SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENATE 
S.B. No266 
'13 
JUL -2 
i~9 :20 
Introduced By Senator Manuel"Lito" M. Lapid 
EXPLANATORY NOTE 
The spirit of cooperativism runs contrary to any prolonged and extended discord 
within its ranks. As such, an efficient mechanism for settling disputes within and 
between cooperatives is necessary. 
The Philippine Cooperative Code of 2008 
.. ("Cooperative Code") institutes arbitration at the level of the Cooperative Development 
Authority ("CDA") as a dispute resolution mechanism thereby ensuring a quick process 
and a final and binding award. 
The method of arbitration implemented under the Cooperative Code is in 
accordance with the Alternative Dispute Resolution Act of 2004 (" ADR Act"). 
However, unlike the ADR Act where arbitral awards are final, executory, and non-
appealable, there is an express provision in the Cooperative Code allowing the appeal 
of an arbitral award before the Office of the President. This provision prolongs the 
process of resolution and, as such, runs contrary to both the spirit of cooperativism and 
the goals of arbitration as a method of dispute resolution. 
The present measure proposes the deletion of the appeal process to the Office of 
the President. This amendment will not prejudice the rights of the disputants because 
under the ADR Act there is a provision as to the method and grounds for how an 
arbitral award may be vacated. It should also be kept in mind that the arbitral award at 
the CDA level should be given great weight considering that the voluntary arbiters are 
not only the persons familiar with the dispute but they are also the experts in the field 
of cooperatives. It is these experts who are equipped to resolve disputes in a manner 
., 
that will safegUard both the cooperatives' present concern and their long-term interests. 
Finally:'the proposed amendment does not run contrary to the Chief Executive's 
power of supervision and control over the CDA. Arbitration and the supervision of 
voluntary arbiters at the CDA level is not one of the main powers, functions, and 


respollBibilities of the CDA under its Charter. This function is only upon request of 
affected cooperatives and provided under the Cooperative Code - not under the CDA 
Charter. Thus the Office of the President's power of supervision and control over the 
CDA's main duties, as defined under its Charter, is not diminished by this proposed 
measure. 
Hence, the undersigned sponsor urges the passage of the present measure. 
c;?c,,,---
MANUEL "LITO" M. LAPID 
Senator 
~ 


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SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
Third Regular Session 
) 
) 
SENATE 
S.B. No.266 
Introduced By Senator Manuel "Lito" M. Lapid 
.senz~ 1, i 
(Olb\" tlf th« :~ ·,':rbr\l 
'13 
JUL -2 f.9 :20 
AN ACT AMENDING ARTICLE 137 OF REPUBLIC ACT NO. 9520 
OTHERWISE KNOWN AS" AN ACT AMENDING THE COOPERATIVE CODE OF 
THE PHILIPPINES TO BE KNOWN AS THE 'PHILIPPINE COOPERATIVE CODE 
OF 2008'" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Article 137 of Republic Act No. 9520 otherwise known as " An Act 
2 
Amending the Cooperative Code of the Philippines to be known as the Philippine 
3 
Cooperative Code of 2008" is hereby amended to read as follows: 
4 
"ART. 137. Settlement of Disputes, Conciliation, and Mediation Proceeding~.-
5 
xxx 
6 
"The jurisdiction of the voluntary arbitrators shall be exclusive and 
7 
original and their decisions Ishall be appealable to the Office of the 
8 
President.] SHALL BE IMMEDIATELY FINAL AND EXECUTORY. 
9 
The Authority shall issue and adopt the proper rules of procedure 
10 
governing arbitration as the primary and exclusive mode for dispute 
11 
resolution in accordance with the Alternative Dispute Resolution Act of 
12 
2004. 
13 
"For this purpose, the Authority shall constitute a list of qualified 
14 
voluntary arbitrators." 
15 
16 
SEC. 2. The Cooperative Development Authority shall formulate the necessary 
17 
rules and regulations for the effective implementation of this Act. 
18 
1 


19 
SEC. 
3. If any provision or part of this Act shall be declared invalid or 
20 
unconstitutional, the remaining parts or provisions not affected shall remain in full 
21 
force and effect. 
22 
23 
SEC. 4. All laws, decrees, executive orders, issuances, rules and regulations or 
24 
parts thereof inconsistent with the provisions of this Act are hereby repealed or 
25 
modified accordingly, 
26 
27 
SEC. 5. This Act shall take effect fifteen (15) days after its publication in the 
28 
Official Gazette or in at least two (2) newspapers of general circulation. 
29 
30 
Approved, 
2