Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
‘First Regular Session

House Bil No._ 259

Introduced by Honorable Roy M. Loyola

EXPLANATORY NOTE

Cooperatives play a significant role in the economy. The Cooperative Code of the
Philippines describes them as “practical vehicle for promoting self-reliance and
harnessing people power towards the attainment of economic development and social
justice.”

To properly conduct the cooperative's affairs, the Local Government Code
provides for the appointment of a cooperatives officer with the following qualifications:
(1) citizen of the Philippines; (2) resident of the local government unit concemed:; (3) of
good moral character; (4) holder of a college degree preferably in business
administration with specialty training in cooperatives; (5) a first grade civil service eligible
or its equivalent; and (6) must have experience in cooperatives organization and
management of at least five years for provinces and cities and three years for
municipalities.

The cooperatives officer shall take charge of the office for the development of
cooperatives and shall

(1) Formulate measures for the consideration of the sanggunian, and province
technical assistance and support to the governor or mayor, as the case may
be, in carrying out measures to ensure the delivery of basic services and
provision of facilities through the development of cooperatives, and in
providing access to such services and facilities;

(2) Develop plans and strategies and, upon approval thereof by the governor or
mayor, as the case may be, implement the same, particularly those which
have to do with the integration of cooperatives principles and methods in
programs and projects which the governor or mayor is empowered to
implement and which the sanggunian is empowered to provide for under this
Code;

(3) In addition to the foregoing duties and functions, the cooperatives officer
shall:


() Assist in the organization of cooperatives;

(ii) Provide technical and other forms of assistance to existing
cooperatives to enhance their viability as an economic enterprise
and social organization;

(iii) Assist cooperatives in establishing linkages with goverment
agencies and non-government organizations involved in the
promotion and integration of the concept of cooperatives in the
livelinood of the people and other community activities;

(4) Be in the frontline of cooperatives organization, rehabilitation or viability
enhancement, particularly during and in the aftermath of man-made and
natural calamities and disasters, to aid in their survival and, if necessary
subsequent rehabilitation;

(6) Recommend to the sanggunian, and advise the governor or mayor, as the
case maybe, on all other matters relative to cooperatives development and
the viability-enhancement which will improve the livelihood and quality of life
of the inhabitants; and

(©) Exercise such other powers and perform such other duties and functions as
may be prescribed by law or ordinance.

Unfortunately, the appointment of a cooperative officer under the Code is merely
optional. The tendency then becomes that local government units opt to not make such
appointment.

The bill recognizes and confirms the importance of cooperatives in bringing
sustainable economic development to the country. In order to maximize its potential,
local government units should be at the forefront of fostering creation and growth of
cooperatives by the provision of technical guidance, financial assistance, and other
similar services to enable cooperatives to develop into viable and responsive economic
enterprises. In this context, a cooperative officer at the helm of the Cooperative
Development Office in every province, city and municipality becomes indispensable.
Ergo, their appointment should be made mandatory in all provinces, cities and
municipalities.

In view thereof, support and approval of this measure is earnestly sought.

|. LOYOLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

House Bill No.

Introduced by Honorable Roy M. Loyola

AN ACT MAKING THE APPOINTMENT OF COOPERATIVES OFFICER IN
ALL LOCAL GOVERNMENT UNITS MANDATORY, AMENDING FOR THE
PURPOSE REPUBLIC AGT NO. 7160 OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991.

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

1 SECTION 4. — Section 487 of Republic Act No. 7160 as amended,
2 otherwise known as the Local Government Code of 1991, is hereby
3 amended to read as follows:

4 " SEC. 487. Qualifications, Powers and Duties. ~ (a) xx

6 The appointment of the cooperatives officer is {optional] MANDATORY for the
6 provincial, [and] city AND MUNICIPAL governments.

Kx"

7 SECTION 2. If any provision of this Act shall be declared
invalid or unconstitutional, the remaining part or provisions not otherwise
9 affected shall remain in force.


SECTION 3, Any law, decreed, ordinance, administrative circulars
not consistent with any provision of this Act is hereby amended, repealed or
modified accordingly.

SECTION 4, This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers

of general circulation.

Approved,