~C!l!ltr 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
H~tll;r (If tIll? ~t'(rf'bt" 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG 28 P 4 :31 
SENATE 
S, B. No1390 
Introduced by SENATOR GREGORIO B. HONASAN II 
EXPLANATORY NOTE 
For a municipality to be converted into a city, 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 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 
(150,00.0) 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." 
However, there are certain small and sparsely populated municipalities which 
have nevertheless demonstrated unquestionable capacity and competence to provide 
essential government and social services to their inhabitants, comparable to or 
sometimes even better than those being provided by existing cities. Thus, it would be 
utterly unfair to the inhabitants of such mUnicipalities to deny them the benefits of 
cityhood simply because their respective land areas or populations are less than that 
presently required by the Local Government Code. 
Furthermore, while there is no hard and fast rule to determine the optimum 
populace or land area for a city, .. applying by analogy the basic principles for creation of 
a sovereign state, the population must be numerous enough and able to procreate in 
order to ensure perpetuation of the political entity. With regard to its land area, the same 
must be large enough to be able to sufficiently provide for its people. 
Noteworthy are the small states, such as Monaco, a tiny state along the French 
Riviera which has an area of just 0.75 square miles (1.94 sq. km.) and a population of 


just 32,000. The island state of Nauru, became independent in 1968, and has an area 
of just 8.5 square miles (22 sq. km.) and a population of just 13,000. Tuvalu, formerly 
known as the Ellice Islands, gained its independence in 1978, and has an area of just 9 
square miles (23.3 sq. km.) and a population of 12,000. San Marino, located on Mt. 
Titano in north central Italy, which has an area of just 24 square miles (62.16 sq. km.) 
and a population of just 29,000. 
If the above political entities have attained and secured independence and 
intemational recognition of statehood despite their respective small populations and 
land areas, with more reason, municipalities which have time and again demonstrated 
their capacity to thrive be permitted to be upgraded to cities. 
For purposes of this legislative measure, if a municipality which has a land area 
of at least fifty (50) square kilometers or inhabitants of at least twenty-five thousand 
(25,000) generates an annual average local income of at least two hundred twenty 
million pesos (P220, 000,000.00) for two years, then it is qualified to be converted into a 
component city. 
For the reasons above stated, approval of this bill is earne tly sought. 
G 


SCl'll1tt> 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
,eth:t {If tqfl' ~,'n{tbr, 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG 28 P 4 :37 
SEN AT E 
S. B. Nollo, 0 
Introduced by SENATOR GREGORIO B. HONASAN II 
AN ACT 
AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991, AS AMENDED, BY 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 A LOCALLY 
GENERATED AVERAGE ANNUAL INCOME OF AT LEAST TWO HUNDRED 
TWENTY MILLION PESOS (P220, 000,000) FOR THE LAST TWO CONSECUTIVE 
YEARS BASED ON THE YEAR 2010 CONSTANT PRICES 
Be it enacted by the Senate and the 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 THE YEAR 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. 
PROVIDED, THAT NOTWITHSTANDING THE FOREGOING, A 
MUNICIPALITY WHICH HAS A CONTIGUOUS TERRITORY OF AT 
LEAST FIFTY (50) SQUARE KILOMETERS, AS CERTIFIED BY THE 
LAND MANAGEMENT BUREAU OR INHABITANTS OF AT LEAST 
TWENTY FIVE THOUSAND (25,000), AS 
CERTIFIED 
BY THE 
NATIONAL STATISTICS OFFICE 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 TWENTY MILLION PESOS 
(P220,000,000.00) FOR THE LAST TWO CONSECUTIVE YEARS 
BASED ON THE YEAR 2010 CONSTANT PRICES. 


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. 
(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 incfude 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 decfared 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, 
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