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

15 Congress
3™ Regular Session

COMMITTEE REPORT NO._ 2697,

Submited by the Committee on Cooperatives Development on O6FEB 2013

Re: House Bill No.

Recommending its approval in ashen ose ia Ns 1699, 1723, 2354, 3955 and
4611

Sponsors: Representatives Ping-ay, Paez, Rodriguez (R.)

Mr. Speaker:

‘The Committee on Cooperatives Development to which was referred House Bill No.
1699, introduced by Hon. Rodolfo G. Biazon, entitled:

“AN ACT TO REORGANIZE AND STRENGTHEN THE COOPERATIVE
DEVELOPMENT AUTHORITY, REPEALING FOR THIS PURPOSE REPUBLIC
ACT NO. 6939, OTHERWISE KNOWN AS THE CHARTER OF THE
COOPERATIVE DEVELOPMENT AUTHORITY”;

House Bill No. 1723, introduced by Hon. Rufus B. Rodriguez, entitled:

“AN ACT AMENDING REPUBLIC ACT NO. 6939, CREATING THE
COOPERATIVE DEVELOPMENT AUTHORITY”;

House Bill No. 2354, introduced by Hons. Jose R. Ping-ay and Cresente C. Paez, entitled:

“AN ACT TO REORGANIZE AND STRENGTHEN THE COOPERATIVE
DEVELOPMENT AUTHORITY, REPEALING FOR THIS PURPOSE REPUBLIC
ACT NO. 6939, OTHERWISE KNOWN AS THE CHARTER OF THE
COOPERATIVE DEVELOPMENT AUTHORITY, AND FOR OTHER
PURPOSES”;

‘House Bill No. 3955, introduced by Hon. Pablo P. Garcia, entitled:

“AN ACT TO AMEND R.A. 6939, OTHERWISE KNOWN AS THE CHARTER OF
THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA) FOR THE
ORDERLY AND EFFICIENT IMPLEMENTATION OF THE COOPERATIVE
CODE OF 2008 AND FOR OTHER PURPOSES”; and


House Bill No. 4611, introduced by Hon. Hons. Diosdado M. Macapagal ~Arroyo and Gloria
Macapagal-Arroyo, entitled:

“AN ACT REORGANIZING AND STREGHTENING THE COOPERATIVE
DEVELOPMENT AUTHORITY (CDA) AMENDING FOR THIS PURPOSE
REPUBLIC ACT NO. 6939, REDEFINING ITS POWERS, FUNCTIONS AND
OPERATIONS FOR THE EFFICIENT AND EFFECTIVE SUPERVISION,

REGULATION, AND DEVELOPMENT OF COOPERATIVES IN THE
PHILIPPINES, AND FOR OTHER PURPOSES”.

has considered the same and recommends that the attached House Bill No. 6912
entitled:

“AN ACT REORGANIZING THE COOPERATIVE DEVELOPMENT
AUTHORITY, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 6939,
CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY”

be approved in substitution of House Bills No. 1699, 1723, 2354, 3955 and 4611 with
Reps. Ping-ay, Paez, Biazon, Rodriguez (R.), Garcia (P.), Arroyo-Macapagal (D.), Sakaluran,
Teodoro, Rodriguez (M.), Yap (A.), Guanlao, Climaco, Arroyo-Macapagal (G.), Aumentado
Bataoil, Mercado-Revilla, Calixto-Rubiano, Sarmiento (M.), and Albano as authors thereof.

Commitee on Cooperatives Development

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


Republic of the Pljlippines
House of Representatives
‘Quezon City, Metro Manila

HON. JOCELYN S, LIMKAICHONG
Representative, 1st District, Negros Oriental
Chairperson, Committee on Appropriations

February 4, 2013

HON. JOSE R. PING-AY
Chairperson
Committee on Cooperatives Development

Dear Chairperson Ping-ay:

Please be informed that the Committee on Appropriations in its meeting held today at
Conference Rooms 3 and 4, R.V. Mitra Building approved to report out Substitute Bill to
House Bill Nos. 1699, 1723, 2354, 3955 and 4611, titled “AN ACT
REORGANIZING THE COOPERATIVE DEVELOPMENT AUTHORITY,
REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 6939, CREATING THE
COOPERATIVE DEVELOPMENT AUTHORITY” with the following amendments:

1

On Section 3, page 2, lines 10 and 11, delete the sentence which reads as
follows “The Authority shall be an agency attached to the Office of the President
for policy and program coordination.”

On Section 4(g), page 3, lines 3 to 4, delete the entire sub-paragraph and in lieu
thereof, substitute the following:

(G) DEVELOP AND CONDUCT MANAGEMENT AND TRAINING
PROGRAMS UPON REQUEST OF COOPERATIVES THAT WILL PROVIDE
MEMBERS OF COOPERATIVES WITH THE ENTREPRENEURIAL
CAPABILITIES, MANAGERIAL EXPERTISE, AND TECHNICAL SKILLS
REQUIRED FOR THE EFFICIENT OPERATION OF THEIR COOPERATIVES
AND INCLUDE IN THEM THE TRUE SPIRIT OF COOPERATIVISM AND
PROVIDE, WHEN NECESSARY, TECHNICAL AND PROFESSIONAL
ASSISTANCE TO ENSURE THE VIABILITY AND GROWTH OF
COOPERATIVES WITH SPECIAL CONCERN FOR AGRARIAN REFORM,
FISHERY AND ECONOMICALLY DEPRESSED SECTORS.

On Section 4 (1), same page lines 27 — 29, after the word “deposited” delete the
phrase starting with the word “under” and ending with the word “purpose” and in
lieu thereof substitute the phrase IN THE GENERAL FUND IN THE NATIONAL
TREASURY.

On Section 4(m), same page, line 30, between the words “Establish” and “offices”
change the word “regional” to EXTENSION.


5. On Section 5, page 4, lines 19 and 20, after the word “to” delete the phrase
“honoraria and actual travel expenses” and in lieu thereof substitute the phrase
PER DIEMS AT RATES TO BE DETERMINED AND APPROVED BY THE
DEPARTMENT OF BUDGET AND MANAGEMENT.

6. On Section 10, page 5, line 34, and page 6, lines 1 to 7, after the word
“Undersecretary” and the period (.) delete the remaining entries starting with the
article "The" up to the word “Operations”.

7. On the same Section, page 6, lines 8 to 9, between the word ‘appoint’ and the
phrase “Officer-in-Charge” delete the phrase “from among the five (5) deputy
administrators”

8. On Section 12, same page, lines 26 to 34, delete the entire provision.

9. On Section 20, page 9, lines 2 and 3 between the article “the” and the word
“Department” change the phrase “Classification Compensation Bureau of the” to
ORGANIZATION, POSITION CLASSIFICATION AND COMPENSATION
BUREAU OF THE.

10.On the same Section and page, lines 4 to 7, after the adverb “be” delete the
phrase “given separation pay computed at 1.5 months salary for every year
of service. The fraction of six months shall be considered as one (1) year in
computing years of service for severance pay and whatever applicable
retirement benefits under existing laws.” and in lieu thereof, substitute the
phrase ALLOWED TO RETIRE UNDER EXISTING RETIREMENT LAWS
IF QUALIFIED OR UNDER SECTION 10 OF EXECUTIVE ORDER NO.
366, S. 2004, WHICHEVER IS BENEFICIAL TO THE EMPLOYEE
CONCERNED.

11. On Section 23, same page, lines 15 to 17, delete the entire Section.
Likewise, as agreed upon during the Technical Working Group meeting, the
Committee suggests the following additional amendments to the proposed
measure:

a)

On Section 7 (a), page 5, line 1, between the article “A” and the word
“Filipino” delete the phrase “natural born’.

b) On Section 16, page 7, line 30, between the acronym *CHED" and the article
“the” change the word “OR” to AND.


Further, please be informed that upon motion duly seconded, the following Members were
made co-authors of the proposed measure: Reps. Rufus B. Rodriguez, Leopoldo N.
Bataoll, Lani Mercado-Revilla, Imelda Calixto Rubiano, Mel Senen S. Sarmieanto,
Cresente M. Paez and Rodolfo B. Albano —

Thank you.

ce: Hon. Cresente M. Paez
Hon. Rodolfo G. Biazon
Hon. Rufus B. Rodriguez
Hon. Pablo B. Garcia
Hon. Diosdado Macapagal-Arroyo
Hon. Raden C. Sakaluran
Hon. Marcelino R. Teodoro
Hon. Arthur C. Yap
Hon. Agapito H. Guanlao
Hon. Maria Isabelle “Beng” G. Climaco
Hon. Gloria Macapagal-Arroyo


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

FIFTEENTH CONGRESS
‘Third Regular Session
912

House Bill No.

Introduced by Hons. Ping-ay, Paez, Biazon, Rodriguez (R.), Garcia (P.), Arroyo
Macapagal (D.), Sakaluran, Teodoro, Rodriguez (M.), Yap (A.), Guanlao, Climaco, Arroyo-
Macapagal (G.), Aumentado, Bataoil, Mercado-Revilla, Calixto-Rubiano, Sarmiento (M.), and
Albano

AN ACT

REORGANIZING THE COOPERATIVE DEVELOPMENT AUTHORITY, REPEALING
FOR THE PURPOSE REPUBLIC ACT NO. 6939, CREATING THE COOPERATIVE
DEVELOPMENT AUTHORITY
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 Charter Act of 2013.”

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 15,
Article XII of the 1987 Constitution.

‘Toward this end, the State shall recognize cooperatives as associations organized for
the economic and social betterment of their members, operating business enterprises based on
mutual aid, and founded upon internationally accepted cooperative principles and practices.
‘The State recognizes the cooperatives as primarily responsible for the institutional
development of cooperatives. Accordingly, the State recognizes the rights of the cooperatives
to initiate and foster within their own ranks cooperative promotion, organization, training,
information gathering, audit and support services, with government assistance where
necessary. In furtherance of this policy, the National Economic and Development Authority
shall include the promotion of growth and expansion of cooperatives as major and

indispensable components of national development plans.


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‘The government and all its branches, subdivisions, instrumentalities and agencies shall
ensure the provision of technical guidance, financial assistance and other services to enable the
cooperatives to develop into viable and responsive economic enterprises towards a strong
cooperative movement free from any condition which infringes upon the objectives and
character of cooperatives. The State shall, except as provided in this Act, maintain the policy of
non-interference in the management and operation of cooperatives.

SEC. 3, Cooperative Development Authority. ~ The Cooperative Development
Authority created under Republic Act No. 6939, hereinafter referred to as the Authority, is
hereby reorganized 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
principal place of business in Metro Manila, and shall maintain offices and branches in such
other 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 have the
following powers and functions:

a) Exercise supervision and jurisdiction over all types and categories of

cooperatives registered with the Authority;

b) Register all types of cooperatives including amendments to its by-laws;

division, merger, consolidation, dissolution and liquidation of cooperatives as well as

the transfer of all or substantially all of their assets and liabilities;

©) Order the cancellation or revocation of the Certificate of Registration after due

notice and hearing pursuant to Articles 67 & 68 of the Philippine Cooperative Code of

2008 and the by-laws of the cooperative;

d) Formulate, adopt, and implement integrated plans and programs on cooperative

development consistent with the national policy on cooperatives, and establish an

integrated framework on cooperative development for all government agencies;

(©) Develop and formulate, in consultation with the cooperative sector, and issue

appropriate regulations, standards, rules, orders, guidelines and/or circulars to

implement the Cooperative Code to ensure the sound operation of cooperatives;

(® Establish a consultative mechanism in order to provide the cooperative sector a

system for maximum participation on matters of government plans, projects and

policies related to cooperatives.
‘The cooperative sector shall undertake the organization/streamlining or

rationalization of an apex body, representing all types and categories of cooperatives


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under the Philippine Cooperative Code of 2008, which shall function as the overall
consultative and coordinating body with the Authority.
The Authority, in consultation with the cooperative sector, shall promulgate the

guidelines for the implementation of the consultative mechanism;

(g) ___ Establish and maintain a continuing educational and capability-program for the
Authority;

(h) Require the submission of annual reports, audited financial statements, and such
reports in compliance with the Philippine Cooperative Code of 2008, in such forms as
may be prescribed by the Authority;

() Conduct regular inspection or examination of a cooperative in accordance with
rules and regulations promulgated by the Authority and when deemed necessary
conduct a special inspection and investigation to protect the interest and welfare of the
members of cooperatives. However, the Authority may delegate this power to
accredited federations and unions in accordance with the Philippine Cooperative Code
of 2008 and the implementing rules and regulations issued for this purpose;

(@__ Compel thie cooperative to call a General Assembly under the supervision of
the Authority, subject to the criteria or condition/s to be defined in the implementing
rules and regulations issued for this purpose;

In case a cooperative fails to call and conduct a General Assembly, the
Authority shall, on its own, call a general assembly meeting to address and settle the
issues. The Authority may enlist the aid and support of and/or deputize any and all
enforcement agencies of the government and federations and unions for the
implementation of its orders;

(k) Impose sanctions for non-compliance with lawful orders, rules and regulations
of the Authority, including the Articles of Cooperation and the By-Laws of the
cooperative subject to conditions as defined in the implementing rules and regulations
of this Act;

(Collect reasonable fees, fines or charges in the performance of its registration

and regulatory functions;

(m) Establish and strengthen extension offices in all political and administrative
regions in the country and such other places as may be determined by the Authority;

(a) Hear, decide and settle disputes between and among members, officers, and
directors of cooperatives, and between and among cooperatives in accordance with

Article 137 of the Philippine Cooperative Code of 2008;


(©) Implement and enforee its decision with the assistance of deputized law

enforcement agencies or the local government unit concerned as may be necessary; and

(p) Exercise such other powers and functions as may be necessary to implement the

provisions of the Philippine Cooperative Code of 2008.

SEC. 5. Organizational Structure. ~ The Authority shall have a Board of Directors
and an Office of the Administrator.

‘The Board of Directors, hereinafter referred to as the Board, shall be the collegial
policy-making body of the Authority which shall be composed of the Chairperson and six (6)
members of the Board of Directors, all of whom shall be chosen from among the nominees of
the cooperative sector, with two (2) representatives each from Luzon, Visayas and Mindanao.
They shall be appointed by the President of the Philippines and shall serve for a term of six (6)
years without reappointment, Except for the Chairperson, the Members of the Board shall serve
on a part-time basis only: Provided, That any vacancy in the Board shall be filled-up by
appointment of the President in accordance with the provisions of this section: Provided,
further, That a member so appointed shall serve only for the unexpired term: Provided, finally,
‘That the incumbent Chairperson and members of the Board shall continue to serve and act as
chairperson and members of the present Board up to the end of their term under Republic Act
No. 6939,

Except for the Chairperson, the members of the Board shall be entitled to per diem at
rates to be determined and approved by the Department of Budget and Management and actual
travel expenses,

The Office of the Administrator shall be headed by the Chairperson of the Board who
shall exercise over-all supervision on the operations of the Authority.

SEC. 6. Powers and Functions of the Board. ‘The Board as the policy making body
shall have the following powers and functions:

a) Formulate policies, rules and regulations consistent with the provisions of the

Philippine Cooperative Code of 2008;

b) Adopt implementing rules and regulations for the conduct of the internal

operations of the Authority;

©) Organize the operating structure and functions of the Authority. No changes in

the approved organizational structure including the transfer of personnel shall be

effected without the approval of the Board; and

d) Approve and adopt the annual budget of the Authority.


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SEC. 7. Qualifications of Members of the Board. — The Chairperson or a Member of
the Board who shall be appointed must possess the following qualifications:

a) A natural born Filipino citizen;

b) Must not be more than sixty (60) years old at the time of the appointment and

must be in good health;

©) A holder of at least a bachelor’s degree and five (5) years of experience as an

official or officer of a cooperative, government agency, or non-government

organization engaged in cooperative development or, in the absence of the bachelor’s

degree, at least seven (7) years of experience in cooperatives either as an officer of a

cooperative or a government agency or non-government organization engaged in

cooperative development;

4) Except the Chairperson who should be a resident of the Philippines, the other

Members of the Board must be a resident of the region represented for at least five (5)

years; and

€) Must be recommended and endorsed by a federation and/or union of

cooperatives operating in good standing under the provisions of this Act and the

Philippine Cooperative Code of 2008.

Any person appointed as Chairperson or regular member of the Board shall,
upon appointment, divest himself of any direct or indirect pecuniary interest or dealings
with any cooperative.

SEC. 8. Removal of Member of the Board. ~ The President of the Philippines may
remove any member of the Board for any of the following reasons:

a) Ifthe member is subsequently disqualified under the provisions of this Act;

b) If the member becomes 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

©) If the member is guilty of 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. Meetings of the Board, ~The Board shall meet at least once a month 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 specific 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 head office in Metro Manila.


SEC. 10. Chairperson/Administrator. — The Chairperson shall be the Administrator of
the Authority and shall have the rank and privileges of an Undersecretary.

In the absence of the Administrator, the Director IV shall be the Officer-In-Charge of
the Authority who shall exercise the powers and duties of the Administrator.

SEC. 11. Powers and Functions of the Chairperson/Administrator. ~ The
Chairperson/Administrator of the Authority shall have the following powers and functions:

a) _ Preside over the meetings of the Board;

b) -_ Supervise the over-all operations of the Authority;

©) Prepare, consolidate and submit periodic reports for the consideration of the
Board;
4) Implement a human resource management system consistent with the Civil

Service Code that will promote professionalism and excellence in accordance with

sound principles of management;

©) Prepare the proposed annual and supplemental budgets of the Authority for the

consideration and approval of the Board;

f) __ Report fo the President of the Philippines and Congress on the performance and

accomplishment of the Authority on a periodic basis;

8) Represent the Authority in all undertakings where its presence is required; and

h) Perform such other functions as may be required by law.

SEC. 12. Power to Register Cooperatives. ~ The power to register cooperatives shall
be vested solely on the Authority pursuant to the provisions of the Philippine Cooperative
Code of 2008,

All cooperatives duly registered with the Authority shall present their Certificate of
Registration to the nearest Bureau of Internal Revenue office and the latter shall within ten (10)
days issue the Certificate of Tax Exemption.

Any provision of law, executive order, rule or regulation to the contrary
notwithstanding, the certificate of registration issued by the Authority to a duly registered
cooperative shall ipso facto constitute as the sole legal basis or requirement for the full
enjoyment of the tax exemption granted under Articles 60 and 61 of the Philippine Cooperative
Code of 2008. Any public official or employee who violates or in any manner circumvents this
provision shall be dealt with under Article 140 of Philippine Cooperative Code of 2008.

The Authority shall cite this provision in the certificate of registration.

SEC. 13. Prohibition. — Except as provided for under Article 130 of the Philippine
Cooperative Code of 2008, the use of the word “cooperative” by any person or organization


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unless duly registered with the Cooperative Development Authority shall be prohibited and
shall be penalized under Article 140 of the Philippine Cooperative Code of 2008.

SEC. 14. Settlement of Disputes. — Disputes within or between cooperatives, or
disputes within or between federations or unions shall be mediated, conciliated or settled in
accordance with this Act, Article 137 of the Philippine Cooperative Code of 2008 and its
implementing rules and regulations or Republic Act No. 9285, otherwise known as the
Alternative Dispute Resolution Act of 2004.

SEC. 15. Cooperatives in the Education System. ~ The history, philosophy, concepts,
values, principles and practices of cooperatives and their role as a factor in the national
economy shall be disseminated both in formal and non-formal education,

Notwithstanding existing laws, memorandum orders and directives, cooperatives
development and administration as a field of study may be offered as a baccalaureate, post
baccalaureate or masteral program in state universities and colleges (SUCs) in accordance with
the standards, rules and regulations promulgated by their respective Board of Regents, the
Commission on Higher Education (CHED) and the Authority in consultation with the
cooperative sector as necessary: Provided, That SUCs shall provide for equivalency credit and
accreditation of work experiences and non-formal education and training of cooperative
leaders, managers and members: Provided further, 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. Special incentives including scholarships shall be formulated by the Authority
for students taking up degree courses on cooperatives development and administration.

The role of non-government organizations, not registered as cooperatives but duly
registered under Philippine laws and engaged in cooperative promotion, organization, research
and education, shall be recognized. The Authority may accredit such non-government
organizations as non-academic training organizations. The training courses offered by them
may be eligible as credits for the purposes of academic, professional and career advancements
of their trainees. Existing training centers for cooperatives may qualify as non-government
organizations under this Act.

Upon request of cooperatives, State colleges and universities shall provide technical

assistance and guidance to cooperatives in the communities where they are located.


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SEC. 16. Cooperatives in the Banking System. — The promotion and development of
cooperative banks as part of the banking system and of financial service cooperatives as
defined in the Philippine Cooperative Code of 2008 shall be a major concer of the Authority
which shall undertake the necessary program towards this end in collaboration with the Bangko
Sentral ng Pilipinas (BSP) and the cooperative sector concerned.

SEC. 17. Cooperatives Engaged in Services Covered by Other Laws, ~ Registered
cooperatives may engage in business endeavors in accordance with its approved articles of
cooperation provided they acquire the necessary licenses, franchises, certificates of authority
and permits from the appropriate agencies governing their type of cooperatives such as, but not
limited to those providing manpower services, construction services, professional services,
health care services, security services, social welfare services, research development, related
health services, ecological and environmental services, farmers and fisherfolk cooperatives and
services to indigenous cultural minorities.

SEC. 18. Reorganization of the Authority. ~ The Authority shall be reorganized within
one hundred twenty (120) days from the effectivity of this Act.

SEC. 19. Transitory Provisions. ~ Upon the effectivity of this Act, the personnel of the
Cooperative Development Authority shall, unless removed for cause and after due process,
continue to perform their duties and responsibilities and shall receive their corresponding
salaries and benefits.

In the reorganization and staffing of the Authority, these personnel shall be given
preference subject to civil service rules and regulation and rules of the Organization, Position
Classification and Compensation Bureau of the Department of Budget and Management
(DBM); Provided, that Those who shall not be absorbed by the organization shall be allowed to
retire under existing retirement laws if qualified or under Section 10 and other applicable
provisions of Executive Order No. 366, S. 2004, whichever is beneficial to the employee
concerned.

SEC. 20. Appropriations. ~The amount necessary for the implementation of this Act
shall be included in the annual General Appropriations Act.

SEC. 21. Transfer of Funds and Programs. - The Cooperative Development Loan
Fund and the Fund for Management Training and Assistance Program created under
Presidential Decree No. 175, as amended, and the Cooperative Marketing Project created under
Joan agreements, all granted to the Department of Agriculture, is hereby transferred to the
Authority which shall be used for the development and strengthening of cooperatives.


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SEC. 23. Implementing Rules and Regulations. ~ The Board shall, in consultation
with the cooperative sector, formulate the implementing rules and regulations for the effective
implementation of the provisions of this Act. The implementing rules and regulations shall take
effect within fifteen (15) days after publication in the Official Gazette or in two (2) newspapers
of general circulation. All subsequent amendments to the implementing rules and regulations
shall also be published before taking effect.

SEC. 24. Information Campaign. — The Cooperative Development Authority is
mandated to conduct a six (6) months information campaign on the provisions of this Act from
its effectivity.

SEC. 25. Repealing Clause. ~ Republic Act No. 6939, creating the Cooperative
Development Authority is hereby repealed. All other laws, decrees, executive orders, rules and
regulations or parts thereof inconsistent with the provisions of this Act are hereby amended or
modified accordingly.

SEC. 26. Separability Clause. ~ If for any cause, any part of this Act is declared
unconstitutional, the rest of the provisions shall remain in force and effect.

SEC. 27. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation,

Approved,


Republic of the Philippines
House of Representatives
COMMITTEE ON COOPERATIVES DEVELOPMENT

‘Committee Affairs Department, 3/F, Ramon V. Mitra Building, Batasan Complex,
Batasan Hills, Quezon City, Telefax 931-4673; Trunkline 931-5001 local 7162

CERTIFICATION

This is to certify that the Committee on Cooperatives Development conducted an
Executive Meeting on Wednesday, February 15, 2012, 9:30 a.m., Conference Rm 15,
GIF, Speaker Mitra Bldg., House of Representatives, Quezon City, to approve the
Committee Report on House Bills No. 1699, 1723, 2354, 3955 and 4611, all seeking to
amend RA 6939, creating the Cooperative Development Charter.

February 15,2012, Quezon City, Metro Manila, Philippines.

ING-AY

;
‘ooperatives Development


FACT SHEET

HOUSE BILL'NO.__ 6912

“AN ACT
REORGANIZING THE COOPERATIVE DEVELOPMENT AUTHORITY, REPEALING FOR THE
PURPOSE REPUBLIC ACT NO. 6939, CREATING THE COOPERATIVE DEVELOPMENT
AUTHORITY”

Introduced by: HONS. JOSE R. PING-AY, CRESENTE C. PAEZ, RODOLFO G. BIAZON,
RUFUS B. RODRIGUEZ, PABLO P. GARCIA, DIOSDADO M. MACAPAGAL-ARROYO, RADEN
C. SAKALURAN, MARCELINO R. TEODORO, MAXIMO B. RODRIGUEZ, JR., ARTHUR C.
YAP, AGAPITO H. GUANLAO, MARIA ISABELLE G. CLIMACO, GLORIA M. MACAPAGAL-
ARROYO, ERICO B. AUMENTADO, LEOPOLDO N. BATAOIL, LANI MERCADO-REVILLA, EMI
G. CALIXTO-RUBIANO, MEL SENEN S. SARMIENTO, and RODOLFO B. ALBANO

Committee Report : COMMITTEE ON COOPERATIVES DEVELOPMENT
Committee Chairperson: HON. JOSE R. PING-AY

OBJECTIVES:

+ To strengthen the regulatory power of the Cooperative Development Authority (CDA) to
make ‘cooperatives more competitive and competent in pursuit of sustainable operations
and delivery of quality services.

* To enhance the developmental functions of the CDA in order to boost the viability and
growth of cooperatives for national development.

* To provide a system of consultation with the cooperative sector in order that plans and
programs of both the sector and government will be synchronized.

KEY PROVISIONS:

Granting CDA the sole power to register cooperatives;
Empowers the CDA to issue appropriate regulations regarding the supervision and
inspection of cooperatives;

* Directs the CDA to cancel or revoke the certificate of registration of cooperatives not
‘compliant with the provisions of RA 9520;

‘* Provides for a consultative mechanism in order the cooperative sector can participate on
matters of planning and execution of government projects and programs geared to
cooperative development and strengthening;

+ Empowers the CDA to issue annual certificates of compliance to all cooperatives as the
sole basis of cooperative to enjoy the rights and full privileges provided by law;

* Provides a mediation, conciliation and settlement process on inter/intra cooperative
disputes;

* Provides for the mechanism on settlement of disputes thru Alternative Dispute Resolution
Act of 2004 (RA 9285);

+ Provides for the organization and re-organization of the CDA Secretariat;

* Seeks to include the promotion of cooperative banks and financial service cooperatives as
part of the banking system

+ Seeks to include the dissemination of the principles and practices of cooperatives and their
important role in the national economy both in formal and non-formal education.

RELATED LAWS:

* RA9520, the Philippine Cooperative Code of 2008
+ RA 6939, the Cooperative Development Authority Charter
* RA 9285, the Alternative Dispute Resolution Act of 2004