AN ACT CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY TO PROMOTE THE VIABILITY AND GROWTH OF COOPERATIVES AS INSTRUMENTS OF EQUITY

Case Overview and Summary

Summary of Republic Act No. 6939

Declaration of Policy (Section 1):
- Promote viability and growth of cooperatives as instruments of equity, social justice, and economic development.
- Recognize cooperatives as associations for economic and social betterment of members, operating on mutual aid and cooperative principles.
- Include promotion of cooperatives in national development plans.
- Provide incentives for formation of cooperatives by government agencies.
- Recognize cooperative sector's responsibility for institutional development of cooperatives.
- Provide government assistance without infringing on cooperative objectives and character.
- Maintain policy of non-interference in management and operation of cooperatives.

Creation of Cooperative Development Authority (Section 2):
- Cooperative Development Authority is created under the Office of the President.

Powers, Functions, and Responsibilities (Section 3):
- Formulate, adopt, and implement plans and programs on cooperative development.
- Develop and conduct management, training programs, and provide technical assistance for cooperatives.
- Support voluntary organization and development of cooperative movements.
- Coordinate with local government units and private sector for cooperative promotion and development.
- Register cooperatives, their federations, unions, and related matters.
- Require submission of annual financial statements and information sheets from cooperatives.
- Cancel certificate of registration for non-compliance after due notice and hearing.
- Assist cooperatives in arranging financial and other forms of assistance.
- Establish extension offices in specified cities initially.
- Impose and collect reasonable fees for registration.
- Administer grants and donations for cooperative development.
- Formulate and adopt policy initiatives through public hearings.
- Adopt rules and regulations for internal operations.
- Submit annual report on state of cooperative movement.
- Exercise other functions necessary to implement cooperative laws and punish for contempt.

Governing Body (Section 4):
- Board of Administrators consisting of a Chairman and six members appointed by the President from nominees of cooperative sector.
- Four ex-officio non-voting members from specified government agencies for one year.
- Members serve for six years without reappointment, with staggered terms initially.

Qualifications of Board Members (Section 5):
- Natural-born Filipino citizen of legal age.
- Bachelor's degree in specified fields and five years of cooperative experience, or ten years of experience without a degree.
- Resident of the region represented for at least five years.
- Divest from pecuniary interests in cooperatives upon appointment.

Board Meetings (Section 6):
- Meet at least once a month, with special meetings as needed.
- Majority vote required for decisions.
- Appoint an Executive Director as chief operating officer.

Mediation and Conciliation (Section 8):
- Authority shall mediate and conciliate disputes within or between cooperatives upon request.
- Issue certificate of non-resolution after three months if mediation fails.

Power to Register Cooperatives (Section 9):
- Authority has sole power to register cooperatives.
- Registration functions of specified government agencies transferred to Authority.
- Bureau of Agricultural Cooperatives Development abolished, with employees absorbed or given separation pay.

Transfer of Funds and Programs (Section 10):
- Cooperative Development Loan Fund and Management Training and Assistance Program transferred from Department of Agriculture to Authority.
- Cooperative Marketing Project managed by Department of Agriculture transferred to Authority.

Cooperatives in Education System (Section 11):
- Disseminate history, philosophy, principles, and practices of cooperatives in formal and non-formal education.
- Recognize role of non-government organizations engaged in cooperative promotion, organization, research, and education.
- Authority may accredit such organizations as non-academic training organizations.
- State colleges and universities shall provide technical assistance to cooperatives upon request.

Cooperatives in Banking System (Section 12):
- Promote and develop cooperative banks as part of Philippine banking system in collaboration with Central Bank and cooperative sector.

Rule-Making Authority (Section 13):
- Authority authorized to promulgate rules and regulations after public hearing and approval of the President.
- Rules and regulations take effect 15 days after publication in Official Gazette or newspapers.

Prohibition (Section 14):
- No organization allowed to use "cooperative" in name unless following cooperative principles, laws, and registered under this Act.
- Organizations using "cooperative" have three years to qualify and register, or remove the word from their name.

Information Campaign (Section 15):
- Authority mandated to conduct six-month information campaign on provisions of this Act, beginning three months from effectivity.

Appropriations (Section 16):
- Funds charged to appropriations of transferred agencies and additional P60,000,000 from Contingent Fund of the President in initial year.
- Subsequent funds included in annual General Appropriations Act.

Transitory Provisions (Section 17):
- Cooperatives registered under specified laws deemed registered with Authority, but must submit documents within one year or face cancellation.
- Cooperatives under Presidential Decree No. 269 given three years to qualify and register.

Repeals (Section 18):
- Inconsistent acts, orders, regulations, or circulars repealed or modified accordingly, with doubts resolved in favor of cooperatives.

Separability (Section 19):
- If any part is declared unconstitutional, the rest shall remain in force.

Effectivity (Section 20):
- Act takes effect 15 days after publication in Official Gazette or newspaper.