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

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 4837

Introduced by Representative Emmeline Y. Aglipay

EXPLANATORY NOTE

‘The act of denying our countrymen access to basic necessities such as rice and
com is one that implies clear malice and one that poses a clear danger to the well-being
of Filipinos. To perform such an act during a time of calamity, when there are people for
whom access to those necessities can spell the difference between life and death, is a
truly heinous act which must be classified and punished as such.

The hoarding of basic necessities is not a new phenomenon, In 2008, a special
NBI task force was assembled to address the problem of rice hoarding, and cases were
filed against traders under Republic Act 7581. A 2011 paper by the Philippine Institute of
Development Studies stated that in the period of 1994-2009, the country's rice production
was actually more than our rice consumption, yet we remained the world's largest rice
importer, and one of the factors may be due to "hoarding" behavior. 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 pernicious practice that has gone 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. To this end, this
bill 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.

nv Fer
EMMELINE Y. AGLIPAY
Representative, DIWA Party-list,

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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CON s
First Regular Session

4637

HOUSE BILL NO.

Introduced by Representative Emmeline Y. Aglipay

AN ACT CONSIDERING RICE OR CORN HOARDING AND PROFITEERIN
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

'UBLIC ACT NO, 7581, OTHERWISE KNOWN AS THE PRICE ACT, AND

FOR OTHER PURPOSES

RE

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 Com
Hoarding and Profiteering Act”

CTION 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
UNDERME » 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/OR 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:

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(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:

TION 5. Megal 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
F 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 lev
AS DETERMINED BY THE IMPLEMENTING AGENCY

“RNED; or (B) the unreasonable limitation or refusal to dispose of,
istribute the stocks of any basic necessity or prime commodity to
the general public; or (1 (C) the unjustified RI MOVAL 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 : necessity or prime commodity IN A QUANTIT

THAT IS fifty percent (50%) higher than his usual inventory GI

THE SEASON/TIME OF THE YEAR, and unreasonably limi

or fails to sell the same to the general public OR MAKE THE

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 invent all 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 busins 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;

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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 shall
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

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 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 ACTIVITY IN THE
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
ESTABLISHEMENTS ARE OWNED BY JURIDICAL PERSONS, CRIMINAL
LIABILITY FOR VIOLATION OF THIS SECTION SHALL ATTACH TO THE
PERSONS WHO HAVE DIRECT SUPERVISION AND CONTROL OF SUCH
ESTABLISHMENTS, INLCUDING THE RESPECTIVE PRESIDENTS, CHIEF

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

THE ANTI-RICE OR
FORCE SHALL BE COMPOSED OF THE L
THE LOCAL GOVERNMENT UNIT CONCERNED, WHO SHALL ACT A‘
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.

"ORN HOARDING AND PROFITEERING TASK

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 ST! ‘THER IN
PHYSICAL OR DIGIRAL FORM; PROVIDED 1 TO DO SO
SHALL BE PRIMA FACIE EVIDENCE OF THE ACT OF RICE OR CORN
HOARDING AND PROFITEERING BEING  PERP IN THE

ESTABLISHMENT CONCERNED,

SEC
follows:

TION 5. Section 15 of Republic Act 7581 is hereby amended to read as

tion 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
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
PHILIPPIN 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 SUPERVIS! AND CONTROL OF SUCH ESTABLISHMENTS,
INLCUDING THE RESPECTIVE PRESIDENTS, CHIEF OPERATING

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AN


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.

SEC. 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.

SEC. L1, 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.

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

SEC. 13
publicatio
‘Approved,

Effectivity. s Act shall take effect thirty (30) days after its complete
in the Official Gazette or in at least two (2) newspapers of general circulation,

Approved.

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