People-powered Campaign Crowdfunding Act

Stilatt TWENTIETH CONGRESS OF THE ) geT Office of the Emerg REPUBLIC OF THE PHILIPPINES First Regular Session 26 FEB 25 P 4:55 SENATE 1909 RECEIVED BY: S. No. - Introduced by Senator Bam Aquino AN ACT PROMOTING CITIZEN-BASED CROWDFUNDING FOR ELECTION CAMPAIGNS AND STRENGTHENING DEMOCRATIC CAMPAIGN FINANCE EXPLANATORY NOTE Our democracy works best when leaders are elected because of the support of the many, rather than the powerful few who can afford to fund them. But the reality is that in many elections, campaign financing is dominated by big donors and political financiers with vested interests. This prevents candidates who may have the competence and integrity to serve, but not the access to wealthy backers, from participating in a fair race. It creates conflicts of interest, undermines public trust, and makes it harder for reform-minded leaders and ordinary citizens to run for office. This measure seeks to make our elections more democratic by promoting citizen-based campaign crowdfunding, a transparent and accountable way for ordinary Filipinos to help fund the candidates and causes they believe in. It recognizes small contributions as a form of civic participation and modernizes campaign finance rules to reflect the digital realities of political engagement today. When millions of citizens are empowered to contribute small amounts, it becomes harder for any single interest to control a campaign, and clearer that an elected official's mandate comes from the people. The proposed bill establishes a system for accrediting campaign crowdfunding platforms under the supervision of the Commission on Elections (COMELEC), with safeguards to prevent foreign interference and prohibited contributions. It also strengthens transparency through real-time disclosure of the total amounts raised and the number of contributors. In a country where many feel excluded from politics, we should make it easier for citizens to participate not only by voting, but also by supporting leaders who fight for honest government and represent the will of the people.

In view of the foregoing, the passage of this bill is earnestly sought. Bam aquin

Senate /Offire of the can catary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 26 FEB 25 P4:55 SENATE RECEIVED BY: S. No. 1909 Introduced by Senator Bam Aquino AN ACT PROMOTING CITIZEN-BASED CROWDFUNDING FOR ELECTION CAMPAIGNS AND STRENGTHENING DEMOCRATIC CAMPAIGN FINANCE Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "People-Powered

2 Campaign Crowdfunding Act."

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

promote free, orderly, honest, peaceful, and credible elections by strengthening democratic participation in campaign finance and minimizing undue influence arising from concentrated campaign funding. To this end, the State shall: (a) promote citizen participation in campaign financing through small-donor 9 contributions and transparent crowdfunding mechanisms; (b) reduce dependence of candidates and political parties on large private donors, political financiers, and entities with conflicts of interest; (c) ensure public transparency, accountability, and integrity in the raising and spending of campaign funds; and (d) strengthen safeguards against foreign interference, prohibited contributions, money laundering, and circumvention schemes.

Sec. 3. Definition of Terms. - As used in this Act:

(a) Campaign crowdfunding refers to the raising of campaign contributions 2 through a digital or online platform from a large number of individual contributors, 3 typically in small amounts. (b) Crowdfunding platform refers to a website, application, payment gateway, 5 or digital service used to receive and process campaign contributions for candidates 6 or political parties. (c) Small-donor contribution refers to a campaign contribution made by an individual natural person in an amount not exceeding Ten Thousand Pesos 9 (P10,000.00) per transaction, or such threshold as may be adjusted by the 10 Commission on Elections (COMELEC) for inflation every three (3) years. (d) Accredited campaign crowdfunding platform refers to a crowdfunding platform duly accredited by COMELEC pursuant to this Act. (e) Qualified recipient refers to a candidate, political party, or party-list organization duly registered with COMELEC and eligible to receive campaign contributions under existing election laws and COMELEC rules. (f) Prohibited contributorrefers to any person, entity, or source disallowed from making contributions under the Omnibus Election Code, Republic Act No. 7166, and other applicable laws, including foreign nationals, foreign juridical entities, and other prohibited sources as may be provided by law or COMELEC regulations.

Sec. 4. Recognition of Campaign Crowdfunding as a Method of Campaign

Fundraising. - Campaign crowdfunding is hereby recognized and promoted as a permitted method of fundraising for qualified recipients, subject to existing election laws and the safeguards set forth in this Act.

Sec. 5. Accreditation of Campaign Crowdfunding Platforms. -

(a) COMELEC Accreditation. - COMELEC shall establish a system for the accreditation of campaign crowdfunding platforms. No platform shall represent itself as a campaign crowdfunding platform for Philippine elections unless accredited. (b) Minimum Accreditation Requirements. - An accredited platform shall: i. implement identity verification measures sufficient to determine the contributor is a natural person eligible to donate under law; ii. maintain transaction records including date/time, amount, contributor name, and other required data while respecting data privacy;

iii. generate automatic reports compatible with filing of Statement of Contributions and Expenditures (SOCE) and COMELEC audit requirements; iv. provide a public dashboard showing aggregate amounts raised as required under this Act; implement measures against bot-driven donations, fake identities, donation splitting, and other circumvention schemes; and vi. implement safeguards to prevent contributions from foreign sources, prohibited contributors, or suspicious accounts; vii. comply with the Data Privacy Act, Anti-Money Laundering rules as applicable, and other relevant regulations. (c) Suspension or Revocation. - COMELEC may suspend or revoke accreditation upon due notice and hearing for material violations of this Act.

Sec. 6. National Registry and Public Dashboard. -

(a) COMELEC shall maintain a publicly accessible National Registry of Accredited Campaign Crowdfunding Platforms, including their accreditation status. (b) COMELEC shall establish, or require accredited platforms to maintain, a public dashboard that provides real-time or near-real-time disclosure of total amount raised via crowdfunding; number of contributors; distribution of contributions by bracket; and other information as may be determined by COMELEC, provided that donor personal data shall be protected and disclosed only as allowed under existing law.

Sec. 7. Simplified Reporting for Small-Donor Contributions. -

(a) Small-donor contributions received through accredited platforms may be reported in aggregate form for public disclosure, provided that the platform maintains complete underlying records for audit. (b) COMELEC shall prescribe simplified reporting templates to encourage compliance and reduce administrative burden for small-donor giving.

Sec. 8. Safeguards Against Prohibited and Foreign Contributions. -

(a) Accredited platforms shall implement reasonable measures to prevent and block contributions from prohibited contributors. (b) If prohibited contributions are detected, the platform and recipient shall:

i. return the contribution within fifteen (15) days from discovery; and ii. disclose the attempted prohibited contribution to COMELEC in the manner prescribed by regulation. (c) COMELEC shall coordinate with relevant agencies for enforcement, including the Anti-Money Laundering Council (AMLC) as applicable.

Sec. 9. Integration into the Statement of Contributions and Expenditures

(SOCE). - (a) COMELEC shall require that all crowdfunding receipts and disbursements be reflected in the SOCE of the qualified recipient. (b) Accredited platforms shall provide standardized exportable reports to support SOCE filing and COMELEC audit.

Sec. 10. Acceptance from Candidates. - All campaign contributions received

through accredited campaign crowdfunding platforms shall be formally acknowledged by the qualified recipient in the manner prescribed by the Commission on Elections (COMELEC). Only contributions that have been duly acknowledged by the qualified recipient shall be deemed accepted for purposes of campaign finance reporting and inclusion in the Statement of Contributions and Expenditures (SOCE).

Sec. 11. Data Privacy and Security. - All collection, processing, retention, and

disclosure of donor information under this Act shall comply with the Data Privacy Act. COMELEC and accredited platforms shall adopt appropriate organizational, physical, and technical safeguards to protect personal data.

Sec. 12. Implementing Rules and Regulations. - Within ninety (90) days from

the effectivity of this Act, COMELEC, in coordination with the BIR, AMLC, DICT, and other relevant agencies, shall promulgate the necessary rules and regulations for its effective implementation.

Sec. 13. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 14. Repealing Clause. - All laws, presidential decrees, executive orders,

letters of instruction, and administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its

2 publication in the Official Gazette, or in a newspaper of general circulation. Approved,