Law Summary
Definitions of Key Terms
- Detailed definitions provided clarifying cooperative related terms including types of cooperatives, cooperative sector entities, legal processes, and institutional roles.
- Distinctions between inter-cooperative and intra-cooperative disputes are made for jurisdictional clarity.
- Recognition, supervision, training standards, and other operational terms are defined.
Mandate, Powers, Functions, and Responsibilities of the CDA
- CDA’s core mandate is to promote the viability and growth of cooperatives through developmental, regulatory, and quasi-judicial functions.
- Developmental functions include planning, training, recognition, consultative mechanisms, and facilitating marketing linkages.
- Regulatory powers cover registration, supervision, examination, enforcement of compliance, and dispute resolution.
- Quasi-judicial powers enable CDA to conduct investigations, discipline erring members, decide disputes, and enforce rulings.
- CDA is empowered to collect fees and impose sanctions including suspension, cancellation, and liquidation of cooperatives.
Governance and Administration
- The CDA Board of Directors is the policy-making body, composed of a Chairperson and six members representing various cooperative clusters plus ex-officio government representatives.
- Board members are appointed by the President and must meet specified qualifications including cooperative experience.
- The Administrator, appointed by the President upon Board recommendation, manages daily operations.
- Five Deputy Administrators assist in key functional areas.
- Regional and field offices ensure CDA presence nationwide.
- Staffing patterns and organizational structures are subject to approval by the Board and relevant government regulations.
Partnership and Collaboration
- CDA leads cooperative development by synchronizing government efforts and partnerships with the cooperative sector and academia.
- A National Coordinating Committee chaired by CDA coordinates cooperative-related programs across agencies.
- Strong partnerships with cooperative organizations, academe, local governments, private sector, and international entities are emphasized.
- Local Government Units (LGUs) are critical partners with roles in cooperative promotion, technical assistance, trainings, and tax facilitation.
Cooperative Trainings
- CDA develops and conducts training programs for cooperative officers and members with focus on entrepreneurship, management, and technical skills.
- Training standards are formulated in partnership with training institutions and the cooperative sector.
- Accreditation programs for cooperative training providers ensure quality and compliance.
- Training may be delivered by cooperatives, NGOs, government agencies, and academic institutions under CDA guidelines.
Cooperatives in the Education System
- Cooperative education is integrated into formal and non-formal curricula at secondary and higher education levels.
- SUCs are encouraged to offer cooperative development programs and equivalency credits where applicable.
- CDA partners with CHED, DepEd, and TESDA for curriculum implementation.
Inspection, Examination, and Investigation
- CDA conducts regular inspections and special examinations of cooperatives to ensure compliance.
- Investigations may be initiated upon complaints or referrals.
- Assistance from federations, unions, LGUs, and NAC may be requested for inspections and examinations.
- Post-inspection assistance supports cooperative compliance.
Calling of General or Representative Assembly by CDA
- CDA can compel cooperatives to hold General or Representative Assemblies when required by law or for conflict resolution.
- Federation or union representatives must assist and observe without exceeding prescribed roles.
- Supervisory and procedural guidelines ensure proper assembly conduct.
Recognition of Regional Clustered Organizations, Sectoral Apex Organizations, and National Alliance of Cooperatives
- Establishes a multi-tiered organizational structure for cooperative coordination: Regional Clustered Organizations (RCOs), Sectoral Apex Organizations (SAOs), and the National Alliance of Cooperatives (NAC).
- Requirements for recognition and issuance of certificates of recognition laid down.
- These bodies serve as consultative and coordinating entities with CDA.
Cooperative Development Councils (CDCs)
- CDCs are multi-sectoral bodies at various government levels to coordinate cooperative policies and programs.
- Membership comprises representatives from cooperatives, LGUs, NGAs, NGOs, and the academe.
- CDC powers include harmonizing government cooperative programs, monitoring development plans, and proposing policies.
Consultative Mechanism
- Ensures inclusive stakeholder participation in policymaking.
- Consultations conducted regionally and nationally among cooperative clusters and organizations.
- Various consultation modes employed including summits, forums, and digital platforms.
Quasi-Judicial Power
- CDA has jurisdiction over disputes and violations involving cooperatives and their officers/members.
- It can investigate, discipline, issue subpoenas, cite for contempt, and enforce decisions.
- Original jurisdiction assigned between regional offices and the Board; appeal procedures outlined.
- Decisions by the Board appealable to the Court of Appeals.
Suspension, Cancellation, and Revocation
- Grounds for suspension or cancellation of cooperative registration include fraud, illegal purpose, non-compliance with laws, and operational failures.
- Authority to revoke Letters of Authority or Certificates of Authority for satellite or branch offices.
- Due notice and hearing required; internal procedural rules to be formulated.
Settlement of Disputes
- Establishes Alternative Dispute Resolution (ADR) mechanisms for cooperative conflicts.
- Arbitration and mediation are emphasized with an exception allowing direct adjudication of election-related disputes by CDA.
Registration for Tax Exemption
- CDA submits annually updated lists of registered cooperatives to the BIR and LGUs for tax exemption processing.
- Violations of these provisions are penalized under existing cooperative laws.
Priority Program for Agricultural and Fishery Sectors
- CDA prioritizes development of agricultural, agrarian, and aqua cooperatives targeting food security and rural poverty reduction.
- Coordination with Department of Agriculture, DAR, NCIP, and other agencies is mandated.
Special Concern for Cooperative Banks and Financial Service Cooperatives
- CDA promotes cooperative banks and financial service cooperatives in collaboration with the Bangko Sentral ng Pilipinas and cooperative sector.
Cooperatives Engaged in Services Covered by Other Laws
- Cooperatives must comply with licensing and permit requirements from other regulatory agencies as applicable.
- CDA monitors compliance and may issue joint guidelines with concerned agencies.
Prohibition Against Unauthorized Use of Cooperative Names
- Use of "cooperative," "coop," "co-op," or "koop" by unregistered entities is prohibited and penalized.
- CDA may initiate complaints motu proprio for violations.
Management of Existing Accounts Receivables
- CDA to collect or condone accounts receivables from transferred funds and other sources in coordination with the Commission on Audit.
- Guidelines for writing-off of receivables from cancelled or delisted cooperatives are to be issued.
Transitory Provisions
- Current CDA personnel retain their positions subject to reorganization and Civil Service rules.
- Separation benefits available for those opting for voluntary retirement.
- Incumbents continue until new Board composition is constituted.
Information Campaign
- CDA mandated to conduct nationwide information campaigns on the Act’s provisions.
- Develops information templates to aid dissemination to stakeholders and the public.
Amendments to the Implementing Rules and Regulations
- IRR subject to initial review after five years and subsequently every three years.
- Amendments require Board approval and consultation with the cooperative sector.
- Effectivity of amendments upon publication in the Official Gazette.
Final Provisions
- Contains separability and repealing clauses; repeal of the original CDA law (R.A. No. 6939).
- IRR takes effect 15 days after publication in the Official Gazette.