Law Summary
Mandate under the Organic Act (RA 6734)
- The Autonomous Regional Government (ARG) of the Autonomous Region in Muslim Mindanao (ARMM) is tasked to encourage and support entrepreneurial capacity.
- It is recognized that cooperatives play a key role, fostering cooperativism according to Islamic principles and local traditions within the ARMM.
Transfer of Powers to the ARG
- Certain powers, functions, and responsibilities of the Cooperative Development Authority (CDA) are transferred to the ARG including:
- Formulating cooperative development plans consistent with national policies.
- Developing and conducting management and training programs for cooperatives.
- Supporting organization and consensual development of cooperative movements.
- Coordinating efforts of Local Government Units (LGUs) and private sector in cooperative promotion.
- Requiring submission of annual financial statements and general information sheets from cooperatives.
- Assisting cooperatives in securing financial and other support to ensure viability and autonomy.
- Administering grants and donations for cooperative development in the ARMM.
- Mediating and conciliating disputes within or between cooperatives upon request.
- Formulating continuing policy initiatives with public consultation.
- Performing other necessary functions to implement cooperative laws.
Regulatory Functions
- Registration and cancellation of cooperatives, including reporting requirements, remain jointly handled through a Memorandum of Agreement (MOA) between the CDA and ARG.
Standard-Setting
- The ARG is empowered to formulate its own standards in alignment with existing laws, rules, and local practices.
Technical Assistance
- The CDA shall provide necessary technical assistance to the ARG to effectively implement devolved cooperative functions.
Implementation Rules
- The CDA, in consultation with the ARG, shall issue implementing rules and regulations within 60 days from the order's effectivity.
Reporting Requirements
- ARG must submit quarterly reports on the implementation status to the President of the Philippines.
Shared Powers and Responsibilities
- Functions such as cooperative education, training, division, merger, consolidation, and dissolution are to be jointly implemented and funded by the CDA and ARG according to the MOA.
Separability Clause
- If any provision of the Executive Order is held unconstitutional or unlawful, the remaining provisions continue in full force.
Establishment of CDA Office in ARMM
- CDA will establish an Extension Office in the ARMM to perform shared or retained functions during a one-year transition period.
Effectivity
- The Executive Order takes effect 15 days after publication in a national newspaper and one in the ARMM.