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SIXTEENTH CONGRESS OF THE REPUBUC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENATE 
S.B.No. 1709 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
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'13 
SEP 18 Pl :32 
Cooperatives are among the major pillars of the people empowerment 
movement They have long been acknowledged and regarded as one of the 
fundamental sources of economic strength in our country. In particular, they play a 
crucial role in agrarian reform and rural development 
Cooperatives playa significant role on economic development, especially in rural 
areas where the absence of large spending power does not attract private investment to 
harness local skills and resources that can uplift the local economy and living standards 
besides exporting produce to distant customer locations in cities. 
This measure seeks to mandate the appointment of cooperatives officers in all 
provincial, city and municipal governments, amending thereby Section 487(a) of 
Republic Act No. 7160, as amended, otherwise known as the Local Government Code o£ 
1991. In this manner, the representation of cooperatives before the local government 
units wherein they operate shall be ensured and the interests of their association and 
their individual members represented. Further, the close interaction between the State 
and the cooperative movement will strengthen the spirit of cooperativism in the 
country. 
In view of the foregoing, the immediate passage of this bill is earnestl::.:~_~ 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
{Offt;" (if tI!e ,St'{'rt'htr~ 
First Regular Session 
·13 
SEP 18 P 1 :32 
SENATE 
S.B. No. 
. RECEIVEH ilY; .. r .. 
Introduced by Senator Manuel '''Lito'' M. Lapid 
AN ACT 
MANDATING THE APPOINTMENT OF COOPERATIVES OFFICERS IN LOCAL 
GOVERNMENT UNITS, AMENDING FOR THE PURPOSE SECTION 487{A) OF 
REPUBLIC ACT NO. 7160, AS AMENDED, 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: 
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SECTION 1. 
Section 487(a) of Republic Act No. 7160, as amended, otherwise 
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known as the Local Government Code of 1991, is hereby amended to read as follows: 
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"SEC. 487. Qualifications, Powers and Duties. - (it.) No person shall be 
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appointed cooperative officer unless he is a citizen of the Philippines, a 
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resident of the local government unit concerned, of good moral character, 
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a holder of a college degree preferably in business administration with 
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special training in cooperatives or any related course from a recognized 
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college or university, and a first grade civil service eligible or itS 
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eqUivalent He must have experience in cooperatives organization and 
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management of at least five (5) years in the case of the prOvincial or city 
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cooperatives officer, and three (3) years in the case of the municipal 
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cooperatives officer. 
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The appointment of the' cooperatives 'officer . is [optional] 
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MANDATORY for the prOvincial [and], city, AND MUNICIPAL 
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governments." 
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SEC. 2. 
Repealing Clause. - Sections 443(a), 454(a) and 463(a) of the Local 
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Government Code of 1991 insofar as the appointment of municipal, city and provincial 
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cooperatives officers is concerned and any law; decree, executive order, and rules and 
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regulations, or portions thereof not consistent with this Act are hereby amended 
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accordingly. 
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SEC. 3. 
Implementing Agency. - The Department of Interior and Local 
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Governance (DlLG) in coordination with the local government units shall promulgate 
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the rules and regulations necessary for the effective implementation of this Act 
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SEC. 4. 
Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in two (2) newspapers of general circulation. 
Approved, 
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