Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT FUND, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Congress has recently enacted Republic Act No. 11364 or the Cooperative 
Development Authority Charter of 2019 and Republic Act No. 11535 or the Local 
Cooperatives Development Officer Act, in recognition of the country’s need to better 
fulfill its obligation to protect and promote the rights of our cooperatives. 
By law, local governments are mandated to deliver basic services to the public, 
including support for the development of cooperatives in their respective jurisdiction. 
This proposed measure seeks to mandate the establishment of a Local Cooperative 
Development Fund (LCDF) and to authorize local government units—i.e., provincial, 
city and municipal—to appropriate at least 2% of their Internal Revenue Allocations 
(IRA) or 2% of their funds for local development projects to cooperatives development 
in their jurisdictions.  
The establishment of the a Local Cooperative Development Fund is necessary 
considering the full devolution of certain national government function to the local 
brought by the Supreme Court's ruling on the Mandanas-Garcia case.  
In view of the foregoing, the immediate passage of this bill Is earnestly sought 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
July 26, 2021
5:59 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT FUND, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
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 "Local Cooperatives 
Development Fund Act." 
Sec. 2. Declaration of Policy. – The State recognized the roles of cooperatives as an 
instrument for economic development, social justice, and equity. 
The State guaranteed that the rights of the cooperatives, anchored upon 
internationally accepted principles and practices, shall be respected, promoted, and 
fulfilled. 
The State mandates national government agencies and local government authorities 
to promote the growth and expansion of cooperatives, provide resources and 
mechanisms to strengthen the cooperatives movement, enable policies and 
programs to transform cooperatives as a viable, responsive, and resilient economic 
enterprise, and facilitate partnerships with other national and local stakeholders. 
The State, except as provided in this Act, shall maintain the principles of 
noninterference in the development and management of cooperatives and guarantee 
that the cooperatives shall be free from conditions that infringe upon its objectives 
and characteristics. 
Sec. 3. Creation of Local Cooperatives Development Fund. – The Local Cooperatives 
Development Fund, herein referred to as LCDF, is hereby created to be managed and 
administered by the provincial, city, and municipal local government units, to support 
local cooperatives development in their jurisdictions. 
Sec. 4. Funding Source. – Provincial, city, and municipal local government units are 
hereby mandated to appropriate at least two percent (2%) of their Internal Revenue 
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Allocations (IRA) for programs, projects, and activities for local cooperatives 
development. Provided that provincial, city, and municipal local government units 
belonging to fourth to sixth income classification, may opt to allocate at least two 
percent (2%) of their funds for local development projects as their LCDF. Provided 
further, the local government units belonging to fourth to sixth income classification 
shall commit to progressively realize this mandate within the next five years upon 
effectivity of this Act. 
Sec. 5. Use of Funds. – The LCDF shall primarily be used to support and fund 
programs, project, and activities directed towards: 
1. Formulation and implementation of a participatory Local Cooperatives 
Development Plan and localized special programs deemed as priorities of the 
local cooperatives.
2. Provision of technical guidance, financial assistance, and other services to 
local cooperatives.
3. Promotion, organization, and mobilization of local cooperatives as a viable and 
responsive social and economic development enterprise and to strengthen the 
cooperatives movement.
4. Provision of capacity development and capacity-building initiatives and 
activities for local cooperatives.
5. Support the plans, programs, and activities of the local cooperatives' 
development councils, the local cooperatives development officers, local 
federation of cooperatives, and local cooperative union in line with its mandates 
under existing laws.
Sec. 6. Implementing Rules and Regulations. – The Cooperatives Development 
Authority and the Department of Interior Local Government shall, in consultation with 
the cooperative sector and concerned leagues of local governments, formulate, and 
disseminate the IRR within ninety (90) days since the effectivity of this Act. 
Sec. 7. Congressional Oversight. – Upon the effectivity of this Act, the Joint 
Congressional Committee on Cooperatives (JCOCC), created under Republic Act No. 
9520, shall review, and monitor the implementation of this Act. 
Sec. 8. Repealing Clause – All laws, decrees, executive orders, rules and regulations, 
issuances, or parts thereof inconsistent with this Act are hereby repealed or amended 
accordingly. 
Sec. 9. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or a newspaper of general circulation. 
Approved,