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‘SEVENTEENTH CONGRESS|
First Regular Session

HOUSE BILLNo.__24¢

Introduced by Representative Rico B. Geron

EXPLANATORY NOTE

Section 2 of Republic Act No. 6938 expressly states that it is the declared policy of the state 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. Thus, the state ensures to promote and protect the cooperatives’ right to sustenance
and viability.

The primary objective of a cooperative is to provide goods and services and to attain increased
income, savings and investments for the benefit of its members. The right of the cooperatives
to own and hold public or private agricultural land plays an important mechanism in the
realization of the cooperatives’ objectives to generate funds, provide housing for members,
establish agricultural and industrial enterprises and create public markets. With this, the right
of the cooperatives to acquire and own lands should not be hampered and be subjected to
stringent limitations provided for under existing laws. The legislative record shows that the
House of Representatives has approved on third reading House Bill 3488 and transmitted to
Senate of the Philippines but the said bill was not passed into law because of lack of material
time.

This bill promotes the viability and growth of cooperatives as instruments for social justice and
economic development by granting the cooperatives the right to own, purchase, receive, take
or retain, any public or agricultural land, not exceeding fifty (50) hectares.

To ensure that the noble objectives of this bill shall be faithfully attained, and to prevent the
creation of unscrupulous cooperatives, the right granted under this bill shall be applied only to

cooperatives existing and formed prior to the effectivity of R.A. 6938.

this bill earnestly sought.

fist Representative



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

2473
HOUSE BILL No. © = ¢ ©

Introduced by Representative Rico B. Geron

AN ACT STRENGTHENING THE RIGHT OF COOPERATIVES TO DEVELOP INTO VIABLE AND
RESPONSIBLE ECONOMIC ENTERPRISES, AMENDING FOR THIS PURPOSE REPUBLIC ACT 6938
BY ADDING SECTION 9-B ON COOPERATIVE POWERS AND CAPACITIES.

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

SECTION 1. Section 9 of Republic Act No. 6938 or the Cooperative Code of the Philippines, is
hereby amended with the addition of the following Article, to read as follows:

“SECTION 9-B: Cooperative Right to Own Land. -- Every cooperative shall have the right
to own, purchase, receive, take or retain, any public or agricultural land, the size of which shall
not exceed fifty (50) hectares. Provided, that this right may be exercised only by cooperatives
organized, established and registered prior to the effectivity of this Act.”

SECTION 2. Repealing Clause. ---- All laws, decrees, executive orders, rules and regulations,
issuances or parts thereof inconsistent with this Act are hereby repealed or amended
accordingly.

SECTION 3. Effectivity. —-- This Act shall take effect fifteen (15) days after its publication in the
Official Gazette.

Approved.