SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PlIILIPPINES ) 
First Regular Session 
) 
'13 
jliL 
SENATE 
Introduced by Senator Antonio "Sonny" . F. Trillan=-e.:.:s:.cIV~~~~ __ ~~_ 
EXPLANATORY NOTE 
An issue paper released by the Friedrich Ebert Stifftung aptly enumerates the inhereht flaws of 
the country's political party system, to wit: the lack of accountability and transparency in party 
financing and expenditures; political turncoatism; and patronage culture of political parties based 
on financial contributions. l In furtherance of said observations, a separate study by the same 
Institute warns that: "[IJf the political party system (mal-)functions in such a way, apathy, 
mIstrust or even fi'ustration among citizens may spread, thus endangering the gains of a 
democratization process. It is clear that this is a serious danger to a democratic system - making 
it one oflhe major challenges of Philippine politics today. ,,2 
Cognizant of the aforesaid political situation, this measure seeks to enhance the quality of our 
democratic system by reforming our current political party system. 
This bill seeks to: 
• 
institutionalize and strengthen political parties in the country by introducing reforms in 
campaign financing and providing financial subsidies to political parties to augment their 
expenditures for campaign; 
• 
provide sanctions against any member of a national political party who changes party 
affiliation after being nominated by the political party otherwise known as political 
turncoats; 
. 
• 
exempt voluntary contributions from any person, subject to a certain cap, from the 
payment of donor's tax, and punish the giving of voluntary contributions beyond the 
allowable limits set by law; 
• 
create a State Subsidy Fund to augment the operating funds of accredited national parties. 
It is hoped that the enactment of this measure shall institutionalize and strengthen political 
parties as vital pillars of the country's democratic system. 
In view of the foregoing, passage of this measure is earnestly sought. 
ANTONIO "SONNY" If. TRILLANES IV 
Senator 
I Int'onmltion retrieved from h!!pJ/www fe~ ()rg.ph/l1lcdia/unloads/docuIl1entsh~~ue07 PoP201O dec09 pdf on 6/25/2013. 
1 Information retrieved from httpillibran'.ics de/pdf .. flicslbuerosJphIimpmen/07131.pdf on 6/25/2013. 
-
1 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHTLIl']'INES ) 
First Regular Session 
) 
SENATE 
<, 
j 
S. NO. _ .• 
_\_t~ __ 
_ 
'Y:.~ 
------------~--~~----------~--~--~--------------
Intro(}uce(} by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
STRENTHENING 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: 
1 
CHAPTER 1 
2 
DECLARATION OF POLICY, PURPOSES, AND COVERAGE 
3 
SECTION 1. Title. - This Act shall be known as "The Political Party Development Act 
4 
0/2013". 
5 
SEC. 2. Declaration of Policy. - It is hereby declared a policy 
I 
of the 
I 
State to 
6 
institutionalize and strengthen political parties as vital pillars of the country's democratic system. 
7 
Towards this end, the State shall institute reforms in campaign financing through effective and 
8 
transparent mechanisms designed to level the playing field among all candidates and political 
9 
parties during elections and reduce opportunities for graft and corruption. As part of the State's 
10 
thrust to siTengthen the political party system, it shall uphold party loyalty and adherence to the 
11 
party's ideological principles, platform, and programs. The State shall also institute measures to 
12 
professionalize political parties and make them viable instruments of development and good 
13 
governance. 
14 
SEC. 3. Purposes. - This Act aims to: 
15 
(a) 
Institutionalize reforms in the financing of electoral campaigns, so as to promote 
16 
accountability and transparency; 
17 
(b) 
Provide financial subsidies to political parties, to augment their expenditures for 
18 
campaign purposes and for part development; 
1 


; 
1 
(e) 
Promote party loyalty and discipline; and 
2 
(d) 
Encourage and support continuing voter's education and civic literacy programs 
3 
through the political parties. 
4 
SEC. 4. Coverage.- This Act shall apply to political parties duly registered with and 
5 
certified to as such by the Commission on Elections (COMELEC). 
6 
SEC. 5. Definition of Terms. - The following terms as used in this Act shall be defined as 
7 
follows: 
8 
(a) 
Accredited political party refers to a political party qualified to receive subsidy 
9 
for party development and campaign purposes and accredited for this purpose by the COMELEC 
10 
based on a set of criteria provided for under this Act. 
11 
(b) 
Candidate refers to any person aspiring for or seeking an elective public office, 
12 
duly nominated by a political party, aggrupation or coalition thereof, and who has filed' a 
13 
certificate of candidacy with the COMELEC. 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
(c) 
(d) 
Commission refers to the COMELEC. 
Campaign contribution refers 10 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 froID 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 who allowed lheir use for 
I 
free, the monetary value of which shall be assessed based on market rates prevailing in a 
particular area. 
(e) 
Campaign expenditure refers to any type of expense incurred, regardless of 
26 
source, amount and purpose, that relates, directly or indirectly, to the conduct of an electoral 
27 
campaign. It includes all payments of money or anything of value, or a contract, promise or 
28 
agreement to spend, for the purpose of influencing the results of the elections. It includes the use 
2 


• 
1 
of office space and facilities personally owned by the candidate, the monetary value of which 
2 
shaH be assessed based on the market rates prevailing in a particular area. 
3 
4 
(f) 
(g) 
eGA refers to the Commission on Audit 
Disclosure requirement refers to the duty of all candidates and political parties, 
5 
aggrupations or coalitions thereof to reveal the details of campaign contributions received by 
6 
them and the expenditures made on account thereof For accredited political parties, it includes 
7 
expenditures and disposition of party development and campaign monies given to them as their 
8 
share in the State Subsidy Fund established under this Act 
9 
(h) 
Donor refers to any person, natural or juridical, who contributes money, property 
10 
or any other fonn of material contribution to a candidate, political party, aggrupation or coalition 
11 
thereof 
I 
12 
(i) 
Donee refers to any candidate, pOlitical party, aggrupation or coalitioA thereof or 
13 
any representative acting on their behalf or interest, to whom money, property or any other form 
14 
of contributions were made. 
15 
16 
(j) 
(k) 
Fund refers to the State Subsidy Fund established under this Act 
Member of a party is a natural person of good standing in a political party who 
17 
complied with the requirements of party membership, including the payment of membership 
18 
dues. 
19 
(I) 
Political party refers to a political party, party-list or an organized group of 
20 
persons duly registered with the Commission, pursuing or advocating platform, principles and 
21 
policies for the general conduct of government and which nominates and supports its members as 
22 
candidates for public office. 
23 
(m) 
Political turncoatism refers to the change of political party affiliation by an 
24 
elected official during one's tenn, except within six (6) months prior to the end of the term: 
25 
Provided, That political turncoatism shall not apply in any of the following instances: 
26 
(I) 
Abolition, merger or coalition of political parties where a candidate is a 
27 
registered member thereof; and 
28 
(2) 
Expulsion of the elected official in writing from on.e's political party: 
29 
PrOVIded, Tbat the cause for such does not constitute political opportunism. Political 
3 


1 
opportunism includes any act of a party member constituting disloyalty to the party or regular 
2 
non-adherence to the party's ideological principles, platform and programs, as detennined by tbe 
3 
party in accordance with its constitution and bylaws. 
4 
State Suhsidy Fund refers to the fund for party development and campaign activities of 
5 
accredited political parties under this Act. 
6 
(n) 
Voluntary contributIOns refer to the contributions to candidates or political 
7 
parties, aggrupations or coalitions thereof from persons, natural or juridical, allowed under 
8 
existing laws. 
9 
10 
CHAPTER II 
11 
INSTITUTIONALIZATION OF POLITICAL PARTIES 
12 
SEC. 6. Registration as a Political Party . .. Any organized group of persons seeking 
13 
registration as a political party may file with the Commission a verified petition attaching thereto 
14 
its constitution and bylaws, platform, principles, policies and general program of government, a 
15 
verified list of its national officials, members of the executive board, or its equivalent, and the 
16 
heads of its regional, provincial and city chapters, and such other relevant information as may be 
17 
required by the Commission. 
18 
The Commissio~ shall, after due notice and hearing, resolve the petition witJ1in ten (lO) 
19 
days from the date it is submitted for decision. 
20 
Political parties already registered as such with the Commission prior to the effectivity of 
21 
this Act are not required to register anew but are required to submit their intent to continue 
22 
participating in elections within a period of six (6) months after the enactment of this law. 
23 
SEC. 7. Policy Agenda and Program of Governance. - Political parties are mandated to 
24 
craft a clear policy agenda and program of governance consistent with their party philosophy and 
25 
ideals. The members of the political party shall endeavor to act in accordance with the defined 
26 
party platfonn and pursue programs to fulfill party commitments. 
4 


1 
SEC. 8. Membership in a Political Party. - A person becomes a member of a political 
2 
pariy upon application duly signed, filed and accepted by the party, and upon compliance with 
3 
the basic membership requirements of the party, including the regular payment of membership 
4 
dues. 
5 
SEC. 9. Selection oj' Candidates. - The selection process for candidates of political 
6 
parties shall be democratized through the adoption of a process that is fair, open and transparent. 
7 
Every political party is mandated to formulate a system on the nomination and selection 
8 
of candidates, in which all party members are involved. Every political party shall sllbmit to the 
9 
Commission its rules governing the system on the nomination and selection of candidates not 
10 
later than one hundred eighty (180) days before the election day following the effectivity of this 
11 
Act. 
12 
Any aggrieved member of an accredited political party may file a verified complaint 
13 
before its Grievance and Arbitration Committee not later than ten (10) days after the party 
14 
convention, for violation of the rules governing the system on the nomination and selection of 
15 
candidates. The agb'Tieved party has the right to appeal to the Commission. Upon finding 
16 
violation of the system, the Commission shall revert the b'Tievance to the concerned political 
17 
party. If the political party does not comply with the order of the Commission, the said party 
18 
shall be disqualified from participating in the elections. 
19 
Every political party must hold conventions to nominate their official candidates not 
20 
earlier than sixty (60) days before the start of the campaign period and shall submit to the 
21 
Commission not later than the start of the election period the names of the officials of the party 
22 
authorized to nominate their official candidates. 
23 
No political party shall nominate more candidates than the number of persons required to 
24 
be voted for in an elective position nor shall any candidate be allowed to accept nominations 
25 
from more than one (1) registered politician party, except in cases of aggrupations or coalitions 
26 
thereof. Nominations made in violation hereof shall be denied due course by the Commission 
, 
I 
27 
and the candidates concerned shall be considered independent candidates. The nominations of 
5 


1 
candidates of political parties shall be filed not later than the last day for filing of the certificates 
2 
of candidacy as detennined by the Commission. 
3 
SEC. 10. Contents of Certificate of NominatIOn. .. The certificate of nomination shall 
4 
state that the person issuing the nomination is the duly authorized representative of the political 
5 
party as provided for in its constitution and bylaws; that the person named therein is the official 
6 
candidate of the party for the elective position stated; and that he has accepted the said 
7 
nomination. The certificate of nomination shall be subscribed under oath by the duly authorized 
8 
representative of the political party. 
9 
SEC. 11. Limits on Voluntary Contributions. - Voluntary contributions to any political 
10 
party shall be limited to the following maximum amounts: 
11 
(a) 
Up to One million pesos (Pl,OOO,OOO.OO) from a natural person and up to Ten 
12 
million pesos (P 10,000,00.00) from a juridical person who/which allowed to make a voluntary 
13 
contribution under existing laws; and 
14 
(b) 
Any contribution in cash or in kind to any political party for campaign purposes, 
15 
duly reported to the Commission in accordance with Section 13 of Republic Act No. 7166, shall 
16 
be exempt from the donor's tax. 
17 
No foreign national or entity shall be allowed to give contributions to any political party. 
18 
19 
SEC. 12. Voluntary ContributIOns to Party; How Made. - Voluntary contributions to a 
20 
political party shall be deposited by the contributor to the account of the party with any reputable 
21 
bank accredited by the Commission at any time but not later than fifteen (15) days before the day 
22 
of election. The accredited banks shall issue a corresponding receipt to the contributor on the 
23 
amount deposited, and shall submit to the Commission a statement of account of every political 
24 
party with deposits. The Commission shall cause the publication of the account of all political 
25 
parties in any newspaper of general circulation within five (5) days before the elections. 
26 
SEC. 13. Political Turncoatism. _. Any elected official of a political party who changes 
27 
party affiliation, after being nominated by the party, shall be deemed to have committed political 
28 
tUfncoatism, except within six (6) months prior to elections. 
6 


1 
SEC. 14. Penalties jiJr Political Turncoarisl11. - Political turncoats shall be: 
2 
(a) 
Deemed to have forfeited their elective office, if they change their political party 
3 
affiliation, except within six (6) months prior to elections; 
4 
(b) 
Disqualified from running for any elective position in the next succeeding election 
5 
immediately following the act of changing political party affiliation; 
6 
(c) 
Prohibited from being appointed or from holding any position in any public or 
7 
government office for three (3) years after the expiration of the current tenn/office; 
8 
(d) 
Prohibited from assuming any executive or administrative position in the new 
9 
political party; and 
10 
(e) 
Directed to refund any and all amounts received from his former political party, 
11 
plus a twenty-five percent (25%) surcharge thereon. 
12 
SEC. 15. Petition for Disqualification. ... Any citizen of voting age, or any candidate, 
13 
political party, aggrupation or coalition thereof, may file with the Commission, within fifteen 
14 
(15) days from the filing of the certificate of candidacy and before proclamation, a petition to 
15 
disqualify a candidate on the ground of political turncoatism as defined in this Act. 
16 
SEC. 16. Authorized Expenses of National Political Parties and Candidates. _. The 
17 
amount that a political party and a candidate may spend for every election campaign shall be 
18 
Twenty pesos (P20.00) for every voter currently registered in the constituency or constituencies 
19 
of candidacy. The Commission shall adjust the authorized amount ba~cd on the consumer price 
20 
index (Cpr) evelY three (3) years following the effectivity of this Act. 
21 
22 
CHAPTER III 
23 
ST ATE SUBSIDY FUND 
24 
SEC. 17. Establishment of a State Subsidy Fund. .- There is hereby established a State 
25 
Subsidy Fund which shall be used to augment the operating funds of the accredited national 
i 
26 
political parties. The fund shall be lIsed directly and exclusively for the following purposes: 
, 
27 
(a) Party development; and 
28 
(b) Campaign expenditures. 
7 


1 
SEC. 18. Allowable Party Development Activities. -
Due to the vital role played by the 
2 
political parties in the country's political development and in order to promote professionalism 
3 
and accountability among members of the parties, the following party development activities 
4 
shall be allowed to be funded out of the State Subsidy Fund: 
5 
Party administration, recruitment and civic education; 
6 
Research and policy development; 
7 
Education and training of members; 
8 
Institution building and constituent outreach program; and 
9 
(a) 
(b) 
(c) 
(d) 
(e) 
Other reasonable logistical and operational expenses that are essential m 
10 
strengthening the party. 
11 
SEC. 19. Allowable Campaign Expenditures. - The accredited political parties are 
12 
authorized to use the subsidy given to them only for the following campaign activities: 
13 
(a) 
Operating expenses of the party which may include the hiring 01 
personnel, 
14 
professional secretariat, setting up of headquarters and other relevant electoral expend,itures; 
15 
(b) 
Traveling expenses of the candidates and support personnel in the course of the 
16 
campaigns, and for personal expenses incident thereto; 
17 
Infonnation dissemination and advocacy campaigns of the political party; 
18 
(c) 
(d) 
Production and distribution of electoral paraphernalia and other propaganda 
19 
materials; and 
20 
(e) 
Other expenditures as allowed under Section 102 on Lawful Expenditures of the 
21 
Omnibus Election Code. 
22 
SEC. 20. Accreditation. --. A political party eligible in accordance with Section 21 hereof, 
23 
and which desires to be entitled to the rights and privileges as recipient of the subsidy provided 
24 
for under this Act, may apply jor accreditation by the Commission, under such rules and 
25 
regulations as the Commission shall prescribe consistent with the provisions of this Act. 
26 
SEC.21. Criteria jiJr Eligibility. --
The Commission shall accredit political parties 
27 
eligible to receive subsidy from the State Subsidy Fund based on the following general criteria: 
8 


1 
(a) 
Political representation, consisting of the incumbent President, Vice President, 
2 
Members of Congress, Governors and City Mayors; 
3 
(b) 
Organizational strength and mobilization capability, which may include the 
, 
4 
number of political chapters, organizations nationwide and number of penn anent mewbers of the 
5 
party paying their dues; and 
6 
(c) 
Performance and track record of the party, which may include its performance in 
7 
the past elections and its ability to field candidates in the coming elections. 
8 
SEC. 22. Effects of Accreditation. - A duly accredited political party shall be entitled to 
9 
the rights and privileges accorded under this Act. Likewise, the accredited national political party 
10 
shall be subject to the regulations set forth in this Act and its implementing rules as prescribed by 
11 
the Commission. 
12 
SEC. 23. Distribution of the Fund. .- The total amount of the State Subsidy Fund released 
13 
annually shall be distributed as follows: 
14 
(al 
Five percent (5%) of the fund shall accrue to the Commission, to be used 
15 
ex.clusively for monitoring purposes and the conduct of information dissemination campaigns 
16 
and voters' education; 
17 
(b) 
Thirty percent (30%) of the fund shall be proportionately and ratably distributed 
18 
to accredited political parties represented in the Senate based on the number of seats obtained in 
19 
the most recent general elections; and 
20 
(c) 
Sixty-five percent (65%) of the fund shall be proportionately and ratably 
21 
distributed to accredited political parties represented in the House of Representatives based on 
I 
22 
the number of seats obtained in the most recent general elections. 
23 
The share of each of the accredited political parties in the State Subsidy Fund shall be 
24 
released only upon proof that the concerned party has raised an amount equal to its share in the 
25 
fund from membership dues and voluntary contributions: Provided, That the party concerned that 
26 
fails to raise an amount equal to its share in the fund shall only receive an amount equal to the 
27 
amount raised from membership dues and voluntary contributions: Provided, further, That the 
9 


1 
balance, if any, from the share in the fund of the party concerned shall be forfeited and reverted 
2 
to the general fund of the government. 
3 
SEC. 24. Schedule (if Releases jrom the Fund. - For purposes of this Act, all releases 
4 
from the State Subsidy Fund during a nonelection year shal1 be used exclusively for party 
5 
development activities. Funds released during an election year shall be divided as follows: 
6 
seventy-five percent (75%) shall be used for campaign expenditures, and twenty-five percent 
7 
(25%) for party development activities. The Commission shalI infonn the accredited political 
8 
parties of the schedule of releases as well as the amount of the subsidy allocated at the start of 
9 
every fiscal year. 
10 
SEC. 25. Management of the Subsidy.·· The accredited political parties availing of the 
11 
subsidy shall maintain a separate financial account for the funds used to financ~ campaign 
12 
activities and party development, respectively. 
13 
Every accredited political party shall submit to the Commission a detailed program of 
14 
activities as well as the breakdown of expenditures drawn from the fund by the end of December 
15 
of every fiscal year. No accredited political party shall be allowed to use the subsidy for purposes 
16 
other than those indicated in this Act. 
17 
18 
CHAPTER IV 
19 
DISCLOSURES AND PERFORMANCE MOlNITORING 
20 
SEC. 26. Audit of the State Suhsidy Fund. - The COA shall examine the financial reports 
21 
of the accredited political parties on their use of the State Subsidy Fund. Membership dues and 
22 
voluntary contributions to any accredited political party shall be accounted for separately under a 
23 
different set of books of accounts, which shall be open to inspection by the COA. 
24 
SEC. 27. Party Ethics. - Accredited political parties shall institute internal control 
25 
mechanisms to promote accountability and transparency. Accredited political parties shall 
26 
likewise develop and enforce an internal code of conduct and ethical standards for its party 
10 


I 
1 
members to uphold the values and standards of public life, and to formulate and 'implement 
I 
2 
disciplinary procedures for party members: Provided, That the said program for internal controls, 
3 
ethical standards and disciplinary procedures shall be duly submitted to the Commission and 
4 
made available to the public. No political party shall select and nominate a candidate who has 
5 
been convicted by final judgment for any criminal offense. 
6 
SEC. 28. Full Disclosure . .. The officials of every accredited political party shall submit a 
7 
sworn statement of their assets and liabilities to the Commission which shall be made available 
8 
to the public at least six (6) months before elections, All accredited political parties and their 
9 
candidates shall also be required to submit with the Commission and make a public disclosure of 
10 
all contributions as well as expenditures incurred for the use ofthe State Subsidy Fund thirty (30) 
11 
days after the elections. All these disclosures shall be made through the official website of the 
12 
Commission and published in a newspaper of general circulation. 
13 
SEC. 29. Other Reports. -- The following shall be reported by the accredited political 
14 
parties and their candidates: 
15 
(a) 
The amount of contributions for the elections, the date of receipt by the bank or 
16 
by the duly authorized representative of the party and the full name and exact address of the 
17 
person, whether natural or juridical, from whom the contribution was received; 
18 
(b) 
A full report of expenditures and receipts incurred during the campaign, including 
19 
those which were drawn from the State Subsidy Fund, if any; 
20 
(c) 
I 
Post-election disclosure statements as required under existing laws, which must 
21 
be submitted to the Commission within thirty (30) days after election day. Late submissions 
22 
shall be penalized with a fine in such amounts as may be detennined by the Commission; and 
23 
(d) 
Detailed breakdown of expenditures for the party development activities charged 
24 
against the State Subsidy Fund. The financial report covering the party development activities 
2S 
shall be submitted annually, at the end of every fiscal year. The subsidy for the succeeding year 
26 
will not be released without the submission of the said report covering the preceding year. 
11 


1 
SEC. 30. Failure (0 romply with Disclosure and Reporting Requirements. - Failure of 
2 
the accredited political party to comply with the provisions of this Act will result in its 
3 
disqualification from receiving its share in the State Subsidy Fund. The said unused funds shall 
4 
revert to the General Fund of the National Treasury, and all the rights and privileges to which the 
5 
party would have been entitled under this Act shall be forfeited. 
6 
SEC. 31. Perjbrmance Monitoring and Reporting System . . ~ The Commission and the 
7 
COA shall jointly design and implement, in consultation with political parties, aggrupations or 
8 
coalitions thereof, accredited citizens' arms, the private sector and nongovernmental 
, 
) 
9 
organizations, and other government agencies, an integrated political party development and 
, 
10 
campaign subsidy performance monitoring and reporting system. The performance and 
11 
monitoring system shall identify, define and operationalize a system of performance indicators 
12 
and measures for party development and campaign subsidy deployment. 
13 
The Commission and the COA shall, based on the results of the system, publish and 
14 
disseminate annual reports on the development of political parties that have received subsidies 
15 
and on the distribution, use and results of the campaign subsidies provided to political parties. 
16 
SEC. 32. Publication and Dissemination of the Political Party Development and 
17 
Campaign Subsidy Performance Reports . ... The political party development and campaign 
18 
subsidy performance reports shall be submitted to both the Senate and the House of 
19 
Representatives of the Congress of the Philippincs not later than June 30 of every year, and shall 
20 
be made available to the public via the internet and mass media as a guide for the citizenry in 
21 
evaluating political parties for the purpose of participating in their program of activities, and in 
22 
supporting, affiliating with, or joining them. 
23 
CHAPTER V 
24 
MISCELLANEOUS PROVISIONS 
25 
SEC. 33. Punishable Acts.~ The following acts shall be punishable: 
12 


1 
(a) 
Misuse of funds received by political parties, both from the State Subsidy Fund 
2 
and from voluntary contributions; 
3 
(b) 
Giving of voltmtary contributions that goes beyond the allowable limits set under 
4 
this Act and other existing laws; 
Inability to account for all incoming contributions from whatever source; 
5 
6 
(c) 
(d) 
Failure to submit pre-election as well as post-election disclosure statements to the 
7 
Commission; and 
8 
(e) 
False reporting or any misrepresentation in the financial statement reports. 
9 
SEC. 34. Penalties. -
10 
(a) 
Any candidate or official of any political party who violates any provision of this 
11 
Act shall be punished with imprisonment of not less than six (6) years but not more than twelve 
12 
(12) years or a fine ranging from One hundred thousand pesos (Pl00,OOO.OO) to Five hundred 
13 
thousand pesos (P500,OOO.OO), or both, at the discretion of the court. He shall likewise be 
14 
disqualified to hold public office. Any political party that violates any provision of this Act shall 
15 
pay a fine of not less than Five hundred thousand pesos (P500,OOO.OO) but not more than Five 
16 
million pesos (P5,OOO,OOO.OO). 
17 
(b) 
Any political party that fails to comply with any of the documentary re,quirements 
18 
set forth in this Act shall be subject to administrative sanctions by the Commission, which shall 
19 
include temporary or penuanent cancellation of the party's registration as well as payment of 
20 
fines consistent with existing laws and regulations. 
21 
SEC. 35. Appropriations. 
The amount necessary for the implementation of the 
22 
provisions of this Act shall be included in the annual General Appropriations Act. 
23 
SEC. 36. Lead Agency. - The Commission is hereby mandated as the independent 
24 
regulatory agency charged with administering and enforcing the provisions of this Act. 
2S 
SEC. 37. Applicability -- The provisions of Batas Pambansa BIg. 881, as amended, 
26 
otherwise known as the "Omnibus Election Code ()f the Philippines", and other election laws not 
27 
inconsistent with this Act shall apply suppletoriiy. 
13 


• 
1 
SEC. 38. Rules and RegulatIOns. - The Commission shall promulgate the necessary rules 
2 
and regulations to effectively implement the provisions ofthis Act. 
3 
SEC. 39. Separability Clause. -- If any part of this Act is held invalid or unconstitutional, 
4 
the other parts or provisions hereof which are not affected thereby shall remain valid and 
5 
effective. 
6 
SEC. 40. Repealing Clause. -- All laws, orders, issuances, rules and regulatic;ms or parts 
7 
thereof inconsistent with the provisions of this Act are hereby repealed, modified or amended 
8 
accordingly. 
9 
SEC. 41. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
10 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
14