, , 
SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 
1491 
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SEP -3 P4 :17 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Laws are enacted in order to respond to the need of the times. 
Such is the flexible nature of laws for where it any different, the needed 
effect would not be accomplished. 
In olden times, Romans applied substantial justice and enacted 
laws in order to respond accordingly. 
This flexibility of the law js not restricted to olden times. When 
Rockefeller was suspected of having monopolized the oil industry, anti-
trust legislation was enacted in order to break up this monopoly. 
The Local Government Code is not immune from this flexibility. It 
has undergone amendments in its provisions in several ways that it 
cannot be accused of standing still. Short of saying, it has responded to 
the needs of the times. 
This amendment of the Local Government Code must be made 
because the effects of economic success are not limited to that which has 
a large square kilometer in area. 
. 
Vibrant municipalities have sprung from the ground up which 
have not necessarily been limited by their land area and are thus 
needing recognition as a city, with all accompanying benefits thereto. 
In view of the foregoing, the passage of this measure is earnestly 
sought. 
oe 
<5 ()~ .' 
JOSEPH VICTOR G. EJERCITO 


SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. __ 1_4_9_1_ 
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SEP -3 P 11 :17 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT EXEMPTING FROM THE POPULATION AND THE LAND AREA 
REQUIREMENTS THE CONVERSION OF A MUNICIPALITY INTO A 
COMPONENT CITY IF IT HAS A LOCALLY GENERATED AVERAGE 
ANNUAL INCOME OF AT LEAST FIVE HUNDRED MILLION PESOS 
(500,000,000.00), AMENDING FOR THE PURPOSE SECTION 450 OF 
REPUBLIC ACT NO. 7160, AS AMENDED, 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 450 of Republic Act No. 7160, as amended by 
Republic Act No. 9009, otherwise known as the Local Government Code 
of 1991, is hereby further amended to read as follows: 
"SEC. 450. Requisites for Creation. - (al A municipality or a duster 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 (PlOO,OOO,OOO.OO) 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 
POPULATION AND 
LAND 
AREA REQUIREMENTS 
PRESCRIBED 
HEREIN SHALL NOT APPLY IF A MUNICIPALITY HAS A LOCALLY 
GENERATED 
AVERAGE 
ANNUAL 
INCOME, AS 
CERTIFIED 
BY 
THE DEPARTMENT OF FINANCE, OF AT . LEAST FIVE HUNDRED 
MILLION 
PESOS (P500,000,000.00) 
FOR 
THE 
LAST 
TWO (2) CONSECUTIVE YEARS BASED ON 2010 CONSTANT PRICES 
AND HAS EITHER THE POPUL~TION OR LAND AREA REQUIREMENT 
PRESCRIBED 
FOR 
THE 
CREATION 
OF 
A 
MUNICIPALITY 
UNDER SECTION 442 OF THIS CODE. 
"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. 


"(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. This Act shall take effect fifteen (15) days after its 
publication in any newspaper of general circulation. 
Approved,