Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

First Regular Session

House Bill No__ 2002

Introduced by Hon. PABLO JOHN F. GARCIA

“AN ACT RATIONALIZING THE “OME REQUIREMENT FOR THE
CREATION OF A PROVINCE AND THE DECLARATION OF HIGHLY-
URBANIZED STATUS IN THE CASE OF COMPONENT CITIES, AMENDING
FOR THAT PURPOSE REPUBLIC ACT NUMBERED 7160, OTHERWI

KNOWN AS THE “LOCAL GOVERNMENT CODE OF 1991”

EXPLANATORY NOTE

While Republic Act No. 9009 has made more stringent the income requirement
for the conversion of a municipality or cluster of barangays into a component city, the
income requirements for the creation of a province and the declaration of highly
urbanized status in the case of component cities, have remained the same.

We therefore have a situation where a city may not be created if the income of a
municipality or a cluster of barangays falls below P100 million, while for a mere P20
miillion, a new province may be ci ise, we have a situation where, despite the
P100 million threshold in the ere a highly urbanized city may be declared
on the basis of a PSO million incon

‘There is therefore a need to further amend Republic Act No. 7160, otherwise
known as the Local Government Code of 1991, in order to rationalize the income
requirements for the conversion or declaration of the different species of local
government units.

The early passage of this bill, therefore, is urgenglf’ sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

First Regular Session

2002

House Bill No

Introduced by Hon. PABLO JOHN F, GARCIA.

‘T RATIONALIZING INCOME REQUIREMENT FOR THE
JON OF A PROVINCE AND THE DECLARATION OF HIGHLY-
URBANL STATUS 1E CASE OF COMPONENT CITIES, AMENDING
FOR THAT PURPOSE REPUBLIC ACT NUMBERED 7160, OTHERWISE
KNOWN AS THE “LOCAL GOVERNMENT CODE OF 1991”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled.

SECTION 1. Section 461 of Republic Act No. 7160 is hereby amended to read as
follows:

“SEC. 461. Requisites for Creation. — (a) A province may be created if it has an average
LOCALLY-GENERATED annual income for the last two consecutive years, as certified
by the Department of Finance, of not less than TWO HUNDRED MILLION PESOS
(P200,000,000.00) based on 2000 constant prices and either of the following requisites:

(3) a contiguous territory of at least two thousand (2,000) square kilometers, as
certified by the Lands Management Bureau; or

(ii) a population of not less than two hundred fifty thousand (250,000) inhabitants as
certified by the National Statistics Office:

Provided that, the creation thereof shall not reduce the land area, population, and
income of the original unit or units at the time of said creation to less than the minimum,
requirements prescribed herein,

(b) The territory need not be contiguous if it comprises two (2) or more islands or
is separated by a chartered city or cities, which do not contribute to the income of the
province,

(c) The average annual income shall include the income accruing to the general
clusive of the internal Fevenue allotment (IRA), special funds, trust funds,

SEC. 452. Highly Urbanized Cities. — (a) Cities with a minimum population of two
hundred thousand (200,000) inhabitants, as certified by the National Statistics office, and
an_average_locally-generated_annual_income for the last two consecutive years. as
certified by the Department of Finance, of not Jess than TWO HUNDRED FIFTY
MILLION PESOS (2250.00.00). based on 2000 constant prices, shall be classified as
highly urbanized cities.



(b) Cities that do not meet the above requirements shall be considered component
cities of the province in which they are geographically located. If a component city is
located within the boundaries of two (2) or more provinces, such city shall be considered
component of the province of which it used to be municipality. .

(c) Qualified voters of highly urbanized cities shall remain excluded from voting
for elective provincial officials. Unless otherwise provided in the Constitution or this,
Code, qualified voters of independent component cities shall be governed by their
respective charters, as amended, on the participation of voters in provincial elections.
Qualified voters of cities who acquired the right to vote for elective provincial officials
prior to the classification of said cities as highly-urbanized after the ratification of the
Constitution and before the effectivity of this Code, shall continue to exercise such right.

(d) The average annual income shall include the income accruing to the general
exclusive of the internal revenue allotment (IRA). special funds, trust_funds.

transfers, and non-recurring income.

fund,

SECTION 3. Any law, executive order, rule or regulation inconsistent herewith
are hereby repealed or modified accordingly.

SECTION 4. If any portion of this Act is declared invalid or unconstitutional,
such invalidity or unconstitutionality shall not affect the other provisions, which shall
remain in full force and effect.

SECTION 5. This Act shall take effect fifteen (15) days after the completion of its
publication in at least two (2) newspapers of general circulation.

Approved,

~
"ABL} F. GARCIA