SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 1341
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of H)f £»rcrrfarp
FEB 21 
P 3 : 1 7
received 6V;
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Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT CREATING THE COOPERATIVE DEVELOPMENT COMMISSION, REPEALING FOR THE 
PURPOSE REPUBLIC ACT NO. 6939, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
Onion farmers in Nueva Ecija, Central Luzon used to be dependent on volatile 
market prices, ever-changing demand, and low prices that prevented them from earning 
enough to climb out of poverty.
But with the help of an NGO, they organized themselves into the Kalasag Farmers 
Producers Cooperative. With the right training, and access to credit, the cooperative 
secured a slot as the onion supplier of the country's largest fast-food chain. This access to 
sustained demand from a larger market has greatly increased their income and helped them 
provide a better future for their families.
This was the vision for the Cooperative Development Authority, created when 
President Corazon C. Aquino signed Republic Act 6939 into law on March 10, 1990 - to 
support the "growth of cooperatives as instruments fo r social justice and economic 
development."
More than two decades later, Filipinos have greatly benefited from the organization 
of cooperatives that give small-scale entrepreneurs and producers the chance to find their 
way out of poverty and onto financial independence and prosperity.
There are currently 11,524 reporting cooperatives registered under the CDA that 
have generated 246,613 employees for full time employment, 646,819 employees for part 
time employment and 31,525 for volunteers with Php7,560,115,999.58 total amount of 
taxes withheld/paid to the national government.
Cooperatives are a vital part of inclusive economic growth having a total volume of 
business of Php299,149,545,279.00 and a total asset of Php300,343,033,223.00. In the total 
volume of business, billions of loans and credits has been availed by cooperative members 
for their financial and business needs with lesser interest rates at the same time earning


dividends and patronage refunds out of its every transaction.
The cooperative is a good mechanism for rurai economic development and poverty 
alleviation. It is time we improve the Cooperative Development Authority by reorganizing 
and further strengthening the agency so they may meet the huge demands of its twin 
mandates of regulation and development of cooperatives.
Let's bolster our support for cooperatives and empower more Filipinos to overcome
poverty.
In view of the foregoing, immediate passage of this bill is earnestly sought.
PAOLO'BENIGNO "BAMf' AQUINO IV


SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
Itf of IliC’ £jfricfan»
*17 
FEB 21 
P 3 :1 7
SENATE
S.B. No. 
i
RECEIVkDSV:
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT CREATING THE COOPERATIVE DEVELOPMENT COMMISSION, REPEALING FOR THE 
PURPOSE REPUBLIC ACT NO. 6939, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. -  This Act shall be known as the "Cooperative Development
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Commission Charter Act".
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SEC. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to 
promote the viability and growth of cooperatives as instruments of poverty alleviation, 
social justice and economic empowerment and to create an agency, in fulfillment of the 
mandate in Section 15, Article XII of the 1987 Philippine Constitution. As such, the State 
recognize cooperatives as associations organized for the economic and social betterment of 
their members, operating business enterprises based on mutual aid, and founded upon 
internationally accepted cooperative principles and practices.
SEC. 3. Cooperative Development Commission. -  The Cooperative Development 
Commission, herein referred to as the "Commission", is hereby created to carry out the 
provision of this Act and those of Republic Act No. 9520, otherwise known as the "Philippine 
Cooperative Code of 2008." The Commission shall have its principal place of business in 
Metro Manila, and shall organize and maintain regional executive offices and provincial field 
offices all over the country.
SEC. 4. Powers, Functions and Responsibilities. -  The Commission shall have the 
folloyving powers and functions:
(a) Conduct a national periodic assessment and comprehensive study on the socio­
economic impact of cooperatives in the country and in the provinces;
(b) Formulate, adopt, and implement integrated plans and programs on cooperative 
development consistent with the national socio-economic policy of the 
government in consultation with the cooperative sector, national agencies, local 
government units (LGU's), private sector, non-governmental organizations 
(NGOs), people's organizations (POs) and other cooperative stakeholders;


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(c) Establish, in consultation with the cooperative sector, the necessary standards, 
rules or regulations for cooperative governance, 
management, financial 
performance, training and education undertaken by federations or unions and 
other cooperative training institutions;
(d) Register all types and categories of cooperatives including its divisions, mergers 
or consolidations;
(e) Compel the cooperative to call a General Assembly in accordance with 
cooperative laws and the by-laws under the supervision of the Commission, 
subject to the criteria or condition to be defined in the implementing rules and 
regulations issued for this purpose;
(f) Order the cancellation or revocation of the Certificate of Registration after due 
notice and hearing;
(g) Issue cease and desist orders to cooperatives and responsible parties;
(h) Require cooperatives to submit reports on the progress of operation;
(i) Recognize a national apex cooperative organization representing all types of 
cooperatives;
(j) Prescribe and collect reasonable fees, fines or charges in the performance of its 
registration and regulatory functions;
(k) Suspend officers of cooperative after due process and require the general 
assembly to replace the suspended officers;
(l) Develop, create and manage funds for training and financing projects of 
cooperatives;
(m) Provide technical and financial support to cooperatives;
(n) Provide facilities, equipment and infrastructure support services to cooperatives;
(o) Provide capacity building within the cooperatives through technical and training 
services;
(p) Provide technical assistance on governance and management;
(q) Identify and provide access in the availment of technical marketing and financial 
services;
(r) Provide assistance on cooperative product development and facilitate marketing 
of cooperative products both in domestic and international markets;
(s) Participate and promote the involvement of cooperatives in the domestic and 
international trade fairs and exhibitions;
(t) Develop and prescribe training programs for all types and categories of 
cooperative;
(u) Capacitate and train officers of newly registered micro cooperatives for a period 
of three (3) years;
(v) Gather, analyze, disseminate and publish information for cooperatives;
(w) Promote 
educational 
and 
technological 
exchange 
between 
and 
among 
cooperative leaders with their international counterparts;
(x) Grant awards, recognition and incentives to qualified cooperatives and partners;
(y) Hear, decide and settle disputes between and among members, employees, 
officers, and director of cooperatives, and between and among cooperatives; 
which were not settled amicably in accordance with the conciliation or mediation 
mechanisms;
(z) Issue subpoenas and summon witnesses to appear in any proceedings of the 
Commission and in appropriate cases, order the examination of all documents.


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papers, files and records of any cooperative or person under investigation as may 
be necessary for the proper disposition of cases before it;
(aa) 
Conduct an investigation, file necessary charges, discipline and remove erring 
cooperative officials, members and employees;
(bb) 
Implement and enforce its decision with the assistance of deputized law 
enforcement agencies or the local government unit concerned as may be 
necessary;
(cc) 
Summarily punish for direct contempt any person guilty of misconduct in the 
presence of the Commission which seriously interrupts any hearing or inquiry 
with a fine of not more than Five Thousand pesos (P5,000.00) or imprisonment 
of not more than ten (10) days, or both. Acts constituting indirect contempt as 
defined under Rule 71 of the Rules of Court shall be punished in accordance with 
the said Rule;
(dd) 
Establish a consultative mechanism in order to provide the cooperative 
sector a system for maximum participation on matters of government plans, 
projects and policies related to cooperatives.
(ee) 
Review contract or agreements entered into by cooperatives with the private 
sector as requested by the cooperative;
(ff) 
Conduct special audits on the finances, operations, and management of 
cooperatives;
(gg) 
Establish, operate and maintain a Cooperative Development Academy in 
every administrative region in coordination with the State Colleges and 
Universities (SUCs), Commission on Higher Education (CHED), and Technical 
Education and Skills Development Authority (TESDA);
(hh) 
Establish, operate and maintain Regional Offices and Provincial Field Offices 
in all administrative regions and provinces; and 
(ii) Exercise such other powers and functions as maybe necessary to implement the 
provisions of the Philippine Cooperative Code of 2008.
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SEC. 5. Organization. -  The Commission shall have a Board of Commissioners, the 
Executive Director, Bureaus, Services, Regional Offices and Provincial Offices.
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The Board of Commissioners, hereinafter referred to as the Board, shall be the 
collegial policy-making and governing body of the Commission. The Board shall be 
composed of the Chairperson and six (6) members of the Board of Commissioners with two 
(2) Commissioners each representing Luzon, Visayas and Mindanao. They shall be appointed 
by the President of the Republic of Philippines and shall serve for a fixed term of six (6) 
years without reappointment.
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Any vacancy in the Board shall be filled by appointment of the President in 
accordance with the provision of this section: Provided, That a member so appointed shall 
serve only for the unexpired term: Provided, further. That the incumbent Chairperson and 
members of the Board shall continue to serve and act as Chairperson and members of the 
present Board up to the end of their terms as provided under Republic Act No. 6939.
SEC. 6. Powers and Functions o f the Board. -  The Board as the policy making and 
governing body shall have the following powers and functions:


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(a) Provide executive direction to the Commission, delineating the respective roles 
of the governments, LGUs, POs, private sector and NGOs in the promotion and 
development of the cooperative sector;
(b) Establish linkages with national and international organizations involved in 
cooperative promotion, organization and development;
(c) Approve annual, medium-term and long-term cooperative development plans of 
the Commission consistent with the over-all socio-economic development policy 
of the national government;
(d) Formulate policies, rules and regulations consistent with the provisions of R.A. 
No. 9520;
(e) Adopt implementing rules and regulations for the conduct of the internal 
operations of the Commission;
(f) Organize the operating structure and functions of the Commission. No changes in 
the approved organizational structure including the transfer of personnel shall be 
effected without the approval of the Board;
(g) Act as oversight for policy and developmental interventions of cooperatives and 
their federations and unions;
(h) Conduct regular policy consultations with the cooperative sector, LGUs, 
government agencies, NGOs, POs and other stakeholders on the Commission 
policies, programs and initiatives;
(i) Decide cases involving cooperatives that are submitted to the Board for 
resolution;
(j) Appoint the Executive Director, Service Directors, Bureau Directors, Regional 
Directors and other officials and employees in the Commission;
(k) Authorize the conduct of intervening programs and activities of the Commission;
(l) Approve the Annual Procurement Plan, Manual of Operation and Work and 
Financial Plan of the Commission;
(m) Authorize the Chairperson or the Executive Director to enter into contracts or 
agreements in behalf of the Commission;
(n) Approve the division, merger, consolidation, dissolution or liquidation of 
cooperatives;
(o) Adopt and submit the annual proposed budget of the Commission to the 
President through the Department of Budget and Management;
(p) Attend and participate in domestic and international forums, trade fairs and 
exhibition, together with the cooperatives, for cooperative product marketing;
(q) Create an inter-agency convergence mechanism for the development of micro 
and small cooperatives;
(r) Adopt and submit position papers on bills and legislative measures affecting the 
cooperative sector filed before the Congress of the Philippines;
(s) Advise the President on the promulgation of executive and administrative orders 
and circulars and the formulation of regulatory and legislative proposals affecting 
cooperative development;
(t) Exercise disciplinary powers over officers and employees of the Commission in 
accordance with existing laws, including their investigation and the designation 
of a committee/panel or officer to conduct such investigation;


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(u) Formulate rules and regulations and exercise such other powers as may be 
required to implement the objectives of this Act;
(v) Represent the Commission in all undertakings where its presence is required; 
and
(w) Perform such other functions and tasks as may be provided or required by law or 
assigned by the President.
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SEC. 7. Qualifications o f the Members o f the Board. -  The Chairperson or a member
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of the Board who shall be appointed must possess the following qualifications:
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(a) Be a natural born Filipino citizen of good moral character and of proven integrity;
(b) Be at least 35 years old to 60 years old at the time of the appointment and in 
good health;
(c) Have a Doctoral Degree with a dissertation related to cooperative development 
in the case of the Chairperson and a Master's Degree with a thesis related to 
cooperative development in the case of a member of the Board;
(d) Have five (5) years of experience as an officer or member of a cooperative or as 
an officer or member of an NGO engaged in cooperative development;
(e) Have five (5) years of experience in government service;
(f) In the case of members of the Board, be a resident of the Philippines, the 
Commissioners must be resident of the region represented for at least ten (10) 
years; and
(g) Be recommended and endorsed by a federation and/or union of cooperatives 
operating in good standing under the provision of this Act and R.A. No. 9520.
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Any person appointed as Chairperson or members of the Board shall, upon 
appointment, divest himself of any direct or indirect pecuniary interest or dealings with any 
cooperative.
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SEC. 8. Removal o f a Member o f the Board. -  The President of the Philippines may
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remove any member of the Board for any of the following reasons:
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(a) The member is subsequently disqualified under the provision of this Act;
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(b) The member becomes physically or mentally incapacitated to properly discharge
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the duties and responsibilities of the position and such incapacity has lasted
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more than six (6) months; or
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(c) The member is guilty of acts or omissions which are fraudulent or illegal in
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character or which are manifestly opposed to the aims, objectives and interest of
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the Commission and the cooperative sector.
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SEC. 9. Meetings o f the Board. -  The Board shall meet at least twice a month for the
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transaction of its regular business. Special meetings may be called by the Chairperson with
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the concurrence of the majority of the members of the Board to consider specific matters. A
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majority vote by the entire Board shall be required for a decision. All regular and special
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meetings of the Board shall be held at the head office in Metro Manila or in a place agreed
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by the Board.


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SEC. 10. Chairperson and Commissioners. -  The Chairperson shall be the head of the
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agency with a rank and privileges of a Secretary. The Commissioners will also serve as the
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Oversight of the different types of cooperatives with the rank and privileges of an
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Undersecretary.
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SEC. 11. Executive Director. -  The Executive Director is a career officer that will act
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as the Chief Operations Officer of the Board with the rank and privileges of an Assistant
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Secretary. The Executive Director shall have a Deputy Executive Director with rank and
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privileges of a Director IV.
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SEC. 12. Bureaus. The Bureaus of the Commission shall consist of the Bureau of
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Registration and Regulation, Bureau of Legal and Adjudication, Bureau of Education,
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Information, Training and Advocacy, and Bureau of Economic Affairs and Credit Surety Fund
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Monitoring and Cooperative Support Services. Each of these Bureaus shall be headed by a
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Bureau Director and Assistant Bureau Director with a rank and privileges of Director III and
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Director I, respectively.
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SEC. 13. Services. -  The Services of the Commission shall consist of the
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Administrative Service, Finance Service, Management Information System Service, and
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Planning Service. Each of these Services shall be headed by a Service Director with a rank
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and privileges of a Director I with division chief, section chief and support personnel.
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SEC. 14. Regionai Offices and Provincial Offices. -  There shall be Regional Offices in
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every political and administrative region and Provincial Offices in every province in the
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country.
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Each regional office shall be headed by a Regional Director with a rank and privileges 
of a Director III. There shall be five (4) divisions in every regional office consisting of the 
Administrative and Finance Division (AFD), Registration and Regulation Division (RRD), 
Education, Information, Training and Advocacy (EIATD), Legal and Adjudication Division 
(LAD), Economic Affairs and Cooperative Support Services Division (EACSSD). Each division is 
composed of a division chief and support personnel.
The provincial office will be composed of the Senior Cooperative Development 
Specialist (SCDS) acting as Provincial Cooperative Officer, Cooperative Development 
Specialists (CDS II) as Field Personnel, two support clerical/data encoder personnel and a 
driver.
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SEC. 15. Powers and Functions o f the Chairperson. -  The Chairperson of the
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Commission shall have the following powers and functions:
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(a) Preside over the meetings of the Board;
(b) Cause the execution and compliance of cooperative laws and other pertinent 
laws and rules and regulations;
(c) Execute approved plans and policies of the Board of Commissioners by directing 
all personnel concerned through appropriate issuances or directives and/or 
through appropriate coordination and supervision;


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(d) Represent the Commission in the Cabinet meetings if required by the Office of 
the President;
(e) Sign all policy-related issuances and directives in the discharge of the legal, 
developmental, and other pertinent functions of the Commission and direct their 
implementation;
(f) Direct and supervises the Executive Director in managing the day-to-day 
operations of the Commission;
(g) Represent the Commission in the governing board of Land Bank of the 
Philippines;
(h) Convene and preside over the meetings of the Management Committee 
(ManCom);
(i) Represent the Commission in the budget deliberations of the Congress of the 
Philippines;
(j) Represent the Commission in international conferences such as International Co­
operative Alliance (ICA), ASEAN Centre for the Development of Agricultural 
Cooperative 
(ACEDAC), 
Network 
for 
the 
Development 
of 
Agricultural 
Cooperatives in Asia and the Pacific (NEDAC), ASEAN Business Cooperative 
Forum, and other international events;
(k) Represent the Commission in the inter-agency bodies like the National Anti- 
Poverty Commission (NAPC), Quedan and Rural Credit Guarantee Corporation 
(QUEDANCOR), Presidential Agrarian Reform Council (PARC) and others;
(l) Sign contracts and agreements as authorize by the Board;
(m) Report to the President of the Philippines and Congress of the Philippines on the 
performance and accomplishment of the Commission on a periodic basis;
(n) Cause the submission to the Board of the required reports in the progress and 
evaluation of plans/programs/and policies including financial reports;
(o) Represent the Commission in official functions of government, cooperatives, and 
other organizations here and abroad and other undertakings where its presence 
is required;
(p) Delegate some of the above functions to the members of the Board; and
(q) Perform such other related functions as may be assigned from time to time by 
the President or by the Board of Commissioners and as required by law, rules 
and regulations.
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SEC. 16. Powers and Functions o f the Executive Director. -  The Executive Director of
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the Commission shall have the following powers and functions:
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(a) Oversee the day to day operations of the Cooperative Development Commission;
(b) Recommend policies and programs for the development of cooperative 
programs;
(c) Implement 
the 
policies 
and 
programs 
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adopted 
by 
the 
Board 
of 
Commissioners;
(d) Implement rules and regulations necessary to carry out the Board directives and 
policies;
(e) Delegate authority for the performance of any function to officers and 
employees under his direction;
(f) Discipline the Commission's personnel subject to the confirmation of the Board;


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(g) Convene and preside over the meetings of the Executive Committee (ExeCom);
(h) Prepare the proposed annual and supplemental budgets of the Commission for 
the consideration and approval of the Board;
(i) Implement a human resource management system consistent with the Civil 
Service Commission that will promote professionalism and excellence in 
accordance with sound principles of management;
0) Prepare, consolidate and submit periodic reports for the consideration of the 
Board;
(k) Prepare the annual work and financial plan and annual procurement plan;
(l) Sign contracts and agreements as authorize by the Board;
(m) Represent the Commission in all undertakings where its presence is required; 
and
(n) Perform such other functions as maybe ordered by the Board and or provided by 
law.
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SEC. 17. Powers and Functions o f the Regional Director. -  The Regional Director of
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the Commission shall have the following powers and functions:
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(a) Approve the registration of cooperatives and their federations and unions;
(b) Exercise direct supervision and control over all the organizational units of the 
regional and provincial field offices including recommending to the Board 
through the Executive Director the appointment of personnel and disciplinary 
actions as may be necessary for the effective management of the regional office;
(c) Implement policies, plans, programs, projects, rules and regulations of the 
Commission;
(d) Provide and deliver efficient and effective service to the constituents;
(e) Represent the Commission in the Regional Development Council (RDC) and other 
administrative and legal bodies in the region;
(f) Coordinate and establish harmonious linkages with other regional government 
offices and departments;
(g) Coordinate effectively with Local Government Units, NGOs, POs and the private 
sector in the promotion, organization and development of cooperatives in the 
area of his/her jurisdiction; and
(h) Perform such other functions as may be provided by law or assigned by the 
Board.
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SEC. 18. Board o f Advisers. -  There shall be a constituted Board of Advisers which
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shall meet the Commission at least once a year to assist it in aligning its policies and plans
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with the socio-economic and developmental needs of cooperatives. The Board of Advisers
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shall be composed of the following:
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(a) Director General of the National Economic Development Authority as Chairman;
(b) Chairperson of the Cooperative Development Commission as Co-Chairman;
(c) Secretary of the Department of Trade and Industry;
(d) Secretary of the Department of Science and Technology;
(e) Secretary of the Department of Labor and Employment;
(f) Secretary of the Department of Agriculture;


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(g) Secretary of the Department of Agrarian Reform;
(h) Secretary of the Department of Education;
(i) Secretary of the Department of Transportation;
(j) Secretary of the Department of Social Welfare and Development;
(k) Secretary of the Department of Environment and Natural Resources;
(l) Chairperson of Housing and Urban Development Council;
(m) Chairperson of the Apex Cooperative; and
(n) Chairperson of the National Cooperative Coordinating and Development Council.
SEC. 19. Representation in the Governing Board o f Land Bank o f the Philippines. - 
The Commission represented by the Chairperson or its authorized representative shall sit as 
a regular member in the governing board of the Land Bank of the Philippines.
SEC. 20. Representation in the Regional Development Councils. - The Commission 
represented by its Regional Executive Directors will sit as regular members with voting 
rights in all Regional Development Councils.
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SEC. 21. Cooperative Development Fund. - A Cooperative Development Fund,
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hereinafter referred to as the Fund, is hereby established exclusively for the development of
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cooperatives in the entire country and for the operationalization of the Cooperative
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Development Academy. The fund shall be appropriated from the following sources:
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(a) Proceeds from the registration and regulation fees of cooperatives; and
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(b) The equivalent of one percent (1%) of the gross sales of the lotto operation of
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the Philippine Charity Sweepstakes Office (PCSO);
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(c) The equivalent of one percent (1%) of the gross income of the Philippine
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Amusement and Gaming Corporation (PAGCOR);
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(d) Foreign aid and donations; and
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(e) Other sources as prescribed by the Commission.
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SEC. 22. Management and Administration o f the o f the Cooperative Development
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Fund. -  The Fund shall be administered by the Commission. For sound and judicious
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management of the Fund, the Commission shall appoint a reputable government financial
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institution as portfolio manager of the Fund, subject to the following conditions:
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(a) A portion of the Fund shall be utilized for the creation and maintenance of the
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Cooperative Development Academy as provided in Sec. 26; and
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(b) At least 50% of the Fund shall be spent on cooperative financing, product
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development, market development, infrastructure support and other
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cooperative support services.
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SEC. 23. Power to Register Cooperatives. -  The power to register cooperatives shall
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be vested solely on the Commission pursuant to the provisions of R.A. No. 9520.
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SEC. 24. Prohibition. -  Except as provided for under Article 130 of R.A. No. 9520, the
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use of the word "cooperative" by any person or organization unless duly registered with the


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Cooperative Development Commission shall be prohibited and shall be penalized under
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Article 140 of the same Code.
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SEC. 25. Settlement o f Disputes. — Disputes within or between cooperatives or 
disputes within or between the federation or unions shall be mediated, conciliated or 
settled in accordance with this Act, Article 137 of R.A. 9520 and its implementing rules and 
regulation or under R.A. 9285, otherwise known as the Alternative Dispute Resolution Act of 
2004.
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SEC. 26. Cooperatives in the Educational System. -  The history, philosophy, 
concepts, values, principles and practices of cooperatives and their role as a factor in the 
national economy shall be integrated in the curriculum of the basic education, higher 
education and vocational education systems.
The Commission shall establish and maintain a Cooperative Development Academy 
with international standards and practices. The said academy for initial implementation 
shall advocate good governance standards towards sustainability of cooperatives and 
professionalization of cooperative management. The academy shall be run under the 
Bureau of Education, Information, Training and Advocacy in partnership with the State 
Colleges and Universities (SUCs), Commission on Higher Education (CHED), Technical 
Education and Skills Development Authority (TESDA), private sector and non-government 
organizations engaged in cooperative promotion, organization, research and education.
SEC. 27. Organization o f the Commission. -  The Commission shall be organized 
within one hundred twenty (120) days from the effectivity of this Act.
SEC. 28. Transitory Provisions. -  Upon the effectivity of this Act, the Cooperative 
Development Authority created under Republic Act 6939 shall be abolished and the 
personnel of the Cooperative Development Authority shall be transferred to the 
Commission: Provided, That they possess the necessary qualifications, and shall not suffer 
any loss of seniority or rank or decrease in emoluments.
In the organization and staffing of the Commission, the CDA personnel shall be given 
preference in the promotion subject to civil service rules and regulations and rules of the 
Organization, Position Classification and Compensation Bureau of the Department of Budget 
and Management (DBM); provided that those who shall not be absorbed by the 
organization shall be allowed to retire under existing retirement laws, rules and regulations.
All cooperatives registered under Republic Act No. 6938 shall be deemed registered 
with the Cooperative Development Commission and shall be automatically be given a 
certificate of registration under the name of the Commission.
All certificate of tax exemption issued by the Bureau of Internal Revenue (BIR) to 
cooperatives are still valid and still in effect subject to submission of their new certificate of 
registration issued by the Commission within one (1) year from the effectivity of this Act.
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SEC. 29. Appropriations. -  An additional appropriation from the current budget of 
the agency shall be allotted for the initial implementation of this Act and shall be included in 
the General Appropriations Act.
SEC. 30. Transfer o f Funds and Programs. -  The Cooperative Development Loan 
Fund and the Fund for the Management Training and Assistance Program created under 
Presidential Decree No. 175, as amended and the Cooperative Marketing Project created 
under loan agreements, all granted to the Department of Agriculture, is hereby transferred 
to the Commission under the Cooperative Development Fund which shall be used for the 
development and strengthening of cooperatives.
SEC. 31. inform ation Campaign. -  The Cooperative Development Commission is 
mandated to conduct a six (6) month information campaign on the provisions of this Act 
from its effectivity.
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SEC. 32. Impiementing Rules and Regulations. -  The Board shall, in consultation 
with the cooperative sector, formulate the implementing rules and regulations (IRR) for the 
effective implementation of the provisions of this Act.
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SEC. 33. Separability Clause. -  If any if this Act is held invalid or unconstitutional, the 
same shall not affect the validity and effectivity of other provisions hereof.
SEC. 34. Repealing Clause. — Republic Act No. 6939, creating the Cooperative 
Development Authority and Executive Order 332, Series of 2004 are hereby repealed. The 
provisions of Article 144, Paragraph 2 of Republic Act No. 9520, on securing the requisite 
Certificate of Tax Exemption following the registration of cooperatives and the provisions of 
Art. 17 of Presidential Decree 269 allowing the use of the word cooperative by electric 
cooperatives are also hereby repealed. All other laws, decrees, executive orders, rules and 
regulations or parts thereof inconsistent with the provisions of this Act are hereby amended 
or modified accordingly.
SECTION 35. Effectivity Clause. -  This Act shall take effect fifteen days from the date 
of its publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
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Approved,
II