THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'04 
,JUL -7 PI :I 7 
S E N A T E  
5. No. 
1. 
introduced by Senator Francis N. Pangilinan 
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EXPLANATORY NOTE 
.- . 
- -  
The strength of the political party system in the Philippines has long 
been the subject of concern in both the academic field and in the political 
arena. 
There i s  a public perception that Philippine politics is based on 
personalities rather than ideology. This perception is reinforced by the shifting 
political allegiance and affiliation of turncoats, whether in national and local 
politics. 
The political parties in the Philippines appear to be visible only during 
elections. 
The positions of some of these parties on various issues do not 
appear to be clear cut and defined. There is little difference in the ideolcgy of 
a number of the political parties established in the country. Hence, it i s  not 
surprising that a member of one political party suddenly shifts to another 
political party at any time of the year. 
Party loyalty is not as strong as it should be. The politician or candidate 
for public office bases his or her choice of party-affiliation not on party 
ideology but on other factors such as availabi(ity of funds and the party's 
political networking. Of these factors, availability of funds for the party's day 
to day operations and for i t s  campaign election requirements appear to be the 
primordial consideration for choosing party affiliation. 
During elections, contributions from various sources are used by political 
parties to field and finance the election of candidates to public offices. More 
often than not, officials who are elected and financed through funds from 
private sources owe a great degree of loyalty to these private sources. This 
sense of loyalty is a potential source of malfeasance and misfeasance in office 
by the official concerned since public interest i s  subordinated to those of their 
donors'/contributors'. 
'This bill aims to minimize the possible influence exerted by private 
contributors upon elected officials (particularly, the President and the Vice 
President) whose campaign they have helped finance. This bill also aims to 
address the problem of political parties in the funding of candidates to the 
Offices of the President and Vice President, respectively. Under this measure, 
the political parties are entitled to reimbursement and payments from a public 
I 
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fund to be designated as the “Presidential Campaign Fund”. Thus, the evil of 
private funding can be eradicated. 
Moreover, this bill aims to establish the political party as a stronger 
electoral and lobbying force. The lack of funds has traditionally undermined 
the strength of the political party. 
Through subsidizing the political party 
which seeks to field candidates to the Offices of the President and Vice 
President, the political party gains strength as a continuing body. Any political 
party will be able to field candidates who, although qualified and highly 
competent, are unable to finance the high costs of the election campaign. 
In view of the foregoing, approval of this bill i s  earnestly requested. 
2 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
'04 JUL -7 
P 1 :1 7 
c 
First Regular Session 
) 
S E N A T E  
~~~~~~V~~ BY'--..--# 
';LII 
S. No. 
Introduced by Senator Francis N. Pangilinan 
AN ACT PROVIDING FOR THE ESTABLISHMENT OF A PRESIDENTIAL CAMPAIGN 
FUND FOR PAYMENT OF THE APPROPRIATE AND ALLOWED EXPENDITURES OF 
POLITICAL PARTIES AND POLITICAL COMMllTEES IN PRESIDENTIAL AND VICE 
PRESIDENTIAL ELECTIONS AND ESTABLISHING PENALTIES FOR VIOLATIONS 
THEREFOR 
Be it enacted by the Senate and the House of Representatives of the 
Republic of the Philippines in Congress assembled: 
Section 1. 
Short title 
This chapter may be cited as the "Presidential Election Campaign Fund 
Act". 
Section 2 .  Definitions 
For purposes of this chapter - 
(1) 
The term "authorized committee" means, with respect to the 
candidates of a political party for President and Vice President of the 
Republic of the Philippines, any political committee which i s  authorized 
in writing by such candidates to incur expenses to further the election of 
$ch candidates. Such authorization shall be addressed to the chairman 
of such political committee, and a copy of such authorization shall be 
filed by such candidates with the Commission. Any withdrawal of any 
authorization shall also be in writing and shall be addressed and filed in 
the same manner as the authorization. 
(2) 
election, an individual who - 
The term "candidate" means with respect to any presidential 
(A) 
has been nominated for election to the office of President 
of the Republic of the Philippines or the office of Vice 
President of the Republic of the Philippines by a major 
party, or 
has qualified to have his name on the election ballot (or to 
have the names of electors pledged to him on the election 
ballot) as the candidate of a political party for election to 
either such office. 
(B) 
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For purposes of paragraphs (6) and (7) of this section and purposes 
of section 4(a)(2), the term "candidate" means, with respect to any 
preceding presidential election, an individual who received popular 
votes for the office of President in such election. The term "candidate" 
shall not include any individual who has ceased actively to seek election 
to the office of President of the Republic of the Philippines or to the 
office of Vice President of the Republic of the Philippines. 
(-3) 
TheT5t-m "Commission" means the Commission on Elections. 
(4) 
The term "eligible candidates" means the candidates of a political 
party for President and Vice President of the Republic of the Philippines 
who have met all applicable conditions for eligibility to receive 
payments under this kaw as set forth in section 3. 
(5) 
established by section 6(a). 
(6) 
The term "major party" means, with respect to any presidential 
election, a political party whose candidate for the office of President in 
the preceding presidential election received, as the candidate of such 
party, 25 percent or more of the total number of popular votes received 
by all candidates for such office. 
(7) 
The term "minor party" means, with respect to any presidential 
election, a political party whose candidate for the office of President in 
the precedinz presidential election received, as the candidate of such 
party, 5 percent or more but less than 25 percent of the total number of 
popular votes received by all candidates for such office. 
(8) 
The term "new party" means with respect to any presidential 
election, a political party which is neither a major party nor a minor 
party. 
(9) The 
term 
"political committee" 
means 
any 
committee, 
association, or organization (whether or not incorporated) which accepts 
contributions or makes expenditures for the purpose of influencing, or 
attempting to influence, the nomination or election of one or more 
individuals to national or local elective public office. 
(IO) 
The term "presidential 
election" means the election of 
presidential and vice-presidential electors. 
(11) 
The term "fund" means the Presidential Election Campaign Fund 
I 
The term "qualified campaign expense" means an expense - 
(A) 
incurred (i) by the candidate of a political party for the 
-office of President to further his election to such office or 
to further the election of the candidate of such political 
party for the office of Vice President, or both (ii) by the 
candidate of a potitical party for the office of Vice 
President to further his election to such office or to further 
the election of the candidate of such political party for the 
office of President, or both, or (iii) by an authorized 
committee of the candidates of a political party for the 
offices of President and Vice President to further the 
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4 


election of either or both of such candidates to such 
offices, 
incurred within the expenditure report period (as defined 
in paragraph (12)), or incurred before the beginning of such 
period to the extent such expense i s  for property, services, 
or facilities used during such period, and 
neither the incurring nor payment of which constitutes a 
violation of any law of the Republic of the Philippines. 
An expense shall be considered as incurred by a candidate or an 
authorized committee if it is incurred by a person authorized by such 
candidate or such committee, as the case may be, to incur such expense 
on behalf of such candidate or such committee. 
If an authorized 
committee of the candidates of a political party for President and Vice 
President of the Republic of the Philippines also incurs expenses to 
further the-election of one or more other individuals to national or local 
Orective pu6lic office, expenses incurred by such committee which are 
not specifically to further the election of such other individual or 
individuals shall be considered as incurred to further the election of such 
candidates for President and Vice President in such proportion as the 
Commission prescribes by rules or regulations. 
(12) 
The term "expenditure report period" with respect to any 
presidential election means - 
(B) 
(C) 
(A) 
in the case of a major party, the period beginning wiih the 
first day of September before the election, or, if, earlier, 
with the date on which such major party at i t s  national 
convention nominated i t s  candidate for election to the 
office of President of the Republic of the Philippines, and 
ending 30 days after the date of the presidential election; 
and 
(B) 
in the case of a party which is not a major party, the same 
period as the expenditure report period of the major party 
which has the shortest expenditure report period for such 
presidential election under subparagraph (A). 
1 
Section 3. 
(a) 
In general 
candidates of a political party in a presidential election shall, in writing - 
Condition for eligibility for payments 
In order to be eligible to receive any payments under section 6, the 
(1) 
agree to obtain and furnish to the Commission such evidence as it 
may request of the qualified campaign expenses of such candidates, 
(2) 
and other information as it may request, and 
agree to keep and furnish to the Commission such records, books, 
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I
 
(3) 
agree to an audit and examination by the Commission under 
section 7 and to pay any amounts required to be paid under such 
section. 
(b) 
Major parties 
In order to be eligible to receive any payments under section 6, the 
candidates of a major party in a presidential election shall certify to the 
Commission, under penalty of perjury, that - 
(1) 
such candidates and their authorized committees will not incur 
qualified campaign expenses in excess of the aggregate payments to 
which they will be entitled under section 4, and 
(2) 
no contributions to defray qualified campaign expenses have been 
or will be accepted by such candidates or any of their aubhorized 
committees except to the extent necessary to make up any deficiency in 
payments received out of the fund on account of the application of 
section 6(d), and no contributions to defray expenses which would be 
qualified campaign expenses but for subparagraph (C) of section 2(11) 
have been or will be accepted by such candidates or any of their 
authorized committees. 
(c) 
Minor and new parties 
In order to be eligible to receive any payments under section 6, the 
candidates of a minor or new party in a presidential election shall certify to the 
Commision undeFqenalty of perjury, that - 
(1) 
such candidates and their authorized committees will not incur 
qualified campaign expenses in excess of the aggregate payments to 
which the eligible candidates of a major party are entitled under section 
4, and 
(2) 
such candidates and their authorized committees will accept and 
expend or retain contributions to defray qualified campaign expenses 
only to the extent that the qualified campaign expenses incurred by 
such candidates and their authorized committees certified to under 
paragraph (1) exceed the aggregate payments received by such 
candidates out of the fund pursuant to section 6. 
Such certification shall be made within such time prior to the day 
of the presidential election as the Commission shall prescribe by rules or 
regulations. 
(d) 
Withdrawal by candidate 
In any case in which an individual ceases to be a candidate as a result of 
the operation of the last sentence of section 2(2), such individual - 
(1) 
shall no longer be eligible to receive any payments under section 
6, except that such individual shall be eligible to receive payments 
under such section to defray qualified campaign expenses incurred while 
actively seeking election to the office of President of the Repubiic of the 
Philippines or to the office of Vice President of the Republic of the 
Philippines; and 
6 


(2) 
shall pay to the Secretary, as soon as practicable after the date 
upon which such individual ceases to be a candidate, an amount equal to 
the amount of payments received by such individual under section 6 
which are not used to defray qualified campaign expenses. 
Section 4. 
Entitlement of eligible candidates to payments 
(a) 
In general 
Subject to the provisions of this chapter - 
(1) 
The eligible candidates of each major party in a presidential 
election shall be entitled to equal payments under section 6 in an 
amount which, in the aggregate, shall not exceed the expenditure 
Limitations applicable to such candidates under existing laws, rules and 
regulations. 
(2)(A) The eligible candidates of a minor party in a presidential election 
shall be entitled to payments under section 6 equal in the aggregate to 
an amount which bears the same ratio to the amount allowed under 
paragraph (1) for a major party as the number of popular votes received 
by the candidate for President of the minor party, as such candidate, in 
the preceding presidential election bears to the average number of 
popular votes received by the candidates for President of the major 
parties in the preceding presidential election. 
(6) If the candidate of one or more political parties (not including 
a major party) for the office of President was a candidate for such office 
in the preceding presidential election and received 5 percent or more 
but less than 25 percent of the total number of popular votes received 
by all candidates for such office, such candidate and his running mate 
for the office of Vice President, upon compliance with the provisions of 
section 3(a) and (c), shall be treated as eligible candidates entitled to 
payments under section 6 in an amount computed as provided in 
subparagraph (A) by taking into account all the popular votes received 
b k  such candidate for the office of President in the preceding 
presidential election. If eligible candidates of a minor party are entitled 
to payments under this subparagraph, such entitlement shall be reduced 
by the amount of the entitlement allowed under subparagraph (A). 
(3) 
The eligible candidates of a minor party or a new party in a 
presidential election whose candidate for President in such election 
receives, as such candidate, 5 percent or more of the total number of 
popular votes cast for the office of President in such election shall be 
entitled to payments under section 6 equal in the aggregate to an 
amount which bears the same ratio to the amount allowed under 
paragraph (1) for a major party as the number of popular votes received 
by such candidate in such election bears to the average number of 
popular votes received in such election by the candidates for President 
of the major parties. 
In the case of eligible candidates entitled to 
payments under paragraph (2), the amount allowable under this 
paragraph shall be limited to the amount, if any, by which the 
entitlement under the preceding sentence exceeds the amount of the 
entitlement under paragraph (2). 
7 


(b) 
Limitations 
The aggregate payments to which the eligible candidates of a political 
party shall be entitled under subsections (a)(2) and (3) with respect to a 
presidential election shall not exceed an amount equal to the lower of - 
(1) 
the amount of qualified campaign expenses incurred by such 
eligible candidates and their authorized committees, reduced by the 
axount of allowable contributions to defray qualified campaign 
expenses received and expended or retained by such eligible candidates 
and such committees, or 
(2) 
the aggregate payments to which the eligible candidates of a 
major party are entitled under subsection (a)(t), reduced by the amount 
of contributions described in paragraph (1) of this subsection. 
(c) 
Restrictions 
The eligible candidates of a political party shall be entitled to payments 
under subsection (a) only - 
(1) 
candidates or their authorized committees, or 
(2) 
to repay loans the proceeds of which were used to defray such 
qualified campaign expenses, or otherwise to restore funds (other than 
allowable contributions to defray qualified campaign expenses received 
and expended by such candidates or such committees) used to defray 
such qualified campaign expenses. 
to defray qualified campaign expenses incurred by such eligible 
1 
(d) 
Expenditures from personal funds 
In order to be eligible to receive any payment under section 6, the 
candidate of a major, minor, or new party in an election for the office of 
President shall certify to the Commission, under penalty of perjury, that such 
candidate will not knowingly make expenditures from his personal funds, or the 
personal funds of his immediate family, in connection with his campaign for 
election to the office of President in excess of, in the aggregate, Php250,OOO. 
For purposes of this subsection, expenditures from personal funds made 
by a candidate of a major, minor, or new party for the office of Vice President 
shall be considered to be expenditures by the candidate of such party for the 
office of President. 
(e) 
Definition of immediate family 
- 
.- 
- -  
For purposes of subsection (d), the term "immediate family" means a 
candidate's spouse, and any child, parent, grandparent, brother, half-brother, 
sister, or half-sister of the candidate, and the spouses of such persons. 
(f) 
Amount of Allowable Contributions 
8 


Within sixty (60) days from the effectivity of this Act, the Commission 
shall promulgate rules and regulations prescribing the limit of allowable 
contributions to candidates for presidential and vice-presidential office. 
Section 5. 
Certification by Commission 
(a) 
Initial certifications 
Not later than 10 days after the candidates of a political party for 
President and Vice President of the Republic of the Philippines have met all 
applicable conditions for eligibility to receive payments under this law as set 
forth in section 3, the Commission shall certify to the Secretary of the 
Department of Finance for payment to such eligible candidates under section 6 
payment in full of amounts to which such candidates are entitled under section 
4. 
(b) 
Finality of certifications and determinations 
Istial certifications b y  the Commission under subsection (a), and all 
determinations made by it under this chapter, shall be final and conclusive, 
except to the extent that they are subject to examination and audit by the 
Commission under section 7 and judicial review under section 11. 
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Section 6. 
(a) 
Establishment of campaign fund 
There is hereby established on the books of the Department of Finance 
of the Republic of the Philippines a special fund to be known as the 
"Presidential Election Campaign Fund". There is appropriated to the fund for 
each fiscal year, out of amounts in the general fund of the Department of 
Finance not otherwise appropriated, an amount equal to the amounts so 
designated during each fiscal year, which shall remain available to the fund 
without fiscal year Limitation. 
(b) 
Payments from the fund 
Payments to eligible candidates 
Upon receipt of a certification from the Commission under section (5 for 
payment to the eligible candidates of a political party, the Secretary of the 
Department of Finance shall pay to such candidates out of the fund the amount 
certified by the Commission. Amounts paid to any such candidates shall be 
under the control of such candidates. 
(c) 
Insufficient amounts in fund 
If at the time of a certification by the Commission under section 5 for 
payment to the eligible candidates of a political party, the Secretary 
determines that the moneys in the fund are not, or may not be, sufficient to 
satisfy the full entitlements of the eligible candidates of all political parties, 
he shall withhold from such payment such amount as he determines to be 
necessary to assure that the eligible candidates of each political party will 
receive their pro rata share of their full entitlement. Amounts withheld by 
reason of the preceding sentence shall be paid when the Secretary determines 
that there are sufficient moneys in the fund to pay such amounts, or portions 
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thereof, to all eligible candidates from whom amounts have been withheld, 
but, if there are not sufficient moneys in the fund to satisfy the full 
entitlement of the eligible candidates of all political parties, the amounts so 
withheld shall be paid in such manner that the eligible candidates of each 
political party receive their pro rata share of their full entitlement. 
In any 
case in which the Secretary determines that there are insufficient moneys in 
the fund to make payments under subsection (b), section 8(b)(3), moneys shall 
not be made available from any other source for the purpose of making such 
payments. 
Section 7. 
(a) 
Examinations and audits 
After each presidential election, the Commission shall conduct a 
thorough examination and audit of the qualified campaign expenses of the 
candidates of each political party for President and Vice President. 
(b) 
Repayments 
Examinations and audits; repayments 
(I) If the Commission determines that any portion of the payments 
made to the eligible candidates of a political party under section 6 was 
in excess of the aggregate payments to which candidates were entitled 
under section 4, it shall so notify such candidates, and such candidates 
shall pay to the Secretary of the Department of Finance an amount equal 
to such portion. 
(2). If the-Commission determines that the eligible candidates' of a 
political party and their authorized committees incurred qualified 
campaign expenses in excess of the aggregate payments to which the 
eligible candidates of a major party were entitled under section 4, it 
shall notify such candidates of the amount of such excess and such 
candidates shall pay to the Secretary of the Department of Finance an 
amount equal to such amount. 
(3) 
If the Commission determines that the eligible candidates of a 
major party or any authorized committee of such candidates accepted 
contributions (other than contributions to make up deficiencies in 
payments out of the fund on account of the application of section 6(c)) 
to defray qualified campaign expenses (other than qualified campaign 
expenses with respect to which payment i s  required under paragraph 
(2)), it shall notify such candidates of the amount of the contributions so 
accepted, and such candidates shall pay to the Secretary of the 
Department of Finance an amount equal to such amount. 
(4) 
If the Commission determines that any amount of any payment 
made to the eligible candidates of a political party under section 6 was 
used for any purpose other than - 
(A) 
to defray the qualified campaign expenses with respect to 
which such payment was made, or 
(6) to repay loans the proceeds of which were used, or 
otherwise to restore funds (other than contributions to 
defray qualified campaign expenses which were received 
10 


I. and expended) which were used to defray such qualified 
campaign expenses, it shall notify such candidates of the 
amount so used, and such candidates shall pay to the 
Secretary of the Department of Finance an amount equal to 
such amount. 
(5) 
No payment shall be required from the eligible candidates of a 
political party under this subsection to the extent that such payment, 
when added to other payments required from such candidates under this 
subsection, exceeds the amount of payments received by such 
candidates under section 6. 
(c) 
Notification 
No notification shall be made by the Commission under subsection (b) 
with respect to a presidential election more than 3 years after the day of such 
election. 
(d) 
Deposit of repayments 
All payments received by the Secretary of the Department of Finance 
under subsection (b) shall be deposited by him in the general fund of the 
Department of Finance. 
Section 8. 
(a) 
Establishment of accounts 
Payments for presidential nominating conventions 
The Secretary shall maintain in the fund, in addition to any account 
which he maintains under section 6(a), a separate account for the national 
committee of each major party and minor party. The Secretary shall deposit in 
each such account an amount equal to the amount, which each such committee 
may receive under subsection (b). Such deposits shall be made before any 
transfer is made to any account for any eligible candidate under section 6(a). 
(b) 
Entitlement to payments from the fund 
(+) - 
Majorparties 
I 
Subject to the provisions of this section, the national Committee 
of a major party shall be entitled to payments under paragraph (3), with 
respect to any presidential nominating convention, in amounts which, in 
the aggregate, shall not exceed Php4,000,000. 
(2) 
Minor parties 
Subject to the provisions of this section, the national committee 
of a minor party shall be entitled to payments under paragraph (3), with 
respect to any presidential nominating convention, in amounts which, in 
the aggregate, shall not exceed an amount which bears the same ratio to 
the amount the national committee of a major party i s  entitled to 
receive under paragraph (1) as the number of popular votes received by 
the candidate for President of the minor party, as such candidate, in the 
preceding presidential election bears to the average number of popular 
I1 


votes received by the candidates for President of the Republic of the 
Philippines of the major parties in the preceding presidential election. 
(3) 
Payments 
Upon receipt of certification from the Commission under 
subsection (g), the Secretary shall make payments from the appropriate 
account maintained under subsection (a) to the National committee of a 
major party or minor party, which elects to receive i t s  entitlement 
under this subsection. Such payments shall be available for use by such 
committee in accordance with the provisions of subsection (c). 
(4) 
Limitation 
Payments to the national committee of a major party or minor 
party under this subsection, from the account designated for such 
committee shall be limited to the amounts in such account at the time 
of payment. 
(5) 
Adjustment of entitlements 
The entitlements established by this subsection shall be adjusted 
in accordance with increases in price index as follows: 
1 
(A) 
A t  the beginning of each calendar year, as there become 
available necessary data from the Department of Labor, 
the Secretary of Labor shall certify to the Commission the 
percent difference between the price index for the 12 
months preceding the beginning of such calendar year and 
the price index for the base period. 
The limitations 
established herein shall be increased by such percent 
difference. Each amount so increased shall be the amount 
in effect for such calendar year. 
For purposes of paragraph (1) - (i) the term “price index” 
means the average over a caiendar year of the Consumer 
Price Index; (ii) the term “base period” means the calendar 
year 2001. 
(6) 
(c) 
Use of funds 
No part of any payment made under subsection (b) shall be used to 
defray the expenses of any candidate or delegate who is participating in any 
presidential nominating convention. Such payments shall be used only - 
(1) 
to defray expenses incurred with respect to a presidential 
nominating convention (including the payment of deposits) by iron 
behalf of th_e 
.- national committee receiving such payments; or 
(2) 
to repay loans the proceeds of which were used to defray such 
expenses, or otherwise to restore funds (other than contributions to 
defray such expenses received by such committee) used to defray such 
expenses. 
, 
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(d) 
Limitation of expenditures 
12 


(1) 
Major parties 
Except as provided by paragraph (3), the national committee of a 
major party may not make expenditures with respect to a presidential 
nominating convention which, in the aggregate, exceed the amount of 
payments to which such committee is entitled under subsection (b)(l). 
(2) 
Minor parties 
Except as provided by paragraph (3), the national committee of a 
minor party may not make expenditures with respect to a presidential 
nominating convention which, in the aggregate, exceed the amount of 
the entitlement of the national committee of a major party under 
subsection (b)( 1 ) . 
(3) 
Exception 
The Commission may authorize the national committee of a major 
party or minor party to make expenditures, which, in the aggregate, 
exceed thelimitation established by paragraph (1) or paragraph (2) of 
c i s  subsection. Such authorization shall be based upon a determination 
by the Commission that, 
due to extraordinary and unforeseen 
circumstances, such expenditures are necessary to assure the effective 
operation of the presidential nominating convention by such committee. 
(4) Provision of legal or accounting services 
For purposes of this section, the payment, by any person other 
than the national committee of a political party (unless the person 
paying for such services is a person other than the regular employer of 
the individual rendering such services) of compensation to any individual 
for legal or accounting services rendered to or on behalf of the national 
committee of a political party shall not be treated as an expenditure 
made by or on behalf of such committee with respect to i t s  limitations 
on presidential nominating convention expenses. 
(e) 
Availability of payments 
The national committee of a major party or minor party may receive 
payments under subsection (b)(3) beginning on July 1 of the calendar iyear 
immediately preceding the calendar year in which a presidential nominating 
convention of the political party invoived is held. 
(f) 
Transfer to the fund 
If, after the close of a presidential nominating convention and after the 
national committee of the political party involved has been paid the amount 
which it i s  entitled to receive under this section, there are moneys remaining 
in the account of such national committee, the Secretary shall transfer the 
moneys so remaining to the fund. 
(g) 
Certification by Commission 


. , ' :  
Any major party or minor party may file a statement with the 
Commission in such form and manner and at such times as it may require, 
designating the national committee of such party. 
Such statement shall 
include the information the following information: 
the name and address of the committee; 
the names, addresses, and relationships of affiliated or connected 
organizations; 
the area, scope, or jurisdiction of the committee; 
the name, address, and position of the custodian of books and 
accounts; 
the name, address and position of other principal officers, 
including officers and members of the finance committee, if any; 
the name, address, office sought, and party affiliation of (a) each 
candidate whom the committee is supporting, and (b) any other 
individual, if any, whom the committee is supporting for 
nomination for election, or election, to any public officer 
whatever; or if, the committee i s  supporting the entire ticket of 
any party, the name of the party; 
a statement whether the committee i s  a continuing one; 
the disposition of residual funds which will be made in the event 
of dissolution; 
a listing of all banks, safety deposit boxes, or other repositories 
used; 
a statement of the reports required to be filed by the committee 
with national or local officers, and if so, the names, addresses, 
and positions of such persons; and 
such other information as shall be required by the Commission. 
Upon receipt-of a statement filed under the preceding sentences, the 
Commission promptly shall verify such statement according to such procedures 
and criteria as it may establish and shall certify to the Secretary for payment in 
full to any such committee of amounts to which such committee may be 
entitled under subsection (b). Such certifications shall be subject to an 
examination and audit which the Commission shall conduct no later than 
December 31, of the calendar year in which the presidential nominating 
convention involved is held. 
(h) 
Repayments 
The Commission shall have the same authority to require repayments 
from the national committee of a major party or a minor party as it has with 
respect to repayments from any eligible candidate under section 7(b). The 
provisions of section 7(c) and section 7(d) shall apply with respect to any 
repayment required by the Commission under this subsection. 
I 
Section 9. 
(a) 
Reports 
Reports to Congress; regulations 
The Commission shall, as soon as practicable after each presidential 
election, submit a futl report to the Senate and House of Representatives 
setting forth - 
14 


the qualified campaign expenses (shown in such detail as the 
Commission determines necessary) incurred by the candidates of 
each political party and their authorized committees; 
the amounts certified by it under section 5 for payment to the 
eligible candidates of each political party; 
the amount of payments, if any, required from such candidates 
under section 7, and the reasons for each payment required; and 
the expenses incurred by the national committee of a major party 
or minor party with respect to a presidential nominating 
convention; 
the amounts certified by it under section 8(g) for payment to each 
such committee; and 
the amount of payments, if any, required from such committees 
under section 8(h), and the reasons for each such payment. 
Each report submitted pursuant to this section shall be printed as a 
Senate document. 
(b) 
Regulations, etc. 
The Commission is authorized to prescribe such rules and regulations in 
accordance with the provisions of subsection (c), to conduct such examinations 
and audits (in addition to the examinations and audits required by section 
7(a)), to conduct such investigations, and to require the keeping and 
submission of such books, records, and information, as it deems necessary to 
carry out the functions and duties imposed on it by this chapter. 
(c) 
Review of regulations 
(1) 
The Commission, before prescribing any rule or regulation under 
subsection (b), shall transmit a statement with respect to such rule or 
regulation to the Senate and to the House of Representatives, in 
accordance with the provisions of this subsection. Such statement shall 
set forth thg proposed rule or regulation and shall contain a detailed 
emlanation and justification of such rule or regulation. 
(2) 
If either such House does not, through appropriate action, 
disapprove the proposed rule or regulation set forth in such statement 
no later than 30 legislative days after receipt of such statement, then 
the Commission may prescribe such rule or regulation. 
Whenever a 
committee of the House of Representatives reports any resolution 
relating to any such rule or regulation, it is at any time thereafter in 
order (even though a previous motion to the same effect has been 
disagreed to) to move to proceed to the consideration of the resolution. 
The motion i s  highly privileged and i s  not debatable. An amendment to 
the motion i s  not in order, and it is not in order to move to reconsider 
the vote by which the motion is agreed to or disagreed to. 
The 
Commission may not prescribe any rule or regulation which is 
disapproved by either such House under this paragraph. 
15 


(3) 
For purposes of this subsection, the term "legislative days" does 
not include any calendar day on which both Houses of the Congress are 
not in session. 
(4) 
For purposes of this subsection, the term "rule or regulation" 
means a provision or series of interrelated provisions stating a single 
separable rule of law. 
- 
.- 
-* 
- 
Section 10. Participation by Commission in judicial proceedings 
(a) 
Appearance by counsel 
The Commission i s  authorized to appear in and defend against any action 
filed under section 11, either by attorneys employed in i t s  office or by counsel 
whom it may appoint. 
(b) 
Recovery of certain payments 
The Commission i s  authorized through attorneys and counsel described in 
subsection (a) to appear in the district courts of the Republic of the Philippines 
to seek recovery of any amounts determined to be payable to the Secretary of 
the Department of Finance as a result of examination and audit made pursuant 
to section 7. 
(c) 
Declaratory and injunctive relief 
The Commission is authorized through attorneys and counsel described in 
subsection (a) to petition the courts of the Republic of the Philippines for 
declaratory or injunctive relief concerning any civil matter covered by the 
provisions of this subtitle. 
Upon application of the Commission an action brought pursuant to this 
subsection shall be heard and determined by a the appropriate court in 
accordance with applicable laws, rules and regulations. 
1 
(d) 
Appeal 
I 
The Commission is authorized on behalf of the Republic of the 
Philippines to appeal from, and to petition the Supreme Court for certiorari to 
review, judgments or decrees entered with respect to actions in which it 
appears pursuant to the authority provided in this section. 
Section 11. Judicial review 
(a) 
Review of,-certification, 
determination, 
or other action by the 
Commission. 
Any certification, determination, or other action by the 
Commission made or taken pursuant to the provisions of this chapter shall be 
subject to review by the Court of Appeals upon petition filed in such Court by 
any interested person. Any petition filed pursuant to this section shall be filed 
within thirty days after the certification, determination, or other action by the 
Commission for which review is sought. 
.-- 
16 


(b) 
Suits to implement chapter 
(1) 
The Commission, the national committee of any political party, 
and individuals eligible to vote for President are authorized to institute 
such actions, including actions for declaratory judgment or injunctive 
relief, as may be appropriate to implement or construe any provisions of 
this chapter. 
(2) 
The appropriate courts of the Republic of the Philippines shall 
have jurisdiction of proceedings instituted pursuant to this subsection 
and shall exercise the same without regard to whether a person 
asserting rights under provisions of this subsection shall have exhausted 
any administrative or other remedies that may be provided at law. 
Section 12. Criminal penalties 
(a) 
Excess expenses 
(1) 
It shall be unlawful for an eligible candidate of a political party 
for Presided-and Vice President in a presidential election or any of his 
authorized committees knowingly and willfully to incur qualified 
campaign expenses in excess of the aggregate payments to which the 
eligible candidates of a major party are entitled under section 4 with 
respect to such election. It shall be unlawful for the national committee 
of a major party or minor party knowingly and willfully to incur expenses 
with respect to a presidential nominating convention in excess of the 
expenditure limitation applicable with respect to such committee under 
section 8(d), unless the incurring of such expenses is authorized by the 
Commission under section 8(d)(3). 
(2) 
Any person who violates paragraph (1) shall be fined not more 
than Php500,000, or imprisoned not more than one year or both. In case 
of a violation by an authorized committee, any officer or member of 
such committee who knowingly and willfully consents to such violation 
shall be fined not more than Php500,000, or imprisoned not more than 
one year, or both. 
(b) 
Contributions 
I .  
(1) 
It shall be unlawful for an eligible candidate of a major party in a 
presidential election or any of his authorized committees knowingly and 
willfully to accept any contribution to defray qualified campaign 
expenses, except to the extent necessary to make up any deficiency in 
payments received out of the fund on account of the application of 
section 6(c), or to defray expenses which would be qualified campaign 
expenses but for subparagraph (C) of section 2(11). 
(2) 
It shall be unlawful for an eligible candidate of a political party 
(other than a major party) in a presidential election or any of his 
authorized committees knowingly and willfully to accept and expend or 
retain contributions to defray qualified campaign expenses in an amount 
which exceeds the qualified campaign expenses incurred with respect to 
1
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-. . 


(3) 
Any person who violates paragraph (1) or (2) shall be fined not 
more than Php500,000, or imprisoned not more than one year, or both. 
In the case of a violation by an authorized committee, any officer or 
member of such committee who knowingly and willfully consents to such 
violation shall be fined not more than Php500,000, or imprisoned not 
more than one year, or both. 
(c) 
Unlawful use of payments 
(1) 
It shall be unlawful for any person who receives any payment 
under section 6, or to whom any portion of any payment received under 
such section is transferred, knowingly and willfully to use, or authorize 
the use of, such payment or such portion for any purpose other than - 
to defray the qualified campaign expenses with respect to 
which such payment was made, or 
(A) 
(B) 
to repay loans the proceeds of which were used, or 
otherwise to restore funds (other than contributions to 
defray qualified campaign expenses which were received 
and expended) which were used, to defray such qualified 
campaign expenses. 
(2) 
It shall be unlawful for the national committee of a major party or 
minor party which receives any payment under section 8 (b)(3) to use, or 
authorize the use of, such payment for any purpose other than a purpose 
authorized by section 8(c). 
(3) 
Any person who violates paragraph (1) shall be fined not more 
than Php1,000,000, or imprisoned not more than five years, or both. 
T- 
- -  
(d) 
False statements, etc. 
(1) 
It shall be unlawful for any person knowingly and willfully - 
(A) 
to furnish any false, fictitious, or fraudulent evidence, 
books, or information to the Commission under this 
subtitle, or to include in any evidence, books, or 
information so furnished any misrepresentation qf a 
material fact, or to falsify or conceal any evidence, books, 
or information relevant to certification by the Commission 
or an examination and audit by the Commission under this 
act; or 
to fail to furnish to the Commission any records, books, or 
information requested by it for purposes of this act. 
Any person who violates paragraph (1) shall be fined not more 
(B) 
(2) 
than Php1,000,000, or imprisoned not more than five years, or both. 
(e) 
Kickbacks and illegal payments 
(1) 
It shall be unlawful for any person knowingly and willfully to give 
or accept any kickback or any illegal payment in connection with any 
qualified campaign expense of eligible candidates or their authorized 
committees. It shall be unlawful for the national committee of a major 
18 


party or minor party knowingly and willfully to give or accept any 
kickback or';?ny illegal payment in connection with any expense incurred 
by such committee with respect to a presidential nominating 
convention. 
(2) 
Any person who violates paragraph (1) shall be fined not more 
than Phpl,OOO,OOO, or imprisoned not more than five years, or both. 
(3) 
In addition to the penalty provided by paragraph (2), any person 
who accepts any kickback or illegal payment in connection with any 
qualified campaign expense of eligible candidates or their authorized 
committees, or in connection with any expense incurred by the national 
committee of a major party or minor party with respect to a presidential 
nominating convention shall pay to the Secretary of the Department of 
Finance, for deposit in the general fund of the Department of Finance, 
an amount equal to 125 percent of the kickback or payment received. 
Unauthorized expenditures and contributions 
(1) 
Except as provided in paragraph (2), it shall be unlawful for any 
political committee which is not an authorized committee with respect 
to the eligible candidates of a political party for President and Vice 
President in a presidential election knowingly and willfully to incur 
expenditures to further the election of such candidates, which would 
constitute qualified campaign expenses if incurred by an a 
committee of such candidates, in an aggregate amount exceeding 
Phpl,OOO,OOO. 
(2) 
This subsection shall not apply to (A) expenditures by a 
broadcaster regulated by the National Telecommunications Commission, 
or by a periodical publication, in reporting the news or in taking 
editorial positions, or (B) expenditures by any organization in 
communicating to its members the views of that organization. 
(3) 
Any political committee which violates paragraph (1) shall be 
fined not more than Php500,000, and any officer or member of such 
committee who knowingly and willfully consents to such violation and 
any other individual who knowingly and willfully violates paragraph (1 ) 
shall be fined not more than Php500,000, or imprisoned not more than 
one year, oy both. 
Unauthorized disclosure of information 
(1) 
It shall be unlawful for any individual to disclose any information 
obtained under the provisions of this chapter except as may be required 
by law. 
(2) 
than Php500,000, or imprisoned not more than one year, or both. 
- -  
Any person who violates paragraph (1) shall be fined not more 
Section 13. Separability Clause. 
If any section or provision of this Act shall be declared unconstitutional 
or invalid, the other sections or provisions not affected thereby shall remain in 
full force and effect. 
19 


Section 14. Repealing Clause 
ALL caws, decrees, orders, rules and regulations and other issuances 
inconsistent with the provisions of this Act are deemed modified, revoked or 
repealed accordingly. 
Section 15. Effectivity 
This Act shall-take effect fifteen (15) days after its publication in two (2) 
newspapers of general circulation. 
Approved, 
20 
.
.