THE House of Representatives has recently approved on second reading a measure 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.
House Bill (HB) 5021, authored by United Nationalist Alliance Rep. Gwendolyn Garcia of Cebu, seeks to increase the average annual income for the creation of a municipality from P2.5 million to P12.5 million for the last two consecutive years, based on 2013 gross domestic product constant prices.
The bill also increases the income requirement for the declaration to highly urbanized status of a city from P50 million to P250 million.
The measure also provides for the Department of Finance—instead of the City Treasurer—to certify the classification of a highly urbanized city that meets the income requirements, provided that the annual average income include the earnings accruing to the general fund, but excluding the Internal Revenue Allotment shares, special funds, trust funds and nonrecurring income.
Under the bill, the duty to declare a city as highly urbanized will be exercised by Congress, instead of the President of the Philippines, through the passage of a joint resolution within 30 days after requirements prescribed by law have been met.
The measure also requires that the declaration of highly urbanized city will be ratified in a plebiscite.
The proposed bill also increases the locally generated annual income for the creation of a province from P20 million to P200 million.
The HB 5021—a substitute bill to HB 1251, 2954 and 3362—seeks to correct the imbalance in income requirements created by Republic Act 9009, otherwise known as An Act Amending Section 450 of Republic Act 7160, also known as The Local Government Code of 1991, by increasing the Average Annual Income Requirement for a Municipality or Cluster of Barangays to be converted into a Component City.
Co-authors of the bill are Nationalist People’s Coalition (NPC) Rep. Enrique Cojuangco of Tarlac, NPC Rep. Susan Yap of Tarlac, and Liberal Party Rep. Oscar Rodriguez of Pampanga.