ZOE Broadcasting Franchise Renewal Act

Section 2 amends Section 1 of Republic Act No. 7297 to state that the franchise grants the right to operate for commercial purposes and in the public interest.
The franchise covers radio and television broadcasting stations throughout the Philippines, where frequencies and/or channels are still available for radio and/or television broadcasting.
The franchise permits transmission for digital terrestrial television system through microwave, satellite, or whatever means, and permits the use of any technologies in television and radio systems, including their technological auxiliaries or facilities.
The franchise includes the operation of special broadcast and other program and distribution services, and relay stations.
The franchise allows the grantee to install radio communication facilities for the grantee’s private use in its broadcast services.

Section 3 requires the grantee to comply with constitutional requirements encouraging public participation in public utilities.
The grantee must offer to Filipino citizens at least thirty percent (30%) of its outstanding capital stock (or a higher percentage if required by law) in any securities exchange in the Philippines.
The Filipino public offering must be made within five (5) years from the commencement of its operations under Section 3.
If a public offer of shares is not applicable, the grantee must implement the establishment of cooperatives and other methods of encouraging public participation by citizens and corporations operating public utilities.
Noncompliance with the dispersal requirement renders the franchise ipso facto revoked.

Section 4 repeals Section 8 of Republic Act No. 7297 on tax provisions.
After Section 4 takes effect, the repealed tax provision no longer governs the franchise’s tax rules.

Section 5 provides that all other provisions of Republic Act No. 7297, as amended by Republic Act No. 7968, continue to be in full force and effect.
Continuation under Section 5 applies only to provisions that are not inconsistent with Republic Act No. 10888.

Section 6 states that if any section or provision of Republic Act No. 10888 is held invalid, all other provisions not affected remain valid.

Section 7 makes the franchise subject to amendment, alteration, or repeal by Congress whenever the public interest requires.
Section 7 also provides that the franchise shall not be interpreted as an exclusive grant of the privileges granted by the Act.

Section 8 provides that Republic Act No. 10888 takes effect fifteen (15) days from the date of its publication.
Publication must be made in at least two (2) newspapers of general circulation in the Philippines.
The Act is approved on July 17, 2016 and it lapsed into law on JUL 17 2016 without the President’s signature.

Republic Act No. 10888 was passed by the House of Representatives and the Senate on October 9, 2015 and May 23, 2016, respectively.
The Act originated in the House of Representatives and became law through the constitutional mechanism under Article VI, Section 27 (1).
Legislative signatories include Franklin M. Drilon (President of the Senate) and Feliciano Belmonte Jr. (Speaker of the House of Representatives), with Oscar G. Yabes (Secretary of the Senate) and Marilyn B. Barua-Yap (Secretary General, House of Representatives).