Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:

First Regular Session

= 1229
House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING
OF ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL
EMERGENCY

EXPLANATORY NOTE

Present economic conditions have not spared nations in the international
community much more Third World economies like the Philippines. To be able to
address this pressing concem, our government should adopt a two-pronged
approach by: (1) maintaining our economic viability and (2) ensuring that the
effects to our citizens are kept at a minimal level

Dependent on certain commodities, such as oil and petroleum products,
which are essential to the functioning of our economy and to the public health,
safety and welfare, a shortage or threatened shortage or increase in the price of
such commodities can significantly injure or threaten our economy or public
health, safety or welfare, thereby endangering the national security.

Suppliers of these essential commodities can use abnormal market
disruptions, including unexpected changes in weather conditions, acts of nature,
civil disorders, war or other military actions, catastrophic loss of an energy source
or other extraordinary adverse circumstances, to profiteer in these essential
products, even when these actions may undermine our economy or otherwise
threaten public health, safety and welfare.


Our laws, despite being enforced to the fullest, do not sufficiently control
such profiteering especially in emergency-situations. This can injure our
economy even if there is strong evidence of a provable violation of the antitrust or
unfair trade practice laws. We need to discourage such practice and punish
those who engage in economic sabotage much to the detriment of our country.

We also need to assist our citizens so that they can anticipate and
address economic emergencies by keeping low and stable the prices of basic
commodities thereby allowing them to maximize their limited resources.

This bill seeks to give the President limited power to declare a state of
economic emergency and punish those guilty of profiteering from unjustifiably
injuring our country and by taking advantage of our people in the event of
abnormal market disruptions as indicated in Section 2 of this Act.

In view of the urgency of this proposed measure, its immediate passage is
earnestly requested.

DIOSDADO M GAL ARROYO GLOR Michal ARROYO
Second District, Camarines Sur S¢¢ond District, PAnpanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1229

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING
OF ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL
EMERGENCY

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 “National
Emergency Anti-Profiteering Act of 2010.”

SECTION 2. Definition. — For purposes of this Act, the term -

A. National economic emergency - means, as determined by the
President, an abnormal market disruption (whether actual or imminently
threatened) resulting from extraordinary weather conditions, acts of
nature, catastrophic failure of a source of energy, strike, civil disorder, war
or other military action, or national emergency, that:

1. causes an actual or threatened shortage, or an actual or
threatened increase in the price of an essential commodity, and

2. is likely to significantly injure the economy of the Philippines or
the public health, safety or welfare.


When the President declares a national economic emergency, he/she
shall designate the essential commodities with respect to which that
national economic emergency exists. Notice of the President's
determination that a national economic emergency exists and his/her
designation of the essential commodities with respect to which that
national economic emergency exists shall be given by immediate
publication of a Presidential proclamation

B. Essential commodity is -

1. crude oil, propane, gasoline, diesel fuel, kerosene, home heating
il, aviation fuel, or other petroleum distillate, or

2. a commodity that the President determines to be a commodity -
a. of significant importance to the Philippine economy, or

b. vital or necessary to the public health, safety or welfare, a
disruption in the supply, or sudden increase in the price, of
which is likely to significantly injure the economy of the
pines or public health, safety or welfare, and thereby
threaten the national security. Notice of such determination
shall be given by publication of a Presidential proclamation:

C. Listed essential commodity - means any essential commodity. with
respect to which the President has designated that a national economic
emergency exists.

D. Profiteer - means to offer for sale, sell, transport, or deliver an essential
commodity at an excessive price, or to place excessive restrictions or
conditions upon the sale, delivery or transportation of an essential
commodity.

E. Excessive price - is one that is not justified by the seller's actual costs
of acquiring, producing, selling, transporting, and delivering the actual
product sold, plus a reasonable profit. In calculating the seller's actual
costs, no allowance shall be made for the replacement costs of an
essential commodity if the seller is reasonably assured of recouping the
replacement costs as a part of the price of subsequent sales of an
essential commodity. It shall be prima facie evidence of an excessive
price that the increase in the seller's price for a listed essential commodity
during a national economic emergency exceeds the increase in the seller's
actual costs for actual product sold.

SECTION 3. Prohibited Act. — Following publication of a Presidential
proclamation declaring a national economic emergency and designating the


essential commodities with respect to which that national economic emergency
exists, for the duration of that national economic emergency, no person shall
profiteer with respect to any listed essential commodity.

SECTION 4. Penalty. - Any person who profiteers in a listed essential
commodity in violation of Section 3, shall suffer a penalty of to up to 5 years
imprisonment and a fine of up to five hundred thousand pesos (Php 500,000.00)
or both, and shall be required to disgorge all profits earned on essential
commodities with respect to which profiteering occurred

SECTION 5. Limitation on Length of Emergency; Extension. ~ A national
economic emergency, as declared by the President pursuant to Section 3 of this
Act, shall be in effect for not more than 180 days from the date such emergency
is declared, unless extended by Presidential declaration that a national economic
emergency continues to exist, notice of which shall be immediately published as
a Presidential proclamation. Each extension thereof shall last for not more than
90 days, but there shall be no limit on the number of times the President may
extend a national economic emergency.

A national economic emergency, or a designation of one or more essential
commodities with respect to which the national economic emergency exists, May
be terminated by passage of a joint resolution of Congress. Nothing in this
subsection shall prohibit the President, through published Presidential
proclamation, from terminating a national economic emergency or a designation
of one or more essential commodities with respect to which said emergency
exists.

SECTION 6, Separability Clause. — if any provision or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting

SECTION 7. Repealing Clause. — Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to or is inconsistent with the provision of this Act is hereby
repealed, modified, or amended accordingly.

SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation

Approved,