Key Definitions
- Defines terms such as the Authority (CDA), cooperative, federation of cooperatives, alternative dispute resolution, cooperative development council, sectoral apex organizations, regional clustered organizations, and various procedural terms.
- Cooperative: autonomous, voluntary association formed for social, economic, and cultural betterment.
- Clarification of cooperative structures: federations, unions, apex organizations, councils, LGUs, among others.
- Alternative Dispute Resolution adapted from RA 9285 policies.
Mandate, Powers, Functions, and Responsibilities
- CDA's mandate: promote viability and growth of cooperatives through implementation of relevant laws and rules.
- Powers categorized as developmental, registration and regulation, and quasi-judicial.
- Developmental functions include planning, training, recognition, coordination with agencies, product development, and establishing consultative mechanisms.
- Registration: register cooperatives, amendments, branch & satellite offices.
- Regulatory functions: supervision, examination, annual reporting, fee collection, compelling assemblies, inspections, dispute resolution, issuance of orders including cessation.
- Quasi-judicial functions: conduct investigations, discipline officers/members, adjudicate disputes, issue subpoenas, cite for contempt, and enforce decisions.
- Institutional strengthening through continuous capability-building programs.
Governance and Administration
- Board of Directors composed of Chairperson (Undersecretary rank) and six members (Assistant Secretary rank) representing different clusters of cooperatives.
- Ex-officio members from DTI and DILG participate without voting rights.
- Roles of Board: policy making, approving plans, contract authorizations, appointments, and coordination with stakeholders.
- Members must be natural-born Filipinos, bachelor’s degree holders, with significant experience in cooperatives.
- Administrator appointed by the President, executes policies, manages operations, reports to President and Congress.
- Deputy Administrators handle general administration, development, legal affairs, registration, supervision, and Credit Surety Fund.
- Regional offices established nationwide including districts for NCR and various provincial offices.
Partnership and Complementation
- CDA leads efforts, coordinates all government agencies’ cooperative programs via National Coordinating Committee.
- Strong partnership with cooperative sector, academe, LGUs, private sector, and international cooperative organizations.
- LGUs play a vital role in local cooperative development including localized plans, training, tax exemption facilitation, and technical assistance.
- Collaborations ensure cooperative competitiveness and sustainability especially in agrarian, agriculture, fishery, and economically depressed sectors.
Cooperative Training
- CDA develops and conducts training focused on entrepreneurial, managerial, technical skills.
- Formulates training standards with partners in academe and training institutions.
- Implements accreditation programs to institutionalize consistent education and training standards.
- Training providers must have juridical personality, cooperative programs, and qualified trainers.
- Monitoring of compliance by CDA.
Cooperatives in the Education System
- Cooperative principles incorporated into formal and non-formal education curricula.
- Integration mandated at secondary level and included in certain tertiary education programs.
- CDA partners with CHED, DepEd, TESDA to implement cooperative education.
Inspection, Examination, and Investigation
- Regular inspection and examination to ensure compliance with laws, regulations, and cooperative governance.
- Special examinations conducted motu proprio or upon complaints.
- Investigations may involve other agencies and law enforcement.
- Cooperatives, federations, LGUs, NAC assist CDA in inspection and compliance.
Calling of General or Representative Assemblies by the Authority
- CDA can compel cooperatives to call assemblies under certain conditions such as failure to meet required meetings, member petitions, reporting investigations, or replacing officers.
- Federations/unions participate as observers and technical advisors.
- Supervision by CDA Regional Offices.
Recognition of Regional and National Cooperative Organizations
- Establishes Regional Clustered Organizations (RCOs), Sectoral Apex Organizations (SAOs), and National Alliance of Cooperatives (NAC).
- RCOs consist of cooperatives by clusters; SAOs formed from RCOs; NAC formed from SAOs.
- Internal rules govern operation and elections.
- Official recognition issued by CDA.
Cooperative Development Councils (CDCs)
- Multi-sectoral bodies at various government levels for policy consultation and program coordination.
- Composed of representatives from cooperatives, LGUs, NGAs, NGOs, academe, and stakeholders.
- Function includes harmonization of cooperative programs and policy proposals.
Consultative Mechanisms
- CDA ensures wide stakeholder participation in policy formulation through mechanisms involving CDCs, LGUs, federations, academe, and others.
- Consultations organized regionally and nationally, utilizing diverse formats and tools, including social media.
Quasi-Judicial Power
- Authority to investigate, discipline, adjudicate, and resolve cooperative disputes.
- Original jurisdiction divided between CDA Head Office (multi-region cooperatives) and Regional Offices (local cooperatives).
- Appeals go from Regional Offices to CDA Board, then directly to the Court of Appeals.
- Enforcement powers include subpoenas, contempt citations, and order implementation with law enforcement assistance.
Suspension, Cancellation and Revocation of Cooperative Registrations
- Grounds include fraud, illegal purposes, repeated violations, failure to operate cooperatively, insufficient membership, and non-compliance with orders.
- Procedures require due notice and hearing.
- Revocation of Letters of Authority for branches and satellite offices also regulated.
Settlement of Disputes
- Adopts alternative dispute resolution mechanisms for intra- and inter-cooperative disputes consistent with RA 9520 and RA 9285.
- Arbitration used after conciliation or mediation.
- Election-related disputes may bypass ADR and proceed directly to CDA adjudication.
Registration for Tax Exemption
- CDA supplies BIR, LGUs, and other agencies with certified lists of registered cooperatives for tax exemption processing.
- Lists updated annually.
Priority Program for Agricultural and Fishery Cooperatives
- Promotion and development of agricultural, agrarian, and aqua cooperatives prioritized to ensure food security and reduce rural poverty.
- Coordination with DA, DAR, NCIP, and other agencies mandated.
Special Concern for Cooperative Banks and Financial Service Cooperatives
- Special programs developed jointly with BSP and cooperative sector for financial cooperatives and cooperative banks.
Cooperatives Covered by Other Laws
- Registered cooperatives must secure required licenses, franchises, certificates, and permits from other agencies as applicable.
- Compliance monitored by CDA with agency cooperation.
Prohibition on Unregistered Use of Cooperative Names
- Use of terms "cooperative", "coop", "co-op", or "koop" by unregistered entities prohibited and penalized under RA 9520.
- CDA may initiate complaints motu proprio.
Existing Accounts Receivables
- CDA to collect, compromise, or condone existing accounts receivables from DA fund transfers and other funds.
- Guidelines to be made with COA for collection and write-offs, especially for cancelled cooperatives.
Transitory Provisions
- Existing CDA personnel retained with rank and benefits; Authority reorganized under applicable laws.
- Separation pay for voluntary retirements.
- Incumbent Board and Administrator continue until new Board constituted.
Information Campaign
- CDA mandated to conduct massive information campaigns about the Act nationally and locally.
- Development of standard templates for dissemination.
Amendments to Implementing Rules
- IRR to be reviewed automatically after five years, then every three years.
- Amendments made by CDA Board after consultation, effective 15 days after Official Gazette publication.
Final Provisions
- Separability clause ensuring invalidity of any IRR provision does not affect others.
- Repeal of RA 6939 and other inconsistent laws.
- IRR effective 15 days after Official Gazette publication.