Franchise to ZOE Broadcasting for Luzon

Section 2 requires the grantee to construct and operate its stations and facilities in a manner that results in minimum interference on wavelengths or frequencies of other existing stations (or those that may be established by law).
The operations must not diminish the grantee’s right to use its selected wavelengths or frequencies.
The operations must not diminish the quality of transmission or reception on the grantee’s selected wavelengths or frequencies.
The grantee must maximize rendition of the grantee’s stations and/or availability thereof.

Section 3 requires the grantee to secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for its stations.
The grantee must not use any frequency in the radio/television spectrum without authorization from the NTC.

Section 4 requires the grantee to provide adequate public service time so the Government can reach the population on important public issues through the broadcasting stations.
The grantee must provide sound and balanced programming at all times.
The grantee must promote public participation, including community programming.
The grantee must assist in public information and education functions.
The grantee must conform to the ethics of honest enterprise.
The grantee is prohibited from using its station to broadcast or disseminate:
- Obscene and indecent language, speech, act or scene; or
- Deliberately false information or willful misrepresentation to the detriment of the public interest; or
- Content that incites, encourages, or assists in subversive or treasonable acts.

Section 5 authorizes the President of the Philippines—in times of rebellion, public peril calamity, emergency, disaster or disturbance of peace and order—to:
- Temporarily take over the stations of the grantee; or
- Temporarily suspend operation of any station for public safety, security and public welfare; or
- Authorize temporary use and operation by any Government agency.
The President’s actions under Section 5 require due compensation to the grantee for the use of the stations during the period of such Government operation.

Section 6 sets the franchise term at twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
Section 6 provides that if the grantee fails to operate continuously for two (2) years, the franchise is deemed ipso facto revoked.
Section 7 requires acceptance in writing of the franchise within sixty (60) days after approval of this Act.
Upon giving acceptance, the grantee must exercise the privileges granted.
Section 7 declares that nonacceptance renders the franchise void.

Section 8 makes the grantee and its successors or assigns liable to pay the same taxes on real estate, buildings and personal property, exclusive of the franchise, as other persons or corporations.
Section 8 imposes a franchise tax equivalent to three percent (3%) of all gross receipts of the radio/television business transacted under the franchise.
The three percent (3%) franchise tax is in lieu of all taxes on this franchise or earnings thereof.
Section 8 preserves the grantee’s liability for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless that enactment is amended or repealed, in which case the amendment or repeal applies.
Section 8 requires the grantee to file the return with and pay the tax due to the Commissioner of Internal Revenue or a duly authorized representative under the National Internal Revenue Code.
Section 8 provides that the return is subject to audit by the Bureau of Internal Revenue.

Section 9 prohibits the grantee from requiring previous censorship of any speech, play, act, scene, or other matter to be broadcast and/or telecast.
Section 9 provides that if broadcast content constitutes a violation of law or infringement of a private right, the grantee is free from any liability, civil or criminal for such speech, play, act, scene, or other matter, subject to the cut-off duty.
During any broadcast and/or telecast, Section 9 requires the grantee to cut off from the air content if:
- The tendency is to propose and/or incite treason, rebellion or sedition; or
- The language used is indecent or immoral; or
- The theme is indecent or immoral.
Section 9 provides that willful failure to cut off under these circumstances is a valid cause for cancellation of the franchise.

Section 10 requires the grantee to hold national, provincial and municipal governments of the Philippines harmless from claims, accounts, demands, or actions arising from accidents or injuries to property or persons caused by the construction or operation of the stations.

Section 11 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
Section 11 also prohibits transferring the controlling interest in the grantee to any such private person, firm, company, corporation, or entity.
Section 11 requires prior approval of the Congress of the Philippines before any sale, transfer, assignment, lease, or usufruct that would otherwise fall under the prohibition.
Section 11 provides that any person or entity to which the franchise is sold, transferred, or assigned must be subject to all the same conditions, terms, restrictions and limitations of this Act.

Section 12 establishes a separability clause: if any section or provision is held invalid, all other provisions not affected remain valid.
Section 13 subjects the franchise to amendment, alteration or repeal by Congress when the public interest so requires.
Section 13 declares the franchise must not be interpreted as an exclusive grant of the privileges provided in this Act.
Section 14 requires compliance with and submission to any general broadcast policy law that may be enacted in the future.

Section 15 requires the grantee to submit an annual report to the Congress of the Philippines on:
- compliance with the terms and conditions of the franchise; and
- the grantee’s operations.
The annual report must be filed within sixty (60) days from the end of every year.

Section 16 provides that the Act takes effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines.
Republic Act No. 7297 was approved on March 26, 1992.
The Act originated in the House of Representatives and was finally passed by the House of Representatives on February 3, 1992 and by the Senate on February 7, 1992.