Parliament is responsible for establishing the national legal framework on local government. The key piece of legislation that regulates local government is the Law on the Composition, Organization, and Function of Territorial Decentralized Entities and their Relationship with the State and the Provinces of 2008. According to Articles 4 and 5 of the Law on the Composition, Organization, and Function of Territorial Decentralized Entities and their Relationship with the State and the Provinces of 2008, “the province is subdivided into cities and territories. [The following] are subdivided, within the province: the city into municipalities, the municipality into districts and/or incorporated groups, the territory into communes, sectors, and/or chiefdoms, the sector or chiefdom into groups, and the grouping into villages. The territory, the district, the grouping, and the village are deconcentrated territorial entities without legal personality. The city, the municipality, the sector, and the chiefdom are decentralized territorial entities endowed with legal personality. They enjoy free administration and autonomy in the management of their human, economic, financial, and technical resources.”
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