FIFTEENTH CONGRESS OFTHE 
REPUBLIC OFTHE PHILIPPINES 
First Regular Session 
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SENATE 
S.B. No. 51 
Introduced by Senator Edgardo J. Angara 
EXPLANATORY NOTE 
Political parties playa 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 [rom the 
concept of traditional politics, but unfortunately they have not been successful because 'of 
lack oflegal 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 
ldeological 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 ofa 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 
or 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 ni\tional 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 tem1 within which they were elected. 
In general, the proposed bill hopes to transfonn 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 m the political party 
system, the passage of this bill is urgently sought. 
E~!~RA 
Senator 


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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
[!:' 1 
S.B. No. 
OJ 
'"' 
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()FrtCE ()f ": ~ " ';f( r:t.E:;<r.MV 
Introduced by Senator Edgardo J. Angara 
AN ACT 
STRENGTHENING THE POLITICAL PARTY SYSTEM, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted in the Senate and House of Representatives of the Philippines in the 
Congress assembled: 
Chapter I 
Declaration of Policy, Purposes and Coverage 
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SECTION. 1. Title. - This Act shall be known as "The Political Party 
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Development Act of 2010. " 
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SEC. 2. Declaration of Policy. - It is hereby declared a policy of the State to 
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institutionalize and strengthen political parties as vital pillars of the country's democratic 
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system. Towards this end, the State shall ins~itute reforms in campaign financing through 
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effective and transparent mechanisms designed to level the playing field among all 
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candidates and political parties during elections, and ,educe opportunities for graft and 
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corruption. As part of the State's thrust to strengthen the political party system, it shall 
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uphold party loyalty and adherence to the party's ideological principles, platfOlms and 
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programs. The State shall also institute measures to professionalize political parties, and 
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make them viable instruments of development and good governance. 
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SEC. 3. Purposes. - This Act aims to: 
(a) Institutionalize reforms in the financing of electoral campmgns, so as to 
promote accountability and transparency; 
(b) Provide financial subsidies to political parties, to augment their expenditures for 
campaign purposes and for party development; 


(c) Promote party loyalty and discipline; and 
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(d) Encourage and support continuing voters' education and civic literacy programs 
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through the political parties. 
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SEC. 4. Coverage. - This Act shall apply to National Political Parties duly 
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registered with and certified to as such by tbe Commission on Elections. 
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SEC. 5. Definition of Terms. - The following terms as used in s Act shall mean-
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(a) "Accredited National Political Party" refers to a National Political Party 
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qualified to receive subsidy for party development and campaign purposes, 
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accredited for this purpose by the Commission based on a set of criteria 
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provided under this Act. 
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(b) "Candidate" refers to any person aspiring for, or seeking an elective public 
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office, duly nominated by a political party, aggrupation or coalition thereof, and 
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who has filed a certificate of candidacy with the Commission. 
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(c) "Commission" refers to the Commission on Elections. 
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(d) "Campaign Contribution" refers to any form of donation to any candidate, 
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political party, aggrupation or coalition thereof, given before, during or after the 
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holding of elections. It includes any gift, donation, SUbscription, loan, advance 
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or deposit of money or anything of value, or those arising from a contract, 
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pledge or agreement to contribute, made for the purpose of influencing the 
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results of the elections, but shall not include services rendered without 
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compensation by individuals volunteering a portion or all of their time in behalf 
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of a candidate or political party. It also includes the use of office space, 
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facilities, equipment, office supplies and other materials and fixtures voluntarily 
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donated by other persons, or allowed their use for free, the monetary value of 
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which shall be assessed based on market rates prevailing in a particular area. 
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(e) "Campaign Expenditure" refers to any type of expense incurred, regardless of 
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source, amount and purpose, that relates, directly or indirectly, to the conduct of 
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an electoral campaign. It includes all payments of money or anything of value, 
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or a contract, promise or agreement to spend, for the purpose of influencing the 
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results of the election. It includes the use of office space and facilities 
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personally owned by the candidate, the monetary value of the use of which 
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shall be assessed based on the market rates prevailing in a particular area. 
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(f) "COA" refers to the Commission on Audit. 
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(g) "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. 
(h) "Donor" refers to any person, natural or juridical, who contributes money, 
property or any other fmID of material contribution to a candidate, political 
party, aggrupation or coalition thereof. 
(i) "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 fonn of contribution k made. 
(j) "Fund" refers to the State Subsidy Fund established under this Act. 
(k) "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 platfonn, principles and 
policies for the general conduct of government and which, as the most 
immediate means of securing their adoption imd implementation, regularly 
nominates and supports its members as candidates for public office. 
(I) "Political TUrI1coatism" 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 candidate 
is a registered member thereof; 
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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, platfonns, and 
programs, as determined by the party in accordance with its 
constitution and by-laws. 
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(m) "State Subsidy Fund" refers to the fund for party development and campaign 
activities of accredited national political parties under this Act. 
(n) "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. 
Chapter II 
Institutionalization of Political Parties 
SEC. 6. Registration as a National Political Party. - Any organized group 
of persons seeking registration as a national political patiy may file with the 
Commission a verified petition attaching thereto its constitution and by-laws, 
platform, principles, policies and general 37 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 (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, 
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 fonnulate 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 
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one hundred and eighty (180) days before the Election Day following the 
effectivity ofthis 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 Politlcal 
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. 
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 dne 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. 10. Limits on Voluntary Contributions. - Voluntary contributions to 
any National Political Party shall be limited to the following maximum amounts: 
(a) Up to One HWldred Thousand Pesos (PlOO,OO.OO) from a natural person; 
and Up to One Million Pesos (PI,OOO,OOO.OO) 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. 
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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. 
be: 
SEC. 13. Penalties for Political Turncoatism. - Political Turncoats shall 
(a) Deemed to have forfeited hislher office, if he/she is an elected official 
who changes political party affiliation during his/her tenn of office; 
(b) Disqualified from running for any elective position in the next 
succeeding election immediately following the act of changing political 
party affiliation; 
(c) 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 tenn; 
(d) Prohibited from assuming any executive or administrative position in 
his/her new political party; and 
(e) Directed to refund any and all amounts he/she received from his/her 
political party, plus a twenty five percent (25%) surcharge thereon; 
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. 
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SEC. 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 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 
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) Paliy development; and 
(b) Campaign expenditures. 
SEC. 17. Allowable Par(v Development Activities. - Due to the vital role 
played by the National Political Pmiies 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 ofrnembers; 
(d) Institution building and constituent ontreach 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: 
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Cal Operating expenses of the party, which may include hiring of 
personnel, professional secretariat, setting up of headquarters, and other 
relevant electoral expenditures; 
(b 1 Traveling expenses of the candidates and support personnel in the 
course of the campaign, and for personal expenses incident thereto; 
(c) Information dissemination and advocacy campaigns of the political 
party; 
(d) Production and distribution of electoral paraphernalia and other 
propaganda materials; and 
(e) 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 niles 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: 
(al Political representation, consisting of the incumbent president, vice 
president, members of congress, governors, vice-governors, 24 city/ 
municipal mayors and vice-mayors; 
(b) 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; 
(c) Performance and track record of the party, which may include the 
number of years of existence of the p~rty as well as the ability of the 
party to field a complete slate of candidates in the immediately 
preceding national elections. 
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 niles as prescribed by the Commission. 
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SEC. 22. Distribution of the Fund. - The total amount of State Subsidy 
Fund released annually shall be distributed as follows: 
(a) Five percent (Sol) 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; 
(b) 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; 
(c) 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. 
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 amolmt of the subsidy allocated at the start of every fiscal 
year. 
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SEC. 24. Managemel1t 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 FUl1d. - The eOA shaH 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 e~A. 
SEC. 26. Party Ethics. - Accredited National Political Parties shall institute 
intemal control mechanisms to promote accountability and transparency. 
Accredited National Political Parties shall likewise develop and enforce an intemal 
code of conduct and ethical standards for its party members to uphold the values 
and standards of public life, and to fommlate and implement disciplinary 
procedures for party members: Provided that, said program for intemal 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. 
SEC. 27. Full Disclosure. - The officials of every Accredited National 
Political Party shall submit a swom 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. 
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SEC. 28. Other Reports. The following shall be reported by the Accredited 
National Political Parties and their candidates: 
(al 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 expenditnres and receipts incurred dnring 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 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 
(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 
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 forfeitnre 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' anus, the 
private sector and non-governmental organizations, and government agencies, an 
integrated po Ii tical 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. 
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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 intemet 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 
Miscellaneons 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; 
(b) The giving of voluntary contributions which go beyond the allowable 
limits set under this Act and other existing laws; 
(c) Inability to account for all incoming contributions from whatever 
source; 
(d) Failure to submit pre-election as well as post-election disclosure 
statements to the Commission; and 
( e) False reporting or any misrepresentation in the financial statement 
reports. 
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 (PSO,OOO) 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) but not more than one million pesos 
(Pl,OOO,OOO); (b) Any National Political Party that fails to comply with any of the 
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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 (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. 
SEC. 35. Lead Agency. - The Commission is hereby mandated as the 
indepel1dent regulatory agency charged with administering and enforcing the 
provisions of the Act. 
SEC. 36. Applicability. -The provisions of Batas Pambansa Big. 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 mles 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. 
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SEC. 40. Effectivity. - 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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