FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
0 
SEP -3 ;[I 
:; 
OF THE PHILIPPINES 
Second Regular Session 
) 
S E N A T E  
/ 
Introduced by Senator Juan Miguel F. Zubiri 
EXPLANATORY NOTE 
The Cooperative Development Authority (CDA) was created through the enactment of 
R.A. 6939 to provide assistance and promote the viability and growth of cooperatives in 
the country. The cooperatives have grown into a very large sector that they now play a 
vital role as economic catalyst for the marginalized communities. 
Over the years, the cooperative sector has been at the forefront in leveraging the 
economic activities of ordinary citizens. In fact, it has generated full time and part-time 
employment for our people with 1.498 million jobs in 2004, 1.563 million jobs in 2005 or 
with an increase of about 65,215 over 2004 figures; and 1.636 million jobs as of 
December 31,2006 with an increase of 73,047 jobs over 2005. 
Despite its successes, many registered cooperatives have fallen by the wayside due to 
a lack of sufficient training in the management and operation of cooperatives, some due 
to a lack of proper values inherent in any cooperative undertaking, some due to simple 
mismanagement, and others - because they were organized for the wrong reasons. 
In view of the new dynamics necessary for the continued development of the 
cooperative sector, the CDA has to be strengthened and empowered not just as a 
supervisory and regulatory body but, more importantly, as a proactive agency that 
pursues the birth, continued growth and sustainability of cooperatives all over the 
Philippines. 
This proposed legislation, therefore, aims to amend the CDA Charter by redefining its 
powers, functions and operations for the efficient and effective promotion, supervision, 
regulation and development of cooperatives. 
This will likewise complement and 
reinforce the amendments to the Cooperative Code. 
For these reasons, the passage of this bill is earnestly sought. 


:, 
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C$.6-<,,*. ...: i t : <  :>i.*J$k.i&J{f 
FOURTEENTH CONGRESS OF THE REPUBLIC) 
B 
SEI' -3 
1'4 
, ~ >  
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
S E N A T E  
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Introduced by Senator Juan Miguel F. Zubiri 
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 COOPERATIVE DEVELOPMENT AUTHORITY OF THE 
PHIL I P P I N ES . " 
SEC. [I] 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 fulfillment of the mandate 
in Section 15, Article XI1 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 cooperatives. 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 
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government assistance where necessary. 


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Government assistance to cooperatives 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, Functions 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; 
(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 of 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; 
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(9) 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 Dagupan, 
Manila, Naga, Iloilo, Cebu, Cagayan de Oro and Davao; 
(j) 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 
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 (IO) 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) 
SUPERVISE 
AND 
EXERCISE 
JURISDICTION 
OVER 
ALL 
COOPERATIVES, WHETHER PRIMARY, SECONDARY, TERTIARY, FEDERATIONS 
OR UNIONS; 
(B) SOLELY AND EXCLUSIVELY REGISTER ALL COOPERATIVES, THEIR 
FEDERATIONS AND UNIONS, INCLUDING AMENDMENTS TO THEIR ARTICLES 
OF COOPERATION AND BY-LAWS, DIVISION, MERGER, CONSOLIDATION, 
DISSOLUTION, LIQUIDATION, TRANSFER OF ALL OR SUBSTANTIALLY ALL OF 
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THEIR ASSETS AND LIABILITIES, AND SUCH OTHER RELATED MATTERS AS 
THE CDAP MAY DEEM NECESSARY; 
(C) REQUIRE ALL COOPERATIVES TO SUBMIT THEIR ANNUAL REPORTS, 
AUDITED FINANCIAL STATEMENTS, AND SUCH OTHER DOCUMENTS IN SUCH 
FORMS AS MAY BE PRESCRIBED BY THE CDAP; 
(D) ORDER, AFTER DUE NOTICE AND HEARING, THE SUSPENSION, 
AND/OR THE CANCELLATION OF THE CERTIFICATE OF REGISTRATION OF ANY 
COOPERATIVE REGISTERED BY THE CDAP; 
(E) ORDER, AFTER DUE NOTICE AND HEARING, THE SUSPENSION ANY 
OFFICER OR MEMBER OF THE COOPERATIVE FOR ANY VIOLATION OF THE 
COOPERATIVE CODE OR OTHER PERTINENT LAWS, THEIR IMPLEMENTING 
RULES AND REGULATIONS, THE ARTICLES AND/OR BY-LAWS OF THE 
COOPERATIVE; 
(F) 
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; 
(G) 
SUPERVISE 
AND 
MONITOR 
THE 
COMPLIANCE 
OF 
ALL 
COOPERATIVES, 
INCLUDING 
THEIR 
FEDERATIONS 
OR 
UNIONS 
OF 
COOPERATIVES WITH THIS ACT, THE COOPERATIVE CODE, AND OTHER 
PERTINENT 
LAWS, 
RULES 
AND 
REGULATIONS, 
AND 
ISSUANCES 
ADMINISTERED, ENFORCED AND IMPLEMENTED BY THE CDAP, AS WELL AS 
THE DULY APPROVED AND REGISTERED ARTICLES OF COOPERATION AND 
BY-LAWS OF THE COOPERATIVE; 
(H) IMPOSE FINES AND PENALTIES FOR VIOLATIONS OF THIS ACT, THE 
COOPERATIVE CODE, THEIR IMPLEMENTING RULES AND REGULATIONS AND 
OTHER PERTINENT LAWS AND REGULATIONS; 
(I) ESTABLISH AND 
PRESCRIBE, 
IN CONSULTATION WITH 
THE 
COOPERATIVE 
MOVEMENT, 
REASONABLE 
RULES, 
REGULATIONS, 
GUIDELINES OR STANDARDS THAT WILL PROMOTE THE SAFETY AND 
SOUNDNESS OF THE COOPERATIVES; 
(J) IDENTIFY AND DETERMINE UNSAFE AND UNSOUND PRACTICES THAT 
SHOULD BE AVOIDED BY COOPERATIVES; 
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(K) FORMULATE, ADOPT, AND IMPLEMENT INTEGRATED PLANS AND 
PROGRAMS ON THE PROMOTION AND DEVELOPMENT OF COOPERATIVES 
CONSISTENT WITH THE NATIONAL POLICY, INCLUDING SUCH PLANS AND 
PROGRAMS WITH SPECIAL FOCUS ON OVERSEAS FILIPINO WORKERS, RURAL 
AND MARGINALIZED FARM AND FISHERY WORKERS; 
(L) DEVELOP SUCH TRAINING PROGRAMS AS ARE NECESSARY IN 
ORDER TO ENSURE THE PROMOTION, DEVELOPMENT, VIABILITY AND 
GROWTH OF COOPERATIVES THAT WOULD PROVIDE THEIR MEMBERS WITH 
THE ENTREPRENEURIAL CAPABILITIES, 
MANAGERIAL EXPERTISE, AND 
TECHNICAL SKILLS REQUIRED FOR THE EFFICIENT OPERATION OF THEIR 
COOPERATIVES. 
TOWARDS THIS 
END, THE 
CDAP 
SHALL ACCREDIT 
INDIVIDUALS 
OR 
EDUCATIONAL 
INSTITUTIONS 
TO 
HELP 
CONDUCT 
NECESSARY TRAININGS REQUIRED UNDER THE COOPERATIVE CODE: 
(M) 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; 
(N) HEAR AND DECIDE ALL DISPUTES BETWEEN AND AMONG 
MEMBERS, OFFICERS, AND DIRECTORS OF COOPERATIVES, AND BETWEEN 
AND 
AMONG 
COOPERATIVES, 
AFTER 
CONDUCTING 
MEDIATION 
AND 
CONCILIATION PROCEDURES, AND AFTER DUE NOTICE AND HEARING, IN 
ACCORDANCE WITH THE MANDATE OF THE COOPERATIVE CODE AND THE 
ALTERNATIVE DISPUTE RESOLUTION LAW; 
(0) IMPOSE AND COLLECT REASONABLE FEES, FINES OR CHARGES IN 
THE PERFORMANCE OF ITS REGISTRATION, REGULATORY AND SUPERVISORY 
FUNCTIONS; 
(P) REVIEW AND PERIODICALLY ASSESS THE REQUIRED PAID-UP 
SHARE CAPITAL AND WHEN NECESSARY, INCREASE IT EVERY FIVE (5) YEARS, 
UPON CONSULTATION WITH THE COOPERATIVE MOVEMENT AND THE 
NATIONAL ECONOMIC DEVELOPMENT AUTHORITY (NEDA); 
(a) CALL UPON, OR DEPUTIZE GOVERNMENT LAW ENFORCEMENT 
AGENCIES, LOCAL GOVERNMENT UNITS, OR COOPERATIVES, INCLUDING 
FEDERATIONS AND UNIONS, TO ASSIST IN ITS REGISTRATION, REGULATORY 
AND SUPERVISORY FUNCTIONS; 
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(R) SUBMIT AN ANNUAL REPORT TO THE PRESIDENT AND THE 
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CONGRESS ON THE STATE OF THE COOPERATIVE MOVEMENT; 
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(S) ADOPT SUCH RULES AND REGULATIONS FOR THE CONDUCT OF ITS 
INTERNAL OPERATIONS; AND 
(T) EXERCISE SUCH OTHER POWERS AND FUNCTIONS AS MAY BE 
NECESSARY TO IMPLEMENT THE PROVISIONS OF THE COOPERATIVE CODE 
AND OTHER PERTINENT LAWS. 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 (IO) 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 agencies 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 IN MUSLIM MINDANAO (ARMM). ANY VACANCY IN THE 
BOARD SHALL BE FILLED BY 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. Qualifications of Members of the Governing Board. - No person 
shall be appointed Chairman or member of the Board of [Administrators] GOVERNORS 
unless he possesses the following qualifications: 
(a) A natural born Filipino citizen of legal age; 


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(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 cooperative, 
government agency, or non-government organization engaged in cooperative 
development or, in the absence of a bachelor's degree, at least ten (IO) 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. 
[The Board of Administrators shall appoint an Executive Director who shall be the 
chief operating officer of the Authority whose compensation shall be fixed by the Board 
of Administrators.] 
SEC. 8. THE ADMINISTRATOR AND DEPUTY ADMINISTRATOR. - 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. HElSHE 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 OFFICER. HElSHE SHALL ASSIST THE ADMINISTRATOR IN 
THE PERFORMANCE OF HlSlHER FUNCTIONS. 
SEC. [7] 9. Organization 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. 
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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 
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 government 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 existing laws. 
SEC. [ I O ]  
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. 
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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. [Ill 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-government 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 cooperatives 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. [I21 14. Cooperatives in the Banking System. - The promotion and 
development of cooperative banks, as part of the Philippine banking system, shall be 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. [I31 15. Rule-Making Authority. - The [Authority] CDAP is hereby 
authorized to promulgate, after due 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 
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undergo the same process. 
circulation. All subsequent amendments to the implementing rules and regulations shall 
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SEC. [I41 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)] 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. [I51 17. lnformafion 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. [I61 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 XI1 under the current General Appropriations Act in addition to 
the appropriations of other departments/agencies/funds whose functions/programs are 
transferred to the Authority; Provided, That in its initial year of operations, an additional 
amount of not exceeding sixty million pesos (P60,000,000.00) 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. [I71 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. 
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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 PREVIOUSLY 
REGISTERED UNDER THE COOPERATIVE 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. 
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 NAMES. 
SEC. [I81 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. [I91 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,