House passes bill rationalizing the income requirement for LGUs

The House of Representatives has approved on second reading a bill rationalizing

the income requirements for the conversion of a municipality into a component city,
creation of a province and the declaration of highly urbanized status in the case of
component cities.
Rep. Gwendolyn Garcia (
rd
!istrict, "ebu "ity#, one of the authors of House $ill
%&'(, said the measure increases the average annual income for the creation of a
municipality from )'.% million to )('.% million for the last two consecutive years based
on '&( constant prices.
The bill also increases the income requirement for the declaration to highly
urbanized status of a city from )%& million to )'%& million.
*i+ewise, it provides that the !epartment of ,inance instead of the "ity Treasurer
shall certify the classification of a highly urbanized cities that meet the income
requirements, provided that the annual average income shall include the income accruing
to the general fund, but e-cluding the .nternal Revenue /llotment (.R/# shares, special
funds, trust funds and non0recurring income.
1nder the bill, it is the duty to declare a city as highly urbanized shall be e-ercised
by "ongress instead of the )resident of the )hilippines through the passage of a 2oint
resolution declaring the city as highly urbanized within & days after it shall have met the
requirements prescribed by law.
,urther, it requires that the declaration of highly urbanized city shall be ratified in a
plebiscite by the qualified voters of the province in which the city geographically belongs.
The measure increases the locally generated annual income for the creation of a
province from )'& million to )'&& million.
3ubmitted by the "ommittee on *ocal Government for plenary approval, House $ill
%&'(, a substitute bill to House $ill 4os. ('%(, '5%6 and 7', see+s to correct the
imbalance in income requirements created by Republic /ct 5&&5, otherwise +nown as 8/n
/ct /mending 3ection 6%& of R/ 4o. 9(7&, otherwise +nown as 8The *ocal Government
"ode of (55(, by increasing the /verage /nnual .ncome Requirement for a :unicipality
or "luster of $arangays to be converted into a "omponent "ity.;
<ther co0authors of the bill include are Reps. =nrique "o2uangco ((
st
!istrict,
Tarlac#, 3usan >ap ('
nd
!istrict, Tarlac# and <scar Rodriguez (
rd
!istrict, )ampanga#.
(&# mvip
NR # 3606
OCT. 1, 2014