RECEIVED

pare: AUG , 6 2019 \)

Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _3466

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

This bill seeks to expand the scope of rice and corn hoarding, and strengthen
the penal sanctions for such, as provided for under Republic Act 7581 or the Price
Act of 1992. This Representation is steadfast in addressing food insecurity and rice
shortage, and we recognize that different measures must be undertaken to solve
country’s food problem.

The act of rice and com hoarding to manipulate the interplay of supply and
demand in the market is a crime. It triggers a domino effect of unfortunate events. By
creating an artificial shortage of rice and corn, the costs of the same shoot up, there
is panic buying in the markets, government agencies are under fire for allegations of
corruption and mismanagement, poor Filipino families cannot afford these basic
commodities, and many go hungry. In sum, it is a dangerous crime that may
potentially sabotage the economy and render our people desperate and hungry.

It is high time that pertinent laws are amended to ensure that our legislation
stays apposite to the realities of today. More importantly, we have to make rice and
corn hoarders answerable under the law. To this end, this bill seeks to increase the
penalty for rice hoarding and profiteering, and to cover acts and practices not
previously included under the original law passed 30 years ago.

In consideration of the foregoing premises, the swift passage of this bill is
sought

Luis UI RAY” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BiLL No. 2466

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
CONSIDERING RICE OR CORN HOARDING AND PROFITEERING DURING OR
ON THE OCCASION OF ANY CALAMITY OF EMERGENCY DECLARED AS
SUCH BY THE PRESIDENT AS EQUIVAENT TO ECONOMIC SABOTAGE,
PARTLY AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7581,
OTHERWISE KNOWN AS THE PRICE ACT, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. This Act shall be known as the “Anti-Rice or Corn Hoarding
and Profiteering Act.”

SECTION 2. Section 3 of Republic Act 7581 is hereby amended to read as follows:
“SECTION 3. Definition of Terms. - For purposes of this Act, the term :
x x x x

(2a) “ECONOMIC SABOTAGE” IS ANY ACT OR ACTIVITY WHICH
UNDERMINES, WEAKENS OR RENDERS INTO DIRESPUTE THE ECONOMIC
SYSTEM OR VIABILITY OF THE COUNTRY OR TENDS TO BRING ABOUT
SUCH EFFECTS AND SHALL INCLUDE, INTERALI, PRICE MANIPULATION TO
THE PREJUDICE OF THE PUBLIC, ESPECIALLY IN THE SALE OF BASIC
NECESSITIES AND/OR PRIME COMMODITIES.

(3) “Implementing agency” means the department, agency, or office of
the Government, which has the jurisdiction over a basic necessity or prime
commodity as defined in this Act, which shall be:


(a) The Department of Agriculture with reference to any cultural
crops, fish and other marine products, fresh meat, fresh poultry
and dairy products, fertilizers and other farm inputs.

(A1) THE NATIONAL FOOD AUTHORITY, WITH REFERENCE TO
RICE AND CORN;

x x x x

SECTION 3. Section 5 of Republic Act 7581 is hereby amended to read as follows:

* SECTION 5. Illegal Acts of Price Manipulation. — Without prejudice to the
provisions of existing laws on goods not covered by this Act, it shall be unlawful for
any person habitually engaged in the production, manufacture, importation, storage,
transport, distribution, sale or other methods of disposition of goods to engage in the
following acts of price manipulation of any necessity or prime commodity:

1) Hoarding, which is (A) the undue accumulation, STORAGE, OR
POSSESSION by a person or combination of persons of any basic
necessity or prime commodity beyond his or their normal inventory levels
AS DETERMIND BY THE IMPLEMENTING AGENCY CONCERNED; or
(B) the unreasonable limitation or refusal to dispose of, sell or distribute
the stocks of any basic necessity or prime commodity to the general
public; or (C) the unjustified REMOVAL of any basic necessity or prime
commodity from the channels of production, trade, commerce and
industry. There shall be prima facie evidence of hoarding when a person
has stocks of any basic necessity or prime commodity IN A QUANTITY
THAT IS fifty percent (50%) higher than his usual inventory GIEN THE
SEASONTIME OF THE YEAR, the unreasonably limits, refuses or fails to
sell the same to the general public OR MAKE THE SAME AVAILABLE IN
THE REGULAR CHANNELS OF PRODUCTION, TRADE, COMMERCE,
AND INDUSTRY at the time of discovery of the stocks. The determination
of @ person's usual inventory shall be reckoned from the third month
immediately preceding before the discovery of the stocks in case the
person has been engaged in the business for at least three (3) months,
otherwise, it shall be reckoned from the time he started his business:
PROVIDED, HOWEVER, THAT IN THE CASE OF RICE OR CORN, A
PERSON'S USUAL INVENTORY THEREOF SHALL BE RECKONED
FROM THE MONTH IMMEDIATELY PRECEDING BEFORE THE
DISCOVERY OF THE STOCKS RESPECTIVE OF THE DATE/TIME HE
STARTED HIS BUSINESS;


2) Profiteering, which is the same or offering for sale of any basic necessity
or prime commodity at a price grossly in excess of its true worth. There
shall be prima facie evidence of profiteering whenever a basic necessity of
prime commodity being sold

a) Has no price tag;
b) Is misrepresented as to its weight or measurement;

c) Is adulterated or diluted OR MIXED WITH ITEMS OF LOWER
QUALITY IN THE CASE OF RICE OR CORN; or

dq)

Whenever a person raises the price of any basic necessity or prime
commodity he sells or offers for sale to the general public by more
than ten percent (10%) of its price in the immediately preceding
month; Provided, That, in the case of agricultural crops, EXCEPT
RICE AND CORN, fresh fish, fresh marine products, and other
seasonal products covered by this Act and as determined by the
implementing agency, the prima facie provision shall not apply; and

XOX Pax ho XE x:

SECTION 4. A new section shall be added and immediately follow SECTION 13 of
Republic Act 7581 to read as follows:

“SECTION 13-A. THE ANTI-RICE OR CORN HOARDING AND
PROFITEERING TASK FORCE: COMPOSITION AND FUCTIONS. - WITH
RESPECT TO RICE AND CORN, THERE SHALL BE CREATED AN ANTI-RICE
OR CORN HOARDING AND PROFITEERING TASK FORCE IN EVERY
PROVINCE, CITY AND MUNICIPALITY TASKED WITH MONITORING THE
INVENTORY LEVEL OF ALL RICE OR CORN MILLS, WAREHOUSES AND
STOCKHOUSES TO DETERMINE THEIR RESPECTIVE MONTHLY STOCKS OF
RICE OR CORN THEREIN: PROVIDED, THAT AN INVENTORY REPORT OF
EVERY MONITORING ACTIVITY SHALL BE RENDERED BY THE TASK FORCE
TO THE IMPLEMENTING AGENCY CONCERNED, NOT LATER THAN TEN (10)
DAYS FROM THE CONCLUSION THEREOF, WHETHER IN PHYSICAL OR
DIGITAL FORM: PROVIDED, FURTHER, THAT THE REFUSAL TO ALLOW THE
TASK FORCE OR ITS DULY AUTHORIZED REPRESENTATIVES TO CONDUCT
MONITORING ACTIVITES IN THESE ESTABLISHMENTS SHALL BE PRIMA
FACIE EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND/OR
PROFITEERING BEING PERPETRATED THEREAT; PROVIDED, FINALLY, THAT
IF THESE ESTABLISHMENTS ARE OWNED BY JURIDICAL PERSONS,
CRIMINAL LIABILITY FOR THE VIOLATION OF THIS SECTION SHALL ATTACH


TO THE PERSONS WHO HAVE DIRECT SUPERVISION AND CONTROL OF
SUCH ESTABLISHMENTS, INCLUDING THE RESPECTIVE PRESIDENTS,
CHIEF, OPERATING OFFICERS OR MANAGERS THEREOF SHOULD THE
SAME BE RESPONSIBLE FOR THE HOARDING AND/OR PROFITEERING.

THE ANTI-RICE OR CORN HOARDING AND PROFITEERING TASK
FORCE SHALL BE COMPOSED OF THE LOCAL CHIEF EXECUTIVE OF THE
LOCAL GOVERNMENT UNIT CONCERNED, WHO SHALL ACT AS ITS CHAIR;
ONE (1) REPRESENTATIVE FROM THE PROVINCIALICITY FIELD/BRANCH
OFFICE OF THE IMPLEMENTING AGENCY CONCERNED; ONE (1)
REPRESENTATIVE FROM THE FARMER'S SECTOR; ONE (1)
REPRESENTATIVE FROM THE LOCAL CONSUMER'S ORGANIZATION GROUP,
IF ANY, AND THE LOCAL CHIEF OF POLICE, AS MEMBERS.

THE OWNER/OPERATOR/MANAGEMENT OF EVERY RICE OR CORN
MILL, WAREHOUSE OR STOCKHOUSE IS REQUIRED TO SUBMIT TO THE
TASK FORCE A DULY-CERTIFIED AND SWORN MONTHLY REPORT OF ITS
INVENTORY OF RICE AND CORN STOCKS, WHETHER IN PHYSICAL OR
DIGITAL FORM; PROVIDED THAT, FAILURE TO DO SO SHALL BE PRIMA
FACIE EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND
PROFITEERING BEING PERPETRATED IN THE ESTABLISHMENT
CONCERNED.

SECTION 5. Section 15 of Republic Act 7581 is hereby amended to read as follows:

“Section 15. Penalty for Acts of Illegal Price Manipulation. ~ Any person
who commits any act of illegal price manipulation of any basic necessity or
prime commodity under Section 5 hereof shall suffer the penalty of
imprisonment for a period of not less than five (5) years nor more than fifteen
(15) years, and shall be imposed a fine of not less than Five Thousand Pesos
(P5,000.00) nor more than Two Million Pesos (P2,000,000.00): PROVIDED,
THAT THE ACTS OF RICE OR CORN HOARDING OR PROFITEERING SHALL
BE PUNISHABLE BY IMPRISONMENT FOR A PERIOD OF NOT LESS THAN
TEN (10) YEARS NOR MORE THAN TWENTY (20) YEARS AND A FINE OF NOT
LESS THAN ONE HUNDRED THOUSAND PESOS (P100,000.00) NOR MORE
THAN FIVE MILLION PESOS (P 5,000,000.00): PROVIDED FURTHER, THAT
WHEN THE ACTS OF RICE OR CORN HOARDING AND PROFITEERING ARE
COMMITED DURING OR ON THE OCCASION OF ANY CALAMITY, DISASTER
OR ANY EMERGENCY DECLARED AS SUCH BY THE PRESIDENT OF THE
REPUBLIC OF THE PHILIPPINES, THEY SHALL BE DEEMED EQUIVALENT TO
THE ECONOMIC SABOTAGE, AND PUNISHABLE BY RECLUSION PERPETUA:
PROVIDED, CRIMINAL LIABILITY SHALL ATTACH TO THE PERSONS WHO
HAVE DIRECT SUPERVISION AND CONTROL OF SUCH ESTABLISHMENTS,
INCLUDING THE RESPECTIVE PRESIDENTS, CHIEF OPERATING OFFICERS


OR MANAGERS THEREOF SHOULD THE SAME BE RESPONSIBLE FOR THE
HOARDING AND/OR PROFITEERING.

IN ADDITION TO THE PENALTY IMPOSED FOR RICE OR CORN
HOARDING AND PROFITEERING UNDER THIS ACT, HOARDED RICE OR
CORN STOCKS SHALL BE CONFISCATED AND FORFEITED IN FAVOR OF THE
GOVERNMENT.

SECTION 6. Implementing Rules and Regulations. - The Department of
Agriculture shall promulgate the necessary implementing rules and regulations within
sixty (60) days from the effectivity of this Act.

SECTION 7. Separability Clause. — \f, for any reason, any part of provision of this
Act is declared invalid, such declaration shall not affect the other provisions of this
Act.

SECTION 8. Repealing Clause. — All laws, presidential decrees or issuances,
executive orders, rules and regulations or parts thereof contrary to or consistent with
the provisions of this Act are hereby repealed, modified or amended accordingly.

SECTION 9. Effectivity. — This Act shall take effect thirty (30) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,