SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Third Regular Session ) are
18 AUG 14 P4207
SENATE
s.B.No. 1934 p
RECEn

Introduced by Senator SONNY ANGARA

AN ACT
REFORMING AND STRENGTHENING THE COOPERATIVE DEVELOPMENT
AUTHORITY, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 6939,
CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY AND
APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE
Twenty eight years ago, the crafters of Republic Act No. 6939—which
established the Cooperative Development Authority (CDA)—saw the potential of
cooperatives to uplift Filipino lives and promote social justice, equity, and economic
development especially in rural areas. With the creation of the CDA, cooperatives
around the country had a government arm to guide and push for their advancement.

Now, the CDA has over 26,000 registered cooperatives nationwide under its
wing. This translates to around 14 million individual members—of varied professions,
careers and social status—contributing up to P6.4 billion in tax revenues to
government.! It is only fitting, as we keep on with the objective of further
empowering the sector, that we also institute positive reforms to the authority
tasked to promote their growth and development.

Through this measure, the CDA will be strengthened to carry out the
provisions of Republic Act No. 9520 or the Philippine Cooperative Code of 2008. The

Cooperative Development Academy of the Philippines (CDAP) will also be created to

} Cooperatives as ‘catalyst of change’. http://www.manilatimes.net/cooperatives-catalyst-change/316279/



offer formal and non-formal programs on cooperatives as well as formulate a
standard of training requirements for cooperative officers and members.

To highlight the importance of the sector and incentivize the youth to
participate in the sector, “cooperativism” shall also be included in the curricula of
senior students in all the secondary educational institutions. Furthermore,
cooperativism shall also be offered as a degree program or a subject in programs
related to the sector.

Finally, this measure will establish a fund within the CDA which shall be used
for development programs, projects, and activities of cooperatives, as well as for
disaster risk management activities, disaster rehabilitation and recovery, and post-
disaster activities.

In keeping up with the Constitutional mandate to promote the viability and
growth of cooperatives as instruments of equity, social justice and economic
development, the passage of this bill is earnestly sought.

LD

SONNY ANGARA



SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES ) fume
Third Regular Session ) ese el ge Boe 07
18 AUG 14 P4907
SENATE
s.B.No._ 1934
REC: fe —

Introduced by Senator SONNY ANGARA.

AN ACT
REFORMING AND STRENGTHENING THE COOPERATIVE DEVELOPMENT
AUTHORITY, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 6939,
CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY AND
APPROPRIATING FUNDS THEREFOR

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

Section 1. Short Title. - This Act shall be known as the "Cooperative
Development Authority Reform Act of 2018."

Sec. 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 to create an agency, in fulfillment of the
mandate in Section 1 (paragraph 3) and Section 15, Article XII of the Constitution.

Toward this end, the State shall recognize cooperatives as organizations for
the economic and social betterment of their members, operating business
enterprises based on mutual cooperation, and founded upon internationally accepted
cooperative principles and practices.

In furtherance of this policy, the National Economic and Development
Authority (NEDA) shall include the promotion of growth and expansion of
cooperatives as a major and indispensable component of national development
plans. All departments, branches, political subdivisions and instrumentalities of the
Government shall promote the development of cooperatives under their respective
programs, projects and activities and provide them with appropriate and suitable

incentives.



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The State further recognizes the Authority as the lead agency responsible for
the development and regulation of cooperatives.

Government assistance to cooperatives shall be free from restriction and
conditionality that may in any manner infringe upon the nature and character of
cooperatives as provided in this Act.

Sec. 3. Cooperative Development Authority. - The Cooperative Development
Authority, hereinafter referred to as the Authority, is hereby reformed and
strengthened to carry out the provisions of this Act and those of Republic Act No.
9520, otherwise known as the “Philippine Cooperative Code of 2008”.

The Authority shall have its national office in Metro Manila, and shall maintain
regional, provincial, and field district offices in the case of the NCR and in such
places as the proper conduct of its business shall require. The Authority shall be an
agency attached to the Office of the President for policy and program coordination.

Sec. 4. Powers, Functions and Responsibilities. - The Authority shall exercise
the following powers, functions and responsibilities:

A. Registration.

1. Register all cooperatives, their division, merger or consolidation, and
amendments to the Articles of Cooperation and By-Laws (ACBL);

2. Authorize the establishment of branches and satellite offices of
cooperatives;

B. Developmental.

1, Formulate, adopt, and implement integrated plans, programs and
activities on cooperative development consistent with the national
socio-economic policy of the government;

2. Develop and conduct management and training programs that will
provide members of cooperatives with the entrepreneurial capabilities,
managerial expertise, and technical skills required for the efficient
operation of their cooperatives;

3. Provide technical and professional assistance to ensure the viability and
growth of cooperatives giving special concern for agriculture, fishery
and economically depressed sectors;



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4. Provide assistance on cooperative product development and facilitate
their marketing both in domestic and international market;

5. Establish a consultative mechanism for the formulation of the Philippine
Cooperative Medium Term Development Plan (PCMTDP), the necessary
standards, rules or regulations for cooperative governance,
management, financial performance, training and education;

6. Administer all grants and donations exclusively intended for
cooperatives coursed through the Authority 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;

7. Create or establish a fund for the enterprise development programs,
projects and activities of cooperatives;

8. Establish and operate the Cooperative Academy of the Philippines
(CAP) ;

9. Formulate, adopt and implement an educational and technological
exchange programs both in domestic or international levels;

10.Grant awards, recognition and incentives to cooperatives, partners and
leaders;

C. Regulation and Monitoring.

1. Order the cancellation of the Certificate of Registration of cooperatives
and/or revocation of the Letter of Authority and/or Certificate of
Authority to establish satellite and branch offices, respectively, after
due notice and hearing;

2. Prescribe and collect reasonable fees, fines and charges in the
performance of its functions;

3. To represent the CDA as voting member in the governing board of the
Landbank of the Philippines (LBP) and the Development Bank of The
Philippines (DBP) to advance cooperative development;

4. Represent the CDA in the Regional Development Council (RDC) as a
regular voting member thereof;



D. Adjudication.

1, Exercise quasi-judicial power to adjudicate intra and inter cooperative
disputes;

2. Issue subpoena and summon witnesses to appear in any proceedings
of the Authority and in appropriate cases, order the examination of all
documents, papers, files and records of any cooperative or person
under investigation as may be necessary for the proper disposition of
cases before it;

3. Implement and enforce its decision with the assistance of deputized
law enforcement agencies or the local government unit concerned as
may be necessary;

4. Summarily cite for direct contempt any person guilty of misconduct in
the presence of the Authority which seriously interrupts any hearing or
inquiry and impose a fine of not more than Five Thousand Pesos
(P5,000.00) or imprisonment of not more than ten (10) 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;

5. Mediate and conciliate disputes within a cooperative or between
cooperatives upon request of both parties;

6. Impose sanctions for violations or non-compliance with lawful orders,
rules and regulations of the Authority, including the Articles of
Cooperative and By-Laws of the cooperative subject to conditions as
defined in the implementing rules and regulations of this Act; and

E. Such other powers and functions as may be necessary to implement the
provisions of cooperative laws and of this charter.

Sec. 5. Governing Body. - The Authority shall be governed by a Board of
Administrators acting as a collegial body. The Board shall consist of a Chairperson as
the Chief Executive Officer (CEO) with the rank of a Cabinet Secretary, 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: Provided, That there shall be at least three (3) female



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members of the Board. They shall serve for a term of six (6) years without
reappointment.

The Chairperson and members shall serve on a full-time basis. Any vacancy in
the Board shall be filled by appointment by the President in accordance with the
membership allocation set forth in this section: However, a member of the Board
whose term expires shall continue to serve as such until his/her successor shall be
appointed and qualified: Provided, That a member so appointed shall serve only for
the unexpired term.

Sec. 6. Qualifications of Members of the Governing Board. - No person shall
be appointed Chairperson or member of the Board of Administrators unless he
possesses the following qualifications:

(a) A natural-born Filipino citizen of legal age;

(b) The Chairperson shall be a holder of Doctorate degree while the members
of the Board shall be a holder of Master’s degree or its equivalent
preferably with dissertation/thesis related to cooperative development;
and

(c) The Chairperson shall be a resident of the Philippines for at least five (5)
years, while the members of the Board must be bona fide residents of the
regions they represent for at least five (5) years prior to appointment.

Any person appointed as Chairperson or member of the Board of
Administrators shall divest himself of any direct or indirect pecuniary interest in or
dealings with cooperatives upon his appointment.

Sec. 7. Powers and Functions of the Board of Administrators. - The Board as
a collegial body shall be responsible for policy formulation, strategic planning and
direction setting of the agency.

Sec. 8. Removal from Office. - The President of the Philippines or the Civil
Service Commission may remove the Chairperson or any member of the Board of
Administrators for any of the following reasons:

(a) Physically or mentally incapacitated to properly discharge the duties and

responsibilities of the position and such incapacity has lasted more than
six (6) months; and



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(b) Acts or omissions which are fraudulent or illegal in character or which are
manifestly opposed to the aims, objectives and interests of the Authority
and the cooperative sector.

Sec. 9. Board of Administrators Meeting. - The Board shall meet every week
for the transaction of its regular business. Special meetings may be called by the
Chairperson or majority of the members of the Board to consider urgent matters. A
majority vote by the entire Board shall be required for a decision. All regular and
special meetings of the Board shall be held at the national office in Metro Manila or
in any other place in the Philippines as may be determined by the Board.

Sec. 10. Executive Director. - The Board of Administrators shall appoint an
Executive Director who shall be the Chief Operating Officer (COO) of the Authority.

Sec. 11. Structure of the Authority. - The Authority shall be comprised of the
CDA Board, Department Offices and Extension Offices.

Sec. 12. Department Offices. - The department offices shall consist of the
Legal and Registration Department; Institutional Development Department;
Regulation Department; Cooperative Surety Fund Department; General
‘Administrative and Support Services Department; and Information Technology
Department.

Sec. 13. Cooperative Officers Training Standards. - The Authority, in
coordination with the Cooperative Development Academy of the Philippines (CDAP)
and other higher learning training institutions, and in consultation with the
cooperative sector, shall formulate a standard of training requirements for
cooperative officers and members: Provided, That the training requirements shall be
optional for cooperative members.

The Authority shall likewise formulate a system of recognition and
accreditation of units or equivalent training that an officer has undertaken through
formal or non-formal education.

The Authority may accredit organizations other than cooperatives but duly
registered under Philippine laws and engaged in cooperative promotion,
organization, research and education as non-academic training institutions. The
training courses offered by them may be eligible as credits for purposes of academic,

professional and career advancements of their trainees.

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Upon request of cooperatives, State Universities and Colleges (SUCs) shall
provide technical assistance and guidance to cooperatives in the communities where
they are located. The SUCs may tap the support and participation of unions and
federations of cooperatives in the implementation of this provision.

Sec. 14. Cooperativism in the Education System. - The history, philosophy,
concepts, values, principles and practices of cooperatives and their role in nation
building shall be disseminated both in formal and non-formal education.

Notwithstanding existing laws, memorandum orders and directives,
cooperativism, as a tool for self-empowerment and nation building, shall be included
in the curricula of senior students in all the secondary educational institutions.

Cooperatives development and administration may be offered as a field of
study in the baccalaureate, post baccalaureate or masteral programs in SUCs:
Provided, That in cases where the SUCs do not offer a separate academic program
in cooperatives development and administration, the SUCs shall be encouraged to
include a 3-unit subject in the curricula of accountancy, agribusiness, agriculture,
agricultural economics, business, community development, economics, education,
forestry, social sciences, and other curricula that can be instrumental in the
development of cooperatives.

Sec. 15. Cooperative Development Academy of the Philippines (CDAP). - The
Authority shall create and establish a bureau level Cooperative Academy of the
Philippines. The said academy shall offer formal and non-formal programs on
cooperatives. In pursuance of the objectives of education and training programs, the
Authority shall seek the participation of State Universities and Colleges (SUC's),
Technical Education and Skills Development Authority (TESDA), and other
government and non-government organizations with education, research and
training programs on cooperatives.

The Authority may accredit organizations other than cooperatives but duly
registered under Philippine laws and engaged in cooperative promotion,
organization, research and education, as non-academic training institutions.

The training fund of the CDAP shall be sourced from the Cooperative
Education and Training Fund (CETF) of all types of cooperatives equivalent to 25%
of the allocation.



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Sec. 16. Cooperative Enterprise Development Fund (CEDF). - There is hereby
created a Cooperative Enterprise Development Fund (CEDF) for the enterprise
development programs, projects and activities of cooperatives.

A. Sources of the Cooperative Enterprise Development Fund (CEDF):

1. An initial amount of Two Hundred Fifty Million Pesos(250,000,000.00)
sourced from the General appropriations fund;

2. Foreign and Domestic Grants and Donations;

3. Levies imposed by existing laws for the development of cooperatives;
and

Such other sources as are now provided by existing laws or as may be
provided for in the future.

Sec. 17. Administration of Fund. - The Authority shall have the power to
administer the training funds intended for the CDAP as well as the CEDF subject to
the rules and regulations prescribed for their utilization.

Sec. 18. Disaster Risk Reduction and Management Fund. - A fund shall be set
aside to support cooperative business continuity management, disaster risk
management activities, disaster rehabilitation and recovery and post-disaster
activities of the Authority.

Sec. 19. Structure and Staffing Patterns. - Subject to the approval of the
Department of Budget and Management (DBM), the reformed and strengthened CDA
shall determine its organizational structure and create such new offices as may
herein be required, and shall appoint officers and employees in accordance with the
civil service law, rules and regulations.

Sec. 20. Information Campaign. - The Authority is mandated to conduct a
nationwide and extensive information campaign for a period of one (1) year on the
provisions of this Act, beginning seventh month from the effectivity of this Act.

Sec. 21. Appropriations. - The amount needed for the implementation of this
Act shall be included in the General Appropriations Act.

Sec. 22. Transitory Provisions. - All incumbent Members of the Board of
Administrators shall serve until the expiration of their terms as provided under
Republic Act No. 6939.



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Sec. 23. Implementing Rules and Regulations. — The Authority, in consultation
with other government agencies concerned, shall issue within one hundred twenty
(120) days from the effectivity of this Act, the rules and regulations for the effective
implementation thereof. Such implementing rules and regulations shall take effect
within fifteen (15) days after publication thereof in at least two (2) newspapers of
general circulation.

Sec. 24. Separability Clause. - If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain
in full force and effect.

Sec. 25. Repealing Clause. - Republic Act No. 6939 shall be repealed. All
laws, decrees, executive orders, rules and regulations and other issuances or parts
thereof which are inconsistent with this Act are hereby repealed, amended or
modified accordingly.

Sec. 26. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,