Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill Number 487

introduced by: Rep. PRESLEY C. DE JESUS (PHILRECA Partylist)

AN ACT MODIFYING THE QUALIFICATIONS FOR AND CREATING A
SCREENING COMMITTEE IN THE ELECTION OR APPOINTMENT OF THE
DIRECTORS AND OFFICERS OF ELECTRIC COOPERATIVES, AMENDING FOR
THE PURPOSE SECTIONS 26-A AND 26-B OF PRESIDENTIAL DECREE NO. 269
AS AMENDED BY REPUBLIC ACT NO. 10531, OTHERWISE KNOWN AS THE
NATIONAL ELECTRIFICATION ADMINISTRATION REFORM ACT OF 2013

EXPLANATORY NOTE

To ensure long-term business and economic viability of electric cooperatives,
and guarantee strict compliance to the modified minimum qualifications of an electric
Cooperative director and/or officer as prescribed in Republic Act No. 10531 and its
Implementing Rules and Regulations, it is proposed to create a multisectoral
committee that will screen the candidacy, election, or appointment of its directors and
officers,

This bill intends to create a screening committee with representations from the
business community, civil society, and religious community, all within its franchise
area. Qualifications and disqualifications parameters currently in effect as framed
under Republic Act 10531 are hereby modified and amended

The passage of tl ig earnestly sought.

‘ep. PRESLEY C. DE JESUS.
PHILRECA Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill Number __ 467

Introduced by: Rep. PRESLEY C. DE JESUS (PHILRECA Partylist)

AN ACT MODIFYING THE QUALIFICATIONS FOR AND CREATING A
SCREENING COMMITTEE IN THE ELECTION OR APPOINTMENT OF THE
DIRECTORS AND OFFICERS OF ELECTRIC COOPERATIVES, AMENDING FOR
THE PURPOSE SECTIONS 26-A AND 26-B OF PRESIDENTIAL DECREE NO. 269
AS AMENDED BY REPUBLIC ACT NO. 10531, OTHERWISE KNOWN AS THE
NATIONAL ELECTRIFICATION ADMINISTRATION REFORM ACT OF 2013

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

SECTION 1. Section 26-A of Presidential Decree No. 269, as amended, otherwise
known as the “National Electrification Administration Decree”, shall be amended to
read as follows and the subparagraphs renumbered accordingly: “SEC. 26-A.
Independence of the Board of Directors and Officers of Electric Cooperatives. - To
ensure the long-term business and economic viability of electric cooperatives, the
management, operations and strategic planning of electric cooperatives shall, as
much as practicable, be insulated from local politics. “Towards this end, no person
shall be elected or appointed as an officer or be eligible to run as a board member of
an electric cooperative if: *(a) [such] THE person [or his or her spouse] holds any
[public] ELECTIVE office ABOVE THE POSITION OF BARANGAY CAPTAIN; "(b)
[such] THE person or [his or her] THE PERSON'S spouse has been a candidate in


the last preceding local or national elections; “x x x “(g) such person is employed
by or financially interested in a competing enterprise or a business selling electric
energy or electrical hardware to the cooperative or doing business with the
cooperative, including the use or rental of poles.”

SEC. 2. Section 26-B of Presidential Decree No. 269, as amended by Republic Act
No. 10531, is hereby further amended to read as follows: “SEC. 26-B. Fit and Proper
Rule. — To ensure that the management and operations of electric cooperatives are
carried out with due regard to its economic viability AND THE INDEPENDENCE OF
THE BOARD AND OFFICERS OF ELECTRIC COOPERATIVES IS UPHELD, the
NEA shall [prescribe, pass upon and review the qualifications and disqualifications of
individuals appointed or elected to electric cooperatives and disqualify those found
unfit] CREATE A SCREENING COMMITTEE IN EACH OF THE ELECTRIC
COOPERATIVES DISTRICT WHICH SHALL BE COMPOSED OF THE
FOLLOWING:

“(A) REGIONAL DIRECTOR OF THE CDA OR THE DULY AUTHORIZED
REPRESENTATIVE OF THE REGIONAL DIRECTORS, AS CHAIRPERSON; *(B)
REPRESENTATIVE FROM THE BUSINESS COMMUNITY; *(C)
REPRESENTATIVE FROM THE ACADEME; *(D) REPRESENTATIVE FROM THE
CIVIL SOCIETY BASED IN THE REGION; AND “(E) REPRESENTATIVE FROM
THE RELIGIOUS COMMUNITY. “REPRESENTATIVES FROM THE PRIVATE
SECTOR SHALL BE APPOINTED BY THE CHAIRPERSON, UPON NOMINATION
BY THEIR RESPECTIVE GOVERNMENT ACCREDITED ORGANIZATIONS. THE
CHAIRPERSON SHALL ALSO APPOINT ONE OF THE PRIVATE SECTOR
REPRESENTATIVES AS VICE CHAIRPERSON. "[A candidate's] THE SCREENING
COMMITTEE SHALL CONSIDER THE integrity, experience, education, competence
and probity [shall be considered] in determining whether [he or she] THE
CANDIDATE shall be fit and proper to become a director or officer of the electric
cooperative. *[For this purpose, the minimum qualifications of a] A director or officer
of the electric cooperative shall [be as follows] MEET THE FOLLOWING
QUALIFICATIONS: “(a) [He or she is] MUST BE a Filipino citizen; “[(b) He or she is a
graduate of a four(4)-year course;] “(B) MUST BE ABLE TO READ AND WRITE; “(C)
MUST POSSESS A FIVE (5)-YEAR EXPERIENCE IN ANY FIELD OF EXPERTISE


OR PROFESSION; “[c] (D) [He or she is between] MUST BE AT LEAST
twenty-one (21) [and seventy (70)] years old[,] on the date of election;

[a] (E) [He or she is] MUST BE of good moral character; “[(e)] (F) [He or she is]
MUST BE a member of the electric cooperative in good standing [for the last five (5)
years immediately] preceding the election or appointment; “[(f)] (G) [He or she is]
MUST BE an actual resident and consumer in the district [that he or she seeks] to
BE representED for at least two (2) years immediately preceding the election; and
“[()] (H) [He or she has] MUST HAVE attended at least two (2) Annual General
Membership Assemblies (AGMA) for the last five (5) years immediately preceding
the election or appointment. “The NEA may, after due notice to the board of directors
and officers of the electric cooperative, disqualify, suspend or remove any director or
officer, who commits any act which renders him unfit for the position.”

SEC. 3. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the NEA shall formulate the necessary rules and regulations to
implement this Act

SEC. 4, Separability Clause. — If any part or section of this Act is deciared
unconstitutional, such declaration shall not affect in any manner other parts or
sections hereof.

SEC. 5. Repealing Clause. — All laws, decrees, proclamations, issuances, or
ordinances that are contrary to or inconsistent with the provisions of this Act are
hereby amended, repealed or modified accordingly.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,