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

NINETEENTH CONGRESS
1” Regular Session

3396

House Bill No.

Introduced by Hon. WILTER YAP PALMA

EXPLANATORY NOTE

This bill seeks to fairly distribute public resources and provide opportunity
to local government units (LGUs) which are struggling to cope with the pace of
their urbanized counterparts.

It is a fact that living in a city or near it has its corresponding economic
advantage. The primary reason for converting a municipality into a city is the
assurance of economic viability (Latasa v. Commission on Elections, G.R. No.
154829, December 10, 2003)

According to present laws, conversion of LGU from one level to another
should be based on verifiable indicators or viability and projected capacity to
provide services, specifically income, population and land area (Section 7. R.A.
No. 7160, Local Government Code of 1991). However, stern adherence to these
indicators forecloses any chance of would-be-cities for urbanization given the
stringent requirements and the continuous leverage enjoyed by existing cities
which have already mustered the requirements.

At present, there are twenty-eight (28) provinces without any component
cities, independent component cities or highly urbanized cities within its
territorial jurisdiction, and their capitals remain to be mere towns or
municipalities.


PROVINCES without any CC, ICC or HUC
REGION _ PROVINCE CAPITAL
‘Abra _. [Bangued
(CORDILLERA ADMINISTRATIVE |Apayao ~_[Kabugao
‘REGION ifugao lLagawe _
_[Mountain Province [Bontoc _|
iBatanes ~___ [Basco
REGION I [Nueva Vizcaya |Bayombong.
- lauirino Icabarroguis
REGION Ilt ‘Aurora ______[Baler
[Marinduque Boac _—
REGION IV-B \Occidental IMamburao
IRomblon lRomblon
REGION V (Camarines Norte. Poet:
Catanduanes Ivirac
lAklan Ikalibo
REGION VI lantique San Jose
lGuimaras_———_—_—dordan
REGION Vii Siquijor Siquijor
Biliran [Naval
REGION vill (Northen Samar \Catarman.
REGION IX Zamboanga Sibugay [Ip
REGION X [Camiguin \Mambajao
[compostela Valley INabunturan
REGION! [Davao Occidental Malta
REGIONXH ISarangani _____|Alabel _
REGION Xill (CARAGA) \Dinagat Islands [San Jose
|aaNGsAMORO AUTONOMOUS pésauindanae puvan
|REGION IN MUSLIM MINDANAO
[TawicTawi ‘Bongao

Noteworthy is the 2018 report of the Philippines Statistics Authority
which shows that most of these 26 provinces belong to regions with
considerably high poverty incidence, such as ARMM, Bicol Region, Eastern and
Western Visayan, Zamboanga Peninsula and CARAGA region.

These capital towns that have not yet reached cityhood have relied on its
meager share in the Internal Revenue Allotment (IRA), which is insufficient to
sustain the growing needs for urbanization. Converting and upgrading these
capital towns to “city status” is crucial in stimulating economic growth and


development. Accordingly, making the conversion “automatic” will empower
the locality by providing them with opportunities and equal playing field to
compete. Also, it will provide fast and immediate access to greater resources
that would optimize its growth and development including access to latest
trends and information, and as well as access to other incentives that only those
with “city status” could enjoy.

In addition, capital towns are generally designated and perceived to be
the seat of government and at the same time the center of local trade or
business of a province where usual day-to-day commercial and state
transactions occur. Automatically granting city status to these symbolic
representations, such as the capital, advances the LGU’s stature in a nationwide
scale.

Finally, this measure was originally filed in the 18 Congress as House Bill
No. 3021, authored by Representative Wilter “Sharky” Wee Palma Il.

In view thereof, support and approval of this measure is earnestly sought.



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

NINETEENTH CONGRESS
4 Regular Session

3398

House Bill No.

Introduced by Hon. WILTER YAP PALMA

AN ACT AUTOMATICALLY CONVERTING THE CAPITAL TOWN

OF PROVINCES WITH NO COMPONENT CITIES, INDEPENDENT COMPONENT
CITIES OR HIGHLY URBANIZED CITIES WITHIN ITS TERRITORIAL JURISDICTION,
INTO A COMPONENT CITY

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

SECTION 1. Section 450 of Republic Act No. 7160 as amended, otherwise
known as the “Local Government Code of 1991”, as amended by Republic Act
9009 is hereby further amended to read as follows:

“Sec 450. Requisites for Creation — (a) A municipality or a cluster of
barangays may be converted into a component city if it has a locally
generated average annual income, as certified by the Department of
Finance, of at least One hundred million pesos (P100,000,000.00) for the
last two (2) consecutive years based on the 2012 constant prices,
provided, that:

(i) a contiguous territory of at least one hundred (100) square
kilometers, as certified by the Lands Management Bureau; or

(ii) a population of not less than one hundred fifty thousand
(150,000) 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 therein.

“PROVIDED, FURTHER, THAT THE REQUIREMENT ON INCOME,
POPULATION AND LAND AREA PRESCRIBED HEREIN SHALL NOT APPLY IF
A MUNICIPALITY TO BE CONVERTED INTO CITY IS THE CAPITAL TOWN OF
ANY PROVINCE HAVING NO COMPONENT CITY, INDEPENDENT
COMPONENT CITY OR HIGHLY URBANIZED CITY WITHIN ITS
TERRITORIAL JURISDICTION.”

(b) The territorial jurisdiction of the newly-created city shall be
properly identified by metes and bounds. The requirement on the land
area shall not apply where the city proposed to be created is composed
of one (1) or more islands. The territory need not be contiguous if it
comprises two (2) or more islands.

(c) The average annual income shall include the income accruing to
the general fund, exclusive of specific funds, transfers, and non-recurring
income.

SECTION 2. Separability Clause — \f any provision of this Act shall be
declared invalid or unconstitutional, the remaining part of the provisions not
otherwise affected shall remain in force.

SECTION 3. Repealing Clause — Any law, decree, ordinance,
administrative circulars not consistent with any provision of this Act is hereby
amended, repealed or modified accordingly.

SECTION 4. Effectivity — This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,