FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
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First Regular Session 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Philippine politics is distinct and dynamic. We might have borrowed and 
adopted the political systems and practices of other states but ours is 
incomparable to anything else. 
While some may admire the kind and quality of politics we practice, others 
are critical to it. One of the aspects of Filipino politics criticized, not only by 
foreigners but also by our own citizens, is the weak political party system and the 
proliferation of turncoatism. 
This proposed measure seeks to institutionalize and strengthen political 
parties by instituting reforms in campaign financing and other measures. While 
this bill may not be the be-all and end-all solution to this political problem, it is an 
attempt to address this concern. 
Immediate approval of this bill is earnestly sought. 
(___)Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
STRENGTHENING THE POLITICAL PARTY SYSTEM, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Represenfafives of fhe Philippines in 
Congress assembled: 
Chapter I 
Declaration of Policy, Purposes and Coverage 
SECTION 1. Title. - This Act shall be known as “The Political Party 
Development Act of 2007. 
SEC 2. Declaration of Policy. - It is hereby declared a policy of the State 
to institutionalize and strengthen political parties as vital pillars of the country’s 
democratic system. Towards this end, the State shall institute reforms in 
campaign financing through effective and transparent mechanisms designed to 
level the playing field among all candidates and politicql parties during elections, 
and reduce opportunities for graft and corruption. As part of the State’s thrust to 
strengthen the political party system, it shall uphold party loyalty and adherence 
to the party’s ideological principles, platforms and programs. The State shall also 
institute measures to professionalize political parties, and make them viable 
instruments of development and good governance. 
SEC 3. Purposes. - This Act aims to: 
a) 
Institutionalize reforms in the financing of electoral campaigns, so as 
to promote accountability and transparency; 
Provide financial subsidies to political parties, to augment their 
expenditures for campaign purposes and for party development; 
Promote party loyalty and discipline; and 
Encourage and support continuing voters’ education and civic literacy 
programs through the political parties. 
b) 
c) 
d) 


SEC 4. Coverage. - This Act shall apply to National Political Parties duly 
registered with and certified to as such by the Commission on Elections. 
SEC 5. Definition of Terms. - The following terms as used in this Act 
“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 Commission 
based on a set of criteria provided under this Act. 
“Candidate” refers to any person aspiring for, or seeking an elective 
public office, duly nominated by a political party, aggrupation or 
coalition thereof, and who has filed a certificate of candidacy with 
the Commission. 
“Commission” refers to the Commission on Elections. 
“Campaign Contribution” refers to any form of donation to any 
candidate, political party, aggrupation 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. 
“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. 
“COA refers to the Commission on Audit. 
“Disclosure Requirement“ refers to the duty of all candidates and 
political parties, aggrupations 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, propeiy or any other form of material contribution to a 
candidate, political party, aggrupation or coalition thereof. 


"Donee" refers to any candidate, political party, aggrupation or 
coalition thereof, or any representative acting in their behalf or 
interest, to whom money, property, or any other form of contribution 
k made. 
"Fund" refers to the State Subsidy Fund established under this Act. 
"National Political Party" refers to a political party or an organized 
group of persons duly registered with the Commission, 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. 
"Political Turncoatism" refers to the change of political party 
affiliation by any candidate whether or not elected, from the time he 
was first nominated; Provided, That the term shall not include any 
such change in party affiliation before the effectivity of this Act; 
Provided further that, political turncoatism shall not apply in any of 
the following instances: 
1. Abolition, merger or coalition of political parties where a 
0 
j) 
k) 
1) 
candidate is a registered member thereof; 
2. Expulsion in writing, of the registered member from higher 
political party; Provided, That the cause for such does not 
constitute 
Political Opportunism. 
It 
includes 
political 
opportunism or 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. 
m) 
"State Subsidy Fund" refers to the fund for party development and 
campaign activities of accredited national political parties under this 
Act. 
n) 
"Voluntary Contribution" refers to the contributions to candidates 
and/or political parties, aggrupations or coalitions thereof, from 
persons, natural or juridical, allowed under existing laws. 
Chapter 2 
lnstitutionaliza tion of Political Parties 
SEC 6. Registration as a National Political Party. - Any organized 
group of persons seeking registration as a national political party may file with the 
Commission a verified petition attaching thereto its constitution and by-laws, 
platform, principles, policies and general program of government, a verified list of 
its national officials, members of the executive board, or its equivalent, and the 
heads of its regional, provincial, and city chapters, and such other relevant 
information as may be required by the Commission. The Commission shall, after 
due notice and hearing, resolve the petition within ten (IO) days from the date it is 
submitted for decision. National Political Parties already registered as such with 


the Coinmission prior to the effectivity of this Act are not required to register 
anew. 
SEC 7. Policy Agenda and Program of Governance. - National Political 
Parties are mandated to craft a clear policy agenda and program of governance 
consistent with their party philosophy and ideals. The members of the National 
Political Party shall endeavor to act in accordance with the defined party platform 
and pursue programs to fulfill party commitments. 
SEC 8. Selection of Candidates. - The selection process for candidates 
of National Political Parties shall be democratized through the adoption of a 
process that is fair, open and transparent, and which promotes participation of 
choice from the members of the party. Towards this end, every National Political 
Party is mandated to formulate a merit system on nomination and selection of 
candidates who must be members of the party. 
Every National Political Party shall submit to the Commission its rules 
governing the merit system on nomination and selection of candidates not later 
than one hundred and eighty (180) days before the election day following the 
effectivity of this Act. 
Any aggrieved member of an Accredited National Political Party may file a 
verified complaint to its Grievance and Arbitration Committee not later than ten 
( I O )  days after the party convention, for violation of the rules governing the merit 
system on the nomination and selection of candidates. 
Every National Political Party may hold conventions or meetings to 
nominate their official candidates not earlier than fifteen (15) days before the start 
of election period and shall submit to the Commission not later than the start of 
the election period the names of the officials of the party authorized to nominate 
their official candidates. 
No political party shall nominate more candidates than the number of 
persons required to be voted for in an elective position nor shall any candidate be 
allowed to accept nominations from more than one registered political party, 
except in cases of aggrupations or coalitions thereof. Nominations made in 
violation hereof shall be denied due course by the Commission and the 
candidates concerned shall be considered independent candidates. 
The nominations of candidates of political parties shall be filed not later 
than the last day for filing of the certificates of candidacy as determined by the 
Commission. 
SEC 9. Contents of Certificate Of Nomination. - The certificate of 
nomination shall state that the person issuing the nomination is the duly 
authorized representative of the political party as provided for in its constitution 
and by-laws, that the person named therein is the official candidate of the party 
for the elective position stated, and that he has accepted said nomination. 
The certificate of nomination shall be subscribed under oath by the duly 
authorized representative of the political party. 


SEC I O .  Limits on Voluntary Contributions. - Voluntary contributions to 
any National Political Party shall be limited to the following maximum amounts: 
a) 
b) 
Up to One Hundred Thousand Pesos (PlO0,OOO.OO) from a natural 
person; and, 
Up to One Million Pesos (Pl,OOO,OOO.OO) from a juridical person 
allowed to make a voluntary contribution under existing laws. 
Any contribution in cash or in kind to any candidate or political party for 
campaign purposes, duly reported to the Commission, shall be exempt from 
donor's tax. 
SEC 11. Voluntary Contributions to Party; How Made. - Voluntary 
contribution to a political party shall be deposited by the contributor to the 
account of the party with any reputable bank accredited by the Commission, 
within six (6) months prior to the campaign period but not later than fifteen (15) 
days before the day of election. The accredited banks shall issue a 
corresponding receipt to the contributor on the amount deposited, and shall 
submit to the Commission a statement of account of every political party with 
deposits. 
The Commission shall cause the publication of the account of all political 
parties in any newspaper of general circulation within a reasonable time as 
determined by the Commission. 
SEC 12. Changing Political Party Affiliation. - Any member of a 
National Political Party who changes party affiliation after being nominated by the 
party shall be deemed to have committed Political Turncoatism. 
SEC 13. Penalties for Political Turncoatism. - Political Turncoats shall 
be: 
a) 
Deemed to have forfeited his / her office, if he / she is an 
elected official who changes political party affiliation during 
hislher term of office; 
Disqualified from running for any elective position in the next 
succeeding election immediately following the act of changing 
political party affiliation; 
Prohibited from being appointed or from holding any position in 
any public or government office for three (3) years after the 
expiration of hidher current term; 
Prohibited from assuming any executive or administrative 
position in hislher new political party; and 
Directed to refund any and all amounts he/she received from his 
I her political party, plus a twenty five percent (25%) surcharge 
thereon: 
b) 
c) 
d) 
e) 
SEC 14. Petition for Disqualification. - Any citizen of voting age, or any 
candidate, political party, aggrupation or coalition thereof, may file with the 
Commission, upon the filing of the certificate of candidacy and before 
proclamation, a petition to disqualify a candidate on the ground of political 
turncoatism as defined in this Act. 


SEC 15. Authorized Expenses of National Political Parties. - The 
amount that a National Political Party may spend for every election campaign 
shall be Eleven Pesos (P11.00) for every voter currently registered in the 
constituency or constituencies where it has official candidate. The Commission 
shall adjust the authorized amount based on the Consumer Price Index every 
three (3) years following the effectivity of this Act. 
Chapter 3 
Sfafe Subsidy Fund 
SEC 16. Esfablishmenf of a Sfafe Subsidy Fund. - There is hereby 
established a State Subsidy Fund, which shall be used to augment the operating 
funds of the Accredited National Political Parties. The fund shall be used directly 
and exclusively for the following purposes: 
a) Party development; and 
b) Campaign expenditures. 
SEC 17. Allowa&le Party Development Activities. - Due to the vital role 
played by the National Political Parties in the country's political development, and 
in order to promote professionalism and accountability among members of the 
parties, the following party development activities shall be allowed to be funded 
out of the State Subsidy Fund: 
a) Party administration, recruitment and civic education: 
b) Research and policy development; 
c) Education and training of members; 
d) Institution building and constituent outreach program; and 
e) Other reasonable logistical and operational expenses that are essential 
in strengthening the party. 
SEC 18. Allowable Campaign Expenditures. - The Accredited National 
Political Parties are authorized to use the subsidy given to them only for the 
following campaign activities: 
Operating expenses of the party, which may include hiring of 
personnel, professional secretariat, setting up of headquarters, and 
other relevant electoral expenditures 
Traveling expenses of the candidates and support personnel in the 
course of the campaign, and for personal expenses incident 
thereto; 
Information dissemination and advocacy campaigns of the political 
party; 
Production and distribution of electoral paraphernalia and other 
propaganda materials; and 
Other expenditures under Section 102 of the Omnibus Election 
Code. 


SEC 19. Accreditation. - A National Political Party eligible in accordance 
with Section 20 hereof, and which desires to be entitled to the rights and 
privileges as recipient of the subsidy provided for under this Act, may apply for 
accreditation by the Commission, under such rules and regulations as the 
Commission shall prescribe consistent with the provisions of this Act. 
SEC 20. Criteria for Eligibility. - The Commission shall accredit National 
Political Parties eligible to receive subsidy from the State Subsidy Fund, based 
on the following general criteria: 
a) 
Political representation, consisting of the incumbent president, 
vice president, members of congress, governors, vice- 
governors, city/municipal mayors and vice-mayors; 
Organizational strength and mobilization capability, which 
may include the number of political chapters, organizations 
nationwide, and number of active and permanent members of 
the party: 
Performance and track record of the party, which may include 
the number of years of existence of the party as well as the 
ability of the party to field a complete slate of candidates in the 
immediately preceding national elections. 
b) 
c) 
SEC 21. Effects of Accreditation. - A duly accredited National Political 
Party shall be entitled to the rights and privileges accorded under this Act. 
Likewise, the accredited national political party shall be subject to the regulations 
set forth in this Act and its implementing rules as prescribed by the Commission. 
SEC 22. Distribution of the Fund. - The total amount of State Subsidy 
Fund released annually shall be distributed as follows: 
a) 
Five percent (So/,) of the fund shall accrue to the Commission, to 
be used exclusively for monitoring purposes and the conduct of 
information dissemination campaigns and voters' education; 
Forty five percent (45%) 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; 
Fiffy percent (50%) 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. 
The share of each of the Accredited National Political Parties in 
the State Subsidy Fund shall be released only upon proof that 
the concerned party has raised an amount equal to its share in 
the Fund from voluntary contributions; 


Provided, That the party concerned that fails to raise an amount 
equal to its share in the fund shall only receive an amount from 
its share in the fund equal to the amount raised from voluntary 
contributions; Provided further, That the balance, if any, from the 
share in the Fund of the party concerned shall be forfeited and 
revetted to the general funds of the Government. 
SEC 23. Schedule of Releases from the Fund. - For purposes of this 
Act, all releases from the State Subsidy Fund during a non-election year shall be 
used exclusively for party development activities. Funds released during an 
election year shall be divided as follows: seventy five percent (75%) shall be 
used for campaign expenditures, and twenty five percent (25%) for party 
development activities. 
The Commission shall inform the Accredited National Political Parties of 
the schedule of releases as well as the amount of the subsidy allocated at the 
start of every fiscal year. 
SEC 24. Management of the Subsidy, -The Accredited National Political 
Parties availing of the subsidy shall maintain a separate financial account for the 
funds used to finance campaign activities and party development, respectively. 
Every Accredited National Political Party shall submit to the Commission a 
detailed program of activities as well as the breakdown of expenditures drawn 
from the Fund by the end of December of every fiscal year. 
No Accredited National Political Party shall be allowed to use the subsidy 
for purposes other than those indicated in this Act. 
Chapter 4 
Disclosures and Performance Monitoring 
SEC 25. Audit of the Fund. - The COA shall examine the financial 
reports of the Accredited National Political Parties on their use of the State 
Subsidy Fund. 
Voluntary contributions to any Accredited National Political Party shall be 
accounted for separately under a different set of books of accounts, which shall 
be open to inspection by the COA. 
SEC 26. Party Ethics. - Accredited National Political Parties shall institute 
internal control mechanisms to promote accountability and transparency. 
Accredited National Political Parties shall likewise develop and enforce an 
internal code of conduct and ethical standards for its party members to uphold 
the values and standards of public life, and to formulate and implement 
disciplinary procedures for party members: Provided, That said program for 
internal controls, ethical standards and disciplinary procedures shall all be duly 
submitted to the Commission and made available to the wblic. 
No political party shall select and nominate a candidate who has been 
convicted for any criminal offense. 


SEC 27. Full Disclosure. - The officials of every Accredited National 
Political Party shall submit a sworn statement of their assets and liabilities to the 
Commission which shall be made available to the public. All Accredited National 
Political Parties and their candidates shall also be required to make a public- 
disclosure of all contributions as well as expenditures incurred for the use of the 
State Subsidy Fund. 
All these disclosures shall be made through the official website of the 
Commission and in a newspaper of general circulation. 
SEC 28. Ofher Reports. 
The following shall be reported by the 
Accredited National Political Parties and their candidates: 
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: 
A full report of expenditures and receipts incurred during the 
campaign, including those which were drawn from the State 
Subsidy Fund, if any; 
Post-election disclosure statements as required under existing 
laws, which must be submitted to the Commission within thirty (30) 
days after election day. Late submissions shall be subject to a fine 
in such amounts as may be determined by the Commission; and 
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 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. 
SEC 29. Failure to Comply With Disclosure and Reporting 
Requirements.- Failure of the Accredited National Political Party to comply with 
the with the provisions of this Act will result in its disqualification from receiving its 
share in the State Subsidy Fund, which shall revert to the general funds of the 
Government, and forfeiture of all the rights and privileges to which it would have 
been entitled under this Act. 
SEC 30. Performance Monitoring and Reporting System. - The 
Commission and the COA shall jointly design and implement, in consultation with 
political parties, aggrupations or coalitions thereof, accredited citizens' arms, the 
private sector and non-governmental organizations, and government agencies, 
an integrated political party development and campaign subsidy performance 
monitoring and reporting system. The performance and monitoring system shall 
identify, define and operationalize a system of performance indicators and 
measures for party development and campaign subsidy deployment. 
The 
Commission and the COA shall, based on the results of the system, publish and 
disseminate annual reports on the development of political parties that have 
received subsidies and on the distribution, use and results of the campaign 
subsidies provided to political parties. 


SEC 31. Publication and Dissemination of the Political Party 
Development and Campaign Subsidy Performance Reports. - The political 
party development and campaign subsidy performance reports shall be 
submitted to both houses of the Congress of the Philippines not later than June 
30 of every year, and shall be made available to the public via the internet and 
mass media as a guide for the citizenry in evaluating political parties for the 
purpose of participating in their program of activities, and in supporting, affiliating 
with, or joining them. 
Chapter 5 
Miscellaneous Provisions 
SEC 32. Punishable Acts. - The following acts shall be punishable: 
a) 
Misuse of funds received by National Political Parties both from the 
State Subsidy Fund and from voluntary contributions; 
The giving of voluntary contributions which go beyond the allowable 
limits set under this Act and other existing laws; 
Inability to account for all incoming contributions from whatever 
source: 
b) 
c) 
d) 
Failure to submit pre-election as well as post-election disclosure 
statements to the Commission 
False reporting or any misrepresentation in the financial statement 
reports. 
e) 
SEC 33. Penalties. - a ) Any candidate or official of any National Political 
Party who violates any provision of this Act shall be punished with imprisonment 
of not less than six (6) years but not more than twelve (12) years, or a fine 
ranging from Fifty Thousand Pesos (P50,OOO.OO) to Five Hundred Thousand 
Pesos (PSOO,OOO), or both. He shall, likewise, be disqualified to hold public 
office. Any National Political Party that violates any provision of this Act shall pay 
a fine of not less than one hundred thousand pesos (P100,000.00) but not more 
than One Million Pesos (Pl,OOO,OOO.OO); 
b) Any National Political Party that fails to comply with any of the 
documentary requirements set forth in this Act shall be subject to administrative 
sanctions by the Commission, which shall include temporary or permanent 
cancellation of the party's registration, as well as payment of fines consistent with 
existing laws and regulations. 
SEC 34. Appropriations. - The amount of Three Hundred Fifty Million 
Pesos (P 350,000,000.00) is hereby appropriated out of the funds of the National 
Treasury not otherwise appropriated, effective immediately upon the approval of 
this Act. Every year thereafter, and not later than January 15 of every year; there 
shall be appropriated the amount Three Hundred Fifty Million Pesos 
(P350,000,000.00). All such amounts appropriated pursuant to this Act shall go 
to the State Subsidy Fund, which shall be administered by the Commission. 


The Commission and the Department of Budget and Management (DBM) 
shall promulgate guidelines to facilitate the release of the funds to every 
accredited national political party. 
SEC 35. Lead Agency. - The Commission is hereby mandated as the 
independent regulatory agency charged with administering and enforcing the 
provisions of the Act. 
SEC 36. Applicability. -The provisions of Batas Pambansa Blg. 881, as 
amended, otherwise known as the "Omnibus Election Code of the Philippines" 
and other election laws not inconsistent with this Act shall apply suppletorily. 
SEC 37. Rules and Regulations. - The Commission shall promulgate the 
necessary rules and regulations to effectively implement the provisions of this 
Act. 
SEC 38. Repealing Clause. - All laws, orders, issuances, rules and 
regulations or parts thereof inconsistent with the provisions of this Act are hereby 
repealed, modified or amended accordingly. 
SEC 39. Separability Clause. - If any part of this Act is held invalid or 
unconstitutional, the other parts or provisions thereof not affected thereby shall 
remain valid and effective. 
SEC 40. fffecfivify. - This Act shall take effect fifteen (15) days from its 
publication in least two (2) national newspapers of general circulation. 
Approved,