TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
y'5fficp of lii' '.-j
25 JUL 14 P3 59
SENATE
r* O
S.B. No. O i O
RECEIVED BY:
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
FUND,
EXPLANATORY NOTE
This bill seeks to institutionalize stronger government support for the 
cooperative movement by mandating the establishment of a Local Cooperative 
Development Fund (LCDF) in every province, city, and municipality. Under this 
measure, local government units (LGUs) shall be authorized—and required—to 
allocate at least 1% of their Internal Revenue Allotment (IRA) or 2% of their local 
development funds for programs, projects, and activities supporting cooperative 
development within their jurisdictions.
The proposed measure is rooted in the constitutional recognition of 
cooperatives as instruments for promoting just and equitable social and economic 
development. In alignment with this constitutional mandate, the State has enacted 
key laws such as Republic Act No. 11364 or the Cooperative Development Authority 
(CDA) Charter of 2019, and Republic Act No. 11535 or the Local Cooperatives 
Development Officer Act.
These laws reflect the State's continuing commitment to respect, promote, and 
protect the rights of cooperatives, and to support their growth in accordance with 
internationally accepted cooperative principles, values, and practices.
Local governments play a vital role in implementing this commitment. Under 
existing law, LGUs are mandated to deliver basic services to the public—including 
support for cooperatives. Local cooperatives serve not only as economic actors but 
also as vehicles for community empowerment, especially for marginalized sectors. 
They contribute significantly to social service delivery, poverty alleviation, and 
sustainable local economic development.
In light of the Mandanas-Garcia ruling of the Supreme Court, which took effect 
in 2022 and expands the fiscal autonomy of LGUs through the full devolution of certain
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national functions and increased IRA shares, this bili leverages that additional fiscal 
space to invest in local cooperative development.
The LCDF shall support initiatives such as:
- Participatory local cooperative development planning;
- Provision of technical and financial assistance;
- Promotion, organization, and mobilization of cooperatives;
- Capacity-building for cooperative leaders, members, and partners;
- Strengthening of Local Cooperative Development Councils and Offices.
By formalizing the allocation of local resources to cooperatives, this measure 
aims to further empower cooperatives as key drivers of inclusive and sustainable 
development.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
RISA HONTIVEROS " 
Senator


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-W- V I V .
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Ot til' r-
25 JUL 14 P3 59
SENATE
S.B. No. fi73
RliCCiVL'j til
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
FUND,
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
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managed and administered by the provincial, city, and municipal local government
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units, to support local cooperatives development in their jurisdictions.
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Sec. 4. Funding Source. - Provincial, city, and municipal local government units
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are hereby mandated to appropriate at least two percent (2%) of their Internal
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Revenue Allocations (IRA) for programs, projects, and activities for local cooperatives
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development. Provided that provincial, city, and municipal local government units
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belonging to fourth to sixth income classification, may opt to allocate at least two
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percent (2%) of their funds for local development projects as their LCDF. Provided
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further, the local government units belonging to fourth to sixth income classification
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shall commit to progressively realize this mandate within the next five years upon
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effectivity of this Act.
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Sec. 5. Use of Funds. - The LCDF shall primarily be used to support and fund
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programs, project, and activities directed towards:
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1. Formulation and implementation of a participatory Local Cooperatives
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Development Plan and localized special programs deemed as priorities
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of the local cooperatives.
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2. Provision of technical guidance, financial assistance, and other services
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to local cooperatives.
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3. Promotion, organization, and mobilization of local cooperatives as a
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viable and responsive social and economic development enterprise and
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to strengthen the cooperatives movement.
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4. Provision of capacity development and capacity-building initiatives and
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activities for local cooperatives.
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5. Support the plans, programs, and activities of the local cooperatives'
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development councils, the local cooperatives development officers,
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local federation of cooperatives, and local cooperative union in line with
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its mandates under existing laws.
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Sec. 6. Implementing Rules and Regulations. - The Cooperatives Development
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Authority and the Department of Interior Local Government shall, in consultation with
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the cooperative sector and concerned leagues of local governments, formulate, and
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disseminate the IRR within ninety (90) days since the effectivity of this Act.


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Sec. 7. Congressional Oversight - Upon the effectivity of this Act, the Joint
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Congressional Committee on Cooperatives (JCOCC), created under Republic Act No.
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9520, shall review, and monitor the implementation of this Act.
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Sec. 8. Repealing Clause - All laws, decrees, executive orders, rules and
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regulations, issuances, or parts thereof inconsistent with this Act are hereby repealed
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or amended accordingly.
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Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or a newspaper of general circulation.
Approved,