,Se\1ld~ 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
"14 
111\'( -1 P 1 :30 
SENW"h 
S.B. No. t!~16 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT PROVIDING FOR THE MANDATORY APPOINTMENT OF A COOPERATIVES OFFICER 
IN EVERY LOCAL GOVERNMENT UNIT, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991" 
EXPLANATORY NOTE 
In his travels in Europe in the 19th century, Philippine National Hero Dr. Jose P. Rizal was 
impressed with the success of a new economic movement that transformed the economic and 
social life of the Europeans. When he was incarcerated in Dapitan, Rizal he put up a school for 
the poor community where the community itself was the owner, a business model that he 
learned in his travels in the West. 
He also established the first cooperative store with his 
students. 
In addition, he organized the La Sociedad de los Abaceleros (Society of Abaca 
Producers), the first cooperative of its kind in the country. 
Cooperative businesses are about meeting the needs of the people, where profit making 
is side by side with the development of the community. Since cooperatives are owned and 
democratically controlled by their members, the decisions taken balance the need for 
profitability and the wider interests of the community. Thus, cooperatives empower 
communities where they own and manage their own enterprise and share the economic 
benefits among all members. 
Such a model where everyone has an iAterest in the participatory and developmental 
efforts of the community need to be replicated and scaled up to further the State's interest in 
providing progress even to the marginalized sectors of society. 
The Cooperatives Officer Bill mandates all municipal governments to have a designated 
officer attending to the needs of cooperatives and promoting cooperative-building in their 
localities. 
, 
The Cooperatives Officer shall steward the cooperatives in the areas of registration, 
market linkage, product development, training and mentoring, and access to capital and 
financing. Cooperatives are then promoted and further developed, organizing communities and 
building an economic movement for the people. 
The challenge is to continue what Rizal fought for - not only political freedom - but 
economic freedom and poverty alleviation as well. 
In view of the foregoing, the approval of this bill is earnestly sought. 
~tkfM'~ 
Senator Paolo Benigno "Bam" A. Aquino IV 
I 


'sen,l!r 
tOff,;, "I til' j.'mt .. ~ 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'14 
IlAY -7 Pl :30 
SEIllm 
S.B. No.i:! i:! 16 
RECEIVED BY;-¥_, 
-------------------------------------------------
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT PROVIDING FOR THE MANDATORY APPOINTMENT OF A COOPERATIVES OFFICER 
IN EVERY LOCAL GOVERNMENT UNIT, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - Section 487, Article 17, Title V, Book 3 of Republic Act No. 
2 
7160, otherwise known as the "Local Government Code of 1991," is hereby amended to read as 
3 
follows: 
4 
"Article seventeen. - The Cooperatives Officer 
5 
"SEC. 487. Qualifications, Powers, and Duties. -
6 
(a) xxx 
7 
"The appointment of the cooperatives officer [is optional] SHAll BE MANDATORY for 
8 
the provincial, [and] city AND MUNICIPAL governments. 
9 
"THE LOCAL GOVERNMENT UNIT CONCERNED SHALL HAVE THE OPTION TO CREATE 
10 
THE POSITION OF A COOPERATIVES OFFICER OR TO DESIGNATE AN INCUMBENT OFFICER OR 
11 
EMPLOYEE TO PERFORM THE FUNCTIONS O.F THE SAID POSITION •. 
12 
(b) xxx 
13 
SECTION 2. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
14 
publication in the Official Gazette or in a newspaper of general circulation. 
15 
Approved, 
2 
•