(Purpose) Article 1. The purpose of this Law is to define clearly the scope of responsibilities and the powers of the Local Autonomy Agency and to provide an organization fit for the efficient conduct of the administrative affairs under the jurisdiction of the Agency.

(Establishment) Article 2. The Local Autonomy Agency is hereby established as an external organ of the Prime Minister's Office under the provisions of Article 3 paragraph 2 of the National Government Organization Law (Law No.120 of 1948). 2 The Local Autonomy Agency shall be headed by the Director of the Local Autonomy Agency whose post shall be assumed by the Minister of State.

(Mission) Article 3. The Local Autonomy Agency shall be the Government organ responsible for the contribution to the realization of the principle of local autonomy by means of facilitating the liaison between the State and local public bodies and the liaison and cooperation among local public bodies themselves and by supporting the right of local autonomy of local public bodies with a view to harmonizing the public interest of the State with the autonomy of local public bodies.

(The Local Autonomy Committee) Article 4. There shall be set up a Local Autonomy Committee in the Local Autonomy Agency. 2 The Local Autonomy Committee shall be composed of the Director and twelve members of the Local Autonomy Committee mentioned in the following items who are appointed by the Prime Minister: (1) nominated by the House of Representatives from among the members of the House of Representatives; One person, (2) nominated by the House of Councillors from among the members of the house of Councillors; One person, (3) recommended by national association of the governors of To, Do, Fu and prefectures as a representative thereof; One person, (4) recommended by national association of the mayors of cities as a representative thereof; One person, (5) recommended by national association of mayors of towns and villages as a representative thereof; One person, (6) recommended by national association of the chairman of the assemblies of To, Do, Fu and prefectures as a representative thereof; One person, (7) recommended by national association of the chairmen of the assemblies of the cities as a representative thereof; One person, (8) recommended by national association of the chairmen of the assemblies of the towns and villages as a representative thereof; One person, (9) Four persons of learning and experience. 3 In the case of the appointment of the persons mentioned in the preceding paragraph items (3) to (9) inclusive, the consent of both Houses shall be required.

(Powers of the Local Autonomy Agency) Article 5. For the purpose of carrying out the responsibilities provided for in this Law, the Local Autonomy Agency shall have the powers as listed below. Such powers shall, however, be exercised in accordance with laws (including orders issued thereunder): (1) To make within the limits of budgetary appropriations contracts necessary for carrying out its responsibilities; (2) To collect revenues and make payments necessary for carrying out its responsibilities; (3) To establish and maintain offices and other facilities directly required for carrying out its responsibilities; (4) To procure materials for use in business, office supplies, research materials, etc., which are directly required for the carrying out of its responsibilities; (5) To dispose of unnecessary properties; (6) To administer personnel affairs, including appointment, dismissal, awards and discipline; (7) To establish and maintain facilities required for the welfare and health of personnel; (8) To establish and maintain housing to be rented to personnel; (9) To collect, distribute or publish statistics and research data concerning the affairs under its jurisdiction; (10) To disseminate information to the public concerning the affairs under its jurisdiction; (11) To adopt the official seals of they Local Autonomy Agency; (12) To assist in the exercise of the powers of the Prime Minister concerning the following affairs; 1) To accept the request filed by the chief of a local public body in accordance with the provisions of Article 16 paragraph 1 of the National Government Organization Law, make investigations thereon, make recommendations to the Ministers concerned and take other appropriate measures; 2) To effect the disposition relating to the alterations of the areas of local public bodies or accept the reports of disposition from the governor of To, Do, Fu or prefecture relating thereto; 3) To accept the reports on the direct demands concerning To, Do, Fu or perfecture, the result of the meeting of assemblies of To, Do, Fu or prefecture and the enactment, amendment or abolition of bylaws of To, Do, Fu or prefecture; 4) To take the procedure in accordance with the provisions of Article 146 of the Local Autonomy Law (Law No.67 of 1947); 5) To take the procedure in accordance with the provisions of Article 247 of the Local Autonomy Law; 6) To take the procedures for a general vote concerning a special law which is applicable only to one local public body and to take procedures for the promulgation of the said law; 7) To approve the establishment of association of local public bodies which is composed of To, Do, Fu, prefectures and special cities, the increase or reduction of its members, the alteration of the affairs managed jointly or the amendment of the articles of the association and to accept the report on the dissolution of the same; 8) To grant the establishment of a juridical person in accordance with the Provisions of Article 34 of the Civil Code (Law No.89 of 1896); 9) To make a ruling on protest concerning the amount of income to be the imposition base of the enterprise tax in accordance with the provisions of Article 7 of the Local Tax Law (Law No.110 of 1946); 10) To make a ruling on protest concerning the amount of basic tax which shall be the standard of imposition of surtax on enterprise tax in accordance with the provisions of Article 8 of the Local Tax Law; 11) To designate the local tax items which may be collected by person obliged to collect special taxes in accordance with the provisions of Article 36 of the Local Tax Law; 12) To designate the local tax items which may be collected by means of collection by certificate stamps in accordance with the provisions of Article 44 of the Local Tax Law; 13) To determine the jurisdiction of tax imposition and others of Do, Fu or prefecture in accordance with the provisions of Article 98 of the Local Tax Law; 14) To accept the reports in accordance with the provisions of Article 122 of the Local Tax Law; 15) To request the deliberation concerning the by-law of a local public body and annual or amend such by-law on the basis of the provisions of Article 123 of the Local Tax Law; 16) To distribute the local distribution tax; 17) To give approval concerning the issue of local bonds; 19) To determine, for each local public body, the fixed number of local employees, whose expenses are borne by the national government; 19) To permit the issue of certificates with prizes by local public bodies; 20) To designate the cities which may hold horseraces; 21) To designate the cities, towns and villages which may hold bicycle races in accordance with the Bicycle Race Law (Law No.209 of 1948); (13) In addition to those listed in the preceding items, such powers as are placed under the Local Autonomy Agency by-laws (including orders issued thereunder).

(Internal Subdivisions) Article 6. The Local Autonomy Agency shall have the Director's Secretariat and the following two divisions: Liaison and Administration Division Finance Division

(Special Position) Article 7. The Local Autonomy Agency shall have a Deputy Director. 2 The Deputy Director shall assist the Director of the Local Autonomy Agency, regulate the affairs of the Agency and shall supervise the affairs of each subdivision.

(Functions of Director's Secretariat) Article 8. The Director's Secretariat shall take charge of the following affairs: (1) Confidential matters; (2) Classification, appointment and dismissal of personnel, their status, disciplinary punishment, performance of duty and other personnel affairs;also, their refinement and training; (3) Custody of the Director's and the Agency's official seals; (4) Receipt, dispatch, compilation and custody of official documents; (5) Budget estimates for expenditures and revenues, settlement of accounts, accounts and account audit; (6) Control over state properties and articles; (7) Health, medical treatment and other welfare measures for personnel; (8) Surveys and statistics; (9) Administrative inspections; (10) Public information of the affairs under its jurisdiction; (11) Coordination and adjustment, such as examination of draft bills and orders; (12) In addition to the affairs listed in each of the preceding items, such responsibilities of the Local Autonomy Agency as are not under charge of other Divisions.

(Functions of the Liaison and Administration Division) Article 9. The Liaison and Administration Division shall take charge of the following affairs: (1) To offer opinions to the Cabinet and other administrative organs concerned from the standpoint of sustaining and supporting the right of local autonomy in connection with the planning, drafting and operation of administrative measures of the State which have effect on local autonomy; (2) To assist in the exercise of the Prime Minister's powers based on the provisions of Article 16 paragraph 1 of the National Government Organization Law; (3) To facilitate the liaison between the State and local public bodies and the liaison and cooperation among local public bodies; (4) To assist in the exercise of the Prime Minister's powers based on the Local Autonomy Law; (5) To make plans for systems relating to the administration and personnel of local public bodies and to draw up drafts of laws, Cabinet Orders or Ordinances relating thereto; (6) To make researches into the administration of local public bodies and their personnel and to compile and distribute statistics thereof and other data relating thereto; (7) To conduct publicity and dissemination regarding the local autonomy by such measures as publication of magazines and books on local autonomy and holding lectures thereon.

(Function of the Finance Division) Article 10. The Finance Division shall take charge of the following affairs: (1) To assist in the exercise of the Prime Minister's powers relating to local finance on the basis of the Local Autonomy Law, the Local Finance Law (Law No.109 of 1948), the Local Tax Law, the Local Distribution Tax Law (Law No.111. of 1948) and other Laws; (2) To exercise the powers which fall under the jurisdiction of the Director of the Local Autonomy Agency on the basis of the Local Finance Law; (3) To plan the system concerning the finance of local public bodies and to draw up drafts of Laws, Cabinet Orders or Ordinances relating thereto; (4) To make researches into the actual conditions of the financial working of the local public bodies and make statistics and to compile and distribute other data relating thereto.

(Matters to be Resolved by the Local Autonomy Committee) Article 11. Matters listed in the following items among the responsibilities of the Local Autonomy Agency shall be resolved by the Local Autonomy Committee: (1) Draft of Laws, Cabinet Orders or Ordinances concerning the administration and the finance of local public bodies and concerning the system relating to the personnel of local public bodies; (2) Directions to the Ministers concerned and other appropriate measures in accordance with the provisions of Article 16 paragraph 1 of the National Government Organization Law; (3) Procedures in accordance with the provisions of Article 146 of the Local Autonomy Law; (4) Procedures in accordance with the provisions of Article 247 of the Local Autonomy Law; (5) Procedures of a general vote concerning a special law which is applicable only to one local public body and procedures for the promulgation of the said law; (6) Technical advice concerning the allowances of the personnel of local public bodies; (7) Distribution of the Fifth Category Distribution Amount and the Special Distribution Tax of the local distribution taxes; (8) Standard policies of approval concerning the issue of local bonds; (9) Other matters which are determined by the Local Autonomy Committee to be resolved thereby. 2 The Local Autonomy Committee shall present its opinions concerning the matters listed in the preceding paragraph to the organs concerned.

(Proceedings of the Local Autonomy Committee) Article 12. The chairmanship of the Local Autonomy Committee shall be assumed by the Director of the Local Autonomy Agency. 2 No proceedings shall be transacted at a meeting of the Local Autonomy Committee, unless six or more members of the Committee are present thereat. All proceedings shall be decided upon the consent of a majority of the members of the Committee present. In case of a tie, the chairman shall have the casting vote. 3 In addition to the matters listed in the preceding two paragraphs, necessary matters concerning the proceedings of the Local Autonomy Committee shall be determined by the Local Autonomy Committee.

(Allowances of the Members of the Local Autonomy Committee) Article 13. The members of the Local Autonomy Committee shall receive allowances as are determined by the Prime Minister on the mutual agreement with the Minister of Finance.

(Appearance of Witnesses and Others) Article 14. The Local Autonomy Agency may, whenever necessary for planning and drawing up in accordance with the provisions of Article 9 item (5) or Article 10 item (3), demand the appearance and opinion of witnesses.

(Personnel) Article 15. With respect to appointment, dismissal, promotion and disciplinary punishment and other matters concerning personnel administration of the Local Autonomy Agency, the provisions of the National Public Service Law (Law No.120 of 1947) shall apply.

(The Fixed Number of Personnel) Article 16. The fixed number of personnel for the Local Autonomy Agency shall be provided for by-law separately.