MANILA, Philippines — The Senate on Monday unanimously approved on third and final reading a measure seeking to update the country’s cooperative law.
In a 19-0-0 vote, senators approved Senate Bill No. 1431, or the “Revised Cooperative Code of the Philippines,” during Monday’s session.
The measure seeks to amend the existing Cooperative Code of the Philippines, which was enacted in 2008, to make the regulatory framework more responsive to the evolving needs of cooperatives.
Senate Majority Leader Juan Miguel Zubiri, who previously sponsored the Cooperative Code enacted in 2008, said the measure provides needed updates to the law as the cooperative sector continues to evolve.
“Almost 20 years na rin po yung cooperative code,” Zubiri said, noting that over the years, cooperatives have developed new programs and advocacies that were not fully reflected in the original law.
(The cooperative code has been there for almost 20 years,)
Under the proposed law, the registration of cooperatives would be streamlined through reduced processing times and capital requirements, particularly for agricultural cooperatives.
The measure also seeks to broaden cooperatives’ capital base by allowing foreign investments, subject to rules on Filipino control and management.
Explanation of votes
Senators Mark Villar and Robin Padilla explained their affirmative votes, citing cooperatives’ role in promoting social justice and economic development.
Meanwhile, Sen. Risa Hontiveros also supported the measure but registered four reservations in her explanation of vote.
Hontiveros raised concerns over Section 44 on proportionate voting, noting that while the bill limits voting rights to no more than five votes for federations, it does not expressly provide the same limitation for secondary and tertiary cooperatives.
She also questioned the P50-million ceiling for the tax exemption under Section 69, saying this is lower than the P100-million tax exemption provided under the Senate-approved agricultural cooperatives bill.
Hontiveros further flagged Section 85, which allows foreign cooperative federations to own up to 40 percent in preferred shares, while Section 176 refers to total equity without distinguishing between preferred and common shares.
Her fourth reservation concerned Section 183, or the penal provisions, which seek to address organizations impersonating cooperatives.
Hontiveros said legitimate organizations, including cooperative chambers registered with the Securities and Exchange Commission, could be affected because they use the word “cooperative” in their names.
Other bills approved
The Senate on Monday also approved on third and final reading several measures granting or renewing congressional franchises to broadcasting companies.
These included House Bill Nos. 6904, 8461, 9000 and 9001, which seek to grant franchises to Exodus Broadcasting Company, Katigbak Enterprises (San Pablo City) Inc., Broadcasting Network Corporation and Cagayan de Oro Media Corporation, respectively.
The chamber also approved House Bill Nos. 6914 and 7646, renewing for another 25 years the franchises of Central Mindanao University and Benguet Broadcasting Corporation, currently known as Sphere Entertainment Inc.
Moreover, in a 17-1-0 vote, the House also approved House Bill No. 7647 on third and final reading.
This bill amends the franchise of More Electric and Power Corp. to establish, operate, and maintain a distribution system for conveying electric power to end-users in Iloilo City and Iloilo province.
In addition, the Senate likewise unanimously approved on third and final reading House Bill Nos. 7979 and 8471, which seek to establish general hospitals in Subic, Zambales and Ipil, Zamboanga Sibugay.
Meanwhile, also approved on third reading are House Bill Nos. 8472 and 8621, which seek to upgrade the Bukidnon Provincial Hospital in Maramag, Bukidnon, and Kalinga Provincial Hospital in Tabuk City to Level III general hospitals. /gsg