j HOUSE OF REPRESENTATIVES:
RECEIVED

Republic of the Philippines
House of Representative;

Quezon City we S27 H
SEVENTEENTH CONGRESS or plac
First Regular Session {

REGISTRATION
BILLS AND INDEX SERVICE

* 566

HOUSE BILL NO.

Introduced by Hon. Sabiniano S. Canama
and Hon. Anthony M. Bravo
COOP-NATCCO PARTYLIST

EXPLANATORY NOTE

It is widely acknowledged that cooperatives play a crucial role in agrarian
reform and rural development. ‘The Land Bank of the Philippines (LBP), which was
originally created to support the agrarian reform program, has recognized this and has
given prime importance to cooperatives in its effort to support agrarian reform and
rural development.

However, while the New Cooperative Code of the Philippines (RA 9520) has a
chapter containing special provisions relating to agrarian reform cooperatives (Chapter
XI), Republic Act No. 3844, otherwise known as the “Code of Agrarian Reform in the
Philippines” as amended by R.A. No. 7907, does not ensure the representation of
cooperatives in the Board of the LBP. Instead, Section 86 of the said law only provides
that the President of the Philippines shall appoint two (2) representatives of the private
sector of the Board of the Land Bank.

This deprives the cooperative sector of the chance to ensure that their voice will
be heard in the highest policy-making body of the Land Bank and also prevents the LBP
from fully tapping the rich experience of the cooperative movement.

This bill seeks to remedy this situation by providing for the representation of
cooperatives in the Board of the LBP.

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

HON. SABINIANQ/S. CANAMA


Republic of the Philippines

House of Representatives
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

' 566

HOUSE BILL NO.

Introduced by Hon. Sabiniano S. Canama
and Hon. Anthony M. Bravo
COOP-NATCCO PARTYLIST

AN ACT MANDATING THE REPRESENTATION OF COOPERATIVES IN THE
BOARD OF DIRECTORS OF THE LAND BANK OF THE PHILIPPI
AMENDING THEREFORE REPUBLIC ACT NUMBER 3844, AS AMENDED.

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

SECTION 1. Section 86 Republic Act No. 3844, otherwise known as the “Code of Agrarian

Reform in the Philippines”, as amended by R.A. No. 7907 is further amended to read as

follows:
SEC. 86. The Board of Directors; Membership; Per Diem. The affairs of and
business of the Bank shall be directed and its property managed and preserved by a
Board of Directors consisting of [nine (9)] ELEVEN (11) members to be composed
of the Secretary of Finance, as [Chairman] CHAIRPERSON, the President of the
Bank as [Vice-Chairman] VICE-CHAIRPERSON, the Secretary of Agrarian
Reform, the Secretary of Labor, and the Secretary of Agriculture as ex-officio
members. The President of the Philippines shall appoint two (2) members of the
Board who shall represent the agrarian reform beneficiaries: PROVIDED, THAT
AT LEAST ONE (1) OF THE SAID REPRESENTATIVES SHALL COME
FROM AN ORGANIZED AGRARIAN REFORM BENEFICIARIES
FARMERS COOPERATIVE, IF ANY, [and], ONE (1) MEMBER WHO SHALL
REPRESENT THE COOPERATIVE SECTROR. PROVIDED, THAT THE
REPRESENTATIVE SHALL COME FROM THE NOMINEES OF THE



NATIONAL COOPERATIVE FEDERATIONS AND/OR UNIONS DULY
REGISTERED WITH THE COOPERATIVES DEVELOPMENT
AUTHORITY, AND ONE (1) MEMBER WHO SHALL REPRESENT [shall be
elected from] the [shareholders] STAKEHOLDERS [coming from the public sector
to the extent that they may be entitled to two (2) seats in proportion to the outstanding
capital stock] FROM THE RURAL FINANCIAL SECTOR

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“No person shall be elected or appointed director of the Bank unless [he]
THAT PERSON is a natural bor citizen of the Philippines, not less that thirty-five
(35) years of age, of good moral character, and has attained proficiency, expertise and
recognize competence in one or more of the following: banking, finance, economics,
agriculture, agrarian reform, COOPERATIVES AND_ business management
Provided further, That no director, shareholder or employee of any bank shall be
eligible for election or appointment as member of the Board of Directors of the Bank
XXXX

SECTION 2. All members of the Board of Directors at the time of the approval and
effectivity of this Act shall continue in office until the end of their term of office as defined in
Section 86 of R.A. 3844 as amended. At the end of their term, the President shall appoint the
members of the Board in accordance with this Act.

SECTION 3. Repealing Clause ~ All laws, presidential decrees, executive orders in whole or
in part, including the rules and regulations promulgated thereunder inconsistent with the

provisions of this Act, are hereby amended, repealed or modified accordingly.

SECTION 4. EFFECTIVITY - This Act shall take effect fifteen (15) days following its

publication in the Official Gazette or in at least two (2) newspapers of general circulation,

Approved,