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

NINETEENTH CONGRESS
1 Regular Session

House Bill No. 313

Introduced by Representative ERIC GO YAP

EXPLANATORY NOTE

This bill secks to venture on the full economic potential of provinces which have no
component cities, independent component cities, or highly urbanized cities within its
territorial jurisdiction through the automatic conversion of their capital towns into a
component city. Cityhood is critical on the fiscal standing of a municipality. In square
meter or per capita basis, cities get more in terms of the Internal Revenue Allotment
(IRA) share, allowing greater number of development opportunities for the said
locality. Republic Act 9009 provides for the following requisites before a municipality
becomes a component city:

“(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

Gi) a population of not less than one Inndred fifty thousand (150,000)
inhabitants, as certified by the National Statistics Offic

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 twvo (2) or more islands.


(6) The merage annual income shall include the income accruing to the
general fund, exclusive of special funds, transfors, and non-recurring income.”.

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

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

‘As an archipelago, Philippines comprises various islands with different land areas
situated far from each other and divided either by vast waters or vast lands. In fact,
there are much smaller political entities in the world that are able to grow vigorously,
compete, and even be at par with bigger city states in terms of economic viability. The
automatic conversion of capital towns into component cities will provide a stepping
stone to a province through the grant of a favorable revenue allotment that will open
vast opportunities for the province. In addition, the said measure will also put utmost

recognition to the heart of every province—its capital town.

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

YAP


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

NINETEENTH CONGRESS
1 Regular Session

313

House Bill No. __

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 ancl 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 atleast one hundred (100) square kilometers,
as certified by the Land Management Bureau; or

a population of not less than one hundred fi
ts, as certified by the National Statistics Office.

ty thousand (150,000)

Provided, That, the creation thereof shall not reduce the land arca,
populatio
to less than the minimum requirements prescribed therein,

ind income of the original unit or units at the time of said creation

“PROVIDED, FURTHER, THAT THE REQUIREMENT ON
INCOME, POPULATION AND LAND AREA PRESCRIBED HEREIN
SHALL NOT APPLY IF A MUNICIPALITY TO BE CONVERTED INTO
TY 1S THE CAPITAL TOWN OF ANY PROVINCE HAVING NO
PONENT 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.

(0) 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,