Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
House Bill No. _ 4556.

Introduced by Representative Sergio C. Dagooc

EXPLANATORY NOTE

This bill seeks to amend Presidential Decree No. 269 as amended
by Republic Act No. 10531 or the National Electrification Administration
Reform Act of 2013 that sought to impose standards and qualifications
for the Board of Directors and Officers of an electric cooperative and
insulating the said Board of Directors and Officers from local politics.

The Republic Act also gave NEA the power to pass upon and
review the qualifications and disqualifications of individuals appointed
or elected to electric cooperatives.

Ahighlight of this proposed bill is to create a screening committee
composed of technical personnel of an electric cooperative to ensure the
competence of one seeking to be elected as a member of the Board of
Directors of an Electric Cooperative. The bill also amends the
qualifications of the Board of Directors and Officers on an electric
cooperative to reflect the realities faced on the ground.

Previous versions of this bill filed in former Congresses have had
a glaring flaw in which it proposes that the Regional Director of the
Cooperative Development Authority serve as the Chairperson of the
screening committee. This is an impractical approach as the CDA is
covered by a separate law and is not familiar with the operation of an
electric cooperative. Having the Institutional Services Department
Manager of the Electric Cooperative serve as the Chairperson of the
screening committee and other managers as members is a more
practical solution which ensures that they have knowledge on the inner
‘workings of an electric cooperative and that they will work to sustain the
viability of the electric cooperative.

{As such, the passage of this bill is earnestly

SERGI6 C. DAGOOC
APEC Partylist Representative


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

4556
House Bill No.

Introduced resentative io C.

AN ACT
MODIFYING THE QUALIFICATIONS, REQUIREMENTS FOR
CANDIDACY, AND THE CONTINUING QUALIFICATIONS OF THE
BOARD OF DIRECTORS OF ELECTRIC COOPERATIVES,
AND ADJUSTING THE COMPOSITION OF THE SCREENING
COMMITTEE, AMENDING FOR THE PURPOSE
SECTIONS 26-A and 26-B OF PRESIDENTIAL DECREE NO. 269
AS AMENDED BY REPUBLIC ACT NO. 10531

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 by Republic
Act 10531, otherwise known as the National Electrification Administration Reform
Act of 2013, is hereby further amended to read as follows:

"SECTION 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 person for his-or-her-spouse} holds any fpublie}
office ABOVE THE POSITION OF BARANGAY
CAPTAIN;

"(b) such person or his or her spouse has been a candidate in the
last preceding local or national elections;


ae

wea

Act 10531,

"(¢) such person has been convicted by final judgment of a crime
involving moral turpitude;

"(d) such person has been terminated for cause from public office
or private employment;

"(©) such person is related to any member of the electric
cooperative board of directors, general manager and department
managers within the fourth civil degree of consanguinity or
affinity;

"(O such person is a representative of a juridical person; and
"(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.”

SECTION 2. Section 26-B of Presidential Decree No. 269, as amended by Republic
otherwise known as the National Electrification Administration Reform Act
of 2013, is hereby further amended to read as follows:

"SECTION 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 OF DIRECTORS OF ELECTRIC COOPERATIVES IS
UPHELD, the NEA shall fpreseribe; pass-upon-and-review-the

unfit-} CREATE A SCREENING COMMITTEE IN EACH OF
THE ELECTRIC COOPERATIVES DISTRICT WHICH SHALL
BE COMPOSED AS FOLLOWS:

A. INSTITUTIONAL SERVICES DEPARTMENT MANAGER
OF THE ELECTRIC COOPEATIVE OR HIS OR HER
EQUIVALENT AS CHAIRMAN

B. FINANCE SERVICES DEPARTMENT MANAGER OR HIS
OR HER EQUIVALENT AS MEMBER,

C. TECHNICAL SERVICES DEPARTMENT MANAGER OR
HIS OR HER EQUIVALENT AS MEMBER

‘TWO (2) ALTERNATE MEMBERS MAY ALSO BE APPOINTED
BY THE RESPECTIVE ELECTRIC COOPERATIVES IN THE
FORM OF A RESOLUTION TO BE APPROVED BY THE NEA.
THE ALTERNATE MEMBERS SHALL ONLY SERVE AS
MEMBERS OF THE SCREENING COMMITTEE IN CASE OF
THE ABSENCE OF ANY MEMBER OF THE SCREENING
COMMITTEE; PROVIDED HOWEVER THAT THE


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ALTERNATE RECOMMENDED HOLDS AT LEAST A
SUPERVISORY LEVEL POSITION IN THE RESPECTIVE
ELECTRIC COOPERATIVE.

IN CASE THE ISD MANAGER IS NOT AVAILABLE DURING
THE CONDUCT OF ELECTIONS, THE FSD MANAGER SHALL
SERVE AS CHAIRMAN OF THE SCREENING COMMITTEE. IF
BOTH THE ISD MANAGER AND THE FSD MANAGER ARE
NOT AVAILABLE, THEN THE TSD MANAGER SHALL SERVE
AS CHAIRMAN.

i *s} THE SCREENING COMMITTEE SHALL
CONSIDER the integrity, experience, education, competence and
probity [shall-be-eonsidered} in determining whether fhe-or-she}
THE CANDIDATE shall be fit and proper to become a director [or
officer} of the electric cooperative.

A director or
officer of the electric cooperative shall MEET THE FOLLOWING
QUALIFICATIONS:

(a) He or she fis-a} MUST BE Filipino citizen;

(b) . HE
OR SHE MUST BE ABLE TO READ AND WRITE;

(C) HE OR SHE MUST POSSES A FIVE (5) YEAR
EXPERIENCE IN ANY FIELD OF EXPERTISE OR
PROFESSION

££e}} (D) He or she [is} MUST BE AT LEAST twenty-one (21)
fand-seventy-7e)} years old, on the date of election;

£€4)} (E) He or she fis} MUST BE of good moral character;

££e}} (F) He or she fis} MUST BE a member of the electric
cooperative in good standing
immediately preceding the election or appointment;

9] (G) He or she fis} MUST BE an actual resident and
consumer in the district [that-he or she-seeks to-represent}
TO BE REPRESENTED for at least two (2) years immediately
preceding the election; fama}

€g) (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;
AND


() HE OR SHE MUST HAVE UNDERGONE SEMINARS,
WORKSHOPS, OR TRAININGS ON COOPERATIVE
MANAGEMENT AND PARLIEMENTARY PROCEDURE,
AND COURSES PERTAINING TO THE POWER
INDUSTRY, PARTICULARLY POWER SUPPLY
CONTRACTING AND ELECTRIC DISTRIBUTION
MANAGEMENT OFFERED BY THE PHILIPPINE
RURAL ELECTRIC COOPERATIVES ASSOCIATION OR
ITS SUCCESSOR-IN-INTEREST.

THE ABOVE QUALIFICATIONS SHALL BE
UNDERSTOOD TO BE CONTINUING REQUIREMENTS
FOR DIRECTORS AND OFFICERS, PROVIDED THAT
CURRENT DIRECTORS AND OFFICERS SHALL HAVE
A PERIOD OF TWO (2) YEARS FROM THE APPROVAL
OF THIS ACT TO COMPLY WITH ITEM (1).

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.”

SECTION 3. Implementing Rules and Regulations ~ The National
Electrification Administration shall promulgate and issue the Implementing
Rules and Regulations within sixty (60) days upon approval of this Act.

SECTION 4. Repealing Clause - All laws, presidential decrees, executive
orders, letters of instruction, administrative rules and regulations or parts
thereof which are contrary to or inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SECTION 5. Separability Clause ~ Should any part or provision of this Act
be held unconstitutional or invalid, all other provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SECTION 6. Effectivity. — This Act shall take effect after fifteen (15) days
following its complete publication in the Official Gazette or in two (2)
newspapers of general circulation whichever is earlier.

Approved.