EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
S.B. No. 1 2
^
 TIME: 
/O  ■’ 0 2 , 
CO
BILLS & II
Introduced by Senator FRANKLIN M. DRILON
AN ACT STRENGTHENING THE POLITICAL PARTY SYSTEM OF THE
PHILIPPINES
EXPLANATORY NOTE
Political parties have been classically defined as an organized group of 
persons who preserve the same political ideals in a government. Ideally, since the 
community of political principles and interests bind the members of a party in the 
pursuit of their political goals, the same principles and interests command loyalty 
from each member to stick and maintain allegiance toward the group. Furthermore, 
in a situation where freedom allows the easy coalition of citizens of like interests and 
political pursuits, parties of distinctive political ideals and programs of action 
naturally arise rendering it difficult for a party member to move from one party to 
another without the concomitant abandonment of personally treasured ideals and 
the relearning of another.
Political parties in our country are normally used as political vehicles to win an 
election. Our political party system is centered on personalities rather than ideology 
and political platform. There have been many attempts to reform the orientation of 
our political parties in the past so as to veer away from the concept of traditional 
politics. Unfortunately, these attempts remain unsuccessful because of lack of legal 
institutional framework to govern system of political parties.
Hence, most political aspirants change political parties for convenience, rather 
than because of conviction. This only shows the lack of ideological commitment of 
the members of party because they choose parties based on the rise and fall of the 
tide of opportunity. "Turncoatism" should never be encouraged nor tolerated since it 
only distorts the concept of word of honor and dignity of a leader. It is therefore 
imperative that the country's political party system should be strengthened in order 
to achieve genuine political development and democratization.
Hence, the immediate passage of this bill is earnestly sought.
FRANKLIN M. DRILON


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S.B. No
SENATE 
12
TIME
W
BILLS
Introduced by Senator FRANKLIN M. DRILON
AN ACT STRENGTHENING THE POLITICAL PARTY SYSTEM OF THE
PHILIPPINES
Be it enacted in the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
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SECTION 1. S hort Title. -  This Act shall be known as "The Political Party
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System Act'.
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SEC. 2. Declaration o f Policy. -  It is hereby declared a policy of the State
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to institutionalize and strengthen political parties as pillars of the country's
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democratic system. Toward this end, the State shall:
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(a) 
institute reforms in campaign financing to promote accountability and
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transparency and reduce opportunities for graft and corruption;
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(b) 
provide equal opportunity to all political parties through financial
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subsidies for party development and campaign expenditures;
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(c) 
promote party loyalty, discipline and adherence to ideological principles,
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platforms and programs;
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(d) 
institute measures to make political parties viable instruments of
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development and good governance; and
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(e) 
encourage and support continuing voters' education through the political
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parties.
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SEC. 3. D efinition o f Terms. -  As used in this Act, the following terms shall
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mean:


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(a) 
"Accredited National Political Party" refers to a national political party 
qualified to receive subsidy for party development and campaign 
purposes, accredited for this purpose by the COMELEC based on the 
criteria provided under this Act.
(b) 
"Candidate" refers to any person aspiring for or seeking an elective 
public office, by himself or duly nominated by an accredited political 
party, aggroupment or coalition of parties, and who has filed a certificate 
of candidacy with the COMELEC.
(c) 
"Campaign Contribution" refers to any form of donation to any 
candidate, political party, aggroupment or coalition thereof, given 
before, during or after the holding of elections. It includes any gift, 
donation, subscription, loan, advance or deposit of money or anything of 
value, or those arising from a contract, pledge or agreement to 
contribute, made for the purpose of influencing the results of the 
elections, but shall not include services rendered without compensation 
by individuals volunteering a portion or all of their time in behalf of a 
candidate or political party. It also includes the use of office space, 
facilities, equipment, office supplies and other materials and fixtures 
voluntarily donated by other persons, or allowed their use for free, the 
monetary value of which shall be assessed based on market rates 
prevailing in a particular area.
(d) 
"Campaign Expenditure" refers to any type of expense incurred, 
regardless of source, amount and purpose, that relates, directly or 
indirectly, to the conduct of an electoral campaign. It includes all 
payments of money or anything of value, or a contract, promise or 
agreement to spend, for the purpose of influencing the results of the 
election. It includes the use of office space and facilities personally 
owned by the candidate, the monetary value of the use of which shall be 
assessed based on the market rates prevailing in a particular area.
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(e) 
"Disclosure Requirement" refers to the duty of all candidates and political


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(f)
parties, aggroupment or coalitions thereof to reveal the details of 
campaign contributions received by them, and the expenditures made on 
account thereof. For accredited national political parties, it includes 
expenditures and destinations of party development and campaign 
monies given to them as their share in the State Subsidy Fund 
established under this Act.
"Donor" refers to any person, natural or juridical, who contributes 
money, property or any other form of material contribution to a 
candidate, political party, aggroupment or coalition thereof.
(g) 
"Donee" refers to any candidate, political party, aggroupment or 
coalition thereof, or any representative acting in their behalf or interest, 
to whom money, property, or any other form of contribution is made.
(h) 
"National Political Party" refers to a political party or an organized group 
of persons duly registered with the COMELEC, whose constituency is 
effectively spread across the geographical territory of all or a majority of 
the administrative regions of the Philippines, pursuing or advocating 
platform, principles and policies for the general conduct of government 
and which, as the most immediate means of securing their adoption and 
implementation, regularly nominates and supports its members as 
candidates for public office.
(i) 
"Political Opportunism" refers to any act of a party member constituting 
disloyalty to the party, or regular non-adherence to the party's 
ideological principles, platforms and programs, as determined by the 
party in accordance with its constitution and by-laws.
(i) 
"Political Turncoatism" refers to the change of political party affiliation by 
any candidate, whether or not elected, from the time he was first 
nominated. Political turncoatism shall not apply in any of the following 
instances:
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(i) 
change in party affiliation before the effectivity of this Act;


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(2) 
abolition, merger or coalition of political parties where a candidate
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is a registered member thereof;
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(3) expulsion in writing of a registered member from his/her political
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party: Provided, That the cause for such does not constitute
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political opportunism.
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(k) 
"State Subsidy Fund" refers to the fund established under this Act for
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party development and 
campaign activities 
of accredited 
national
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political parties.
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G ) 
"Voluntary Contributions" refers to the contributions to candidates
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and/or political parties, aggroupment 
or coalitions thereof, as allowed
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under existing laws.
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SEC. 4. R egistration as a N ational P olitical Party. -  Any organized
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group of persons seeking registration as a national political party may file with the
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COMELEC a verified petition attaching thereto its constitution and by-laws, platform,
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principles, policies and general program of government, a verified list of its national
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officials, members of the executive board, or its equivalent, and the heads of its
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regional, provincial, and city chapters, annual statement of accounts, and such other
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relevant information as may be required by the COMELEC.
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The COMELEC shall, after due notice and hearing, resolve the petition within
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ten (10) days from the date it is submitted for decision. National Political Parties
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already registered as such with the COMLEC prior to the effectivity of this Act are
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not required to register anew.
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SEC. 5. Policy Agenda and Program o f Governance. -  National Political
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Parties are mandated to craft a clear policy agenda and program of governance
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consistent with their party philosophy and ideals. The members of the National
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Political Party shall endeavor to act in accordance with the defined party platform
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and pursue programs to fulfill party commitments.
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SEC. 6. Selection o f Candidates. -  The selection process for candidates of
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National Political Parties shall be democratized through the adoption of a process


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that is fair, open and transparent, and which promotes participation of choice from
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the members of the party. Toward this end, every National Political Party is
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mandated to formulate a merit system on nomination and selection of candidates
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who must be members of the party. Every National Political Party shall submit to the
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COMELEC its rules governing the merit system on nomination and selection of
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candidates not later than one hundred and eighty (180) days before the Election
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Day following the effectivity of this Act.
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Any aggrieved member of an Accredited National Political Party may file a
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verified complaint to its Grievance and Arbitration Committee not later than ten (10)
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days after the party convention, for violation of the rules governing the merit system
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on the nomination and selection of candidates. Every National Political Party may
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hold conventions or meetings to nominate their official candidates not earlier than
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fifteen (15) days before the start of election period and shall submit to the COMELEC
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not later than the start of the election period the names of the officials of the party
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authorized to nominate their official candidates.
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No political party shall nominate more candidates than the number of persons
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required to be voted for in an elective position nor shall any candidate be allowed to
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accept nominations from more than one registered political party, except in cases of
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aggroupment or coalitions thereof. Nominations made in violation hereof shall be
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denied due course by the COMELEC and the candidates concerned shall be
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considered independent candidates. The nominations of candidates of political
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parties shall be filed not later than the last day for filing of the certificates of
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candidacy as determined by the COMELEC.
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SEC. 7. C ertificate o f Nom ination and Acceptance. -  The certificate of
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nomination and acceptance shall state that the person issuing the nomination is the
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duly authorized representative of the political party as provided for in its constitution
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and by-laws, that the person named therein is the official candidate of the party for
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the elective position stated, and that he has accepted said nomination. The
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certificate of nomination and acceptance shall be subscribed under oath by the duly
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authorized representative of the political party.


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SEC. 8. Lim its on Voluntary Contributions. -  Voluntary contributions to
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any National Political Party shall be limited to the following maximum amounts:
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(a) 
Up to One Million Pesos (PI,000,000.00) from a person allowed to make
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a voluntary contribution under existing laws.
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(b) Any contribution, in cash or in kind, to any candidate or political party for
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campaign purposes, duly reported to the COMELEC, shall be exempt
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from donor's tax.
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SEC. 9. Voluntary Contributions to  Party; H ow  Made. -  Voluntary
9 
contribution to a political party shall be deposited by the contributor to the account
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of the party with any reputable bank accredited by the COMELEC, within six (6)
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months prior to the campaign period but not later than fifteen (15) days before the
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day of election. The accredited banks shall issue a corresponding receipt to the
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contributor on the amount deposited, and shall submit to the COMELEC a statement
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of account of every political party with deposits. The COMELEC shall cause the
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publication of the account of all political parties in any newspaper of general
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circulation within a reasonable time as determined by the COMELEC.
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SEC. 10. Changing Political Party A ffiliation. -  Any member o f a
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National Political Party who changes party affiliation after being nominated by the
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party shall be deemed to have committed Political Turncoatism.
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SEC. 11. Penalties fo r P olitical Turncoatism. - Political Turncoats shall
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be:
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(a) 
Disqualified from running under any political party, aggroupment or 
coalition thereof, for any elective position in the next succeeding election 
immediately following the act of changing political party affiliation;
(b) 
Prohibited from assuming any executive or administrative position in 
his/her new political party; and
(c) 
Directed to refund any and all amounts he/she received from his/her 
political party, plus a twenty-five percent (25%) surcharge thereon.


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SEC. 12. P etition fo r Disqualification. -  Any citizen of voting age, or any
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candidate, political party, aggroupment or coalition thereof, may file with the
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COMELEC, upon the filing of the certificate of candidacy and before proclamation, a
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petition to disqualify a candidate on the ground of political turncoatism as defined in
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this Act.
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SEC. 13. 
A uthorized Expenses o f N ational P olitical Parties. -  The
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amount that a National Political Party may spend for every election campaign shall
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be Twenty Pesos (P20.00) for every voter currently registered in the constituency or
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constituencies where it has official candidate. The COMELEC shall adjust the
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authorized amount based on the Consumer Price Index every three (3) years
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following the effectivity of this Act.
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SEC. 14. Establishm ent o f a State Subsidy Fund. -  There is hereby
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established
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a State Subsidy Fund, which shall be used to augment the operating funds of the
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Accredited National Political Parties. The fund shall be used directly and exclusively
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for party development and campaign expenditures.
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SEC. 15. Allow able Party Developm ent Activities. -  Due to the vital role
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played by the National Political Parties in the country's political development, and in
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order to promote professionalism and accountability among members of the parties,
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the following party development activities shall be allowed to be funded out of the
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State Subsidy Fund:
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(a) 
Party administration, recruitment and civic education;
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(b) 
Research and policy development;
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(c) 
Education and training of members;
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(d) Institution building and constituent outreach program; and
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(e) 
Other reasonable logistical and operational expenses that is essential in
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strengthening the party.


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SEC. 16. Allow able Campaign Expenditures. -  The Accredited National
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Political Parties are authorized to use the subsidy given to them only for the
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following campaign activities;
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(a) 
Operating expenses of the party, which may include hiring of personnel,
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professional secretariat, setting up of headquarters, and other relevant
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electoral expenditures;
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(b) Traveling expenses of the candidates and support personnel in the
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course of the campaign, and for personal expenses incident thereto;
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(c) Information dissemination and advocacy campaigns of the political party;
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(d) Production 
and distribution of electoral 
paraphernalia 
and 
other
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propaganda materials; and
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(e) Other expenditures under Section 102 of the Omnibus Election Code.
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SEC. 17. Accreditation. -  A National Political Party eligible in accordance
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with Section 20 hereof, and which desires to be entitled to the rights and privileges
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as recipient of the subsidy provided for under this Act, may apply for accreditation
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by the COMELEC, under such rules and regulations as the COMELEC shall prescribe
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consistent with the provisions of this Act.
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SEC. 18. Criteria fo r Eligibility. -  The COMELEC shall accredit National
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Political Parties eligible to receive subsidy from the State Subsidy Fund, based on the
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following general criteria:
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(a) Political representation, consisting of the incumbent president, vice
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president, 
members 
of 
congress, 
governors, 
vice-governors,
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city/municipal mayors and vice-mayors;
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(b) Organizational strength and mobilization capability, which may include
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the identifiable political organizations and strengths as evidenced by
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their organized chapters; the number of political chapters, organizations
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nationwide, the number of active and permanent members of the party;
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and the number of incumbent elective officials belonging to them ninety
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(90) days before the date of elections;
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(c) 
Performance and track record of the party, which may include the
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established record of the parties, that now composed them, taking into
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account, among other things, the number of years of existence of the
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party, their showing in the past elections as well as the ability of the
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party to field a slate of candidates from the municipal level to the
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position of senator in the immediately preceding national elections.
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SEC. 19. Effects o f Accreditation. -  A duly accredited National Political
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Party shall be entitled to the rights and privileges accorded under this Act. Likewise,
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the accredited national political party shall be subject to the regulations set forth in
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this Act and its implementing rules as prescribed by the COMELEC.
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SEC. 20. D istribution o f the Fund. -  The total amount of State Subsidy
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Fund released annually shall be distributed as follows:
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(a) 
Ten percent (10%) of the fund shall accrue to the COMELEC, to be used 
exclusively for monitoring purposes and the conduct of information 
dissemination campaigns and voters' education;
(b) Thirty percent (30%) of the fund shall be 
proportionately and ratably
distributed to accredited national political 
parties represented in the
Senate based on the number of seats obtained in the most recent
general elections;
(c) 
Thirty percent (30%) of the fund shall be 
proportionately and ratably
distributed to accredited national political 
parties represented in the
House of Representatives based on the number of seats obtained in the 
most recent general elections;
(d) Thirty percent (30%) of the fund shall be proportionately and ratably 
distributed to accredited national political parties based on the number 
of seats obtained in local elective positions for governor, sangguniang 
panlalawigan, city mayor, city vice-mayor, sangguniang panglungsod, 
municipal mayor, municipal vice-mayor and sangguniang bayan in the 
most recent general elections.


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The share of each of the Accredited National Political Parties in the State
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Subsidy Fund shall be released only upon proof that the concerned party has raised
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an amount equal to its share in the Fund from voluntary contributions; Provided
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that, the party concerned that fails to raise an amount equal to its share in the fund
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shall only receive an amount from its share in the fund equal to the amount raised
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from voluntary contributions; Provided further, that the balance, if any, from the
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share in the Fund of the party concerned shall be forfeited and reverted to the
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general funds of the Government.
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SEC. 21. Schedule o f Releases from  the Fund. -  For purposes of this
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Act, all releases from the State Subsidy Fund during a non-election year shall be
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used exclusively for party development activities. Funds released during an election
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year shall be divided as follows: seventy-five percent (75%) shall be used for
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campaign expenditures, and twenty-five percent (25%) for party development
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activities. The COMELEC shall inform the Accredited National Political Parties of the
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schedule of releases as well as the amount of the subsidy allocated at the start of
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every fiscal year.
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SEC. 22. M anagem ent o f the Subsidy. -  The Accredited National Political
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Parties availing of the subsidy shall maintain a separate financial account for the
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funds used to finance campaign activities and party development, respectively.
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Every Accredited National Political Party shall submit to the COMELEC a
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detailed program of activities as well as the breakdown of expenditures drawn from
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the Fund by the end of December of every fiscal year. No Accredited National
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Political Party shall be allowed to use the subsidy for purposes other than those
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indicated in this Act.
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SEC. 23. A u d it o f the Fund. -  The Commission on Audit (COA) shall
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examine the financial reports of the Accredited National Political Parties on their use
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of the State Subsidy Fund. Voluntary contributions to any Accredited 
National
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Political Party shall be accounted for separately under a different set of books of
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accounts, which shall be open to inspection by the COA.
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SEC. 24. P arty Ethics. -  Accredited National Political Parties shall institute
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internal control mechanisms to promote accountability and transparency. Accredited
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National Political Parties shall likewise develop and enforce an internal code of
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conduct and ethical standards for its party members to uphold the values and
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standards of public life, and to formulate and implement disciplinary procedures for
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party members: Provided that, said program for internal controls, ethical standards
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and disciplinary procedures shall be duly submitted to the COMELEC and made
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available to the public.
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SEC. 25. Full Disclosure. -  The officials of every Accredited National
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Political Party shall submit a sworn statement of their assets and liabilities to the
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COMELEC which shall be made available to the public. All Accredited National
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Political Parties and their candidates shall also be required to make a public-
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disclosure of all contributions as well as expenditures incurred for the use of the
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State Subsidy Fund.
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The disclosures shall be made through the official website of the COMELEC
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and in a newspaper of general circulation.
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SEC. 26. O ther Reports. -  The following shall be reported by the
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Accredited National Political Parties and their candidates:
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3 0
(a) 
The amount of contribution, the date of receipt by the bank, and the full 
name and exact address of the person from whom the contribution was 
received;
(b) A full report of expenditures and receipts incurred during the campaign, 
including those which were drawn from the State Subsidy Fund, if any;
(c) 
Post-election disclosure statements as required under existing laws, 
which must be submitted to the COMELEC within thirty (30) days after 
Election Day. Submissions made thirty (30) days after the deadline 
provided by law will be considered late and subject to a fine in such 
amounts as may be determined by the COMELEC; and
(d) 
Detailed breakdown of expenditures for the party development activities 
charged against the State Subsidy Fund. The financial report covering 
the party development activities shall be submitted annually, at the end
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of every fiscal year. The subsidy for the succeeding year will not be 
released without the submission of the said report covering the 
preceding year.
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These reports are required of every accredited national political party and its
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candidates, regardless of the results of the elections.
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SEC. 27. 
Failure 
to 
Comply 
w ith Disclosure and R eporting
7 
Requirements. -Failure of the Accredited National Political Party to comply with
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the provisions of this Act will result in its disqualification from receiving its share in
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the State Subsidy Fund, which shall revert to the general funds of the Government,
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and forfeiture of all the rights and privileges to which it would have been entitled 
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under this Act.
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SEC. 28. Performance M onitoring and Reporting System. -  The
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COMELEC and the COA shall jointly design and implement, in consultation with
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political parties, aggroupment or coalitions thereof, accredited citizens' arms, the
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private sector and non-governmental organizations, and government agencies, an
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integrated 
political 
party 
development 
and 
campaign 
subsidy 
performance
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monitoring and reporting system. The performance and monitoring system shall
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identify, define and operationalize a system of performance indicators and measures
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for party development and campaign subsidy deployment.
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The COMELEC and the COA shall, based on the results of the system, publish
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and disseminate annual reports on the development of political parties that have
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received subsidies and on the distribution, use and results of the campaign subsidies
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provided to political parties.
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SEC. 29. Publication and Dissem ination o f the P olitical P arty
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Developm ent and Campaign Subsidy Performance Reports. -  The political
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party development and campaign subsidy performance reports shall be submitted to 
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both houses of the Congress of the Philippines not later than June 30 of every year,
28 
and shall be made available to the public via the internet and mass media as a guide
29 
for the citizenry in evaluating political parties for the purpose of participating in their
30 
program of activities, and in supporting, affiliating with, or joining them.
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SEC. 30. Punishable Acts. -  The following acts shall be punishable:
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(a) 
Misuse of funds received by National Political Parties both from the State
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Subsidy Fund and from voluntary contributions;
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(b) The giving of voluntary contributions which go beyond the allowable
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limits set under this Act and other existing laws;
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(c) 
Inability to account for all incoming contributions from whatever source;
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(d) 
Failure to submit pre-election as well as post-election disclosure
8 
statements to the COMELEC. Any submission past the late submission
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period set in Section 28(c) will be deemed as a failure to submit, hence,
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punishable under this Act; and
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(e) 
False reporting or any misrepresentation in the financial statement
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reports.
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SEC. 31. Penalties. -  (a) Any candidate or official of any National Political
14 
Party who violates any provision of this Act shall be punished with imprisonment of
15 
not less than six (6) years but not more than twelve (12) years, or a fine ranging
16 
from Fifty Thousand Pesos (P50,000.00) to Five Flundred Thousand Pesos
17 
(P500,000.00), or both. Fie shall, likewise, be disqualified to hold public office. Any
18 
National Political Party that violates any provision of this Act shall pay a fine of not
19 
less than One Flundred Thousand Pesos (P100,000.00) but not more than One
20 
Million Pesos (P1,000,000.00); (b) Any National Political Party that fails to comply
21 
with any of the documentary requirements set forth in this Act shall be subject to
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administrative sanctions by the COMELEC, which shall include temporary or
23 
permanent cancellation of the party's registration, as well as payment of fines
24 
consistent with existing laws and regulations; and (c) Any national political party
25 
who shall be found to be directly responsible for the accommodation of the political
26 
turncoats shall be stripped of its state subsidy after due notice and hearing before
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the COMELEC.
28 
SEC. 32. Appropriations. -  The amount of Three Flundred Fifty Million
29 
Pesos (P350,000,000.00) is hereby appropriated out of the funds of the National
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Treasury not otherwise appropriated, effective immediately upon the approval of this
2 
Act. Every year thereafter, and not later than January 15 of every year; there shall
3 
be appropriated the amount Three Hundred Fifty Million Pesos (P350,000,000.00).
4 
All such amounts appropriated pursuant to this Act shall go to the State Subsidy
5 
Fund, which shall be administered by the COMELEC.
6 
The COMELEC and the Department of Budget and Management (DBM) shall
7 
promulgate guidelines to facilitate the release of the funds to every accredited
8 
national political party.
9 
SEC. 33. Lead Agency. -  The COMELEC shall administer and enforce the
10 
provisions of the Act.
11 
SEC. 34. Applicability. -  The provisions of Batas Pambansa Big. 881,
12 
otherwise known as the "Omnibus Election Code of the Philippines", as amended,
13 
and other election laws not inconsistent with this Act shall apply suppletorily.
14 
SEC. 35. Rules and Regulations. -  The COMELEC shall promulgate the
15 
necessary rules and regulations to effectively implement the provisions of this Act.
16 
SEC. 36. Repealing Clause. -  All laws, orders, issuances, rules and
17 
regulations or parts thereof inconsistent with the provisions of this Act are hereby
18 
repealed, modified or amended accordingly.
19 
SEC. 37. Separability Clause. -  If any part of this Act is held invalid or
20 
unconstitutional, the other parts or provisions thereof not affected thereby shall
21 
remain valid and effective.
22 
SEC. 38. Effectivity. -  This Act shall take effect after fifteen (15) days
23 
following its publication in the Official Gazette and in two (2) newspapers of general
24 
circulation.
Approved,
14