania.  On  the  basis  of  the  Provisional  Basic  Law  one
started to create the national legal system.
     In  Chapters  7, 12, and 13 of the Provisional Basic Law the
system  and  principles  of  activity of bodies of state power of
areas,  cities,  settlements, and districts, as well as formation
of bodies of local self-government, were established.
     8.  When  the  Provisional  Basic Law became effective, lots
of  legal  acts that had been adopted prior to the restoration of
the  independent  State  of Lithuania remained effective as well.
One   of   them   is   the  Law  on  the  Fundamentals  of  Local
Self-Government,  which  was adopted on 12 February 1990. In this
law   one   inter   alia  established  the  principles  of  local
self-government  (Article  2),  as well as that the local council
of  people's  deputies  in their territory unites and coordinates
activity  of  other  municipal  bodies,  and  directs the public,
economic  and  socio-cultural  work  (Paragraph  1 of Article 5),
that  the  economic  basis  of  municipality  is comprised of the
property  of  respective  municipality  (Paragraph  1  of Article
20),  that  the property of municipality is property that belongs
to  it  and  on  its  behalf is owned and used by the appropriate
council  or  other  legal  or  natural  persons  authorised by it
(Paragraph  1  of  Article  21),  that,  as  a rule, enterprises,
establishments  and  organisations  of  public education, culture
and  of  cinematography  are  inter  alia  assigned  to the local
economy  of  municipality (Paragraph 2 of Article 22), that it is
only  the  municipality that designates protected areas, national
monuments  of  architecture, nature, history and culture of local
importance,  organises  registration  of  national  monuments and
protects  them  (Item  13  of  Article 24). By the aforementioned
law  municipalities  were  divided  into  municipalities of lower
level  (districts,  settlements, rural districts and towns of the
area  (county))  and  municipalities  of  higher level (districts
(counties), and towns under the republic jurisdiction).
     The  above-mentioned  law has been amended and supplemented,
however,  the  legal  regulation that is subject to discussion in
essence remained the same.
     9.  By  reforming  and  developing,  on  the  basis  of  the
Provisional  Basic  Law, the system of local self-government, one
strengthened  the  material  bases  of local self-government. For
example,  on  19  July 1990 the Government adopted Resolution No.
245  "On  the  Procedure  of  Transferring State-owned Objects to
Municipal   Ownership".   By   this   resolution  the  Government
resolved  that  it was reasonable to transfer to the ownership of
municipalities   of  higher  level,  while  paying  heed  to  the
general  interests  of the state and proposals by municipalities,
inter  alia  the  following  state-owned objects: the property of
enterprises,   establishments  and  organisations  of  education,
culture  and  cinematography  or other objects of social purpose,
the  services,  work  or  all  the  production  of which is meant
solely  for  meeting  social needs of production and residents of
the  territory  of  that  particular municipality of higher level
(Item 1).
     10.  Thus,  already since the restoration of the independent
State  of  Lithuania  municipalities  (their  institutions) enjoy
under  the  laws, inter alia the Law on the Fundamentals of Local
Self-Government,  certain  powers  related  to  administration of
establishments  that  contribute  to  the development of culture.
These powers used to be expanded by legal acts.
     11.  In  the  context  of the constitutional justice case at
issue  one  has  to  note  that  neither  the House of Artists of
Lithuania  (seat  at  S.  Daukanto  sq.  3, Vilnius), nor the Art
Museum  of  Lithuania  (seat  at  Didžioji St. 31, Vilnius), were
transferred  to  the  Vilnius  City Municipality by legal acts of
that  period.  The  House  of  Artists  of  Lithuania and the Art
Museum  of  Lithuania  were  state establishments funded from the
state   budget.  The  buildings  in  which  the  seats  of  these
establishments were located were state-owned property.
     12.  By  the  referendum  of the Nation, which took place on
25  October  1992,  the Constitution of the Republic of Lithuania
was  adopted.  It became effective on 2 November 1992. Since then
the  national  legal  system  of  Lithuania had to be created and
developed only on the basis of the Constitution.
     The   Constitution   consolidated   the   concept  of  local
self-government,  inter  alia  the fundamentals of functioning of
local  self-government  as  a  system of public power, as well as
the    relations    of    local    self-government    and   state
administration.   It   was   mentioned   that  according  to  the
Constitution, municipalities are a subject of ownership rights.
     It  should  be  noted  that  a  one-level  system  of  local
self-government if consolidated in the Constitution.
     13.  By  Order  of the Ministry of Culture and Education No.
183  "On  the  Regulations  of the House of Artists of Lithuania"
of  22  February 1993, the Regulations of the House of Artists of
Lithuania were approved.
     Pursuant  to  these  regulations  the  House  of  Artists of
Lithuania  was  a  budgetary  establishment, the founder of which
was  the  Ministry  of  Culture and Education (Item 1.1). In this
context  one  has  to  mention  that by Item 5 of the Republic of
Lithuania  Law  "On Implementing the Law on the Government of the
Republic  of  Lithuania"  of  31 May 1994 the Ministry of Culture
and  Education  was  reorganised into the Ministry of Culture and
the  Ministry  of  Education  and Science; it was the Ministry of
Culture  that  became  the  founder  of  the  House of Artists of
Lithuania.
     It  was  established  in  the  Regulations  of  the House of
Artists   of  Lithuania  that  were  approved  by  Order  of  the
Ministry  of  Culture  and  Education No. 183 "On the Regulations
of  the  House  of Artists of Lithuania" of 22 February 1993 that
the  House  of Artists of Lithuania is a legal person (Item 1.2),
its  seat  is located at S. Daukanto sq. 3/8, Vilnius (Item 1.3).
The  tasks  and  functions  of  the House of Artists of Lithuania
were  defined  in Chapter 2 of the aforementioned regulations; it
was  established  inter  alia that the basic task of the House of
Artists  of  Lithuania  is  to  organise,  upon the principles of
artistry  and  public  spirit, events related to art, which would
be  in  line  with  the  spirit  of  the  time (Item 2.1). In the
aforementioned  regulations  one  established also that the House
of  Artists  of  Lithuania  possesses,  uses  and disposes of the
state  property  transferred  to it (Item 5.1) and that the House
of  Artists  of  Lithuania  may  be liquidated upon the procedure
established by laws (Item 6.1).
     14.  It  is  to  be  held that even after the Regulations of
the  House  of Artists of Lithuania were approved by Order of the
Ministry  of  Culture  and  Education No. 183 "On the Regulations
of  the  House  of Artists of Lithuania" of 22 February 1993, the
legal  status  of  the  House  of  Artists  of  Lithuania did not
change-they  continued  to  be  a  state budgetary establishment,
and  the  property owned by it was state-owned property. The seat
of  the  House  of  Artists  of  Lithuania  remained the same, S.
Daukanto sq. 3/8, Vilnius.
     15.  On  28 October 1993, the Seimas adopted the Law "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture",  wherein one established that the establishments of
culture  that  are  assigned to the higher level of regulation by
municipal  councils  may  be  reorganised or liquidated only upon
written consent of the Ministry of Culture and Education.
     In  this  context  it  is  to  be  noted  that  the  notions
"establishments   (enterprises)   belonging   to  the  sphere  of
regulation  by  municipalities",  the  content  of  which was not
particularised  nor  revealed  in  any  way,  were  used  in  the
Lithuanian  legal  acts  of  that  time.  It  is  clear  from the
content  of  legal  acts  in  which  these  notions are used that
assignment  of  certain  establishments  or  enterprises  to  the
sphere    of    regulation    by    municipalities   meant   that
municipalities    (their    institutions),   according   to   the
Constitution   and  laws,  enjoyed  authority  to  adopt  certain
decisions concerning these establishments or enterprises.
     It  should  be stressed that the specified in the legal acts
of  that  time assignment of establishments or enterprises to the
sphere  of  regulation  by  municipalities in itself did not mean
that   the   state-owned   property   possessed   by   respective
establishments  or  enterprises by right of trust was transferred
to municipal ownership.
     16.  According  to Article 37 of the Code of Civil Procedure
of  the  Republic  of  Lithuania  that was effective at that time
(wording  of  7  July 1964), the existence legal persons could be
terminated  by  way  of  liquidation  or  reorganisation (merger,
division    or    incorporation);    the   existence   of   state
organisations,  which  were  legal persons, used to be terminated
upon  the  decision  of  the  bodies, by a decision of which they
could be founded (Paragraph 2).
     17.  According  to the laws that were effective at that time
the  House  of  Artists  of  Lithuania  were  not assigned to the
sphere  of  regulation  by  municipal  councils.  It  was a state
budgetary  establishment.  Thus,  the  Law  "On  the Procedure of
Reorganisation  and  Liquidation  of  Establishments of Culture",
which  was  adopted  by  the Seimas on 28 October 1993, could not
be  applied  in  regard  to  the reorganisation or liquidation of
the  House  of  Artists  of Lithuania; it could be reorganised or
liquidated,  pursuant  to  the  Civil Code and other laws, by its
founder-the  then  Ministry  of  Culture and Education (after the
reorganisation of this ministry-by the Ministry of Culture).
     18.  On  17  May  1994,  the  Seimas  adopted  the  Law  "On
Amending  and  Supplementing  the  Civil  Code of the Republic of
Lithuania",  by  Article  55 whereof Article 95 of the Civil Code
(wording  of  30  November 1983) was inter alia supplemented with
the  provisions,  in which the notion of public ownership is used
expressis  verbis.  According to Paragraph 3 of Article 95 of the
Civil  Code  (wording  of  17 May 1994) public property comprised
state-owned property and municipal property.
     19.  At  that  time  the  legal  regulation  of relations of
local   self-government   underwent  changes  as  well.  In  this
context  one  has  to note that on 7 July 1994 the Seimas adopted
the  Republic  of  Lithuania Law on Self-Government. According to
Article  31  of  this  law, the latter had to become effective on
the  first  day  after  elections  of  municipal  councils. These
elections  took  place  on  25  March 1995, thus the Law on Local
Self-Government  became  effective on 26 March 1995. After coming
into  effect  of the Law on Local Self-Government, the Law on the
Fundamentals  of  Local Self-Government of 12 February 1990 (with
any  subsequent  amendments  and  supplements)  became  no longer
valid.
     In  the  Law  on  Local  Self-Government  one consolidated a
one-level     system     of    local    self-government.    Local
self-government  was  treated  as  the  right and actual power of
the  institutions  of  a local government which is elected by the
residents  of  an  administrative  unit  of  the territory of the
Republic  of  Lithuania, to freely and independently on their own
responsibility  regulate  and  manage public affairs and meet the
needs  of  local residents according to the Constitution and laws
(Paragraph   1  of  Article  1).  In  this  law  one  inter  alia
consolidated   such  principles  of  local  self-government  like
co-ordination   of  interests  of  municipality  and  the  state,
lawfulness   and   social   justice,  and  economic  independency
(Article 2).
     It  was  established  in  this  law  that  the competence of
self-government   institutions   shall  be  autonomous  and  that
delegated  by  the  state (Paragraph 1 of Article 14), as well as
that   the   state   functions   shall   be  delegated  to  local
authorities  by  this  law and other laws (Paragraph 3 of Article
14).  When  implementing  the  independent  competence, municipal
councils  enjoyed  powers  inter  alia to approve the general sum
of  allotments  and wage funds for institutions and organisations
which  receive  financing  from  the municipal budget (Item 13 of
Article   15)  and  to  adopt  decisions  on  the  establishment,
reorganisation  and  liquidation  of establishments, enterprises,
and  organisations  maintained  from  the  municipal budget funds
(Item 16 of Article 15).
     It  was  established  in  the  Law  on Local Self-Government
that  the  basis  of  the  economic  activity  of local authority
shall  be  municipal  property-the property, which belongs to the
municipality  by  right  of  ownership,  the  functions  of owner
whereof  shall  be  implemented  by the council according to laws
(Paragraphs  1  and  2  of  Article 21). The objects of municipal
ownership  had  to be established by laws (Paragraph 3 of Article
21);   the   right   of   ownership  of  could  be  acquired:  by
transferring   state-owned  objects  to  municipal  ownership  in
accordance  with  the  procedure  established  by  laws;  in this
case,  there  might  be  provisions, established by laws, for the
limitation  of  the disposal of such objects (Item 1 of Paragraph
4  of  Article  21); by creating new objects of ownership (Item 2
of  Paragraph  4 of Article 21); by concluding transactions or in
other  cases  provided  for  in  laws  (Item  3 of Paragraph 4 of
Article 21).
     By  the  aforementioned  law  inter  alia  the  function  of
taking  care  of  development  of the cultural level of residents
and   promotion   of  general  and  ethnic  culture  (Item  5  of
Paragraph  4  of  Article  17)  was included in the competence of
the  mayor  of  municipality.  To  the  competence  of  municipal
council  inter  alia  the function of control over the compliance
with  the  requirements  for  the protection of landscape as well
as  architectural  and cultural monuments was included (Item 6 of
Paragraph 1 of Article 18).
     The  Law  on Local Self-Government, which was adopted by the
Seimas  on  7  July  1994, was amended and supplemented more than
once,   however,   the   legal  regulation  that  is  subject  to
discussion  remained  basically  unchanged  until the Republic of
Lithuania  Law  on  Amending  the  Law  on Local Self-Government,
which  was  adopted  by  the  Seimas  on  12  October 2000 and by
Article  1  whereof  the Law on Local Self-Government (wording of
7  July  1994 with subsequent amendments and supplements) was set
forth in a new wording, became effective.
     20.   The   material  basis  of  local  self-government  was
strengthened also by the laws of that time.
     In  this  context  one has to mention the Law "On Assignment
and  Transfer  of Part of State Property to Municipal Ownership",
which  was  adopted  by the Seimas on 20 December 1994 and became
effective  on  4  January 1995. By this law a part of state-owned
property  was  assigned to ownership of "municipalities of higher
level"  to  carry  out  the functions established by law (Article
1);  this  state property had to be transferred to municipalities
without  compensation  or  consideration of the place of location
thereof  within  the  territory  administered  by  one or another
municipality  (Paragraph  1  of Article 2). In the context of the
constitutional  justice  case  at  issue it should be stated that
by  the  aforementioned  law  one assigned to municipal ownership
the  state-owned  property  (basic  equipment, material reserves,
monetary  funds,  etc.),  which  was  possessed inter alia by the
following   establishments  of  these  municipalities:  libraries
(Item  3  of  Paragraph  2  of  Article 3); museums and galleries
(Item  4  of  Paragraph  2  of Article 3); establishments (clubs)
for  leisure  activities  (clubs,  houses and centres of culture,
houses  of  sports)  (Item  5  of  Paragraph  2  of  Article  3);
theatres  and  studios  for theatrical performances, performances
of  choirs,  and  musical  performances (Item 6 of Paragraph 2 of
Article  3).  Moreover,  pursuant  to this law the facilities for
social  purpose  and  other  property,  inter  alia buildings, in
which  institutions  of  self-government are located, or parts of
such  buildings  and  separate  premises  that  are  necessary to
perform  the  functions  of  local self-government and which were
in  the  balance  of  municipalities  were  assigned to municipal
ownership  (Item  2  of Paragraph 3 of Article 3). The Government
had  to  transfer  the  property, which was assigned to municipal
ownership,   individually   to  every  municipality  through  the
persons  authorised  by  a  Government resolution (Paragraph 1 of
Article  4);  the  right  of  ownership  of  municipality  to the
transferred  real  property  had  to  come  into  effect from the
legal registration thereof (Article 5).
     21.  On  20  December  1994,  the Seimas adopted the Law "On
the   Implementation   of  the  Republic  of  Lithuania  Law  'On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership'",  which  became  effective on 4 January 1995. In this
law  it  was established inter alia that according to the Law "On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership"   the   property   that   was  assigned  to  municipal
ownership  and  inventoried must be transferred to municipalities
upon  the  established  procedure  by  20 March 1995 (Article 1),
and   that   municipalities   have   to   carry   out  the  legal
registration   of   the   accepted  property  by  24  March  1995
(Article2).
     22.  It  has  to  be  mentioned that no other law regulating
the  transfer  of  state-owned property to municipalities existed
at that time.
     23.  By  Item  1.1. of Government Resolution No. 199 "On the
Procedure  of  Transfer  of  Part  of State Property to Municipal
Ownership"  of  7  February 1995 one approved the list of persons
who   were   authorised   by   the   Government  to  transfer  to
municipalities  the  state-owned  property,  which  was  assigned
under  the  Law  "On  Assignment  and  Transfer  of Part of State
Property  to  Municipal  Ownership"  to  municipal  ownership, by
Item  1.2  thereof  one comprised the governmental commission for
the  disputes  of  municipalities  and  persons authorised by the
Government   concerning  the  transfer  of  part  of  state-owned
property  to  municipal  ownership,  and  by Item 1.3 thereof one
approved  the  procedure of transfer of the state-owned property,
which  was  assigned  to  municipal  ownership  under the Law "On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership" to municipalities.
     24.  In  the  context  of the constitutional justice case at
issue  it  has  to  be stressed that the property of the House of
Artists  of  Lithuania (including the building at Daukanto sq. 3,
Vilnius)  at  that  time did not constitute property possessed by
any  municipal  establishment, it was not included in the balance
of  municipalities  as  an  object  for  social  purpose or other
property.  It  was  mentioned  that  at  that  time  the House of
Artists  of  Lithuania  was  a  state  budgetary institution (the
founder  of  which was the Ministry of Culture), and the property
possessed  by  it  was  state-owned  property. Thus, the property
possessed  by  the  House  of  Artists  of Lithuania could not be
assigned  and  transferred  to  municipal ownership under the Law
"On  Assignment  and  Transfer  of  Part  of  State  Property  to
Municipal  Ownership"  that  was  adopted  on  20  December 1994,
either.
     25.  It  should  be  noted  that  the Law "On Assignment and
Transfer  of  Part  of State Property to Municipal Ownership" and
the  Law  "On the Implementation of the Republic of Lithuania Law
'On  Assignment  and  Transfer  of  Part  of  State  Property  to
Municipal  Ownership'"  were  changed and amended respectively by
the   Law   "On   Amending  and  Supplementing  the  Republic  of
Lithuania  Law  'On  Assignment  and  Transfer  of  Part of State
Property  to  Municipal  Ownership'",  which  was  adopted by the
Seimas  on  5  July  1995,  and the Republic of Lithuania Law "On
Amending  and  Supplementing  the  Republic  of Lithuania Law 'On
the   Implementation   of  the  Republic  of  Lithuania  Law  "On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership"'", which was adopted by the Seimas on 5 July 1995.
     It  should  be  mentioned  also that by Item 7 of Government
Resolution  No.  1251  "On  the Procedure of Transferring of Part
of  State  Property to Municipal Ownership" of 20 September 1995,
Government  Resolution  No. 199 "On the Procedure of Transferring
of  Part  of State Property to Municipal Ownership" of 7 February
1995  was  recognised  as  no  longer  effective.  By Item 1.1 of
Government   Resolution   No.   1251   "On   the   Procedure   of
Transferring  of  Part  of State Property to Municipal Ownership"
of  20  September 1995 one confirmed the list of persons who were
authorised  by  the  Government  of  the Republic of Lithuania to
transfer  to  municipalities the state-owned property assigned to
municipalities   under   the   Republic   of  Lithuania  Law  "On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership",  and  by  Item 1.2 thereof one approved the procedure
of  transferring  the  state-owned property to municipalities, to
which  is  was  assigned  under the Republic of Lithuania Law "On
Assignment  and  Transfer  of Part of State Property to Municipal
Ownership".  Government  Resolution No. 1251 "On the Procedure of
Transferring  of  Part  of State Property to Municipal Ownership"
of  20  September  1995  was amended by Government Resolution No.
899  "On  Partial  Amendment  of  Government  of  the Republic of
Lithuania  Resolution  No. 1251 'On the Procedure of Transferring
of   Part  of  State  Property  to  Municipal  Ownership'  of  20
September  1995"  of  29  July  1996 and by Government Resolution
No.  261  "On  Partial Amendment of Government of the Republic of
Lithuania  Resolution  No. 1251 'On the Procedure of Transferring
of   Part  of  State  Property  to  Municipal  Ownership'  of  20
September 1995" of 23 March 1997.
     It  should  be  held  that  after  amending and changing the
aforementioned  laws  and Government resolutions these legal acts
could  not  be  applied  in  regard  to  the  House of Artists of
Lithuania  as  a state establishment, the founder of which is the
Ministry  of  Culture,  and,  according  to  them,  the  property
possessed  by  the  House  of  Artists  of Lithuania could not be
assigned  and  transferred  to  municipal  ownership, it remained
state-owned property.
     26.  While  seeking  to  implement inter alia the provisions
of  Paragraph  2of Article 42 of the Constitution, laws and other
legal  acts  were  adopted  and amended at that time, thereby one
regulated   relations   linked  to  the  protection  of  cultural
monuments and valuable objects.
     In  this  context  one  has  to  mention that on 22 December
1994  the  Seimas  adopted  the  Law  on  Protection of Immovable
Culturally   Valuable   Objects,  which  became  effective  on  1
February   1995.   In  this  law  one  indicated  its  purpose-to
guarantee  the  protection  and  increase  of culturally valuable
objects,  as  well  as  their  transfer to the future generations
(Paragraph   1  of  Article  2).  The  established  and  assessed
immovable  values  of culture had to be entered into the Republic
of  Lithuania  Registry  of  Values  of  Culture  (Paragraph 4 of
Article   8).   Municipalities   were  permitted  to  have  local
registries   of  immovable  culturally  valuable  objects,  about
which  they  had  to  inform  the Department of Cultural Heritage
(Paragraph   6   of   Article  8).  It  was  established  in  the
aforementioned  law  also that the Seimas, upon the submission of
the  Government,  approves  a  list of historical, archaeological
and   cultural  objects  of  state  importance  (Paragraph  1  of
Article  10),  that  upon  the  proposal  of  the  Department  of
Cultural  Heritage  and  approval of the State Commission for the
Protection  of  Cultural heritage, and upon the submission of the
Minister   of   Culture,   the   Government   declares  the  most
significant  immovable  culturally  valuable  objects as cultural
monuments (Paragraph 2 of Article 10).
     27.  In  this  context  it  should  also be noted that on 24
January  1995  the  Seimas  adopted the Republic of Lithuania Law
on  the  Implementation  of  the  Law  on Protection of Immovable
Culturally   Valuable  Objects,  which  became  effective  on  27
January  1995.  In  Article  9  of  this  law  it  was inter alia
established  that  the objects that are included into the list of
historical   and  cultural  monuments  of  republican  and  local
importance,   the   List  of  Newly  Established  Historical  and
Cultural  Monuments  and  the  provisional registry of historical
and   cultural   monuments   must   be   protected  as  immovable
culturally   valuable   objects   until   a  decision  is  passed
concerning   their  inclusion  into  the  Republic  of  Lithuania
Registry of Culturally Valuable Objects.
     28.  It  has  been  mentioned  that during the Soviet regime
the  so-called  Former  City  Hall  was  included  in the list of
monuments   of   architecture   of  republican  importance  as  a
monument  of  architecture  and  history.  It  was never excluded
from the list.
     It  is  to be held that during the period of validity of the
Law  on  Protection  of Immovable Culturally Valuable Objects and
the  Law  on  the  Implementation  of  the  Law  on Protection of
Immovable  Culturally  Valuable  Objects the building of the City
Hall  was  considered  to  be  a  monument  of  architecture  and
history.
     In  this  context  one  should  mention that by Order No. 66
"On  Inclusion  of  Objects  into the Registry" of the Department
of  protection  of  Cultural Values at the Ministry of Culture of
8  July  1996  one  included  inter  alia  the City Hall, address
Didžioji  St.  31,  Vilnius,  in  the  List  of  Buildings of the
Republic  of  Lithuania Registry of Immovable Culturally Valuable
Objects  and  indicated the architectural and historical value of
the building.
     One  should  mention  also that by Government Resolution No.
612  "On  Declaring  the Immovable Culturally Valuable Objects as
Monuments  of  Culture"  of 19 May 1998 the Vilnius City Hall was
declared   as   a  cultural  monument.  By  the  same  Government
resolution  one  declared  as a cultural monument the old town of
Vilnius (where the aforementioned building is located) as well.
     29.  It  was  mentioned  that  on 28 October 1993 the Seimas
adopted   the   Law  "On  the  Procedure  of  Reorganisation  and
Liquidation  of  Establishments of Culture". This law was amended
by  the  Republic  of  Lithuania Law "On Amending the Republic of
Lithuania   Law   'On   the   Procedure   of  Reorganisation  and
Liquidation  of  Establishments  of  Culture'", which was adopted
by  the  Seimas  on  13 June 1995 and became effective on 28 June
1995.
     The   Law   "On   the   Procedure   of   Reorganisation  and
Liquidation  of  Establishments  of  Culture" (wording of 13 June
1995)   was   set  forth  as  follows:  "To  set  down  that  the
establishments  of  culture that belong to the area of regulation
by  municipal  councils  may  be  reorganised  or liquidated only
upon  written  consent of the Ministry of Culture of the Republic
of Lithuania".
     30.  It  is to be held that at the time of entry into effect
of  the  Law  "On  Amending the Republic of Lithuania Law 'On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture'"  the  House  of  Artists  of  Lithuania was a state
budgetary  establishment  (the  founder of which was the Ministry
of  Culture),  the  property  possessed  by  it  was  state-owned
property,  this  establishment  was  not  assigned to the area of
regulation by municipal councils.
     It  means  that  at  that  time the Law "On the Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13 June 1995) could not be applied in regard to the
House of Artists of Lithuania.
     31.  During  the  period  which is subject to discussion, as
already  mentioned,  the  building  at  Didžioji  St. 31, was the
seat  of  the  Art Museum of Lithuania, and the seat of the House
of  Artists  of  Lithuania  was  located  at  S.  Daukanto sq. 3,
Vilnius.
     On  21  June 1995, the Government adopted Resolution No. 868
"On  Placing  the  Office  of  the  President  of the Republic of
Lithuania  in  the 19th Century Representative Palace Ensemble at
S.  Daukanto  sq.  3/8,  Totorių  St. 28, and Universiteto St. 6,
Vilnius".  By  this Government resolution one decided inter alia:
to  transfer  the  19th  century  representative palace ensemble,
located   at   S.   Daukanto   sq.   3/8,  Totorių  St.  28,  and
Universiteto   St.   6,   Vilnius,   with   all   the  buildings,
constructions  and  territory belonging to it from the balance of
the  House  of  Artists of Lithuania to the balance of the Office
of  the  President  of  the  Republic  of  Lithuania (Item 1); to
transfer     the    architectural    monument    of    republican
importance-the  ensemble  of Chodkevičiai palace (Didžioji St. 4,
Bokšto  St.  5,  Vilnius)  to  the  balance  of the Art Museum of
Lithuania  (first  section  of  Item 2); to transfer the building
of  the  Vilnius  City  Hall  (Didžioji St. 31, Vilnius) from the
balance  of  the  Art  Museum  of Lithuania to the balance of the
House  of  Artists  of  Lithuania. It was established also in the
above-mentioned  Government  resolution  that  the  Vilnius  City
Hall,  which  is intended for the performance of functions of the
House   of   Artists   of   Lithuania,   is  used  also  for  the
representative  functions  of  the  State  of  Lithuania  and the
Vilnius  City  Municipality  (Item  3),  that  the  Art Museum of
Lithuania  must  move  out  from the building of the Vilnius City
Hall  (Didžioji  St. 31, Vilnius) by 30 December 1995 (Item 5.3),
and  the  House  of  Artists  of Lithuania must move out from the
buildings   at   S.   Daukanto  sq.  3/8,  Totorių  St.  28,  and
Universiteto St. 6, Vilnius by 30 December 1995 (Item 6).
     32.  It  has  been mentioned that during the period which is
subject  to  discussion  the  House of Artists of Lithuania was a
state budgetary establishment.
     In  this  context  one  should  note that on 5 December 1995
the  Seimas  adopted  the  Republic of Lithuania Law on Budgetary
Establishments,  which  became  effective  on  1 January 1996. In
Article  1  of  this  law one indicated the purpose thereof is to
establish    "the    foundation,   reorganisation,   liquidation,
possession,  and  funding  of  establishments  that  are fully or
partially  financed  from the budget of the Republic of Lithuania
and  municipal  budgets,  as  well  as  other  essential  moments
related  to  their  activity".  According  to  Article  7  of the
aforementioned  law,  budgetary  establishments are financed from
the  state  budget  or municipal budgets, depending on who is the
founder.  The  budgetary  establishment  is  a state or municipal
institution,  which  is founded upon the procedure established by
laws,  fully  or  partially financed from the budget and referred
to  as  such in the founding statement and rules (Article 2); the
legal  basis  for  founding  budgetary  establishments  that  are
financed  from  the  budget  of  the  State  of  Lithuania is the
founding  statement  which  may  be  adopted  by  the Seimas, the
Government,  ministries,  governors  of  counties  or other state
institutions   (Paragraph   1   of   Article   3);  the  founding
statements  of  budgetary  establishments  that are financed from
municipal  budgets  are  adopted by local municipal councils upon
the  procedure  established  by  laws (Paragraph 2 of Article 3);
budgetary  establishments  are reorganised or liquidated by their
founders  upon  the  procedure  established  by  the  government,
unless    laws   provide   otherwise   (Article   4);   budgetary
establishments  are  registered,  re-registered and excluded from
the  register  upon  the  procedure  established by laws (Article
13).
     On  5  December  1995,  the Seimas also adopted the Republic
of  Lithuania  Law  on the Implementation of the Law on Budgetary
Establishments  which  became  effective  on 22 December 1995. In
this   law   one  established  inter  alia  that  the  Government
approves  by  1  March  1996  the Procedure of Reorganisation and
Liquidation  of  Budgetary  Establishments  and Write-off as well
as   Sale   of  Their  Material  Values  (Item  1),  as  well  as
guaranteed   that   by   1  July  1996  ministries,  other  state
institutions       and       executive       institutions      of
municipalities-founders                of               budgetary
establishments-particularise,  according  to the Law on Budgetary
Establishments,  the  regulations  of their subordinate budgetary
establishments (Item 2).
     After   coming   into   effect   of  the  Law  on  Budgetary
Institution   and  Law  on  the  Implementation  of  the  Law  on
Budgetary  Establishments,  decisions  related to the foundation,
reorganisation  and  liquidation, possession, financing and their
other  activity  might  be  adopted pursuant to these laws, if no
other laws regulated these relations in a different manner.
     33.  On  7  February 1996, the Government adopted Resolution
No.   227   "On   Approval   of   the   General   Regulations  of
Establishments  and  Organisations of Culture that are Maintained
from   the  Budget  of  the  State  of  Lithuania  and  Municipal
Budgets",  which  became  effective  on  15  February 1996 and by
which  one  approved  the  General  Regulations of Establishments
and  Organisations  of  Culture  that  are  maintained  from  the
budget  of  the  State  of  Lithuania and municipal budgets (Item
1),   as   well   as   established   that  founders  of  all  the
establishments  of  culture  that  are maintained from the budget
of  the  State of Lithuania and municipal budgets, by 1 July 1996
coordinate  the  regulations  of  establishments  of culture with
the  General  Regulations  of Establishments and Organisations of
Culture  that  are  maintained  from  the  budget of the State of
Lithuania and municipal budgets (Item 2).
     It  is  inter alia established in the General Regulations of
Establishments  and  Organisations of Culture that are Maintained
from   the  Budget  of  the  State  of  Lithuania  and  Municipal
Budgets,  which  were  approved  by Government Resolution No. 227
"On  Approval  of  the  General Regulations of Establishments and
Organisations  of  Culture that are Maintained from the Budget of
the  State  of  Lithuania  and  Municipal  Budgets" of 7 February
1996  that:  they regulate the founding, registration, financing,
possession,  reorganisation  and  liquidation  of  establishments
and  organisations  of  culture  which  are  partially  or  fully
maintained  from  the  budget  of  the  State  of  Lithuania  and
municipal  budgets  and  the basic activity of which is creation,
spreading  and  protection  of culture, as well as the rights and
duties    of   cultural   establishments   (Item   1);   cultural
establishments  are  divided  into national, republican, regional
and   local   (municipal)   ones   (Item   5);   every   cultural
establishment,  irrespective  of  the  fact  whether  it  has the
status  of  a  legal  person,  acts  according to the regulations
that  are  approved by the founder (first section of Item 6); the
regulations  of  national cultural establishments are approved by
the  Government  (second  section  of  Item 6); national cultural
establishments  are  founded  by  the  Ministry  of Culture and a
decision   concerning   the   founding  of  a  national  cultural
establishment  or  reorganisation  of  a  cultural  establishment
into   a  national  cultural  establishment  is  adopted  by  the
Government  upon  a  submission  of the Ministry of Culture (Item
7.1);  republican  cultural  establishments  are  founded  by the
Ministry    of   Culture   or   other   institutions   of   state
administration  (Item  7.2); regional cultural establishments are
founded  by  county  governors  or  the Ministry of Culture (Item
7.3);  local  (municipal)  cultural establishments are founded by
municipalities  upon  the  procedure  established  by  laws (Item
7.4);  it  is  considered  that a cultural establishment has been
founded,  after  the  founder  adopts  a decision on its founding
and  approves  the  regulations  of  the establishment (Item 22);
cultural   establishments  are  registered  by  the  Ministry  of
Culture  upon  the  procedure  established  by the Regulations of
the  Registry  of  Cultural  Establishments  that are approved by
the Government (Item 23).
     In  the  abovementioned  general regulations one established
that  a  cultural  establishment may be reorganised or liquidated
only  upon  receipt  of  permission  of  the  Ministry of Culture
(first   section   of   Item   9),  and  that  national  cultural
establishment  is  reorganised  by  a  Government  decision  upon
proposal of the Ministry of Culture (Item 10).
     In  the  General  Regulations of Cultural Establishments and
Organisations  that  are  Maintained from the Budget of the State
of  Lithuania  and  Municipal  Budgets,  which  were  approved by
Government  Resolution  No.  227  "On  Approval  of  the  General
Regulations  of  Establishments and Organisations of Culture that
are  Maintained  from  the  Budget  of the State of Lithuania and
Municipal  Budgets"  of  7  February  1996,  reorganisation  of a
cultural  establishment  was  defined  as incorporation, division
or  merger,  as  well  as  change  of  type of activity and aims,
which  is  related  to  transformation of organisation of work of
the  cultural  establishment (second section of Item 9). In order
to  reorganise  a  cultural  establishment  the  founder  of  the
cultural   establishment   had   to  prepare  a  project  of  its
reorganisation,  submit  it  to the Ministry of Culture one month
prior  to  the date of making a decision on reorganisation of the
cultural  establishment  and  get  its permission; in the project
of  reorganisation  one  had  to  include the name and address of
the  establishment,  purpose  and way of reorganisation, time and
basis   of   reorganisation,  property  assessment,  takeover  of
obligations  and  their  terms,  basic tasks and functions of the
establishment,   which   is   being  reorganised  or  is  already
reorganised;  together  with  the  project  of reorganisation one
had  to  submit  draft regulations of the cultural establishment,
which   would   be  effective  after  the  reorganisation  (first
section  of  Item  11).  The  Ministry  of Culture had to adopt a
decision  on  reorganisation  of the establishment within 2 weeks
from  the  date of receipt of the application (first paragraph of
Item  12);  the  founder  had  the  right  to  appeal against the
refusal  of  the Ministry of Culture to permit the reorganisation
of the cultural establishment (second section of Item 12).
     In  the  General  Regulations of Cultural Establishments and
Organisations  that  are  Maintained from the Budget of the State
of  Lithuania  and  Municipal  Budgets,  which  were  approved by
Government  Resolution  No.  227  "On  Approval  of  the  General
Regulations  of  Establishments and Organisations of Culture that
are  Maintained  from  the  Budget  of the State of Lithuania and
Municipal   Budgets"   of  7  February  1996,  liquidation  of  a
cultural  establishment  was  defined  as termination of activity
of   the  establishment  (Item  13);  in  order  to  liquidate  a
cultural    establishment    the    founder   of   the   cultural
establishment  had  to  prepare  a  project  of  its liquidation,
submit  it  to  the  Ministry  of Culture 1.5 months prior to the
date   of   making   decision  on  liquidation  of  the  cultural
establishment  and  get  its permission to liquidate the cultural
establishment;  in  the project of liquidation one had to include
the  name  and  address  of  the establishment, time and basis of
the  liquidation,  as  well as property assessment (first section
of  Item  14);  the Ministry of Culture had to make a decision on
liquidation  of  the  cultural  establishment within a month from
the  date  of  receipt  of  an  application; if no consent to the
liquidation   of   the  cultural  establishment  was  given,  the
applicant  had  to be informed about the reasons of this decision
(Item  15);  the  founder  had  the  right  to appeal against the
refusal  of  the Ministry of Culture to permit the liquidation of
the cultural establishment (Item 15).
     34.  The  House  of  Artists  of  Lithuania  is  a  cultural
establishment.  It  was  mentioned  that the founder of the House
of Artists of Lithuania was the Ministry of Culture.
     It  has  been  mentioned  that  by  Order of the Ministry of
Culture  and  Education  No. 183 "On the Regulations of the House
of  Artists  of  Lithuania"  of 22 February 1993 one approved the
Regulations  of  the  House of Artists of Lithuania. According to
Government  Resolution  No.  227  "On  Approval  of  the  General
Regulations  of  Establishments and Organisations of Culture that
are  Maintained  from  the  Budget  of the State of Lithuania and
Municipal  Budgets"  of  7  February  1996,  the  founders of all
cultural  establishments  that were maintained from the budget of
the  State  of  Lithuania  and municipal budgets (thus, the House
of  Artists  of  Lithuania  included) had to coordinate by 1 July
1996  the  regulations of respective cultural establishments with
the  General  Regulations  of Establishments and Organisations of
Culture  that  are  Maintained  from  the  Budget of the State of
Lithuania and Municipal Budgets.
     By  Order  of  the Ministry of Culture No. 186 "On the House
of  Artists  of Lithuania" of 15 May 1996 one recognised Order of
the   Ministry   of   Culture  and  Education  No.  183  "On  the
Regulations   of  the  House  of  Artists  of  Lithuania"  of  22
February   1993   as   no   longer  effective  and  approved  new
regulations of the House of Artists of Lithuania.
     According  to  the  new  Regulations of the House of Artists
of  Lithuania  the  House  of Artists of Lithuania is a budgetary
establishment,  the  founder  of which is the Ministry of Culture
(Item  2),  its seat is located in Didžioji St. 31, Vilnius (Item
3),  its  financed  from  the  budget  of  the State of Lithuania
(item  8).  The  following  is  established in these regulations:
the  basic  objective  of the House of Artists of Lithuania is to
popularize  art  and to organise high quality events (Item 6); in
order   to  achieve  this  objective  the  House  of  Artists  of
Lithuania   inter   alia   organises   various  cultural  events,
popularize  the  newest  and most important achievements, forums,
conferences  on  creative  practise and theory of art, propagates
art  of  Lithuania  and  other  countries, develops international
relations  between  artists,  organises  meetings  of  Lithuanian
artists  with  fellow-countrymen  residing  abroad  (Item 7); the
Council  of  the  House of Artists of Lithuania which comprises 7
members  and  is  made  in  equal parts of members elected at the
general  meeting  of  the  staff and representatives appointed by
the  administration,  and  the  founder  of  the House of Artists
appoints  its  representative to the council, participates in the
possession  of  the House of Artist of Lithuania with an advisory
vote (Item 15).
     35.  It  is  to  be  held  that  according  to  the  General
Regulations  of  Cultural  Establishments  and Organisations that
are  Maintained  from  the  Budget  of the State of Lithuania and
Municipal  Budgets,  which were approved by Government Resolution
No.   227   "On   Approval   of   the   General   Regulations  of
Establishments  and  Organisations of Culture that are Maintained
from   the  Budget  of  the  State  of  Lithuania  and  Municipal
Budgets"  of  7 February 1996 and new Regulations of the House of
Artists   of  Lithuania  that  were  approved  by  Order  of  the
Ministry  of  Culture  No.  186  "On  the  House  of  Artists  of
Lithuania"  of  15  May  1996,  the House of Artists of Lithuania
was  considered  to  be  a  republican cultural establishment. It
could   be  reorganised  or  liquidated  only  its  founder,  the
Ministry  of  Culture. Property possessed by the House of Artists
of   Lithuania,  including  the  building  at  Didžioji  St.  31,
Vilnius, was state-owned property.
     36.  When  implementing the Republic of Lithuania Law on the
Implementation   of   the   Law   on   Budgetary  Establishments,
according  to  which the Government had to inter alia approve the
Procedure   of   Reorganisation   and  Liquidation  of  Budgetary
Establishments,   the   Government   on   10   May  1996  adopted
Resolution   No.  554  "On  the  Approval  of  the  Procedure  of
Reorganisation  and  Liquidation  of  Budgetary  Establishments",
which  became  effective on 18 May 1996 and by which one approved
the  Procedure  of  Reorganisation  and  Liquidation of Budgetary
Establishments.
     It   is   established   in  Item  1  of  the  aforementioned
procedure  that  it  is  applicable  to  all  state and municipal
budgetary   institutions,   and   in   Item   5   that  budgetary
establishments  are  reorganised  or liquidated upon the decision
of the founders, if the laws do not provide differently.
     The   following   was   established   in  the  Procedure  of
Reorganisation  and  Liquidation of Budgetary Establishments that
was  approved  by  Government Resolution No. 554 "On the Approval
of  the  Procedure of Reorganisation and Liquidation of Budgetary
Establishments"  of  10  May 1996: budgetary establishments cease
to  exist  by  way  of  reorganisation  (when  they are joined by
merger,  or  divided,  or incorporated into other establishments,
etc.)(Item  3);  in  the  cases established by law the founder of
the  budgetary  establishment,  who  intends  to  reorganise  the
establishment,  has  to prepare the project of reorganisation and
submit  it  to  the respective ministry, county governor or other
state  institution  (Item 6); in the project of reorganisation of
budgetary  establishment  one  must indicate the name and address
of  the  establishment,  the  purpose  and way of reorganisation,
the  phases  and  time  of  reorganisation,  its  basis, property
assessment,  the  procedure of property assessment and inventory,
property  distribution,  as  well  as  accepting  for  storage of
book-keeping  and  financial  accountability  documents, takeover
of  obligations  and  their  terms, the basic tasks and functions
of  the  reorganised  establishment as well as its structure; the
draft  regulations  of  the cultural establishment which would be
effective  after  the  reorganisation  must  be  attached to this
project  (Item  7);  the  deadline  for submitting the project of
reorganisation   of   budgetary   establishments   is  set  by  a
respective  ministry,  county governor or other state institution
(Item 7).
     It  is  established  in  the Procedure of Reorganisation and
Liquidation  of  Budgetary  Establishments  that  was approved by
Government  Resolution  No. 554 "On the Approval of the Procedure
of  Reorganisation  and  Liquidation of Budgetary Establishments"
of  10  May  1996  that  budgetary  establishments are liquidated
when  their  activity  is  fully terminated (Item 4); in order to
liquidate   the   establishment  the  founder  of  the  budgetary
establishment  must  prepare  the  project  of  its  liquidation,
submit  it  in  the  cases  established  by  law  to a respective
ministry,  county  administrator  or  other state institution and
get  their  permission;  in  the  project of liquidation one must
indicate  the  name  and  address of the establishment, basis and
term  of  liquidation,  property  assessment,  the  procedure  of
property  assessment  and  inventory,  property  distribution, as
well  as  accepting  for  storage  of  book-keeping and financial
accountability  documents  (Item 10); the deadline for submitting
the  project  of  liquidation  of budgetary establishments is set
by   a  respective  ministry,  county  governor  or  other  state
institution  (Item  10);  a  liquidation  commission is set up in
order  to  liquidate  a budgetary establishment, it is formed and
its   chairman  is  appointed  by  the  founder  (Item  11);  the
budgetary    establishment    acquires    the   status   of   the
establishment  under  liquidation  as  from  the date of making a
decision  to  liquidate  it; one informs about the liquidation of
the  establishment  in the most popular dailies or other means of
public information (Item 11).
     In  Item  15 of the aforementioned procedure one establishes
the  procedure,  upon  which  decisions  concerning the change of
subordination  of  budgetary  establishments are made. In case an
establishment  is  transferred  from  the sphere of regulation by
one  ministry,  other  state institution and county to the sphere
of   regulation   by  another  ministry,  state  institution  and
county,  a  decision  on  the change of its subordination is made
by  the  Government  upon  the  submission  of  the  institutions
concerned,  which  is  coordinated  with  the Ministry of Finance
(Item  15.1);  in  case  a budgetary establishment is transferred
from  the  sphere  of regulation of the municipality of a certain
area  or  city to the sphere of regulation of the municipality of
another   area  or  city,  in  order  to  perform  the  delegated
functions  of  the state, a decision concerning the change of its
subordination  is  made  by the Government upon the submission of
municipalities  of  cities  or  areas,  which is coordinated with
the  Ministry  of  Finance  (Item 15.2.1); or in order to perform
independent  functions  that are transferred to municipalities, a
decision  concerning  the  change  of  its  subordination is made
upon  the  procedure established by laws (Item 15.2.2); in case a
budgetary   establishment  is  transferred  from  the  sphere  of
regulation  by  the  state  to  the  sphere  of  regulation  by a
municipality   and   from   the   sphere   of   regulation  by  a
municipality  to  the  sphere  of  regulation  by  the  state,  a
decision  concerning  the  change  of  its  subordination is made
upon the procedure established by laws (Item 15.3).
     37.  It  has  to  be  noted  that  in  the  Law on Budgetary
Establishments  there  was  no provision regulating the change of
subordination  of  budgetary  establishments the purpose of which
is   to   take   care  of  development  of  culture  (inter  alia
establishments  that  provide  services  of  public culture) from
the   sphere  of  regulation  by  the  state  to  the  sphere  of
regulation  by  a  municipality and from the sphere of regulation
by  a  municipality  to  the  sphere  of regulation by the state.
Other  laws  that  were  effective  at  that  time  contained  no
provisions regulating this issue, too.
     Meanwhile,  the  Procedure of Reorganisation and Liquidation
of  Budgetary  Establishments,  which  was approved by Government
Resolution   No.  554  "On  the  Approval  of  the  Procedure  of
Reorganisation  and  Liquidation  of Budgetary Establishments" of
10  May  1996,  contained  separate  chapters "Reorganisation and
Liquidation  of  Establishments"  and "Change of Subordination of
Establishments".
     It  means  that  in  the  Procedure  of  Reorganisation  and
Liquidation  of  Budgetary  Establishments, which was approved by
Government  Resolution  No. 554 "On the Approval of the Procedure
of  Reorganisation  and  Liquidation of Budgetary Establishments"
of  10  May  1996,  the  change  of  subordination  of  budgetary
establishments,  inter  alia  the  change  of their subordination
from  the  sphere  of  regulation  by  the state to the sphere of
regulation  by  a  municipality and from the sphere of regulation
by  a  municipality  to  the sphere of regulation by the state is
considered  to  be  an  independent legal institute, which is not
covered  by  the  institutes of reorganisation and liquidation of
budgetary establishments.
     38.   The   Constitution   establishes   the  constitutional
principle  of  a state under the rule of law. The essence of this
principle  is  the  rule of law. The constitutional imperative of
the  rule  of  law  means  that  the  freedom  of  state power is
limited  by  law,  to  which all the entities of legal relations,
including  the  law-making  entities,  must  obey (Constitutional
Court ruling of 13 December 2004).
     The   Government   is   bound   by   its   own   resolutions
(Constitutional  Court  ruling  of  28 June 2001). The Government
must  follow  the  requirements  set therein until the Government
resolution is amended or annulled.
     39.  Thus,  the  provision  of Item 15.3 of the Procedure of
Reorganisation   and  Liquidation  of  Budgetary  Establishments,
which  was  approved  by  Government  Resolution  No. 554 "On the
Approval  of  the  Procedure of Reorganisation and Liquidation of
Budgetary  Establishments"  of  10  May  1996,  that  in  case  a
budgetary   establishment  is  transferred  from  the  sphere  of
regulation  by  the  state  to  the  sphere  of  regulation  by a
municipality  (as  well  as  from  the  sphere of regulation by a
municipality  to  the  sphere  of  regulation  by  the  state), a
decision  concerning  the  change  of  its  subordination is made
upon  the  procedure  established  by  laws,  means  that until a
respective  law  is  adopted, no state institution, including the
Government,  may  adopt  a  decision  to  transfer  any budgetary
establishment  from  the sphere of regulation by the state to the
sphere  of  regulation  by  a  municipality  (as well as from the
sphere   of  regulation  by  a  municipality  to  the  sphere  of
regulation by the state).
     In  the  context  of  the case of the constitutional justice
at  issue  one  should  note  that  at  the  time when Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997, the compliance of Item 2.4 of
which  with  the  Constitution is disputed by the petitioner, was
adopted  and  became effective, no law regulating the transfer of
budgetary  establishments  from  the  sphere of regulation by the
state   to  the  sphere  of  regulation  by  a  municipality  was
adopted.
     40.  On  10  March 1997, the Council of Vilnius City adopted
Decision  No.  225  "On the Return of Vilnius City Hall", whereby
it  was  decided  to  request  that  the  Government  return  the
building  of  the  Vilnius  City  Hall  (Didžioji  St. 31) to the
Vilnius City Municipality.
     41.  By  Letter  No. 09-01-414 of 13 March 1997 the Mayor of
Vilnius  City  addressed the Government with a request to discuss
a   possibility  to  return  the  historical  Vilnius  City  Hall
(Didžioji  St.  31) to the Vilnius City Municipality. The request
was  based  on the fact that from the date of construction of the
Vilnius  City  Hall  till the 19th century it was the seat of the
Magistrate,  and  that  the  Vilnius  City Municipality "is, from
the  historical  point  of  view,  the  true and only heir to the
Vilnius  City  Hall".  It  is  especially  stressed in the latter
that  the  Vilnius  City  Hall  will  retain  the  function of an
establishment meant for cultural purposes.
     42.  It  is  to be held that the Council of Vilnius City and
the  Mayor  of  Vilnius  City  addressed  the Government with the
request  to  transfer  to  the  Vilnius City Municipality not the
House  of  Artists of Lithuania-a cultural establishment financed
from  the  budget  of  the state-but the building at Didžioji St.
31,  Vilnius,  in  which  the  seat  of the above-mentioned state
establishment is located.
     43.  It  has  been  mentioned  that  on  8 November 1997 the
Government   adopted   Resolution  No.  1320  "On  the  House  of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House   of  Artists  of  Lithuania",  by  which  inter  alia  the
Ministry  of  Culture  was  commissioned to transfer by 1 January
1998  the  functions  of  the  founder of the House of Artists of
Lithuania  to  the  Vilnius  City  Municipality (Item 1), and the
Vilnius  City  Municipality was commissioned by 1 January 1998 to
take  over  from  the  House of Artists of Lithuania the building
at  Didžioji  St. 31, Vilnius, for possession and use by right of
trust  as  state-owned property (Item 2.3), and while discharging
the  functions  of  the  founder  of  the  House  of  Artists  of
Lithuania,  not  to  change the purpose of the House, type of its
activity  nor  its  status,  and to document this in a trilateral
agreement  on  cooperation  between  the  Vilnius City Board, the
Ministry  of  Culture and the House of Artists of Lithuania (Item
2.4).  This  Government resolution became effective on 6 December
1997.
     44.  The  provision  of  Item 1 of Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  that  the  Ministry of Culture has to transfer by 1 January
1998  the  functions  of  the  founder of the House of Artists of
Lithuania  to  the  Vilnius  City  Municipality  means  that  the
Government  decided  to  change the subordination of the House of
Artists  of  Lithuania:  the House of Artists of Lithuania had to
be  converted  from  a  state  budgetary establishment-republican
cultural     establishment     to     a    municipal    budgetary
establishment-local (municipal) cultural establishment.
     45.  The  provision of Item 2.3 of Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  that  the  Vilnius  City Municipality has to take over from
the  House  of  Artists of Lithuania the building at Didžioji St.
31,  Vilnius,  for  possession  and  use  by  right  of  trust as
state-owned   property   means   by   1  January  1998  that  the
aforementioned  building  remained  state-owned  property and the
Vilnius  City  Municipality  had  the right to possess and use it
by  right  of  trust.  At the time when the Government resolution
became   effective,   the   above-indicated  item  of  Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997  could not be construed as the
one  which  creates  legal  preconditions  for  transferring  the
aforementioned  building  to  the  ownership  of the Vilnius City
Municipality.
     46.  The  provision of Item 2.4 of Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  that  while discharging the functions of the founder of the
House  of  Artists  of  Lithuania,  the Vilnius City Municipality
may  not  change  the  purpose of the House, type of its activity
nor   its   status,  and  must  document  this  in  a  trilateral
agreement  on  cooperation  between  the  Vilnius City Board, the
Ministry  of  Culture  and  the  House  of  Artists of Lithuania,
means  that  the Government, even if it decided that the House of
Artists  of  Lithuania had to be converted from a state budgetary
establishment   into   a   municipal   budgetary   establishment,
consolidated  status  quo,  i.e.  the  purpose  of  the  House of
Artists  of  Lithuania, type of its activity and its status could
not  be  changed  in  comparison to the purpose, type of activity
and  status  that  were  in  place  prior  to  adoption  of  this
Government  resolution,  by  which one decided that the rights of
the  founder  of  the  House  of  Artists  of  Lithuania  must be
transferred  to  the  Vilnius  City Municipality. Thus, the House
of  Artists  of  Lithuania  had  to  continue  being  a budgetary
cultural  establishment;  its basic purpose had to continue being
popularisation   of  art  and  organisation  of  events  of  good
quality;  in  order  to achieve this purpose the House of Artists
of  Lithuania  had  to  continue  inter  alia  organising various
cultural  events,  popularising  the  newest  and  most important
achievements  in  art,  organising  forums and conferences on the
issues  of  creative  practice and theory of art, propagating art
of   Lithuania  and  other  countries,  developing  international
relations  of  artists, organising meetings of Lithuanian artists
with  fellow  country-men  residing  abroad;  the  Council of the
House  of  Artists  of  Lithuania had to continue contributing to
the  possession  of  the  House  of  Artists of Lithuania with an
advisory vote; etc.
     The  provision  of  Item 2 of Government Resolution No. 1320
"On  the  House  of  Signatories  to  the  Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  "To  commission  the  Vilnius City Municipality <...> while
discharging  the  functions  of  the  founder  of  the  House  of
Artists  of  Lithuania  not  to  change the purpose of the House,
type  of  its  activity  and  its  status, and document this in a
trilateral  agreement  on  cooperation  between  the Vilnius City
Board,  the  Ministry  of  Culture  and  the  House of Artists of
Lithuania"  means  that  the  Vilnius  City  Municipality  has to
accept  an  obligation by the aforementioned trilateral agreement
not  to  take  any  actions  and  not  to adopt any decisions, by
which  the  purpose of the House of Artists of Lithuania, type of
its  activity  and  its  status could be changed or preconditions
could  be  created  for  changing  the  purpose  of  the House of
Artists  of  Lithuania,  type  of  its activity and its status in
the future.
     The  formula  "trilateral  agreement on cooperation" of Item
2.4   of   Government  Resolution  No.  1320  "On  the  House  of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists of Lithuania" of 28 November 1997 implies that
activity  of  the  House of Artists of Lithuania must be based on
cooperation  between  the Vilnius City Municipality, the Ministry
of  Culture  and  the House of Artists of Lithuania, and that the
parties  to  the  above-mentioned cooperation agreement may agree
on  the  forms  and  procedures  of cooperation. Such cooperation
must  be  aimed  at  developing  the  activity  of  the  House of
Artists   of   Lithuania   in  a  way,  which  would  ensure  the
continuity  of  the  entrenched  in  this  Government  resolution
purpose  of  the  House  of  Artists  of  Lithuania,  type of its
activity  and  its  status.  The provision of the above-mentioned
Government  resolution  concerning  the  trilateral  agreement on
cooperation  between  the  Vilnius  City  Board,  the Ministry of
Culture  and  the House of Artists of Lithuania is to be assessed
as  an  additional  guarantee that the status quo of the House of
Artists  of  Lithuania  will  not be changed-its purpose, type of
activity  and  status  will  remain  the same as they were at the
time of adoption of this Government resolution.
     47.  It  should  be  noted  that at the time when Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"   of   28   November   1997  was  adopted  and  became
effective,  the  Law  "On  the  Procedure  of  Reorganisation and
Liquidation  of  Establishments  of  Culture" (wording of 13 June
1995)  was  effective, according to which cultural establishments
that  belonged  to the sphere of regulation by municipal councils
could  be  reorganised or liquidated only upon written consent of
the Ministry of Culture.
     Having  held  that the Government by Resolution No. 1320 "On
the   House   of  Signatories  to  the  Act  of  Independence  of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  decided  to  change  the  subordination  of  the  House  of
Artists  of  Lithuania and that the House of Artists of Lithuania
had  to  be  converted  from  a  state  budgetary establishment-a
republican   cultural   establishment-to  a  municipal  budgetary
establishment,  a  local  (municipal) cultural establishment, one
should  hold  also  that  by the aforementioned resolution of the
Government  this  establishment  was  assigned (transferred) from
the   sphere  of  regulation  by  the  state  to  the  sphere  of
regulation by the Council of the Vilnius City Municipality.
     The  prohibition  imposed  on  the Vilnius City Municipality
to  change  the  status  of  the  House  of Artists of Lithuania,
which  is  consolidated  in Item 2.4 of Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997,  means  also  that  the  Vilnius  City  Municipality as the
founder  of  the  House  of  Artists of Lithuania had no right to
liquidate  the  House  of  Artists  of  Lithuania, thus it had no
right  to  apply  to  the Ministry of Culture with the request to
permit  the  liquidation  of the House of Artists of Lithuania as
well.  If  the  Vilnius City Municipality decided nevertheless to
address  the  Ministry  of Culture with such a request, according
to  the  aforementioned  Item  of  the  Government resolution the
Ministry  of  Culture  may  not  grant such permission (although,
according  to  the  Law  "On  the Procedure of Reorganisation and
Liquidation  of  Establishments  of  Culture" (wording of 13 June
1995)  it  had  the  power  to  decide  whether to consent to the
liquidation  of  the  House of Artists of Lithuania as a cultural
establishment,  which  was  assigned  to the sphere of regulation
by the Council of the Vilnius City Municipality).

                               IV                                
     On   the   compliance  of  the  Law  "On  the  Procedure  of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13  June  1995)  with Paragraph 2 of Article 120 of
the Constitution.
     1.  It  has  been  mentioned  that it was established in the
Law  "On  the  Procedure  of  Reorganisation  and  Liquidation of
Establishments  of  Culture"  (wording  of  13  June  1995)  that
cultural  establishments  that belong to the sphere of regulation
by  municipal  councils  may  be  reorganised  or liquidated only
upon written consent of the Ministry of Culture.
     2. It was held in this Constitutional Court ruling that:
     -  Paragraph  2  of  Article 120 of the Constitution wherein
it   is   established   that   municipalities   act   freely  and
independently   within   their   competence,   which   shall   be
established  by  the  Constitution  and  laws, and Paragraph 3 of
Article  119  of  the  Constitution,  wherein  it  is established
inter   alia   that  procedure  of  activity  of  self-government
institutions   is  established  by  law  implies  also  that  the
legislator  has  the  duty  to  set  by  laws  the  procedure  of
establishment  of  municipal  establishments  or enterprises, and
municipal  councils  must  establish  municipal establishments or
enterprises  according  to the requirements set in laws; that the
right  of  municipal councils to establish various accountable to
them  institutions-municipal  establishments  or enterprises that
are   necessary   to  municipalities  in  order  to  perform  the
functions   transferred  to  them-implies  also  their  right  to
liquidate,  reorganize  or  upon the established procedure in any
other    way    restructure   the   aforementioned   institutions
(irrespective  of  the  way  how such liquidation, reorganisation
or  restructuring  in  any  other way of municipal establishments
or  enterprises  is  called  in  laws or substatutory legal acts,
including decisions of respective municipal councils);
     -  the  legislator,  while  paying heed to the Constitution,
may  establish  by  laws  certain  conditions  and/or  procedure,
which  must  be  followed  by  municipalities when they implement
their  rights  of the founder of institutions or enterprises that
are  founded  by  them,  moreover,  one  may  set  by  laws other
restrictions  that  restrict  to  a  certain extent the rights of
municipalities  as  the  founders of respective establishments or
enterprises;
     -  the  transfer  of rights of the founder of establishments
or  enterprises,  which  were  held  previously  by certain state
institutions,  does  not  mean  that one may not establish by law
certain  conditions  and/or procedures, which must be followed by
municipalities  when  the  exercise  of the rights of the founder
of    the    above-mentioned    establishments   or   enterprises
transferred  to  them,  moreover, this does not mean that one may
not  establish  by  law  other  limitations  that  restrict  to a
certain  extent  the  rights of municipalities as the founders of
establishments  or  enterprises  that are newly assigned to them;
when  establishing  the above-mentioned conditions, procedures or
other   limitations,  one  must  not  violate  the  interests  of
municipalities   and   pay   heed   to   the  entrenched  in  the
Constitution    independence   and   freedom   of   activity   of
municipalities   within   the   competence   established  by  the
Constitution  and  laws,  as  well as principles of co-ordination
of interests of municipalities and the state;
     -  the  legislator,  while  paying heed to the Constitution,
may  establish  by  laws  certain  conditions  and/or  procedure,
which  must  be  followed  by  municipalities when they implement
their  rights  of  the  founder  of establishments or enterprises
(inter  alia  establishments or enterprises that provide services
of  public  culture) that are founded by them and that contribute
to  the  development  of  culture,  as  well as other limitations
that  restrict  to  a certain extent the rights of municipalities
as  the  founders of respective establishments or enterprises and
guarantee   that   municipalities   will   properly  perform  the
function   of   support   and  protection  of  culture  which  is
transferred to them (to the established extent);
     -   when   a  respective  state  institution  transfers  the
establishment  or  enterprise  of  culture to the municipal level
(inter  alia  having  transferred  the  rights  of the founder to
municipality),   the  state  may  and,  in  certain  cases  must,
establish  by  the  law  various  restrictions  applicable to the
municipality,  which  must  be  followed  by  the  latter when it
exercises  the  rights  of the founder, inter alia when it adopts
decisions   on   reorganisation,   liquidation   or   any   other
restructuring   of   establishments   or   enterprises  that  are
transferred  to  municipalities;  in  certain cases, if the state
establishes  no  such  restrictions applicable to municipalities,
the  performance  of  the  function  of support and protection of
culture,  which  is  transferred  to  the  municipal level, would
become  more  difficult  or municipalities could even refuse to a
certain  extent  the  performance  of the function of support and
protection  of  culture,  which is set as their function by laws;
this  restriction  of  independence  of municipalities originates
from  the  Constitution and in itself should not be considered as
disregard  of  interests  of  municipalities; by this restriction
originating  from  the Constitution one ensures the co-ordination
of interests of municipality and the state.
     3.  By  the  requirement  established  in  the  Law  "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture"  (wording  of  13  June  1995)  that  prior  to  the
liquidation   or   reorganisation   of   cultural  establishments
belonging  to  the  sphere of their regulation municipal councils
must  receive  written  consent  of  the  Ministry of Culture one
seeks   to   attain  a  publicly  important  objective-to  ensure
execution  of  the  support  and  protection  of  culture  as the
function   of   the   state   which   is   consolidated   in  the
Constitution,  to  ensure  the  preservation  of public interest,
the  existence  of  the  system of institutions that are aimed at
taking   care   of   the   development  of  culture  (inter  alia
establishments  or  enterprises  that  provide services of public
culture) and implementation of national policy of culture.
     By  such  legal  regulation one does not fail to pay heed to
the   interests   of  municipality  nor  are  the  constitutional
principles   of   independence   and   freedom   of  activity  of
municipalities   according  to  the  competence  defined  in  the
Constitution  and  laws,  the  principles of co-ordination of the
interests  of  municipalities  and  the  state,  as  well  as the
constitutional concept of local self-government, violated.
     4.   Taking   account  of  the  aforementioned  arguments  a
conclusion  is  to  be  made  that  the  Law "On the Procedure of
Reorganisation  and  Liquidation  of  Establishments  of Culture"
(wording  of  13  June 1995) was not in conflict with Paragraph 2
of Article 120 of the Constitution.

                                V                                
     On  the  compliance  of  Items  1, 2.3 and 2.4 of Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997 with Paragraph 2 of Article 94
of  the  Constitution and the constitutional principle of a state
under the rule of law.
     1.  It  has been mentioned that by Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the  House of Artists of Lithuania" of 8 November
1997  inter  alia  the  Ministry  of  Culture was commissioned to
transfer  the  functions  of  the founder of the House of Artists
of  Lithuania  to the Vilnius City Municipality by 1 January 1998
(Item  1),  and the Vilnius City Municipality was commissioned to
take  over  from  the  House of Artists of Lithuania the building
at  Didžioji  St. 31, Vilnius, for possession and use by right of
trust  as  state-owned property by 1 January 1998 (Item 2.3), and
while  discharging  the  functions of the founder of the House of
Artists  of  Lithuania,  not  to change the purpose of the House,
type  of  its  activity and its status, and to document this in a
trilateral  agreement  on  cooperation  between  the Vilnius City
Board,  the  Ministry  of  Culture  and  the  House of Artists of
Lithuania (Item 2.4).
     2. It was held in this Constitutional Court ruling:
     -  assignment  of  any  state institution or enterprise to a
respective  municipality,  inter  alia  transfer of the rights of
the  founder  of  this institution (establishment or enterprise),
through  which  functions  of  the  state  are  performed, to the
municipality  must  be  based on the law; the established by such
law   legal   regulation,   which   is   followed  by  the  state
institution  enjoying  the  powers to issue legal acts, according
to   which  a  respective  state  institution  (establishment  or
enterprise),   through   which   functions   of   the  state  are
performed,  is  assigned  to  the  municipality,  inter  alia the
rights  of  the  founder  of  this institutions (establishment or
enterprise),   through   which   functions   of   the  state  are
performed,  are  transferred,  may  be general (lex generalis) or
special (lex specialis);
     -  the  requirement  to  regulate  relations of changing the
subordination    of   state   institutions   (establishments   or
enterprises)  the  purpose  of  which  is  to  take  care  of the
development    of   culture   (inter   alia   establishments   or
enterprises  that  provide  public  services)  by laws originates
from the Constitution.
     3.  The  Government  inter  alia  executes  laws  (Item 2 of
Article  94  of the Constitution), administers the affairs of the
country (Item 1 of Article 94 of the Constitution).
     It  was  held  that  the constitutional principle of a state
under  the  rule  of law and the constitutional imperative of the
rule  of  law  mean that the freedom of state power is limited by
law,  to  which  all  the  entities of legal relations, including
the  law-making  entities,  must  obey. It was held also that the
Government  is  bound  by  its own resolutions and the Government
must  follow  the  requirements  set therein until the Government
resolution is amended or annulled.
     4.   When   deciding   whether  Items  1,  2.3  and  2.4  of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of  28 November 1997 are not in conflict with the
Constitution  it  is to be noted that at the time of the adoption
and   coming   into   effect  of  the  aforementioned  Government
resolution  Government  Resolution  No.  554  "On the Approval of
the  Procedure  of  Reorganisation  and  Liquidation of Budgetary
Establishments"  of  10  May  1996 was effective, by Item 15.3 of
the  Procedure  of  Reorganisation  and  Liquidation of Budgetary
Establishments  that  was  approved  thereby one established that
in  case  the  budgetary  establishment  is  transferred from the
sphere  of  regulation  by  the state to the sphere of regulation
by  a  municipality  and  from  the  sphere  of  regulation  by a
municipality  to  the  sphere  of  regulation  by  the  state,  a
decision  concerning  the  change  of  its  subordination is made
upon the procedure established by laws.
     It has been held in this Constitutional Court ruling:
     -  at  the  time when Government Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of Artists of Lithuania" of 28 November 1997 was
adopted   and   went   into  effect,  in  the  Law  on  Budgetary
Establishments  there  was  no provision regulating the change of
subordination  of  budgetary  establishments the purpose of which
is   to   take   care  of  development  of  culture  (inter  alia
establishments  that  provide  services  of  public culture) from
the   sphere  of  regulation  by  the  state  to  the  sphere  of
regulation  by  a  municipality and from the sphere of regulation
by  a  municipality  to  the  sphere  of regulation by the state;
other  laws  that  were  effective  at  that  time  contained  no
provisions regulating this issue, either;
     -   the   provision   of  Item  15.3  of  the  Procedure  of
Reorganisation   and   Liquidation  of  Budgetary  Establishments
which  was  approved  by  Government  Resolution  No. 554 "On the
Approval  of  the  Procedure of Reorganisation and Liquidation of
Budgetary   Establishments"  of  10  May  1996  that  in  case  a
budgetary   establishment  is  transferred  from  the  sphere  of
regulation  by  the  state  to  the  sphere  of  regulation  by a
municipality  (as  well  as  from  the  sphere of regulation by a
municipality  to  the  sphere  of  regulation  by  the  state), a
decision  concerning  the  change  of  its  subordination is made
upon  the  procedure  established by laws means also that until a
respective  law  is  adopted, no state institution, including the
Government,  may  adopt  a  decision  to  transfer  any budgetary
establishment  from  the sphere of regulation by the state to the
sphere  of  regulation  by  a  municipality  (as well as from the
sphere   of  regulation  by  a  municipality  to  the  sphere  of
regulation by the state);
     -  at  the  time when Government Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of Artists of Lithuania" of 28 November 1997 was
adopted  and  became  effective,  the  compliance  of Item 2.4 of
which  with  the  Constitution  is disputed by the petitioner, no
law  regulating  the  transfer  of  budgetary establishments from
the   sphere  of  regulation  by  the  state  to  the  sphere  of
regulation by a municipality was adopted.
     5.  It  has been held that by Government Resolution No. 1320
"On  the  House  of  Signatories  to  the  Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  one  decided  to  change  the subordination of the House of
Artists  of  Lithuania  and  they  had  to  be transformed from a
state    budgetary    establishment,    a   republican   cultural
establishment,   into  a  municipal  budgetary  establishment,  a
local   (municipal)   institution,   as   well  as  that  by  the
aforementioned   Government  resolution  this  establishment  was
transferred  from  the  sphere  of regulation by the state to the
sphere   of  regulation  by  the  Council  of  the  Vilnius  City
Municipality.
     Thus  the  Government,  which by its Resolution 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of  Artists  of  Lithuania"  of 28 November 1997
commissioned  the  Ministry of Culture to transfer to the Vilnius
City  Municipality  the  rights  of  the  founder of the House of
Artists  of  Lithuania  (Item 1) and established that the Vilnius
City  Municipality  becomes  the  founder of the House of Artists
of   Lithuania   (Items  1  and  2.4),  i.e.  which  changed  the
subordination   of   the   House  of  Artists  of  Lithuania  and
transferred  them  from  the sphere of regulation by the state to
the  sphere  of  regulation  by  the  Council of the Vilnius City
Municipality,  failed  to  follow the requirements that it itself
had   set-the   provision  of  Item  15.3  of  the  Procedure  of
Reorganisation  and  Liquidation of Budgetary Establishments that
was  approved  by  Government Resolution No. 554 "On the Approval
of  the  Procedure of Reorganisation and Liquidation of Budgetary
Establishments"   of  10  May  1996  that  in  case  a  budgetary
establishment  is  transferred  from  the sphere of regulation by
the  state  to  the  sphere  of  regulation  by a municipality, a
decision  concerning  the  change  of  its  subordination is made
upon the procedure established by laws.
     6.   It   was   mentioned   that   immediately   after   the
Constitution  became  effective, a legal situation occurred where
most  of  the  laws  establishing the Government powers to decide
by  resolutions  issues of administration of the country have not
been  adopted  yet  and  the Government used to adopt resolutions
which  were  not  directly  based on laws establishing respective
powers  of  the  Government  as  well.  In  addition, it has been
mentioned  that  when  deciding  in  the  cases of constitutional
justice  whether  such Government resolutions are not in conflict
with  the  Constitution,  one  should  also take into account the
fact  whether  respective  Government resolutions were not caused
by  the  necessity  to  immediately  implement some provisions of
the  Constitution,  despite  the  fact that their implementation,
thus  the  Government  powers  in  respective areas, had not been
regulated by laws yet.
     It  was  held  also  that  the  aforementioned  transitional
period,  when  the said specific legal situation was in place, is
long over.
     It  should  be  noted  in  the context of the constitutional
justice  case  at  issue  that  this  period  had expired already
prior  to  the  adoption  of Resolution No. 1320 "On the House of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania"  of  28  November  1997 by the
Government.
     It  is  to  be  mentioned  also  that  the issues which were
decided  by  the  aforementioned Government resolution are not to
be  considered  the  decisions  caused  by  the necessity for the
Government,   which  under  the  Constitution  enjoys  powers  to
administer   state   affairs,   to   immediately  implement  some
provisions of the Constitution.
     7.  Thus,  at  the  time  of  the adoption of Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997  the  Government  had no power directly arising from the law
or  from  the  Constitution to commission the Ministry of Culture
to  transfer  to  the  Vilnius City Municipality the functions of
the  founder  of  the  House  of  Artists  of  Lithuania,  nor to
establish   that   the  Vilnius  City  Municipality  becomes  the
founder  of  the  House  of  Artists  of Lithuania (to change the
subordination  of  the House of Artists of Lithuania and transfer
it  from  the  sphere of regulation by the state to the sphere of
regulation by the Council of the Vilnius City Municipality).
     8.  By  such legal regulation established in Items 1 and 2.4
of  Government  Resolution  No. 1320 "On the House of Signatories
to  the  Act  of  Independence  of  Lithuania  and  the  House of
Artists  of  Lithuania"  of  28  November  1997 one failed to pay
heed  to  the  constitutional principle of a state under the rule
of  law  and  the  requirement  of  Item  2  of Article 94 of the
Constitution that the Government executes laws.
     9.  Taking  account  of  the  above-mentioned  arguments one
should  conclude  that  Items  1 and 2.4 of Government Resolution
No.   1320   "On   the   House  of  Signatories  to  the  Act  of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997 are in conflict with Item 2 of
Article  94  of the Constitution and the constitutional principle
of a state under the rule of law.
     10.  It  has  been  mentioned that it is established in Item
2.3   of   Government  Resolution  No.  1320  "On  the  House  of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania"  of  28 November 1997 that the
Vilnius  City  Municipality  must  take  over  from  the House of
Artists  of  Lithuania  the  house  located  at  Didžioji St. 31,
Vilnius  for  possession  and  use  as state-owned property under
the right of trust by 1 January 1998.
     It  has  been  mentioned  also  that  the  disputed  by  the
petitioner  Item  2.4  of  Government Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of  Artists  of  Lithuania"  of 28 November 1997
regulates  relations  linked to the House of Artists of Lithuania
and  it  is  inseparably  related  to  Items  1  and  2.3 of this
Government resolution.
     11.  After  it  was  consolidated  in  Items  1  and  2.4 of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of   Lithuania"  of  28  November  1997  that  the  Vilnius  City
Municipality  becomes  the  founder  of  the  House of Artists of
Lithuania,  preconditions  were created for establishing that the
Vilnius  City  Municipality  must  take  over  from  the House of
Artists  of  Lithuania  the  house  located  at  Didžioji St. 31,
Vilnius,  in  which the seat of the House of Artists of Lithuania
is  placed,  for possession and use as state-owned property under
the  right  of  trust. The provision with this particular content
is consolidated in Item 2.3 of this Government resolution.
     It  was  held in this Constitutional Court ruling that Items
1  and  2.4  of  Government  Resolution No. 1320 "On the House of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania"  of  28  November  1997 are in
conflict  with  Item  2 of Article 94 of the Constitution and the
constitutional principle of a state under the rule of law.
     Having  held  this,  one  should  also hold that Item 2.3 of
Government  Resolution  No.  1320 "On the House of Signatories to
the  Act  of  Independence  of Lithuania and the House of Artists
of  Lithuania"  of 28 November 1997 is in conflict with Item 2 of
Article  94  of the Constitution and the constitutional principle
of a state under the rule of law as well.
     12.  Having  held  that  Items  1, 2.3 and 2.4 of Government
Resolution  No.  1320  "On the House of Signatories to the Act of
Independence   of   Lithuania   and   the  House  of  Artists  of
Lithuania"  of  28  November  1997 are in conflict with Item 2 of
Article  94  of the Constitution and the constitutional principle
of  a  state under the rule of law, the Constitutional Court will
not  investigate  in  this case as to whether these items are not
in   conflict   with   Paragraph   2   of   Article  120  of  the
Constitution,  Paragraph  1  of  Article 3, Paragraphs 2 and 5 of
Article  4,  and Paragraph 1 of Article 6 of the European Charter
of  Local  Self-Government,  as  well as Item 4 of Paragraph 1 of
Article  4  and  Item  13  of  Paragraph  1  of  Article 6 of the
Republic of Lithuania Law on Local Self-Government.

                               VI                                
     1.  After  coming  into  effect of Government Resolution No.
1320  "On  the House of Signatories to the Act of Independence of
Lithuania  and  the House of Artists of Lithuania" of 28 November
1997,   the  legal  regulation  of  relations  of  possession  of
property  owned  by  the  state  and  municipalities, its use and
disposal,   which   was   established   by  laws  and  Government
resolutions, was changed.
     During   this   period   various   state   institutions  and
institutions  of  the Vilnius City Municipality (their officials)
performed  actions  and adopted decisions related to the House of
Artists  of  Lithuania  and  the  building  at  Didžioji  St. 31,
Vilnius,  in  which the seat of the House of Artists of Lithuania
is located.
     2.  It  is  clear  from  the material of the case that inter
alia:
     -  the  building  at Didžioji St. 31, Vilnius was registered
as  the  one,  which  belongs under the right of ownership to the
Vilnius  City  Municipality.  Later the Vilnius City Municipality
founded  a  budgetary  establishment,  the Vilnius City Hall, and
on  18  December  1998  by  its  Decision  No.  301  approved the
Regulations   of  the  Vilnius  City  Hall.  After  that,  on  13
December  1999,  the  Council  of  the  Vilnius City Municipality
adopted  Decision  No.  439  "On Transfer and Use of the Building
at  Didžioji  St.  31  to  the  Vilnius  City Hall", by Item 1 of
which  one  transferred  to  the budgetary establishment "Vilnius
City  Hall"  the  building  at  Didžioji  St.  31, Vilnius, to be
possessed  and  used  under the right of trust, and by Item 3 the
possessor  of  this  budgetary establishment was commissioned "to
allocate  premises  under  the principle of use for the permanent
activity  of  the  House  of  Artists  of Lithuania". However, at
present  the  Vilnius  City  Hall,  which  possesses and uses the
aforementioned  building,  is  no  longer  a  municipal budgetary
establishment, but a public establishment:
     -  on  28  November  2001,  the  Council of the Vilnius City
Municipality  adopted  Decision  No.  444  "On Liquidation of the
Budgetary  Establishment  'The  House  of Artists of Lithuania'",
by  Item  1  of  which  one  decided  to  liquidate the budgetary
establishment  "The  House  of Artists of Lithuania", and by Item
2  of  which  the  Vilnius  City Board was authorised "to perform
all  the  actions related to the liquidation of the establishment
and  its  exclusion  from the registry". It is to be held that at
present  the  House of Artists of Lithuania is basically inactive
as an establishment.
     3.  It  was  mentioned  in  this Constitutional Court ruling
that   the   Constitution   does  not  tolerate  such  change  of
subordination   of   a   state   institution   (establishment  or
enterprise),  inter  alia  an  institution  contributing  to  the
development  of  culture, when its possession is transferred from
the  system  of  state  administration to self-government, if the
transfer  of  this  institution  is only a cover for transferring
the   state-owned   property,   related   to  the  aforementioned
institution  and/or  possessed by inter alia the said institution
or    its   founder-a   state   institution   (establishment   or
enterprise)-to be possessed by the municipality.
     It  was  mentioned  that  the  building  at Didžioji St. 31,
Vilnius  is  the  historical  Vilnius  City  Hall,  a monument of
culture.  It  is  obvious from the material of the case that this
building  belonged  under the right of ownership to the state not
only  at  the  time  when  Government Resolution No. 1320 "On the
House  of  Signatories  to  the  Act of Independence of Lithuania
and  the  House  of Artists of Lithuania" of 28 November 1997 was
adopted  and  became  effective,  but  even some time afterwards,
and  on  29  December  1997  it  was  registered as the one which
belongs  to  the  Vilnius  City  Municipality  under the right of
ownership.
     It  is  to be stressed that the building at Didžioji St. 31,
Vilnius,   could   become   ownership   of   the   Vilnius   City
Municipality only on the basis of the law.
     The   Constitution   does  not  tolerate  any  decisions  or
actions,  by  which  such  an object of culture like the building
of  the  Vilnius  City  Hall  (which  inter alia is of historical
architectural  value)  could  be transferred from state ownership
to municipal ownership on the basis other than the law.
     The  Constitution  does  not  tolerate also any decisions or
actions,  by  which  preconditions  are created for such cultural
object  as  the  building  of  the  Vilnius  City  Hall to become
eventually  ownership  of  other  persons instead of the state or
municipality.
  
     Conforming  to  Articles  102 and 105 of the Constitution of
the  Republic  of Lithuania and Articles 1, 53, 54, 55, and 56 of
the   Law   on  the  Constitutional  Court  of  the  Republic  of
Lithuania,   the   Constitutional   Court   of  the  Republic  of
Lithuania has passed the following
  
                             ruling:                             

     1.  To  recognise that the Republic of Lithuania Law "On the
Procedure  of  Reorganisation  and  Liquidation of Establishments
of  Culture"  (wording  of 13 June 1995) was not in conflict with
the Constitution of the Republic of Lithuania.
     2.  To  recognise that Items 1, 2.3 and 2.4 of Government of
the  Republic  of  Lithuania Resolution No. 1320 "On the House of
Signatories  to  the  Act  of  Independence  of Lithuania and the
House  of  Artists  of  Lithuania"  of  28  November  1997 are in
conflict  with  Item  2  of Article 94 of the Constitution of the
Republic  of  Lithuania  and  the  constitutional  principle of a
state under the rule of law
  
     This  ruling  of the Constitutional Court of the Republic of
Lithuania is final and not subject to appeal.
     The  ruling  is  promulgated  in the name of the Republic of
Lithuania.
  
Justices of the Constitutional Court:	Armanas Abramavičius
					Toma Birmontienė
					Egidijus Kūris
					Zenonas Namavičius
					Ramutė Ruškytė
					Vytautas Sinkevičius
					Stasys Stačiokas
					Romualdas Kęstutis Urbaitis