Districts of special municipalities that have been converted from mountain indigenous townships shall be referred to as mountain indigenous districts of special municipalities (hereafter referred to as mountain indigenous districts). Mountain indigenous districts shall be local self-governing bodies and shall have a district council and a district office, which are the legislative and administrative bodies, respectively, of the mountain indigenous districts. The district councils and district offices shall carry out self-government matters in accordance with this Act as well as commissioned matters from higher levels of government.
Unless otherwise provided for by law, provisions of this Act relevant to townships/cities shall apply mutatis mutandis to self-government matters and matters commissioned by higher levels of government. Provisions of this Act governing the relationship between counties and townships/cities shall apply mutatis mutandis to the relationship between special municipalities and mountain indigenous districts.

The self-government matters of mountain indigenous districts are as follows:
1. Matters related to organization and administration:
(1) Election and recall of public officials in the mountain indigenous district.
(2) Establishment and management of mountain indigenous district organizations.
(3) Press administration in the mountain indigenous district.
2. Financial matters:
(1) Management of income, expenditures, and finances in the mountain indigenous district.
(2) Management and disposition of properties in the mountain indigenous district.
3. Matters related to social services:
(1) Social welfare in the mountain indigenous district.
(2) Charity businesses and social assistance in the mountain indigenous district.
(3) Establishment and management of cemeteries and burial facilities in the mountain indigenous district.
(4) Arbitration in the mountain indigenous district.
4. Matters related to education, culture, and sports:
(1) Provision and management of social education in the mountain indigenous district.
(2) Cultural activities in the mountain indigenous district.
(3) Sports activities in the mountain indigenous district.
(4) Rites, traditions, and literature in the mountain indigenous district.
(5) Establishment, operations, and management of social education, physical education, and cultural institutions in the mountain indigenous district.
5. Matters related to environmental sanitation:
Waste handling and disposal in the mountain indigenous district.
6. Matters related to construction, transportation, and tourism:
(1) Construction and management of roads in the mountain indigenous district.
(2) Construction and administration of parks and green spaces in the mountain indigenous district.
(3) Traffic planning, operations, and management in the mountain indigenous district.
(4) Tourism in the mountain indigenous district.
7. Matters related to public safety:
(1) Planning and implementation of disaster prevention and disaster rescue operations in the mountain indigenous district.
(2) Civil defense in the mountain indigenous district.
8. Matters related to operations and management of businesses:
(1) Public utilities and publicly-owned enterprises in the mountain indigenous district.
(2) Public productive enterprises in the mountain indigenous district.
(3) Enterprises jointly operated with other local self-governing bodies.
9. Other matters as required by law.

When a mountain indigenous township is to be converted into a mountain indigenous district, such changes in status shall take effect on the day the term of the current mayor of the special municipality expires, and the districts and townships of the mountain indigenous township that exist prior to the change in status shall become the administrative districts of the resulting mountain indigenous district. The electoral districts for the election of the first session of councilors and chief administrator shall be the administrative districts in the districts and townships that existed prior to the change in status. The election shall be completed ten (10) days before the change in status, and the stipulation of Article 87-1, Paragraph 3 regarding the announcement of electoral districts and the stipulation of Article 87-1, Paragraph 4 regarding taking office on the day the change in status become effective shall apply mutatis mutandis.

Prior to the formulation (promulgation) of self-government laws and regulations for mountain indigenous districts, the self-government laws and regulations relevant to existing special municipalities shall apply.
If a mountain indigenous township is directly converted into a mountain indigenous district and it is necessary to continue to apply the previous self-government laws and regulations, such self-government laws and regulations may continue to be applied for two (2) years after an announcement by the mountain indigenous district office.

The special municipality shall formulate (promulgate) self-government laws and regulations for the allocation, transfer and adjustment of the mountain indigenous district agency (institution) personnel, assets and other rights and obligations. However, when a mountain indigenous district is converted from a mountain indigenous township, the personnel, assets, and other rights and obligations of the former mountain indigenous township shall be maintained.
The date for adjusting the allocation of government revenues and expenditures for the mountain indigenous district shall be determined by the Executive Yuan in consultation with the special municipality government. Prior to the adjustment, budget implementation of the relevant agencies (institutions) shall continue to be based on the budget previously formulated by the special municipality.
The general budget for a mountain indigenous district during the first year after its change in status shall be submitted by the district office to the district council before January 31 of that year. The district council shall complete the budget review within one (1) month of receipt of the general budget proposal. The district office shall announce the general budget within fifteen (15) days of the completion of the budget review. If the district office fails to submit the general budget proposal at the beginning of the fiscal year or if the general budget is not approved, Paragraph 2 of Article 40-1 shall apply mutatis mutandis to budget implementation.
If personnel transferred in accordance with Paragraph 1 are current civil servants who have either passed a civil service examination or are transferred in accordance with the Placement of Professionals and Technologists as Civil Servants Act, Paragraphs 6 to 9 of Article 87-3 shall apply mutatis mutandis to the transfer.
If personnel transferred in accordance with Paragraph 1 have passed the civil servant examinations and are still undergoing practical training, such transfer shall be construed as a transfer to other agencies for a continuation of their practical training. The restrictions that apply to such transfers shall be loosened in a manner similar to the transfers indicated in the preceding paragraph.

The budget for the necessary financial resources for local self-government in mountain indigenous districts shall be formulated by the special municipality while taking into account the following factors:
1. Self-government matters in mountain indigenous districts as stipulated in Article 83-3.
2. Average tax income in each of the mountain indigenous townships over the last three (3) years prior to the change in status.
3. Other relevant factors.
The subsidy items, procedures for subsidy, methods of subsidy, and other relevant matters shall be determined by the special municipality in consultation with the mountain indigenous districts.

The provisions of Article 58 and Article 58-1 shall not apply to mountain indigenous districts.