Republic Act No. 6939 PDF

Republic Act No. 6939 1. Introduction The establishment of the Cooperative Development Authority (CDA) through Republic Act No. 6939 marked a significant advancement in the promotion and growth of cooperatives in the Philippines.​ This legislative measure, enacted on March 10, 1990, aimed t...

Republic Act No. 6939 1. Introduction The establishment of the Cooperative Development Authority (CDA) through Republic Act No. 6939 marked a significant advancement in the promotion and growth of cooperatives in the Philippines.​ This legislative measure, enacted on March 10, 1990, aimed to institutionalize the support required for cooperatives to thrive as vehicles for social justice, equity, and economic development. By recognizing cooperatives as essential components of national development, the Act not only laid the foundation for government involvement in cooperative advancement but also defined the powers and responsibilities of the CDA in steering these organizations toward sustainability and effectiveness. Historically, cooperatives have played a pivotal role in addressing poverty and ensuring inclusive growth by providing opportunities for community development. The establishment of the CDA sought to organize and optimize the cooperative movement by implementing a structured developmental program that would enhance the capacity of cooperatives across the nation The primary objectives of Republic Act No. 6939 encompass several key areas: 1. Promotion of Cooperatives: The Act aims to promote the viability and growth of cooperatives as mechanisms for equity and social justice, thereby enhancing community welfare and economic stability. 2. Support for Community Development: It recognizes the importance of supporting impoverished and marginalized communities by providing them with avenues for economic empowerment through cooperative enterprises. 3. Formalization of Cooperative Structures: The CDA is tasked with formulating policies and programs that facilitate the effective organization and functioning of cooperatives, including training and technical assistance The central argument of Republic Act No. 6939 is that the establishment of a robust cooperative sector is imperative for achieving holistic national development. By acknowledging cooperatives as foundational vehicles for equitable growth, this legislation advocates for governmental support in fostering an environment conducive to cooperative success through structured programs and regulatory oversight. The key points of Republic Act No. 6939 can be summarized as follows: Creation of the Cooperative Development Authority: The CDA is designated under the Office of the President to oversee the cooperative sector, ensuring efficient governance and management. Powers and Responsibilities: The CDA is granted substantial authority to develop policies, implement cooperative programs, conduct training, and facilitate financial assistance for cooperatives. Promotion of Cooperative Values: The Act underscores the importance of mutual aid and cooperative principles, which are essential for fostering a sense of community and solidarity among members. Policy Non-Interference: It establishes a framework of non-interference in the management of cooperatives, empowering members to operate independently while receiving governmental support. I​n conclusion, Republic Act No. 6939 is a landmark legislation that underscores the Philippine government's commitment to empowering communities through cooperatives.​ By establishing the CDA and outlining its objectives, the Act aims to create an environment where cooperatives can thrive, effectively contributing to the country's socio-economic landscape. 2. Background Information The creation of Republic Act No. 6939, which established the Cooperative Development Authority in the Philippines, was influenced by several historical and socio-economic factors: Need for Economic Development: During the late 20th century, the Philippines faced significant economic challenges, including poverty, unemployment, and inequality. The government recognized that cooperatives could play a crucial role in addressing these issues by promoting self-help and mutual aid among communities. Promotion of Cooperatives: The cooperative movement gained momentum as a means to empower marginalized sectors, particularly in agriculture and rural areas. The government aimed to harness the potential of cooperatives to improve the economic conditions of these communities, thereby fostering social justice and equity. Policy Framework: The establishment of the Cooperative Development Authority was part of a broader policy framework aimed at integrating cooperative development into national economic planning. This was in line with the constitutional mandate to promote the welfare of the people and ensure equitable distribution of opportunities, income, and wealth. Abolition of Previous Agencies: Prior to the enactment of RA 6939, various government agencies were involved in cooperative development, but their functions were often fragmented and lacked coordination. The law aimed to rationalize these efforts by consolidating the registration and regulation of cooperatives under a single authority, thereby enhancing efficiency and effectiveness in promoting cooperative growth. International Influence: The cooperative principles and practices recognized in the law were influenced by international standards and frameworks, which emphasized the importance of cooperatives in achieving sustainable development goals. This global perspective encouraged the Philippine government to adopt a more structured approach to cooperative development. Overall, the creation of the Cooperative Development Authority through RA 6939 was a strategic response to the pressing socio-economic challenges of the time, aimed at fostering a cooperative sector that could contribute significantly to national development and the well-being of its citizens. The drafting and passage of Republic Act No. 6939 involved several key players, including: ➔ Legislators: Members of the Philippine Congress, particularly those in the Senate and House of Representatives, played a crucial role in drafting and debating the law. Specific legislators who championed cooperative development and supported the bill would have been instrumental in its passage. ➔ Cooperative Sector Representatives: Leaders and representatives from various cooperative organizations and federations contributed to the discussions surrounding the law. Their insights and experiences helped shape the provisions of the act to better address the needs of cooperatives. ➔ Government Agencies: Various government agencies, including the Department of Agriculture and the Bureau of Agricultural Cooperatives Development, were involved in the cooperative sector prior to the establishment of the Cooperative Development Authority. Their input and expertise were likely considered during the drafting process.  ➔ Advocacy Groups: Non-governmental organizations (NGOs) and advocacy groups focused on social justice, economic development, and cooperative movements may have influenced the law's provisions by advocating for the rights and needs of cooperatives and their members. ➔ The Executive Branch: The President of the Philippines and their administration would have played a role in supporting the legislation, particularly in terms of promoting cooperative development as part of the national economic agenda. ➔ Legal Experts: Legal advisors and experts in cooperative law may have been consulted to ensure that the provisions of the act were consistent with existing laws and aligned with international cooperative principles. These key players collaborated to create a legislative framework that would effectively promote the viability and growth of cooperatives in the Philippines, ultimately leading to the enactment of Republic Act No. 6939. The development of Republic Act No. 6939, which established the Cooperative Development Authority in the Philippines: 1. Pre-1990 Context: Prior to the enactment of RA 6939, various government agencies were involved in the promotion and regulation of cooperatives, but their efforts were often fragmented. The need for a more coordinated approach to cooperative development became evident. 2. Legislative Proposals: Throughout the late 1980s, discussions and proposals for a comprehensive cooperative development framework were initiated by legislators, cooperative leaders, and advocacy groups. These discussions aimed to address the challenges faced by the cooperative sector. 3. Drafting of the Bill: A bill was drafted to create the Cooperative Development Authority, consolidating the functions of various agencies and establishing a clear mandate for promoting cooperative growth. Input from stakeholders in the cooperative sector was sought to ensure the bill addressed their needs. 4. Congressional Hearings and Debates: The proposed bill underwent hearings and debates in both the Senate and the House of Representatives. Legislators discussed the provisions of the bill, considering the input from various stakeholders, including cooperative representatives and government agencies. 5. Approval in Congress: After thorough discussions and revisions, the bill was approved by both chambers of Congress. This marked a significant step toward formalizing the establishment of the Cooperative Development Authority. 6. Presidential Approval: The bill was then submitted to the President of the Philippines for approval. Following the President's endorsement, the bill was signed into law. 7. Enactment of Republic Act No. 6939: On March 10, 1990, Republic Act No. 6939 was officially enacted, creating the Cooperative Development Authority. The law outlined the powers, functions, and responsibilities of the Authority, as well as the framework for cooperative registration and development. 8. Implementation Phase: Following its enactment, the Cooperative Development Authority was tasked with organizing itself and implementing the provisions of the law within a specified timeframe. This included the establishment of operational guidelines and the initiation of programs to support cooperatives. 9. Ongoing Development: Since its enactment, the Cooperative Development Authority has continued to evolve, adapting to the changing needs of the cooperative sector and implementing various programs to promote cooperative growth and sustainability. This timeline highlights the key milestones in the development of Republic Act No. 6939, reflecting the collaborative efforts of various stakeholders to enhance the cooperative sector in the Philippines. 3. The Law Itself Republic Act No. 6939 (March 10,1990) AN ACT CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY TO PROMOTE THE VIABILITY AND GROWTH OF COOPERATIVES AS INSTRUMENTS OF EQUITY, SOCIAL JUSTICE AND ECONOMIC DEVELOPMENT, DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, RATIONALIZING GOVERNMENT POLICIES AND AGENCIES WITH COOPERATIVE FUNCTIONS, SUPPORTING COOPERATIVE DEVELOPMENT, TRANSFERRING THE REGISTRATION AND REGULATION FUNCTIONS OF EXISTING GOVERNMENT AGENCIES ON COOPERATIVES AS SUCH AND CONSOLIDATING THE SAME WITH THE AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES This Act which is a consolidation of House Bill No. 10787 and Senate Bill No. 485 was finally passed by the House of Representatives and the Senate on February 22, 1990 and approved on March 2, 1990, respectively. 4. Arguments for and Against Proponents' Arguments (Reasons for Supporting RA 6939) The enactment of Republic Act No. 6939 was driven by the need to strengthen the cooperative movement in the Philippines and create a supportive environment for cooperatives to thrive. Many people support this law because it laid the groundwork for promoting the growth of cooperatives, ensuring government coordination, and fostering socio-economic development. The following reasons highlight the importance of implementing RA 6939: Promotion of Cooperative Growth: Republic Act No. 6939 aimed to foster the viability and growth of cooperatives as tools for equity, social justice, and economic development. By creating the Cooperative Development Authority (CDA), the government was able to focus resources and policies on nurturing cooperatives, particularly in economically disadvantaged areas such as agrarian reform and fisheries. This support helped uplift marginalized communities through grassroots economic empowerment. Government Support and Coordination: The law provided a centralized agency (the CDA) to coordinate cooperative development with different government agencies. Through collaboration with institutions like the Department of Agriculture and the Department of Agrarian Reform, cooperatives were granted access to government programs and resources. This comprehensive support system enhanced cooperatives' potential for growth, ensuring they benefited from government assistance in technical expertise, funding, and decision-making support. Socio-Economic Impact: With support from the CDA, cooperatives played a significant role in promoting economic equity and improving livelihoods in both rural and urban areas. They contributed to essential sectors such as agriculture, housing, financial services, and public utilities. By empowering cooperatives, the law helped reduce inequalities, foster decent work, and promote inclusive growth aligned with the Sustainable Development Goals (SDGs). Opponents' arguments: Discuss the criticisms and concerns raised against the law. Despite the benefits associated with Republic Act No. 6939, the law has faced several criticisms concerning disparities in cooperative growth, bureaucratic challenges, and outdated provisions. Various concerns have been raised regarding its effectiveness: Disparity in Cooperative Growth: Although the Cooperative Development Authority (CDA) has made efforts to promote cooperatives, a significant disparity in their growth persists. A small number of large cooperatives control the majority of the sector's assets, while the majority remain micro or small cooperatives. This uneven distribution of resources limits the ability of smaller cooperatives to have a substantial impact on the national economy, revealing the shortcomings of RA 6939 in addressing these disparities. Bureaucratic and Regulatory Limitations: The centralization of regulatory authority under the CDA has resulted in bureaucratic challenges, particularly for smaller cooperatives. The complex registration and compliance processes enforced by the CDA can be difficult for these cooperatives to navigate, especially given their limited administrative resources. Additionally, the CDA's own limited capacity has led to bureaucratic inefficiencies that hinder effective oversight and support, ultimately stunting the growth of cooperatives. Outdated Framework: The original provisions of RA 6939 have become outdated as the cooperative sector has evolved and the economic landscape has changed. The law has not adequately addressed emerging challenges, such as promoting good governance or facilitating cooperatives' participation in larger-scale economic activities. This inadequacy highlighted the necessity for amendments to modernize the law, rectify inefficiencies, and better cater to the changing needs of the cooperative sector. Counter Arguments: Address potential counterarguments to the position. While RA 6939 has faced criticisms, it's important to view these as opportunities for refinement rather than as evidence of the law's failure. The cooperative sector's growth disparities, for example, can be addressed through strategic collaboration between large and small cooperatives. Larger cooperatives can serve as mentors and resource providers, fostering a culture of shared learning and growth. Their success demonstrates the scalability of cooperative models, inspiring others to pursue similar trajectories. The Cooperative Development Authority (CDA) has played a pivotal role in elevating the cooperative sector's visibility. By promoting cooperatives at the national level, the CDA has attracted increased attention and support, which can benefit smaller cooperatives. While regulatory challenges persist, the CDA is actively working to streamline processes and enhance its capacity. These efforts, combined with ongoing digitalization initiatives, aim to make it easier for cooperatives to navigate the regulatory landscape.  While some provisions of RA 6939 may seem outdated, the CDA has demonstrated adaptability by introducing supplemental guidelines and policies. This approach allows for gradual reform without requiring comprehensive legislative changes. By viewing the law as a framework for incremental improvement, stakeholders can advocate for amendments that address current needs and ensure the law's relevance to the evolving cooperative sector. Reason why it is amended or revised. Over time, it became evident that the original provisions of RA 6939 were inadequate to meet the evolving needs of the cooperative sector. The law needed to address modern challenges, including better governance, financial transparency, and the inclusion of cooperatives in large-scale economic initiatives. Additionally, there was a need to enhance the CDA’s capacity to provide effective oversight and support. These limitations prompted the repeal of RA 6939 and the enactment of RA 11364, which established a more responsive and adaptive structure for cooperative development. The new law sought to address disparities, improve regulatory efficiency, and incorporate updated provisions to support cooperatives in a rapidly changing economic landscape. 5. Analysis and Evaluation The effectiveness of the Republic Act 6939 (Cooperative Development Authority Act), lies in the creation of a supportive environment for the creation and growth of cooperatives, facilitating self-reliance and economic development at the grassroots level; this is possible alongside RA 6938 (the Cooperative Code). This is evident in the increase in the number of cooperatives after the law took effect in 1990.With CDA’s indulgence, and the tax advantages that cooperatives enjoy, the number of cooperatives increased from 4,744 in 1990 to 45,819 in 1997 (Arbuckle et al., 1999). Moreover, it encourages private sector involvement in organizing and managing cooperatives. The CDA benefits from a network of offices across the country, staffed by individuals with relevant expertise in fields like economics, accounting, and agriculture. Policymakers acknowledge the role of cooperatives in improving people's lives and are interested in creating sound policies for non-governmental financial institutions, including cooperatives. However, there are several shortcomings hindering the law’s effectiveness: Lax Regulatory Oversight, Data Gaps,Ineffective Performance Evaluation. Lax Regulatory Oversight, the CDA's regulatory focus has been largely confined to registration, with inadequate attention to monitoring, inspection, and enforcement of prudential standards. Data Gaps: The lack of standardized accounting practices and low reporting compliance among cooperatives makes it difficult for the CDA to gather comprehensive and reliable data for effective oversight. Ineffective Performance Evaluation: The CCIS, the CDA's performance rating system, lacks the necessary depth and scope to adequately assess the financial health and operational efficiency of cooperatives. In the context of the effectiveness of the RA 6939 it is important to note that it is associated with negative and positive consequences. One of the positive consequences is that the law's emphasis on self-regulation within the cooperative sector, as embodied in the principle of "subsidiarity," has encouraged some cooperatives to develop internal controls and sound governance practices. The growth of cooperatives has expanded access to financial services for many Filipinos.On the other hand, the negative consequences include proliferation of non-viable cooperatives and conflict of interest within the CDA.To expound the law has a low barriers to entry and attractive incentives, coupled with inadequate vetting during registration, have contributed to the emergence of numerous non-viable cooperatives. Additionally, the CDA's dual mandate of promoting and regulating cooperatives creates a conflict of interest, potentially compromising its objectivity and effectiveness in both domains. Comparative Analysis of Cooperative Development Agencies in the Philippines, Canada, and the United States Country Role Functions Philippines Primary government Promotional and regulatory roles, formulating regulations, providing (CDA) agency developmental assistance. Primarily promotional and Focuses on promotion and development, while regulation is handled Canada (CCA) development separately by federal and provincial laws. United States Primarily a trade Serves as a trade association, with government regulatory roles handled (NCBA) association by different agencies. Similarities: Promotion of cooperatives: All three agencies share the common goal of promoting the growth and development of cooperatives. Support for cooperatives: They provide various forms of support to cooperatives, such as education, training, and technical assistance. Differences: Regulatory roles: The Philippines' CDA has a dual mandate, combining promotional and regulatory functions. In Canada, regulation is handled separately by federal and provincial laws, while in the United States, regulatory roles are handled by different government agencies. Organizational structure: The CDA is a government agency, while the CCA and NCBA are primarily trade associations. Scope of activities: The NCBA's focus is primarily on trade association activities, while the CDA and CCA have a broader range of responsibilities. Implications for Cooperative Development The varying roles and functions of these agencies can have significant implications for cooperative development in each country. For example: Regulatory oversight: A government agency with a regulatory mandate can ensure compliance with cooperative principles and laws, but it may also impose additional burdens on cooperatives. Promotional activities: Trade associations can provide valuable support and advocacy for cooperatives, but they may have limited regulatory authority.  Separation of roles: A clear separation between promotional and regulatory functions can help to ensure objectivity and fairness in the oversight of cooperatives. 6. Conclusion & References REPUBLIC ACT NO. 6939 AN ACT CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY TO PROMOTE THE VIABILITY AND GROWTH OF COOPERATIVES AS INSTRUMENTS OF EQUITY, SOCIAL JUSTICE AND ECONOMIC DEVELOPMENT, DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, RATIONALIZING GOVERNMENT POLICIES AND AGENCIES WITH COOPERATIVE FUNCTIONS, SUPPORTING COOPERATIVE DEVELOPMENT, TRANSFERRING THE REGISTRATION AND REGULATION FUNCTIONS OF EXISTING GOVERNMENT AGENCIES ON COOPERATIVES AS SUCH AND CONSOLIDATING THE SAME WITH THE AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES. Section 1. Declaration of Policy. — It is hereby declared the policy of the State to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development and to create an agency, in fulfillment of the mandate in Section 15, Article XII of the Constitution. Toward this end, the State shall recognize cooperatives as associations organized for the economic and social betterment of their members, operating business enterprises based on mutual aid, and founded upon internationally accepted cooperative principles and practices. In furtherance of this policy, the appropriate national economic planning agency and include the promotion of growth and expansion of cooperatives as a major and indispensable component of national development plans. All departments, branches, subdivisions and instrumentalities of the Government shall promote the formation of cooperatives under their respective programs by providing them with appropriate and suitable incentives. The State recognizes the cooperative sector as primarily responsible for the institutional development of cooperatives. Accordingly, the State recognizes the rights of the cooperative sector to initiate and foster within its own ranks cooperative promotion, organization, training, information gathering, audit and support services, with government assistance where necessary. Government assistance to cooperatives shall be free from any restriction and conditionality that may in any manner infringe upon the objectives and character of cooperatives as provided in this Act. The State shall, except as provided in this Act, maintain the policy of noninterference in the management and operation of cooperatives. Section 2. Creation of the Cooperative Development Authority. — The Cooperative Development Authority is hereby created under the Office of the President to carry out the provision of this Act. Section 3. Powers, Functions and Responsibilities. — The Authority shall have the following powers, functions and responsibilities: (a) Formulate, adopt and implement integrated and comprehensive plans and programs on cooperative development consistent with the national policy on cooperatives and the overall socioeconomic development plans of the Government; (b) Develop and conduct management and training programs upon request of cooperatives that will provide members of cooperatives with the entrepreneurial capabilities, managerial expertise, and technical skills required for the efficient operation of their cooperatives and inculcate in them the true spirit of cooperativism and provide, when necessary, technical and professional assistance to ensure the viability and growth of cooperatives with special concern for agrarian reform, fishery and economically depressed sectors; (c) Support the voluntary organization and consensual development of activities that promote cooperative movements and provide assistance towards upgrading managerial and technical expertise upon request of the cooperatives concerned; (d) Coordinate the efforts of the local government units and the private sector in promotion, organization, and development of cooperatives; (e) Register all cooperatives and their federations and unions, including their division, merger, consolidation, dissolution or liquidation. It shall also register the transfer of all or substantially all of their assets and liabilities and such other matters as may be required by the Authority; (f) Require all cooperatives, their federations and unions to submit their annual financial statements, duly audited by certified public accountants, and general information sheets; (g) Order the cancellation after due notice and hearing of the cooperative’s certificate of registration for non-compliance with administrative requirements and in cases of voluntary dissolution; (h) Assist cooperatives in arranging for financial and other forms of assistance under such terms and conditions as are calculated to strengthen their viability and autonomy; (i) Establish extension offices as may be necessary and financially viable to implement this Act. Initially, there shall be extension offices in the Cities of Dagupan, Manila, Naga, Iloilo, Cebu, Cagayan de Oro and Davao; (j) Impose and collect reasonable fees and charges in connection with the registration of cooperatives; (k) Administer all grants and donations coursed through the Government for cooperative development, without prejudice to the right of cooperatives to directly receive and administer such grants and donations upon agreement with the grantors and donors thereof; (l) Formulate and adopt continuing policy initiatives consultation with the cooperative sector through public hearing; (m) Adopt rules and regulations for the conduct of its internal operations; (n) Submit an annual report to the President and Congress on the state of the cooperative movement; and (o) Exercise such other functions as may be necessary to implement the provisions of cooperative laws and, in the performance thereof, the Authority may summarily punish for direct contempt any person guilty of misconduct in the presence of the Authority which seriously interrupts any hearing or inquiry with a fine of not more than Five hundred pesos (P500.00) or imprisonment of not more than ten (10) days, or both. Acts constituting indirect contempt as defined under Rule 71 of the Rules of Court shall be punished in accordance with the said Rule. Section 4. Governing Body. — The Authority shall be governed by a Board of Administrators consisting of a Chairman and six (6) members to be appointed by the President, all of whom shall be chosen from among the nominees of the cooperative sector with two (2) representatives each from Luzon, Visayas and Mindanao. They shall serve for a term of six (6) years without reappointment: Provided, That among those first appointed, the Chairman shall serve for a term of (6) years, three (3) members to serve for a term of four (4) years, and three (3) members to serve for a term of two (2) years: Provided, further, That there shall be four (4) ex officio members, one (1) each from the: (a) Department of Agriculture, (b) Department of Transportation and Communications, (c) National Electrification Administration, and (d) Sugar Regulatory Administration. Said representation status for the agencies is on a nonvoting basis and terminates one (1) year from the operation of the Authority, but said ex officio members shall not be holding any other board position in any government entity. The Chairman and members shall serve on a full-time basis. Any vacancy in the Board shall be filled by appointment by the President in accordance with the membership allocation set forth in this section: Provided, That a member so appointed shall serve only for the unexpired term. Section 5. Qualifications of Members of the Governing Board. — No person shall be appointed Chairman or member of the Board of Administrators unless he possesses the following qualifications: (a) A natural-born Filipino citizen of legal age; (b) A Bachelor’s Degree in Cooperatives, Economics, Finance, Agriculture, Fisheries, Veterinary Medicine, Business, Social Science, Law, Management, or in similar fields of study and five (5) years of experience as an official or officer of a cooperative, government agency, or nongovernment organization engaged in cooperative development or, in the absence of a Bachelor Degree, at least ten (10) years of experience in cooperatives either as an officer of a cooperative or a government agency or nongovernment organization engaged in cooperative development; and (c) Must be a resident of the region he represents for at least five (5) years. Any person appointed as Chairman or regular member of the Board of Administrators shall divest himself of any direct or indirect pecuniary interest in or dealings with cooperatives upon his appointment. Section 6. Board of Administrators Meeting. — The Board of Administrators shall meet at least once a month for the transaction of its regular business. Special meetings may be called by the Chairman or majority of the members to consider specific matters. A majority vote by the entire Board shall be required for a decision. All meetings of the Board shall be held at the head office in Metro Manila or at any other place as may be determined by the Board. The Board of Administrators shall appoint an Executive Director who shall be the chief operating officer of the Authority whose compensation shall be fixed by the Board of Administrators. Section 7. Organization of the Authority. — The Authority shall be organized within one hundred twenty (120) days from the effectivity of this Act. Section 8. Mediation and Conciliation. — Upon request of either or both parties, the Authority shall mediate and conciliate disputes within a cooperative or between cooperatives: Provided, That if no mediation or conciliation succeeds within three (3) months from request thereof, a certificate of non-resolution shall be issued by the commission prior to the filing of appropriate action before the proper courts. Section 9. Power to Register Cooperatives. — The power to register cooperatives shall be vested solely on the Authority. The functions of the following departments and agencies relating to the registration of cooperatives as such are hereby transferred to the Authority: (a) The Department of Agriculture; (b) The Bureau of Agricultural Cooperatives Development; (c) The Department of Transportation and Communications; (d) The Sugar Regulatory Administration; (e) The National Electrification Administration; and (f) Any other pertinent government agency. The Bureau of Agricultural Cooperatives Development created under Executive Order No. 116, Series of 1987, is hereby abolished and its qualified employees are hereby absorbed by the Cooperative Development Authority, in accordance with its staffing pattern, subject to Civil Service rules and regulations and rules of the Office of Compensation and Position Classification: Provided, That the Regional Cooperative Development Assistance Offices of Regions IX and XII, created under Executive Order No. 634, are also hereby abolished and their employees shall be given preference for employment with the Cooperative Development Authority in accordance with its staffing pattern, subject to Civil Service rules and regulations: Provided, finally, That those who are not absorbed shall be given separation pay computed at one and one-fourth (1 1/4) months salary for every year of service. Service of six (6) months or more shall be considered as one (1) year in computing the years of service for severance pay and, whenever applicable, other retirement benefits under existing laws. Section 10. Transfer of Funds and Programs. — The Cooperative Development Loan Fund created under Presidential Decree No. 175, as amended, is hereby transferred from the Department of Agriculture to the Authority. The function of the Fund for Management Training and Assistance Program granted to the Department of Agriculture by Presidential Decree No. 175, as amended, is likewise hereby transferred to the Authority. The fund provided for the Management Training and Assistance Program under Presidential Decree No. 175, as amended, is hereby converted into a fund for the development of cooperatives and may be used for such purpose upon the request of the cooperatives concerned: Provided, That duly registered cooperatives shall have the right to establish their own private training centers or federations for purposes of cooperative development. In addition, the Cooperative Marketing Project as created under loan agreements which are now managed by the Department of Agriculture is likewise hereby transferred to the Authority. Section 11. Cooperatives in the Education System. — The history, philosophy, principles and practices of cooperatives and their role as a factor in the national economy shall be disseminated both in formal and non-formal education. The role of nongovernment organizations, not registered as cooperatives but duly registered under Philippine laws and engaged in cooperative promotion, organization, research and education, shall be recognized. The Authority may accredit such nongovernment organizations as non-academic training organizations. The training courses offered by them may be eligible as credits for the purposes of academic, professional and career advancements of their trainees. Existing training centers for cooperatives may qualify as nongovernment organizations under this Act. State colleges and universities shall provide technical assistance and guidance to cooperatives in the communities wherein they operate, upon request. Section 12. Cooperatives in the Banking System. — The promotion and development of cooperative banks as part of the Philippine banking system shall be a major concern of the Authority which shall undertake the necessary program towards this end in collaboration with the Central Bank of the Philippines and the cooperative sector concerned. Section 13. Rule-Making Authority. — The Authority is hereby authorized to promulgate, after due public hearing and upon approval of the President, such rules and regulations as may be necessary to implement the provisions of this Act. Such implementing rules and regulations shall take effect within fifteen (15) days after publication thereof in the Official Gazette or in two (2) newspapers of general circulation. All subsequent amendments to the implementing rules and regulations shall undergo the same process. Section 14. Prohibition. — No organization shall be allowed to use the title “cooperative” in its name unless it follows all generally accepted cooperative principles, applicable cooperative laws, and is duly registered under this Act: Provided, That organizations which have used the word “cooperative” as part of their nomenclature but which do not qualify as cooperatives under the provisions of this Act shall have three (3) years within which to qualify and to register with the Authority. If at the end of the three-year period provided herein, the said organizations still do not qualify, it shall be unlawful for the organizations to continue using the word “cooperative” in their names. Section 15. Information Campaign. — The Cooperative Development Authority is mandated to conduct a six (6) months information campaign on the provisions of this Act, beginning three (3) months from the effectivity of this Act. Section 16. Appropriations. — The funds needed to carry out the provisions of this Act shall be charged to the appropriations of the Bureau of Agricultural Cooperatives Development and the Regional Cooperative Development Assistance Offices of Regions IX and XII under the current General Appropriations Act in addition to the appropriations of other departments/agencies/funds whose functions/programs are transferred to the Authority: Provided, That in its initial year of operations, an additional amount of not exceeding Sixty million pesos (P60,000,000.00) may be requested and drawn by the Authority from the Contingent Fund of the President. Thereafter, such sums as may be necessary for its continued implementation shall be included in the annual General Appropriations Act. Section 17. Transitory Provisions. — All cooperatives registered under Presidential Decree Nos. 175 and 775, and Executive Order No. 898 shall be deemed registered with the Cooperative Development Authority: Provided, however, That they shall submit to the nearest Cooperative Development Authority office their certificates of registration, copies of their articles of incorporation and bylaws, and their latest duly audited financial statements within one (1) year from effectivity of this Act, otherwise, their registration shall be cancelled: Provided, further, That cooperatives created under Presidential Decree No. 269, as amended by Presidential Decree No. 1645, shall be given three (3) years within which to qualify and register with the Authority: Provided, finally, That after these cooperatives shall have qualified and registered, the provisions of Sections 3 and 5 of Presidential Decree No. 1645 shall no longer be applicable to the said cooperatives. Section 18. Repeals. — All acts, general orders, executive orders, letters of implementation, letters of instruction, regulations or circulars, or parts thereof, inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly. In case of doubt, the same shall be resolved in favor of the cooperatives. Section 19. Separability. — If for any cause any part of this Act is declared unconstitutional, the rest of the provisions shall remain in force and effect. Section 20. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. Republic Act No. 6939, also known as the "Cooperative Development Authority (CDA) Law," was enacted in 1990 in the Philippines. It created the Cooperative Development Authority, a government agency tasked with promoting the growth and development of cooperatives. The CDA is responsible for registering cooperatives, providing them support services, and ensuring their compliance with existing laws. Pros: 1. Support for Cooperatives: RA 6939 formalizes government support for cooperatives, enabling access to development programs, training, and financial resources. 2. Economic Empowerment: By fostering cooperatives, it promotes economic self-reliance and enhances the livelihood of communities, especially in rural areas. 3. Regulatory Oversight: The law ensures proper monitoring and governance of cooperatives, protecting members from mismanagement or exploitation. 4. Encourages Social Responsibility: Cooperatives foster community-centered economic activities, promoting shared responsibility and equitable profit-sharing. Cons: 1. Bureaucracy: Some cooperatives may face delays or inefficiencies due to government oversight and administrative requirements. 2. Limited Awareness: Many cooperatives, especially in remote areas, are unaware of the benefits or support provided under RA 6939, limiting its impact. 3. Regulatory Burden: Smaller cooperatives may struggle with the compliance requirements imposed by the CDA, making it harder for them to operate efficiently. 4. Political Influence: In some cases, cooperatives may face political interference that hinders their independence and the effectiveness of the CDA.