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18! CONGRESS /NDEXS)

First Regular Session

HOUSE BILLNo, __ £985

Introduced by Representative CARLITO S. MARQUEZ

EXPLANATORY NOTE

This bill seeks to strengthen and provide support to local government
units (LGUs) which have difficulty in coping with the developed and
urbanized counterparts.

Cities, that are classified based on their income, land area, and
population such as Highly Urbanized Cities, Independent Component Cities,
and Component Cities, have an economic advantage that would likewise
deliver better essential services to the public. It is for the reason that there
is a separate allocation for these cities in the country in the Internal Revenue
Allotment (IRA) which is only by 23-percent. Municipalities, however,
amounting to almost 1,500, share in the 34-percent IRA allotment. This
would in effect urge municipalities to find better alternatives to increase its
funding for the sole ability to providing better basic functions and services to
their constituents. Hence, there seems to be an inequity in the distribution
to the burden of the devolved functions of the LGUs.

While municipalities aspire to become assured with economic viability,
such LGUs hardly strive to meet the minimum requirements for cityhood.

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Such is the same case with the dilemma of the LGU of Kalibo in the Province
of Aklan. Based on the 2017 Philippine Statistics Authority Provincial

Summary, there are 28 out of 81 provinces without any component cities,

independent component cities, or highly urbanized cities within its

territorial jurisdiction. Their historical and cultural centers or capitals

remain to be mere towns or municipalities:

REGION | PROVINCE CAPITAL TOWN
Cordillera Administrative Region | Abra Bangued
‘Apayao Kabugao
Ifugao Lagawe
Mountain Province | Bontoc
Cagayan Valley (Region II) Batanes Basco
Nueva Vizeaya Bayombong
Quirino Cabarroguis
Central Luzon (Region II1) ‘Aurora Baler
MIMAROPA (Region IV-B) Marinduque Boac
Occidental Mindoro | Mamburao
Romblon Romblon |
Bicol Region (Region V) Camarines Norte | Daet
Catanduanes Virac |
Western Visayas (Region VI) ‘Aklan Kalibo |
| Antique San Jose
| Guimaras Jordan
[Central Visayas (Region VII) Siquijor Siquijor
| Bastern Visayas (Region VII) Biliran Naval
Northern Samar __| Catarman
| Zamboanga Peninsula (Region IX) | Zamboanga Ipil
Sibugay |
Northern Mindanao (Region X) Camiguin Mambajao
Davao Region (Region XI) ‘Compostela Valley | Nabunturan
Davao Oriental Malita
SOCCSKSARGEN (Region XII) Sarangani Alabel
Caraga (Region XIII) Dinagat Islands San Jose
Bangsamoro Autonomous Region in | Maguindanao Buluan
Muslim Mindanao Sulu Jolo
Tawi-Tawi Bongao

The 34-percent IRA share hampers necessary growth and development

of these capital towns in which provinces could have invested more on.

Accordingly, these capital towns even serve as a center for trade, tourism,

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and the seat of government —each corresponding IRA share is inadequate for
the capital towns to provide better access to services and functions of the said
LGU.

This is where this proposed measure fills the gap. With respect to the
present provision of Republic Act No. 9009, there should be an exception in
which provinces without cities within their territorial jurisdiction be waived
on meeting the minimum requirements based on the income, land area, and
population to convert their respective capital towns to a component city.
Such motion employs better opportunity for the locality not only on the fiscal
viability but also towards greater resources stimulating growth and
development.

Immediate approval of this bill is earnestly sought.

b

,
ENGR. CARLITO “Lito” S. MARQUEZ Oy

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

18T™ CONGRESS
First Regular Session

4085
HOUSE BILLNO._

Introduced by Representative CARLITO S. MARQUEZ

AN ACT

AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE, BY AUTOMATICALLY
CONVERTING CAPITAL TOWNS OF PROVINCES WITHOUT CITIES
CLASSIFIED EITHER HIGHLY URBANIZED CITIES, INDEPENDENT
COMPONENT CITIES, OR COMPONENT CITIES

Be it enacted by the Senate and the House of Representatives of the Philippines 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 No. 9009 is

hereby further amended to read as follows:
“See 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 last two (2) consecutive years based on 2000 constant prices, and ifit has either

of the following requisites:

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(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.

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 MINIMUM REQUIREMENTS
PRESCRIBED HEREIN SHALL NOT APPLY IF A MUNICIPALITY
TO BE CONVERTED INTO A CITY IS THE CAPITAL TOWN OF A
PROVINCE HAVING NO CLASSIFIED CITIES WITHIN ITS

TERRITORIAL JURISDICTION.

(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.

(c) The average annual income shall include the income accruing to the general

fund, exclusive of s requisites for Creation.

Sec. 2. Repealing Clause. - All laws, decrees, executive orders and regulations,
issuances or parts thereof inconsistent with his Act are hereby repealed or amended
accordingly.

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See. 3. Effectivity. This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or in a newspaper of general circulation.

Approved,

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