Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Philippines

Fificenth Congress
First Regular Session

HOUSE BILL NO._1017

Introduced by Honorable Cresente C. Paez and Honorable Jose R. Ping-ay

EXPLANATORY NOTE

It is widely acknowledge 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 spécial 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 agrarian reform representatives and 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 is
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.

” crrstinire eSbarz G-AY



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

Fifteenth Congress
First Regular Session

HOUSE BILL NO. __ 1017

Introduced by Honorable Cresente C. Paez and Honorable Jose R. Ping-ay

AN ACT
MANDATING THE REPRESENTATION OF COOPERATIVES IN
THE BOARD OF DIRECTORS OF THE LAND BANK OF THE
PHILIPPINES, AMENDING THEREFORE REPUBLIC ACT
NUMBERED 3844, AS AMENDED

Be it enacted by the Senate and House of Representatives of the

ssembled:

Philippines in Congress

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)] TEN (10) 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 Labor, and
the Secretary of Agriculture as ex-officio members. THE
PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE TWO
(2) MEMBERS REPRESENTING 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; TWO (2) MEMBERS REPRESENTING
THE PRIVATE SECTOR AND ONE (1) MEMBER
REPRESENTING THE COOPERATIVE SECTOR, PROVIDED
FURTHER, THAT THE REPRESENTATIVE OF THE


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COOPERATIVE SECTOR SHALL BE APPOINTED BY THE
PRESIDENT OF THE PHILIPPINES FROM THE NOMINEES OF
THE NATIONAL ‘COOPERATIVE FEDERATIONS AND/OR
UNIONS DULY RECOGNIZED BY THE COOPERATIVE
DEVELOPMENT AUTHORITY. [The President of the Philippines
shall appoint two (2) members of the Board who shall represent the
agrarian reform beneficiaries and two (2) members who shall
represent the private sector. The two (2) remaining members shall be
elected from the shareholders coming from the public sector to the
extent that they may be entitled to two (2) seats in proportion to the
outstanding capital stock.]

“No person shall be elected or appointed director of the Bank
unless [he] THAT PERSON is a natural born citizen of the
Philippines, not less than thirty-five 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. Xxx”

SEC. 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 tem 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.

SEC. 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.

SEC. 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,