" 
" 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. __ 
1_3_5_ 
~ttUttr 
'~lfI~r GI t~. $m,t.,.,'; v. 
'13 
JUL -1 
P 1 :58 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The spirit of cooperativism runs contrary to any prolonged and extended discord 
within its ranks, As such, an efficient mechanism for settling disputes within and 
between cooperatives is necessary, The Philippine Cooperative Code of 2008 institutes 
arbitration at the level of the Cooperative Development Authority (CDA) as a dispute 
resolution mechanism thereby ensuring a quick process and a final and binding award. 
The method of arbitration implemented under the Cooperative Code is in 
accordance with the Alternative Dispute Resolution Act of 2004. However, unlike the 
ADR Act where arbitral awards are final, executory, and non-appealable, there is an 
express provision in the Cooperative Code allowing the appeal of an arbitral award 
befpre the Office of the President. This provision prolongs the process of resolution and, 
as such, runs contrary to both the spirit of cooperativism and the goals of arbitration as 
a method of dispute resolution. 
The measure proposes the deletion of the appeal process to the Office of the 
Pr~!'!ig~nt, Thi!'! §m~m:lm~nt will not in ~ny W§y pr~jygic,;~ th~ right!'! gf th~ gi!'!PYt§nt§ 
because under the ADR Act there is a provision as to the method and grounds for how 
an arbitral award may be vacated. It should also be noted that the arbitral award at the 
aDA level shall be given great weight considering that the voluntary arbiters are not 
only the persons familiar with the dispute but they are also the experts in the field of 
cooperatives. It is these experts who are equipped to resolve disputes in a manner that 
will safeguard both the cooperatives' present concern and their long-term interests. 
Finally, the proposed amendment is not contrary to the Chief Executive's power 
of supervision and control over the CDA. Arbitration and the supervision of voluntary 
arbiters at the CDA level is not one of the main powers, functions, and responsibilities of 
the COA under its Charter. This function is only upon request of affected cooperatives 
and provided under the Cooperative Code - not under the CDA Charter. Thus the Office 
of the President's power of supervision and control over the CDA's main duties, as 
defined under its Charter, is not diminished by this proposed measure. 
Accordingly, passage of this measure is urgently sought. 


" 
..ienail' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
Ittt.; •• f tlj.1[;m,t.o¥ " 
, ", 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -1 P 1 :58 
SENATE 
Senate Bill No. 
135 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
I 
AN ACT 
AMENDING ARTICLE 137 OF REPUBLIC ACT NO. 9520 OTHERWISE KNOWN AS 
"AN ACT AMENDING THE COOPERATIVE CODE OF THE PHiliPPINES TO BE 
KNOWN AS THE 'PHILIPPINE COOPERATIVE CODE OF 2008" 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Article 137 of Republic Act No. 9520 otherwise known as " An Act 
Amending the Cooperative Code of the Philippines to be known as the Philippine 
Cooperative Code of 2008" is hereby amended to read as follows: 
"ART. 137. 
Settlement of Disputes, 
Conciliation, 
and 
Mediation 
Proceedings. -
Xxx 
"The jurisdiction of the voluntary arbitrators shall be exclusive and original 
and their decisions [shall be appealable to the Office of the PreSident.] 
SHALL BE IMMEDIATELY FINAL AND EXECUTORY. The Authority 
shall issue and adapt the proper rules of praeedure gaverningari)itratian 
as the primary and exclusive mode for dispute resolution in accordance 
with the Alternative Dispute Resolution Act of 2004. 
"For this purpose, the Authority shall constitute a list of qualified voluntary 
arbitrators. " 
§I:C. 2. The Cooper;:~tive Development Authority §hall formulate the ne~§§ary, 
rules and regulations for the effective implementation of this Act. 
SEC. 3. If any provision or part of this Act shall be declared invalid or 
unconstitutional, the remaining parts or provisions not affected shall remain in full force 
and effect. 
I 
SEC.,~. 'All laws, decrees, executive orders, issuances, rules and regulations or 
parts thereo~ inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 


, 
) 
SEC. 5. This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,