SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
"14 
JAN 28 P 5 :04 
SENATE 
S.B. No.2 0 91 
1(£,;(, F I \t· ", I . 
, 
, • 
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Introduced By Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
The cooperative movement gives an opportunity for all sectors of our society to 
participate in economic growth. The Cooperative Code of the Philippines allows the 
formation and registration of service cooperatives. However, under Republic Act No, 
5487, as amended, as well as the implementing rules and regulations promulgated 
pursuant to said Act, only juridical persons registered with the Securities and Exchange 
Commission (SEC) and the Department of Trade and Industry (DTI) are allowed to 
apply for a license to operate a security agency. 
The conflict between the two laws has caused service cooperatives engaging in 
security services to register with the SEC or DTI in order to obtain licenses to operate. 
This creates confusion with regard to the treatment that should be extended to these 
entities. 
In order to strengthen the goals of the cooperative movement in our country as 
well as to promote cooperative undertakings of expanded services and businesses, the 
present measure provides for an amendment to RA. 5487 to specifically include 
cooperatives amongst juridical persons who may apply for licenses to operate security 
agencies. 
Hence, the undersigned sponsor urges the passage of the present !!U!a£.IJU~ 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'14 
JAN 28 f'5 :04 
SENATE 
S.B. No.2..U91 
Introduced By Senator Manuel "Lito" M Lapid 
AN ACT RECOGNIZING SECURITY COOPERATIVES AND AMENDING 
THEREFOR SECTION 3 OF REPUBLIC ACT NO. 5487, OTHERWISE KNOWN AS 
"THE PRIVATE SECURITY AGENCY LAW" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 
1. 
This Act shall be known as the "Recognition of Security 
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Cooperatives Act" 
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SEC. 2. 
Section 3 of Republic Act No. 5487 otherwise known as "The 
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Private Security Agency Law" is hereby amended to read as follows: 
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"Section 3. Definition of Terms. - (a) Person. As used in this Act, person 
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shall include not only natural persons but also juridical persons such as 
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ANY corporation, partnership, company or association duly registered 
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with the Securities and Exchange Commission and/or [Bureau of 
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Commerce] DEPARTMENT OF TRADE OR INDUSTRY, OR ANY 
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COOPERATIVE DULY REGISTERED WITH THE COOPERATIVE 
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DEVELOPMENT AUTHORITY. 
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xxx" 
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SEC. 3. The Philippine National Police, in coordination with the Cooperative 
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Development Authority and other concerned government agencies, shall formulate the 
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necessary rules and regulations for the effective implementation of this Act. 
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18 
SEC. 
4. 
Should any provision or part of this Act be declared invalid or 
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unconstitutional, the remaining parts or provisions not affected thereby shall remain in 
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full force and effect. 
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SEC. 5. All laws, decrees, executive orders, issuances, rules and regulations, or 
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parts thereof inconsistent with the provisions of this Act are hereby repealed or 
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modified accordingly. 
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SEC. 6. This Act shall take effect fifteen (15) days after its publication in at least 
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two (2) newspapers of general circulation. 
Approved, 
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