HOUSE QF REPRESENTATIVES

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REPUBLIC OF THE PHILIPPINES j DATE: = py any
HOUSE OF REPRESENTATIVES tye 5
Quezon City | oe. TEL
SEVENTEENTH CONGRESS _
First Regular Session } REGISTRATION UNIT

BILLS AND INDEX SERVICE

House BillNo. 1151 _

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO’

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 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) for the lust two (2) consecutive years based on 2000 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;

(ii) a population of not less thar 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 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 earnestly sought.

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i. GARWC. ALEJANO

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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House BillNo. 1151 __

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

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:

SECTION 1. Sec. 450 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, as amended by Republic Act No, 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 (100,000,000.00) for the
last two (2) consecutive years based on 2000 constant prices, and if it 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) 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 requirement prescribed herein.


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PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, A
MUNICIPALITY WHICH HAS AN AREA OF AT LEAST FIFTY (50) SQUARE
KILOMETERS OR INHABITANTS OF AT LEAST TWENTY FIVE THOUSAND
(25,000) MAY BE CONVERTED INTO A COMPONENT CITY IF IT HAS A LOCALLY
GENERATED INCOME, AS CERTIFIED TO BY THE DEPARTMENT OF FINANCE,
OF AT LEAST TWO HUNDRED TWENTY MILLION PESOS (P220,000,000.00) FOR
THE LAST TWO CONSECUTIVE YEARS BASED ON THE 2012 CONSTANT
PRICES.”

(b) 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.

SEC. 2. If any provision of this Act shall be declared invalid or unconstitutional, the

remaining part or provisions not otherwise affected shall remain in force.

SEC. 3. Any law, decree, ordinance, administrative circulars not consistent with any

provision of this Act is hereby amended, repealed or modified accordingly.

SEC. 4. This Act shall take fifteen (15) days after its complete publication in the Official

Gazette or in at least two (2) newspapers of general circulation.

Approved,