FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. No, 3007 
) 
) 
) 
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'11 
OCT 2fi 
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Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
Cooperatives are among the major pillars of the people empowerment 
movement. They have long been acknowledged and regarded as one of the 
fundamental sources of economic strength in our country. In particular, they playa 
crucial role in agrarian reform and rural development. 
Cooperatives 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. 
Article XII, Section 15 of the 1987 Constitution provided for the promotion of 
growth and viability of cooperatives as instruments of equity, social justice and 
economic development under the principles of subsidiarity and self-help. l,lnder the said 
principles, the government recognized that cooperatives are self-governing entities 
which shall initiate and regulate their own affairs to include education, training, research 
and other support services with the government giving assistance when necessary. 
Under Republic Act 7160, otherwise known as the Local Government Code of 
1991, the local development councils at levels of LGUs were operationalized which 
gave 
cooperatives, 
Non-Government 
OrganizationS 
(NGOs) 
and 
People's 
Organizations (POs) the opportunity to actively participate in local governance. This 
gave rise to the new concept of the partnership of the government, private and civil 
society sectors in the development efforts of society. As such, the cooperative 
movement, together with the NGOs and POs, emerged as the country's third sector 
(civil society), the government and the private enterprises being the first two. 
In this light, this proposed measure seeks to make mandatory the appointment of 
cooperative officers in all provincial, city and municipal governments, thereby amending 
Section 487(a) of Republic Act No. 7160, as amended, otherwise known as the Local 
Government Code of 1991. 
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MIu'E~ITO" M. LAPI.'a\ 
Senator 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. No. 3007 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
"11 
UCT 26 
:\ l} :41 
MAKING 
MANDATORY 
THE 
APPOINTMENT 
OF 
COOPERATIVES 
OFFICER, 
AMENDING 
FOR THE 
PURPOSE SECTION 
487(A) 
OF 
REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE 
LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Section 487(a) of Republic Act No. 7160, as amended, otherwise 
known as the Local Government Code of 1991 is hereby further amended to read as 
follows: 
"SEC. 487. Qualifications, Powers and Duties. - (a) No person shall 
be appointed cooperatives officer unless he/she is a citizen of the 
Philippines, a resident of the local government unit concerned, of good 
moral character, a holder of a college degree preferably in business 
administration with special training in cooperatives or any related course 
from a recognized college or university, and a first grade civil service 
eligible or its equivalent. He/she must have experience in cooperatives 
organization and management for at least five (5) years in the case of the 
provincial or city cooperatives officer, and three (3) years in the case of 
the municipal cooperatives officer. 
The 
appointment of the 
cooperatives 
officer 
is 
[optional] 
MANDATORY 
for 
the 
provincial 
[and], 
city, 
AND 
MUNICIPAL 
governments." 
• 
SEC. 2. 
Repealing Clause. - Sections 443(a), 454(a) and 463(a) of the 
Local Government Code of 1991 insofar as the appointment of municipal, city and 
provincial cooperatives officer respectively, and any law, decree, executive order and 
rules and regulations inconsistent with this Act are hereby amended accordingly. 


SEC. 3. 
Separability Clause. - If any provision or part of this Act, or the 
application thereof to any person or circumstance, is held unconstitutional or invalid, the 
remainder of this Act shall not be affected thereby. 
SEC. 4. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
from the date of its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved,