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S yO@-ԍRidge Crest provided with its petition a copy of a Channel Lease Agreement entered into between it and  {O-TCI Pasco "as of March 21, 1995." See Petition, Exhibit A. Ridge Crest argues that TCI Pasco, by insisting on these requirements, failed to provide a  S-minimal level of technical support, within the meaning of Section 76.971(c).\ "S {Or-ЍSee 47 C.F.R.  76.971(c) (1995).\  S`- ` x6. ` ` TCI Pasco requests that the petition be dismissed on the grounds that it was not filed  xwithin 60 days of any alleged violation of the leased access regulation, as required by Section 76.975(d)  xyof the rule. TCI Pasco asserts that Ridge Crest's petition complains about terms and conditions set forth  xin the Channel Lease Agreement, which was signed by Ridge Crest on March 21, 1995 more than sixty  xdays before the petition was filed on August 14, 1995. TCI Pasco argues further that the petition also was  xfiled more than 60 days after Ridge Crest last complained about the furnishing of the tape deck in May  x1995 and that the petition is untimely filed in all respects. TCI Pasco also contends that it is not obligated  xto provide leased access to Ridge Crest, because Ridge Crest's programming consists largely of advertising  S - xcontent, arguing that a federal court in Sofer v. United Statess S yOt-ԍNo. 2:94cv1182, slip op. (E.D.VA., June 7, 1995), 1995 WL 576833 (E.D.Va.).s held that Section 612 of the Communications Act has no application to commercial advertising.  S - `  x7. ` ` Addressing the merits, TCI Pasco states that it entered into a Channel Leased Agreement  xwith Ridge Crest on March 21, 1995, pursuant to which Ridge Crest obtained leased access on Channel  x64 for certain half hour periods daily on Monday through Sunday. TCI Pasco states that Ridge Crest  x[asked to be placed on a nonleased access channel, which would have required preemption of an existing  x[programming. TCI Pasco asserts Ridge Crest was offered and accepted Channel 64 in the Channel Lease  S- xzAgreement. DS yO-ԍTCI Pasco states that Ridge Crest was the first user of its designated leased access channel, Channel 64. TCI Pasco states further that it provided Ridge Crest with a list of required equipment,  xincluding a tape deck, and informed Ridge Crest that all of its tape decks were currently in use, that Ridge  xlCrest commenced service utilizing a regular consumer type VCR playback deck, and presented its  xzprogramming from May 1, 1995 through June 20, 1995, except for a brief interval during which Ridge  xKCrest added an automatic playback capability to the VCR. TCI Pasco says Ridge Crest stopped presenting its programming on the leased access channel without explanation on June 20, 1995.  S- (DISCUSSION  Sz-A. Timeliness of the Petition for Relief  S*- ` ox8. ` ` We find that the Ridge Crest petition for relief was not filed on an untimely basis. Our  xzleased access dispute resolution rules require that a petition for relief be filed within 60 days from the  S- xalleged violation.L S {ON%-ԍ See 47 C.F.R. 76.975(d).L The essence of the petition is that TCI Pasco violated Section 76.971(a)(1) of the rules  xby placing Ridge Crest programming on Channel 64, and violated Section 76.971(c) by not providing a  xtape deck and by requiring indemnity insurance. These terms and conditions of carriage were embodied"f ,p(p(88"  xby the Channel Lease Agreement entered into between Ridge Crest and TCI Pasco on March 21, 1995,  xand governed the carriage of Ridge Crest's programming until Ridge Crest terminated that agreement and  xceased presenting its programming on TCI Pasco's system on June 20, 1995. The petition alleging that  xthese terms and conditions of carriage violate the Commission's leased access rules was filed on August  xM14, 1995, which is less than 60 days from the time the terms and conditions of the Agreement ceased  xyapplying to Ridge Crest's service on June 20, 1995. Accordingly, we conclude that the petition was filed  xwithin the time required by Section 76.975(d) and may not be dismissed as untimely filed. However,  x=Section 76.975(d) of the rules requires a petition for relief to be filed within 60 days of violations of the  x[leased access provisions. Therefore, we will limit relief to a period starting 60 days prior to the filing by Ridge Crest of the petition.  SH - B. Channel Placement  S - ` Px9. ` ` Addressing the merits of the other issues, first we conclude that TCI Pasco did not violate  xSection 76.971(a)(1) of the rules as written when the petition was filed. TCI Pasco defends placement  x[of Ridge Crest's programming on Channel 64, which was designated as a leased access channel and stated  xthat there existed no demand for other leased access programming that might accompany Ridge Crest's  xprogramming on that channel. The Leased Access Agreement which Ridge Crest entered into on March  x?21, 1995 also provided that Ridge Crest's programming would be carried on Channel 64. In these  xcircumstances, we cannot conclude that TCI Pasco failed to provide Ridge Crest with a genuine outlet for  xits programming. Nothing in Section 612 of the Communications Act or in our leased access regulations  xrequires a cable operator to include other programming with leased access programming on a designated  xleased access channel as Ridge Crest suggests. We note in this connection that the Commission, in the  Sh- xSecond Report, determined that once a cable operator provides a leased access programmer with a genuine  xjoutlet for its programming, we need not interfere with that operator's ability to structure its channel line xup. The cable operator may place the leased access programming on any reasonable channel location as  S-long as the tier on which it is placed has a subscribership of more than 50%.IS {OZ-ԍSee Second Report,  89.I  S- C.  #iB Provision of Technical Support  SR- ` x10. ` ` We find that TCI apparently violated Section 76.971(c) of the Commission's by not  xproviding a tape deck for the presentation of Ridge Crest's leased access programming. TCI is apparently  xzproviding the use of tape decks to other parties. Section 76.971(c) of the Commission's rules in effect  xwhen the petition was filed required cable operators to provide unaffiliated leased access users, such as  xRidge Crest, the minimum level of technical support necessary for users to present their programming.  S- x?In the Second Report the Commission clarified these requirements. Under this clarification of the  xrequirements of Section 76.971, a cable operator may not impose an additional charge for technical  S<- xsupport ordinarily provided in common to other programmers.6Z<ZS {O6#-ԍSee Second Report,  114. The Second Report noted that an operator may impose a charge to recover the cost of providing equipment such as a tape recorder or camera, if such equipment would be provided to nonleased access programmers for the same charge.6 If an operator must purchase equipment  xnot typically used by nonleased access programmers to accommodate a leased access programmer, the  xoperator may either (1) purchase the equipment for itself and lease it to the programmer at a reasonable  xyrate or (2) purchase the equipment and require the programmer to repurchase the equipment at full price"!|,p(p(88F#"  S- x[and take ownership of it.JS {Oh-ԍSee Second Report,  115.J In the future, we expect TCI Pasco to comply with these requirements. TCI  x=Pasco may impose charges in addition to the charges determined under Section 76.970 for the reasonable  xcost of other equipment and technical support actually provided to Ridge Crest only if that equipment and  x/technical support is not also provided with other nonleased access programming, as provided by 47 C.F.R.  76.971(c).  S8-  S- D. Requirement for Insurance Coverage  S- ` x11. ` ` We find that TCI Pasco did not violate Section 76.971(c) by requiring Ridge Crest to  S- x[obtain liability insurance coverage. We note that cable operators have been given protection from leased  Sp- xLaccess program liability as provided by Section 638 of the Communications Act.EpZS {Oj -ԍSee 47 U.S.C.  558.E Section 638 provides  SH - xprogram liability protection "unless the program involves obscene material."EH S {O-ԍSee 47 U.S.C.  558.E We are not aware, however,  xof any statutory provision that completely protects cable operators from all possible program carriage  xMliability, or from the filing of unmeritorious actions against cable operators despite the provisions of  S - xSection 638. ~S {O-ԍSee Anthony Giannotti v. Cable Systems Corporation, 11 FCC Rcd 10441, (Cable Serv. Bur. 1996). Moreover, the Commission does not deny cable operators the right to request  xindemnification from leased access programmers for the costs and expenses attributable to defending a  xprosecution for carriage of an allegedly obscene program, stating, "this is a reasonable term or condition  xjrelating to use of leased access channel capacity in light of the removal by Congress in amended [S]ection  S0- x638 of cable operator immunity for carriage of obscene programming."0S {O-ԍSee First Report and Order in MM Docket No. 92258, 8 FCC Rcd 998, 1007(1993), n.44.Ĉ In Anthony Giannotti v.  S - xCablevision Systems Corporation,C S yOL-ԍ11 FCC Rcd 10441 (CSB 1996)C an operator's right to require reasonable liability insurance coverage  xfor leased access programming was confirmed. In that case, we noted that the programmer had not shown  xthat the cost of the required insurance coverage is either prohibitive or imposes an unreasonable cost of doing business as an independent program producer.  SD- ` 3x12. ` ` However, the Commission recently modified the insurance requirements in the Second  S- x/Order.J2 S {O -ԍSee Second Report,  112.J In connection with the Second Order, some commenting parties contended that the cost of  xgeneral liability and errors and omissions insurance represents a significant barrier to small independent  xproducers. One party requested that the Commission set a limit on the required amount of general liability  S- xinsurance. However, the Commission declined to adopt specific conditions or limits regarding the amount  x/of coverage or the type of insurance policy that operators may require on the ground that "a specific  xMrestriction might not be appropriate for all situations." Instead, the Commission stated that it would  xrequire that insurance requirements be reasonable in relation to the objective of the requirement and placed  xon cable operators the burden of proof in establishing reasonableness. The Commission further stated that" ,p(p(88"  xdeterminations of what is a "reasonable" insurance requirement will be based on the operator's practices  xwith respect to insurance requirements imposed on nonleased access programmers, the likelihood that the  xnature of the leased access programming will pose a liability risk for the operator, previous instances of  S-litigation arising from the leased access programming, and any other relevant factors.1S {O-ԍId.1  S8- ` x13. ` ` In its petition, Ridge Crest merely asserted that a cable operator may not require  S- xindemnification from a leased access user. This issue has been settled in  Giannotti. In this decision, the  x\Commission concluded that cable operators could require reasonable indemnification provisions from  xleased access users. Consequently based on the Commission's holding at the time the application was  S- xLfiled, which is set out in the Giannotti decision, we cannot find that TCI Pasco violated the leased access  xrules by requesting an indemnification policy. However, as noted above, the Commission revisited this  SL - xrequirement in the Second Order and imposed on the cable operator the burden under the leased access  xyrules to show that an indemnification requirement is reasonable. Consequently, should TCI Pasco require  xan indemnification policy from a potential leased access user in the future, it must show its reasonableness  S -consistent with the provision's of the Second Order.  S - E. Eligibility for Commercial Leased Access Channels  S8- ` x14. ` ` Finally, we reject TCI Pasco's argument that it has no obligation under Section 612 of  xthe 1992 Cable Act and the Commission's implementing regulations to make a leased access channel  xyavailable for the presentation of programming that includes commercial advertising. Section 612(a) states  x=that the purpose of the commercial leased access requirement is to promote competition "in the delivery  xof diverse sources of video programming and to assure that the widest possible diversity of information  xsources are made available to the public from cable systems in a manner consistent with the growth and  SH- xdevelopment of cable systems.">HZS yOB-ԍ47 U.S.C.  532(a).> Section 612(b) implements this goal by mandating that cable operators  S - x"designate channel capacity for commercial use by persons unaffiliated with the operator."> S yO-ԍ47 U.S.C.  532(b).> Cable  x.operators are required to designate stated percentages of activated channels for commercial leased access  S- x/use.1zS {O-ԍId.1 The Commission's dispute resolution rules provide that any person aggrieved by the failure or  xrefusal of a cable operator to make commercial channel capacity available in accordance with the  xprovisions of Section 612 or the Commission's implementing regulations may file a petition for relief with  SX-the Commission.IX S yO"-ԍ47 C.F.R.  76.975(b) (1995)..I  S- ` x15. ` ` We reject the argument that Sofer vs. United Statess>] yOD%-ԍNo. 2:94cv1182, slip op. (E.D.VA., June 7, 1995), 1995 WL 576833 (E.D.Va.).s supports the proposition that Ridge  S- xCrest's programming does not qualify for leased access channels. Sofer involved a claim that a cable  xoperator refused to sell commercial advertising time on a cable system and other unspecified allegations", ,p(p(88<"  S- xof violations of Section 612 and related regulations. The court in Sofer found that Section 612 and related  S- xCommission regulations have no application to commercial advertising. However, the case before us here  S- xdoes not involve the purchase of commercial advertising as was the case in Sofer. Instead, this case  xzinvolves a request by a video production company for a leased access channel, designated for that use  Sd- xpursuant to Section 612, for the presentation of program productions. Nothing in Sofer or in Section 612  S>- xLsuggests that the inclusion of commercial advertising content in video program productions?>S {O-ԍSee  3 above.? disqualifies  xan independent video program producer, such as Ridge Crest, from use of leased access channels for the  xpresentation of such program productions. Indeed, cable operators are precluded from considering the  xcontent of leased access programming, except to the extent necessary to establish a reasonable price for  S- xsuch programming.ZS {O - xԍSee 47 U.S.C.  532(c)(2). (This section provides that cable operators are prohibited from considering the content of any leased access programming except "to the minimum extent necesary to establish a reasonable price")  Accordingly, we direct TCI Pasco to provide such leased access channel capacity as may be requested by Ridge Crest consistent with the requirements of Section 612.  S - 1 ORDERING CLAUSES ă  S - ` x16. ` ` For the foregoing reasons, IT IS ORDERED that the petition for relief of Ridge Crest  S - xy(a) IS GRANTED in part insofar as indicated in Paragraph 10 and Paragraphs 12 through 15 and (b) in  S^-all other respects IS DENIED.  S6-  S- ` _x17. ` ` This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules, 47 C.F.R.  0.321. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` ` hhMeredith J. Jones  S-x` ` hhChief, Cable Services Bureau