Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 5313

Introduced by Honorable Raul A. Daza

EXPLANATORY NOTE

Recognizing the indispensable role of capital towns in the economic,
political and socio-cultural development of provinces in the country, it becomes
necessary to revisit and amend the provisions of the Local Government Code of
1991, as amended, which currently pegs the minimum locally generated average
annual income requirement for cityhood at one hundred million pesos (Php
100,000,000) for the last two (2) consecutive years based on year 2000 constant
prices.

This requirement unduly restricts the municipalities which serve as capital
towns of provinces in maximizing their role as centers for commercial, political
and socio-cultural growth, particularly in provinces without cities. By elevating the
status of these municipalities into component cities, they will be granted more
autonomy, taxation powers and an increased share in the internal revenue
allotment thereby further capacitating them in improving the lives and well-being
of their populace.

Moreover, their cityhood will invigorate the investment climate in their
respective constituencies. Their empowerment will ultimately redound to the
benefit and development of the other neighboring towns within the province and
will decongest the concentration of commercialization and economic progress in
provinces with cities as their capital

Converting these capital towns into cities, in essence, will put them at par
with the other existing capital cities and shall enable them to equally enjoy the
benefits of cityhood thereby increasing the economic and political foundation of
the country as a whole.

Hence, the approval of this bill is eamestly sought.

RAUL Loan


Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
First Regular Session

Tr
HOUSE BILL No,__ 9348

Introduced by Honorable Raul A. Daza

AN ACT
TO EXEMPT FROM THE INCOME REQUIREMENT CAPITAL TOWNS OF
PROVINCES WITHOUT A CITY SUBJECT TO CERTAIN CONDITIONS
AMENDING FOR THE PURPOSE SECTION 450 OF REPUBLIC ACT NO.
7610, AS AMENDED BY REPUBLIC ACT NO. 9009, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991 AND FOR OTHER PURPOSES.

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

SECTION 1. Section 450 of Republic Act No. 7610, 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
locally generated average annual income, as certified by the
Department of Finance, of at least One Hundred Million Pesos
(Php 100,000,000) for the last two (2) consecutive years based on the
2000 constant prices; and (b.) 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
(i) A population of not less than one hundred fifty
thousand (150,000) inhabitants, as certified by the

National Statistics Office.


Provided that the capital towns of provinces without a city shall

be exempt from the annual income requirement of one hundred

million pesos (php100,000,000) as provided for in par. (a) hereof

to be qualified for conversion into a city; Provided, further, that

capital towns of provinces where there is no existing city shall

have priority for conversion into component cities;

The creation lhereof 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.”

SECTION 2. Plebiscite — Existing capital towns are hereby converted into
component cities upon approval by a majority of the votes cast in a 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 thirty (30) days from the effectivity of this Act.

The COME

shall conduct and supervise such plebiscite in qualified capital
towns within ninety (90) days from receipt of the said list. The expenses for such
plebiscite shall be borne by the capital towns concerned.

SECTION 3. Applicability of Laws — The provisions of Republic Act No. 7160,
otherwise known as the Local Government Code of 1991, and other laws as are
applicable to cities, shall govern the capital towns, which are converted into cities under
the immediately preceding sections, insofar as they are not inconsistent with the
provisions of this Act

SECTION 4. Rules and Regulations — The DILG shall issue the necessary
rules and regulations within thirty (30) days after the effectivity of this Act.

SECTION 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,

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