ATIVES
RECEIVED
Republic of the Philippinds pare? 2 AUG 2016
HOUSE OF REPRESENTA’
Quezon City, Metro Mani

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RECISTRAZON UNIT

SEVENTEENTH CONGRESS, .
First Regular Session SAND INDE CE

2285

HOUSE BILL NO.

EXPLANATORY NOTE

This bill seeks to amend pertinent provisions of Republic Act No.
9520, otherwise known as the "Philippine Cooperative Code of 2008" that
was enacted on February 17, 2009.

A cooperative is defined as an autonomous association of persons
united voluntarily to meet their common economic, social and cultural
needs and aspirations through a jointly owned and democratically controlled
enterprise. There is one instant in Philippine history where a cooperative
was formed ahead of the passage of the cooperative laws--that was the
agricultural marketing cooperative which the national hero, Dr. Jose Rizal,
had organized in Dapitan while on exile in 1896. Nothing much is recorded
about the cooperative. It may be safe to assume that with the execution of
Dr. Rizal in the same year, the cooperative must have died with him.

When RA 6938 (Cooperative Code of the Philippines) was ordained on
March 10, 1990, the founding fathers aimed to foster the creation and
growth of cooperatives as a practical vehicle for promoting self-reliance and
harnessing people power towards the attainment of economic development
and social justice. The law was patterned after the Raiffeinsen experience in
Germany. They believed that the creation of cooperatives would eventually
encourage the private sector to undertake the actual formation and
organization of cooperatives and would create an atmosphere that is
conducive to the growth and development of these cooperatives.

We cannot downplay the vital role of cooperatives to nation-building.
At the moment, the vision is half- achieved. There are 1,137 cooperatives
listed by the Cooperative Development Authority as of December 31, 2013
contributing Php6.3 Billion of the 4.87% Gross Domestic Product of 2012.


When the Local Government Code of 1991 was enacted, it bestowed for the
provisions for the optional appointment of a cooperatives officer in the
province, city or municipality.

However, if we must consider that State should not just formulate the
creation of Cooperative Office in the provincial, city and municipal
government as optional but rather be institutionalized as mandatory so that
these offices would ensure the provision of technical guidance, financial
assistance and other services to enable said cooperatives to develop into
viable and responsive economic enterprises in the local government units
concerned 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, then the vision will be fully attained.

With the stories of success of provinces and cities with
institutionalized cooperatives office, we feel that it is high time to create the
office in every LGU (province, city or municipality) a compulsory
requirement. By the same token, recognizing the principle of subsidiarity
under which the cooperative sector will initiate and regulate within its own
ranks the promotion and organization, training and research, audit and
support services relating to cooperatives with government assistance where
necessary, the cooperatives officer in the LGU concerned could be
sanctioned by the governor or mayor, as the case maybe, if he is remiss with
these functions.

This proposed measure will fortify the cooperatives format in the
countryside, thus, the LGUs would now be at the forefront of fostering
creation of a Cooperative Development Office that will substantiate the
importance of this idea in conveying sustainable development.

Immediate approval of this bill is earnestly sought.

Imp. Zp

ENGR. CARLITO “Lito” MARQUEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

2285

HOUSE BILL NO.

AN ACT
INSTITUTIONALIZING THE MANDATORY

APPOINTMENT OF COOPERATIVES IN ALL
PROVINCES, CITIES AND MUNICIPALITIES
AMENDING FOR THE PURPOSE SECTION 487
(A) OF REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS “THE LOCAL GOVERNMENT CODE
OF 1991”, AS AMENDED

Be it enacted by the Senate and the House of Representatives in
Congress assembled:

Section 1. Title - This Act shall be known and referred to as
the “Mandatory Establishment of Provincial, City and Municipal
Cooperatives Offices of 2016”.

Section 2. Section 487 of Republic Act No. 7160, otherwise
known as “The Local Government Act of 1991”, as amended,
particularly Title V (Appointive Local Officials Common To All
Municipalities, Cities and Provinces) is hereby amended further
to be read as follows:

“SECTION 487. Qualifications, Powers and Duties. - (a) No
person shall be appointed cooperative officer unless he is a


citizen of the Philippines, a resident of the local government
unit concerned, of good moral character, a holder of a college
degree preferably in business administration with special
training in cooperatives or any related course from a
recognized college or university, and a first grade civil service
eligible or its equivalent. He must have experience in
cooperatives organization and management of at least five (5)
years in the case of the provincial or city cooperatives officer,
and three (3) years in the case of municipal cooperatives
officer. The appointment of the cooperatives officer is
[optional] MANDATORY for the provincial [and] city AND
MUNICIPAL governments.

XXX”

Section 3. Separability Clause. - If any part or section of
this Act is declared unconstitutional, such declaration shall not
affect the other parts or sections of this Act.

Section 4. Repealing Clause. - All laws, presidential
decrees, executive orders, ordinances, circulars, rules and
regulations inconsistent with any provisions of this Act shall be
deemed repealed or modified accordingly.

Section 5. Effectivity Clause. - This Act shall take effect
fifteen (15) days after its complete publication in two (2)
newspapers of general circulation or in the Official Gazette.

Approved;