FOURTEENTH CONGRESS OF THE REPUBLIC } 
r 
OF THE PHILIPPINES 
First Regular Session 
! 
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 establislr 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: 
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. 
0 
The immediate passage of this proposed legislative measure into law is 
earnestly sought. 


FOURTEENTH CONGRESS OF THE REPUBLIC } 
! 
OF THE PHILIPPINES 
First Regular Session 
V
"
 
Introduced by: Senator Lacsbn 
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 
Assembled: 
SECTION 1. Title. - This Act shall be known as the "PNP Trust Fund Act". 
SEC. 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 (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 
(b)To maintain a PNPTF that may be readily utilized by the Chief of the PNP in 
(c)To create a Board of Trustee which shall manage and administer such 
generated from such sources as may be provided for in this Act; 
support of such PNP programs and projects enumerated; and 
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 o€ 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; 
11 .Issuance of a11 other licenses, certificates, fines, penalties required by 
the PNP; Issuance of all other licenses, certificates, fines, penalties 
that may subsequently be required by law; and 
12. Testing and Analysis fees by the PNP Crime Laboratory. 
(b) Interest earnings generated from 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 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 
(0 
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 clearance 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. Creatioit 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 implementalive 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 of/disbursements 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 Clause. - 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,