SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
Second Regular Session )

HOUSE OF REPRESENTATIVES
‘
HousE BLL No__46'77

Introduced by Representative Susan A. Yap

EXPLANATORY NOTE

Having noted the problems arising from the enforcement of RA No. 7581 or the Price
Act, particularly during calamities or emergencies, this proposal seeks to address the identified
policy gaps.

First, this measure includes economic sabotage in the Act and defines it as “any act or
activity which undermines, weakens, or renders into disrepute the economic system or viability
of the country”. Second, it specifically defines illegal acts such as price manipulation in the sale
of basic necessities and prime commodities as an act of economic sabotage. Third, it provides
clearer criterion for hoarding and profiteering to expedite enforcement,

Most importantly, this proposal provides the regulatory regime needed to implement the
Price Act effectively. It includes the National Food Authority in the implementing agencies and
creates the Anti-Rice or Corn Hoarding and Profiteering Task Force in every province, city, or
municipality tasked with monitoring the inventories of all rice or corn mills, warehouses and
stockhouses to check on hoarding, Moreover, it identifies the members of the Task Foree to
include the Local Chief Executive, the local Chief of Police and representatives fiom concerned
national government agencies, the farmers’ sector, and the consumers’ organization,

Finally, it provides stiffer penalties for acts of rice or com hoarding or profiteering. These
illegal acts of price manipulation shall be punishable by imprisonment for a period of not less
than ten (10) years or more than twenty (20) years and a fine of not less than one hundred
thousand pesos.

In order to protect the poor who are disproportionately affected by calamities, the passage
of this bill is urgently sought.

REP. SUSAN AY:
Second District of Tarlac


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES — )
Second Regular Session )

HOUSE OF REPRESENTATIVES

w.No._4677

HOUSE

Introduced by Representative Susan A, Yap

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 enacted by the Senate and the Hlouse of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title, — ‘This Act shall be known as the “Anti-Rice or Com Hoarding and
Protiteering Act.”

SECTION 2, Section 3 of Republic Act 7581 is hereby amended to read as follows:
“Sec, 3. Definition of Terms.- For purposes of this Act, the term:
25a PS 8 OS

(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.

@) "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 RE
AND CORN.

RENCE TO RIC

x Ieee, x
SECTION 3. Section 5 of Republic Act 7581 is hereby amended to read as follows:
“Sec. 5. [egal 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
le or other methods of

production, ma

jufacture, importation, storage, transport, distribution,


disposition of goods to engage in the following acts of price manipulation of the price of any basic
necessity or prime commodity:

(1) Hoarding, which is the undue accumulation OR STORING/KEEPING by « person
or combination of persons of any basic necessity or prime commodity beyond his ot
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 reproduction, trade, commerce and industry. ‘The all be prima facie
evidence of hoarding when a person has stocks of any ba ssity 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 ime of discovery of the
sss, The determination of a person's usual inventory shall be reckoned from the third
month immediately preceding before the discovery of the stocks jn case the person
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

IRRE!

TIVE OF THE DATE/TIME HE STARTED HIS BUSINESS,

(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 shall be prima facie
evidence of profitecting whenever a basic necessity or prime commodity being sold:

(@) has no price tag;
(b) is misrepresented as to its weight or measurement,

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

(d) whenever a person taises the price of any basic necessity or prime commodity he sells
ot 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 provisions shall not apply; and

cs 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 AGENCE 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 THE



ESTABLISHMENTS SHALL BE PRIMA FACIE EVIDENCE OF THE ACT OF RICE
OR CORN HOARDING AND PROFITEERING BEING PERPETRATED THEREAT:
PROVIDED FINALLY, THAT IF THESE ESTABLISHMENTS 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 I'TS CHAIR;
ONE (1) REPRESENTATIVES FROM THE PROVINCIAL/CITY FIELD/BRANCH
OFFICE OF THE IMPLEMENTING AGENCY CONCERN 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 STOCKHOUSES REQUIRED TO SUBMIT TO THE TASK
FORCE A DULY-CERTIFIED AND SWORN MONTHLY R T
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:

“Sec. 15. Penalty for Acts of Ille
.gal price manipulation of any basic necessity or prime commodity under Section 5 heteof shall
suffer the penalty of imprisonment for a period of not less than five (6) years nor more than Fifteen
(15) years, and shall be imposed a fine of not less than Five thousand pesos (P5,000) nor more than
‘Iwo million pesos (P2,000,000). PROVIDED THAT THE ACTS OF RICE OR CORN
HOARDING OR PROFITEERING SHALL BE PUNISHABLE BY IMPRISONME!
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 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 RICE
SHALL BE CONFISCATED AND FORFEITED IN FAVOR OF THE GOVERNMENT.

Price Manipulation. - Any person who commie

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 after its effectivity.

SECTION 7. Separability Clause. ~ The provisions of this Act ate hereby declared to be
separable from, and independent of, one another and that should one ot 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 iss
inconsistent with this Act is hereby repealed, and/or modified accordingly

rules and regulations

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

Approved,