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DATE December 5, 2022 hy

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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No.6495

Introduced by Representative Rex Gatchalian

AN ACT
EXTENDING THE POWER OF THE PRESIDENT TO DECLARE HIGHLY
URBANIZED CITY STATUS TO MUNICIPALITIES, AMENDING FOR THE
PURPOSE SECTIONS 452 AND 453 OF THE REPUBLIC ACT NO. 7160,
AS AMENDED, OTHERWISE KNOWN AS THE “LOCAL GOVERNMENT
CODE OF 1991”

EXPLANATORY NOTE

The Local Government Code of 1991 was signed into law on 1991. This
Code transferred control and responsibility of delivering basic services in the
hands of local government units (LGU). It also enumerates the different local
government political units, and the requirements for its creation and
conversion.

When the Code was crafted, it envisioned for the natural progression of
barangays turning into municipality, municipality into cities, and cities being
declared as highly urbanized city (HUC). It failed to foresee the possibility of
rapid economic growth by several municipalities. In 2021, there were a
number of municipalities that were able to come at par, or even performed
better, in terms of its economic growth vis-a-vis some of the currently existing
highly urbanized cities, these are what we can regard as, “Mega
Municipalities”. Most of these mega municipalities have long remained as a
municipality despite their fiscal stature because of the long, tedious, and very

political process of legislation in order to be converted into a city.


One good example is the Municipality of Carmona that was reported to
have generated 767 million pesos from local sources, which is an amount way
higher than the required income set in the Local Government Code for the
President to declare it as an HUC. Unfortunately, the present law requires
Carmona to first undergo through the legislative procedure of being declared
a city, and undertake the process of applying to the Office of the President to
be declared as a highly urbanized city. This two-layered process requires two
sets of plebiscite - which the National Government must spend for.

The legislative intent of this measure is to extend the power of the
President, upon application of the municipality, to declare highly urbanized
city status to municipalities that have qualified in terms of income and
population. The rationale in streamlining the process is to provide an efficient
legislative process in the conversion of municipalities to HUCs without the
unnecessary cost that entails in holding a second plebiscite but without
prejudice to compliance to the requirements set by law for conversion into an
Huc.

In view of the foregoing considerations, approval of this bill is earnestly

sought.

IN. REX GATCHALIAN

Representative
14 District, Valenzuela City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No.6495
————
Introduced by Representative Rex Gatchalian
—

AN ACT
EXTENDING THE POWER OF THE PRESIDENT TO DECLARE HIGHLY
URBANIZED STATUS TO MUNICIPALITIES, AMENDING FOR THE
PURPOSE SECTIONS 452 AND 453 OF THE REPUBLIC ACT NO. 7160,
AS AMENDED, 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 452 of Republic Act (RA) No. 7160, otherwise
known as the “Local Government Code of 1991”, as amended, is hereby
amended as follows:

“Section. 452. Highly Urbanized Cities.

(a) Cities OR MUNICIPALITIES with a minimum population of
two hundred thousand (200,000) inhabitants, as certified by
the [National _StatistiesOffice] PHILIPPINE STATISTICS
OFFICE, and with the latest annual income of at least Fifty
Million Pesos (Php50,000,000.00) based on 1991 constant
prices, as certified by the city treasurer, shall be classified as
highly urbanized cities.”

SEC. 2. Section 453 of Republic Act (RA) No. 7160, as amended, is
hereby amended as follows:

“Section. 453. Duty to Declare Highly Urbanized Status. - It
shall be the duty of the President to declare a city OR
MUNICIPALITY as highly urbanized within thirty (30) days after
it shall have met the minimum requirements prescribed in the
immediately preceding section, upon proper application therefor
and ratification in a plebiscite by the qualified voters therein.”

SEC. 3. Repealing Clause. — Sections 452 and 453 of Republic Act No.
7160, otherwise known as the Local Government Code of 1991, as amended,


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is hereby amended. All laws, presidential decrees, executive orders,
presidential proclamations, rules and regulations or parts thereof contrary to
or inconsistent with this Act are hereby repealed, superseded or modified
accordingly.

SEC. 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,