Abstract: Facing the modernization of governance, local legislation creates new types of administrative penalties to improve governance efficiency, but such creations have also been questioned in their legitimacy. The core of governance modernization is the rule of law, and local governance modernization is the key component and fundamental thrust of governance modernization. The modern concept of rule of law requires that the construction of local legal system under the national rule of law be led by local legislation, and rules construction and innovation follow the fundamental spirit and principles of rule of law. The reality of creating types of administrative penalties by local legislation requires requirements for the downward grant of creation power, and the Administrative Penalty Law should respond positively to this. Under the current legal order, the creation of the types of penalties granted to local legislation should follow the path of the rule of law and the principles of rule of law, so that it will be subject to the necessary restrictions on the types of creation, the subject of creation, and the procedures of creation.