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17" CONGRESS OF THE REPUBLIC OF THE. LIPPINESsTRATION UNIT

FIRST REGULAR SESSION BULLS AND INDEX SERVICE

House of Representatives
HOUSE BILLNO. _ 1874

INTRODUCED BY HONORABLE TEODORO G. MONTORO,

EXPLANATORY NOTE

This bill defines economic sabotage as 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.

Under this legislation, rice or corn hoarding and profiteering during or on
the occasion of any calamity or emergency declared as such by the
President is equivalent to economic sabotage.

‘The enactment of this legislation will add teeth to Republic Act No. 7581,
otherwise known as the Price Act by increasing the penalty for violations,
to wit: 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) nor more than five million pesos (P5,
000,000).

The number of unscrupulous rice and corn traders ballooned because of
seemingly laidback governing laws. Inadequate rules and regulations
contributed to unabated hoarding and profiteering much to the
detriment of the Filipino people.

Hence, approval of this legisIftion is earnestly sought.

REPRESENTATIVE, AASENSO PARTY LIST


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17" CONGRESS OF THE REPUBLIC OF THE PHILIPPINES
FIRST REGULAR SESSION

He f Re rt
HOUSE BILLNO. 182d

[TRODUCED BY HONORABLE TEODORO G. MONTORO

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 of 2016”

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

(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.

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


x x Xx 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 of any necessity or prime
commodity:

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 STOCKSIRRESPECTIVE 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;

(a) is misrepresented as to its weight or measurement;

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

(c) 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 = i x i

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 PROVINCIAL/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 STOCKHOUSEIS
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,