Republic of the Philippines

House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2433

HOUSE BILL NO.

Introduced by Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

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 selfreliance 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 eamestly sought

HON. SABINIANO S. CANAMA

COOP NATCCO PARTY-LIST


Republic of the Philippines

House of Representatives
Quezon City

EIGTHTEENT CONGRESS,
First Regular Session

HOUSE BILLNO___2439

Introduced by Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

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 Developments 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,

HON. SABINIANO S. CANAMA

COOP NATQCO PARTY-LIST