Agricultural Cooperatives Act

Senate Office of the sue mary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 26 MAR 17 P6:28 SENATE RECEIVED BY: 1990 Senate Bill No. (In substitution of Senate Bill Nos. 389 and 1183) PREPARED BY THE COMMITTEES ON AGRICULTURE, FOOD AND AGRARIAN REFORM; COOPERATIVES; FINANCE; AND WAYS AND MEANS WITH SENATORS RISA HONTIVEROS AND FRANCIS N. PANGILINAN AS AUTHORS THEREOF AN ACT ENSURING THE DEVELOPMENT, PROMOTION, AND PROTECTION OF AGRICULTURAL AND FISHERIES COOPERATIVES, PROVIDING FOR THE CREATION OF THE BUREAU OF AGRICULTURAL AND FISHERIES COOPERATIVES, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I DECLARATION OF POLICY

Section 1. Short Title. - This Act shall be known as the "Agricultural

Cooperatives Act."

Sec. 2. Declaration of Policy. - The State declares that expanding

productivity and sustaining increase in the amount of goods and services produced by the nation are key to raising the quality of life for all, especially for the underprivileged. The State emphasizes the need to hasten growth, integration, and modernization of the agricuitural sector to address food insecurity, which disproportionately affects the marginalized sectors of society. The State values collective action as a catalyst and a vehicle for empowerment. Cooperativism or the cooperative approach in charting progress, especially among farmers and fisherfolk, has been proven to be successful not only in other countries,

I but also among local farmers and fisherfolk. The indispensable participation of women and youth as a primary force in the collective drive to such empowerment has been 3 proven essential. It is thus the State's policy to focus on establishing a structure that 5 institutionalizes technical support, capacity-building, and sustained progress through 6 collective cooperative undertaking. It shall foster the creation and growth of 7 cooperatives as a practical vehicle for promoting self-reliance and harnessing people 8 power towards the attainment of economic development and social justice. Towards this end, the Government and all of its branches, subdivisions, agencies, and instrumentalities shall ensure the provision of technical guidance, I1 financial assistance, and other relevant services to enable farmers, fisherfolk, and 12 other agricultural workers to organize themselves into self-sustaining cooperatives 13 that work together to strengthen the Philippine agricultural economy. CHAPTER II GENERAL PROVISIONS

Sec. 3. Definition of Terms. - As used in this Act:

a. Agribusiness refers to a range of activities that occur in the agricultural value chain utilized in modern food production, including but not limited to farming, forestry, fishing operations, as well as seed supply, agrichemicals, related machineries, processing, storage, marketing, distribution, and sales, whether wholesale or retail; b. Agricultural and Fisheries Cooperative or Agricultural Cooperative refers to a type of cooperative comprising of farmers, fisherfolk, agrarian reform beneficiaries, dairy farmers, community forestry farmers, aquaculture farmers, and other individuals engaged in agricultural activities. They voluntarily organize themselves into an agricultural-based economic enterprise, including subsidiary agricultural cooperatives formed by existing multi-purpose cooperatives and multi-purpose cooperatives whose primary business activity is at least fifty percent (50%) related to agricultural production, agro-industry, agri-business, or services related to agricultural production. Agricultural activities encompassed by the cooperative include the production, processing,

and distribution of agricultural, fishery, and forestry inputs and products, whether primary, derived, or processed. The cooperative also provides a range of services aimed at improving the livelihood, income, and overall welfare of its members. These services include savings and credit, marketing, agricultural extension, farm education, agri-tourism, digital agriculture, and other allied services related to climate resiliency and safety nets. Agricultural cooperatives are registered with and regulated by the Cooperative Development Authority (CDA); C. CDA refers to the Cooperative Development Authority; d. Cooperative refers to an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services, and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles; e. Clustering refers to the process by which multiple agribusinesses, each involved in different stages of the agricultural value chain, combine their operations into a single hub. This collaboration aims to enhance operational efficiency, streamline processes, and maximize profits through integrated efforts; f. Consolidation refers to a process by which fragmented and scattered landholdings are reorganized or restructured into larger, more contiguous plot or plots. This can be done through voluntary reallocation, sales, land exchanges or swaps, lease, and other means; g. Criteria for Assessment and Ratings refers to a set of standards in determining the performance of an agricultural cooperative, which includes, among others, enterprise management, adherence to cooperative principles, and product or service quality; h. Department refers to the Department of Agriculture; i. Family Farming refers to an agribusiness operation that is managed and operated by a family unit, related by consanguinity or affinity, whether nuclear or extended, and which predominantly relies on the labor of the members of

such family for its operations. The family and the farm, therefore, are inextricably linked, and co-evolve with each other; j. Local Development Hub (LDH) refers to a farming zone or transport infrastructure, which is generally far from formal markets. An LDH serves around five hundred (500) to one thousand (1,000) farmers, and links them to buyers, which may be, among others, traders, processors, and export companies, among others; k. RSBSA refers to Registry System for Basic Sectors in Agriculture established and maintained by the Department; I. Secretary refers to the Sécretary of the Department of Agriculture;

Sec. 4. Purposes and Objectives of Agricultural Cooperatives. -

12 Agricultural cooperatives shall be organized for any or all of the following purposes and objectives: a. To develop a culture of collective undertaking and underscore and propagate its benefits to the lives of farmers and fisherfolk; b. To coordinate and facilitate the dissemination of scientific methods of production; c. To engage in the business of production, processing, storage, transport, and marketing of farm products for farmer and fisherfolk members and their immediate families, hereinafter referred to as "beneficiaries"; 21 d. To provide financial facilities to beneficiaries for provident or production purposes at the least possible costs; e. To arrange and facilitate the expeditious transfer of appropriate and suitable technology to beneficiaries and marginal farmers at the lowest possible costs; f. To provide social security benefits, health, medical and social insurance benefits and other social and economic benefits that promote the general welfare of the farmer and fisherfolk members; g. To provide a non-formal education, vocational/technical training and livelihood program to beneficiaries and marginal farmers; h. To act as channels for external assistance and services to the beneficiaries and marginal farmers;

i. To undertake a comprehensive and integrated • development program in agricultural and fishery areas with special concern for the development of agro- based, marine-based, and cottage-based industries; j. To represent the benéficiaries on any or all matters that affect their interest; and k. To undertake such other economic or social activities as may be necessary or incidental in the pursuit of the foregoing purposes and objectives.

Sec. 5. Registration of Agricultural Cooperatives. - Agricultural

9 Cooperatives shall be governed by the general law on cooperatives, except as 10 otherwise provided herein. Agricultural cooperatives shall be registered with the CDA to avail of the privileges and exemptions extended to cooperatives under Republic Act No. 9520 or the Philippine Cooperative Code of 2008. An agricultural cooperative shall file its application for registration with the CDA's regional office that has jurisdiction over its area of operation. No fees shall be assessed or charged to any agricultural cooperative by any government entity, national or local, at any stage of its organization and registration process: Provided, That the registration of an agricultural cooperative shall be accompanied by a Clearance to Register issued by the Bureau of Agricultural Cooperatives (created under Sec. 14 of this Act), which shall be given free of charge.

Sec. 6. Capital Requirements of Agricultural Cooperatives. - The

21 authorized share capital of an agricultural cooperative shall be stated in its Articles of 22 Cooperation. Prior to its registration, at least twenty-five percent (25%) of the 23 authorized share capital shall be subscribed to by the members, and at least twenty- five percent (25% of the subscribed share capital shall be paid-up: Provided, That the paid-up capitalization requirement for primary cooperatives shall not be less than Fifteen Thousand Pesos (P15,000.00)..

Sec. 7. Bond of Membership. - The bond of membership of agricultural

cooperatives shall be any of the following: a. Residential - members are farmers, farm workers, or fisherfolk who are actually and physically residing within the area of operation; b. Occupational - members are engaged in raising or culture of plants or animals, or are part of the technical and scientific communities of the agriculture sector;

c. Associational - members are from registered associations, groups, clubs, cultural and other similar aggrupation of farmers, farm workers, and fisherfolk; and d. Institutional - members are employees, workers, or officers of a particular institution who are undertaking or will undertake agricultural projects. Provided, That at least fifty-one per centum (51%) of its members are duly registered with the Registry System for Basic Sectors in Agriculture (RSBSA).

Sec. 8. Cooperative Business Activities and Allied Services, - A duly

registered agricultural cooperative may engage in all or any of the following activities: a. Supply and distribution of consumer, agricultural, aqua-cultural, and industrial goods, production inputs, and raw materials and supplies, machinery, equipment, facilities and other services and requirements of the beneficiaries and marginal farmers at reasonable prices; b. Marketing of the products and services of the beneficiaries in local and foreign markets; c. Processing of the members' products into finished consumer or industrial goods for domestic consumption or for export; • d. Provision of essential public services at cost such as power, irrigation, potable water, passenger and/or cargo transportation by land or sea, communication services, and public health and medical care services; e. Management, conservation, and commercial development of marine, forestry, mineral, water and other natural resources subject to compliance with the laws and regulations on environmental and ecological controls; f. Provision of financial, technological, and other allied services and facilities required by the beneficiaries in their daily lives and livelihood such as, but not limited to, warehousing, cold storage and other post-harvest services, and such other similar business services and activities that will reduce cost or add value. CHAPTER III BENEFITS OF AGRICULTURAL COOPERATIVES

Sec. 9. Tax Treatment of Agricultural Cooperatives. - Notwithstanding any

law or regulation to the contrary, duly registered agricultural cooperatives that

1 transact with both members and non-members, and with reserve funds of One Hundred Million Pesos (P100,000,000.00) or below shall be exempt from all national internal revenue taxes, fees, and charges of whatever name and nature. On the other hand, if such agricultural cooperatives have reserve funds of greater 5 than One Hundred Million Pesos (PI00,000,000.00), it shall pay the following taxes on their transactions with non-members: a. Income Tax on income derived from transactions with non-members: Provided, That the same tax is not consequently imposed on interest individually received by members. The tax base for all cooperatives liable to pay income tax shall be the income directly related from the business transactions with non-members after deducting the amounts for the statutory funds; b. Value-Added Tax (VAT) on transactions with non-members: Provided, That duly registered agricultural cooperatives shall be exempt from the imposition of VAT, on the following: 1. Sales by agricultural cooperatives duly registered with the CDA to their members as well as sale of their produce, whether in its original state or processed form, to non-members; their importation of direct farm inputs, machinery and equipment, including spare parts thereof, to be used directly and exclusively in the production and/or processing of their produce, and their resale to other agricultural cooperatives; 2. Gross receipts from lending activities to its members or other agricultural cooperatives; Provided, That the exempt transactions in the foregoing shall include sales made by agricultural cooperatives engaging in the production and processing of raw materials or of goods produced by their members into finished or processed products for sale by the cooperatives to their members and non- members: Provided, further, That any processed product or its derivative arising from the raw materials produced by their members, sold in the name and for the account of the cooperative shall be deemed a product of the cooperative and its members: Provided, finally, That at least twenty five per

centum (25%) of the net income of the cooperatives is returned to the members in the form of interest and/or patronage refunds. c. All sales of goods and/or services rendered for non-members shall be subject to the applicable percentage taxes; and d. All other taxes unless otherwise provided herein. Donations to duly accredited charitable, research and educational institutions and reinvestment to socio-economic projects within the area of operation of the cooperative may be tax deductible. Gifts and donations of real and personal properties of all kinds to the agricultural cooperative shall be exempt from the donor's tax and the same shall be considered • 11 as allowable deductions from the gross income of the donor: Provided, that the allowable deductions shall be equivalent to one hundred fifty percent (150%) of the value of such donation. Valuation of assistance other than money shall be based on the acquisition cost of the property. Such valuation shall take into consideration the depreciated value of property in case said property has been used: Provided, further, that tax exemptions herein provided shall terminate against an agricultural cooperative ten (10) years after its registration with the CDA or ten (10) years after the publication of the implementing rules and regulations governing this provision, which ever comes later.

Sec. 10. Tax Treatment of Agricultural Cooperatives that Transact with

Members Only. - Duly registered agricultural cooperatives under this Act which do not transact any business with non-members or the general public shall not be subject to any taxes, fees, and charges imposed under the internal revenue laws and other tax laws.

Sec. 11. Other Benefits and Privileges of Agricultural Cooperatives. - An

agricultural cooperative shall enjoy the following benefits and privileges: a. Taxes, Duties, and Liens - 1. All benefits, privileges, and tax treatments of cooperatives as defined and enumerated under RA 9520 and other relevant laws shall apply to agricultural cooperatives; 2. Agricultural cooperatives shall be exempt from customs duties, advance sales or compensating taxes on their importation and local purchase of machinery,

equipment, accessories, batteries, and spare parts used by them: Provided, That all tax- and duty-free imports and local purchases shall not be sold nor the beneficial ownership thereof be transferred to any person until after five (5) years, otherwise, the cooperative and the transferee or assignee shall be solidarity liable to pay twice the amount of the imposed tax and/or duties; and 3. All real properties owned, and those directly used for the operations, management, and maintenance of agricultural cooperatives shall be exempt from the payment of real property taxes under existing laws. b. Trainings and Conferences - All trainings and conferences for the organization, registration, management and operations of an agricultural cooperative, rendered by the appropriate government agency, shall be given free of charge, including costs of venue, training materials, speakers and resource persons. The Cooperative Development Officers (CDOs) shall be primarily responsible for these trainings and conferences within their respective localities. c. Consolidation - Agricultural cooperatives may consolidate agricultural lands owned by its members within a contiguous area for purposes of agricultural development. d. Negotiated Procurement by National and Local Government Agencies - To promote and support agricultural cooperatives, national and local government agencies shall negotiate the procurement of agricultural products and other agricultural commodities from registered and accredited agricultural cooperatives. Negotiated procurement of these products and commodities shall follow Republic Act No. 12009, its implementing rules and regulations, and applicable guidelines issued by the Government Procurement Policy Board: Provided, That Resolution No. 08-2025, entitled: "Approving the Guidelines for the Procurement of Agricultural and Fishery Products under Republic Act No. 11321 or the "Sagip Saka Act" and Executive Order No. 101, entitied: Directing the Full Implementation of Republic Act No. 113211 or the "Sagip Saka Act" shall govern such procurement: Provided, further, That the

procurement of said products and commodities are necessary for the performance of the mandates of the procuring entities. e. Loans and Grants - 1. All loans applied for by agricultural cooperatives in any government-owned or -controlled banks or government financial institutions shall enjoy preferential treatment as to the requirements, rates, securities, and collaterals; and 2. The Department shall coordinate with the Bangko Sentral ng Pilipinas (BSP) to lower the requirements for all loans applied for and granted to agricultural cooperatives. f. Strengthening Program for Agricultural Cooperatives - The government through the Department and the CDA shall introduce a program aimed at strengthening agricultural cooperatives through mergers and consolidations. This initiative, part of the government's broader effort to enhance the stability and resilience of the agriculture sector, offers income support incentives to encourage smaller agricultural cooperatives and farmers and fisherfolk associations to consolidate that can lead to improved operational efficiencies, reducing costs and improving service delivery for agricultural cooperatives. These may include grants or subsidies that help build business scale and improve capital base, operational synergies, broader service offerings, and risk mitigation. Along this line, any initiative from the agricultural and fisherfolk cooperatives to form federation of cooperatives shall be supported by the DA and the CDA in terms of policy guidance and supervision. The DA and the CDA shall promulgate the guidelines for its implementation. • Sec. 12. Organization as a Multi-Purpose Cooperative. - Notwithstanding any law to the contrary, an agricultural cooperative may be organized as a multi- purpose cooperative from its registration with the CDA: Provided, That it has complied with the minimum requirements for an agricultural cooperative as prescribed by the CDA's Rules and Regulations.

Sec. 13. Pre-Cooperative Agricultural Organization. - Prior to registration

with the CDA, a group of natural persons intending to form an agriculture cooperative

1 may voluntarily form a Pre-Cooperative Agricultural Organization (PCAO) that shall 2 have its own juridical personality to undertake activities that shall determine the 3 viability of the creation of an agricultural cooperative. The PCAO must be registered as such with the Cooperative Development Offices (CDOs) of the appropriate LGU where the PCAO intends to operate. The Bureau may assist and endorse PCAOs to the 6 CDA for registration. The DA and the CDA, in coordination with the CDOs, shall assist PCAOs so that 8 they can formally organize as agricultural cooperatives: Provided, That should the 9 PCAO decide to formally organize into a cooperative, it must comply with the 10 requirements under the law. Any contract executed by the PCAO prior to its registration as an agricultural cooperative shall remain valid and binding between the parties insofar as it redounds to the benefit of the cooperative. The DA and the CDA shall jointly issue guidelines on the mechanisms for PCAOs. CHAPTER IV BUREAU OF AGRICULTURAL COOPERATIVES

Sec. 14. Creation of the Bureau of Agricultural Cooperatives. - The

Department shall establish a Bureau of Agricultural Cooperatives, hereinafter referred to as the Bureau. It shall be a line bureau and headed by a Bureau Director. Its organizational and staffing pattern shall be determined by the Department, in consultation with the Department of Budget and Management (DBM): Provided, That every municipality in the country shall have at least two (2) Cooperative Development Officer (CDO).

Sec. 15. Powers and Functions of the Bureau of Agricultural

Cooperatives. - The Bureau of Agricultural Cooperatives shall exercise the following powers and functions: a. Serve as the primary coordinating, implementing, and administrative body responsible for matters relating to agricultural cooperatives, including, but not limited to, monitoring their performance and implementing plans and programs for their growth and development according to an established assessment and ratings system;

b. Collaborate and coordinate with various government agencies, institutions, and units for the development and implementation of projects and plans for agricultural cooperatives; b. Promote the use of digital platforms and innovative technologies for the growth and development of agricultural cooperatives, in coordination with relevant agencies; c. Consolidate and study all relevant information regarding agricultural 8 • cooperatives that shall be used in the formulation of policies and programs for the sector; d. Develop advocacy programs for capacity-building and further education of members of agricultural cooperatives, with a particular focus on women and youth; e. Provide technical assistance to agricultural cooperatives; f. Assist in the establishment of the Local Development Hubs (LDHs) in order to foster cooperation, collaboration, and mutual support among agricultural cooperatives, in coordination with the CDA and LGUs; g. Promote agricultural cooperative clusters and assist in the creation thereof, as a means to forge strategic partnerships among cooperatives; and h. Such other functions as may be necessary for the implementation of this Act.

Sec. 16. Sustainability Mapping. - Within one (1) year from the effectivity of

this Act, the Bureau shall undertake a comprehensive nationwide survey in order to assess the agricultural sustainability status of each region and LGU. The findings of such nationwide survey shall serve as the foundation for the formulation of a ten (10)- year Agricultural Cooperative Development and Food Security Master Plan. The Master Plan shall identify priority sectors and projects aimed at promoting agricultural development and sustainability throughout the country. The plan shall be designed to enhance food security, improve agricultural productivity, and ensure long-term sustainability of the agricultural sector.

Sec. 17. Clustering and Consolidation. - In order to pool their resources for

increased viability and market competitiveness, the Department, Department of Agrarian Reform (DAR), Department of Trade and Industry (DTI), and the CDA shal jointly establish a program that will promote, facilitate, and encourage agricultural

1 cooperatives to form into clusters that will encompass the whole agricultural value 2 chain, including but not limited to land consolidation, postharvest processing, 3 distribution, logistics, marketing, and promotions. Within sixty (60) days from the effectivity of this Act, the Department, DAR, DTI 5 and CDA shall jointly issue the guidelines for the implementation of the foregoing 6 program, and shall provide the necessary assistance at every step of the clustering 7 and consolidation process, including the formulation of cluster development plans. The clustering or merger and consolidation of agricultural cooperatives shall be 9 further elaborated in the Implementing Rules and Regulations of this Act.

Sec. 18. Local Development Hubs. - The Department and the CDA shall jointly

establish Local Development Hubs (LDHs) in order to strengthen the market linkages between farmers and buyers, fostering agricultural development and economic growth at the local level. Further, they shall jointly issue the guidelines for the operations and maintenance thereof.

Sec. 19. Sustainability and Innovation. - The Bureau shall allocate funding

and support for the development and implementation of innovative and sustainable agricultural practices.

Sec. 20. Mentorship and Training. - The Bureau shall implement programs

that will focus on the capacity- and capability-building of members of agricultural cooperatives, especially the empowerment of women and young farmers. Among others, these programs may include: a. Internship and apprenticeship programs with duly accredited agricultural cooperatives, in partnership with the Committee on Higher Education (CHED); b. Certification programs for management and operation of agricultural cooperatives, as well as related technical skills, in partnership with the Technical Education and Skills Development Authority (TESDA); c. Scholarships or student loan forgiveness, as may be necessary; and d. Incentives for the discovery or development of innovative and sustainable agricultural practices and techniques.

Sec. 21. Assessment and Ratings. - Upon the effectivity of this Act, the Bureau

shall establish the criteria for assessment and ratings system for agricultural cooperatives, which shall measure the performance, including the social and

1 community impact of the agricultural cooperatives, using both qualitative and quantitative metrics, and which shall be used to classify and determine the best- performing agricultural cooperatives among various categories. Thereafter, the Bureau and the CDA shall review the performance of registered agricultural 5 cooperatives every three (3) years and update their ratings accordingly. The Department and the CDA shall use the foregoing in the provision of incentives 7 and benefits to agricultural cooperatives under the law.

Sec. 22. Annual Trade Fair and Awards. - The Bureau, in coordination with the

9 CDA, shall establish the Annual Agricultural Cooperatives Trade Fair and Awards to 10 showcase exemplary business achievement, latest innovations, and other emerging • 11 trends in the sector. The Bureau shall ensure that agricultural cooperatives are able to participate and 13 exhibit their products during said Fair and shall encourage their participation in other trade fairs and expos. CHAPTER V AGRICULTURAL COOPERATIVES COUNCIL

Sec. 23. Creation of the Agricultural Cooperatives Council. - There is

hereby created the Agricultural Cooperatives Council, hereinafter referred to as the Council, which shall be the primary policy and planning body for the promotion, development, and modernization of agricultural cooperatives and organizations.

Sec. 24. Composition of the Council. - The Council shall be composed of the

following members: a. Secretary of Agriculture, as Chairperson; b. Chairperson of the CDA, Vice-Chairperson; c. Undersecretary of the Department of Trade and Industry; d. Undersecretary of the Department of Agrarian Reform; e. Undersecretary of the Department of Environment and Natural Resources; f. Undersecretary of the Department of Education; g. Undersecretary of the Department of Science and Technology; h. Undersecretary of Department of Economy, Planning and Development; i. Director-General of the Technical Education and Skills Development Authority; j. Executive Director of the National Disaster Risk Reduction and Management

Council; 1. Commissioner of the Commission on Higher Education m. Land Bank of the Philippines; n. Development Bank of the Philippines; 0. Agricultural Credit and Policy Council; I. Representative from the Philippine Statistics Authority; and m. Two (2) representatives each for Luzon, Visayas, and Mindanao from the primary agricultural cooperatives sector who are members of a nationwide cooperative federation.

Sec. 25. Powers and Functions of the Council. - The Council shall exercise

11 the following powers and functions: a. Formulate and issue policies for the growth and development of the agricultural cooperative sector, which shall encompass adoption of innovative and ecological agricultural practices, access to resources and benefits, market opportunities, and capacity-building, among others; b. Formulate the Agricultural Cooperative Development and Food Security Master Plan, in coordination with the Bureau; c. Provide an integrated framework in order to optimize all government resources for the modernization and empowerment the Agriculture Cooperative sector; d. Issue guidelines, rules, and regulations for the development of the tangible assets, such as machinery, granaries, equipment, and lands, among others, of agricultural cooperatives; e. Issue guidelines, rules, and regulations, in coordination with the appropriate agencies, to ensure the rights and welfare of agricultural cooperatives and their members, especially women, youth, and family farmers, as well as their preferential treatment in government procurement as enshrined under the law; f. Formulate policies for the development of sustainable financial reform in the agricultural cooperative sector, including the strengthening of existing government financial entityies) that will specifically operate at the grassroots

level and cater to the sector using the latest banking and lending technology, in coordination with the relevant departments and agencies; and g. Advocate for policy reforms and programs that enhance social protection of the agricultural cooperatives and their members, including access to healthcare, insurance, and retirement benefits, among others.

Sec. 26. Secretariat, - The Bureau shall serve as the Secretariat to the Council.

Sec. 27. Per Diem. - The members of the Council shall each receive a per diem

pursuant to existing laws, for each meeting of the Council actually attended; Provided, That in the case of representatives from the private sector, the Council is authorized to provide funds to defray the cost of reasonable travel expenses, in addition to the 11 per diem, as may be necessary.

Sec. 28. Role of Local Government Units. - The Local Government Units are

enjoined to perform the following: a. Ensure the appointment of CDOs in compliance with Republic Act No. 11535; b. Create a Committee on Agricultural Cooperatives Development in the Local Government Legislatives Council, which shall focus on addressing legislative concerns of agricultural cooperatives; c. Disseminate information and promote agricultural cooperatives in their respective localities; d. Facilitate the establishment and develop the management and operations of agricultural cooperatives within their jurisdictions; e. Expedite the issuance of necessary permits for the implementation of projects and programs of the Department, the CDA, and other government agencies and instrumentalities for the benefit of agricultural cooperatives; f. Upon written request of the CDA, assist in the resolution of inter-cooperative disputes among agricultural cooperatives operating within their localities; g. Facilitate and conduct seminars, trainings, and conferences necessary for the organization, registration, management, and operations of agricultural cooperatives, in coordination with cooperative federations and unions; and h. Provide technical assistance and skills training for farmers, farm workers, and fisherfolk to engage in income-generating activities.

CHAPTER VI OTHER PROVISIONS

Sec. 29. Appropriation. - The amount necessary for the initial implementation

4 of this Act shall be taken from the current fiscal year's appropriation of the Department 5 and the CDA. Thereafter, the amount of One billion pesos (P1,000,000,000,000.00) to 6 carry out the provisions of this Act shall be appropriated in the General Appropriations 7 Act of the year following its enactment into law. The appropriations thereafter shall be increased, as determined by the Council.

Sec. 30. Implementing Rules and Regulations. - Within ninety (90) days

from the effectivity of this Act, the Department, in coordination with the departments 11 and agencies cited in this Act, and in consultation with agricultural cooperatives, shall issue the necessary rules and regulations to implement this Act.

Sec. 31. Joint Congressional Oversight Committee on Agricultural

Cooperatives. - There is hereby created a Joint Congressional Oversight Committee to oversee, monitor, and evaluate the implementation of this Act. • The Oversight Committee shall be jointly chaired by the Chairperson of the 17 Committee on Agriculture of both Houses, with four (4) additional members each from the Senate and House of Representatives. The membership in the Oversight Committee of each House shall have at least 20 one (1) member from the minority.

Sec. 32. Annual Reports. - The Council shall submit an annual report to the

22 Congress of the Philippines on the progress of its projects and plans and offer recommendations for possible legislation.

Sec. 33. Sunset Review. - Within five (5) years from the effectivity of this Act,

or as the need arises, the Joint Congressional Committee on Agricultural Cooperatives shall conduct a sunset review. For purposes of this Act, the term "sunset review" shall mean a systematic evaluation of the accomplishments and impact of this Act, as well as the performance and organizational structure of its implementing entities, for purposes of determining remedial legislation.

Sec. 34. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder hereof not otherwise affected shall remain in full force and effect.

Sec. 35. Repealing Clause. - All laws, presidential decrees, executive orders,

letters of instruction, proclamations, or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 36. Effectivity, - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,