HOUSE OF REPRESENTATIVES
RECEIVED
DATE: _()4 Jil 2018
Tim: _ 3214p,
BY:

—_—

Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session
REGISTRATION UNIT

HOUSE BILLA». 902 | BILLS AND INDEX SERVICE

Introduced by: REPRESENTATIVE SALVIO B. FORTUNO

EXPLANATORY NOTE,

The controversy generated then by the disqualification of former Governor J.R
Ejercito of the Province of Laguna, who was ousted by the Commission on Elections
(COMELEC) for election overspending has brought to the fore the issue, Is the
authorized campaign expenditures for candidates and political parties still realistic in the
light of economic developments that had eroded the purchasing power of the Philippine
Peso?

There have been loud clamour not only from politicians but even from the
Commission on Elections (COMELEC) to update this antiquated provision of the law but
until it is amended it remains valid and effective

No matter what the reason is, or whatever the circumstances are, a law is a law
As the legal maxim states, DURA LEX SED LEX. Hard is the law but it is a law

The Supreme Court upheld the decision of the Comelec in disqualifying former
Governor Ejercito on the basis of the existing applicable law, Republic Act No. 7166,
that a candidate is authorized to spend only Three pesos (P3.00) for every voter currently
registered in the constituency where he filed his certificate of candidacy. There were
thousands of candidates in the 2010 and 2013 elections, who received notice to explain
overspending from the COMELEC and still awaiting its ruling

Republic Act No. 7166 explicitly amended Sections 100 and 101 of Batas
Pambansa Bla 881 otherwise known as the Omnibus Election Code of the Philippines on
the limitations upon the expenses of candidates and of political parties respectively
effectively increasing the authorized campaign expenditure of candidates for every voter
from P1.50 to P3.00 and of political parties for every voter from P1.50 to P5.00

It is worthy to emphasize that the purchasing power of the Philippine peso has
continuously diminished from the time Republic Act No. 7166 took effect in 1991 up to
the present time due to numerous economic factors

Dr. Romulo Emmanuel M. Miral, Jr. Acting Director General of the
Congressional Policy and Budget Research Department of the House of Representatives
revealed in an interview that the value of one (1) Philippine peso in 1991 was equivalent
to P3.41 in 2013 or our one (1) Philippine peso in 2013 was equivalent to PO.29 in 1991
based on Consumer Price Index.


On the basis of the foregoing computation, the authorized campaign expenditure
for candidates for the position of President and Vice-President should be from P10.00 to
34.10, for other candidates from P3.00 to P10.23 and for political parties from PS.00 to
P17.05, Considering the time and economic factors, there is a need to increase this actual
computation to meet the demands of the time when this proposed legislative measure is
enacted into law. Therefore the adjustment should be as follows: For the position of
President and Vice-President from P10.00 to P40.00, for other candidates from P3.00 to
P15.00 and for political parties from P5.00 to P20.00

The paramount objective of this measure is to make the authorized campaign
expenditures for all the candidates and political parties more realistic so that no candidate
would ever be penalized on the basis of an antiquated law.

The foregoing reasons warrant the immediate approval of this bill

), Levee “
SALVI9 B. FORTUNO

Répresentative
Fifth Digtrict, Camarines Sur



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SEVENTEENTH CONGRI
First Regular Session

iz
HOUSE BILL'No,_ 902

Introduced by: REPR! ‘ATIVE SALVIO B. FORTUNO.

AN ACT
INCREASING THE AUTHORIZED EXPENSES OF CANDIDATES AND POLITICAL,
PARTIES, AMENDING FOR THE PURPOSE SECTION 13 OF REPUBLIC ACT NO.
7166, ENTITLED, “AN ACT PROVIDING FOR SYCHRONIZED NATIONAL AND
LOCAL ELECTIONS AND FOR ELECTORAL REFORMS, AUTHORIZING
APPROPRIATIONS THEREFOR, AND FOR OTHER PURPOSES”

Be it enacted hy the Senate and the House of Representatives
of the Philippines in Congress assembled:

SECTION 1, Section 13 of Republic Act No. 7166 is hereby amended to read as follows:
“See. 13. Authorized Expenses of Candidates and Political Parties. ~

The aggregate amount that a candidate or registered political party may spend for
election campaign shall be as follows

For candidates. ~ [Ten] FORTY pesos |(P10.00)| (P40.00) for President
and Vice-President: and for other candidates, [Three] FIFTEEN pesos [(P3.00)]
(P15.00) for every voter currently registered in the constituency where he filed
his candidacy: Provided, That a candidate without any political party and without
support from any political party may be allowed to spend [Five] TWENTY
pesos |(P5.00)] (P20,00) for every such voter; and

For political parties. ~ [Five] TWENTY pesos [(P5.00)] (P20.00) for
every voter currently registered in the constituency or constituencies where it has
official candidates,

Any provision of law to the contrary notwithstanding any contribution in
cash or in kind to any candidate or political party or coalition of parties for
campaign purposes, duly reported to the Commission shall not be subject to the
payment of any gift tax.

SEC. 2. The Commission on Elections (COMELEC) shall issue the necessary rules and
regulations to implement this Act

SEC. 3. Alll laws, presidential decrees, executive orders, rules and regulations found
inconsistent with this Act are hereby amended, repealed or modified accordingly

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation

Approved,