Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY “HORI” G. 
HORIBATA AND HON. NICOLAS “NICK” ENCISO VIII 
EXPLANATORY NOTE 
The government identifies the importance of both financial security and literacy for its people. 
Congress has continuously championed for the strengthening of resource management and 
savings mobility for the citizenry, especially for those in areas that lack the presence of 
financial institutions to cater to them. 
Hand in hand with the government in this effort are the cooperatives that also promote 
collaborative entrepreneurship and economic growth. Cooperatives have reduced individual 
risk in much-needed business ventures and created a culture of productivity and success. 
Cooperatives are recognized in our Constitution Republic Acts No. 6939 and 9520, as 
instruments for social justice and economic development.  
This bill seeks to strengthen the regulatory powers of the Cooperative Development Authority 
(CDA), the main agency tasked to promote the viability and growth of cooperatives in the 
country, thereby repealing Republic Act No. 6939. It hopes to develop cooperatives to be more 
responsive to the needs of the citizenry and provide cooperatives with more avenues for 
engagement and promotion for the sector. 
The bill also proposes to create the Cooperative Development Council and the Cooperative 
Adjudication Board within the CDA to ensure a solid relationship between the sector and the 
government. The Council shall be the policy-making body of the authority tasked to create 
integrated plans and programs for cooperative development that is consistent with the national 
policy. The Board shall be a specialized quasi-judicial body focusing on issues among 
cooperatives for prompt dispute and grievances resolution between and among cooperatives 
and its members. 
The approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY “HORI” G. HORIBATA 
NICOLAS “NICK” ENCISO VIII 
September 13, 2022
8:00 am
4712


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
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”. 
SECTION 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 
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 
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expansion of cooperatives as major and indispensable components of national 
development plans. 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. 
 
SECTION 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. 
 
SECTION 4. Power, 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; 
c. 
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; 


e. 
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; 
f. 
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 under the Philippine Cooperative Code of 2008, which shall 
function as the overall consultative and coordinating body with the Authority; 
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; 
i. 
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; 
j. 
Compel the 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; 
l. 
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; 
n. 
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; 
o. 
Implement and enforce 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. 
 
SECTION 5. Organization 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 provision 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 overall supervision on the operations of the Authority. 
 
SECTION 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; 
c. 
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. 
 
SECTION 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 (6) years old at the time of the appointment and 
must be in good health; 
c. 
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 engage 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 engage in cooperative development; 


d. 
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 
e. 
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 dealing with 
any cooperative. 
 
SECTION 8. Removal Member of the Board. – The President of the Philippines may 
remove any member of the Board for any of the following reasons: 
 
a. 
If the member if 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 
c. 
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. 
 
SECTION 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. 
 
SECTION 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. 


 
SECTION 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 overall operations of the Authority; 
c. 
Prepare, consolidate and submit periodic reports for the consideration of the 
Board; 
d. 
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; 
e. 
Prepare the proposed annual and supplemental budgets of the Authority for 
the consideration and approval of the Board; 
f. 
Report to the President of the Philippines and Congress on the performance 
and accomplishment of the Authority on a periodic; 
g. 
Represent the Authority in all undertakings where its presence is required; and 
h. 
Perform such other functions as may be required by law. 
 
SECTION 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 certification of registration. 
 
SECTION 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 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. 
 
SECTION 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 of 2008 
and its implementing rules and regulations or Republic Act No. 9285, otherwise known 
as the Alternative Dispute Resolution Act of 2004. 
 
SECTION 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 regulation 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 SUC’s 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 SUC’s do not offer a separate academic program in 
cooperatives development and administration, the SUC’s 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. 
 
SECTION 16. Cooperatives Engaged in Services Covered by Other Law. – 
Registered cooperatives may engage in business endeavors in accordance with its 
approved articles of incorporation 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, 
ecological and environmental services, farmers and fisherfolk cooperatives and 
services to indigenous cultural minorities. 
 
SECTION 17. Reorganization of the Authority. – The Authority shall be reorganized 
within one hundred twenty (120) days from the effectivity of this Act.  
 
SECTION 18. 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. 
 
SECTION 19. Appropriations. – The amount necessary for the implementation of this 
Act shall be included in the annual General Appropriations Act. 
 
SECTION 20. 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 loan 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. 
 
SECTION 21. 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. 
 
SECTION 22. 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. 
 
SECTION 23. Separability Clause. – Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this 
Act. 
 
SECTION 24. Repealing Clause. – All laws, decrees, orders, rules, and regulations 
or other issuances or parts inconsistent with the provisions of this Act are hereby 
repealed, amended, or modified accordingly. 


 
SECTION 25. Effectivity Clause. – This Act shall take effect in fifteen (15) days after 
publication in the Official Gazette or in one (1) newspaper of general circulation in the 
Philippines. 
 
Approved,