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(NAR) VOL. 10 NO. 2 / APRIL - JUNE 1999

[ CDA, March 10, 1999 ]

CDA-OTC JOINT IMPLEMENTING GUIDELINES ON THE ORGANIZATION AND REGISTRATION OF PUBLIC TRANSPORTATION COOPERATIVES



WHEREAS, it is a declared policy of the state to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people towards the attainment of economic development and social justice;

WHEREAS, in pursuance to the policy, Article 2, par. 2 of Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines, mandates that the government and all its branches, subdivisions, instrumentalities, and agencies shall ensure the provision of technical guidance, financial assistance and other services to enable cooperatives to develop into viable and responsive economic enterprise;

WHEREAS, public service cooperatives, including transportation cooperatives, are required under Art. 97 of R.A. 6938 to secure favorable endorsement from proper government agencies authorized to issue franchises or certificates of public convenience and necessity prior to their registration with the Cooperative Development Authority (CDA);

WHEREAS, the Office of Transportation Cooperatives, a government agency under the Department of Transportation and Communications, was created to implement a Transport Cooperative Program, and therefore a concerned government agency;

WHEREAS, Art. 98 of the same law authorizes the joint issuance by the concerned government agencies of the necessary rules, regulations and guidelines to implement the provisions on public service cooperatives;

NOW, THEREFORE, the Cooperative Development Authority (CDA) and the Office of Transportation Cooperatives (OTC) do hereby promulgate these Implementing Guidelines on the Organization and Registration of Public Transportation Cooperatives:

SECTION 1. Definition of Terms. — Public Transportation Cooperative shall refer to one organized and registered with the Cooperative Development Authority (CDA) to render public service as authorized under a franchise or certificate of public convenience and necessity duly issued by concerned government agencies such as the Land Transportation Franchising and Regulatory Board (LTFRB) for land transportation, Maritime Industry Authority (MARINA) for water transportation, Civil Aeronautics Board (CAB) for air transportation, and Local Government Units (LGUs) for tricycle transportation, composed of persons including operators, drivers, conductors/conductress, pilots, investors, allied workers, users or commuters who have agreed to pool their skill, savings and other resources including vehicles, aircrafts or watercrafts to operate a business enterprise that will provide the members and the public the necessary facilities and services for the economic and efficient carriage of passengers and goods.

Promotion — refers to the activities related to the dissemination of information on the Transport Cooperative Program.

Development — is the assistance by the government agencies to deserving transportation cooperatives to ensure their economic stability.

Regulation — is the authority of the CDA to regulate over all transportation cooperatives.

SECTION 2. Organization. — shall mean the grouping of at least fifteen (15) persons for the purpose of engaging in transportation services provided that they comply with the initial paid-up capital requirement as follows:
a. Jeepney/Taxi/Shuttle
-
P30,000.00
b. Mini-Bus/Bus
-
P50,000.00
c. Aircraft
-
P200,000.00
It shall be the responsibility of the OTC to assist in the organization of transport cooperatives.

SECTION 3. Registration. — shall mean the formal acquisition of juridical personality by the cooperative concerned through the issuance of a Certificate of Registration by and under the official seal of the CDA.

SECTION 4. Accreditation. — shall refer to the approval by the OTC Board of the application for accreditation sought by transport cooperatives already registered with the CDA prior to the promulgation of these Joint Implementing Guidelines. Accreditation by OTC shall entitle the transport cooperatives to all the assistance, rights and privileges extended by the OTC to all transport cooperatives falling under its jurisdiction.

SECTION 5. Supervision. — shall mean the authority of the Office of Transportation Cooperatives to oversee and evaluate the operation and economic activities of transportation cooperatives in coordination and in consultation with the CDA.

SECTION 6. Cancellation. — is the revocation of the certificate of registration of the cooperative after due notice and hearing by the CDA. The OTC may be consulted in the process.

SECTION 7. Filing. — Application for Accreditation of a transportation cooperative shall be filed with the OTC. While application for registration shall be filed with the CDA.

SECTION 8. Cooperative Education and Transport Operation Seminar. — The CDA and the OTC shall coordinatively support the newly registered cooperative by extending seminars for the purpose of continuing cooperative education in order to enhance the knowledge and capability of the officers as well as the members of the cooperative. The CDA and the OTC shall form trainer's team which shall formulate educational programs to be used in the training seminar.

SECTION 9. Monitoring and Coordinating Committee. — the monitoring and coordinating committee is hereby created to be composed of two (2) representatives from CDA, two (2) from OTC and one (1) from the federation (KKPPI).

The committee shall perform the following functions:
  1. To oversee the implementation of these joint guidelines;

  2. To recommend changes from time to time if need arises;

  3. To assist the cooperative in settling inter and intra cooperative disputes through mediation and conciliation;

  4. To submit quarterly accomplishment report including recommendation/resolution to be adopted in the settlement of the aforesaid disputes to the CDA Board of Administrators through the Executive Director and to the OTC Board of Directors through its Executive Director.
SECTION 10. Transitory Provisions. — all transportation cooperatives which had been duly registered with the Cooperative Development Authority prior to the issuance of these guidelines shall apply for accreditation with the OTC to enable them to be eligible for the technical assistance extended by OTC and to qualify as beneficiaries under the financial and developmental projects and programs organized and administered by the OTC.

Failure by the Transportation Cooperative to apply for accreditation with the OTC within sixty (60) days after due notice shall mean deprivation of any assistance from OTC.

SECTION 11. Repeal Provisions. — All rules, regulations, implementing guidelines or parts thereof inconsistent with any provision of these guidelines shall be deemed modified or repealed accordingly.

SECTION 12. Effectivity. — These implementing guidelines shall take effect fifteen (15) days from its filing with U.P. Law Center pursuant to Presidential Memorandum Circular No. 11 dated October 1992.

Adopted: 10 March 1999

(SGD.) JOSE C. MEDINA, JR.
Chairman
Cooperative Development Authority


(SGD.) JAIME S. DOMDOM, DBA
Chairman
Office of Transportation Cooperatives
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