Amending Sec. 450 of RA No. 7160 (Local Government Code of 1991, as Amended) by Providing for Requisites for Conversion of Municipality into Component City

April 10, 2022

REPUBLIC ACT NO. 11683

AN ACT AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AS AMENDED BY REPUBLIC ACT NO. 9009, BY PROVIDING FOR THE REQUISITES FOR THE CONVERSION OF A MUNICIPALITY INTO A COMPONENT CITY, AND FOR OTHER PURPOSES

SECTION 1. Section 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 (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

"(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the Philippine Statistics Authority (PSA).

"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 herein.

"A municipality or a cluster of barangays with a locally generated average annual income, as certified by the Department of Finance, of at least Four hundred million pesos (P400,000,000.00) for the last two (2) consecutive years based on 2012 constant prices may also be converted into a component city if it has either a population of not less than one hundred thousand (100,000) inhabitants as certified by the PSA or a contiguous territory of at least one hundred (100) square kilometers, as certified by the Land Management Bureau: Provided, That three (3) years after the effectivity of this Act and every three (3) years thereafter, the threshold amount of Four hundred million pesos (P400,000,000.00) shall be increased by five percent (5%).

"(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 specific funds, transfers, and non-recurring income.

"(d) In order to minimize the effect of conversion, the newly converted cities shall, upon enactment of this Act, bring their respective allotment derived from the national taxes as municipalities to the allotment of cities: Provided, That said portability shall be effective for a period of three (3) years from conversion into cityhood."

SECTION 2. Implementing Rules and Regulations. — The Department of the Interior and Local Government, the Department of Finance, and the Department of Budget and Management shall promulgate and issue the implementing rules and regulations within ninety (90) days from the effectivity of this Act.

SECTION 3. Separability Clause. — 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 4. Repealing Clause. — Any law, decree, ordinance, or administrative circulars not consistent with any provision of this Act is hereby amended, repealed or modified accordingly.

SECTION 5. Effectivity. — This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved:

Lapsed into law on April 10, 2022 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.

 

Published in the Manila Bulletin on April 29, 2022.