WHEREAS, pursuant to Presidential Decrees No. 421, dated March 21, 1974; No. 482, dated June 13, .1974; No. 531, dated August 8, 1974; and No. 585, dated November 18, 1974, administrative control and supervision over the city and municipal police and fire departments and jails therein covered, including their personnel, funds, property, equipment, and other resources, shall be transferred to the Philippine Constabulary after one year, but not later than two years, from the promulgation of the aforesaid Decrees;

WHEREAS, pursuant to the aforementioned Presidential Decrees, operational control over the Metropolitan Police Force and the Provincial integrated Police Forces therein established has been transferred to the Philippine Constabulary from the promulgation thereof;

WHEREAS, among the objectives of police integration are to provide for an adequate scale of compensation for the members of the Integrated Police Forces and to upgrade their equipage, their training and overall capabilities and thereby improve their efficiency;

WHEREAS, in order that the Integrated Police Forces established pursuant to Presidential Decrees No. 421, dated March 21, 1974; No. 482, dated June 13, 1974; No. 531, dated August 8, 1974; and No. 585, dated November 18, 1974, and such other decrees as may hereafter be promulgated, can be cohesively organized, better coordinated, effectively directed, and systematically managed, there is a need for an appropriate enabling measure in addition to the aforementioned decrees;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree to be part of the law of the land the following:

SECTION 1. Funding of Integrated Police Forces. — Effective upon the transfer to the Philippine Constabulary of the power of administrative control and supervision over the Metropolitan Police Force and the Provincial Integrated Police Forces as prescribed in Presidential Decrees No. 421, dated March 21, 1974; No. 482, dated June 13, 1974; No. 531, dated August 8, 1974; and No. 585, dated November 18, 1974, and other police forces to be integrated into the Integrated Police Force in succeeding or subsequent decrees, each of the cities and municipalities therein covered shall include every fiscal year in their respective general fund annual budget an appropriation in an amount equivalent to not less than eighteen per centum (18%) of the annual regular income accruing to the general fund of each of said cities or municipalities actually realized during the next preceding fiscal year as their respective contributions to the National Government for the maintenance and operation of the Metropolitan Police Force and the Provincial Integrated Police Forces therein established: Provided, That no city or municipality shall divert for other purposes any fund, property, equipment, facilities and other resources being used by or intended for the police and fire departments and jails included in said Presidential Decrees. For purposes of this Decree, the annual regular income herein referred to shall include all revenues and receipts accruing to the general fund of the city or municipality concerned, but excluding budgetary aids, subsidies or other financial assistance or contribution from the National Government, proceeds from bond issues, proceeds from or repayment of loans, private contributions or donations, return or advances to economic enterprises, sales of fixed assets, income from sale of real property, prior year's adjustments, and other receipts not regularly recurring each fiscal year.

Failure on the part of the local legislative body to provide the full appropriation for the city/municipal contribution fixed in this Section shall constitute sufficient ground for the Secretary of Finance or the Provincial Treasurer, as the case may be, to declare inoperative the annual/ supplemental budgets of the city or municipality of the corresponding fiscal year in accordance with the pertinent provisions of Presidential Decree No. 477, dated June 3, 1974. In such cases and city/municipality concerned shall be required to set aside the necessary appropriation in a general fund supplemental budget for the said fiscal year and upon the continued failure of the city/municipality to provide for such appropriation, the Secretary of Finance may order the withholding of the amount involved from the internal revenue allotments accruing to the city/municipality and/or take such other measures as he may deem appropriate.

SEC. 2. Remittance of Contribution. — Within ten (10) days following the end of each month, the city or municipal treasurer shall remit to the credit of the Treasurer of the Philippines, one twelfth (1/12) of the annual contribution of the city or municipality referred to in Section 1 hereof to the branch of the Philippine National Bank or Philippine Veterans Bank nearest the city or municipality concerned. The Treasurer of the Philippines shall account for the contribution herein referred to as income of the General Fund.

SEC. 3. Absence of Approved Annual Budget. — In the absence of an approved budget for any fiscal year, the city or municipal treasurer concerned shall nevertheless make the remittance herein prescribed in an amount equal to the contribution of such city or municipality for the immediately preceding fiscal year until such time as the appropriation required for the new fiscal year shall have been determined in accordance with Section 1 of this Decree and the necessary appropriation set aside in a supplemental budget of the city or municipality whereupon remittances shall be made on the basis thereof as provided for in Section 2 of this Decree.

SEC. 4. National Annual Budget. — The National Government shall include in its annual appropriations such sums as may be necessary for the operation and maintenance of the Metropolitan Police Force and the Provincial Integrated Police Forces established pursuant to Presidential Decrees No. 421, No. 482, No. 531, No. 585 and such subsequent decrees on Police Integration as may be promulgated, including amounts necessary to cover any deficiency in the local contributions, subsidies and other types of fund support.

SEC. 5. Appropriation. — Such additional sum is hereby respectively appropriated out of any funds in the National Treasury not otherwise appropriated, as may be necessary, for the implementation of Presidential Decrees No. 421, No. 482, No. 531 and No. 585, and such subsequent decrees on Police Integration as may be promulgated for personnel services, maintenance and other operating expenses, including transportation allowances at rates to be prescribed by the Chief of Constabulary, purchase of motor vehicles, equipment outlay, and capital outlay. Thereafter, such amount as is necessary shall be included in the Annual General Appropriation Act as provided in the preceding Section.

SEC. 6. Book of Accounts. — With the approval of the Secretary of National Defense, the Chief of Constabulary is authorized to maintain and administer, a separate book of accounts solely for the Metropolitan Police Force and the Provincial Integrated Police Forces.

SEC. 7. Annual Report. — Within thirty (30) days after the end of each calendar year, the Chief of Constabulary shall submit to the President, through the Secretary of National Defense, an annual report on the activities and accomplishments of the Metropolitan Police Force and the Provincial Integrated Police Forces.

SEC. 8. Penalty Clause. — Failure on the part of any city or municipal council to provide in the city/municipal budget the appropriation prescribed in Section 1 of this Decree or on the part of the city/municipal treasurer to make the remittance required in Section 2 or 3 hereof, and any other violation of the provisions of this Decree shall be punished in accordance with the said Presidential Decrees No. 421, No. 482, No. 531, No. 585, and such subsequent decrees on Police Integration as may be promulgated.

SEC. 9. Rules and Regulations. — With the approval of the Secretary of National Defense, the Chief of Constabulary may promulgate such rules and regulations as may be necessary for the effective implementation of this Decree.

The Secretary of Finance shall likewise promulgate such rules and regulations as may be necessary of the proper implementation of Section 1, 2 and 3 of this Decree furnishing the Secretary of National Defense and the Chief of Constabulary with copies thereof.

SEC. 10. Repealing Clause. — All laws, decrees, orders and instructions inconsistent herewith are hereby repealed or modified accordingly.

SEC. 11. Effectivity. — This Decree shall take effect upon approval.

Done in the City of Manila, this 6th day of January, in the year of Our Lord, nineteen hundred and seventy-five.