SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
SENATE BILL NO. 1099 n 
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'13 
JUL 24 
IJ 4 :3B 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Over the years the Philippine political party system has been the 
subject of numerous studies, deliberations and debates. It has been 
characterized as patronage and personality oriented instead of interest 
articulation and aggregation, leadership formation, socialization and 
mobilization. There has been a clamor to institute reforms in the 
Philippine political parties however the bills have never ripened into a 
law. By this end, there is a continuing necessity to pass a legislative 
measure to restructure and reform the political parties to resolve the 
issues of campaign financing, state subsidy to political parties, ban on 
party switching and turn-coatism, and strengthening citizen-parties 
linkages, to attain a mature and stable democracy. 
This proposed measure seeks to systematize and regulate the 
financing of electoral campaigns by setting the limits of voluntary 
contributions to any political party, strict registration, accreditation and 
membership in political parties, to promote transparency and fairness. 
Furthermore, it introduces the State Subsidy Fund, which will be used 
exclusively for party development and campaign expenditures of the 
accredited political parties. 
This bill also seeks to punish political 
butterflies and turncoats to espouse party allegiance and integrity. 
Particularly, it gives any citizen of voting age to institute a 
disqualification case against turncoats. 
In view of the foregoing considerations, earl~ passage of this bill is 
earnestly sought. 
.. (j C;;- " 
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
SENATE BILL NO. 
'13 
JUL ,'4 
i) 4 :38 
1099 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT 
STRENGTHENING THE POLITICAL PARTY SYSTEM, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
CHAPTER 1 
DECLARATION OF POLICY, PURPOSES AND COVERAGE 
SECTION 1. 
Title,- This Act shall be known as "The Political 
Party Development Act oj 2013", 
SEC, 2. Declaration of Policy. - It is hereby declared a policy of 
the State to institutionalize and strengthen political parties as vital 
pillars of the country's democratic system. Towards this end, the State 
shall institute reforms in campaign financing through effective and 
transparent mechanisms designed to level the playing field among all 
candidates 
and 
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, platform and 
programs. The State shall also institute measures to professionalize 
political parties and make them viable instruments of development and 
good governance. 


SEC. 3. Purposes. - This Act aims to: 
(a) 
Institutionalize reforms in the financing of electoral 
campaigns, so as to promote accountability and transparency; 
(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 
(d) Encourage and support continuing voter's education and 
civic literacy programs through the political parties. 
SEC. 4. Coverage.. 
-
This Act shall apply to political parties 
duly registered with and certified to as such by the Commission on 
Elections (COMELEC). 
SEC. 5. Definition of Terms. - The following tenus as used in 
this Act shall be defined as follows: 
(a) 
Accredited political party refers to a political party 
qualified to receive subsidy for party development and campaign 
purposes, accredited for this purpose by the COMELEC based on a 
set of criteria provided for under this Act. 
(b) 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 COMELEC. 
(c) Commission refers to the COMELEC. 
(d) 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 who allowed their use for 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 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 elections. It includes the use of offIce space and 
facilities personally owned by the candidate, the monetary value of 
which shall be assessed based on the market rates prevailing in a 
particular area. 
(1) COA refers to the Commission on Audit. 
(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 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 form of material 
contribution to a candidate, political party, aggrupation or 
coalition thereof. 
(i) 
Donee refers to any candidate, 
political 
party, 
aggrupation or ·coa:lition thereof or any representative acting on 
their behalf or interest, to whom money, property or any other 
form of contributions were made. 
Gl Fund refers to the State Subsidy Fund established under 
this Act. 
(k) Member of a party is a natural person of good standing in 
a political party who complied with the requirements of party 
membership, including the payment of membership dues. 
(I) Political party refers to a political party, party-list or an 
organized group of persons duly registered with the Commission, 
pursuing or advocating platform, principles and policies for the 


general conduct of government and which nominates and supports 
its members as candidates for public office. 
(m) Political turncoatism refers to the change of political 
party affiliation by an elected official during one's term, except 
within six (6) months prior to the end of the term: Provided, 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; and 
(2) Expulsion of the elected official in writing from 
one's political party: Provided, that the cause for such does 
not constitute political opportunism. 
Political opportunism 
includes any act of a party member constituting disloyalty to 
the party or regular non-adherence to the party's ideological 
principles, platform and programs, as determined by the 
party in accordance with its constitution and bylaws. 
(n) State Subsidy Fund refers to the fund for party 
development and campaign activities of accredited political parties 
under this Act. 
(0) Voluntary contributions refer to the contributions to 
candidates 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 Political Party.· Any organized group 
of persons seeking registration as a political party may file with the 
Commission a verified petition attaching thereto its constitution and 
bylaws, platform, principles, policies and general program of government, 
a verified list of its national officials, members of the executive board, or 
its equivalent, and the heads of its regional, provincial and city chapters, 
and such other relevant information as may be required by the 
Commission. 


The Commission shall, after due notice and hearing, resolve the 
petition within ten (10) days from the date it is submitted for decision. 
Political. parties already registered as such with the Commission 
prior to the effectivity of this Act are not required to register anew but are 
required to submit their intent to continue participating in elections 
within a period of six (6) months after the enactment of this law. 
SEC. 7. Policy Agenda and Program of Governance. - 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 political party shall endeavor to act in accordance with 
the defined party platform and pursue programs to fulfill party 
commitments. 
SEC. 8. Membership in a Political Party. - A person becomes a 
member of a political party upon application duly signed, filed and 
accepted by the party, and upon compliance with the basic membership 
requirements of the party, including the regular payment of membership 
dues. 
SEC. 9. 
Selection of Candidates. - The selection process for 
candidates of political parties shall be democratized through the 
adoption of a process that is fair, open and transparent. 
Every political party is mandated to formulate a system on 
the nomination and selection of candidates, in which all party 
members are involved. Every political party shall submit to the 
Commission its rules governing the system on the nomination and 
selection of candidates not later than one hundred eighty (180) days 
before the election day following the effectivity of this Act. 
Any aggrieved member of an accredited political party may 
file a verified complaint to its Grievance and Arbitration Committee not 
later than ten (10) days after the party convention, for violation of the 
rules governing the system on the nomination and selection of 


candidates. The aggrieved party has the right to appeal to the 
Commission. Upon finding violation of the system, the Commission shall 
revert the grievance to the concerned political party. If the political party 
does not comply with the order of the Commission, the said party shall 
be disqualified from participating in the elections. 
Every political party must hold conventions to nominate their 
official candidates not earlier than sixty (60) days before the start of 
the campaign 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 person required to be voted for in an elective position nor 
shall any candidate be allowed to accept nominations from more than 
one (1) 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 politic8l parties shall be filed not later than 
the last day for filing of the certificates of candidacy as determined 
by the Commission. 
SEC. 10. 
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 bylaws; that the person 
named therein is the official candidate of the party for the elective 
position stated; and that he has accepted the said nomination. The 
certificate of nomination shall be subscribed under oath by the duly 
authorized representative of the political party. 
SEC. 11. 
Limits on Voluntary Contributions. - Voluntary 
contributions to any political party shall be limited to the following 
maximum amounts: 


(a) Up to One million pesos (P1,OOO,OOO.OO) from a natural 
person and up to Ten million pesos (PlO,OOO,OOO.OO) from a 
juridical person is allowed to make a voluntary contribution under 
existing laws; and 
(b) Any contribution in cash or in kind to any political 
party for campaign purposes, duly reported to the Commission 
in accordance with Section 13 of Republic Act No. 7166, shall be 
exempt from the donor's tax. 
No foreign national or entity shall be allowed to give 
contributions to any political party. 
SEC. 12. 
Voluntary Contributions to Party; How Made. -
Voluntary contributions to a political party shall be deposited by the 
contributor to the account of the party with any reputable bank 
accredited by the Commission at any time 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 five (5) days before the elections. 
SEC. 13. Political Turncoatism. 
Any elected official of a 
political party who changes party affiliation, after being nominated by the 
party, shall be deemed to have committed political turncoatism, 
except within six (6) months prior to elections. 
SEC. 14. 
Penalties 
for 
Political Turncoatism.· Political 
turncoats shall be: 
(a) 
Deemed to have forfeited their elective office, if they 
change their political party affiliation, except within six (6) months 
prior to elections; 
(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 the current term/ office; 
(d) 
Prohibited 
from 
assuming 
any 
executive 
or 
administrative position in the new political party; and 
(e) 
Directed to refund any and all amounts received from 
one's former political party, plus a twenty-five percent (25%) 
surcharge thereon. 
SEC. 15. Petition for Disqualification. -
Any citizen of voting 
age, or any candidate, political party, aggrupation or coalition thereof, 
may file with the Commission, within fifteen (15) days from the filing of 
the certificate of candidacy and before proclamation, a petition to 
disqualify a candidate on the ground of political turncoatism as defined 
in this Act. 
SEC. 16. Authorized Expenses of National Political Parties 
and Candidates. -
The amount that a political party and a candidate 
may spend for every election campaign shall be Twenty pesos (P20.00) for 
every voter currently registered in the constituency or constituencies of 
candidacy. The Commission shall adjust the authorized amount based 
on the consumer price index (CPI) every three (3) years following the 
effectivity of this Act. 
CHAPTER III 
STATE SUBSIDY FUND 
SEC. 17. 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. 


SEC. 18. Allowable Party Development Activities.· Due to the 
vital role played by the 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: 
and 
(a) Party administration, recruitment and civic education; 
(b) Research and policy development; 
(c) Education and training of members; 
(d) Institution building and constituent outreach program; 
(e) 
Other reasonable logistical and operational expenses 
those are essential in strengthening the party. 
SEC. 19. Allowable Campaign Expenditures. -
The accredited 
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 the 
hiring of personnel, professional secretariat, setting up of 
headquarters and other relevant electoral expenditures; 
(b) 
Traveling expenses of the candidates and support 
personnel in the course of the campaigns, 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 as allowed under Section 102 
on 
Lawful Expenditures of the Omnibus Election Code. 
SEC. 20. Accreditation. - A political party eligible in accordance 
with Section 21 hereof, and which desires to be entitled to the rights and 
privileges as recipient of the subsidy provided for under this Act, 
may apply for accreditation by the Commission, under such rules 
and regulations as the Commission shall prescribe consistent with the 
provisions of this Act. 


SEC. 21. Criteria for Eligibility .. 
The Commission shall 
accredIt political parties eligible to receive subsidy from the State 
Subsidy Fund based on the following general criteria: 
(a) 
Political representation, consisting of the incumbent 
President, Vice President, Members of Congress, Governors and 
City Mayors; 
(b) 
Organizational strength and mobilization capability, 
which may include the number of political chapters, organizations 
nationwide and number of permanent members of the party paying 
their dues; and 
(c) 
Performance and track record of the party, which may 
include its performance in the past elections and its ability to 
field candidates in the coming elections. 
SEC. 22. Effects of Accreditation.-
A duly accredited political 
party shall be entitled to the rights and privileges accorded under this 
Act. Likewise, the accredited national political party shall be subject to 
the regulations set forth in this Act and its implementing rules as 
prescribed by the Commission. 
SEC. 23. Distribution of the Fund. - The total amount of the 
State Subsidy Fund released annually shall be distributed as follows: 
(a) 
Five percent (5%) 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) Thirty percent 
(30%) 
of 
the 
fund 
shall 
be 
proportionately and ratably distributed to accredited political 
parties represented in the Senate based on the number of seats 
obtained in the most recent general elections; and 
(c) 
Sixty·five percent (65%) 
of the fund shall be 
proportionately and ratably distributed to accredited 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 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 
membership dues and 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 raised from its share in 
the fund equal to the amount raised from membership dues and 
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 fund of the government. 
SEC. 24. Schedule of Releases from the Fund.,. For purposes 
of this Act, all releases from the State Subsidy Fund during a nonelection 
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 perce.nt (25%) for. party development activities. The Commission 
shall inform the accredited political parties of the schedule of releases 
as well as the amount of the subsidy allocated at the start of every 
fiscal year. 
SEC. 25. 
Management of the 
Subsidy. -
The accredited 
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 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 political party shall be 
allowed to use the subsidy for purposes other than those indicated in 
this Act. 
CHAPTER IV 
DISCLOSURES AND PERFORMANCE MONITORING 
SEC. 26. Audit of the State Subsidy Fund.· The COA shall 
examine the financial reports of the accredited political parties on their 
use of the State Subsidy Fund. Membership dues and voluntary 


contributions to any accredited political party shall be accounted for 
separately under a different set of books of accounts, which shall be open 
to inspection by the COA. 
SEC. 27. 
Party 
Ethics.· 
Accredited political parties shall 
institute internal control mechanisms to promote accountability and 
transparency. Accredited 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 the said program for internal controls, ethical standards 
and disciplinary procedures shall 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 by final judgment for any 
criminal offense. 
SEC. 28. 
Full Disclosure.· The officials of every accredited 
political party shall submit a sworn statement of their assets and 
liabilities 
to 
the Commission which shall be made available to the 
public at least six (6) months before elections. All accredited political 
parties and their candidates shall also be required to submit with the 
Commission and make a public disclosure of all contributions as well as 
expenditures incurred for the use of the State Subsidy Fund thirty (30) 
days after the elections. All these disclosures shall be made through the 
official website of the Commission and published in a newspaper of 
general circulation. 
SEC. 29. Other Reports. " The following shall be reported by the 
accredited political parties and their candidates: 
(a) The amount of contfibutions for the elections, the date of 
receipt by the bank or by the duly authorized representative of the 
party and the full name and exact address of the person, whether 
natural or juridical, from whom the contribution was received; 
(b) A full report of expenditures and receipts incurred 
during the campaign, including those which were drawn from the 
State Subsidy Fund, if any; 


(c) 
Post,election disclosure statements as required under 
existing laws, which must be submitted to the Commission 
within thirty (30) days after election day. Late submissions shall 
be penalized with 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. 30. 
Failure 
to 
Comply 
with 
Disclosure 
and 
Reporting Requirements. -
Failure of the accredited political party to 
comply with the provisions of this Act will result in its disqualification 
from receiving its share in the State Subsidy Fund. The said unused 
funds shall revert to the General Fund of the National Treasury, and all 
the rights and privileges to which the 
party would have been entitled under this Act shall be forfeited. 
SEC. 31. Performance Monitoring and Reporting System.-
The Commission and the COA shall jointly design and implement, in 
consultation with political parties, aggrupations or coalitions thereof, 
accredited citizens' arms, the private sector and nongovernmental 
organizations, and government agencies, an integrated political party 
development and campaign subsidy performance monitoring and 
reporting system. The performance and monitoring system shall 
identify, 
define 
and 
operationalize 
a 
system 
of performance 
indicators and measures for 
party development and campaign 
subsidy deployment. 
The Commission and the COA shall, based on the results of the 
system, publish and disseminate annual reports on the development of 
political parties that have received subsidies and on the distribution, use 
and results of the campaign subsidies provided to political parties. 


SEC. 32. 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 the Senate and the House of 
Representatives 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 V 
MISCELLANEOUS PROVISIONS 
SEC. 33. 
Punishable Acts. 
punishable: 
The following acts shall be 
(a) Misuse of funds received by political parties, both from 
the State Subsidy Fund and from voluntary contributions; 
(b) Giving of voluntary contributions that goes 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 preelection as well as post"election 
disclosure statements to the Commission; and 
(e) False reporting or any misrepresentation in the financial 
statement reports. 
SEC. 34. Penalties. - (a) Any candidate or official of any 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 One 
hundred 
thousand pesos 
(PlOO,OOO.OO) 
to Five hundred thousand pesos (P500,000.00), 
or 
both. He shall likewise be disqualified to hold public office. Any political 
party that violates any provision of this Act shall pay a fine of not less 
than Five hundred thousand pesos (P500,000.00) but not more than Five 
million pesos (P5,000,000.00). (b) Any political party that fails to comply 


with any of the documentary requirements set forth in this Act shall be 
subject to administrative sanctions by the Commission, which shall 
include temporary or permanent cancellation of the party's registration 
as well as payment of fines consistent with existing laws and regulations. 
SEC. 35. Appropriations.-
The amount necessary for 
the 
implementation of the provisions of this Act shall be included in the 
annual General Appropriations Act. 
SEC. 36. Lead Agency. - The Commission is hereby mandated as 
the independent regulatory agency charged with administering and 
enforcing the provisions of this Act. 
SEC. 37. 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. 38. Rules and Regulations. -
The Commission shall 
promulgate the necessary rules and regulations to effectively implement 
the provisions of this Act. 
SEC. 39. 
Separability Clause.· If any part of this Act is held 
invalid or unconstitutional, the other parts or provisions hereof which 
are not affected thereby shall remain valid and effective. 
SEC. 40. 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. 41. Effectivity Clause. -
This Act shall take effect fifteen 
(15) days after its publication in at least two (2) national newspapers 
of general circulation. 
Approved,