SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SENATE BILL NO. 2134 
'14 
FEB 20 P5 :40 
Prepared by the Committees on Cooperatives, Civil Service and Government 
Reorganization, and Finance with Sens. Lapid and Marcos and the members of 
the Committees as authors thereof 
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AN ACT 
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REORGANIZING THE COOPERATIVE DEVELOPMENT AUTHORITY, REPEALING FOR THE 
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PURPOSE REPUBLIC ACT NO. 6939, CREATING THE COOPERATIVE DEVELOPMENT 
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AUTHORITY 
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Be it enacted by the ,Senate and House of Representatives of the Philippines in 
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Congress assembled: 
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SECTION 1. Short Title. -
This Act shall be known as the "Cooperative 
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Development Authority Chart.er Act." 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
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to promote the viability and growth of cooperatives as instruments of equity, 
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social justice and economic development and to create an agency, in fulfillment 
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of the mandate in Section 15, Article XII of the 1987 Constitution. 
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Toward this end, the State shall recognize cooperatives as associations 
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organized for the economic and social betterment of their members, operating 
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business enterprises based on mutual aid, and founded upon internationally 
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occepted co.operative principles ond practices. The State recognizes the 
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Cooperative Development Authority as primarily responsible for the institutional 
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development of cooperatives. Accordingly, the state recognizes the rights of the 
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cooperatives to initiate and foster within their own ranks cooperative promotion, 
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organization, training, information gathering, audit and support services, with 
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government assistance where necessary. 
In furtherance of this policy, the 
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National Economic and Development Authority (NEDA) shall include the 
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promotion of growth and expansion of cooperatives as major and indispensable 
components of national development plans. 
The government and all its branches, subdivisions, instrumentalities and 
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agencies shall ensure the provision of technical guidance, financial assistance 
and other services to enable the cooperatives to develop into viable and 
responsive economic enterprises towards a strong cooperative movement. free 
from any condition which infringes upon the objectives and character of 
cooperatives. The State shalL except as provided in this Act, maintain the policy 
of non-interference in the management and operation of cooperatives. 
SEC. 
3. 
Cooperative 
Development Authority. 
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The 
Cooperative 
Development Authority (CDA) created under Republic Act No. 6939, hereinatler 
referred to as the Authority, is hereby reorganized to carry out the provisions of this 
Act and those of Republic Act No. 9520, otherwise known as the "Philippine 
Cooperative Code of 2008". 
The Authority shall have its principal place of business in Metro Manila, and 
s'hall maintain offices and branches in such other places as the proper conduct of 
its business shall require. 
The Authority shall be an agency attached to the Office of the President 
for policy and program coordination. 
SEC.4. Powers, Functions and Responsibilities. - The Authority shall have the 
following powers and functions: 
a) 
Exercise supervision and jurisdiction over all types and categories of 
cooperatives registered with the Authority; 
b) 
Register all types of cooperatives including amendments to its by-
laws; 
division, merger, consolidation, dissolution and liquidation of 
cooperatives as well as the transfer of all or substantially all of their 
assets and liabilities; 
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c) 
Order the suspension, cancellation or revocation of the Certificate of 
Registration after due notice and hearing pursuant to Articles 67 & 68 
of the Philippine Cooperative Code of 2008 and the by-laws of fhe 
cooperative; 
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Formulate, adopt, and implement integrated plans and programs on 
cooperative development consistent with the national policy on 
. coC?peratives, and establishan integrated framework on cooperative 
development for all govemment agencies; 
Formulate, adopt and implement, in a manner consistent with Sec. 
16 hereof, a standard of training for cooperative officers or members 
which shall focus on basic cooperative principles and values, 
business management and conflict management; 
Develop and formulate, in consultation with the cooperative sector, 
appropriate regulations, standards, rules, orders, guidelines and/or 
circulars to implement the Cooperative Code of 2008 to ensure the 
sound operation of cooperatives; 
Establish 
a 
consultative mechanism in 
order to provide the 
cooperative sector a system for maximum participation on matters of 
government plans, projects and policies related to cooperatives. 
The cooperative sector shall undertake the organization/streamlining 
or rationalization of an apex body, representing all types and 
categories of cooperatives under the Philippine Cooperative Code 
of 2008, which shall function as the overall consultative dnd 
coordinating body with the Authority. 
The Authority, in consultation with the cooperative sector, shall 
promulgate the guidelines for the implementation of the consultative 
mechanism; 
Establish and maintain a continuing educational and capability-
building program for the authority; 
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Require 
the 
submission 
of annual reports, 
audited 
financial 
statements, and such reports in compliance with the Philippine 
Cooperative Code of 2008, in such forms as may be prescribed by 
the Authority; 
Conduct regular inspection or examination of a cooperative in 
accordance with the rules and regulations promulgated by the 
Authority and, when deemed necessary, conduct a 
special 
inspection and investigation to protect the interest and welfare of 
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the members of cooperatives. The Authority, however, may delegate 
this power to accredited federations and unions in accordance with 
the Philippine Cooperative Code of 2008 and the implementing rules 
and regulations issued for this purpose; 
Compel the cooperative 
to call a general assembly under the 
supervision of the Authority, subject to the criteria or condition/s to be 
defined in the implementing rules and regulations issued for this 
purpose. 
In case a cooperative fails to call and conduct a general assembly, 
the Authority shall, on its own, call a general assembly meeting to 
address and settle issues. The Authority may enlist the aid and support 
. of .and/or deputize any and all, enforcement agencies of the 
govemment and federations and unions for the implementation of its 
orders; 
Impose sanctions for. non-compliance with lawful orders, rules and 
regulations of the Authority, including the Articles of Cooperation and 
By-Laws of the cooperative subject to conditions as defined in the 
implementing rules and regulations of this Act; 
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Collect reasonable fees, fines or charges in the performance of its 
registration and regulatory functions; 
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Establish offices in areas as may be determined by the Authority; 
Adopt and implement a dispute resolution mechanism that will settle 
conflicts between and among members, officers, and directors of 
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cooperatives, 
and 
between 
and 
among 
cooperatives 
in 
accordance with Article 137 of Republic Act 9520, the Philippine 
Cooperative Code of 2008, and Republic Act No. 9285, the 
Alternative Dispute Resolution Act of 2004; 
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Implement and enforce its decision with the assistance of deputiz,ed 
law enforcement agencies or the local government unit concerned 
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as may be necessary; and 
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Exercise such other powers and functions as may be necessary to 
implement the provisions of the Philippine Cooperative Code of 2008. 
SEC. 5. 
Board of Directors. - The Authority shall have a Board of Directors 
which shall be the collegial policy-making body of the Authority. It shafl be 
composed of the Chairperson and six (6) members of the Board of Directors, all of 
whom shall be chosen from among the nominees of the cooperative sector, with 
two (2) representatives each from the regions of Luzon, Visayas and Mindanao. 
They shall be appointed by the President of the Philippines and shall serve for a 
term of six (6) years without reappointment. Except for the Chairperson, the 
Members of the Board shall serve on a part-time basis only and shall be entitled to 
honoraria and actual travel expenses. 
SEC. 6. 
Powets and Functions of the Board. - The Board, as the policy 
making body, 'shall have the following powers and functions: 
a) 
Formulate policies, rules and regulations consistent with the provisions 
of the Philippine Cooper.ative Code of 2008 and this Act; 
b) 
Adopt implementing rules and regulations for the conduct of the 
internal operations of the Authority; 
c) 
Organize the operating structure and functions of the Authority. No 
changes in the approved organizational structure shall be effected 
without the approval of the Board; and 
d) 
Approve and adopt the annual budget of the Authority. 
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SEC. 7. Qualifications of the Chairperson .and the Members of the Board. _ 
The Chairperson and the Members of the Board must possess the following 
qualifications: 
a) 
A natural bom Filipino citizen; 
b) 
A holder of any bachelor's degree with five (5) years of experience 
as an officer of a cooperative, a government agency, or a non-
government organization engaged in cooperative development, or 
a person with at least seven (7) years of experience in cooperatives 
preferably with background in the areas of agriculture, finance, 
business ,and social 
science 
such 
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economics, 
sociology, 
management and law; and 
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The Chairperson should be a resident of the Philippines, while, the 
Members of the Board must be bona fide residents of the regions 
they represent for at least five (5) years prior to appointment. 
Any person appointed as Chairperson or Member of the Board shall. 
upon appointment. divest himself of any direct or indirect pecuniary 
interest or dealings with any cooperative. 
SEC. 8. 
Removal from Office. - The Chairperson and the Members of the 
Board may be removed from office for cause. 
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All vacancies in the Board shall be filled up for the unexpired term only: 
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Provided, That any person who shall be appointed in this manner shall not be 
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eligible for reappointment. 
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SEC. 9. Meetings of the Board. - The Board shall meet at least once a month 
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for the transaction of its regular business. 
Under exceptional circumstances, 
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special meetings may be called by the Chairperson or majority of the members 
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to discuss and decide urgent matters .. A majority vote by the entire Board of 
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Directors shall be required for a decision, The Chairperson shall only vote in case 
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of a tie. 
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The meeting shall be presided by the Chairperson. However, in the 
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absence of the Chairperson, the Board shall elect from among themselves an 
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acting presiding officer. 
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All regular and special meetings of the Board shall be held at the head 
office in Metro Manila or in any other' place as may be determined by the Board. 
SEC. 10. 
Office of the Administrator. -
The Chairperson shall be the 
Administrator of the Authority and shall have the rank and privileges of an 
Undersecretary. The Administrator shall execute and administer the policies, 
decisions, orders and resolutions approved by the Board and shall have the 
general executive direction and supervision of the work and operation of the 
Authority. 
Four (4) Deputy Administrators shall assist the Administrator who will be 
assigned to the following specific concerns: 
a. 
Support Services; 
b. 
Institutional Development; 
c. 
Legal Affairs & Registration; and 
d. 
Supervision, Examination and Field Operations. 
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SEC. 11. Powers and Functions of the Administrator. - The Administrator of 
the Authority shall have the following powers and functions: 
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a) 
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Prepare, 
consolidate 
and 
submit 
periodic 
reports 
for 
the 
consideration of the Board; 
Implement a human resource management system consistent with 
the Civil Service Code that will promote professionalism and 
excellence. in accordance with sound principles of management; 
Prepare the proposed annual and supplemental budgets of the 
Authority for the consideration and approval of the Board; 
Report to the President of the Philippines and Congress on fhe 
performance and accomplishment of the Authority on a periodic 
basis; 
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Represent the Authority in all undertakings where its presence is 
required; and 
Perforrn such other functions as rnay be required by law. 
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SEC. 12. 
Registration for Tax Exemption. - The Authority shall furnish the 
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Bureau of Internal Revenue (BIR), local governrnent units and other concerned 
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agencies a certified list of duly registered cooperatives for purposes of tax 
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exernptions. 
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The certificate of registration issued to a duly registered cooperative, as 
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validated in the certified list submitted by the Authority, shall ipso facto constitute 
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as the sole legal basis or requirement for the full enjoyment of the tax exemption 
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and other incentives granted under the Philippine Cooperative Code of 2008, 
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notwithstanding any provision of law, executive order, rule or regulation to the 
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contrary. 
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Any public official or employee who violates or in any manner circumvents 
this provision shall be dealt with in accordance with Article 140 of the Philippine 
Cooperative Code of 2008. 
SEC. 13. Prohibition. -
Except as provided for under Article 130 of the 
Philippine Cooperative Code of 2008, the use by any person or organization of 
the word "cooperative" in their business name, unless duly registered with fhe 
Authority, shall be prohibited and shall be penalized under Article 140 of the 
Philippine Cooperative Code of 2008. 
SEC. 14. Settlement of Disputes. - As far as practicable, disputes between 
and among rnembers, officers, and directors of cooperatives, and between and 
among cooperatives shail be settled in accordance with Article 137 of Republic 
Act 9520, the Philippine Cooperative Code of 2008, and Republic Act No. 9285, 
the Alternative Dispute Resolution Act of 2004. 
SEC. 15. Cooperative Officers Training Standards. -
The Authority, in 
coordination with the Developrnent Academy of the Philippines (DAP) and other 
higher learning and training institutions, and in consUltation with the cooperative 
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sector, shall formulate a standard of training requirements for cooperative officers 
and members: Provided, That the training requirements shall be optional for 
cooperative members. The Authority shall likewise formulate a system of 
recognition and accreditation of units or equivalent training that an officer has 
undertaken through formal or non-formal education. 
The Authority may accredit organizations other than cooperatives but duly 
registered under Philippine laws and engaged in cooperative promotion, 
organization, research and education, as non-academic training institutions. The 
training courses offered by them may be eligible as credits for purposes of 
academic, professional and career advancements of their trainees. 
Upon request of cooperatives, State colleges and universities (SUCs) snail 
provide technical assistance and guidance to cooperative] in the communities 
where they are located. The SUCs may tap the support and participation of 
unions and federations of cooperatives in the implementation of this provision. 
SEC. 16. Cooperativism in the Education System. - The history, philosophy, 
concepts, values, principles and practic'es of cooperatives and their role in nation 
building shall be disseminated both in formal and non-formal education. 
Notwithstanding existing .Iaws, 
memorandum orders and directives, 
cooperativism, as a tool for self-empowerment and nation building, shall be 
included in the curricula of senior students in all the secondary educational 
institutions. 
Cooperatives development and administration may be offered as a field of 
study in the baccalaureate, post baccalaureate or masteral programs in SUCs: 
Provided, That in cases where the SUCs do not offer a separate academic 
program in cooperatives development ahd administration, the SUCs shall be 
encouraged to include a 3-unit subject in the curricula of accountancy, 
agribusiness, 
agriculture, 
agricultural 
economics, 
business, 
community 
development, economics, 
education, forestry, social sciences, and other 
curricula that can be instrumental in the development of cooperatives. 
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SEC. 17. Cooperatives in the Agriculture Sector. -
The promotion and 
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development of agricultural cooperatives, in coordination with the Department 
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of Agriculture (DA) and the Department of Agrarian Reform (DAR), shall be a 
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major concern of the Authority to ensure food security and reduce rural poverty. 
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SEC. 18. 
Cooperatives in the Banking System. -
The promotion and 
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development of cooperative banks, os part of the banking system and of 
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financial servic~ cooperatives as defined in the Philippine Cooperative Code of 
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2008, shall be a major concern of the Authority which shall undertake the 
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necessary program towards this end in collaboration with the Bangko Sentrol ng 
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Pilipinos (BSP) and the cooperative sector concerned. 
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SEC. 19. Cooperatives Engaged in services Covered by Other Laws.-
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Registered cooperatives shall secure the necessary licenses, franchises, certificate 
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of authority and permits from other appropriate agencies with jurisdiction over 
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their activities, if required by other existing laws, rules and regulations. 
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SEC. 20. Reorganization of the Authority. - The Authority shall be reorganized 
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within one hundred tv-lenty (120) days from the effectivity of this Act. 
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SEC. 21. 
Transitory Provisions. -
Upon the effectivity of this Act, the 
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personnel of the Authority shall, unless removed for cause and after due process, 
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continue to perform their duties and responsibilities and shall receive their 
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corresponding salaries and benefits. 
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In the reorganization and staffing of the Authority, these personnel shall be 
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given preference subject to civil service rules and regulations and the rules of the 
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Classification Compensation Bureau of the Department of Budget and 
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Management (DBM): Provided, That those who shall not be absorbed by the 
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organization shall be given separation/severance pay in accordance with 
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existing rules or regulations, 
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The incuhlbent Chairperson arid Administrators shall continue to serve and 
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act os Chairperson and Members of the Board up to the end of their term under 
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Republic Act No. 6939. 
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SEC. 22. 
APpro~riations. - The amount necessary for the implementation of 
this Act shall be includ~d in the annual General Appropriations Act. 
SEC. 23. TranSferi of Funds and Programs. - The Cooperative Development 
Loan Fund and the ~und for Management Training and Assistance Program 
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created under Preside'ntial Decree No. 175, as amended, and the Cooperative 
Marketing Project cre~ted under loan agreements, all granted to the DA, 
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hereby transferred to the Authority which shall be used for the development and 
strengthening of cQoPEOratives. 
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SEC. 24. 
JOini Congressional' Oversight Committee on Cooperatives 
(JCOCC). - The Joint , ongressional Oversight Committee created under Article 
138 of the Philippine tooperative Code of 2008 shall review and monitor the 
implementation of this ~ct. 
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SEC, 25. 
Imp/~menting Rules and Regulations. -
The Board shall, in 
conSUltation with the I cooperative sector and other concerned government 
agencies, formulate t~e implementing rules and regulations for the effective 
implementation of t~e provisions of this Act. The implementing rules and 
regulations shall take JJfect within fifteen (15) days after publication in the Official 
Gazette or in two 
(~) newspapers of general circulation. 
All subsequent 
amendments t? the iTPlementing rules and regulations shall also be published 
before taking effect. 
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SEC. 26. InformJtion Campaign. - The Authority is mandated to conduct a 
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massive information cdmpaign on the provisions of this Act upon its effectivity. 
SEC. 27. 
Repealing Clause. -
Republic Act No. 6939, creating the 
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Cooperative DeveloPlillent Authority, is hereby repealed. All other laws, decrees, 
executive orders, rules and regulations or parts thereof inconsistent with the 
provisions of this Act a~e hereby amended or modified accordingly. 
SEC. 28. separ~bility Clause. -
If for any cause, any part of this Act is 
declared un~onstitutional, the rest of the provisions shall remain in full force and 
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effect. 
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SEC. 29. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its complete publication in tile Official Gazette or in at least two (2) newspapers 
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of general circulation. 
Approved, 
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