SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

House Bit no,__ 4474

INTRODUCED BY REPRESENTATIVE DAKILA CARLO E. CUA

EXPLANATORY NOTE

‘The prevailing crisis involving the supply and prices of rice and corn -
our people’s staple food — has suddenly become pervasive, it is now a
serious national concern.

More so, it has spawned the unwanted emergence and proliferation of
unscrupulous rice traders and dealers obsessed only with profit, and
without at all a tinge of nationalism in the manner they conduct their
business.

The result is equally, if not far more, disastrous than the ebb supply
and skyrocketing cost of the commodity itself: the unabated,
conflagration-like spread of the incidence of rice and corn hoarding
and profiteering whose debilitating effect, especially among the less
fortunate and those thriving within the poverty line vortex, is now felt
in every nook and corner of the land.

‘The weight of culled perceptions point to the inadequate, if outmoded,
penalties provided for, inter alia, the act of rice hoarding, in existing
legislations such as Republic Act No. 7581, otherwise known as the
Price Act, as the principal, if overriding reason for the magnified
persistence of rice hoarding and profiteering. These penalties are now
deemed to be disproportionate to, and diminish the seriousness or
gravity of, the prohibited act. Obviously, they need drastic revision if
they were to be deterrent they were contemplated to be.

This primordially, is the thesis behind this proposed bill. Note that the
bill upgrades the seriousness of the prohibited act to accentuate its
highly deleterious effect on people’s lives more than to justify its
escalated penal sanction therein.

D: CARLO E. CUA


SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES

HOUSE BILLNo._ 4474

INTRODUCED BY REPRESENTATIVE DAKILA CARLO E. CUA

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
Philippines in Congre:

nate and the House of Representatives of the
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 XK X

(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 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 of any necessity or prime commodity:

(1) 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;



(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 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 =

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
to read as follows:

ct 7581 is hereby amended

“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,