Telecom
Senate Panel Weighs Fee Changes For Universal Service
     The Senate Commerce Committee this week began exploring changes to the universal service fund that aims to guarantee all Americans access to telecommunications services. In the first of two hearings on the issue, telecom providers differed on how to change the structure for paying into the fund. Options include requiring all providers of communications services to contribute or assessing fees based on the number of phone numbers or network connections. The second hearing focused on the distribution of funds to carriers, with Republicans in attendance expressing frustration at the perceived lack of innovative ideas from witnesses. Several senators said the fund is creating disincentives to investment and to the rollout of high-speed Internet services. Sen. John Sununu, R-N.H., said four of the witnesses -- officials from a rural telephone coalition and a rural cell provider, a state telecom regulator, and an educational technologist -- "all have a vested interest in the existing system and the way it is designed."

Television
Broadcasters Hear Views On Video, Telecom Issues
     The Senate Commerce Committee will consider legislation on television "indecency" this spring, committee Staff Director Lisa Sutherland announced. But she would not specify whether the bill would be limited to broadcasters or also affect cable and satellite providers. Sutherland, who works for panel chairman Ted Stevens, R-Alaska, told the National Association of Broadcasters that the committee would consider provisions to base indecency fines on stations' ability to pay. The planned bill would be the counterpart to House-passed legislation that would raise fines for broadcast indecency from $32,500 to $500,000 per infraction. NAB spokesman Dennis Wharton said broadcasters support "responsible self-regulation" of program content instead. Also at the NAB event, Texas Republican Joe Barton, chairman of the House Energy and Commerce Committee, confirmed that his panel will consider a streamlined bill to grant the Bell telecom firms relief from local rules for offering video franchises.

Lobbying
Telecom, Tech Firms Spend $152 Million For Lobbying
     Companies and associations in the communications and technology sectors spent $152.4 million on federal lobbying during the first half of 2005, according to new information compiled by the nonpartisan PoliticalMoneyLine. That placed the industry second only to healthcare companies through June 2005. The total represents an $8 million increase over the second half of 2004, a $14 million boost over the first half of that year and a $23 million hike over the second half of 2003. The biggest tech spender for all of 2005 was the U.S. Telecom Association, whose members include the regional Bell companies. Microsoft ranked second, and the National Association of Manufacturers was third. The rise in expenditures mirrors the upswing in activity on Capitol Hill related to updating telecom, media and cable laws. "They're definitely gearing up for this next telecom rewrite," said John Dunbar of the Center for Public Integrity.

Security
Senate Passes Bill To Extend Anti-Terrorism Law
     The Senate voted 89-10 to reauthorize the 16 expiring provisions of the anti-terrorism law known as the USA PATRIOT Act. Fourteen of the provisions will become permanent, with the remaining two set to expire in 2009. Earlier in the week, the Senate voted to limit debate on extending the 2001 statute. The House is scheduled to approve companion legislation next week, before the provisions expire March 10. Democrats who had fought to include additional civil-liberties protections in the legislation criticized the move. "I am deeply disappointed that we have largely wasted this opportunity to fix the obvious problems with the PATRIOT Act," Russell Feingold, D-Wis., said on the Senate floor. Sen. Patrick Leahy, D-Vt., who also had opposed the reauthorization legislation in its current form, voted against it Thursday.

Privacy
House, Senate Panels Clear Phone Privacy Measures
     Key committees in both the House and Senate approved similar measures designed to impose federal criminal penalties for illegally poaching telephone calling and billing records and then selling them. The House Judiciary Committee approved by voice vote a measure, H.R. 4709, that calls for imprisonment of up to 20 years for violating the law. Extra prison time could be added for using the information against a federal official, law enforcer or someone who is the victim of domestic violence. Committee ranking Democrat John Conyers of Michigan marveled at the numerous types of new frauds that are being perpetrated against victims using the Internet and said that as fast as the crimes are created, Congress should combat them. The bill is similar to legislation, S. 2178, that the Senate Judiciary Committee approved the same day without debate and by voice vote.

On The Hill
House Republicans Outline Their Innovation Agenda
     The House Republican leadership announced a legislative package as it seeks to gain the high ground on technology and competitiveness. The draft bill comes amid a flurry of innovation-related language, mostly from Democrats, who have made an effort to seize the initiative over the last 12 months. "This Republican Congress has delivered a number of key legislative victories on items central to maintaining our leadership position in high technology," said House Speaker Dennis Hastert, R-Ill. He listed passage of the Central America Free Trade Agreement, class-action legal reform and the "hard date" for the transition to digital television as examples. The new bill calls for increased investments in mathematics and science education, a reduction of red-tape barriers to innovation, a permanent research and development tax credit, legal reform and elimination of frivolous lawsuits, and increased use of healthcare information technology.

Taxes
Coalition, AOL Spar Over Fee-Based E-Mail Plan
     A new coalition decried America Online's plan to create a new fee-based e-mail service, arguing that it inevitably would lead to a degradation of standard electronic messaging. The coalition, Stop AOL's Email Tax, consists of 50 organizations, including Common Cause, the Consumer Federation of America, Defenders of Wildlife, the Electronic Frontier Foundation and Oxfam America. The group is trying to stop AOL from implementing its GoodMail program, which would allow senders who pay an extra fee to bypass AOL's junk e-mail filters. Critics contend that the offering constitutes a de facto tax that will lead to a two-tiered e-mail system and break with the open tradition of the Internet. The coalition also is concerned that the service could prove costly for them to reach members of the various participating groups. About 25 percent of those members are AOL customers.

States
California To See Broader Rules On Identity Theft
     California Gov. Arnold Schwarzenegger signed a bill to broaden the scope of the state's current rules to combat identity theft. The bill, A.B. 424, expands the state's existing statute to make public entities and other groups eligible to initiate investigations, collect damages and pursue civil remedies for ID theft. The rules previously only covered individuals. In 2003, California passed a sweeping law requiring notification about data breaches, but reports last year that a data broker compromised the personal information of about 35,000 residents in the state brought the issue back into the spotlight. In a recent speech, Schwarzenegger said ID theft remains a pressing national concern. He emphasized the universality of the problem and said lawmakers need to continue exploring better ways to protect sensitive personal information.