Republic of the Philippines 
House of Representatives 
Quezon City 
EIGTHTEENT CONGRESS 
Second Regular Session 
HOUSE BILL NO___________ 
Introduced by Hon. Sabiniano S. Canama 
COOP-NATCCO PARTYLIST
AN ACT 
ESTABLISHING THE TRANSPORTATION COOPERATIVES DEVELOPMENT LOAN 
FUND, APPROPRIATING AND SOURCING FUNDS THEREOF AND FOR OTHER 
PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Title. - This Act shall be known as “The Transportation Cooperatives 
Development Loan Fund Act.”
SECTION  2.  Declaration of Policy.   -   It is hereby declared the policy of the State to 
promote the viability and growth of the Transportation Cooperative Sector as provider of a 
safe, efﬁcient, and environment friendly land and sea transport services in the movement of 
goods and passengers geared towards structural economic growth and development of the 
country.
Toward this end, the State shall recognize the Transportation Cooperative System as a 
tool towards the integration and rationalization of land and sea public transport system, not 
only as a means to effect economy and efﬁciency in the movement of goods and passengers, 
but also as a potent measure to ameliorate the social and economic conditions of public 
transportation workers and their families through various strategies that will ensure 
sustainable employment opportunities and increase their take home pay/income.
The government and all its branches, subdivisions, instrumentalities and agencies shall 
ensure the provision of technical guidance, ﬁnancial assistance and other incentives to the 
Transportation Cooperative sector as partner of the government in building a sustainable 
nation.
SECTION 3.   The Transportation Cooperatives Development Loan Fund.   - 
There is hereby established a “Transportation Cooperative Development Loan Fund”  as 
principal source of ﬁnancial assistance to the Transportation Cooperative Sector to pursue its 
various economic activities to attain its primary objective of improving the lives of the land and 
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sea public transport workers, more so in the implementation of the Public Utility Vehicle 
Modernization Program (PUVMP).
The Fund shall be sourced from the Motor Vehicle User’s Charge on owners of all 
types of motor vehicles as provided for under Republic Act No. 8794 promulgated on June 27, 
2000 in the amount of FIFTY (50) BILLION (P50,000,000,000.00) PESOS ONLY.
SECTION 4.   Use of the Funds.  -     The Fund herein established/appropriated will 
be used as a principal source of ﬁnancial assistance exclusively for Transportation 
cooperatives duly registered with the Cooperative Development Authority and accredited with 
the Department of Transportation (DOTr), thru the Ofﬁce of Transportation Cooperatives, 
which shall include but not limited to:
1. Transport Modernization/vehicle/vessel acquisition program that conforms to land
and sea safety standards and environment friendly/clean air compliant, and the
maximum age requirement of public utility vehicles pursuant to DOTr  Department
Order No, 2002-30 and LTFRB Memorandum Circular No. 201-017 and Resolution
No. 2013-01  and MARINA’s modernization program, more so the PUVMP pursuant
to DOTr DO No. 2017-011;
2. Engagement in Allied Businesses pursuant to Art. 112 of R.A. 9520 and Rule V,
Section 2 of its implementing Rules and Regulations as follows:
a. Importation, distribution and marketing of petroleum products in accordance
with existing laws;
b. Operation of gasoline stations and transportation service centers;
c. Importation, distribution and marketing of spare parts and supplies; and
d. Marketing of vehicle/drivers insurance policies.
3. Establishment of manufacturing/assembly and repair shops for the transportation
cooperative sector’s land and sea requirements.
SECTION 4.  Administration of the Fund. -   The Fund shall be deposited to and 
handled by the Development Bank of the Philippines which shall establish a special window 
for this purpose.  
SECTION 5. Board of Administrators - A Board of Administrators is hereby created 
to administer the Fund and provide policy guidelines in the usage of the same, as follows; 
DOTr Usec. for Land Transportation
-
Chairman
OTC Chairman
-
Vice-Chairman
LTFRB Chairman
-
Member
DBP Representative
-
Member
NFTC Representative
-
Member


Likewise, the Board of Administrators shall create and organize  a Management Group 
to handle the operation and management of the Fund. 
SECTION  5.   Implementing Rules and Regulations.    The Board of Administrators 
created under Section 4 likewise shall promulgate the necessary Implementing Rules and 
Regulations for the effective and efﬁcient implementation of this Act.
SECTION  6. 
Effectivity.  This Act shall take effect ﬁfteen (15) days after its 
publication in two (2) newspapers of general circulation.
Approved.
SABINIANO “BEN” S. CANAMA


Republic of the Philippines 
House of Representatives 
Quezon City 
EIGTHTEENT CONGRESS 
First Regular Session 
HOUSE BILL NO___________ 
Introduced by Hon. Sabiniano S. Canama 
COOP-NATCCO PARTYLIST 
EXPLANATORY NOTE 
The Transportation Cooperative Sector plays a vital role in providing safe, efﬁcient, and 
environment friendly land and sea transport services in the movement of goods and 
passengers geared towards structural economic growth and development of the country. 
Thus, along with the other sector of the industry, is considered as partner of the government 
in building a sustainable nation.
R.A. 9520, otherwise known as the Philippine Cooperative Code of 2008, under Art. 2. 
Declaration of Policy, par.2 provides that “Towards this end, the government and all its 
branches, subdivisions, instrumentalities and agencies shall ensure the provision of technical 
guidance, ﬁnancial assistance and other services to enable said cooperatives to develop into 
viable and responsive economic enterprises and thereby bring about a strong cooperative 
movement that is free from any conditions that might infringe upon the autonomy or 
organizational integrity of cooperatives”.
In reality, however, the Transportation Cooperative Sector, more often than not is 
treated second class citizen in their dealings with the different government agencies, 
notwithstanding the various privileges and preferential treatment accorded to them by the very 
provisions of R.A. 9520, particularly Article 62 thereof.  Further, the said Transportation 
Cooperatives could hardly access to credit facilities of government and commercial ﬁnancing 
institutions because of stringent security requirements.  Furthermore, the Sector, while very 
much willing to comply with the modernization program on land and sea safety standards for 
public utility vehicles and vessels, they are deprived of ﬁnancial assistance from various 
government projects for so many other reasons.
The proposed measure will strengthen/ensure competitiveness and viability of the 
Transportation Cooperative Sector as responsive economic enterprises and a tool to 
ameliorate the social and economic conditions of land and sea public utility transportation 
workers and their families by providing them sustainable employment opportunities and 
increase their take home pay/income.
Thus, the early passage of this Bill is earnestly requested.
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June 7, 2021
3:11 pm


SABINIANO “BEN” S. CANAMA