Philippine Cooperative Code of 2008

Article 109

A public service cooperative, within the meaning of this Code, is one organized to render public services as authorized under a franchise or certificate of public convenience and necessity duly issued by the appropriate government agency. Such services may include the following: (1) Power generation, transmission, and/or distribution; (2) Ice plants and cold storage services; (3) Communication services including telephone, telegraph, and communications: (4) Land and sea transportation cooperatives for passenger and/or cargo. Transport cooperatives organized under the provisions of Executive Order No. 898, Series of 1983, shall be governed by this Chapter. (5) Public markets, slaughterhouses and other similar services; and (6) Such other types of public services as may be engaged in by any cooperative. Such cooperative shall be primarily governed by this Chapter and the general provisions of this Code insofar as they may be applicable unless they are inconsistent herewith.

Article 110

Unless otherwise provided in this Code, no public service cooperative shall be registered unless it satisfies the following requirements. (1) Its articles of cooperation and bylaws provide for the membership of the users and/or producers of the service of such cooperatives; and (2) Such other requirements as may be imposed by the other pertinent government agencies concerned. In case there are two (2) or more applicants for the same public service franchise or certificate of public convenience and necessity, all things being equal, preference shall be given to a public service cooperative.

Article 111

(1) The internal affairs of public service cooperatives such as the rights and privileges of members, the rules and procedures for meetings of the general assembly, board of directors and committees; for the election and qualifications of officers, directors, and committee members; allocation and distribution of surpluses; and all other matters relating to their internal affairs shall be governed by this Code. (2) All matters relating to the franchise or certificate of public convenience and necessity of public service cooperatives such as capitalization and investment requirements, equipment and facilities, frequencies, rate-fixing and such other matters affecting their public service operations shall be governed by the proper government agency concerned. (3) The Authority and the proper government agency concerned shall jointly issue the necessary rules and regulations to implement this Chapter. (4) The Authority shall establish a committee for the monitoring of transportation service cooperatives composed of representatives from the Authority, the Land Transportation Franchising and Regulatory Board (LTFRB), the Land Transportation Office (LTO), Office of Transport Cooperatives (OTC), other concerned government agencies, as may be necessary, and the National Federation of Transportation Cooperatives. A local monitoring committee shall likewise be established at the extension offices of the Authority to facilitate the monitoring of transportation cooperatives.

Article 112

Subject to pertinent national laws and local ordinances, primary transportation service cooperatives including secondary and tertiary federation of cooperatives may engage in a business related to transportation service, including but not limited to: (1) Importation, distribution and, marketing of petroleum products in accordance with existing laws; (2) Operation of gasoline stations and transportation service centers; (3) Importation, distribution and marketing of spare parts and supplies; and (4) Marketing of vehicle/drivers insurance policies.

Article 113

Renewals of franchise and vehicle registration shall be granted to transportation service cooperatives: Provided, That such cooperative presents a certificate of good standing issued by the Authority, OTC, and the local government unit concerned as proof that it has continuously provided the required public transportation services. The Authority, in consultation with the concerned government agencies and cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.