THIRTEENTH CONGRESS OF THE REPUBLIC f 
OF THE PHILIPPINES 
f 
First Regular Session 
f 
Senate Bill No. 
Introduced by Senator Panfilo M. Lacson 
Explanatory Note 
The vesting of duties, responsibilities, 
and 
accountabilities in 
different government instrumentalities or agencies must necessarily be 
accompanied by the grant of provisions for the appropriation of reasonably 
adequate resources to ensure the effective discharge of their mandated 
powers and functions, Most often, the major part of these resources used by 
the different government offices are sourced from the annual General 
Appropriations Act. 
The Philippine National Police is one of those government agencies 
largely dependent upon the appropriation of budget passed by Congress. 
Unfortunately, it is not always that the legislature would approve sizable 
portion for the Philippine National Police (PNP). Obviously, the most 
disastrous result of a budget slash would be the shelving of a number of 
important PNP programs and projects especially those that are aimed 
towards the modernization and professionalization of the police force. To be 
able to effectively and efficiently perform its general responsibilities in 
enforcing penal laws and maintaining and controlling peace and order, the 
Philippine National Police needs more financial resources other than the 
annual budget appropriations approved by Congress. 
As such, this legislative measure seeking to establish a Philippine 
National Police Trust Fund for the exclusive use of the PNP to implement its 
priority programs and projects is being proposed. 
Among the salient provisions of this bill are the following: 
o 
o 
Establishment of a PNP Trust Fund to be generated from the funding 
sources enumerated in this proposed bill; 
Establishment of a Board of Trustees that shall manage and administer 
said PNP Trust Fund; and 
The power of the Chief of the PNP to avail of said Trust Fund without 
the need of securing prior clearance from any government agency or 
office and utilize the same for the exclusive use of the PNP in 
accordance with the purposes for which the said PNP Trust Fund was 
established as enumerated by this proposed bill. 
The immediate passage of this proposed legislative measure into law is 
earnestly sought. 
c. 
PA 
LACSON 
L)j 
ekat o r 


THIRTEENTH CONGRESS OF THE REPUBLIC 1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
Senate Bill No. 
Introduced by Senator Panfilo M. Lacson 
AN ACT 
ESTABLISHING A PHILIPPINE NATIONAL POLICE TRUST FUND 
TO BE UTILIZED FOR THE PNP PROGRAMS AND PROJECTS 
HEREIN SPECIFIED, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress Assem bled: 
SECTION 1. Title. - This Act shall be known as the "PNP Trust Fund 
Act". 
SEC. 2. Declaration ofpolicy. - It shall be the policy of the state to 
establish a highly efficient and competent police force which is national in 
scope and civilian in, character. 
To ensure the establishment of a truly professionalized Philippine 
National Police (PNP), it shall be the policy of the state to recognize the 
imperative need to provide for, and enhance existing, PNP programs and 
projects aimed towards the modernization of the police force. 
Likewise, it shall be the policy of the state to guarantee the efficacy 
of such PNP programs and projects by assuring the availability of funds 
necessary for their effective implementation. 
SEC. 3. Statement of Objectives. - This Act shall have the following 
objectives: 
(a)To establish a unified and consolidated PNP Trust Fund (PNPTF) to 
be generated from such sources as may be provided for in this Act; 
(b)To maintain a PNPTF that may be readily utilized by the Chief of the 
PNP in support of such PNP programs and projects enumerated; and 
(c)To create a Board of Trustee which shall manage and administer such 
PNPTF in accordance with the provisions of this Act, 
SEC. 4. Liberal Construction. - The provisions of this Act shall be 
liberally construed to effectuate the policy declared hereunder and the 
objectives stated herein. 
SEC. 5. Definition of Terms. - For purposes of this Act, the following 
definition of terms is hereby adopted: 
(a) PNP shall refer to the "Philippine National Police"; 
(b) PNPTF shall refer to the "Philippine National Police Trust Fund"; 
(c)Funding sources shall refer to such sources of funds as herein 
enumerated that will comprise the PNPTF; 


(d)Trust receipts shall include but not be limited to, the receipts from 
non-tax sources authorized by law, which are collected/received by a 
PNP unit in the exercise of its regulatory and statutory functions; 
(e) PNP Programs and projects shall refer to such modernization programs 
and projects to be undertaken by the Chief of the PNP which shall 
include 
but 
not 
be 
limited 
to, the following: Organizational 
Development; Human Resource Development, Doctrines Development, 
Equipment, Firearms, Mobility and Communications Development, 
and Infrastructure and Support System Development, as defined under 
this Act. 
SEC, 6. Establishment of Philippine National Trust Fund. - There 
shall be established a unified and consolidated Philippine National Police 
Trust Fund (PNPTF) which shall be generated from such funding sources as 
provided in this Act and which shall be utilized by the Chief of the PNP 
primarily for the implementation of such PNP programs and projects as 
herein enumerated. 
SEC. 7. Sources of Funds. - The Chief of the PNP is hereby 
authorized to establish a unified and consolidated trust fund to be known as 
the PNP Trust Fund, the funding sources of which shall include, but not be 
limited to, the following: 
(a)Trust receipts held as such by the PNP and generated from the fees 
and charges collected/received by different PNP units from the 
following income producing activities: 
1 .  Issuance of Security Agency Licenses; 
2. Issuance of Security Guard Licenses; 
3 .  Issuance of Firearms Licenses; 
4. Issuance of Permit to Carry Firearms Outside Residence; 
5. Issuance of Permits to purchase, store, import or transport 
explosives and explosive ingredients; 
6 .  Issuance of Motor Vehicle clearances; 
7. Issuance of Police Security clearances; 
8. Issuance of Police Station clearances; 
9. Imposition of fines by different PNP units as penalties for 
violations of PNP laws, rules and regulations; 
10. Issuance of clearances for motor vehicle engine being installed 
on motorized banca, fishing boats and other watercraft; and 
issuance of clearances for the transport of motor vehicle 
onboard domestic shipping vessels; 
1 1. Issuance of all other licenses, certificates, fines, penalties 
required by the PNP; 
12. Issuance of all other licenses, certificates, fines, penalties that 
may subsequently be required by law; and 
13. Testing and Analysis fees by the PNP Crime Laboratory. 
(b) Interest earnings generated from cash bonds; 
0 Donations from domestic or foreign public and private organizations 
or from concerned citizens: provided that the donations herein stated 
shall refer only to those granted to the PNP without any encumbrance; 
provided, further, that donations whether in cash or in kind, granted to 
the PNP for an intended purpose shall not be included in the PNPTF 
and shall be deemed automatically appropriated for such purpose(s) 
specified by the donor; Rental fees collected for the use of PNP 
premises, equipment and facilities; 


(d) Fees collected from public and private institutions by different PNP 
units for services rendered; 
(e) Fees collected from the government and private agency-participants in 
relation to the conduct of seminars, conferences and training 
programs; and 
(9 
Other funding sources as may subsequently be provided for by law. 
SEC. 8. Power to Create/Broaden Sources of Revenue. - The Chief of 
the PNP shall have the power to create additional and broaden the existing 
PNP sources of revenue including but not limited to, the levy of additional 
fees, charges and collection for issuances of other licenses, certificates, 
permits and the like which shall accrue exclusively to the PNPTF. 
The PNP shall have the power and authority to acquire, develop, lease, 
encumber, alienate, or otherwise dispose of such real and personal property 
held by it in its proprietary capacity and to apply their revenues and assets 
generated therefrom for the purposes herein enumerated. 
SEC. 
9. Remittance. - The funding sources herein enumerated as 
accruing to the PNPTF shall be deposited in full, as a combo account, only 
in such authorized government depository bank, without further requirement 
to remit the same to the National Treasury, The interest income therefrom 
shall accrue to the PNPTF. Income collected and accruing to the PNPTF 
shall bear the sub-responsibility code as may subsequently be provided. 
SEC. 10. Revolving Fund of the PNP Revenue Generating Offices 
(RGO). - All fees and charges collected by the different PNP offices shall 
accrue to the PNPTF: Provided, That any PNP RGO may, subject to the 
approval of the Chief of the PNP, utilize, twenty (20%) percent of its gross 
collection as revolving fund for a given period subject to the accepted 
accounting and auditing rules and regulations to support its direct cost of 
operation. 
SEC. 11. Disbursement. - Increments of, or the whole amount of the 
PNPTF shall be made available to the Chief of the PNP to fund such PNP 
programs and projects hereunder enumerated, Availment of the PNPTF by 
the Chief of the PNP shall be made only in such authorized government 
depository bank. Provided, That availment thereof shall not require any prior 
cleai-ance or approval from any other government agency. 
Payments out of the PNPTF shall be made solely in accordance with 
the purposes specified under this Act, subject to existing government 
accounting and auditing rules and regulations. 
SEC. 12. Multi-Year Contracts and other Contractual Arrangements. - 
Not withstanding any provision to the contrary, the Chief of the PNP may, 
taking into consideration the gross earnings of the PNPTF for the preceding 
year, enter into a multi-year contracts and other contractual arrangements in 
order to effect the purposes herein enumerated for which the PNPTF was 
created. 
SEC. 13. Forward Obligating Authority. - In entering into such multi- 
year contracts and other contractual arrangements, the Chief of the PNP has 
the power to exercise his forward obligatory authority: Provided, That the 
obligation to be incurred in any given calendar year shall in no case exceed 
twenty-five (25%) percent of the projected earnings of the PNPTF for such 
calendar year. 


SEC. 14. Purposes of the Philippine National Police Trust Fund 
(PNPTF). - The PNPTF shall be utilized by the Chief of the PNP to fund the 
following programs and projects: 
a. Organizational Development which shall include, but not be limited 
to, programs and projects that shall entail the re-restructuring and 
streamlining of PNP units and offices; avoid overlapping of functions; 
facilitate police deployment; and simplify police procedures; 
b. Human Resources Development which shall include, but shall not be 
limited 
to, 
programs 
and 
projects 
aimed 
towards 
manpower 
development, professional and career development; 
c. Doctrines Development which shall include, but shall not be limited 
to, programs and projects that shall generate, evaluate, consolidate 
and finalize organizational doctrines, as well as disseminate the same 
at all levels of unitdoffices; conduct periodic review through field 
application, testing and exercises to ensure effectivity thereof. 
d. Equipment/Firearms/Mobility/Communications Development 
which 
shall include, but shall not be limited to, programs and projects aimed 
towards the development of police capabilities to immediately and 
effectively respond to current and future threats to peace and order. 
e. Information Technology Development which shall include, but shall 
not be limited to, programs and projects aimed towards the 
enhancement 
of 
information 
dissemination 
within 
the 
police 
organization to ensure that the point of decision is as close as possible 
to the point of action. 
f, Infrastructure and Support System Development which shall include, 
but shall not be limited to, programs and projects that will ensure 
efficient police service by providing for the construction and/or 
improvement of police facilities, units, offices, stations, equipment, 
training 
complexes, 
crime laboratories, 
information management 
systems, communication systems, hospitals, dispensaries, and housing 
units. 
g. PNP Scholarship Program which shall refer to the grant of educational 
assistance to qualified dependents of both uniformed and non- 
uniformed PNP personnel, who are either in active duty or were killed 
or totally and permanently incapacitated in the line of duty. 
SEC. 15. Creation of Board of Trustees. - Within sixty (60) days from 
the effectivity of this Act, the Chief of the PNP shall undertake the creation 
of a Board of Trustees which shall be responsible for the management and 
administration of the PNPTF. 
SEC. 16. Formulation of Implementing Rules and Regulations. - 
Within thirty (30) days from its creation, the Board of Trustees herein 
provided shall, subject to the approval of the Chief of the PNP, formulate 
such rules and regulations implementative of this Act. 
SEC. 17, Annual Report. - Not later than the end of the first quarter of 
.the succeeding year, the Chief of the PNP shall submit to the President and 
Congress an annual report on the progress of the implementation of the 
provisions of this Act containing the following information: 
a. Gross annual earnings accruing to the PNPTF; 
b. Gross availments ofldisbursements from the PNPTF; 
c. The specific purposes for which the PNPTF was allocated; and 
d. The balance amount of the PNPTF at the close of the preceding year 


SEC. 18. Separability Clause. - Should any provision of this act be 
held unconstitutional or invalid, the remaining provisions shall not be 
effected thereby and shall remain in full force and effect. 
SEC. 19. Repealing Clazise. - All laws, executive orders, rules and 
regulations inconsistent with or contrary to this Act are hereby accordingly 
repealed or modified: Provided, That, the provisions of Republic Act No. 
6963, as amended which are not in consonance with the provisions of this 
Act are expressly repealed. 
SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers 
of general circulation. 
Approved,