SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL ::0 i'"3 :~: 9 
SENATE 
S, No. 
1185 
Introduced by Senator Antonio "SONNY" F. Trillanes IV 
EXPLANATORY NOTE 
Section 450 of the Local Government Code provides for the conversion of a municipality or 
barangay into a component city. Section 450 of the Local Government Code as amended by 
Republic Act No. 9009 provides: 
"Section 450. Requisites for Creation: 
(a) A municipality or a cluster ofbarangays 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 
(PlOO,OOO,OOO) for the last two (2) consecutive years based on 2000 constant 
prices, and ifit has either of the following requisites: 
(i) a contiguous territory of at least one hundred (100) square kilometers, as 
certified by the Land Management Bureau, or; 
(ii) a population of not less than one hundred fifty thousand (150,000) 
inliabitimts, as certified by the Nationai Statistics Office. 
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." 
It can be noted however that there are some municipalities who are capable of providing much 
needed social services to their constituents. These municipalities even exceed other existing 
cities in the efficient delivery of services to their inhabitants. However, these municipalities are 
not eligible to be converted to a city due to their failure to comply with either the required 
number of population or land area. It is therefore unfair for the inhabitants of these municipalities 
that they are deprived of their rights to the benefits of cityhood and the opportunity to an 
increased social, economic, and political development. 
This bill therefore seeks to amend Sec. 450 of Republic Act No. 7160, otherwise known as the 
Local Government Code of 1991, as amended by Republic Act No. 9009, to qualify a 
municipality which has a land area of at least fifty (50) square kilometers or inhabitants of at 
least twenty-five thousand (25,000) but generates a local income of at least two hundred twenty 
million pesos (P220,000,000.00) to be converted into a component city. 
In view of the foregoing, the immediate approval of this bill is e 
estly sought. 
LLANES IV 
1 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 
1185 
"13 
JlJL ~1 0 
Introduced by Senator Antonio '~SONNY" F. Trillanes IV 
AN ACT 
AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991, AS AMENDED, ALLOWING THE 
CONVERSION OF A MUNICIPALITY WHICH HAS A LAND AREA OF AT LEAST 
FIFTY (50) SQUARE KILOMETERS OR INHABITANTS OF AT LEAST TWENTY 
FIVE THOUSAND (25,000) INTO A COMPONENT CITY IF IT HAS AN ANNUAL 
AVERAGE LOCALLY GENERATED INCOME OF AT LEAST TWO HUNDRED 
TWENTY MILLION PESOS (P220,000,000.00) FOR THE LAST TWO CONSECUTIVE 
YEARS BASED ON 2012 CONSTANT PRICES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Sec. 450 of Republic Act No. 7160, otherwise known as the Local 
2 
Government Code of 1991, as amended by Republic Act No. 9009, is hereby further amended to 
3 
read as follows: 
4 
"Sec. 450. Requisites for Creation. - (a) A municipality or a cluster ofbarangays may be 
5 
converted into a component city if it has a locally generated average annual income, as certified 
6 
by the Department of Finance, of at least One Hundred Million Pesos (100,000,000.00) for the 
7 
last two (2) consecutive years based on 2000 constant prices, and if it has either of the following 
8 
requisites: 
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(i) A contiguous territory of at least one hundred (100) square kilometers, as certified by 
10 
the Land Management Bureau; or 
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(ii) A popUlation of not less than one hundred fifty thousand (150,000) inhabitants, as 
12 
certified by the National Statistics Office. 
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The creation thereof shall not reduce the land area, population and income of the original 
14 
unit or units at the time of said creation to less than the minimum requirement prescribed herein. 
1 


1 
PROVIDED 
THAT, 
NOTWITHSTANDING 
THE 
FOREGOING, 
A 
2 
MUNICIPALITY WHICH HAS AN AREA OF AT LEAST FIFTY (50) SQUARE 
3 
KILOMETERS OR INHABITANTS OF AT LEAST TWENTY FIVE THOUSAND 
4 
(25,000) MAY BE CONVERTED INTO A COMPONENT CITY IF IT HAS A LOCALLY 
5 
GENERATED INCOME, AS CERTIFIED TO BY THE DEPARTMENT OF FINANCE, 
6 
OF AT LEAST TWO HUNDRED TWENTY MILLION PESOS (P220,000,000.00) FOR 
7 
THE LAST TWO CONSECUTIVE YEARS BASED ON THE 2012 CONSTANT 
8 
PRICES." 
9 
(b) The territorial jurisdiction of a newly-created city shall be properly identified by 
10 
metes and bounds. The requirement on land area shall not apply where the city proposed to be 
11 
created is composed of one (I) or more islands. The territory need not be contiguous if it 
12 
comprises two (2) or more islands. 
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( c) The average annual income shall include the income accruing to the general fund, 
14 
exclusive of special funds, transfers, and non-recurring income. 
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SEC. 2. If any provision of this Act shall be declared invalid or unconstitutional, the 
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remaining part or provisions not otherwise affected shall remain in force. 
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SEC. 3. Any law, decree, ordinance, administrative circulars not consistent with any 
20 
provision of this Act is hereby amended, repealed or modified accordingly. 
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SEC. 4. This Act shall take fifteen (15) days after its complete publication in the Official 
23 
Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
2