Legal Basis and Revenue Qualification
- Executive Order No. 42 is issued “by operation of the provisions of Section 2 of Republic Act No. 1515.”
- The municipal districts are declared municipalities based on an earned-revenue qualification.
- Each covered municipal district must have realized an average annual revenue of more than four thousand pesos.
- The revenue basis covers the last four consecutive fiscal years ending June 30, 1962.
- The qualification is made effective through certification by the General Auditing Office.
- The declaration treats the qualified municipal districts as fifth class municipalities.
Policy of Municipal Reclassification
- The declared policy operation is to reclassify qualifying municipal districts as municipalities.
- The reclassification is anchored on measurable fiscal performance: average annual revenue of more than four thousand pesos.
- The effect is to convert the covered municipal districts into municipalities with the specified class designation.
- The intended governance transition preserves the continuity of local elective officials pending new elections.
Municipalities Declared (Named Districts)
- Agusan includes the municipal districts of Las Nieves and is declared a municipality.
- Bukidnon includes the municipal districts of Malitbog, Pangantocan, and is declared municipalities.
- Lanao del Sur includes the municipal districts of Bacolod Grande, Molundo, Balndong, Poon-a-Bayabao, Bayang, Pualas, Binidayan, Ramain, Bubong, Saguiaran, Butig, Taraka, Lumbatan, Tatarikan, Madamba, Tubaran, Marantao, Tugaya, and Masiu.
- La Union includes the municipal districts of Bagulin and Burgos.
- Mountain Province includes the municipal districts of Atok, Kibungan, Bakun, Lubuagan, Balbalan, Luna, Banaue, Mayoyao, Bauko, Natonin, Bayag, Pinukpuk, Besao, Potia, Bokod, Sabangan, Bontoc, Sablan, Buguias, Sadanga, Lagawe, Sagada, Conner, Tadian, Hungduan, Tanudan, Kabayan, Tinglayan, Kabugao, Tuba, Kapangan, Tublay, Kiangan.
- Each named municipal district is declared and considered a fifth class (equivalent to seventh class under Republic Act No. 2368) municipality beginning July 1, 1962.
Governing Officials During Transition
- The present elective municipal district officials continue as officials of the respective newly declared municipalities.
- The continuity of the officials remains in force until the new municipal officials are elected.
- The new officials are elected in the next general elections.
- The officials must qualify before assuming office.
- The transition rule applies to the officials of each municipal district newly declared under Executive Order No. 42.