Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

8605

House Bill No.

Introduced by DIWA Party-list Representative Pepito M. Pico

EXPLANATORY NOTE

Prices of rice and other agricultural products surged during the past three months,
Sometime in August 2018, the price of rice escalates as the shortages pushes the prices at the
highest level in history. While the government assures that there is enough supply of rice but
this did not stop the price surges,

Hoarding not only keeps necessities off the market and out of distribution, but it can
create an artificial shortage that drives up the prices of goods already on the market,
potentially making them just as unavailable for the poor, even if they are technically
"available."

The hoarding of rice and com is clearly a pemicious practice that has been going on
for far too long, in spite of deleterious consequences to the nation as a whole. Action must be
taken, particularly to discourage such crimes during times of calamity.

This Bill is a re-filing of the HB 754 by the former DIWA Party-list representative
Emmeline Villar, which seeks to increase the penalty for hoarding and profiteering rice
and/or corn during times of calamity or emergency by categorizing the same as acts of
economic sabotage.

PITO M. PICO
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8605

Introduced by DIWA Party-list Representative Pepito M. Pico

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 House of Representatives of the Republic 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 DISREPUTE THE ECONOMIC
SYSTEM OR WIABILITY 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/OR PRIME COMMODITIES.

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

“SECTION 5. Ilegal 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 ot 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 DETERMINED 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
GIVEN THE SEASONTIME OF THE YEAR, and unreasonably limits, refuses
or fails to sell the same to the general public OR MAKE THE SAME
AVAILABLE IN THE REGULAR CHANNELS OF PRDUCTION, TRADE,
COMMERCE, AND INDUSTRY 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 PRECEIDING BFFORE THE DISCOVERY OF THE
STOCKSIRRESPECTIVE OF THE DATE/TIME HE STARTED HIS
BUSINESS;

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(2) 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 shalll be prime facie
evidence of profiteering whenever a basic necessity or 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

(d) 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

xX XX 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 ANTIRICE
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 REPEESENTATIVES TO
OONIOUCTMONITORING AOTIVITY IN THESE ESTABLISHMENTS SHALL BE
PRIMA FACIE EVIRENCE OF THE ACT OF RICE OR CORN HOARDING
AND/OR 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 PERSONS WHO HAVE DIRECT SUPERWISION AND
CONTROL OF SUCH ESTABLISHMENTS, INLCUDING THE RESPECTIVE
PRESIDENTS, CHIEF, OPERATING OFFICERS OR MANAGERS THEREOF

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

THE ANTI-RICE OR CORN HOARI) ING ANI) 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/OPERATORVMANAGEMENT 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, WHETHER IN PHYSICAL OR
DIGIRAL 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 (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 THE
PERSONS WHO HAVE DIRECT SUPERVISION AND CONTROL OF SUCH
ESTABLISHMENTS, INLCUDING THE RESPECTIVE PRESIDENTS, CHIEF
OPERATING OFFICERS OR MANAGERS THEREOF SHOULD THE SAME BE
RESPONSIBLE FOR THE HOARDING AND/OR PROFITEERING.

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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 10. 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 11. Separability Clause. — If, for any reason, any part or provision of
this Act is declared invalid, such declaration shall not affect the other provisions of this Act.

SECTION 12 Repealing Clause. — Alll laws, executive orders, issuances, rules and
regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SECTION 13. 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,

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