FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

1723

House Bill No.,
EXPLANATORY NOTE

The Constitution recognizes the vital importance of cooperatives as
instruments for social justice and economic development and, for this reason has
mandated Congress to create an agency to promote the viability and growth of
cooperatives. Section 15, Article XII of the fundamental law provides:

"SEC. 15. The Congress shall create an agency to promote the viability
and growth of cooperatives as instruments for social justice and
‘economic development.

Pursuant to the aforequoted Constitutional mandate, Congress enacted
Republic Act 6939, creating the Cooperative Development Authority [CDA], which
was signed by President Corazon C. Aquino on March 10, 1990.

Despite the dedication and valiant efforts of its officials and personnel,
particularly those assigned to man its various Extension Offices, the Authority has
encountered tremendous difficulties and obstacles in the pursuit of its mission to
promote the viability and growth of cooperatives. To solve these identified
problems, this bill is submitted for consideration.

The bill seeks to strengthen the development and regulatory powers of the
CDA in order to ensure that the Authority will be more responsive to the
challenges of the future by creating the Cooperative Development Council and
Cooperative Adjudication Board in the CDA.

The Cooperative Development Council shall establish a more concrete
relationship between the sector and the government. Various plans and programs
of the sector and the government geared towards the promotion, organization and
development of cooperatives shall be synchronized for optimum result.


The Cooperative Adjudication Board in the CDA is a specialized quasi-
judicial body which guarantees prompt resolution of disputes and grievances
between and among members of the cooperatives, as well as between
cooperatives.

The passage of this bill enhances the capability of the CDA in promoting the

viability and growth of cooperatives for national development, thus, its passage is
imperative.

RUFA lhl x
We

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No,_1723

AN ACT
AMENDING 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. Title. — This Act shall be known as the “The Revised Charter
of the Cooperative Development Authority’.

SECTION [1] 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 Constitution. Toward this
end, the economic and social betterment of their members, operating business
enterprises based on mutual aid and founded upon internationally accepted
cooperative principles and practices.

In furtherance of this policy, the appropriate national economic planning
agency shall include the promotion of growth and expansion of cooperatives as a
major and indispensable component of national development plans. All
departments, branches, subdivisions and instrumentalities of the Government shall
promote the formation of cooperatives under their respective programs by
providing them with appropriate and suitable incentives.

The State recognizes the cooperative sector as primarily responsible for the
institutional development of cooperatives. Accordingly, the State recognizes the
rights of the cooperative sector to initiate and foster within its own ranks
cooperative promotion, organization, training, information gathering, audit and
support services, with government assistance where necessary.


Government assistance to cooperatives shall be free from any restriction
and condition that may in any manner infringe upon the objective and character of
the cooperatives as provided in this Act. The State shall, except as provided in
this Act, maintain the policy of non-interference in the management and operations
of cooperatives.

SECTION [2] 3. Creation of the Cooperative Development Authority. -
The Cooperative Development Authority is hereby created under the Office of the
President to carry out the provisions of this Act.

SECTION [3] 4. Powers, Functions, and Responsibilities. — The
Authority IN THE EXERCISE OF ITS JURISDICTION OVER ALL
COOPERATIVES shall have the following powers, functions, and responsibilities:

(a) Formulate, adopt and implement integrated and comprehensive plans and
programs on cooperative development consistent with the national policy
‘on cooperatives and the overall socio-economic development plans of the
Government. SUCH PLANS AND PROGRAMS SHALL FOCUS ON
RURAL AND MARGINALIZED COOPERATIVES, OVERSEAS FILIPINO
WORKERS AND WOMEN COOPERATIVES ENGAGED IN LIVELIHOOD
ACTIVITIES FOR FOOD SECURITY AND THE PROMOTION OF
COOPERATIVE ENTREPRENEURSHIP.

(b) Develop and conduct management and training programs upon request of
cooperatives that will provide members of the cooperatives with the
entrepreneurial capabilities, managerial expertise, and technical skills
required for the efficient operation of their cooperatives and inculcate 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;

(c) Support the voluntary organization and consensual development of
activities that promote cooperative movements and provide assistance
towards upgrading managerial and technical expertise upon request of the
cooperative concerned;

(d) Coordinate AND SUPPORT THE DEVELOPMENTAL [the] efforts of the
[local government units] GOVERNMENT AGENCIES and the private sector
in the promotion, organization, and development cooperatives;

(e) HOLD THE SOLE POWER TO register all cooperatives and their federation
and unions, including their division, merger, consolidation, dissolution or
liquidation. It shall also register the transfer of all or substantially all of their
assets and liabilities and such other matters as may be required by the
Authority;

(f), Require all cooperatives, their federations and unions to submit their annual
financial statements, duly audited by a certified public accountant, and
general information sheets;


(g) Order the cancellation after due notice and hearing of the cooperative’s
certificate of registration for non-compliance with administrative
requirements and in cases of voluntary dissolution;

(h) Assist cooperatives in arranging for financial and other forms of assistance
under such terms and conditions as are calculated to strengthen their
viability and autonomy;

(i) Impose and collect reasonable fees and charges in connection with the
registration of cooperatives.

() Administer all grants and donations coursed through the Government for
cooperative development, without prejudice to the right of cooperative to

directly receive and administer such grants and donation upon agreement

with the grantors and donors thereof;

Formulate and adopt continuing policy initiatives consultation with the

cooperative sector through public hearing;

() EVOLVE AND IMPLEMENT CAPABILITY-BUILDING AND EMPOWERING
PROGRAMS TO DEVELOP THE CAPABILITIES OF OFFICIALS AND
EMPLOYEES OF — COOPERATIVES, | NON-GOVERNMENT
ORGANIZATIONS [NGOs], NATIONAL GOVERNMENT AGENCIES
[NGAs], AND LOCAL GOVERNMENT UNITS [LGUs] ON COOPERATIVE
PROMOTION, ORGANIZATION AND DEVELOPMENT;

(m)CONDUCT RESEARCHES AND STUDIES ON COOPERATIVE
TRAINING CURRICULAR FOR SPECIFIC CLENTELE AND/OR SPECIFIC
GOALS;

(n) DEVELOP APPROPRIATE TRAINING TECHNIQUES,
METHODOLOGIES, MATERIALS AND AIDS AND DISSEMINATE THE
SAME;

(0) UNDERTAKE CONTINUING MONITORING AND EVALUATION OF THE

DIFFERENT COOPERATIVE EDUCATION AND TRAINING PROGRAMS

UNDERTAKEN BY ALL INSTITUTIONS SUCH AS THE ACADEME, THE

NON-GOVERNMENT ORGANIZATIONS, NATIONAL GOVERNMENT

AGENCIES, LOCAL GOVERNMENT UNITS AND COOPERATIVES TO

DETERMINE THEIR RELEVANCE, EFFECTIVENESS AND DIRECT

MODIFICATIONS WHENEVER NECESSARY;

INSPECT, INVESTIGATE, INQUIRE INTO OR AUDIT OR CAUSE TO BE

AUDITED COOPERATIVES FALLING UNDER ITS JURISDICTION;

DISSOLVE AND RECONSTITUTE THE BOARD OF DIRECTORS

AND/OR COMMITTEE CONCERNED, IF, AFTER DUE NOTICE AND

HEARING, THE AUTHORITY IS CONVINCED THAT SUCH BOARD OF

DIRECTORS OR COMMITTEE IS NOT FUNCTIONING IN ACCORDANCE

WITH LAW OR THE BY-LAWS OF THE COOPERATIVE; PROVIDED,

HOWEVER, THAT THE DISSOLUTION AND RECONSTITUTION SHALL

BE UNDERTAKEN THROUGH A GENERAL ASSEMBLY CALLED FOR

THE PURPOSE. IF THE GENERAL ASSEMBLY CANNOT BE

CONVENED FOR LACK OF QUORUM, THE AUTHORITY SHALL

DECLARE SUCH POSITION[S] VACANT AND THE AUTHORITY SHALL

APPOINT A SUITABLE PERSON OR PERSONS TO DIRECT,

(k)

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i)


SUPERVISE AND MANAGE THE AFFAIRS OF THE COOPERATIVE ON
SUCH TERMS AND CONDITIONS AS MAY BE PRESCRIBED FOR A
SPECIFIED PERIOD NOT EXCEEDING TWO [2] YEARS UNTIL A NEW
BOARD OF DIRECTORS AND/OR COMMITTEE IS ELECTED;

PROVIDED FURTHER, THAT THE AUTHORITY MAY ORDER THAT ANY

OR ALL OF THE DIRECTORS OR THE COMMITTEE MEMBERS SHALL

BE DISQUALIFIED AS CANDIDATES OR FROM BEING APPOINTED AS

MEMBERS TO THE BOARD OF DIRECTORS OR TO ANY OF THE

COMMITTEES OF THE COOPERATIVE FOR A PERIOD TO BE

SPECIFIED IN THE ORDER BUT NOT EXCEEDING THREE [3] YEARS;

PROVIDED FINALLY, THAT THE AUTHORITY MAY FROM TIME TO

TIME EXTEND THE PERIOD SPECIFIED IN SUCH ORDER BUT NOT TO

EXCEED TWO YEARS FOR SUCH EXTENSION;

ENLIST THE SUPPORT OF ANY AGENCY OF THE GOVERNMENT IN

THE EXERCISE OF ITS POWER AND FUNCTIONS;

(s) IN THE PERFORMANCE OF ITS ADJUDICATIVE FUNCTIONS AND
SUBJECT TO THE PROCEDURE OF SECTION 9 OF THE PROVISIONS
HEREOF, DECIDE ALL DISPUTES BETWEEN AND AMONG MEMBERS,
OFFICERS, COMMITTEES OR DIRECTORS OF COOPERATIVES AND
BETWEEN AND AMONG COOPERATIVES;

(t) Adopt rules and regulations for the conduct of its internal operation;

(u) Submit an annual report to the President and Congress on the state of
cooperative movement; and

(v) Exercise such other functions as may be necessary to implement the
provisions of cooperative laws, and, in the performance thereof, the
Authority may summarily punish for direct contempt any person guilty of
misconduct in the presence of the Authority who seriously interrupts any
hearing [P500.00] TWO THOUSAND PESOS [P2,000.00] or imprisonment
of not more than ten [10] days, or both. Acts constituting indirect contempt
as defined under Rule 71 of the 1997 RULES OF CIVIL PROCEDURE
shall be punished in accordance with the said Rule.

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SECTION [4] 5. Governing Body. - The authority shall be governed by a
Board of Administrators consisting of Chairman and [six [6] SEVEN [7] members
to be appointed by the President, all of whom shall be chosen from among the
nominees and the cooperative sector with two [2] representatives each from
Luzon, Visayas, and Mindanao. THE OTHER MEMBER SHALL REPRESENT
THE AUTONOMOUS REGION OF MUSLIM MINDANAO, WHO SHALL BE
RECOMMENDED BY THE REGIONAL GOVERNOR. They shall serve for a term
of six (6) years without reappointment. Provided, that among those first appointed,
the chairman shall serve for a term of [six (6)] years without re-appointment, three
(3) members to serve for a term of four (4) years, and three (3) members to serve
for a term of two (2) years]; PROVIDED, THAT THE REPRESENTATIVE FROM
THE AUTONOMOUS REGION OF MUSLIM MINDANAO SHALL BE A NON-
VOTING MEMBER OF THE BOARD OF ADMINISTRATORS AND SHALL
CONTINUE TO SERVE UNTIL THE END OF THEIR RESPECTIVE TERMS OF


OFFICE. The Chairman and members SHALL HAVE THE RANK AND
PRIVILEGES OF DEPARTMENT SECRETARY AND UNDERSECRETARIES
RESPECTIVELY, AND 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 the section: Provided FINALLY that a member so appointed
shall serve only for the unexpired term.

SECTION [5] 6. Qualifications of Members of the Governing Board. —
No person shall be appointed Chairman or member of the Board of Administrators
unless he [possess] POSSESSES the following qualifications:

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

(b) A bachelor's degree on cooperative, economic, finance, agriculture,
fisheries, veterinary medicine, business, social science, law, management,
or in similar fields of study 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 a
bachelor’s degree, at least ten [10] years of experience in cooperatives or a
government agency or non-government organization engaged in
cooperative development; and

(c) Must be a resident of the region he represents for at least TWO [2] [five [5]
years.

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

SECTION [6] 7. Board of Administrators Meeting. - The Board of
Administrators shall meet at least once a month for the transaction of its regular
business. Special meetings may be called by the Chairman of majority of the
members to consider specific matters. A majority vote of the entire Board shall be
required for a decision. Meetings of the Board [shall] MAY be held at the head
office in Metro Manila or at any other place as may be determined by the Board.

The Board of Administrators shall appoint an Executive Director who shall be
the chief operating officer of the Authority whose compensation shall be fixed by
the Board of Administrators.

SECTION [7] 8. Organization of the Authority. - [The Authority shall be
organized within One Hundred Twenty [120] days from the effectivity of this Act]
THE AUTHORITY SHALL BE COMPOSED OF THE BOARD OF
ADMINISTRATORS, OFFICE OF THE EXECUTIVE DIRECTOR AND HIS TWO
[2] DEPUTIES, THE SERVICE OFFICES, THE TECHNICAL DEPARTMENTS,
THE NATIONAL COOPERATIVE ADJUDICATION BOARD, AND REGIONAL
AND FIELD OFFICES.


A. THE SERVICE OFFICES, WHICH SHALL BE HEADED BY DIRECTORS,
SHALL BE THE FOLLOWING:

(1) PLANNING SERVICE CONSISTING OF THE MANAGEMENT
INFORMATION SYSTEM DIVISION AND THE SPECIAL
PROJECTS DIVISION;

(2) THE ADMINISTRATIVE SERVICE CONSISTING OF
PERSONNEL DIVISION, ADMINISTRATIVE _ DIVISION,
GENERAL SERVICES DIVISION, RECORDS DIVISION AND
THE LIBRARY DIVISION; AND

(3) THE FINANCIAL AND MANAGEMENT SERVICE
CONSISTING OF BUDGET DIVISION AND LIBRARY
DIVISION.

B, THE TECHNICAL DEPARTMENTS, WHICH SHALL BE HEADED BY
DIRECTORS SHALL BE THE FOLLOWING:

(1) THE COOPERATIVE DEVELOPMENT DEPARTMENT
CONSISTING OF THE COOPERATIVE STANDARDS
DIVISION, THE COOPERATIVE PROJECT DEVELOPMENT
ASSISTANCE DIVISION, AND THE COOPERATIVE
MONITORING AND EVALUATION DIVISION;
THE COOPERATIVE EDUCATION AND _ TRAINING
DEPARTMENT CONSISTING OF THE COOPERATIVE
RESEARCH AND INFORMATION DIVISION, THE
CURRICULUM AND STANDARDS DIVISION, THE
MATERIALS DEVELOPMENT DIVISION, AND THE
COOPERATIVE TRAINING INSTITUTE;
(3) THE LEGAL AND _ REGISTRATION DEPARTMENT
CONSISTING OF THE LEGAL DIVISION AND THE
REGISTRATION AND REGULATORY DIVISION.

2

C. THE NATIONAL COOPERATIVE ADJUDICATION BOARD CONSISTING
OF THE LEGAL RESEARCH DIVISION AND THE SUPPORT DIVISION.

D. THE REGIONAL OFFICES HEADED BY REGIONAL DIRECTORS SHALL
EACH CONSIST OF THE COOPERATIVE REGULATORY DIVISION,
COOPERATIVE EDUCATION AND TRAINING DIVISION, COOPERATIVE
DEVELOPMENT DIVISION, COOPERATIVE SERVICE DIVISION AND
THE REGIONAL COOPERATIVE ADJUDICATION BOARD. THESE
REGIONAL OFFICERS SHALL BE RESPONSIBLE FOR COORDINATING
AND IMPLEMENTING THE FUNCTIONS, POWERS AND
RESPONSIBILITIES OF THE AUTHORITY. ALL EXISTING EXTENSION
OFFICES, AS OF THE EFFECTIVITY OF THIS ACT, ARE HEREBY
CONVERTED INTO REGIONAL OFFICES.


THE BOARD OF ADMINISTRATORS SHALL DELINEATE THE FUNCTIONS,
POWERS AND RESPONSIBILITIES OF THE ABOVE-MENTIONED OFFICES,
DEPARTMENTS AND DIVISIONS EXCEPT THE COOPERATIVE
ADJUDICATION BOARDS WITH RESPECT TO THOSE FUNCTIONS, POWERS.
AND RESPONSIBILITIES ALREADY HEREIN PROVIDED.

SECTION 8. Mediation and Conciliation. - Upon request of both parties,
the Authority shall mediate and conciliate disputes within a cooperative or between
cooperatives, Provided, That if no mediation or conciliation succeeds within three
[3] months from request thereof, certificate of non-resolution shall be issued by the
commission prior to the filing of appropriate action before the proper courts.

[SECTION 9. Power to Register Cooperatives. - The power to register
cooperatives shall be vested solely on the Authority. The functions of the following
departments and agencies relating to the registration of cooperatives as such are
hereby transferred to the Authority;

(a) [the] Department of Agriculture;

(b) [the] Bureau of Agricultural Cooperatives Development;
(c) [the] Department of Transportation and Communication;
(d) [the] Sugar Regulatory administration;

(e) [the] National Electrification Administration; and

(f) any other pertinent government agency.

The Bureau of Agricultural Cooperatives Development created under Executive
Order No. 116, series of 1987 is hereby abolished and its qualified employees
are hereby absorbed by the Cooperative Development Authority in accordance
with its staffing pattern, subject to Civil Service rules and regulations and rules
of the Office of the Compensation and Position Classification; Provided, That
the Regional Cooperative Development Assistance Office of Region IX and XII,
created under Executive Order No. 634, are also hereby abolished and their
employees shall be given preference for employment with the Cooperative
Development Authority in accordance with its staffing pattern, subject to Civil
Service Rules and regulations; Provided finally, That those who are not
absorbed shall be given separation pay computed at one-fourth [1 1/4] month
salary for every year of service. Service of six [6] months or more shall be
considered as one [I] year in computing the years of service for severance pay
and whenever applicable, other retirement benefits under existing laws.]

SECTION 9. COOPERATIVE ADJUDICATION BOARDS. — NATIONAL
AND REGIONAL COOPERATIVE ADJUDICATION BOARDS ARE HEREBY

CREATED UNDER THE ADMINISTRATIVE SUPERVISION OF THE BOARD OF
ADMINISTRATORS.

THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL BE
COMPOSED OF A CHAIRMAN AND TWO [2] MEMBERS ALL OF WHOM ARE


MEMBERS OF THE PHILIPPINE BAR WITH AT LEAST TWO YEARS PRACTICE
OF LAW.

THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL HAVE
JURISDICTION OVER ALL CASES WHERE THE DISPUTE IS WITHIN A
COOPERATIVE OPERATING NATIONWIDE WHETHER A_ PRIMARY,
SECONDARY, OR TERTIARY COOPERATIVE AND INTER-REGIONAL
DISPUTES BETWEEN OR AMONG COOPERATIVES.

THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL LIKEWISE
HAVE THE EXCLUSIVE APPELLATE JURISDICTION OVER DECISIONS,
ORDERS AND RESOLUTIONS RENDERED/ISSUED BY THE REGIONAL
COOPERATIVE ADJUDICATIVE BOARDS.

THE REGIONAL COOPERATIVE ADJUDICATION BOARD IN EVERY
REGIONAL OFFICE OF THE AUTHORITY SHALL BE COMPOSED OF THREE
[3] MEMBERS, THE CHAIRMAN OF SAID BOARD SHALL BE A MEMBER OF
THE PHILIPPINE BAR WITH AT LEAST ONE [1] YEAR PRACTICE OF LAW.

THE REGIONAL COOPERATIVE ADJUDICATION BOARDS SHALL
ACQUIRE JURISDICTION OVER ALL COOPERATIVE CASES FALLING UNDER
THEIR RESPECTIVE TERRITORIAL JURISDICTIONS ONLY UPON A RECEIPT
OF A CERTIFICATE OF NON-RESOLUTION ISSUED BY THE MEDIATION AND
CONCILIATION COMMITTEE OF THE COOPERATIVE CONCERNED AND/OR
CERTIFICATE OF NON-RESOLUTION ISSUED BY THE FEDERATION AND/OR
UNION TO WHICH THE COOPERATIVE BELONGS.

COOPERATIVE ADJUDICATION BOARDS SHALL ALSO HAVE ORIGINAL
AND EXCLUSIVE JURISDICTION OVER ISSUES INVOLVING PRIMARY,
SECONDARY OR TERTIARY COOPERATIVES IN THEIR RESPECTIVE
JURISDICTION, SUCH AS BUT NOT LIMITED TO:

(1) PETITIONS OF COOPERATIVE FOR BANKRUPTCY AND INSOLVENCY;

(2) COMPLAINTS FOR VIOLATIONS OF THE PROVISIONS OF REPUBLIC
ACT NO. 6938 AND REPUBLIC ACT NO. 6939, AS AMENDED, EXCEPT
THOSE PENAL IN NATURE;

(3) PETITIONS INQUIRING INTO THE LEGAL RIGHTS OF COOPERATIVES,
DIRECTORS OR OFFICERS FOR HOLDING AND/OR EXERCISING
SUCH RIGHTS AND/OR OFFICES.

IN_AID OF THEIR ADJUDICATIVE FUNCTIONS, THE COOPERATIVE
ADJUDICATION BOARDS MAY EXERCISE ANY OR ALL OF THE FOLLOWING:

(1) AWARD DAMAGES, INCLUDING ATTORNEYS FEES;


(2) CAUSE THE CONDUCT OF AN AUDIT, WHETHER FINANCIAL,
MANAGEMENT OR OTHERWISE, ON THE AFFAIRS OF A
COOPERATIVE INVOLVED IN A PENDING CASE;

(3) REQUIRES THE ATTENDANCE OF WITNESSES AND/OR THE
PRODUCTION OF BOOKS, RECORDS AND/OR DOCUMENTS,
THROUGH THE ISSUANCE OF SUBPOENAS AS TESTIFICANDUM OR
SUBPOENAS DUCES TECUM;

(4) ISSUE ADMINISTRATIVE ORDERS, SUCH AS CEASE AND DESIST
ORDERS, PERTAINING TO CONTROVERSIES BROUGHT BEFORE
THEM;

(5) ENLIST THE AID AND SUPPORT OF AND/OR DEPUTIZED ANY LAW
ENFORCEMENT OFFICER IN THE IMPLEMENTATION AND
ENFORCEMENT OF THEIR DECISION, ORDERS OR RESOLUTIONS;
AND

(6) PUNISH ANY PERSON, OFFICERS AND/OR MEMBERS OF A
COOPERATIVE FOR ACTS CONSTITUTING DIRECT OR INDIRECT
CONTEMPT.

DECISIONS, ORDERS OR RESOLUTIONS OF THE REGIONAL
COOPERATIVE ADJUDICATION BOARDS SHALL BE APPEALABLE TO THE
NATIONAL COOPERATIVE ADJUDICATION BOARD WITHIN FIFTEEN [15]
DAYS FROM RECEIPT THEREOF, OTHERWISE, THEY SHALL BECOME
FINAL AND EXECUTORY. THE DECISIONS, ORDERS OR RESOLUTION OF
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL BE
APPEALABLE WITHIN FIFTEEN [15] DAYS FROM RECEIPT THEREOF OF THE
COURT OF APPEALS IN ACCORDANCE WITH RULE 43 OF THE 1997 RULES
OF CIVIL PROCEDURE.

THE NATIONAL COOPERATIVE ADJUDICATION BOARD MAY ISSUE, IN
THE EXERCISE OF ITS APPELLATE JURISDICTION, RESTRAINING ORDERS,
OR WRITS OF PRELIMINARY INJUNCTION AGAINST PROCEEDINGS AND/OR
DECISIONS, ORDERS OR RESOLUTIONS RENDERED/ISSUED BY THE
REGIONAL COOPERATIVE ADJUDICATION BOARDS.

SECTION 10. THE COOPERATIVE DEVELOPMENT COUNCIL. —
THERE IS HEREBY CREATED A NATIONAL COOPERATIVE
DEVELOPMENT COUNCIL WHICH SHALL ACT AS THE ADVISORY BODY
OF THE AUTHORITY ON MATTERS OF POLICIES, PLANS AND

PROGRAMS ON COOPERATIVES, THE COMPOSITION OF WHICH SHALL
BE AS FOLLOWS:

(1) THE CHAIRMAN OF THE AUTHORITY AS THE EX OFFICIO
CHAIRMAN;

(2) ONE [1] REPRESENTATIVE FROM EACH OF THE NATIONAL
FEDERATIONS AND UNIONS OF COOPERATIVES;


(3) THREE [3] REPRESENTATIVES OF NATIONAL NON-
GOVERNMENT ORGANIZATIONS WITH COOPERATIVE,
PROGRAMS APPOINTED BY THE CHAIRMAN FROM AMONG THE
NOMINEES OF THE NON-GOVERNMENT ORGANIZATION;

(4) ONE [1] REPRESENTATIVE EACH FROM LUZON, THE VISAYAS
AND MINDANAO FROM THE INSTITUTIONS GRANTING DEGREES
IN COOPERATIVES ALL OF WHOM SHALL BE APPOINTED BY THE
CHAIRMAN; AND

(5) ONE [1] REPRESENTATIVE EACH FROM NATIONAL
GOVERNMENT AGENCIES WITH COOPERATIVE PROGRAMS,
GOVERNMENT FINANCIAL INSTITUTIONS AND THE
GOVERNOR'S LEAGUE OF THE PHILIPPINES.

THE REGIONAL, PROVINCIAL, CITY AND MUNICIPAL COOPERATIVE
DEVELOPMENT COUNCILS SHALL LIKEWISE BE CREATED WITH SIMILAR
FUNCTIONS AND COMPOSITIONS AS THAT OF THE NATIONAL,
COOPERATIVE DEVELOPMENT COUNCIL AS FAR AS PRACTICABLE.

THE COUNCIL SHALL MEET AT LEAST AS FOLLOWS: THE NATIONAL.
COOPERATIVE DEVELOPMENT COUNCIL, ANNUALLY; THE REGIONAL
COOPERATIVE DEVELOPMENT COUNCIL, SEMI-ANNUALLY; THE
PROVINCIAL, CITY AND MUNICIPAL COOPERATIVE DEVELOPMENT
COUNCIL, QUARTERLY.

SECTION [10] 11. Transfer of funds and Programs. — [The Cooperative
Development Loan Fund created under Presidential Decree No. 175, as

amended, is hereby transferred from the Department of Agriculture to the
Authority]

[The function of the Fund for Management Training and Assistance
Program granted to the Department of Agriculture by Presidential Decree No. 175,
as amended, is hereby converted into a fund for the development of cooperatives
and may be used for such purpose upon the request of the cooperatives
concerned; Provided, That duly registered cooperatives shall have the right to
establish their own private training centers of federations for purpose of
cooperative development]

[In addition, the Cooperative Marketing Project as created under loan
agreement which are now managed by the Department of Agriculture is likewise
hereby transferred to the Authority] ALL LOANS FUNDS EXCEPT THE FUND
FOR COOPERATIVE MARKETING PROJECT [CMP] THAT ARE IN THE
POSSESSION OF THE COOPERATIVE DEVELOPMENT AUTHORITY SHALL
BE TRANSFERRED TO COOPERATIVE BANKS AS DETERMINED BY THE

COOPERATIVE DEVELOPMENT AUTHORITY AND THE BANGKO SENTRAL
NG PILIPINAS.


SECTION [11] 12. Cooperative in the Education System. - The history,
philosophy, 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.

The role of non- government organization, 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 advancement of their trainees.
Existing training centers for cooperatives may qualify as non-government
organizations under this Act.

State college and universities shall provide technical assistance and
guidance to cooperatives on the communities wherein they operate [upon
request]

SECTION [12] 13. Cooperatives in the Banking System. - The promotion
and development of cooperative bank as part of the Philippine banking system
shall be a major concern of the Authority which shall undertake the necessary
program towards this end in collaboration with the [Central Bank of the Philippines]
BANGKO SENTRAL NG PILIPINAS and the cooperative sector concerned.

SECTION [13] 14, Rule-Making Authority. - The Authority is hereby
authorized to promulgate [after due public hearing and upon approval of the
President] such rules and regulations as may be necessary to implement the
provisions of this ACT. Such implementing rules and regulations shall take effect
within fifteen [15] days after publication thereof in the Official gazette or in two [2]
newspaper of NATIONAL general circulation. [All subsequent amendments to the
implementing rules and regulation shall undergo the same process}

SECTION [14] 15. Prohibition. - No organization shall be allowed to use
the title “cooperative" in its name unless it follows all generally accepted
cooperative principles, applicable cooperative laws, and is duly registered under
this ACT. [Provided, That organizations which have used the word “cooperative”
as part of their nomenclature but which do not qualify as cooperatives under the
provisions of this Act shall have three [3] years within which to qualify and to
register with Authority. If at the end of the three-year period, herein, the said
organizations still do not qualify, it shall be unlawful for the organization to
continue using the word “cooperative” in their names.]

SECTION 15. Information Campaign. - The Cooperative Development
Authority is mandated to conduct a six [6] month information campaign on the
provision of this ACT, beginning three [3] months from the effectivity of this ACT.


SECTION 16. Appropriations. - [The funds needed to carry out the
provisions of this Act shall be charged to the appropriations of the Bureau of
Agricultural Cooperatives Development and the Regional Cooperative
Development Assistance Offices to Regions IX and XIl under the current General
Appropriations Act in addition to the appropriations of other
department/agencies/funds whose function/programs are transferred to the
Authority. Provided, That in its initial year of operations, and additional amount of
not exceeding Sixty Million Pesos [P60,000,000.00] may be requested and drawn
by the Authority from the Contingent Fund of the President. Thereafter, such sums
as may necessary shall be included in the annual General Appropriations Act.]
THE ADDITIONAL AMOUNT NEEDED TO CARRY OUT THE PROVISIONS OF
THIS ACT MAY BE REQUESTED AND DRAWN BY THE AUTHORITY FROM
THE PHILIPPINE AMUSEMENT AND GAMING CORPORATION.
THEREAFTER, SUCH SUM AS MAYBE NECESSARY FOR ITS CONTINUED
IMPLEMENTATION SHALL BE INCLUDED IN THE ANNUAL GENERAL
APPROPRIATIONS ACT.

{SECTION 17. Transitory Provision. - All cooperatives registered under
Presidential Decree Nos. 175 and 775 and Executive Order No. 398 shall be
deemed registered with the Cooperative Development Authority; Provided
however, That they shall submit to the nearest Cooperative Development Authority
office their certificates or registration, copies of their articles of incorporation and
by-laws, and their latest duly audited financial statements within one [1] year for
the effectivity of this Act, otherwise their registration shall be cancelled; Provided
further, the cooperatives created under Presidential Decree No. 1645, shall be
given three [3] years within which to qualify and register with the Authority;
Provided Finally, That after these cooperatives shall have qualified and registered,
the provisions of Section 3 and 5 of Presidential Decree no 1645 shall no longer
be applicable to the said cooperatives.}

[SECTION [16] 17. Repeals. - All acts, PRESIDENTIAL DECREES,
general orders, letters of implementations letters of instruction, regulations or
circulars, or parts thereof, inconsistent with any of the provisions of this ACT are
hereby repealed or modified accordingly. In case of doubt, the same shall be
resolved in favor of the cooperatives.

SECTION [17] 18. Separability Clause. - If for any cause, any part of this
ACT is deemed unconstitutional OR OTHERWISE UNLAWFUL, the rest of the
provisions shall remain in force and effect.

SECTION [18]. 19. Effectivity. - This ACT shall take effect fifteen [15] days
after its publication in the Official Gazette or in two [2] newspaper of NATIONAL
general circulation.

Approved,