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NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 373
of lijc £Si. . Unj)
72 JUL 12 All :43
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INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ESTABLISHING LOCAL COOPERATIVES DEVELOPMENT 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
FUND,
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 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 internationally 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 local brought by the Supreme Court's ruling on 
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 1% 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 activities 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.
RISA HONTIVEROS 
Senator


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 373
of tlj>' i rflnrj’
‘22 JUL 12 A11 :43
RHCnVtDBV.
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 Phiiippines in Congress 
assembied:
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Section 1. Short Titie. - This Act shall be known as the "Local Cooperatives
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Development Fund Act."
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Sec. 2. Deciaration of Poiicy. - The State recognized the roles of cooperatives as
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an instrument for economic development, social justice, and equity.
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The State guaranteed that the rights of the cooperatives, anchored upon internationally
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accepted principles and practices, shall be respected, promoted, and fulfilled.
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The State mandates national government agencies and local government authorities to
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promote the growth and expansion of cooperatives, provide resources and mechanisms
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to strengthen the cooperatives movement, enable policies and programs to transform
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cooperatives as a viable, responsive, and resilient economic enterprise, and facilitate
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partnerships with other national and local stakeholders.
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The State, except as provided in this Act, shall maintain the principles of noninterference
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in the development and management of cooperatives and guarantee that the
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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 Development 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.
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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 one percent (1%) 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 municipal local government units
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belonging to fourth to sixth income classification, may opt to allocate at least two percent 
(2%) of their local development projects as their LCDF. Provided further, the local 
government units belonging to fourth to sixth income classification shall commit to 
progressive realize this mandate within the next five years upon effectivity of this Act.
Sec. 5. Use of Funds. - The LCDF shall primarily be used to support and fund 
programs, project, and activities directed towards:
1. Formulation and implementation of a participatory Local Cooperatives 
Development Plan and localized special programs deemed as priorities of 
the local cooperatives.
2. Provision of technical guidance, financial assistance, and other services to 
local cooperatives.
3. Promotion, organization, and mobilization of local cooperatives as a viable 
and responsive community-based social and economic development 
enterprise.
4. Provision of capacity development and capacity-building initiatives and 
activities for local cooperatives.
5. Support the plans, programs, and activities for the local cooperatives' 
development councils and local cooperatives development officers in line 
with its mandates under existing laws.
Sec. 6. Implementing Rules and Regulations. - The Cooperatives Development 
Authority and the Department of Interior Local Government shall, in consultation with the 
cooperative sector and concerned leagues of local governments, formulate and 
disseminate the IRR within ninety (90) days since the effectivity of this Act.
Sec. 7. Congressional Oversight - Upon the effectivity of this Act, the Joint 
Congressional Committee on Cooperatives (JCOCC), created under Republic Act No. 9520, 
shall review and monitor the implementation of this Act.
Section 8. Repealing Clause - All laws, decrees, executive orders, rules and regulations, 
issuances, or parts thereof Inconsistent with this Act are hereby repealed or amended 
accordingly.
Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or a newspaper of general circulation.
Approved,