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Republic of the Philippines 30 JUN 2016
HOUSE OF REPRESENTATIVES ae
Quezon City TING,
Ry:
SEVENTEENTH CONGRESS REGISTRATION UNIT
First Regular Session BILLS AND INDEX SERVICE

470

HOUSE BILL

Introduced by the Honorable Victoria Isabel G. Noel

EXPLANATORY NOTE

This bill secks to impose an automatic price control on prices of construction materials during
certain situations, amending for the purpose Republic Act (RA) No. 7581, otherwise known as the
“Price Act,” as amended.

Under RA 7581, as amended by RA 10623, it is the policy of the State to ensure the
availability of basic necessities and prime commodities at reasonable prices at all times without
denying legitimate business a fair return on investment, Thus, the Price Act has established a
mechanism which includes imposing price control on basic necessities that readily protects consumers
from inadequate supply and unreasonable price inerease on occasions of calamities, ertetgencies and.
like occurrences. s

The extent of devastation wrought by the trio of man-made calamity as the Zamboanga
assault of rebel forces, and natural calamities like the Bohol earthquake and the strongest typhoon
ver to hit the earth which was Yolanda, had struck the deepest chord of sympathy and widespread
show of generosity not only from Filipinos but from foreigners the world over. It is a phenomenon
that drove all people to extend short-term aid shown by free food distribution and long-term
assistance seen in building houses and helping the survivors regain their livelihood,

In terms of housing reconstruction, however, itis surprising that the Price Act had overlooked
the case of overpricing or price manipulation of construction materials, In fact, Section 6 of the Price
Act, as amended, allows only a freeze on the prices of basic necessities as defined under Section 3 (1)
of the Act and not of prime commodities which include construction materials as defined under
Section 3 (8) of the same Act. As a long term solution, price freeze on construction materials should
be extended for a longer period than that of basic necessities. Thus, the shorter period of 60 days for
basic necessities and the extended period of 150 days for construction materials is provided for in this
bill.

In view of the foregoing, approval of this bill is urgently requested.

VICTORIA Fl ral G. NOEL


Republic of the Philippines
HOUSE OF REPRESENTATIVES : :
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 470

Introduced by the Honorable Victoria Isabel G. Noel

ANACT
IMPOSING AN AUTOMATIC PRICE CONTROL ON PRICES OF CONSTRUCTION
MATERIALS DURING CERTAIN SITUATIONS, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 7581, OTHERWISE KNOWN AS THE “PRICE ACT,” AS
AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 3(8) of Republic Act No, 7581, as amended, is hereby further
amended to read as follows:

“SEC.3. Definition of Terms. ~ For purposes of this Act, the

(1) xxx

2x xxx xxx ce

(8) “Prime commodities” are goods not considered as basic
necessities but are essential to consumers in times of any of the cases
provided under Section 7 of this Act such as, but not limited to, flour; dried,
processed or canned pork, beef and poultry meat; dairy products not falling

under basic necessities; onions, garlic, vinegar, patis, soy sauce; toilet soap;


fertilizer, pesticides and herbicides; poultry, livestock and fishery feeds and
veterinary products; paper; school supplies; CONSTRUCTION
MATERIALS SUCH AS nipa shingles|;], sawalif;], cement{s], clinker{;],

GI sheets[s], hollow blocks[;], plywood[s}, plyboardf;}, construction

nails[s], batteries; electrical supplies; light bulbs; steel wire; AND all drugs

not classified as essential drags by the Department of Health and such other

goods as may be included under Section 4 of this Act.”

SEC, 2. Section 6 of the same Act is hereby further amended to read as follows:

“SEC.6. Automatic Price Control. ~ Unless otherwise
declared by the President, prices of basic necessities AND
CONSTRUCTION MATERIALS in an area shall automatically be frozen
at their prevailing prices or placed under automatic price control whenever:

(1) That area is proclaimed or declared a disaster area or under a

state of calamity;

(2) That area is declared under an emergency;

(3) The privilege of the habeas corpus is suspended in that area;

(4) That area is placed under martial law;

(5) That area is declared to be in state of rebellion; or

(6) Astate of war is declared in that area,

If the prevailing price of any basic necessity OR CONSTRUCTION
MATERIAL is excessive or unreasonable, the implementing agency may
recommend to the President the imposition of a price ceiling for the sale of
the basic necessity OR CONSTRUCTION MATERIAL at a price other

than its prevailing price


Unless sooner lifted by the President, price control of basic
necessities AND CONSTRUCTION MATERIALS under this section shall
remain effective for the duration of the condition that brought it about, but
not for more than sixty (60) days FOR BASIC NECESSITIES AND ONE
HUNDRED FIFTY (150) DAYS FOR CONSTRUCTION
MATERIALS: Provided, That, in the case of basic necessities that are
wholly imported and deregulated under existing laws such as, but not limited
to, household LPG and kerosene, price control thereon shall remain effective
for a period of not more than fifteen (15) days, taking into consideration the
current inventory or supply levels thereof.

The terms “disaster” and “calamity” shall include those brought
about by natural or man-made causes, whether local or foreign.” i ~
SEC.3. This Act shall take effect fifteen (15) days after ite publication in the

Official Gazette or in two (2) national newspapers of general circulation.

Approved,