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W!@(#,h@\  P6G;hP H5!,i,5\  P6G;,P \5hC:,%2Xh*f9 xr G;XX2a=5,&a\  P6G;&P 2e=5,&e4  pG;&\{,W80,%0W*f9 xr G;XH7!,,T,74  pG;,P:% ,J:\  P6G;JP \0_=5,%&_*f9 xr G;&XP=% ,4IJ=4  pG;J#$%h 0"P(.39p?rRBp RRFr RIp R4Mp RPr RT yO- X   ) S-  #&a\  P6G;&P#Federal Communications Commission`}(#DA 972205 ă  yxdddy )v3 Before the Federal Communications Commission  yO} Washington, D.C. 20554 ă  S -#&a\  P6G;&P#In the Matter of hh@h)  S-Petition for Relief of hh@h) x` `  hh@h)  S-CARTOGRAPHICS PUBLICATIONS, INC.,@h)  S-X` hp x (#%'0*,.8135@8:jurisdiction to hear the complaint. In this Order, after considering the complaint and TCI's response  x[thereto, we dismiss petitioner's complaint and accordingly deny as moot TCI's petition for review of the  x[Bureau's previous order DA 941300 which denied TCI's initial motion to dismiss the complaint for lack of jurisdiction.  S4#- 2. Background  S$- ` x3. ` ` It is undisputed that CPI distributes programming which includes "adultoriented  x.presentations with sexually oriented content" during night hours over commercial leased access channels"%X,**88B'"  S- xjin several cable markets. 7V yOh-ԍComplaint at 1.7 In its complaint, CPI asserts that TCI has refused to carry CPI's programming  xunless the programming is scrambled, segregated onto a separate channel apart from other programming,  xand offered in a manner that provides customers an opportunity to consent affirmatively to receive the  S- x.programming. CPI states that TCI has relied on Section 76.701(b) and (c)X yO- xԍThese rules prescribe procedures for cable companies that have not established their own written procedures  {OH-ԩ for segregating and blocking indecent programming. See 47 C.F.R.  76.701(b), (c).  of the Commission's rules as  xgrounds for imposing these conditions on the carriage of CPI's programming. CPI asserts that TCI  xLcannot legally rely on these rules because the rules have been stayed by order of the United States Court  S- xof Appeals for the District of Columbia Circuit.9 yOb -ԍComplaint at 34.9 Thus, CPI asserts that "TCI is unilaterally censoring  S-CPI's programming in blatant violation of law and in defiance of the stay."7B yO -ԍComplaint at 2.7  S- ` x4. ` ` TCI asserts in opposition that it does not rely solely on Section 76.701 as authority for  x>imposing conditions on the carriage of CPI's "adultoriented" programming. Instead TCI asserts that  SH - xSection 612(h) of the Communications Act>H  yO-ԍ47 U.S.C.  532(h).> permits cable operators to establish their own written polices  xLfor setting conditions on carrying such programming, regardless of whether the Commission rules for the carriage of "adultoriented" programming have been stayed.  S - ` x5. ` ` TCI further asserts that its decision to require that the programming be scrambled is a  xgood faith exercise of sound business judgment, designed to assure that possible adverse customer reaction  xto such programming will not detrimentally affect the operation, financial condition or market development  S0- xzof the cable system, consistent with Section 612(c)(1) of the Communications Act.A0b  yO2-ԍ47 U.S.C.  532(c)(1).A In addition, TCI  x.submits that CPI has not presented clear and convincing evidence as required under Section 76.975(g) of  x0the rules that the requirement to scramble CPI's programming and offer it only to customers who  xaffirmatively request it is unreasonable and in bad faith. Finally, TCI states that it has no intention of  xaltering or affecting the content of CPI's programming, other than the proposed scrambling and segregation of the programming to a protected channel.  S@-  S- ` A x6. ` ` We note that Congress imposed on cable operators commercial leased access requirements  S- xwhen Section 612 was added to the Communications Act of 1934 in 1984.m  {O"-ԍSee Pub. L. 98547,  2, 98 Stat. 2782, Oct. 30, 1984.m Section 612(b) requires  xLoperators of cable systems with 36 or more activated channels to set aside part of their channel capacity  S- xfor use by programmers that are not affiliated with them.   yO%- xԍThe amount of channel capacity an operator must set aside is based on a system's activated channel capacity.  {O&-See 47 U.S.C.  532(b). Section 612(c)(2) bars a cable operator from  xlexercising editorial control over, or considering the content of, such programming, with the limited"x ,p(p(88"  xexception that content may be considered for the purpose of establishing the charges for the use of the  S-designated channels.A  yO@-ԍ47 U.S.C.  532(c)(2).A  S- ` nx7. ` ` Congress subsequently amended Section 612 by the enactment of Sections 10(a) and 10(b)  S`- xof the Cable Television Consumer Protection and Competition Act of 1992 (the "1992 Act"). `X {OX- xԍSee Pub. L. No. 102385,  10(a) and 10(b), 106 Stat. 1460, Oct. 5, 1992. Section 612 is codified as 47 U.S.C.  532. Section  S8- x10(a) of the 1992 Act, codified as Section 612(h) of the Communications Act,H 8 {O -ԍSee 47 U.S.C.  532(h).H provides that cable service offered pursuant to Section 612(b)  p5 ` shall not be provided, or shall be provided pursuant to conditions, if such cable  pservice in the judgment of the franchising authority or the cable operator is  pobscene, or is in conflict with community standards in that it is lewd, lascivious,  pfilthy, or indecent or is otherwise unprotected by the Constitution of the United  S -States.> Dʑ yO-ԍ47 U.S.C.  532(h).>  - `  X` hp x (#%'0*,.8135@8:8 yOl-ԍ116 S.Ct. 2374 (1996).> held Section 612(h) of the Communications Act, which permitted cable operators to  xestablish carriage conditions of their own, did not violate the United States Constitution's First  SF- xAmendment,NF {O-ԍId. at 2390 (plurality opinion).N but struck down Section 612(j) of the Communications Act, and our rules implementing  x{Section 612(j), 47 C.F.R. 76.701(b), (c), (g), because Section 612(j) and the abovereferenced rules  S-violated the First Amendment.:Z  {O -ԍId. at 2394.: X` hp x (#%'0*,.8135@8:8 yO-ԍ47 U.S.C.  532(h).> As set forth above, in the First  S- xReport, the Commission read Section 612(h) to leave cable operators the discretion to exercise "their  xkreasonable belief about which programming is or is not indecent," and to determine whether proffered  S- x]programming should be blocked for the reasons stated in that subsection.ZX {O -ԍSee First Report at 10021003, paras. 2931.Z The Commission also  xconcluded that the Congress deliberately omitted any role for the Commission in implementing Section  x612(h) and that the federal courts are the only appropriate fora for resolution of disputes regarding denial  xof access pursuant to that section. In its response, TCI states that it has established policies pursuant to  xSection 612(h) to impose conditions on the carriage of CPI's programming. Because the question as to  xywhether TCI's policies imposing conditions on carriage comply with Section 612(h) is one for the courts,  xand not the Commission, we cannot decide whether TCI properly denied carriage of CPI's programming  S -and therefore must dismiss CPI's complaint.  yO6- x<ԍAfter the complaint was filed, Congress passed Section 505 of the Telecommunications Act of 1996 which  xrequires a programmer to scramble sexually explicit adult video service programming and, until a programmer  xcomplies with this requirement, for a distributor to limit the programming to hours of the day when children would  {O- xhhave less access to the programming. See 47 U.S.C.  561. However, whether Section 505 applies to the complaint  {OX-was not raised by the parties and we do not address Section 505 in this Order.  S\- ` Ax12. ` ` In addition, because we are dismissing the underlying complaint, TCI's petition for review  xof our Order DA 941300, which denied its motion to dismiss the complaint on other grounds, is moot; thus, the petition for review will also be dismissed.  S- ` x13. ` ` Accordingly, IT IS ORDERED , pursuant to authority delegated by Section 0.321 of the  xCommission's rules, 47 C.F.R.  0.321, that the complaint of Cartographic Publications, Inc. in File No.  Sl-4337L is hereby DISMISSED and that TCI's petition for review is also DISMISSED AS MOOT . X` hp x (#%'0*,.8135@8: