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Republic of the Philippines
HOUSE OF REPRESENTATIVES Spe

Quezon City, Metro Manila

Fifteenth Cong:
Second Regular Session

529
HOUSE BILL NO._9299

Introduced by Honorable Juliet R. Cortuna

EXPLANATORY NOTE

Creation of a province, component city or conversion of a component city into a
highly-urbanized city can be instrumental in improving the delivery of public goods and
services in places where the population, area or its income demands the same.

However, in instances where the creation of a province, component city or
conversion of a component city into a highly-urbanized city merely serves the personal
interest of politicians, the said creation could only add up to the administrative cost of the
entity concerned resulting in the possible deterioration of the delivery of public goods
and services.

This bill seeks to prevent the unnecessary creation of a province/s, component
city/cities including their conversion into highly-urbanized cities by increasing the
income requisite thereof to B800M for a province, 200M for component city creation
and R500M for the conversion to highly-urbanized city. The new amount required will
ensure that the delivery of public goods and services for the proposed entities will not be
compromised in case a local entity will be created or converted thereof.

In view of the foregoing, passage of this bill is hereby being earnestly sought.

JULIET R. TT


Republic ofthe Philippines
House OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
‘Second Regular Session

HOUSE BILLNO.__ 9290

Introduced by Honorable Juliet R. Cortuna

AN ACT RESTRICTING THE UNNECESSARY CREATION/CONVERSION OF
LOCAL GOVERNMENT ENTITIES AMENDING FOR THE PURPOSE SECTIONS
450, 452 AND 461 OF REPUBLIC ACT NO. 7160 OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991 AS AMENDED BY REPUBLIC ACT NO.
9009

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

SECTION 1. Section 450 of Republic Act No. 7160 otherwise known as
the Local Government Code of 1991 as amended by Republic Act No. 9009 is

hereby amended to read as follows:

“Section 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 two hundred
million pesos (B200,000,000.00) for the last two (2) consecutive years based on 2011
constant prices, and if it has either of the following requisites:

@ a contiguous territory of at least one hundred (100) square kilometers as

certified by the Land Management Bureau; or

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

inhabitants as certified by the National 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 therein.

(b)

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The territorial jurisdiction of a newly-created city shall be
properly identified by metes and bounds. The requirement on 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.

‘The average annual income shall include the income accruing to
the general fund, exclusive of special funds, transfers and non-

recurring income”

SECTION 2. Section 452 of Republic Act No. 7160 otherwise known

as the Local Government Code of 1991 is hereby amended to read as follows:

“Section 452. Conversion of a Component City into a Highly-Urbanized City-

Requisites for conversion, A component city shall not be converted into a highly-

urbanized city unless the following requisites are present:

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Income - latest annual income of not less than five hundred
million pesos (PS00,000,000.00) based on 2011 constant prices as
certified by the city treasurer. The annual income shall include
the income accruing to the general fund, exclusive of special

funds, transfers, and non-recurt

ig income; and
Population — which shall not be less than two hundred fifty
thousand (250,000) inhabitants, as certified by the National

Statistics Office (NSO).

SECTION 3. Section 461 of Republic Act No. 7160 otherwise known as

the Local Government Code of 1991 is hereby amended to read as follows:


“Section 461. Requisites for Creation. - (a) A province may be
created if it has an average annual income, as certified by the Department
of Finance, of not less than eight hundred million pesos (P800,000,000.00)
based on 2011 constant prices and either of the following requisites:

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

(ii) a population of not Jess than five hundred thousand
(500,000) 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

the said creation to less than the minimum requirements herei

(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, trust funds,
transfers, and non-recurring income.
SECTION 4. Repealing Clause. All laws, decrees, orders, rules and
regulations, and other issuances or parts thereof, which are inconsistent with

this Act, are hereby repealed or modified accordingly.


SECTION 5S. Effectivity. This act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least (2) national newspapers of

general circulation.

Approved,