SEVENTEENTH CONGRESS OF THE REPUBLIC} 
OF THE PHILIPPINES 
}
Second Regular Session 
}
S E N A T E  
Senate Bill No.
•
of I t :
'17 
AUG- 7  
P 2  3 3
1544
RECEIVcD liV,
Introduced by SENATOR LACSON
“AN ACT PROMDING FOR THE MODERNIZATION OF THE 
PHILIPPINE NATIONAL POLICE, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PLIH’OSES”
EXPLANATORY NOTE
The Constitution provides that it is the policy of the State to maintain peace 
and order, protection of life, liberty, and property, and promotion of the general 
welfare. Over the years, the Philippine National Police (PNP) has been the 
country’s primary law enforcement agency that serves the Filipino public by 
maintaining public safety.
While the PNP is at the forefront of ensuring peace and order and public 
security, there exist challenges that restrain the organization’s delivery of police 
services. Such bottlenecks include, but are not limited to, insufficient funding 
support, inadequate if not lack of up-to-date equipment, and tedious procurement 
process.
In addition, recent events have exposed the risk and vulnerability of our 
country to domestic threats, transnational organized crimes, and even to foreign 
extremist networks.
With the increasing demands of the modem society, it is therefore 
paramount to implement a modernization program for the PNP with the end view 
of transforming it into a highly efficient, capable, and competent national police 
force.
The pnmary components of the PNP Modernization Program include 
organizational and human resource development, infrastructure and facilities 
upgrading, and equipment acquisition and technology development.
This measure is also geared at strengthening the organization’s 
procurement system and procedures, and providing necessary funding support in 
line with the objectives of the PNP reorganization and modernization program.
It is for this purpose that the approval of this bill is earnestly sought.
PANIP
LACSON
Senator


m
SEVENTEENTH CONGRESS OF THE REPUBLIC}
OF THE PHILIPPINES 
}
Second Regular Session 
)
S E N A T E
Senate Bill No. _1544
Introduced by SENATOR LACSON
ottUr- . r C tnrp
AUG-7 P2.*33
R fcC b i V c d  U v:- - - -
“AN ACT PR()\ ID1NG FOR THE MODERNIZATION OF THE PHILIPPINE 
NATIONAL POLICE, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES”
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26 
27
SECTION 1. Short Title. -  This Act shall be known as the “PNP Modernization 
Act of 2017.”
Sec 2. Declaration of Policy. -  It is hereby declared the policy of the State to 
implement a modernization program for the Philippine National Police (PNP) with the 
end view of transforming it into a highly efficient, capable, and competent national police 
force.
Sec. 3. Components of the PNP Modernization Program. - The PNP 
modernization program shall consist of the following components:
a. 
Infrastructure Development and Facilities Upgrading -  The objectives 
of this component are:
1) upgrading and continuing development of basic facilities like 
camps, buildings, police stations and police community precincts 
and support facilities for administrative, investigative, and 
operational services such as but not limited to crime laboratory, 
communications systems, research and development centers, 
training institutions, medical and dental facilities, and quartering 
facilities that are secure, sustainable, gender sensitive and disaster 
resilient;
2) upgrading of facilities to support regulatory functions;
3) development, procurement, and management of information and 
communications technology systems and automated systems to 
ensure integration and effective coordination; and


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
4) real estate acquisition, titling, and management.
b. 
Equipment Upgrading and Acquisition Planning -  The objectives of 
this component are upgrading and procurement planning, and continuous 
acquisition of modern equipage for effective PNP capabilities such as but not 
limited to munitions and related items, transport, communication equipment, 
intelligence, 
investigative 
and 
forensic 
equipment, 
information 
and 
communications technology, and other mission-essential equipment.
Sec. 4. Submission of the PNP Modernization Program. — Within ninety (90) 
days from the effectivity of this Act, the Chief of the Philippine National Police, in 
consultation with the National Police Commission (NAPOLCOM), the Department of 
Budget and Management (DBM), and the Department of Finance (DOF) shall submit the 
PNP Modernization Program to the Congressional Oversight Committee, created under 
this Act, for its consideration, which shall indicate the following:
a. The personnel strength and inventory of facilities and equipment of the
PNP;
b. The modernization projects and activities under the program to be 
undertaken and the particular component and corresponding objective to which 
such projects and activities relate to;
c. 
The priorities, 
schedules, 
and phases of implementation of 
modernization projects and activities;
d. The estimated average cost of each modernization project or activity to 
be undertaken.
Sec. 5. Procurement System. -  In addition to the provisions of existing laws, 
rules and regulations governing the acquisition of real estate, buildings, facilities and 
equipment, the PNP shall strengthen its procurement system and procedures, taking into 
consideration the following policies and principles:
a. The PNP shall give preference to qualified domestic entities that 
participated in the procurement activities of the PNP.
b. The PNP Uniform and Equipment Standardization Board shall 
determine the specific standards for items, products, equipment, and technology 
to be submitted for approval of NAPOLCOM. Except for justifiable 
circumstances, all specifications submitted to NAPOLCOM shall be acted upon 
within thirty (30) days from receipt thereof Otherwise, it shall be deemed as duly
2


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
approved. All items, products, equipment, and technology standards must be 
responsive to the needs and requirements of the PNP.
The PNP may resort to direct contracting or any alternative mode of 
procurement in the following instances:
1) Contracts for the supply of military and police equipment including any 
part, component, or sub-assemblies thereof, and special tools and machines which 
are necessary for the production and maintenance of such equipment.
“Military and Police Equipment” refers to those specifically 
designed or adapted, developed, and produced for military and police 
purposes and intended for use of amis, munitions or combat or war 
materials. It includes investigative and surveillance equipment such as 
automated 
fingerprint 
identification 
system 
(APIS), 
audio-visual 
transmitters, receivers, cameras, global positioning system (GPS) devices, 
polygraphs, and other similar, acces.sorial, or allied devices and equipment 
designed and produced for such purposes; Provided, That it shall also 
include products which, although initially designed for civilian use, are 
later adapted to military and police puiposes to be used as arms, munitions 
or combat or war materials, such as but not limited to special suits, 
helmets, and vehicles, sea craft and aircraft with distinguishable military 
and police technical features that enable them to carry out missions that 
are clearly military and police work in nature.
2) Contracts for works and services directly related to military and police 
equipment such as, but not limited to, repair of equipment for firearms, armored 
personnel carriers, tanks, aircrafts and ships and construction of test facilities.
“Directly related” means a close connection between the works 
and services in question and the equipment, such that without which, the 
works and services may not be put to a meaningful use to the military or 
police equipment they are related to. It includes works and services not 
directly related to military and police equipment but are for specifically 
military and police purposes, such as but not limited to construction of 
runways, barracks, air raid and fall-out shelters and depots.
c. 
The PNP shall likewise ensure that in awarded contracts or agreements, 
provision are incorporated with respect to the transfer to the PNP of the principal 
technology involved including the training of the PNP personnel to operate and 
maintain the equipment and technology.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
d. The Chief, PNP pursuant to the PNP Reorganization and Modernization 
Program Projects and Appropriations approved by Congress may, subject to the 
approval of the President and consistent with the provisions of existing laws and 
regulations, including those of the Commission on Audit’s and under such terms 
and conditions most favorable to the government, enter into multi-year eontracts 
and other contraetual anangements.
e. For multi-year contracts and other contractual aiTangements, lease, 
lease-purchase agreements and similar agreement. Congress shall, upon issuance 
of a multi-year obligation authority by the Department of Budget and 
Management and certification by the President, make the corresponding 
appropriation for the ensuing fiscal year: Provided, That the Department of the 
Interior and Local Government and the Department of Budget and Management 
shall issue the implementing guidelines to ensure consistency with the PNP 
Modernization Program and existing guidelines in the contracting of multi-year 
projects. It shall only appropriate such funds as may be necessary to pay any 
unpaid amount where the funds appropriated for the current fiscal year are not 
sufficient or available to meet such payment in full or in part:
f The Chief, PNP shall submit to the Congressional Oversight Committee 
created under this Act, the Secretary of Finance and the Secretary of Budget and 
Management, copies of these multi-year contracts and other agreements to enable 
Congress to appropriate funds. The funds to be appropriated for the PNP 
Reorganization and Modernization Program under this Act shall be treated by the 
Secretary of the Interior and Local Government and Chairperson of the 
NAPOLCOM as a distinct and separate budget item from the regular 
appropriations of the Department of the Interior and Local Government.
Sec. 6. PNP Modernization Act Trust Fund -  The PNP shall institute reforms 
and promote responsible fiscal policies in line with the objectives of the PNP 
reorganization and modernization program. For this purpose, there shall be created a trust 
fund, to be known as the PNP Modernization Act Trust Fund, which shall not include 
salaries and allowances. It shall be used exclusively for the PNP reorganization and 
modernization program and shall be funded out from:
a. Appropriation for the PNP Reorganization and Modernization 
Program which is distinct and separate from the PNP appropriations with an 
initial fund of at least PIO Billion to be included in the modernization budget for 
the next year following the approval of this Act;
b. Minimum of P5 Billion modernization fund annually to be 
appropriated by Congress in the budget of the PNP within the duration of the PNP 
modernization;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
c. Shares of the PNP from the proceeds of sale of Military Camps, lease, 
joint development, build-operate-transfer scheme and other schemes involving 
PNP real properties, including such immovable and other facilities as may be 
found therein;
d. Funds from budgetary surplus, if any, subject to the provision of 
Section 7 hereof;
e. Donations from local or foreign sources specifically earmarked for 
PNP Modernization;
f. Ninety (90%) percent of the total service fees generated from financial 
institutions which avail of the automatic salary and pension deduction system of 
the PNP; and
g. Trust receipts subject to the provision of Section 9 of this Act.
Sec. 7. Austerity and Use of Savings. -  Upon the approval of this Act, the 
Secretary of the Interior and Local Government/Chairperson, NAPOLCOM shall submit 
to Congress, within the first quarter of the succeeding year, a report on;
a. The amount of all unused or undisbursed funds, other than unused 
appropriations for salaries and benefits of the PNP personnel, remaining from all 
previous PNP appropriations; and
b. The amount of savings from austerity measures which are hereafter to 
be pursued by all services and units of the PNP generated in the previous fiscal 
year;
The saving generated under this Section will be used to augment the funds for the 
PNP Reorganization and Modernization Program.
Sec. 8. Exemption from Value Added Tax And Customs Duties - The sale to the 
PNP of vehicles, weapon, equipment and ammunitions, to include the proceeds from 
lease. Joint development, build-operate-transfer scheme and other schemes involving 
PNP real properties, which are directly and exclusively used for its projects, 
undertakings, activities and programs under the PNP Reorganization and Modernization 
Act, shall be exempted from the value-added tax.
Any importation by the PNP pertaining to modernization, shall likcwi.sc be 
exempted from the value-added tax and customs duties.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Local and foreign donations in support to the PNP Modernization program shall 
likewise be exempted from value-added tax, custom duties and donors tax.
Sec. 9. PNP Trust Receipts. - The accrued income of the PNP from its operations 
and exercise of various regulatory functions is declared as PNP Trust Receipts and shall 
be exempted from Section 50 of Presidential Decree 1177, Executive Order 338, General 
Appropriations Acts and other pertinent laws. The full amount of the cited income shall 
be deposited in full in an authorized government depository bank. Increments of the 
whole amount thereof shall be made available to the Chief, PNP to augment PNP 
appropriations without complying with the requirements of a special budget per 
provisions of Section 5 of Presidential Decree 1177.
The PNP is authorized to collect payment for the direct cost of operation from the 
various government agencies and private entities requesting for the use of PNP 
equipment and facilities. The utilization of the income described herein shall be in 
accordance with the preceding paragraph.
The share of the AFP, Bureau of Fire Protection, and Bureau of Jail Management 
and Penology in the .scholarship fund allotted from the twenty (20%) percent of the net 
proceeds of the firearms fees shall be redirected and utilized for the PNP Reorganization 
and Modernization Program.
Sec. 
10. 
Fund Augmentation from 
Provincial, 
City, 
and Municipal 
Governments for luteal Police Stations. - It shall be mandatory for the provincial, city, 
and municipal goveniments to automatically allocate five (5%) percent of its annual 
appropriations earmarked for local development projects, sourced from its internal 
revenue allocation (IRA), as its annual fund augmentation to support priority projects and 
activities of local police stations, embodied in their respective provincial public safety 
plans or integrated area/community public safety plan, as the case may be, which should 
be aligned with the objectives of the PNP modernization program under this Act.
Sec. 11. Prioritization of PNP Projects and Activities. -  Within ninety (90) days 
from the effectivity of this Act, the PNP, through the NAPOLCOM, shall submit to 
Congress, for its consideration and approval, the schedule of priority projects and 
activities, as well as the yearly estimated average cost, by phases, to serve as basis for 
appropriate executive and legislative actions to enable immediate implementation until 
full realization. This schedule may include infrastructure and equipment acquisition and 
modernization and human resource development of NAPOLCOM.
Sec. 12. Appropriation for the PNP Modernization Program. — The amount 
necessary for the implementation of this Act shall be treated as a distinct and separate


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
budget item from the regular appropriation of the Department of the Interior and Local 
Government (DILG) and the PNP.
Sec. 
13. Period of Implementation. — The PNP Reorganization and 
Modernization Program shall be implemented over a period of ten (10) years. The 
payment for amortization of outstanding multi-year contract obligations incuned under 
this Act may extend beyond such period.
Sec. 14. Congressional Oversight Committee. —There is hereby created a 
Congressional Oversight Committee to monitor and oversee the implementation of the 
provisions of this Act. The committee shall be composed of six (6) members from the 
Senate and six (6) members from the House of Representatives with the Chaiipersons of 
the Committee on Public Order and Illegal Drugs and the Committee on Public Order and 
Safety of both Houses as Joint Chairpersons. The five (5) other members from each 
Chamber shall be designated by the Senate President and the Speaker of the Hou.se of 
Representatives, respectively.
The Minority shall have at least two (2) representatives from both Chambers.
Sec. 15. Annual Reports. -  Not later than the end of the first quarter of every year 
of implementation, the Chief, Philippine National Police shall:
a. Submit to the President and Congress an annual report on the status of 
the PNP Modernization Act Trust Fund, as provided for in Section 6 of this Act;
b. Submit to the President and Congress, through the Secretary of the 
Interior and Local Government (SfLG) and Chairman, NAPOLCOM, an annual 
report containing the progress of the implementation of the PNP modernization 
program under this Act.
Sec. 16. Review. -  Within five (5) years after the effectivity of this Act, the 
Congressional Oversight shall conduct a review or systematic evaluation of the 
accomplishments and impact of the PNP Reorganization and Modernization Program, as 
well as the performance and organizational structure of the implementing agencies, for 
purposes of determining remedial legislations.
Sec. 17. Implementing Rules and Regulations. -  The Chief, PNP, in 
coordination with the National Police Commission and the Secretary of Budget and 
Management, shall promulgate the necessaiy rules and regulations within one hundred 
eighty (180) days from the approval of this Act for its effective implementation.


1
2
3
4
5
6
7
8 
9
10
11
12
13
Sec. 18. Separability Clause. -  If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full 
force and effect.
Sec. 19. Repealing Clause. -  All laws, executive orders, rules and regulations 
inconsistent with or contraiy to this Act, are hereby deemed accordingly repealed or 
modified.
Sec. 20. Effectivity Clause. -  This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in at least two (2) newspapers of 
national circulation.
Approved.