Republic of the Philippines 3 )*
HOUSE OF REPRESNTATIVES i 10 JUN 2014
Quezon City ‘ fo. fu, |}

SIXTEENTH CONGRESS \* ] 4
First Regular Session

House Bill No: 4617

Introduced by: Representative Mark Llandro L. Mendoza

EXPLANATORY NOTE

Rice and corn are considered staple food commodities of our population, Based
on the Bureau of Agricultural Statistics’ data as of 2012, per capita consumption
of rice accounts to 117.14 kg/yr and 17.34 kg/yr for corn. While the country largely
produces these agricultural products, we highly depend on importation to adequately
meet the national requirement for rice and corn.

The insufficient production of rice and corn in the country is further exacerbated
by illegal activities of some unscrupulous traders and dealers engage in hoarding to
manipulate market prices of these products. Unfortunately, hoarding and. profiteering
activities proliferate during times of calamities and emergencies to control the price
of basic commodities. These situations further aggravate the destitute situations of the
victims in calamity-stricken areas.

This measure proposes to consider rice and corn hoarding and profiteering
especially during calamity and emergency declared by the President as equivalent to
economic sabotage. Also, the bill provides for stiffer penalties and sanctions for the
violators of the Act, thereby, partially amending Republic Act No. 7581, otherwise
known as the Price Act.

DRQL. MENDOZA
p of Batangas


Republic of the Philippines
HOUSE OF REPRESNTATIVES
Quezon City
SIXTEENTH CONGRESS
First Regular Session

House BillNo:__ 4617

Introduced by: Representative Mark Llandro L. Mendoza

AN ACT CONSIDERING RICE OR CORN HOARDING AND.
PROFITEERING DURING OR ON THE OCCASION OF ANY CALAMITY
OR EMERGENCY DECLARED AS SUCH BY THE PRESIDENT AS
EQUIVALENT 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 the 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 xX xX xX

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

(3) "Implementing agency" means the department, agency or office of the
Government, which has 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;

xx x 2

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 of any necessity or prime commodity

1)

2)

(a)
(b)
()

(d)

Hoarding, which is the undue accumulation OR STORING/KEEPING by a
person or combination of persons of any basic necessity or prime
commodity beyond his or their normal inventory levels AS
DETERMINED BY THE IMPLEMENTING AGENCY CONCERNED or
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 the unjustified taking out 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 fifty percent
(50%) higher than his usual inventory and unreasonably limits, refuses or
fails to sell the same to the general public at the time of discovery of the
stocks, The determination of a 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 IRRESPECTIVE OF THE DATE/TIME HE STARTED HIS
BUSINESS;

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

has no price tag;
is misrepresented as to its weight or measurement;

is adulterated or diluted OR MIXED WITH LOWER QUALITY IN THE
CASE OF RICE OR CORN; or

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

x x x x 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 FUNCTIONS. - 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 ANY OR 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: PROVIDED, FURTHER, THAT THE REFUSAL TO.
ALLOW THE TASK FORCE OR ITS DULY AUTHORIZED REPRESENTATIVES TO.
CONDUCT MONITORING ACTIVITY IN THESE ESTABLISHMENTS SHALL BE
PRIMA FACIE EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND
PROFITEERING BEING PERPETRATED THEREAT: PROVIDED, FINALLY, THAT IF
THESE ESTABLISHEMENTS ARE OWNED BY JURIDICAL PERSONS, CRIMINAL
LIABILITY, FOR VIOLATION OF THIS SECTION SHALL ATTACH TO THE
RESPECTIVE PRESIDENTS, CHIEF OPERATING OFFICERS OR MANAGERS
THEREOF.

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 PROVINCIALI/CITY 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 OR CORN STOCKS; 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 (P 5,000) nor more than Two Million Pesos (P
2,000,000): 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 (P 100,000) NOR
MORE THAN FIVE MILLION PESOS (P5,000,000): PROVIDED, FURTHER, THAT
WHEN THE ACTS OF RICE OR CORN HOARDING AND PROFITEERING ARE
COMMITTED 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 ECONOMIC
SABOTAGE AND PUNISHABLE BY RECLUSION PERPETUA: PROVIDED,
FINALLY THAT WHEN THE OFFENDER IS A JURIDICAL PERSON, CRIMINAL
LIABILITY SHALL ATTACH TO ITS PRESIDENT, CHIEF OPERATING OFFICER OR
MANAGER.


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 implementing agency
concerned shall promulgate the pertinent rules and regulations for the effective
implementation of this Act, within sixty (60) days from its effectivity.

SECTION 7. Separability Clause. - The provisions of this Act are hereby declared
to be separable from, and independent of, one another and that should one or more of
such provisions be declared unconstitutional, the validity of the remaining provisions
shall not be affected thereby

SECTION 8. Repealing Clause. - All laws, decrees, executive issuances, rules
and regulations inconsistent with this Act are hereby repealed and/ or modified
accordingly

SECTION 9. Effectivity Clause.- This Act shall take effect immediately upon its
approval

Approved,