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I
 
THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Fimt R egulnr Session 
SENATE 
S. No. 
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INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
The vesting of duties, responsibilities, and accountabilities in different government 
instrumeiitalities 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 these 
different government offices are sourced from the annual General Appropriations Act. 
The Philippine National Police is one of these government agencies largely dependent 
upoii the appropriation of budget passed by Congress. Unfortunately, it is not always that the 
legislature would approve a sizable appropriation for the 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 
inodeniizatioii and professionalization of the police force. To be able to effectively and 
efficiently perform its general responsibilities in enforcing penal laws and maintaining and 
coiitrolling 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 proposed bill are the following: 
Establishment of a PNP Trust Fund to be generated from the fLinding sources enumerated 
in this proposed bill; 
0 
Creation of a Board of Trustees that shall manage and administer said PNP Trust Fund; 
and 
The power of tlie Chief of the PNP to avail of said.PNP Trust Fund without the need of 
securing prior clearance from any government agency or office and utilize the same for 
tlie exclusive use of the PNP in accordance with the purposes for which said PNP Tnrst 
Fund was established as enumerated by this proposed bill. 
The immediate passage of this proposed legislative measure into law is eamestly sought. 
n 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT ESTABLISHING A PHILIPPINE NATIONAL POLICE TRUST FUND TO BE 
UTILIZED FOR SPECIFIED PROGRAMS AND PROJECTS, AND FOR OTHER 
PURPOSES 
Be it enacted bji the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Title - This Act shall be known as the "PNP Trust Fund Act." 
Section 2. Declaration of Policy - 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, it shall be the policy of the 
State to recognize the imperative need to provide for, and enhance existing, PNP prograins and 
projects aimed towards the modernization of the police force. 
Likewise, it shall be the policy of the State to guarantee the efficacy of sucli PNP 
programs and projects by assuring the availability of ftinds necessary for their effective 
implementation. 
Section 3. Statement of Objectives - This Act shall have the following objectives: 
a> 
such sources as may be provided for in this Act; 
To establish a unified and consolidated PNP Trust Fund (PNPTF) to be generated fi-oin 
b) 
such PNP prograins and projects enumerated; and 
To maintain a PNPTF that may be readily utilized by the Chief of the PNP in support of 


c) To create a Board of Trustees which shall manage and administer such PNPTF in accordance 
with tlie provisions of this Act; 
Section 4. Liberal Construction - The provisions of this Act shall be liberally constructed to 
effectuate the policy declared hereunder and the objectives stated herein. 
- 
Section 5. Defiiiitioii 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 shall 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 fhic t ions ; 
e) PNP Programs and Projects shall refer to such modernization prograins and projects to be 
undertaken by the Chief of the PNP which shall include, but shall not be limited to, the 
following: 
' Organizational 
Development; 
Human 
Resource 
Development; 
Doctrines 
Development; Equipment, Firearms, Mobility and Communications Development; Information 
Teclinology Development; and Infrastructure and Support System Development, as defined under 
this Act. 
Section 6. Establishment of Philippine National Police 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 for in this Act and which shall be utilized by 
tlie Chief of the PNP priniarily for the implenientation of such PNP programs and projects as 
herein enumerated. 


Section 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 sliall 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 Clearance 
7. Issuance of Police Security clearances; 
8. Issuance of Police Station clearances; 
9. Inipositioii of fines by different PNP Units as penalties for violations of PNP laws, d e s ,  and 
regulations; 
10. Issuance of clearances for motor vehicle engines being installed on board motor banca, 
fishing boats and other watercraft; and issuance of clearances for the transport of motor vehicle 
engine 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 fi-om cash bonds; 
c> 
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 
tlie PNP without any encumbrance: Provided Further That, donations, whether in cash or in 
Itiud, 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; 
D> 
Rental fees collected for the use of the PNP premises, equipment, and facilities; 
E) 
services rendered; 
Fees collected froin public and private institutions by different PNP Units for 
F) 
conduct of seminars, conferences, and training programs; and 
Fees collected from governinent and private agency-participants in relation to the 
G) 
Other funding sources as may subsequently be provided by the law. 
Section 8. Power to Create/ Broaden Sources of Revenue - The Chief of the PNP shall have the 
power to create additional and broaden 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 or personal property held by it in its propriety capacity 
and to apply their revenues and assets generated therefrom for the purposes herein enumerated. 
Section 9. Remittance - The fbiiding sources herein enumerated as the PNPTF shall be deposited 
in full, as a coinbo account, oiily in such government depository bank, without fLirther 
requireinelit to remit to the National Treasury. The interest income thereof shall accrue to the 
Income collected and accruing to the PNPTF . 


Section 10. Revolving Fund of the PNP Revenue Generating Offices - All fees and charges 
collected by the different PNP offices shall accrue the PNPTF: Provided That, any PNP RGO 
may, subject to the approval of the PNP, utilize twenty (20%) percent of its gross collection as 
revolving fbnd within a given period subject to the accepted accounting and auditing rules and to 
support its direct cost of operation. 
Section 11. Disbursement - Increments of or tlie whole amount of the f h d  shall be made 
available to tlie Chief of the PNP to fund such PNP programs and projects hereunder enumerated. 
Availinelit of tlie PNPTF by the of tlie PNP shall be made only in such authorized government 
depository. Provided Tlznt, availinent thereof shall not require any prior clearance or from any 
other govei-nment agency. Payments out of the PNPTF shall be made solely in accordance with 
the purposes specified under this Act, and subject to existing government accounting and 
auditing rules and regulations. 
Section 12. Multi-Year Contracts and Other Contractual Arrangements - Notwithstanding any 
provision to the contrary, tlie Chief of the PNP may, malting into coiisideratioiis the gross 
eai-iiings of the PNPTF for the preceding year, enter into multi-year contracts and other 
contractual ail-aiigenients in order to effect the purposes herein enumerated for which the PNPTF 
was created. 
Section 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 of his forward 
obligating authority: Provided That, the obligation to be incurred in any given calendar year shall 
in no case exceed twenty-five (25) of the projected earnings of the PNPTF for such calendar year. 
Section 14. Purposes of PNPTF - The PNPTF shall be utilized by the Chief of the PNP to fbnd 
the following PNP prograins and projects: 
I 
a) 
Organizational Development - which shall include, but shall not be limited to, 
prograins and projects that shall entail the re-structuring and streamlining of the PNP units and 


offices; avoid overlapping of functions; facilitate police deployment; and simplify police 
procedures. 
b) 
Human Resource 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 small 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 units/ offices; conduct periodic review 
through field application, testing and exercises to ensure effectivity thereof. 
d) 
Equipment/ Firealms/ Mobility/ Cominunications Developinent - 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, progranis and projects aimed towards the enhancement of information dissemination 
witliiii the police organization to ensure that the point of decision is as close as possible to the 
poirit 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 facilities, units, offices, 
stations, equipment? training complexes, crime laboratories? information management systems, 
coiniiiuiiicatioiis systems, hospitals, dispensaries, and housing units. 
'9 
PNP Scholarship Program - which shall refer to the grant of educational 
assistance to qualified dependents of both uniformed and non-uniformed PMP personnel, who 
are either iii active duty or were killed or totally and permanently incapacitated in the line of 
duty. 


Section 75. Creation of Board of Trustees - Within sixty (60) days from the effectivity of this 
Act, tlie Chief of the PNP shall undertake the creation of a Board of Trustees which shall be 
responsible for the management aiid administration of the PNPTF. 
Section 16. Forniulation of Implementing Rules aiid Regulations - Witliiii 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 implementating this Act. 
Section 17. Annual Report - Not later that the end of the first quarter of the succeeding year, the 
Chief of the PNP, sliall subinit to the President and Congress an annual report on the progress of 
tlie impleinentation of the provisions of this Act containing the following infonnation: 
a) 
gross annual earnings accruing to the PNPTF; 
b) 
gross aniiual availments of disbursements from the PNPTF; 
c) 
the specific purposes for which tlie PNPTF was allocated; and 
d) 
balance amount of the PNPTF at the close of the preceding year. 
Section 18. Separability Clause - should any provision of this act be held unconstitutionally or 
invalid, tlie remaining provisioiis shall not be affected thereby and shall remain in ftlll force and 
effect. 
. 
Section 19. Repealing Clause - All laws, executive orders, rules and regulations inconsistent 
with or contrary to this Act are hereby accordingly repealed or modified. Provided That, tlie 
provisions of R.A. No. 6963, as amended which are not in consonance with the provisions of this 
Act are liereby expressly repealed. 
Section 20. Effectivity Clause - This Act sliall take effect fifteen (1 5) days from its publication in 
at least two (2) newspapers of general circulation. 
Approved,