Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS
First Regular Session

1331

HOUSE BILL NO.

Introduced by Hon. Felimon M. Espares
COOP-NATCCO PARTYLIST.

AN ACT

ESTABLISHING THE TRANSPORTATION COOPERATIVES DEVELOPMENT LOAN
FUND, APPROPRIATING AND SOURCING FUNDS THEREOF AND FOR OTHER
PURPOSES.

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.

ELIMON M. ESPARES


Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS.
First Regular Session

1331

HOUSE BILL NO_

Introduced by Hon. Felimon M. Espares
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 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 5. Administration of the Fund. - To administer the fund and provide
policy guidelines in the usage of the same, a Board of Administrator hereby created and
shall be composed of the following;

DOTr Sec or Usec. for Land Transportation - Chairman
OTC Chairman Vice-Chairman,
LTFRB Chairman - Member

DBP Representative * Member
Department of Energy Representative - Member
NFTC Representative a Member
Sectoral Apex Organization for Public Utilities - | Member
President

Likewise, the Board of Administrators shall create and organize a Management Group
to handle the operation and management of the Fund.

SECTION 6. 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 7. Effectivity. This Act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation.

Approved.

HON. FELIMON M.
COOP NATCCO PARTY LIST