Law Summary
Creation of the Cooperative Development Authority
- Established under the Office of the President to implement the Act’s provisions.
Powers, Functions and Responsibilities of the Authority
- Formulate and implement cooperative development plans aligned with national socioeconomic goals.
- Develop training programs to enhance entrepreneurial, managerial, and technical skills among cooperative members.
- Provide technical assistance focused on agrarian reform, fisheries, and depressed sectors.
- Support cooperative movements and upgrade expertise upon request.
- Coordinate cooperative promotion with local governments and private sector.
- Register cooperatives and federations, including organizational changes and asset transfers.
- Require cooperatives to submit audited financial statements and general information annually.
- Cancel cooperative registrations after due notice for non-compliance or voluntary dissolution.
- Facilitate financial and other assistance to cooperatives.
- Establish extension offices in key cities.
- Impose reasonable registration fees.
- Manage government grants for cooperative development.
- Conduct public consultations and adopt policy initiatives.
- Submit annual state of cooperatives report to the President and Congress.
- Exercise contempt powers for misconduct during hearings.
Governing Body
- A Board of Administrators governs the Authority, comprised of a Chairman and six members from Luzon, Visayas, and Mindanao.
- Four ex officio members represent key government departments on a nonvoting basis for one year post-Authority operation.
- Members serve full-time with six-year terms; initial staggering of terms applied.
- Presidential appointment fills vacancies.
Qualifications of Board Members
- Must be natural-born Filipinos of legal age.
- Possess a relevant Bachelor’s degree plus five years’ cooperative-related experience, or ten years’ cooperative experience without degree.
- Resident of the represented region for at least five years.
- Must divest any pecuniary interests in cooperatives upon appointment.
Board Meetings
- At least one meeting per month; special meetings may be called.
- Decisions require majority vote.
- Meetings held at the head office or as determined.
- Board appoints an Executive Director as chief operating officer.
Organization and Operational Timeline
- Authority to be organized within 120 days of the Act’s effectivity.
Mediation and Conciliation Functions
- Authority mediates disputes within or between cooperatives upon request.
- If mediation fails after three months, a certificate of non-resolution is issued to enable court action.
Exclusive Registration Power
- Authority has sole registration power over cooperatives.
- Registration functions transferred from several government agencies.
- Bureau of Agricultural Cooperatives Development abolished; qualified employees absorbed.
- Severance pay provisions for non-absorbed employees provided.
Transfer of Funds and Programs
- Cooperative Development Loan Fund and related programs transferred to Authority.
- Management Training and Assistance Program funds converted for cooperative development uses.
- Cooperatives may establish private training centers.
- Cooperative Marketing Project transferred to Authority.
Education Role
- Cooperative principles and history to be included in formal and non-formal education.
- Recognition of NGOs engaged in cooperative promotion.
- Authority may accredit NGOs as training organizations with possible academic credit.
- State colleges/universities to assist cooperatives upon request.
Cooperative Banks Development
- Promotion of cooperative banks as part of the banking system is a priority.
- Collaboration with Central Bank and cooperative sector required.
Rule-Making Authority
- Authority may promulgate necessary implementing rules after public hearing and Presidential approval.
- Rules take effect 15 days after publication.
Use of "Cooperative" Title
- Only organizations complying with cooperative laws and registration may use "cooperative" in their name.
- Organizations using the title but non-compliant have three years to qualify and register.
- Continued use without compliance after this period is unlawful.
Information Campaign
- Authority must conduct a six-month information campaign on the Act’s provisions starting three months after its effectivity.
Appropriations and Funding
- Initial funds sourced from abolished entities and other transferred programs.
- Additional P60 million may be requested from the President’s Contingent Fund for the first year.
- Subsequent funds included in national budget appropriations.
Transitory Provisions
- Existing cooperatives under older laws are deemed registered but must submit documentation within one year.
- Cooperative registration cancellation if documentation is not submitted.
- Cooperatives under certain decrees have three years to qualify and register.
- After registration, some prior laws no longer apply.
Repeal of Inconsistent Laws
- Conflicting laws, orders, and regulations are repealed or modified.
- In case of doubt, interpretations favor cooperatives.
Separability Clause
- If any provision is declared unconstitutional, remaining provisions remain effective.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or newspapers of general circulation.