Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Cooperatives are recognized as essential drivers of growth for farmers, 
consumers, workers, and people’s organizations. As instruments of equity, social 
justice, and economic development, cooperatives enable entrepreneurship, 
community development, and social cohesion to its members. As of 2018, there are 
18,065 registered cooperatives in the Philippines with 10.7 million members that 
account to almost 10% of the country’s population. Cooperatives also contribute to 
ensuring employment with 580,800 direct and 1.9 million indirect employees.1 
With the onslaught of the COVID-19 pandemic, it is high time that the State 
maximize all available economic and social platforms to empower communities 
through adequate financial support. This includes ensuring annual budget 
appropriation of local government units (LGUs) to cooperatives to further develop 
skills, training, and income of cooperative members. In line with this, Republic Act No. 
11364: Cooperative Development Authority Charter of 2019 and Republic Act No. 
11535 or Local Cooperatives Development Officer Act were enacted as recognition to 
the vital role of the State to protect and promote the rights of our cooperatives. 
Taking these into consideration, this bill aims to establish a Local Cooperative 
Development Fund (LCDF) and authorize local government units to appropriate at 
least 2% of their Internal Revenue Allocations (IRA) or 2% of their funds for local 
development projects to cooperative development in their jurisdictions. Through this, 
we look forward to further empower our cooperatives and attract more citizens to 
organize and uphold the principles of cooperativism. 
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The immediate passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT  
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT FUND, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. – This Act shall be known as the "Local Cooperatives 
Development Fund Act." 
Sec. 2. Declaration of Policy. – The State recognized the roles of cooperatives as 
an instrument for economic development, social justice, and equity. 
The State guaranteed that the rights of the cooperatives, anchored upon 
internationally accepted principles and practices, shall be respected, promoted, and 
fulfilled. 
The State mandates national government agencies and local government 
authorities to promote the growth and expansion of cooperatives, provide resources 
and mechanisms to strengthen the cooperatives movement, enable policies and 
programs to transform cooperatives as a viable, responsive, and resilient economic 
enterprise, and facilitate partnerships with other national and local stakeholders. 
The State, except as provided in this Act, shall maintain the principles of 
noninterference in the development and management of cooperatives and guarantee 
that the cooperatives shall be free from conditions that infringe upon its objectives and 
characteristics. 
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Sec. 3. Creation of Local Cooperatives Development Fund. – The Local 
Cooperatives Development Fund, herein referred to as LCDF, is hereby created to be 
managed and administered by the provincial, city, and municipal local government 
units, to support local cooperatives development in their jurisdictions. 
 
Sec. 4. Funding Source. – Provincial, city, and municipal local government units are 
hereby mandated to appropriate at least two percent (2%) of their Internal Revenue 
Allocations (IRA) for programs, projects, and activities for local cooperatives 
development. Provided that provincial, city, and municipal local government units 
belonging to fourth to sixth income classification, may opt to allocate at least two 
percent (2%) of their funds for local development projects as their LCDF. Provided 
further, the local government units belonging to fourth to sixth income classification 
shall commit to progressively realize this mandate within the next five years upon 
effectivity of this Act. 
 
Sec. 5. Use of Funds. – The LCDF shall primarily be used to support and fund 
programs, project, and activities directed towards: 
1. Formulation and implementation of a participatory Local Cooperatives 
Development Plan and localized special programs deemed as priorities of the 
local cooperatives. 
2. Provision of technical guidance, financial assistance, and other services to 
local cooperatives. 
3. Promotion, organization, and mobilization of local cooperatives as a viable and 
responsive social and economic development enterprise and to strengthen the 
cooperatives movement. 
4. Provision of capacity development and capacity-building initiatives and 
activities for local cooperatives. 
5. Support the plans, programs, and activities of the local cooperatives' 
development councils, the local cooperatives development officers, local 
federation of cooperatives, and local cooperative union in line with its 
mandates under existing laws. 
 
 
Sec. 6. Implementing Rules and Regulations. – The Cooperatives Development 
Authority and the Department of Interior Local Government shall, in consultation with 


 
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the cooperative sector and concerned leagues of local governments, formulate, and 
disseminate the IRR within ninety (90) days since the effectivity of this Act. 
 
Sec. 7. Congressional Oversight. – Upon the effectivity of this Act, the Joint 
Congressional Committee on Cooperatives (JCOCC), created under Republic Act No. 
9520, 
shall 
review, 
and 
monitor 
the 
implementation 
of 
this 
Act. 
 
Sec. 8. Repealing Clause – All laws, decrees, executive orders, rules and regulations, 
issuances, or parts thereof inconsistent with this Act are hereby repealed or amended 
accordingly. 
 
Sec. 9. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or a newspaper of general circulation. 
 
Approved,