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SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session ) "18 1R 26 P340
SENATE RECEIV 3 f L
s.B.No. 1787

Introduced by Senator SONNY ANGARA

AN ACT
UPDATING THE REQUISITES FOR THE CREATION OF MUNICIPALITIES,
CITIES, AND PROVINCES BY AMENDING CERTAIN PROVISIONS IN BOOK III
OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT
CODE OF 1991

EXPLANATORY NOTE

Republic Act 7160, otherwise known as the Local Government Code of 1991, was
passed 26 years ago to create an environment of greater local autonomy by devolving
and decentralizing powers, resources, and responsibilities from the central government
to local government units. Despite the difficulties in its implementation, the Code made it
possible for LGUs to develop businesses, create new jobs and to move their economy
forward for the betterment of their respective communities

Since the passage of the Code, cities have grown rapidly in both number and
resources. Due to the latter, the Codal income criteria for the classification of a city was
left very far behind. In recognition of this significant development, the Congress passed
Republic Act 9009 redefining the income criteria of what makes a city and bringing it
more up to date with current developments. However, the application of the new criteria
for a city was no longer consistent with the “old” criteria used for provinces,
municipalities, and more so, highly urbanized cities. In order to address this disconnect
in national policy, there is a need to amend the Code in order to make this more
consistent with the income criteria used for cities in Republic Act 9009

In view of the foregoing, approval of this bill is earnestly sought.

he ANGARA



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8 Oltice of tre soecreterp

SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES. )
Second Regular Session )

18 NPR 26 P340
SENATE fe
S.B. NoL787

Introduced by Senator SONNY ANGARA

AN ACT
UPDATING THE REQUISITES FOR THE CREATION OF MUNICIPALITIES,
CITIES, AND PROVINCES BY AMENDING CERTAIN PROVISIONS IN BOOK II
OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT
CODE OF 1991

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

SECTION 1. Section 442 (a) of Republic Act No. 7160, otherwise known as the
Local Government Code of 1991, hereinafter referred to as the “Code”, is hereby

amended to read as follows:

“SEC.442. Requisites for Creation. - (2) A municipality may be created if it
has a[n] LOCALLY-GENERATED average annual income, as certified by the
provincial treasurer, of at least [Fwe-million-five hundred thousand pesos {2
2,600,000.90)] TWELVE MILLION FIVE HUNDRED THOUSAND PESOS
(P12,500,000.00) for the last two (2) consecutive years based on [the +994]
2000 constant prices; a population of at least twenty-five thousand (25,000)
inhabitants as certified by the [NationalStatistics—Office] PHILIPPINE
STATISTICS AUTHORITY; and a contiguous territory of at least fifty (50)
square kilometers as certified by the Land[s] Management Bureau: Provided,
That the creation thereof shall not reduce the land area, population or income
of the original municipality or municipalities at the time of said creation to less
than the minimum requirements prescribed herein.”



SEC. 2. Section 450 (a) of the Code, 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 (P100,000,000.00) 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] PHILIPPINE

STATISTICS AUTHORITY

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.”
SEC. 3. Section 452 (a) of the Code is hereby amended to read as follows:

“SEC. 452. Highly Urbanized Cities. - (a) Cities with a minimum population
of two hundred thousand (200,000) inhabitants as certified by the [National
Statistics-Office] PHILIPPINE STATISTICS AUTHORITY, and with fthe-tatest

4994—constant-prices A LOCALLY-GENERATED AVERAGE ANNUAL
INCOME, as certified by the city treasurer, OF AT LEAST TWO HUNDRED
FIFTY MIILLION PESOS (P250,000,000.00) FOR THE LAST TWO (2)
CONSECUTIVE YEARS BASED ON 2000 CONSTANT PRICES shall be
classified as highly urbanized cities.”



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SEC. 4. Section 461 (a) of the Code is hereby amended to read as follows:

“SEC. 461. Requisites for Creation. - (a) A province may be created if it
has a[n] LOCALLY-GENERATED average annual income, as certified by the
Department of Finance, of not less than ffwerty—milion—peses
(P20,000,000.00}] ONE HUNDRED MILLION PESOS (P100,000,000.00)
based on [4904] 2000 constant prices and either of the following requisites:
(i) @ contiguous territory of at least two thousand (2,000) square
kilometers, as certified by the Land[s] Management Bureau; or
(ii) @ population of not less than two hundred fifty thousand (250,000)
inhabitants as certified by the [National Statisties—Office] PHILIPPINE
STATISTICS AUTHORITY.

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 herein.”

SEC. 5. Repealing Clause. - All general and special laws, acts, city charters,
decrees, executive orders, proclamations and administrative regulations, or part or
parts thereof which are inconsistent with any of the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 6. Separability Clause. - If, for any reason or reasons, any part of
provision of this Act shall be held unconstitutional or invalid, other parts or provisions

hereof which not affected thereby shall continue to be in full force and effect.

SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,