'. 
., , 
~{!tHrlt' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
(j}f{,;, "I til' jm'!:Ir~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 10 
A11 :30 
, 
SENATE 
Senate Bill No. 
160 3 
RtXEIVI.;l) BY;~_.~_ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
It has long been a policy of the State to promote the electrification of the 
entire nation. 
Under P.O. 269 (National Electrification Administration Decree), it was the 
policy of the state to provide "the total electrification of the Philippines on an area 
coverage basis" the same "being vital to the people and the sound development 
of the nation", and "to promote, encourage and assist all public service entities 
engaged in supplying electric service, particularly electric cooperatives" by 
"giving every tenable suppo\1'.MP. e'Mijll~ance". 
The loss of the tax-exempt status of electric cooperatives under P.O. 269 
has been affirmed by the Supreme Court on June 10, 2003 in G.R. No. 143-736 
entitled "Philippine Rural Electric Cooperatives Association Inc. vs. The 
Secretary, Department of Interior and Local Government." The Supreme Court, in 
its decision, stated that the remedy of electric cooperatives under P.O. 269, to 
regain their tax-exempt status, is not judicial. 
Electric cooperatives under P.O. 269 have complained that because of 
cumbersome legal and technical requirements, they cannot register or convert as 
stock cooperatives under R.A. No. 6938. These cooperatives are now facing 
severe difficulty to sustain their financial viability and strength because of the loss 
of their financial viability and strength due to the loss of their tax-exempt status. 
To remedy the plight of electric cooperatives created under P.O. 269, 
there is now a need to amend Sections 196 and 234 (d) of the Local Government 
Code. This amendment will restore the tax-exemption privileges that electric 
cooperatives have enjoyed in the past. 
In view of these, passage of this bill is earnestly recommended. 
"Ii ill 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
.§>!:l1l1tr 
f(Hh;r of ttl" jHrPt1HI,l 
First Regular Session 
) 
) 
) 
'13 
SEP to All :30 
SENATE 
Senate Bill No. 1603 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO 
RESTORE 
THE 
TAX EXEMPTION 
PRIVILEGES 
OF 
ELECTRIC 
COOPERATIVES CREATED UNDER P.O. 269, OTHERWISE KNOWN AS THE 
"NATIONAL ELECTRIFICATION ADMINISTRATION DECREE", AMENDING 
FOR THIS PURPOSE SECTION 193 AND 234 (d) OF R.A. NO. 7160 
OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991" 
Be it enacted by the Senate and House of Representatives of the. Philippines in 
Congress assembled: 
SECTION 1. Section 193 of Republic Act No. 7160 is hereby amended to 
read as follows: 
"Section 193. WithdraWal' of] irax Exemption Privileges. - Unless 
otherwise provided in this Code, tax exemptions or incentives 
granted to, or presently enjoyed by all persons, whether natural or 
judicial, including government-owned AND controlled corporations, 
except local water districts, cooperatives duly registered under R.A. 
No. 6938, ELECTRIC COOPERATIVES DULY REGISTERED 
UNDER P.D. 269, non-stock and 
non-profit hospitals and 
educational institutions, are hereby withdrawn upon the effectivity of 
this Code." 
SEC. 2. Section 234 ~d) of Republic Act No. 7160 is hereby amended to 
read as follows: 
•. 
"Section 234. Exemption fr6m Real Property Tax. x x x 
. , 
. 
. , 
"(d) All real property owned by duly registered cooperatives as 
provided for under R.A. No. 6938 (;) and DULY REGISTERED 
ELECTRIC COOPERATIVES UNDER P.D. 269; x x x" 
SEC. 3. Repealing Clause - All laws, decrees, executive order, and rules 
and regulations, or parts thereof, inconsistent with the provisions of this Act, are 
hereby repealed or modified. accordingly. 
SEC. 4. Separability Clause. - If, for any reason, any section or 
provisions of this Act is held unconstitutional or invalid, the other sections or 
provisions hereof shall not be affected and thereby remain in full force and effect. 


, , 
SEC. 5. Effectivity Clause - This Act shall take effect fifteen (15) days 
after its complete publication in at least two (2) national newspapers of general 
circulation. 
Approved,