FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
S.B. No. 
SENY82 
4 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
At present, cities to be classified under the highly urbanized category must 
have an annual income of at least Fifty Million pesos based on 1991 constant 
prices, among other things. Also, a province must have an average annual 
income of not less than Twenty Million pesos based on 1991 constant prices. 
This proposed measure amends these requirements by providing for an 
increase in the income requirement and updating the constant price base from 
1991 to 2000 rate. 
The intention of these amendments is to institute stricter measures in the 
conversion, andlor creation of local government units. Essentially, more stringent 
measures are needed to be established so that benefits from the conversion, 
andlor creation of local government units may not be easily abused. 
For the said purpose, approval of this bill is earnestly requested. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
1 
8 .JuI. -2 !I!$ :I 3 
) 
Second Regular Session 
1 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
RATIONALIZING THE INCOME REQUIREMENTS FOR THE DECLARATION 
OF HIGHLY URBANIZED STATUS IN THE CASE OF COMPONENT CITIES 
AND FOR THE CREATION OF A PROVINCE, AMENDING FOR THE 
PURPOSE SECTIONS 452 AND 461 OF REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be if enacted by the Senate and House of Representatives of the 
Philippines in Congress, assembled: 
Section 1. Section 452, paragraph (a) of Republic Act 7160, otherwise 
known as the Local Government Code of 1991, is hereby amended to read as 
follows: 
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 with [the latest annual income of at least Fifty Million 
Pesos (P50,000,000.00) based on 1991 constant prices] 
AN 
AVERAGE 
LOCALLY-GENERATED ANNUAL 
INCOME FOR THE LAST TWO (2) CONSECUTIVE 
YEARS, AS CERTIFIED 
BY THE DEPARTMENT OF 
FINANCE, OF AT LEAST TWO HUNDRED FIFTY 
MILLION 
(P250,000,000.00) 
BASED 
ON 
2000 
CONSTANT PRICES, as certified by the city treasurer, 
shall be classified as highly urbanized cities. 
THE AVERAGE ANNUAL INCOME SHALL INCLUDE 
THE INCOME ACCRUING TO THE GENERAL FUND, 
EXCLUSIVE 
OF 
THE 
INTERNAL 
REVENUE 
ALLOTMENT 
(IRA) 
SHARES, 
SPECIAL 
FUNDS, 
TRUST FUNDS, TRANSFERS, AND NON-RECURRING 
INCOME. 
1 


(b) x x x  
(c) x x x  
Sec. 2. Section 461 of the same Act is hereby amended to read as 
follows: 
Sec. 461. Requisifes for Creation. - (a) A province 
may be created if it has an average LOCALLY- 
GENERATED annual income FOR THE LAST TWO (2) 
CONSECUTIVE YEARS, as certified by the Department 
of Finance, of not less than [twenty million pesos 
(P20,000,000.00)] TWO HUNDRED (P200,000,000.00) 
MILLION PESOS based on [I9911 2000 constant prices 
and either of the following requisites: 
(i) A contiguous territory of at least two thousand 
(2,000) square kilometres, 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 fund, exclusive of special 
funds, THE INTERNAL REVENUE ALLOTMENT (IRA) 
SHARES, trust funds, transfers, and non-recurring 
income. 
2 


Sec. 3. Separability Clause. - If any part, section, or provision of this Act 
shall be held invalid or unconstitutional, the other provisions shall not be affected 
thereby. 
Sec. 4. Repealing Clause. - All laws, decrees, orders, issuances, rules 
and regulations or parts thereof inconsistent with the provisions of this Act are 
hereby repealed, amended, or modified accordingly. 
Sec. 5. Effectivity. - This Act shall take effect (15) days after its complete 
publication in at least two (2) newspapers of national circulation. 
Approved, 
3