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

EIGHTEENTH CONGRESS
1 Regular Session

House Bill No.

Introduced by Representative ERIC GO YAP

EXPLANATORY NOTE

This bill seeks to venture on the full economic potential of provinces through
the automatic conversion of its capital towns which have no component cities,
independent component cities, or highly urbanized cities within its territorial
jurisdiction, into a component city. Conversion into Cityhood is pursued by many,
mainly because of the constructive and salient benefits it does to the fiscal standing of
the Municipality (Senate Economic Planning Office, 2013). Simply put, a bigger
budget means bigger spending, thus there will be bigger and better development
opportunities for the locality involved. Republic Act 9009, An Act Amending Section
450 of Republic Act No. 7160 indicates in Section 450 that:

“(q) A municipality or a cluster of barangays may be converted into a component
city ifit 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)
consecutioe 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 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 requirements

prescribed herein.

(®) 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.”.

This bill seeks to provide exemptions to the law above, that the requirement on
income, population, and land area prescribed shall not apply if a municipality to be
converted into city is the capital town of any province having no component city,

independent component city or highly urbanized city within its territorial jurisdiction.

The Philippines, because it is an archipelago, must be understood to be
comprised of various islands with different land areas situated far from each other
and divided either by vast waters or vast lands. There are much smaller political
entities in different parts of the world that are able to grow vigorously, compete, and
ity. The automatic
conversion capital towns into component cities is the stepping stone to vast

even be at par with bigger city states in terms of economic viabi

opportunities not only for the locality but for the entire country as well. In view of the

foregoing, approval of this bill is earnestly sought.

—————

ERIC GO YAP


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

EIGHTEENTH CONGRESS
1 Regular Session

House Bill No. 6366

Introduced by Representative ERIC GO YAP

AN ACT AUTOMATICALLY CONVERTING THE CAPITAL TOWN OF
PROVINCES WITH NO COMPONENT CITIES, INDEPENDENT COMPONENT
CITIES OR HIGHLY URBANIZED CITIES WITHIN ITS TERRITORIAL
JURISDICTION, INTO A COMPONENT CITY

Be it enacted by the Senate and 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 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 the 2012 constant prices, provided, that:

(i) acontiguous 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 REQUIREMENT ON
INCOME, POPULATION AND LAND AREA PRESCRIBED HEREIN
SHALL NOT APPLY IF A MUNICIPALITY TO BE CONVERTED INTO
CITY IS THE CAPITAL TOWN OF ANY PROVINCE HAVING NO
COMPONENT CITY, INDEPENDENT COMPONENT CITY OR HIGHLY
URBANIZED CITY WITHIN ITS TERRITORIAL JURISDICTION.”



(b) The territorial jurisdiction of the newly-created city shall be properly
identified by metes and bounds. The requirement on the 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 funds, transfers, and non-recurring income.

SEC. 2. Separability Clause. - If any provision or part hereof is held
unconstitutional, the other provisions not otherwise affected shall remain valid and
subsisting.

SEC. 3. Repealing Clause. - All laws, decrees, issuances, executive orders,
letters of instruction, administrative orders, rules and regulations, or parts thereof,
contrary to or inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,