EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S.B. No. 2145
DATE
T»ME
‘tA"
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT FUND, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Cooperatives are constitutionally recognized instruments for the promotion and 
fulfillment of just and equitable social and economic development.
The State mandates that government and all its branches, subdivisions, 
instrumentalities, and agencies shall ensure technical and financial assistance and 
services to enable cooperatives to become viable and responsive socio-economic 
enterprises and to strengthen the cooperatives movement.
Recently, Congress enacted Republic Act No. 11364 or the Cooperative 
Development Authority Charter of 2019 and Republic Act No. 11535 or the Local 
Cooperatives Development Officer Act as an expression of the State's fulfillment of its 
obligation to respect, promote, and protect the "rights of the cooperatives" and its 
organization and expansion per the universally accepted principles, values and practices 
of the cooperatives' movement.
Likewise, under existing law, local governments are mandated to deliver basic 
services to the public, including support for the development of cooperatives in their 
respective jurisdiction. Local cooperatives played an important role in local governance 
as an organizational vehicle for the families and communities, especially the marginalized 
sector, as a partner for social service delivery, and as a potential agent for sustainable 
local economic development.
Cognizant of the expected additional fiscal space and the full devolution of certain
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national government function to the local brought by the Supreme Court's ruling on the 
Mandanas-Garcia case, this bill seeks to mandate the establishment of a Local 
Cooperative Development Fund (LCDF) and to authorize local government units—I.e., 
provincial, city and municipal—to appropriate at least 2% of their Internal Revenue 
Allocations (IRA) or 2% of their funds for local development projects to cooperatives 
development In their jurisdictions.
The LCDF Intends to fund programs, projects, and acti\^ties of the local 
governments directed towards cooperatives development through (a.) participatory local 
cooperative development planning, (b.) provision of technical and financial assistance and 
services to local cooperatives, (c.) promotion, organization, and mobilization of 
cooperatives for local social and economic development, (d.) capacity development and 
capacity building interventions for local cooperatives' leaders, members and partners, and 
(e.) support to the local cooperative development councils and local cooperatives' 
development offices' plans and programs of action.
In view of the foregoing. Immediate passage of this bill Is earnestly sought
TOUrtSlEKSseM'^ift'U^ 
Senator


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S.B. No. 2145
"PAP
DATE
TH.1E5NOEX
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT FUND, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in Congress 
assembied:
1 
Section 1. Short Tide. - This Act shall be known as the "Local Cooperatives
2 
Development Fund Act."
3 
Sec. 2. Deciaration ofPoiicy. - The State recognized the roles of cooperatives as
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an instrument for economic development, social justice, and equity.
5 
The State guaranteed that the rights of the cooperatives, anchored upon
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internationally accepted principles and practices, shall be respected, promoted, and
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fulfilled.
8 
The State mandates national government agencies and local government
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authorities to promote the growth and expansion of cooperatives, provide resources and
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mechanisms to strengthen the cooperatives movement, enable policies and programs to
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transform cooperatives as a viable, responsive, and resilient economic enterprise, and
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facilitate partnerships with other national and local stakeholders.
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The State, except as provided in this Act, shall maintain the principles of
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noninterference in the development and management of cooperatives and guarantee that
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the cooperatives shall be free from conditions that infringe upon its objectives and
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characteristics.
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Sec. 3. Creation of Locai Cooperatives Deveiopment Fund. - The Local
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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 units,
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to support local cooperatives development in their jurisdictions.
21. 
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 Revenue
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Allocations (IRA) for programs, projects, and activities for local cooperatives
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development. Provided that provincial, city, and municipai locai government units
2 
beionging to fourth to sixth income classification, may opt to aliocate at ieast two percent
3 
(2%) of their funds for local development projects as their LCDF. Provided further, the
4 
local government units beionging to fourth to sixth income ciassification shall commit to
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progressively realize this mandate within the next five years upon effectivity of this Act.
6 
Sec. 5. Use of Funds. - The LCDF shali primarily be used to support and fund
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programs, project, and activities directed towards:
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1. Formuiation and irripiementation of a participatory Locai Cooperatives
9 
Development Plan and localized spedai programs deemed as priorities of
10 
the iocal cooperatives.
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2. Provision of technical guidance, financial assistance, and other services to
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locai cooperatives.
13 
3. Promotion, organization, and mobiiization of locai cooperatives as a viable
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and responsive sociai and economic deveiopment enterprise and to
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strengthen the cooperatives movement.
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4. Provision of capacity deveiopment 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, local
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federation of cooperatives, and local cooperative union in iine with its
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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 the
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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 (3COCC), created under Republic Act No. 9520,
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shali review, and monitor the implementation of this Act.
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Section 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 repeaied or
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amended accordingly.
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Sec. 9. Effectivity. - This Act shaii take effect fifteen (15) days after its publication
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in the Official Gazette or a newspaper of general circulation.
Approved,