Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

29

HOUSE BILL NO.

Introduced by REP. CESAR V. SARMIENTO

EXPLANATORY NOTE

Cities play a pivotal role in the development of a society. Ancient cities became the

seat of civili jon, Commerce, trade, industry and culture started in the cities. Interestingly,
cities are always the precursor to modernization and industrialization. The socio-economic
growth of a place can be gauged as to the establishment of a city in that particular area.

Indeed, it is undeniable that cities are centrat to economic and societal progress.

In 1900, only 13 percent of the world’s population lived in cities. Two years ago,
more than half of the world’s population lives in urban areas. By 2050, that number will rise

to 70 percent according to studies.

The Philippines, being an archipelago, needs to be economically and socio-culturally
consolidated as a whole and the establishment of at least one city per province, the capital
town that is, will pave the way towards the economic independence of each province while

securing the well being of the whole nation.

Corollary, there is a need to revisit and further amend the provisions of the Locat
Government Code of 1991, as amended, to exempt capital towns of the provinces in the
Philippines with the requirements set forth in the law for capitat towns to become cities.
Given their roles as the commercial, political, and socio-cultural centers in their respective
provinces, it becomes necessary to further capacitate these municipalities by elevating their
status to component cities. Such change of status will give them more autonomy and

taxation powers and an increased share in the internal revenue allotment. More


importantly, cityhood will boost investor confidence and invigorate the business and even

tourism climate.

Cities are important catalyst of fiscal and societal change. We cannot tarry behind in
the global arena just because we refuse to upgrade our capital towns to cities. As Samuel
Palmisano puts it, “Therefore, it is in our cities, | believe, that we can see the most promising

opportunity for an intelligent upgrade in how the world works and how we live.”

The proposed bill, in essence, seeks to assist capital towns in considerably
improving the lives and well-being not just of their populace but the rest of the country.
Thus, the passage of this bill is highty called for.

mip

CESAR V. SARMIENTO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

5429

HOUSE BILLNO. ___

Introduced by REP. CESAR V. SARMIENTO

AN ACT AMENDING SECTION 450 OF REPUBLIC ACT 7160 OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991, AS AMENDED BY REPUBLIC ACT NO. 9009, BY
EXEMPTING CAPITAL TOWNS OF PROVINCES WITHOUT CITIES FROM THE INCOME
REQUIREMENT SET FORTH THEREIN AND FOR OTHER PURPOSES

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

Section 1. Section 450 of Republic Act No. 7160, as amended by Republic Act No.
9009, is hereby further 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 an average annual income, as certified by
the Department of Finance, of at least One hundred million pesos (P100,000,000.00) for the
last two (2) consecutive years based on 2000 constant prices, and (b) if it has either of the
following requisites:

w A contiguous territory of at least one hundred (100) square kilometers, as

certified by the Land Management Bureau; or

(ii) A population of not fess than one hundred fifty thousand (150,000)

inhabitants, as certified by the National Statistics Office;

Provided, That, the creation thereof shall not reduce the tand area, population, and
income of the original unit or units at the time of said creation to less than the minimum
requirements prescribed herein.

PROVIDED FURTHER, THAT CAPITAL TOWNS OF PROVINCES WHERE THERE ARE NO
EXISTING CITY SHALL BE EXEMPT FROM THE ANNUAL {INCOME REQUIREMENT OF ONE
HUNDRED MILLION PESOS (P:100,000,000) AS PROVIDED FOR IN PAR (A) HEREOF TO BE
QUALIFIED FOR CONVERSION INTO A CITY;



PROVIDED FINALLY, THAT CAPITAL TOWNS OF PROVINCES WHERE ‘THERE ARE NO
EXISTING CITY SHALL HAVE PRIORITY FOR CONVERSION INTO COMPONENT CITIES;

{b) The territorial jurisdiction of a newly-created city shall be properly identified in
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 specific funds, transfers, and non-recurring income.”

Sec. 2 Plebiscite — Existing capital towns ‘of provinces without cities are hereby
converted into component cities upon approval by a majority of the votes cast in 3 plebiscite
to be held in the said capital towns. The Department of interior and Local Government
{(DILG) shall submit to the Commission on Elections (COMELEC) the list of capital towns,
which qualify under this Act, within forty five (45) days from the effectivity of this Act.

The COMELEC shall conduct and supervise such plebiscite in qualified towns within
one hundred twenty (120) days from receipt of the said list from the DILG. The expenses of
such plebiscite shall be borne by the capital towns concerned.

Sec. 4, Rules and regulations. — The DILG shall issue the necessary rules and
regulations within forty five (45) days after the effectivity of this Act.

sec. 3. Applicability of Laws. ~ The provisions of Republic Act No. 7160 otherwise
known as the Local Government Code of 1992, and other laws as are applicable to cities,
shall govern the capital towns, which are converted into cities under the immediately
preceding section, insofar as they are not inconsistent with the provisions of this Act.

sec. 4, Repeating 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.

Sec. 5. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspapers of general circulation.

Approved,