FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
s. B: No. _....c:1:....::O:....::5::..::1::.... 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
:>H,,' Tt' 
~a 
Of TH ',f\;aI.'TMN 
Cooperatives can playa significant role on economic development, especially 
in rural areas where the absence of large spending power does not attract private 
investment to harness local skills and resources that can uplift the local economy 
and living standards besides exporting produce to distant customer locations in 
cities. 
Cooperatives of farmers enable consolidation of fragmented land, investment 
in mechanization and irrigation, better bargaining power to buy seeds and fertilizers 
at a cheap price, arrange for proper common storage and greater bargaining power 
in selling farm produce to traders as also make banks comfortable in providing 
agricultural credit, thereby improving the productivity of agriculture and improving the 
income of farmer members of the cooperatives. 
Cooperatives of fishing! pisciculture, animal husbandry and dairy, residential 
housing, and other economic (lctivities can contribute similarly to economic 
development. 
Towards this end, being able to adjust with the needs of the times is of 
paramount importance, owing to ,the importance of cooperatives not only to the 
present needs of society but also il'1 the future needs of the same. 
Legislation has to be enacted if a better chance for both survival and growth is 
to be given to cooperatives. 
The approval of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
I 
SEi\ ',':1:: 
orr-ICE Of THe SH;;1t'fAff,' 
SENATE 
Senate Bill No. 1 051 
.' ~ECEIVED av: __ + 
1 
Introduced by Senator Manny Villar 
AN ACT 
REORGANIZING AND STRENGTHENING THE COOPERATIVE DEVELOPMENT 
AUTHORITY (CDA), AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 6939, 
REDEFINING ITS POWERS, FUNCTIONS AND OPERATIONS FOR THE 
EFFICIENT AND EFFECTIVE SUPERVISION, REGULATION, AND 
DEVELOPMENT OF COOPERATIVES IN THE PHILIPPINES, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. TITLE. -
THIS ACT SHALL BE KNOWN AS "THE REVISED 
CHARTER OF THE COOPER~TIVE DEVELOPMENT AUTHORITY OF THE 
PHILIPPINES." 
SEC. [1] 2. Declaration of Policy. It is hereby declared the policy of the State 
to promote the viability and growth of cooperatives as instruments of equity. social 
justice and economic development and create an agency, in fulfilment of the 
mandate in Section 15, Article XII of the Constitution. Toward this end, the State 
shall recognize cooperatives as associations organized for the economic and social 
betterment of their members, operating business enterprises based on mutual aid, 
and founded upon internationally accepted cooperative principles and practices. 
"In furtherance of this policy, the appropriate national economic planning 
agency shall include the promotion of growth and expansion of cooperatives as a 
major and indispensable component of national development plans. All departments, 
branches, subdivisions and instrumentalities of the Government shall promote the 
formation of cooperatives under their respective programs by providing them with 
appropriate and suitable incentives. 


"The State recognizes the cooperative sector as primarily responsible for the 
institutional development of coop,eratives. Accordingly, the State recognizes the 
rights of the cooperative sector to initiate and foster within its own ranks cooperative 
promotion, organization, training, information gathering, audit and support services, 
, 
with government assistance where necessary. 
"Government assistance to ~ooperatives shall be free from any restriction and 
conditionality that may in any manner infringe upon the objectives and character of 
cooperatives as provided in this Act. The State shall, except as provided in this Act, 
maintain the policy of non-interference in the management and operation of 
cooperatives. " 
SEC. [2] 3. Creation of the Cooperative Development Authority OF THE 
PHILIPPINES (CDAP). -
The 
Cooperative Development Authority OF THE 
PHILIPPINES (CDAP) is hereby. created to carry out the provisions of this Act. 
NOTWITHSTANDING ANY EXECUTIVE ORDER, MEMORANDUM CIRCULAR, 
OR LETTER OF INSTRUCTION, THE CDAP SHALL REMAIN UNDER THE 
ADMINISTRATIVE SUPERVISION OF THE OFFICE OF THE PRESIDENT. 
SEC. [3] 4. Powers, Fun'ctions and Responsibilities. -
The [Authority] 
CDAP shall have the following powers, functions and responsibilities: 
[(a) Formulate, adopt and implement integrated and comprehensive plans and 
programs on cooperative development consistent with the national policy on 
cooperatives and the overall socio~economic development plans of the Government; 
(b) Develop and conduct management and training programs upon request of 
cooperatives that will provide members of cooperatives with the entrepreneurial 
capabilities, managerial expertise, and technical skills required for the efficient 
operation of their cooperatives and inculcate in them the true spirit of cooperativism 
and provide, when necessary, technical and professional assistance to ensure the 
viability and growth of cooperatives with special concern for agrarian reform, fishery 
and economically depressed sectors; 
2 


(c) Support the voluntary organization and consensual development of 
activities that promote cooperative movements and provide assistance towards 
upgrading managerial and technical expertise upon request of the cooperatives 
concerned; 
(d) Coordinate the efforts ot'the local government units and the private sector 
in the promotion, organization, and development of cooperatives; 
(e) Register all cooperatives, and their federations and unions, including their 
division, merger, consolidation, dissolution or liquidation. It shall also register the 
transfer of all or substantially all of 'their assets and liabilities and such other matters 
as may be required by the Authority; 
(f) Require all cooperatives, their federations and unions to submit their 
annual financial statements, duly audited by a certified public accountant, and 
general information sheets; 
(g) Order the cancellation after due notice and hearing of the cooperative's 
certificate of registration for non-compliance with administrative requirements and in 
cases of voluntary dissolution; 
(h) Assist cooperatives in arranging for financial and other forms of assistance 
under such terms and conditions as are calculated to strengthen their viability and 
autonomy; 
(i) Establish extension offices as may be necessary and financially viable to 
implement this Act. Initially, there shall be extension offices in the cities of Oagupan, 
Manila, Naga, Iloilo, Cebu, Cagayan de Oro and Oavao; 
OJ Impose and collect reasonable fees and charges in connection with the 
registration of cooperatives; 
(k) Administer all grants and donations coursed through the Government for 
cooperative development, without prejudice to the right of cooperatives to directly 
3 


receive and administer such grants and donations upon agreement with the grantors 
and donors thereof; 
(I) Formulate and adopt continuing policy initiatives consultation with the 
cooperative sector through public hearings; 
(m) Adopt rules and regulations for the conduct of its internal operations; 
(n) Submit an annual report to the President and Congress on the state of the 
cooperative movement; and 
(0) Exercise such other functions as may be necessary to implement the 
provisions of cooperative laws and, in the performance thereof, the Authority may 
summarily punish for direct contempt any person guilty of misconduct in the 
presence of the Authority which seriously interrupts any hearing or inquiry with a fine 
of not more than five hundred pesos (P500.00) or imprisonment of not more than ten 
, 
(10) days, or both. Acts constituting indirect contempt as defined under Rule 71 of 
the Rules of Court shall be punished in accordance with the said Rule.] 
(A) 
EXERCISE 
SUPERVISION 
AND 
JURISDICTION 
OVER 
ALL 
COOPERATIVES, 
WHETHER 
PRIMARY, 
SECONDARY, 
TERTIARY, 
FEDERATIONS OR UNIONS; 
(B) REGISTER ALL COOPERATIVES, THEIR FEDERATIONS AND 
UNIONS, 
INCLUDING 
THEIR 
AMENDMENTS, 
DIVISION, 
MERGER, 
CONSOLIDATION, DISSOLUTION AND LIQUIDATION, AS WELL AS THE 
TRANSFER OF ALL OR SUBSTANTIALLY ALL OF THEIR ASSETS AND 
LIABILITIES, 
AND 
SUCH 
OTHER 
RELATED 
MATTERS 
AS 
MAY 
BE 
NECESSARY; 
(C) REQUIRE ALL COOPERATIVES TO SUBMIT THEIR ANNUAL 
REPORTS, 
AUDITED 
FINANCIAL 
STATEMENTS, 
AND 
SUCH 
OTHER 
DOCUMENTS IN SUCH FORMS AS MAY BE DESCRIBED BY THE CDAP; 
4 


(D) ORDER THE PAYMENT OF FINES, THE SUSPENSION, ANDIOR THE 
CANCELLATION 
OF 
THE 
CERTIFICATE 
OF 
REGISTRATION 
OF 
ANY 
, 
COOPERATIVE REGISTERED BY THE CDAP, OR SUSPEND ANY OFFICER OR 
MEMBER OF THE COOPERATIVE, AFTER DUE NOTICE AND HEARING, FOR 
ANY VIOLATION OF THE COOPERATIVE LAWS, THEIR IMPLEMENTING 
RULES AND REGULATIONS, THE ARTICLES ANDI OR BY-LAWS OF THE 
COOPERATIVE, OR ANY LAW; 
(E) CONDUCT, MOTU 'PROPRIO, AN 
ANNUAL INSPECTION OR 
EXAMINATION OF ANY COOPERATIVE IN ACCORDANCE WITH SUCH RULES 
AND REGULATIONS THAT MAY' BE PROMULGATED, OR CONDUCT SPECIAL 
INSPECTIONS OR EXAMINATION WHEN DEEMED NECESSARY TO PROTECT 
THE INTERESTS AND WELFARE' OF THE MEMBERS OF COOPERATIVES. 
(F) 
SUPERVISE 
THE 
COMPLIANCE 
OF 
ALL 
COOPERATIVES, 
INCLUDING THEIR FEDERATIONS OR UNIONS OF COOPERATIVES WITH 
LAWS, 
RULES 
AND 
REGULATIONS, 
AND 
OTHER 
ISSUANCES 
ADMINISTERED, ENFORCED AND IMPLEMENTED BY THE CDAP, AS WELL AS 
THE DULY APPROVED AND REGISTERED BY-LAWS OF THE COOPERATIVE; 
(G) 
ESTABLISH, 
IN 
CONSULTATION 
WITH 
THE 
COOPERATIVE 
MOVEMENT, 
AND 
PRESCRIBE 
REASONABLE 
RULES, 
REGULATIONS, 
GUIDELINES OR STANDARDS THAT WILL PROMOTE THE SAFETY AND 
SOUNDNESS OF THE COOPERATIVES, AS WELL AS DETERMINE UNSAFE 
AND 
UNSOUND 
PRACTICES 
THAT 
SHOULD 
BE 
AVOIDED 
BY 
COOPERATIVES; 
(H) FORMULATE, ADOPT, AND IMPLEMENT INTEGRATED PLANS AND 
PROGRAMS ON COOPERATIVE DEVELOPMENT CONSISTENT WITH THE 
NATIONAL POLICY ON COOpERATIVES, INCLUDING SUCH PLANS AND 
PROGRAMS WITH SPECIAL FOCUS ON OVERSEAS FILIPINO WORKERS, THE 
RURAL AND MARGINALIZED FARM AND FISHERY WORKERS; 
5 


(I) DEVELOP SUCH TRAINING PROGRAMS AS ARE NECESSARY IN 
ORDER TO ENSURE THE DEVELOPMENT, VIABILITY AND GROWTH OF 
COOPERATIVES 
THAT 
WOULD 
PROVIDE 
THE 
MEMBERS 
OF 
THE 
COOPERATIVES 
WITH 
THE 
ENTREPRENEURIAL 
CAPABILITIES, 
MANAGERIAL EXPERTISE, AND TECHNICAL SKILLS REQUIRED FOR THE 
EFFICIENT OPERATION OF THEIR COOPERATIVES; 
(J) COORDINATE, SUPPORT AND ASSIST THE DEVELOPMENTAL 
EFFORTS OF GOVERNMENT AGENCIES, WHETHER NATIONAL OR LOCAL, 
THE COOPERATIVE MOVEMENT, AND THE PRIVATE SECTOR IN THE 
PROMOTION, ORGANIZATION,' AND DEVELOPMENT OF COOPERATIVES. 
, 
TOWARDS THIS END, ALL GOVERNMENT AGENCIES, SUBDIVISIONS, AND 
INSTRUMENTALITIES ARE HEREBY DIRECTED TO COORDINATE THEIR 
PROGRAMS AND PROJECTS ON COOPERATIVE DEVELOPMENT WITH THE 
CDAP; 
(K) HEAR AND DECIDE ALL DISPUTES BETWEEN AND AMONG 
MEMBERS, OFFICERS, AND DIR,ECTORS OF COOPERATIVES, AND BETWEEN 
AND AMONG COOPERATIVES, AFTER CONDUCTING MEDIATION AND 
CONCILIATION PROCEDURES, 'AND AFTER DUE NOTICE AND HEARING, IN 
ACCORDANCE WITH THE ALTERNATIVE DISPUTE RESOLUTION LAW; 
(L) IMPOSE AND COLLECT REASONABLE FEES, FINES OR CHARGES 
IN 
THE 
PERFORMANCE OF 
ITS REGISTRATION, 
REGULATORY AND 
SUPERVISORY FUNCTIONS; 
(M) CALL UPON, OR DEPUTIZE GOVERNMENT LAW ENFORCEMENT 
AGENCIES, LOCAL GOVERNMENT UNITS, OR COOPERATIVES, INCLUDING 
FEDERATIONS 
AND UNIONS, 
TO ASSIST IT IN ITS REGISTRATION, 
REGULATORY AND SUPERVISORY FUNCTIONS; 
(N) SUBMIT AN ANNUAL REPORT TO THE PRESIDENT AND THE 
CONGRESS ON THE STATE OF THE COOPERATIVE MOVEMENT; 
, 
6 


(0) ADOPT SUCH RULES AND REGULATIONS FOR THE CONDUCT OF 
ITS INTERNAL OPERATIONS; AND 
(P) EXERCISE SUCH OTHER POWERS AND FUNCTIONS AS MAY BE 
NECESSARY TO IMPLEMENT ,THE PROVISIONS OF THE COOPERATIVE 
LAWS, AND, IN THE PERFORMANCE THEREOF, THE CDAP MAY SUMMON 
WITNESSES, ORDER THE PRODUCTION OF DOCUMENTS AND RECORDS, 
AND MAY SUMMARILY PUNISH FOR DIRECT CONTEMPT ANY PERSON 
GUILTY 
OF 
MISCONDUCT 
IN 
THE 
PRESENCE 
OF 
THE 
CDAP 
BY 
IMPRISONMENT OF NOT MORE TEN (10) DAYS. ACTS CONSTITUTING 
INDIRECT CONTEMPT AS DEFINED UNDER RULE 71 OF THE 1997 RULES OF 
CIVIL PROCEDURE SHALL BE PUNISHED IN ACCORDANCE WITH SAID RULE. 
SEC. [4] 5. Governing Body. - The Authority shall be governed by a Board 
of [Administrators] GOVERNORS consisting of a Chairman and six (6) members to 
be appointed by the President, all of whom shall be chosen from among the 
nominees of the cooperative sector with two (2) representatives each from Luzon, 
Visayas and Mindanao, They shall serve for a term of six (6) years without 
reappointment; Provided, [That among those first appointed, the Chairman shall 
serve for a term of six (6) years, three (3) members to serve for a term of four (4) 
, 
years, and three (3) members to serve for a term of two (2) years; Provided, further, 
That there shall be four (4) ex officio members, one each from the: (a) Department of 
Agriculture, (b) Department of Transportation and Communications; (c) National 
Electrification Administration, and (d) Sugar Regulatory Administration. Said 
representation status for the agendes is on a non-voting basis and terminates one 
(1) year from the operation of the Authority, but said ex officio members shall not be 
holding any other board position' in any government entity, The Chairman and 
members 
shall 
serve 
on 
a. 
full-time 
basis,] 
THAT 
ONE 
OF 
THE 
REPRESENTATIVES SHALL COME FROM THE AUTONOMOUS REGION OF 
MUSLIM MINDANAO. ANY VAC~NCY IN THE BOARD SHALL BE FILLED BY 
7 


APPOINTMENT 
BY 
THE 
PRESIDENT 
IN 
ACCORDANCE 
WITH 
THE 
MEMBERSHIP ALLOCATION SET FORTH IN THIS SECTION; PROVIDED, THAT 
A MEMBER SO APPOINTED SHALL SERVE ONLY FOR THE UNEXPIRED 
TERM. 
SEC. [5] 6. Qualification~ of Members of the Governing Board. -
No 
person shall be appointed Chairman or member of the Board of [Administrators] 
GOVERNORS unless he possesse.s the following qualifications: 
(a) A natural born Filipino citizen of legal age; 
(b) A bachelor's degree in cooperatives, economics, finance, agriculture, 
fisheries, veterinary medicine, business, social science, law, management, or in 
similar fields of study and five (5) years of experience as an official or officer of a 
cooperatives, government agency, or non-govemment organ.ization engaged in 
cooperative development or, in the absence of a bachelor's degree, at least ten (10) 
'. 
years of experience in cooperatives either as an officer of a cooperative or a 
government agency or non-government organization engaged in cooperative 
development; and 
(c) Must be a resident of the region he represents for at least five (5) years. 
Any person appointed as Chairman or regular member of the Board of 
[Administrators] GOVERNORS shall divest himself of any direct or indirect pecuniary 
interest or dealings with cooperatives upon his appointment. 
SEC. 7. Board of [Administrators] Governors Meeting. - The Board of 
[Administrators] GOVERNORS shall meet at least once a month for the transaction 
of its regular business. Special meetings may be called by the Chairman or majority 
of the members to consider specific matters. A majority vote by the entire Board shall 
be required for a decision. All meetings of the Board shall be held at the head office 
in Manila or at any other place as may be determined by the Board. 
8 


[The Board of Administrators shall appoint an Executive Director who shall be 
the chief operating officer of the AiJthority whose compensation shall be fixed by the 
Board of Administrators.] 
SEC. 8. THE ADMIN/STRA TOR AND DEPUTY ADMIN/STRA TOR. - THE 
CHAIRMAN OF THE BOARD OF GOVERNORS SHALL ALSO SERVE AS THE 
CHIEF EXECUTIVE OFFICER. OF THE CDAP WITH THE RANK AND 
PRIVILEGES OF A DEPARTMENT SECRETARY. HEISHE SHALL SUPERVISE, 
DIRECT AND COORDINATE THE OVER-ALL OPERATIONS OF THE CDAP AND 
SHALL SUBMIT PERIODIC REPORTS AND OTHER SPECIAL REPORTS THAT 
MAY BE REQUIRED FROM THE CDAP. 
A DEPUTY ADMINISTRATOR WHO SHALL BE A CAREER OFFICER 
SHALL BE APPOINTED BY THE BOARD OF GOVERNORS AND SHALL ACT AS 
THE 
CHIEF 
OPERATING 
QFFICER. 
HE/SHE 
SHALL 
ASSIST 
THE 
ADMINISTRATOR IN THE PERFORMANCE OF HIS/HER FUNCTIONS. 
SEC. [7] 9. 
Organizatio~ of the Authority. -
The Authority shall be 
organized within one hundred twenty (120) days from the effectivity of this Act. THE 
CDAP SHALL ORGANIZE AND MAINTAIN REGIONAL OFFICES IN SUCH 
REGIONS AS MAY BE NECESSARY TO IMPLEMENT THE PROVISIONS OF THE 
COOPERATIVE LAWS. 
SEC. [8] 10. Mediation and Conciliation. - Upon request of either or both 
parties, the Authority shall mediate and conciliate disputes within a cooperative or 
between cooperatives IN ACCORDANCE WITH THE PROVISIONS OF THE 
COOPERATIVE CODE AND THE ALTERNATIVE DISPUTE RESOLUTION LAW; 
Provided, That if no mediation or conciliation succeeds within three (3) months from 
request thereof, a certificate of non-resolution shall be issued by the [commission] 
CDAP prior to the filing of the appropriate action before the proper courts. 
SEC. [9] 11. Power to Register Cooperatives. -
The power to register 
cooperatives shall be vested solely on the [Authority] CDAP. The functions of the 
9 


following departments and agencies relating to the registration of cooperatives as 
such are hereby transferred to the [Authority] CDAP: 
(a) the Department of Agriculture; 
(b) the Bureau of Agricultural Cooperatives Development; 
(c) the Department of Transportation and Communications; 
(d) the Sugar Regulatory Administration; 
(e) the National Electrification Administration; and 
(f) any other pertinent goverrtment agency. 
The Bureau of Agricultural Cooperatives Development created under 
Executive Order No. 116, series of 1987, is hereby abolished and its qualified 
employees are hereby absorbed· by the Cooperative Development Authority in 
accordance with its staffing pattern, subject to Civil Service rules and regulations and 
rules of the Office of Compensation and Position Classification; Provided, That the 
Regional Cooperative Development Assistance Offices of Regions IX and XII, 
created under Executive Order No. 634, are also hereby abolished and their 
employees shall be given preference for employment with the Cooperative 
Development Authority in accordance with its staffing pattern, subject to Civil Service 
rules and regulations; Provided, finally, That those who are not absorbed shall be 
given separation pay computed at one and one fourth (1 %) months salary for every 
year of service. Service of six (6) months or more shall be considered as one (1) 
year in computing the years of service for severance pay and, whenever applicable, 
other retirement benefits under exi~ting laws. 
SEC. [10] 12. Transfer of Funds and Programs. -
The Cooperative 
Development Loan Fund created under Presidential Decree No. 175, as amended, is 
hereby transferred from the Department of Agriculture to the Authority. 
10 


The function of the Fund for Management Training and Assistance Program 
granted to the Department of Agriculture by Presidential Decree No. 175, as 
amended, is likewise hereby transferred to the Authority. 
The Fund for Management Training and Assistance Program under 
Presidential Decree No. 175, as amended, is hereby converted into a fund for the 
development of cooperatives and may be used for such purpose upon the request of 
the cooperatives concerned; Provided. That duly registered cooperatives shall have 
the right to establish their own private training centers or federations for purposes of 
cooperative development. 
In addition, the Cooperative Marketing Project as created under loan 
agreements which are now managed by the Department of Agriculture is likewise 
hereby transferred to the Authority. 
SEC. [11] 13. Cooperatives in the Education System. -
The history, 
philosophy, principles and practiCes of cooperatives and their role as a factor in the 
national economy shall be disseminated both in formal and non-formal education. 
The role of non-government organizations, not registered as cooperatives but 
duly registered under Philippine. laws and engaged in cooperative promotion, 
organization, research and education, shall be recognized. The Authority may 
accredit 
such 
non-governmeni 
organizations 
as 
non-academic 
training 
organizations. The training courses offered by them may be eligible as credits for the 
purposes of academic, professional and career advancements of their trainees. 
Existing training centers for c,Ooperatives may qualify as non-government 
organizations under this Act. 
State colleges and universities shall provide technical assistance and 
guidance to cooperatives in the communities wherein they operate, upon request. 
SEC. [12] 14. Cooperatives in the Banking System. - The promotion and 
development of cooperative banks as part of the Philippine banking system shall be 
11 


a major concern of the [Authority] CDAP which shall undertake the necessary 
program towards this end TO PURSUE THIS in collaboration with the [Central Bank 
of the Philippines] BANGKO SENTRAL NG PILIPINAS (BSP) and the cooperative 
sector concerned. 
SEC. [13] 15. Rule-Making Authority. -
The [Authority1 CDAP is hereby 
authorized to promulgate, after que public hearing [and upon approval of the 
President], such rules and regulations as may be necessary to implement the 
provisions of this Act. Such implementing rules and regulations shall take effect 
within fifteen (15) days after publication thereof in the Official Gazette or in two (2) 
newspapers of general circulation. All subsequent amendments to the implementing 
rules and regulations shall undergo the same process. 
SEC. [14] 16. Prohibitions. - No organization shall be allowed to use the title 
"cooperative" in its name unless it follows all generally accepted cooperative 
principles, applicable cooperative laws, and is duly registered under this Act; 
Provided, That organizations which have used the word "cooperative" as part of their 
nomenclature but which do not qualify as cooperatives under the provisions of this 
Act shall have [three (3)1 TWO (2) years within which to qualify and to register with 
the Authority. If at the end of the three-year period provided herein, the said 
organizations still do not qualify, it shall be unlawful for the organizations to continue 
using the word "cooperative" in their names. 
SEC. [15]. 17. Information Campaign. -
The Cooperative Development 
Authority is mandated to conduct a six-months information campaign on the 
provisions of this Act, beginning three (3) months from the effectivity of this Act. 
SEC. [16]. 18. Appropriations. -
The funds needed to carry out the 
provisions of this Act shall be charged to the appropriations of the [Bureau of 
Agricultural Cooperatives Development and the Regional Cooperative Development 
Assistance Offices of Regions IX :and XII under the current General Appropriations 
Act in addition to the appropriat!ons' of other departments/agencies/funds whose 
12 


functions/programs are transferred to the Authority; Provided, That in its initial year 
of operations, an additional amount of not exceeding sixty million pesos 
(P60,OOO,OOO.OO) may be requested and drawn by the Authority from the Contingent 
Fund of the President. Thereafter, such sums as may be necessary for its continued 
implementation shall be included in the annual General Appropriations Act.] CDAP. 
IN ORDER TO SUSTAIN THE PROGRAMS AND PROJECTS OF THE 
GOVERNMENT, AN AMOUNT EQUIVALENT TO TWO PERCENT (2%) OF THE 
EXPANDED VALUE ADDED TAX FOR THE PREVIOUS YEAR SHALL BE 
ALLOCATED ANNUALLY FOR, DEVELOPMENT OF THE COOPERATIVE 
MOVEMENT IN ADDITION TO THE CDAP'S ANNUAL APPROPRIATIONS. 
SEC. [17]19. Transitory Provisions. - [All cooperatives registered under 
Presidential Decree Nos. 175 and 775, and Executive Order No. 398 shall be 
deemed registered with the Cooperative Development Authority; Provided, however, 
That they shall submit to the nearest Cooperative Development Authority office their 
certificates of registration, copies of their articles of incorporation and by-laws, and 
their latest duly audited financial statements within one (1) year from the effectivity of 
this Act, otherwise, their registration shall be cancelled; Provided, further, That 
cooperatives created under Presidential Decree No. 269, as amended by 
Presidential Decree No. 1465, shall be given three (3) years within which to qualify 
and register with the Authority; Provided, finally, That after these cooperatives shall 
have qualified and registered, the provisions of Sections 3 and 5 of Presidential 
Decree No. 1645 shall no longer be applicable to the said cooperatives.] ALL 
COOPERATIVES;. PREVibuSL Y REGISTERED UNDER THE COOPERATIVE 
t ,,', 
•• " 
' 
CODE OF THE 'PHILIPPINES ARE HEREBY DEEMED REGISTERED; PROVIDED, 
THAT SUCH COOPERATIVES SHALL SUBMIT TO THE NEAREST OFFICE OF 
THE CDAP THEIR CERTIFICATES OF REGISTRATION, AND A COPY OF THEIR 
~ . 
. 
. 
LATEST REGISTERED· ARTICLES 
OF 
COOPERATIoN, 
BY-LAWS, 
AND 
AUDITED FINANCIAL STATEMENT. 
13 


ALL ELECTRIC COOPERATIVES WHO HAVE NOT REGISTERED WITH 
THE CDAP AT THE ENACTMENT OF THIS ACT ARE GIVEN A PERIOD OF TWO 
(2) YEARS WITHIN WHICH TO REGISTER WITH THE CDAP IN ACCORDANCE 
WITH THE RULES TO BE PROMULGATED BY THE CDAP. FAILING THIS, SUCH 
ELECTRIC COOPERATIVES NOT REGISTERED WITH THE CDAP SHALL BE 
PROHIBITED 
FROM 
USING . THE 
TERM 
"COOPERATIVE" 
IN 
THEIR 
REGISTERED AND BUSINESS NAME. 
SEC. [18] 20. Repeals. - All [acts} LAWS, general orders, executive orders, 
letters of implementation, letters of instruction, regulations or circulars, or parts 
thereof, inconsistent with any of the provisions of this Act, MORE PARTICULARLY 
SECTION 13 OF PRESIDENTIAL DECREE NO. 269, AS AMENDED, AND 
EXECUTIVE ORDER NO. 898 ARE HEREBY REPEALED OR MODIFIED 
ACCORDINGLY. IN CASE OF DOUBT, THE SAME SHALL BE RESOLVED IN 
FAVOR OF THE COOPERATIVES. 
SEC. [19] 21. Separability. - If for any cause any part of this Act is declared 
unconstitutional, the rest of the provisions shall remain in force and effect. 
SEC. [20] 22. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a NATIONAL newspaper of general 
circulation. 
Approved, 
14