FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
) 
) 
) 
Senate Bill No.31l81 
Introduced by SENATOR PANFILO M. LACSON 
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 
(150,000) 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. 
However, there are some municipalities which despite its small land area or 
population, have nevertheless demonstrated unquestionable capacity to provide 
essential government facilities and social services to its inhabitants, comparable or 
sometimes even surpassing that being provided by existing cities. Thus, it would be 
utterly unfair to the inhabitants of such municipalities to forever foreclose their right to 
the benefits of cityhood, simply because their municipalities' land area or population is 
less than that required by the Local Government Code of 1991 as amended. 
At the same time, while there is no hard and fast rule to determine the optimum 
populace or land area for a city, applying by analogy the principles of political law 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, specifically: 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 its status as an independent state 
despite its small population and land area, with more reason, municipalities which have 
time and again demonstrated their capacity to thrive despite their small population and 
land area should be allowed to upgrade its status to that of a city. 
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 a local income of at least two hundred twenty million pesos 
(P220,000,000.OO), then it is qualified to be converted into a component city. 
For the reasons above stated, approval of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'11 
DEC -5 J\!e :19 
SENATE 
Senate Bill No, 3081 
Introduced by SENATOR PANFILO M. LACSON 
AN ACT 
AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991, AS AMENDED, 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 AN ANNUAL AVERAGE 
LOCALLY GENERATED INCOME OF AT LEAST TWO HUNDRED TWENTY 
MILLION PESOS (P220,000,000.00)· FOR THE LAST TWO CONSECUTIVE YEARS 
BASED ON 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 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. 
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. 
PROVIDED 
THAT, 
NOTWITHSTANDING 
THE 
FOREGOING, 
A 
MUNICIPALITY WHICH HAS AN AREA OF AT LEAST FIFTY (50) 
SQUARE KILOMETERS OR INHABITANTS OF AT LEAST TWENTY 
FIVE 
THOUSAND 
(25,000) 
MAY 
BE 
CONVERTED 
INTO 
A 
COMPONENT CITY IF IT HAS A LOCALLY GENERATED INCOME, AS 
CERTIFIED TO 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 2010 
CONSTANT F;'RICES, 


(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 special funds, transfers, and non-recurring income. 
SECTION 2. If any provision of this Act shall be declared invalid or 
unconstitutional, the remaining part or proVisions not otherwise affected shall remain in 
force. 
SECTION 3. Any law, decree, ordinance, administrative circulars not consistent 
with any provision of this Act is hereby amended, repealed or modified accordingly. 
SECTION 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,