FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
] 
OF THE PHILIPPINES 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
Political parties play a vital role in the country's quest for 
political and economic development. The political party system in the 
country is basically confined to personalities rather than issues and 
political platform. There have been many attempts to reform the 
orientation of our political parties in the past so as to veer way from the 
concept of traditional politics, but unfortunately they have not been 
successful because of lack of legal institutional framework to govern 
system of political parties. 
Our history tells us that political parties in the Philippines are 
normally used only as political vehicles to win an election. 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 this light that the Political Party Act should be enacted. It is 
imperative that political party system should be strengthened if we 
want to develop, achieve genuine political development 
and 
democratization. We have to enact laws to prevent the system of ward 
politics and political chameleons that we have today. 
A Party Development Fund shall be created to provide subsidy to 
political parties of national character for their operational expenses and 
party building activities not only for electoral campaign but also for 
their, developmental programs. These funds shall be appropriated in 
the national budget. 
A political party may qualify to receive a portion from the Party 
Development Fund if its national candidates garnered at least 15% of 
the popular vote in the most recent general elections. 
For their part, Political parties should institute internal control 
mechanisms within political parties to promote accountability and 
transparency. 
The bill also encourages the political parties to raise its funds c 
through Party Foundation to finance their activities so that they will 


develop their self-sufficiency and lessen their dependence on 
contributions from illegal sources. 
The bill envisions changing the norm of having political 
butterflies during and after the election period. It aims to give 
importance to party ideals and policy agenda rather than the political 
pragmatism and survival. The bill proposes that any member of the 
party wanting to change the party affiliation after being elected on that 
party’s ticket, should first resign from his elective position and must 
seek a fresh mandate from the electorate. Likewise, defecting persons 
cannot be appointed nor hold any position in any public office, till after 
the expiration of the term within which they were elected. 
In general, the proposed bill hopes to transform the Philippine 
political parties from personality-oriented to issue-oriented political 
organizations. Thus, we can provide our constituents with better brand 
of party politics. 
In view of the urgent need to address the irregularities in the 
political party system, the passage of this bill is urgently sought. 
EDGARDO J. ANGARA 
Senator 


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‘
 
FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
] 
OF THE PHILIPPINES 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
STRENGTHENING THE POLITICAL PARTY SYSTEM, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
Chapter I 
Declaration of Policy, Purposes and Coverage 
SECTION 1. Etle. - This Act shall be known as “The Political Party 
Development Act of 2007.” 
SECTION 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 
political 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 
SECTION 3. Purposes. - This Act aims to: 
(a) 
Institutionalize reforms in the financing of 
electoral 
campaigns, 
so 
as 
to 
promote 
accountability 
and 
transparency; 


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(b) 
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. 
(4 
(dl 
SECTION 4. Coverage. - This Act shall apply to National Political 
Parties duly registered with and certified to as such by the Commission 
on Elections. 
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SECTION 5. Definition of Terms. - The following terms as used in 
s Act shall mean - 
(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 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 
(b) 
(c) 
(d) 
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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. 
(e) 
(f) 
(h) 
“Donor” refers to any person, natural or juridical, who 
contributes money, property 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. 
c‘NatZonal 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 
(i) 
0) 
(k) 
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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: 
i. 
Abolition, merger or coalition of political parties where 
a candidate is a registered member thereof; 
Expulsion in writing, of the registered member from 
his/ her 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. 
“State Subsidy Fund” refers to the fund for party 
development and campaign activities of accredited national 
political parties under this Act. 
“Voluntary Contributions” refers to the contributions to 
candidates and/or 
political parties, 
aggrupations or 
coalitions thereof, from persons, natural or juridical, allowed 
under existing laws. 
.. 
11. 
Chapter I1 
Institutionalization of Political Parties 
SECTION 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 
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program of government, a verified list of its national officials, members of 
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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 (10) days from the date it is submitted for decision. 
National Political Parties already registered as such with the 
Commission prior to the effectivity of this Act are not required to register 
anew. 
SECTION 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. 
SECTION 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 (IO) 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 (1 5) 
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. 
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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. 
SECTION 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. 
SECTION 10. Limits on Voluntary Contributions. - Voluntary 
contributions to any National Political Party shall be limited to the 
following maximum amounts: 
(a) 
Up to One Hundred Thousand Pesos (P100, 00.00) from a 
natural person; and 
Up to One Million Pesos (Pl, 000, 000.00) from a juridical 
person is allowed to make a voluntary contribution under 
existing laws. 
(b) 
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. 
SECTION 11. Voluntary Contributions to Partg; 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 
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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. 
SECTION 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. 
SECTION 13. Penalties for Political Turncoatism. - Political 
Turncoats shall be: 
Deemed to have forfeited his/her office, if he/she is an 
elected official who changes political party affiliation during 
his/her 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 his/her current term; 
Prohibited from assuming any executive or administrative 
position in his/her new political party; and 
Directed to refund any and all amounts he/she received from 
his/her political party, plus a twenty five percent (25%) 
surcharge thereon; 
SECTION 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. 
SECTION 15. Authorized Expenses of National Pafitical 
Parties. - The amount that a National Political Party may spend for every 
election campaign shall be Eleven Pesos (P11.00) for every voter currently 
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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 followiflg the effectivity of 
this Act. 
Chapter 3 
State Subsidy Fund 
SEC 16. Establishment of a State 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. 
SECTION 17. Allowable 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) 
(b) 
Research and policy development; 
(c) 
(d) 
(e) 
Party administration, recruitment and civic education: 
Education and training of members; 
Institution building and constituent outreach program: and 
Other reasonable logistical and operational expenses that are 
essential in strengthening the party. 
SECTION 18. Allowable Campaign Expenditures. - The 
Accredited National Political Parties are authorized to use the subsidy 
given to them only for the following campaign activities: 
(a) 
Operating expenses of the party, which may include hiring of 
personnel, 
professional 
secretariat, 
setting 
up 
of 
headquarters, and other relevant electoral expenditures; 
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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. 
SECTION 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. 
SECTION 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: 
Political representation, consisting of the incumbent 
president, vice president, members of congress, governors, 
vice-governors, 24 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. 
SECTION 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. 
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SECTION 22. Distribution of the Fund. - The total amount of 
State Subsidy Fund released annually shall be distributed as follows: 
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; 
Fifty 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 
reverted to the general funds of the Government. 
SECTION 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. 
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SECTION 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 
SECTION 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. 
SECTION 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 public. No political party shall 
select and nominate a candidate who has been convicted for any criminal 
offense. 
SECTION 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 
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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. 
SECTION 28. Other 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. 
SECTION 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. 
SECTION 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, 


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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. 
SECTION 3 1. 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 
SECTION 32, Punishable Acts. - The following acts shall be 
punishable: 
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; 
Failure to submit pre-election as well as post-election 
disclosure statements to the Commission; and 
False reporting or any misrepresentation in the financial 
statement reports. 
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SECTION 33, Penaltges. - (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, 
000) to five hundred thousand pesos (P500,000), 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) but not more than one million 
pesos (P1 ,000,000); (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. 
SECTION 34. Appropriations. - The amount of Three Hundred 
Fifty Million Pesos (P350, 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. 
SECTION 35. Lead Agency. - The Commission is hereby 
mandated as the independent regulatory agency charged with 
administering and enforcing the provisions of the Act. 
SECTION 36. Applicability. -The provisions of Batas Pambansa 
Slg. 881, as amended, otherwise known as the “Omnibus Election Code 
ofthe Philippines,” and other election laws not inconsistent with this Act 
shall apply suppletorily. 
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SECTION 37. Rules and Regulations. - The Commission shall 
promulgate the necessary rules and regulations to effectively implement 
the provisions of this Act. 
SECTION 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 
SECTION 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. 
SECTION 40. Effectiz&y. - This Act shall take effect fifteen (15) 
days from its publication in least two (2) national newspapers of general 
circulation. 
Approved, 
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