Republic Of The Philippines
House Of Representative
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6380

Introduced by Representative Hon. Rico B. Geron Hon. Anthony M. Bravo
Hon. Sabiniano “Ben” S. Canama

EXPLANATORY NOTE

This bill seeks to require each local government unit (LGU) to allot to
cooperatives two percent (2%) of the appropriations for local development project
provided under Section 287 of Republic Act (RA) No. 7160, otherwise known as
the “Local Government Code of 1991.”

RA 6938, otherwise known as the “Cooperative Code of the Philippines” was
approved on March 10, 1990. RA 6938 was amended by RA 9520, otherwise
known as the “Philippine Cooperative Code of 2008” on February 17,
2009.Through RA 9520, it was declared the policy of the State to foster the
creation and growth of cooperatives as practical vehicles for promoting self-
reliance and that government shall create an atmosphere that is conducive to the
growth and development of cooperatives.

A cooperative is a duly registered association of persons with a common bond
of interest. People voluntarily join together to achieve a lawful common social or
economic end by making equitable contributions to the capital required and
accepting a fair share of the risks and benefits of the undertaking in accordance
with the universally accepted cooperative principles. That common bond of
interest is the very impetus for people to find a rallying point, a motivation to take
the risk because of the belief that cooperatives provide the answer to their quest for
a better life.

At present, there are 24,652 cooperatives registered in the Philippines based
on a December 2014 report from the Cooperatives Development Authority. Thus,
there is still much room for growth if only people would recognize the potential of
cooperatives.


Section 287 of the Local Government Code of 1991 provides that each LGU
shall appropriate in its annual budget no less than twenty percent (20%) of its
annual internal revenue allotment for development projects. This proposed
measure intends to require each LGU to allot cooperatives two percent (2%) of its
appropriation for development projects. The cooperatives will then use this funding
to implement its plans, programs, activities and services for the benefit of the LGU
and its constituents. This support for the growth of cooperatives is in recognition of
the importance of cooperatives as practical vehicles for promoting self-reliance and
empowering people towards the attainment of economic development and social
justice. This is also the LGU’s way of supporting cooperatives to become
instruments of sustainable social and economic change in an increasingly
modernized world.

In order for cooperatives to stay viable and their growth promoted, it requires
outmost support from the government. This bill is a positive expression of the
appreciation for the existence, importance and contribution of cooperatives to
society.

In view of the foregoing, approval of this bill is earnestly sought.

HON. ANTHONY M. BRAVO, Ph. D.

HON. SABINIANO “BEN” S. CANAMA


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6380

Introduced by Representative
Hon. Rico B. Geron
Hon. Anthony M. Bravo
Hon. Sabiniano “Ben” S. Canama

AN ACT
MANDATING EACH LOCAL GOVERNMENT UNIT TO ALLOT TO
COOPERATIVES TWO PERCENT (2%) OF ITS APPROPRIATIONS
FOR LOCAL DEVELOPMENT PROJECTS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE
“LOCAL GOVERNMENT CODE OF 1991”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 287 of Republic Act No. 7160 is hereby amended to
read as follows:

“SEC. 287. Local Development Projects. — Each local
government unit shall appropriate in its annual budget no less than
twenty percent (20%) of its annual internal revenue allotment for
development projects[.];PROVIDED, THAT TWO PERCENT (2%)

OF THIS APPROPRIATION SHALL BE ALLOTED TO
COOPERATIVES FOR THE IMPLEMENTATION OF ITS

PLANS,PROGRAMS, ACTIVITIES AND SERVICES .Copies of


the development plans of local government units shall be furnished

the Department of Interior and Local Government.”

SEC. 2. Implementing Rules and Regulations. — Within sixty (60) days
from the effectivity of this Act, the Secretary of the Interior and Local
Government shall issue the necessary implementing rules and regulations to carry
out the provisions of this Act.

SEC. 3. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,