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On July 24, 2006, R.A. 9405: An act converting the Municipality of Bayugan into a component city to be known as the City of Bayugan was approved in Congress. One of the mandates of this law was the establishment of national offices in the newly created city, thus, pursuant to Section 50 of R.A. 9405, the Sangguniang Panglungsod approved Resolution No. 87 s. 2008: A resolution requesting for the creation of a separate city division. The Province of Agusan del Sur also approved Sangguniang Panlalawigan Resolution No. 1020 favorably endorsing the creation of Bayugan City Interim Division.

     This prompted the late Mayor Hon. Magdalena A. Asis, the mother of the current City Mayor Hon. Kim Lope A. Asis to construct a Division Office Building in the amount of Fourteen Million Pesos (Php 14,000,000.00). The status of the Cityhood, however, was questioned by the Supreme Court. Thus, implementation was postponed due to the flip flopping of decisions for the finalization of the legality of the charter.

    This dream of the late Hon. Mayor Magdalena A. Asis came to reality through unnumbered memorandum dated July 3, 2012 of Secretary Armin Luistro addressed to Atty. Alberto T. Escobarte, OIC Regional Director and Superintendent Crucita Z. Montejo-Taala of Agusan del Sur Division re: Establishment Of Bayugan City Division by virtue of Section 50 of RA 9405.

     The Division of Bayugan City was launched on August 6, 2012 with Teresita Perez-Tranquilan, CSEE as its first Officer In-Charge of the Office of the Schools Division Superintendent.