BARANGAY ASSOCIATION FORG.R. No. 179271NATIONALADVANCEMENTAND TRANSPARENCY (BANAT),Petitioner,- versus -COMMISSION ON ELECTIONS(sitting as the National Board ofCanvassers),Respondent.ARTS BUSINESS AND SCIENCEPROFESSIONALS,Intervenor.AANGAT TAYO,Intervenor.COALITION OF ASSOCIATIONSOF SENIOR CITIZENS IN THEPHILIPPINES, INC. (SENIORCITIZENS),Intervenor.x- - - - - - - - - - - - - - - - - - - - - - - - - - - - xBAYAN MUNA, ADVOCACY FORG.R. No. 179295TEACHER EMPOWERMENTTHROUGH ACTION, COOPERATIONPresent:ANDHARMONY TOWARDSEDUCATIONAL REFORMS, INC.,PUNO,C.J.,and ABONO,QUISUMBING,Petitioners,YNARES-SANTIAGO,CARPIO,AUSTRIA-MARTINEZ,CORONA,- versus -CARPIO MORALES,TINGA,CHICO-NAZARIO,VELASCO, JR.,NACHURA,LEONARDO-DE CASTRO,BRION,PERALTA, andBERSAMIN,JJ.COMMISSION ON ELECTIONS,Promulgated:Respondent._______________________x - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - xD E C I S I O NCARPIO,J.:The CasePetitioner in G.R. No. 179271Barangay Association for National Advancement and Transparency (BANAT)in a petition for certiorari and mandamus,[1]assails the Resolution[2]promulgated on 3 August 2007 by the Commission on Elections (COMELEC) in NBC No. 07-041 (PL).The COMELECs resolution in NBC No. 07-041 (PL) approved the recommendation of Atty. Alioden D. Dalaig, Head of the National Board of Canvassers (NBC) Legal Group, to deny the petition of BANAT for being moot.BANAT filed before the COMELEC En Banc, acting as NBC, aPetition to Proclaim the Full Number of Party-List Representatives Provided by the Constitution.The following are intervenors in G.R. No. 179271:Arts Business and Science Professionals (ABS), Aangat Tayo (AT), and Coalition of Associations of Senior Citizens in the Philippines, Inc. (Senior Citizens).Petitioners in G.R. No. 179295Bayan Muna, Abono, and Advocacy for Teacher Empowerment Through Action, Cooperation and Harmony Towards Educational Reforms (A Teacher)in a petition for certiorari with mandamus and prohibition,[3]assails NBC Resolution No. 07-60[4]promulgated on 9 July 2007.NBC No. 07-60 made a partial proclamation of parties, organizations and coalitions that obtained at least two percent of the total votes cast under the Party-List System.The COMELEC announced that, upon completion of the canvass of the party-list results, it would determine the total number of seats of each winning party, organization, or coalition in accordance withVeterans Federation Party v. COMELEC[5](Veterans).Estrella DL Santos, in her capacity as President and First Nominee of the Veterans Freedom Party, filed a motion to intervene in both G.R. Nos. 179271 and 179295.The FactsThe 14 May 2007 elections included the elections for the party-list representatives.The COMELEC counted 15,950,900 votes cast for 93 parties under the Party-List System.[6]On 27 June 2002, BANAT filed aPetition to Proclaim the Full Number of Party-List Representatives Provided by the Constitution, docketed as NBC No. 07-041 (PL) before the NBC.BANAT filed its petition because [t]he Chairman and the Members of the [COMELEC] have recently been quoted in the national papers that the [COMELEC] is duty bound to and shall implement theVeteransruling, that is, would apply the Panganiban formula in allocating party-list seats.[7]There were no intervenors in BANATs petition before the NBC.BANAT filed a memorandum on 19 July 2007.On 9 July 2007, the COMELEC, sitting as the NBC, promulgated NBC Resolution No. 07-60.NBC Resolution No. 07-60 proclaimed thirteen (13) parties as winners in the party-list elections, namely: Buhay Hayaan Yumabong (BUHAY), Bayan Muna, Citizens Battle Against Corruption (CIBAC), Gabrielas Women Party (Gabriela), Association of Philippine Electric Cooperatives (APEC), A Teacher, Akbayan! Citizens Action Party (AKBAYAN), Alagad, Luzon Farmers Party (BUTIL), Cooperative-Natco Network Party (COOP-NATCCO), Anak Pawis, Alliance of Rural Concerns (ARC), and Abono.We quote NBC Resolution No. 07-60 in its entirety below:WHEREAS, the Commission on Elections sittingen bancas National Board of Canvassers, thru its Sub-Committee for Party-List, as of 03 July 2007, had officially canvassed, in open and public proceedings, a total offifteen million two hundred eighty three thousand six hundred fifty-nine (15,283,659)votes under the Party-List System of Representation, in connection with the National and Local Elections conducted last 14 May 2007;WHEREAS, the study conducted by the Legal and Tabulation Groups of the National Board of Canvassers reveals that the projected/maximum total party-list votes cannot go any higher thansixteen million seven hundred twenty three thousand one hundred twenty-one (16,723,121)votes given the following statistical data:Projected/Maximum Party-List Votes for May 2007 Electionsi.Total party-list votes already canvassed/tabulated15,283,659

ii. Total party-list votes remaining uncanvassed/ untabulated (i.e. canvass deferred)1,337,032

iii. Maximum party-list votes (based on 100% outcome) from areas not yet submitted for canvass (Bogo, Cebu; Bais City; Pantar, Lanao del Norte; and Pagalungan, Maguindanao)102,430

Maximum Total Party-List Votes16,723,121

WHEREAS, Section 11 of Republic Act No. 7941 (Party-List System Act) provides in part:The parties, organizations, and coalitions receiving at least two percent (2%) of the total votes cast for the party-list system shall be entitled to one seat each: provided, that those garnering more than two percent (2%) of the votes shall be entitled to additional seats in proportion to their total number of votes: provided, finally, that each party, organization, or coalition shall be entitled to not more than three (3) seats.WHEREAS, for the 2007 Elections, based on the above projected total of party-list votes, the presumptive two percent (2%) threshold can be pegged atthree hundred thirty four thousand four hundred sixty-two (334,462)votes;WHEREAS, the Supreme Court, inCitizens Battle Against Corruption (CIBAC) versus COMELEC, reiterated its ruling inVeterans Federation Party versus COMELECadopting a formula for the additional seats of each party, organization or coalition receving more than the required two percent (2%) votes, stating that the same shall be determined only after all party-list ballots have been completely canvassed;WHEREAS, the parties, organizations, and coalitions that have thus far garnered at leastthree hundred thirty four thousand four hundred sixty-two (334,462)votes are as follows:RANKPARTY/ORGANIZATION/COALITIONVOTESRECEIVED

1BUHAY1,163,218

2BAYAN MUNA972,730

3CIBAC760,260

4GABRIELA610,451

5APEC538,971

6A TEACHER476,036

7AKBAYAN470,872

8ALAGAD423,076

9BUTIL405,052

10COOP-NATCO390,029

11BATAS386,361

12ANAK PAWIS376,036

13ARC338,194

14ABONO337,046

WHEREAS, except for Bagong Alyansang Tagapagtaguyod ng Adhikaing Sambayanan (BATAS), against which anURGENT PETITION FOR CANCELLATION/REMOVAL OF REGISTRATION AND DISQUALIFICATION OF PARTY-LIST NOMINEE (With Prayer for the Issuance of Restraining Order)has been filed before the Commission, docketed as SPC No. 07-250, all the parties, organizations and coalitions included in the aforementioned list are therefore entitled to at least one seat under the party-list system of representation in the meantime.NOW, THEREFORE,by virtue of the powers vested in it by the Constitution, the Omnibus Election Code, Executive Order No. 144, Republic Act Nos. 6646, 7166, 7941, and other election laws, the Commission on Elections, sittingen bancas the National Board of Canvassers, hereby RESOLVES to PARTIALLY PROCLAIM, subject to certain conditions set forth below, the following parties, organizations and coalitions participating under the Party-List System:1Buhay Hayaan YumabongBUHAY

2Bayan MunaBAYAN MUNA

3Citizens Battle Against CorruptionCIBAC

4Gabriela Womens PartyGABRIELA

5Association of Philippine Electric CooperativesAPEC

6Advocacy for Teacher Empowerment Through Action, Cooperation and Harmony Towards Educational Reforms, Inc.A TEACHER

7Akbayan! Citizens Action PartyAKBAYAN

8AlagadALAGAD

9Luzon Farmers PartyBUTIL

10Cooperative-Natco Network PartyCOOP-NATCCO

11Anak PawisANAKPAWIS

12Alliance of Rural ConcernsARC

13AbonoABONO

This is without prejudice to the proclamation of other parties, organizations, or coalitions which may later on be established to have obtained at least two percent (2%) of the total actual votes cast under the Party-List System.The total number of seats of each winning party, organization or coalition shall be determined pursuant toVeterans Federation Party versus COMELECformula upon completion of the canvass of the party-list results.The proclamation of Bagong Alyansang Tagapagtaguyod ng Adhikaing Sambayanan (BATAS) is hereby deferred until final resolution of SPC No. 07-250, in order not to render the proceedings therein moot and academic.Finally, all proclamation of the nominees of concerned parties, organizations and coalitions with pending disputes shall likewise be held in abeyance until final resolution of their respective cases.Let the Clerk of the Commission implement this Resolution, furnishing a copy thereof to the Speaker of the House of Representatives of the Philippines.SO ORDERED.[8](Emphasis in the original)Pursuant to NBC Resolution No. 07-60, the COMELEC, acting as NBC, promulgated NBC Resolution No. 07-72, which declared the additional seats allocated to the appropriate parties.We quote from the COMELECs interpretation of theVeteransformula as found in NBC Resolution No. 07-72:WHEREAS, on July 9, 2007, the Commission on Elections sittingen bancas the National Board of Canvassers proclaimed thirteen (13) qualified parties, organization[s] and coalitions based on the presumptive two percent (2%) threshold of 334,462 votes from the projected maximum total number of party-list votes of 16,723,121, and were thus given one (1) guaranteed party-list seat each;WHEREAS, per Report of the Tabulation Group and Supervisory Committee of the National Board of Canvassers, the projected maximum total party-list votes, as of July 11, 2007, based on the votes actually canvassed, votes canvassed but not included in Report No. 29, votes received but uncanvassed, and maximum votes expected for Pantar, Lanao del Norte, is 16,261,369; and that the projected maximum total votes for the thirteen (13) qualified parties, organizations and coalition[s] are as follows:Party-ListProjected total number of votes

1BUHAY1,178,747

2BAYAN MUNA977,476

3CIBAC755,964

4GABRIELA621,718

5APEC622,489

6A TEACHER492,369

7AKBAYAN462,674

8ALAGAD423,190

9BUTIL409,298

10COOP-NATCO412,920

11ANAKPAWIS370,165

12ARC375,846

13ABONO340,151

WHEREAS, based on the above Report,Buhay Hayaan Yumabong(Buhay) obtained the highest number of votes among the thirteen (13) qualified parties, organizations and coalitions, making it the first party in accordance withVeterans Federation Party versus COMELEC, reiterated inCitizens Battle Against Corruption (CIBAC) versus COMELEC;WHEREAS,qualified parties, organizations and coalitions participating under the party-list system of representation that have obtained one guaranteed (1) seat may be entitled to an additional seat or seats based on the formula prescribed by the Supreme Court inVeterans;WHEREAS, in determining the additional seats for the first party, the correct formula as expressed inVeterans, is:Number of votes of first partyProportion of votes of first- - - - - - - - - - - - - - - - - - - - -=party relative to total votes forTotal votes for party-list systemparty-list systemwherein the proportion of votes received by the first party (without rounding off) shall entitle it to additional seats:Proportion of votes receivedby the first partyAdditional seats

Equal to or at least 6%Two (2) additional seats

Equal to or greater than 4% but less than 6%One (1) additional seat

Less than 4%No additional seat

WHEREAS, applying the above formula, Buhay obtained the following percentage:1,178,747- - - - - - - -= 0.07248 or 7.2%16,261,369which entitles it to two (2) additional seats.WHEREAS, in determining the additional seats for the other qualified parties, organizations and coalitions, the correct formula as expressed inVeteransand reiterated inCIBACis, as follows:No. of votes ofconcerned partyNo. of additionalAdditional seats for=-------------------xseats allocated toa concerned partyNo. of votes offirst partyfirst partyWHEREAS, applying the above formula, the results are as follows:Party ListPercentageAdditional Seat

BAYAN MUNA1.651

CIBAC1.281

GABRIELA1.051

APEC1.051

A TEACHER0.830

AKBAYAN0.780

ALAGAD0.710

BUTIL0.690

COOP-NATCO0.690

ANAKPAWIS0.620

ARC0.630

ABONO0.570

NOW THEREFORE, by virtue of the powers vested in it by the Constitution, Omnibus Election Code, Executive Order No. 144, Republic Act Nos. 6646, 7166, 7941 and other elections laws, the Commission on Electionsen bancsitting as the National Board of Canvassers, hereby RESOLVED, as it hereby RESOLVES, to proclaim the following parties, organizations or coalitions as entitled to additional seats, to wit:Party ListAdditional Seats

BUHAY2

BAYAN MUNA1

CIBAC1

GABRIELA1

APEC1

This is without prejudice to the proclamation of other parties, organizations or coalitions which may later on be established to have obtained at least two per cent (2%) of the total votes cast under the party-list system to entitle them to one (1) guaranteed seat, or to the appropriate percentage of votes to entitle them to one (1) additional seat.Finally, all proclamation of the nominees of concerned parties, organizations and coalitions with pending disputes shall likewise be held in abeyance until final resolution of their respective cases.Let the National Board of Canvassers Secretariat implement this Resolution, furnishing a copy hereof to the Speaker of the House of Representatives of the Philippines.SO ORDERED.[9]Acting on BANATs petition, the NBC promulgated NBC Resolution No. 07-88 on 3 August 2007, which reads as follows:This pertains to the Petition to Proclaim the Full Number of Party-List Representatives Provided by the Constitution filed by the Barangay Association for National Advancement and Transparency (BANAT).Acting on the foregoing Petition of the Barangay Association for National Advancement and Transparency (BANAT) party-list, Atty. Alioden D. Dalaig, Head, National Board of Canvassers Legal Group submitted his comments/observations and recommendation thereon [NBC 07-041 (PL)], which reads:COMMENTS / OBSERVATIONS:Petitioner Barangay Association for National Advancement and Transparency (BANAT), in its Petition to Proclaim the Full Number of Party-List Representatives Provided by the Constitution prayed for the following reliefs, to wit:1.That the full number -- twenty percent (20%) -- of Party-List representatives as mandated by Section 5, Article VI of the Constitution shall be proclaimed.2.Paragraph (b), Section 11 of RA 7941 which prescribes the 2% threshold votes, should be harmonized with Section 5, Article VI of the Constitution and with Section 12 of the same RA 7941 in that it should be applicable only to the first party-list representative seats to be allotted on the basis of their initial/first ranking.3.The 3-seat limit prescribed by RA 7941 shall be applied; and4.Initially, all party-list groups shall be given the number of seats corresponding to every 2% of the votes they received and the additional seats shall be allocated in accordance with Section 12 of RA 7941, that is, in proportion to the percentage of votes obtained by each party-list group in relation to the total nationwide votes cast in the party-list election, after deducting the corresponding votes of those which were allotted seats under the 2% threshold rule.In fine, the formula/procedure prescribed in the ALLOCATION OF PARTY-LIST SEATS, ANNEX A of COMELEC RESOLUTION 2847 dated 25 June 1996, shall be used for [the] purpose of determining how many seats shall be proclaimed, which party-list groups are entitled to representative seats and how many of their nominees shall seat [sic].5.In the alternative, to declare as unconstitutional Section 11 of Republic Act No. 7941 and that the procedure in allocating seats for party-list representative prescribed by Section 12 of RA 7941 shall be followed.RECOMMENDATION:Thepetition of BANAT is now moot and academic.The Commission En Banc in NBC ResolutionNo. 07-60 promulgated July 9, 2007 reIn the Matter of the Canvass of Votes and Partial Proclamation of the Parties, Organizations and Coalitions Participating Under the Party-List System During the May 14, 2007 National and Local Electionsresolved among others that the total number of seats of each winning party, organization or coalition shall be determined pursuant to theVeterans Federation PartyversusCOMELECformula upon completion of the canvass of the party-list results.WHEREFORE, premises considered, the National Board of Canvassers RESOLVED, as it hereby RESOLVES, to approve and adopt the recommendation of Atty. Alioden D. Dalaig, Head, NBC Legal Group, to DENY the herein petition of BANAT for being moot and academic.Let the Supervisory Committee implement this resolution.SO ORDERED.[10]BANAT filed a petition for certiorari and mandamus assailing the ruling in NBC Resolution No. 07-88.BANAT did not file a motion for reconsideration of NBC Resolution No. 07-88.On 9 July 2007, Bayan Muna, Abono, and A Teacher asked the COMELEC, acting as NBC, to reconsider its decision to use theVeteransformula as stated in its NBC Resolution No. 07-60 because theVeteransformula is violative of the Constitution and of Republic Act No. 7941 (R.A. No. 7941).On the same day, the COMELEC denied reconsideration during the proceedings of the NBC.[11]Aside from the thirteen party-list organizations proclaimed on 9 July 2007, the COMELEC proclaimed three other party-list organizations as qualified parties entitled to one guaranteed seat under the Party-List System:Agricultural Sector Alliance of the Philippines, Inc. (AGAP),[12]Anak Mindanao (AMIN),[13]and An Waray.[14]Per the certification[15]by COMELEC, the following party-list organizations have been proclaimed as of 19 May 2008:Party-ListNo. of Seat(s)

1.1Buhay3

1.2Bayan Muna2

1.3CIBAC2

1.4Gabriela2

1.5APEC2

1.6A Teacher1

1.7Akbayan1

1.8Alagad1

1.9Butil1

1.10Coop-Natco [sic]1

1.11Anak Pawis1

1.12ARC1

1.13Abono1

1.14AGAP1

1.15AMIN1

The proclamation of Bagong Alyansang Tagapagtaguyod ng Adhikaing Sambayanan (BATAS), against which an Urgent Petition for Cancellation/Removal of Registration and Disqualification of Party-list Nominee (with Prayer for the Issuance of Restraining Order) has been filed before the COMELEC, was deferred pending final resolution of SPCNo. 07-250.IssuesBANAT brought the following issues before this Court:1.Is the twenty percent allocation for party-list representativesprovided in Section 5(2), Article VI of the Constitution mandatoryor is it merely a ceiling?2.Is the three-seat limit provided in Section 11(b) of RA 7941constitutional?3.Is the two percent threshold and qualifier votes prescribed by thesame Section 11(b) of RA 7941 constitutional?4.How shall the party-list representatives be allocated?[16]Bayan Muna, A Teacher, and Abono, on the other hand, raised the following issues in their petition:I.Respondent Commission on Elections, acting as National Board ofCanvassers, committed grave abuse of discretion amounting tolack or excess of jurisdiction when it promulgated NBC ResolutionNo. 07-60 to implement the First-Party Rule in the allocation ofseats to qualified party-list organizations as said rule:A.Violates the constitutional principle of proportionalrepresentation.B.Violates the provisions of RA 7941 particularly:1.The 2-4-6 Formula used by the First Party Rule inallocating additional seats for the First Partyviolates the principle of proportional representationunder RA 7941.2.Theuse of two formulas in the allocation ofadditional seats, one for the First Party andanother for the qualifying parties, violates Section11(b) of RA 7941.3.The proportional relationships under the First PartyRule are different from those required under RA7941;C.Violates the Four Inviolable Parameters of the Philippineparty-list system as provided for under the same case ofVeterans Federation Party, et al. v. COMELEC.II.Presuming that the Commission on Elections did not commit graveabuse of discretion amounting to lack or excess of jurisdictionwhen it implemented the First-Party Rule in the allocation of seatsto qualified party-list organizations, the same being merely inconsonance with the ruling inVeterans Federations Party, et al. v.COMELEC,the instant Petition is a justiciable case as the issuesinvolved herein are constitutional in nature, involving the correctinterpretation and implementation of RA 7941, and are oftranscendental importance to our nation.[17]Considering the allegations in the petitions and the comments of the parties in these cases, we defined the following issues in our advisory for the oral arguments set on 22 April 2008:1.Is the twenty percent allocation for party-list representatives inSection 5(2), Article VI of the Constitution mandatory or merely aceiling?2.Is the three-seat limit in Section 11(b) of RA 7941 constitutional?3.Is the two percent threshold prescribed in Section 11(b) of RA7941 to qualify for one seat constitutional?4.How shall the party-list representative seats be allocated?5.Does the Constitution prohibit the major political parties fromparticipating in the party-list elections?If not, can the majorpolitical parties be barred from participating in the party-listelections?[18]The Ruling of the CourtThe petitions have partial merit.We maintain that a Philippine-style party-list election has at least four inviolable parameters as clearly stated inVeterans.For easy reference, these are:First, the twenty percent allocationthe combined number ofallparty-list congressmen shall not exceed twenty percent of the total membership of the House of Representatives, including those elected under the party list;Second,the two percent thresholdonly those parties garnering a minimum of two percent of the total valid votes cast for the party-list system are qualified to have a seat in the House of Representatives;Third,the three-seat limiteach qualified party, regardless of the number of votes it actually obtained, is entitled to a maximum of three seats; that is, one qualifying and two additional seats;Fourth, proportional representationthe additional seats which a qualified party is entitled to shall be computed in proportion to their total number of votes.[19]However, because the formula inVeteranshas flaws in its mathematical interpretation of the term proportional representation, this Court is compelled to revisit the formula for the allocation of additional seats to party-list organizations.Number of Party-List Representatives:The Formula Mandated by the ConstitutionSection 5, Article VI of the Constitution provides:Section 5. (1) The House of Representatives shall be composed of not more than two hundred and fifty members, unless otherwise fixed by law, who shall be elected from legislative districts apportioned among the provinces, cities, and the Metropolitan Manila area in accordance with the number of their respective inhabitants, and on the basis of a uniform and progressive ratio, and those who, as provided by law, shall be elected through a party-list system of registered national, regional, and sectoral parties or organizations.(2)The party-list representatives shall constitute twenty per centum of the total number of representatives including those under the party-list.For three consecutive terms after the ratification of this Constitution, one-half of the seats allocated to party-list representatives shall be filled, as provided by law, by selection or election from the labor, peasant, urban poor, indigenous cultural communities, women, youth, and such other sectors as may be provided by law, except the religious sector.The first paragraph of Section 11 of R.A. No. 7941 reads:Section 11.Number of Party-List Representatives.The party-list representatives shall constitute twenty per centum (20%) of the total number of the members of the House of Representatives including those under the party-list.x x xSection 5(1), Article VI of the Constitution states that the House of Representatives shall be composed of not more than two hundred and fifty members, unless otherwise fixed by law.The House of Representatives shall be composed of district representatives and party-list representatives.The Constitution allows the legislature to modify the number of the members of the House of Representatives.Section 5(2), Article VI of the Constitution, on the other hand, states the ratio of party-list representatives to the total number of representatives.We compute the number of seats available to party-list representatives from the number of legislative districts.On this point, we do not deviate from the first formula inVeterans, thus:Number of seats available to legislative districtsx .20=Number of seats available toparty-list representatives

.80

This formula allows for the corresponding increase in the number of seats available for party-list representatives whenever a legislative district is created by law. Since the 14thCongress of the Philippines has 220 district representatives, there are 55 seats available to party-list representatives.220x .20=55

.80

After prescribing the ratio of the number of party-list representatives to the total number of representatives,the Constitution left the manner of allocating the seats available to party-list representatives to the wisdom of the legislature.Allocation of Seats for Party-List Representatives:The Statutory Limits Presented by the Two Percent Thresholdand the Three-Seat CapAll parties agree on the formula to determine the maximum number of seats reserved under the Party-List System, as well as on the formula to determine the guaranteed seats to party-list candidates garnering at least two-percent of the total party-list votes. However, there are numerous interpretations of the provisions of R.A. No. 7941 on the allocation ofadditional seatsunder the Party-List System.Veteransproduced the First Party Rule,[20]and Justice Vicente V. Mendozas dissent inVeteranspresented Germanys Niemeyer formula[21]as an alternative.The Constitution left to Congress the determination of the manner ofallocating the seats for party-list representatives. Congress enacted R.A.No. 7941,paragraphs (a) and (b) of Section 11 and Section 12 of which provide:Section 11.Number of Party-List Representatives.x x xIn determining the allocation of seats for the second vote,[22]the following procedure shall be observed:(a)The parties, organizations, and coalitions shall be ranked from the highest to the lowest based on the number of votes they garnered during the elections.(b)The parties, organizations, and coalitions receiving at least two percent (2%) of the total votes cast for the party-list system shall be entitled to one seat each:Provided, That those garnering more than two percent (2%) of the votes shall be entitled to additional seats in proportion to their total number of votes:Provided, finally, That each party, organization, or coalition shall be entitled to not more than three (3) seats.Section 12.Procedure in Allocating Seats for Party-List Representatives.The COMELEC shall tally all the votes for the parties, organizations, or coalitions on a nationwide basis, rank them according to the number of votes received and allocate party-list representatives proportionately according to the percentage of votes obtained by each party, organization, or coalition as against the total nationwide votes cast for the party-list system. (Emphasis supplied)In G.R. No. 179271, BANAT presents two interpretations through three formulas to allocate party-list representative seats.The first interpretation allegedly harmonizes the provisions of Section 11(b) on the 2% requirement with Section 12 of R.A. No. 7941.BANAT described this procedure as follows:(a)The party-list representatives shall constitute twenty percent (20%) of the total Members of the House of Representatives including those from the party-list groups as prescribed by Section 5, Article VI of the Constitution, Section 11 (1stpar.) of RA 7941 and Comelec Resolution No. 2847 dated 25 June 1996.Since there are 220 District Representatives in the 14thCongress, there shall be 55 Party-List Representatives.All seats shall have to be proclaimed.(b)All party-list groups shall initially be allotted one (1) seat for every two per centum (2%) of the total party-list votes they obtained; provided, that no party-list groups shall have more than three (3) seats (Section 11, RA 7941).(c)The remaining seats shall, after deducting the seats obtained by the party-list groups under the immediately preceding paragraph and after deducting from their total the votes corresponding to those seats, the remaining seats shall be allotted proportionately to all the party-list groups which have not secured the maximum three (3) seats under the 2% threshold rule, in accordance with Section 12 of RA 7941.[23]Forty-four (44) party-list seats will be awarded under BANATs first interpretation.The second interpretation presented by BANAT assumes that the 2% vote requirement is declared unconstitutional, and apportions the seats for party-list representatives by following Section 12 of R.A. No. 7941.BANAT states that the COMELEC:(a)shall tally all the votes for the parties, organizations, or coalitionson a nationwide basis;(b)rank them according to the number of votes received; and,(c)allocate party-list representatives proportionatelyaccording to thepercentage of votes obtained by each party, organization orcoalition as against the total nationwide votes cast for the party-listsystem.[24]BANAT used two formulas to obtain the same results: one is based on the proportional percentage of the votes received by each party as against the total nationwide party-list votes, and the other is by making the votes of a party-list with a median percentage of votes as the divisor in computing the allocation of seats.[25]Thirty-four (34) party-list seats will be awarded under BANATs second interpretation.In G.R. No. 179295, Bayan Muna, Abono, and A Teacher criticize both the COMELECs original 2-4-6 formula and theVeteransformula for systematically preventing all the party-list seats from being filled up.They claim that both formulas do not factor in the total number of seats alloted for the entire Party-List System.Bayan Muna, Abono, and A Teacher reject the three-seat cap, but accept the 2% threshold.After determining the qualified parties, a second percentage is generated by dividing the votes of a qualified partyby the total votes of all qualified parties only.The number of seats allocated to a qualified party is computed by multiplying the total party-list seats available with the second percentage.There will be a first round of seat allocation, limited to using the whole integers as the equivalent of the number of seats allocated to the concerned party-list.After all the qualified parties are given their seats, a second round of seat allocation isconducted.The fractions, or remainders, from the whole integers are ranked from highest to lowest and the remaining seats on the basis of this ranking are allocated until all the seats are filled up.[26]We examine what R.A. No. 7941 prescribes to allocate seats for party-list representatives.Section 11(a) of R.A. No. 7941 prescribes the ranking of the participating parties from the highest to the lowest based on the number of votes they garnered during the elections.Table 1.Ranking of the participating parties from the highest to the lowest based on the number of votes garnered during the elections.[27]RankPartyVotes GarneredRankPartyVotes Garnered

1BUHAY1,169,23448KALAHI88,868

2BAYAN MUNA979,03949APOI79,386

3CIBAC755,68650BP78,541

4GABRIELA621,17151AHONBAYAN78,424

5APEC619,65752BIGKIS77,327

6A TEACHER490,37953PMAP75,200

7AKBAYAN466,11254AKAPIN74,686

8ALAGAD423,14955PBA71,544

9COOP-NATCCO409,88356GRECON62,220

10BUTIL409,16057BTM60,993

11BATAS385,81058A SMILE58,717

12ARC374,28859NELFFI57,872

13ANAKPAWIS370,26160AKSA57,012

14ABONO339,99061BAGO55,846

15AMIN338,18562BANDILA54,751

16AGAP328,72463AHON54,522

17AN WARAY321,50364ASAHAN MO51,722

18YACAP310,88965AGBIAG!50,837

19FPJPM300,92366SPI50,478

20UNI-MAD245,38267BAHANDI46,612

21ABS235,08668ADD45,624

22KAKUSA228,99969AMANG43,062

23KABATAAN228,63770ABAY PARAK42,282

24ABA-AKO218,81871BABAE KA36,512

25ALIF217,82272SB34,835

26SENIOR CITIZENS213,05873ASAP34,098

27AT197,87274PEP33,938

28VFP196,26675ABA ILONGGO33,903

29ANAD188,52176VENDORS33,691

30BANAT177,02877ADD-TRIBAL32,896

31ANG KASANGGA170,53178ALMANA32,255

32BANTAY169,80179AANGAT KA PILIPINO29,130

33ABAKADA166,74780AAPS26,271

341-UTAK164,98081HAPI25,781

35TUCP162,64782AAWAS22,946

36COCOFED155,92083SM20,744

37AGHAM146,03284AG16,916

38ANAK141,81785AGING PINOY16,729

39ABANSE! PINAY130,35686APO16,421

40PM119,05487BIYAYANG BUKID16,241

41AVE110,76988ATS14,161

42SUARA110,73289UMDJ9,445

43ASSALAM110,44090BUKLOD FILIPINA8,915

44DIWA107,02191LYPAD8,471

45ANC99,63692AA-KASOSYO8,406

46SANLAKAS97,37593KASAPI6,221

47ABC90,058TOTAL15,950,900

The first clause of Section 11(b) of R.A. No. 7941 states that parties, organizations, and coalitions receiving at least two percent (2%) of the total votes cast for the party-list system shall be entitled to one seat each.This clause guarantees a seat to the two-percenters.In Table 2 below, we use the first 20 party-list candidates for illustration purposes.The percentage of votes garnered by each party is arrived at by dividing the number of votes garnered by each party by 15,950,900, the total number of votes cast for all party-list candidates.Table 2.The first 20 party-list candidates and their respective percentage of votes garnered over the total votes for the party-list.[28]RankPartyVotes GarneredVotes Garnered over Total Votes for Party-List, in %Guaranteed Seat

1BUHAY1,169,2347.33%1

2BAYAN MUNA979,0396.14%1

3CIBAC755,6864.74%1

4GABRIELA621,1713.89%1

5APEC619,6573.88%1

6A TEACHER490,3793.07%1

7AKBAYAN466,1122.92%1

8ALAGAD423,1492.65%1

9COOP-NATCCO409,8832.57%1

10BUTIL409,1602.57%1

11BATAS[29]385,8102.42%1

12ARC374,2882.35%1

13ANAKPAWIS370,2612.32%1

14ABONO339,9902.13%1

15AMIN338,1852.12%1

16AGAP328,7242.06%1

17AN WARAY321,5032.02%1

Total17

18YACAP310,8891.95%0

19FPJPM300,9231.89%0

20UNI-MAD245,3821.54%0

From Table 2 above, we see that only 17 party-list candidates received at least 2% from the total number of votes cast for party-list candidates.The 17 qualified party-list candidates, or the two-percenters, are the party-list candidates that are entitled to one seat each, or the guaranteed seat.In this first round of seat allocation, we distributed 17 guaranteed seats.The second clause ofSection 11(b) of R.A. No. 7941 provides that those garnering more than two percent (2%) of the votes shall be entitled to additional seatsin proportion to their total number of votes.This is where petitioners and intervenors problem with the formula inVeteranslies.Veteransinterprets the clause in proportion to their total number of votes to bein proportion to the votes of the first party.This interpretation is contrary to the express language of R.A. No. 7941.We rule that, in computing the allocation ofadditional seats, the continued operation of the two percent threshold for the distribution of the additional seats as found in the second clause ofSection 11(b) of R.A. No. 7941 isunconstitutional.This Court finds that the two percent threshold makes it mathematically impossible to achieve the maximum number of available party list seats when the number of available party list seats exceeds 50.The continued operation of the two percent threshold in the distribution of the additional seats frustrates the attainment of the permissive ceiling that 20% of the members of the House of Representatives shall consist of party-list representatives.To illustrate:There are 55 available party-list seats.Suppose there are 50 million votes cast for the 100 participants in the party list elections.A party that has two percent of the votes cast, or one million votes, gets a guaranteed seat.Let us further assume that the first 50 parties all get one million votes.Only 50 parties get a seat despite the availability of 55 seats.Because of the operation of the two percent threshold, this situation will repeat itself even if we increase the available party-list seats to 60 seats and even if we increase the votes cast to 100 million.Thus, even if the maximum number of parties get two percent of the votes for every party, it is always impossible for the number of occupied party-list seats to exceed 50 seats as long as the two percent threshold is present.We therefore strike down the two percent threshold only in relation to the distribution of the additional seats as found in the second clause of Section 11(b) of R.A. No. 7941.The two percent threshold presents an unwarranted obstacle to the full implementation of Section 5(2), Article VI of the Constitution and prevents the attainment of the broadest possible representation of party, sectoral or group interests in the House of Representatives.[30]In determining the allocation of seats for party-list representatives under Section 11 of R.A. No. 7941, the following procedure shall be observed:1.The parties, organizations, and coalitions shall be ranked from the highest to the lowest based on the number of votes they garnered during the elections.2.The parties, organizations, and coalitions receiving at least two percent (2%) of the total votes cast for the party-list system shall be entitled to one guaranteed seat each.3.Those garnering sufficient number of votes, according to the ranking in paragraph 1, shall be entitled to additional seats in proportion to their total number of votes until all the additional seats are allocated.4.Each party, organization, or coalition shall be entitled to not more than three (3) seats.In computing the additional seats, the guaranteed seats shall no longer be included because they have already been allocated, at one seat each, to every two-percenter.Thus, the remaining available seats for allocation as additional seatsarethe maximum seats reserved under the Party List System less the guaranteed seats.Fractional seats are disregarded in the absence of a provision in R.A. No. 7941 allowing for a rounding off of fractional seats.In declaring the two percent threshold unconstitutional, we do not limit our allocation of additional seats in Table 3 below to the two-percenters.The percentage of votes garnered by each party-list candidate is arrived at by dividing the number of votes garnered by each party by 15,950,900, the total number of votes cast for party-list candidates.There are two steps in the second round of seat allocation. First, the percentage is multiplied by the remaining available seats, 38, which is the difference between the 55 maximum seats reserved under the Party-List System and the 17 guaranteed seats of the two-percenters.The whole integer of the product of the percentage and of the remaining available seats corresponds to a partys share in the remaining available seats.Second, we assign one party-list seat to each of the parties next in rank until all available seats are completely distributed.We distributed all of the remaining 38 seats in the second round of seat allocation.Finally, we apply the three-seat cap to determine the number of seats each qualified party-list candidate is entitled.Thus:Table 3.Distribution of Available Party-List SeatsRankPartyVotes GarneredVotes Garnered overTotal Votes for Party List, in %(A)Guaranteed Seat(First Round)(B)AdditionalSeats(Second Round)(C)(B) plus (C), in whole integers(D)Applying the three seat cap(E)

1BUHAY1,169,2347.33%12.793N.A.

2BAYAN MUNA979,0396.14%12.333N.A.

3CIBAC755,6864.74%11.802N.A.

4GABRIELA621,1713.89%11.482N.A.

5APEC619,6573.88%11.482N.A.

6A Teacher490,3793.07%11.172N.A.

7AKBAYAN466,1122.92%11.112N.A.

8ALAGAD423,1492.65%11.012N.A.

9[31]COOP-NATCCO409,8832.57%112N.A.

10BUTIL409,1602.57%112N.A.

11BATAS385,8102.42%112N.A.

12ARC374,2882.35%112N.A.

13ANAKPAWIS370,2612.32%112N.A.

14ABONO339,9902.13%112N.A.

15AMIN338,1852.12%112N.A.

16AGAP328,7242.06%112N.A.

17AN WARAY321,5032.02%112N.A.

18YACAP310,8891.95%011N.A.

19FPJPM300,9231.89%011N.A.

20UNI-MAD245,3821.54%011N.A.

21ABS235,0861.47%011N.A.

22KAKUSA228,9991.44%011N.A.

23KABATAAN228,6371.43%011N.A.

24ABA-AKO218,8181.37%011N.A.

25ALIF217,8221.37%011N.A.

26SENIOR CITIZENS213,0581.34%011N.A.

27AT197,8721.24%011N.A.

28VFP196,2661.23%011N.A.

29ANAD188,5211.18%011N.A.

30BANAT177,0281.11%011N.A.

31ANG KASANGGA170,5311.07%011N.A.

32BANTAY169,8011.06%011N.A.

33ABAKADA166,7471.05%011N.A.

341-UTAK164,9801.03%011N.A.

35TUCP162,6471.02%011N.A.

36COCOFED155,9200.98%011N.A.

Total1755

Applying the procedure of seat allocation as illustrated in Table 3 above, there are 55 party-list representatives from the 36 winning party-list organizations.All 55 available party-list seats are filled.The additional seats allocated to the parties with sufficient number of votes for one whole seat, in no case to exceed a total of three seats for each party, are shown in column (D).Participation of Major Political Parties in Party-List ElectionsThe Constitutional Commission adopted a multi-party system thatallowed all political parties to participate in the party-list elections.The deliberations of the Constitutional Commission clearly bear this out, thus:MR. MONSOD.Madam President, I just want to say that we suggested or proposed the party list system because we wanted to open up the political system to a pluralistic society through a multiparty system.x x xWe are for opening up the system, and we would like very much for the sectors to be there.That is why one of the ways to do that is to put a ceiling on the number of representatives from any single party that can sit within the 50 allocated under the party list system. x x x.x x xMR. MONSOD.Madam President, the candidacy for the 198 seats is not limited to political parties.My question is this: Are we going to classify for example Christian Democrats and Social Democrats as political parties?Can they run under the party list concept or must they be under the district legislation side of it only?MR. VILLACORTA.In reply to that query, I think these parties that the Commissioner mentioned can field candidates for the Senate as well as for the House of Representatives.Likewise, they can also field sectoral candidates for the 20 percent or 30 percent, whichever is adopted, of the seats that we are allocating under the party list system.MR. MONSOD.In other words, the Christian Democrats can field district candidates and can also participate in the party list system?MR. VILLACORTA.Why not?When they come to the party list system, they will be fielding only sectoral candidates.MR. MONSOD.May I be clarified on that?Can UNIDO participate in the party list system?MR. VILLACORTA.Yes, why not?For as long as they field candidates who come from the different marginalized sectors that we shall designate in this Constitution.MR. MONSOD.Suppose Senator Taada wants to run under BAYAN group and says that he represents the farmers, would he qualify?MR. VILLACORTA.No, Senator Taada would not qualify.MR. MONSOD.But UNIDO can field candidates under the party list system and say Juan dela Cruz is a farmer.Who would pass on whether he is a farmer or not?MR. TADEO.Kay Commissioner Monsod, gusto ko lamang linawin ito.Political parties, particularly minority political parties, are not prohibited to participate in the party list election if they can prove that they are also organized along sectoral lines.MR. MONSOD.What the Commissioner is saying is that all political parties can participate because it is precisely the contention of political parties that they represent the broad base of citizens and that all sectors are represented in them.Would the Commissioner agree?MR. TADEO.Ang punto lamang namin, pag pinayagan mo ang UNIDO na isang political party, it will dominate the party list at mawawalang saysay din yung sector.Lalamunin mismo ng political parties ang party list system.Gusto ko lamang bigyan ng diin ang reserve.Hindi ito reserve seat sa marginalized sectors.Kung titingnan natin itong 198 seats, reserved din ito sa political parties.MR. MONSOD.Hindi po reserved iyon kasi anybody can run there.But my question to Commissioner Villacorta and probably also to Commissioner Tadeo is that under this system, would UNIDO be banned from running under the party list system?MR. VILLACORTA.No, as I said,UNIDO may field sectoral candidates.On that condition alone, UNIDO may be allowed to register for the party list system.MR. MONSOD.May I inquire from Commissioner Tadeo if he shares that answer?MR.TADEO.The same.MR.VILLACORTA.Puwede po ang UNIDO, pero sa sectoral lines.x x x xMR.OPLE.x x xIn my opinion, this will also create the stimulus for political parties and mass organizations to seek common ground.For example, we have the PDP-Laban and the UNIDO.I see no reason why they should not be able to make common goals with mass organizations so that the very leadership of these parties can be transformed through the participation of mass organizations.And if this is true of the administration parties, this will be true of others like the Partido ng Bayan which is now being formed.There is no question that they will be attractive to many mass organizations.In the opposition parties to which we belong, there will be a stimulus for us to contact mass organizations so that with their participation, the policies of such parties can be radically transformed because this amendment will create conditions that will challenge both the mass organizations and the political parties to come together.And the party list system is certainly available, although it is open to all the parties.It is understood that the parties will enter in the roll of the COMELEC the names of representatives of mass organizations affiliated with them.So that we may, in time, develop this excellent system that they have in Europe where labor organizations and cooperatives, for example, distribute themselves either in the Social Democratic Party and the Christian Democratic Party in Germany, and their very presence there has a transforming effect upon the philosophies and the leadership of those parties.It is also a fact well known to all that in the United States, the AFL-CIO always vote with the Democratic Party.But the businessmen, most of them, always vote with the Republican Party, meaning that there is no reason at all why political parties and mass organizations should not combine, reenforce, influence and interact with each other so that the very objectives that we set in this Constitution for sectoral representation are achieved in a wider, more lasting, and more institutionalized way. Therefore, I support this [Monsod-Villacorta] amendment.It installs sectoral representation as a constitutional gift, but at the same time, it challenges the sector to rise to the majesty of being elected representatives later on through a party list system; and even beyond that, to become actual political parties capable of contesting political power in the wider constitutional arena for major political parties.x x x[32](Emphasis supplied)R.A. No. 7941 provided the details for the concepts put forward by the Constitutional Commission.Section 3 of R.A. No. 7941 reads:Definition of Terms.(a) The party-list system is a mechanism of proportional representation in the election of representatives to the House of Representatives from national, regional and sectoral parties or organizations or coalitions thereof registered with the Commission on Elections (COMELEC). Component parties or organizations of a coalition may participate independently provided the coalition of which they form part does not participate in the party-list system.(b) A party means either a political party or a sectoral party or a coalition of parties.(c) A political party refers to an organized group of citizens advocating an ideology or platform, principles and policies for the general conduct of government and which, as the most immediate means of securing their adoption, regularly nominates and supports certain of its leaders and members as candidates for public office.It is a national party when its constituency is spread over the geographical territory of at least a majority of the regions. It is a regional party when its constituency is spread over the geographical territory of at least a majority of the cities and provinces comprising the region.(d) A sectoral party refers to an organized group of citizens belonging to any of the sectors enumerated in Section 5 hereof whose principal advocacy pertains to the special interests and concerns of their sector,(e) A sectoral organization refers to a group of citizens or a coalition of groups of citizens who share similar physical attributes or characteristics, employment, interests or concerns.(f) A coalition refers to an aggrupation of duly registered national, regional, sectoral parties or organizations for political and/or election purposes.Congress, in enacting R.A. No. 7941, put the three-seat cap to prevent any party from dominating the party-list elections.Neither the Constitution nor R.A. No. 7941 prohibits major political parties from participating in the party-list system.On the contrary, the framers of the Constitution clearly intended the major political parties to participate in party-list elections through their sectoral wings.In fact, themembers of the Constitutional Commission voted down, 19-22, any permanent sectoral seats, and in the alternative the reservation of the party-list system to the sectoral groups.[33]In defining a party that participates in party-list elections as either a political party or a sectoral party,R.A. No. 7941 also clearly intended that major political parties will participate in the party-list elections.Excluding the major political parties in party-list elections is manifestly against the Constitution, the intent of the Constitutional Commission, and R.A. No. 7941.This Court cannot engage in socio-political engineering and judicially legislate the exclusion of major political parties from the party-list elections in patent violation of the Constitution and the law.Read together, R.A. No. 7941 and the deliberations of the Constitutional Commission state that major political parties are allowed to establish, or form coalitions with, sectoral organizations for electoral or political purposes.There should not be a problem if, for example, the Liberal Party participates in the party-list election through the Kabataang Liberal ng Pilipinas (KALIPI), its sectoral youth wing.The other major political parties can thus organize, or affiliate with, their chosen sector or sectors.To further illustrate, the Nacionalista Party can establish a fisherfolk wing to participate in the party-list election, and this fisherfolkwing can field its fisherfolk nominees.Kabalikat ng Malayang Pilipino (KAMPI) can do the same for the urban poor.Thequalifications of party-list nomineesare prescribed in Section 9 of R.A. No. 7941:Qualifications of Party-List Nominees.No person shall be nominated as party-list representative unless he is a natural born citizen of the Philippines, a registered voter, a resident of the Philippines for a period of not less than one (1) year immediately preceding the day of the elections, able to read and write,bona fidemember of the party or organization which he seeks to represent for at least ninety (90) days preceding the day of the election, and is at least twenty-five (25) years of age on the day of the election.In case of a nominee of the youth sector, he must at least be twenty-five (25) but not more than thirty (30) years of age on the day of the election.Any youth sectoral representative who attainsthe age of thirty (30) during his term shall be allowed to continue until the expiration of his term.Under Section 9 of R.A. No. 7941, it is not necessary that the party-list organizations nominee wallow in poverty, destitution and infirmity[34]as there is no financial status required in the law.It is enough that the nominee of the sectoral party/organization/coalition belongs to the marginalized and underrepresented sectors,[35]that is, if the nominee represents the fisherfolk, he or she must be a fisherfolk, or if the nominee represents the senior citizens, he or she must be a senior citizen.Neither the Constitution nor R.A. No. 7941 mandates the filling-up of the entire 20% allocation of party-list representatives found in the Constitution.The Constitution, in paragraph 1, Section 5 of Article VI, left the determination of the number of the members of the House of Representatives to Congress:The House of Representatives shall be composed of not more than two hundred and fifty members, unless otherwise fixed by law, x x x.The 20% allocation of party-list representatives is merely a ceiling; party-list representatives cannot be more than 20% of the members of the House of Representatives.However, we cannot allow the continued existence of a provision in the law which will systematically prevent the constitutionally allocated 20% party-list representatives from being filled.The three-seat cap, as a limitation to the number of seats that a qualified party-list organization may occupy, remains a valid statutory device that prevents any party from dominating the party-list elections.Seats for party-list representatives shall thus be allocated in accordance with the procedure used in Table 3 above.However, by a vote of 8-7, the Court decided to continue the ruling inVeteransdisallowing major political parties from participating in the party-list elections, directly or indirectly.Those who voted to continue disallowing major political parties from the party-list elections joined Chief Justice Reynato S. Puno in his separate opinion.On the formula to allocateparty-list seats, the Court is unanimous in concurring with thisponencia.WHEREFORE,wePARTIALLY GRANTthe petition.WeSET ASIDEthe Resolution of the COMELEC dated 3 August 2007 in NBC No. 07-041 (PL) as well as the Resolution dated 9 July 2007 in NBC No. 07-60.We declare unconstitutional the two percent threshold in the distribution of additional party-list seats.The allocation of additional seats under the Party-List System shall be in accordance with the procedure used in Table 3 of this Decision.Major political parties are disallowed from participating in party-list elections.This Decision is immediately executory.No pronouncement as to costs.SO ORDERED.