Taxes
R&D Credit Ensnared In Unrelated Maneuverings
     Renewal of the research and development tax credit suffered a setback this week despite some creative legislative maneuvering. The House voted 230-180 last weekend for a measure with language to extend the R&D tax credit. The effort is part of a package of business tax extensions, a minimum-wage hike and a permanent reduction of the estate tax for estates worth more than $5 million. The compromise includes provisions for conservative Republicans determined to pass the estate tax, moderate Republicans demanding a vote on a minimum-wage increase, and Senate Finance Committee members refusing to sign a House-Senate agreement on a pension bill unless the R&D tax credit moves with it. The technology industry lobbied senators to pass the measure, H.R. 5970, before leaving for the August recess this week, but Democrats opposed to the deal kept the chamber from getting the 60 votes necessary to limit debate.

Broadband
FCC Votes Tout Emerging High-Speed Technologies
     The FCC this week took steps to increase the availability of high-speed Internet service by expediting the deployment of broadband over power lines, or BPL, and freeing spectrum for wireless broadband. Both items were approved 5-0. But the FCC dropped from its agenda a proposal that BPL be classified as a lightly regulated information service. Sources said commissioners soon are expected to vote on the issue privately. BPL is a little-known, nascent industry with few subscribers. Under new rules, the agency took steps to mitigate interference of the technology with other devices and technologies. In action on a second item, the agency proposed that spectrum in the 700-megahertz band allocated for commercial wireless service -- including wireless broadband -- be auctioned in blocks covering modest-sized geographic regions. That would allow small entities to participate in the bidding.

On The Hill
Online Child-Protection Bill May Hit Senate Hurdles
     A bill designed to protect children online that quickly won House passage may hit hurdles in the Senate. The measure, H.R. 5319, would force schools and libraries that receive special funds for Internet access to ban youngsters from chat rooms and social-networking Web sites like MySpace. The bill, aimed at protecting kids from pedophiles and pornographers who troll online communities, reached the House floor quickly with backing from the Suburban Agenda Caucus. But Robert Traynham, the communications director for Pennsylvania Republican Sen. Rick Santorum, is not optimistic about Senate action. He said the House and Senate "have already moved child-safety legislation" that President Bush has signed into law. That bill, H.R. 4472, aims to strengthen sex-offender registries, enhance Internet safeguards and give local school districts resources to protect kids from harm in the classroom.

Civil Liberties
Online Speech Faces 'Serious Assault,' Group Warns
     Free speech on the Internet faces what could be the "most serious assault" on the medium since First Amendment crusaders litigated the Communications Decency Act a decade ago, according to a high-tech civil-liberties group. The 1996 law made it a crime to send obscenity over the Internet. The Center for Democracy and Technology warned Web policy watchers not to be complacent in their belief that the Internet will continue to be "a place for robust online speech." One of the most pressing recent issues is an effort to force labeling of sexually explicit Web sites, CDT officials said. The proposal is part of a pending telecommunications bill. Other Internet threats flagged by CDT include a bill, H.R. 5319, targeting the use of social-networking sites and chat rooms in public schools and libraries, and the resurgence of a court battle over government-imposed Web filters, CDT Executive Director Leslie Harris said.

Television
'Indecency' Battle To Play Out In Three Courts
     A potentially epic battle over broadcast "indecency" laws is taking shape through legal actions in three federal appeals courts. The CBS network recently threw its own legal strategy into the mix with a suit in Philadelphia, arguing that the 2004 Super Bowl half-time show featuring brief nudity of singer Janet Jackson was not indecent. Other indecency cases are before courts in the District of Columbia and New York. While the Super Bowl raises the question of whether split-second flesh exposure is indecent, the other cases involve profanity. All four major networks have been itching to take to the FCC to court, and legal experts familiar with the matter believe the networks have a strong First Amendment argument in all cases. FCC spokeswoman Tamara Lipper disagreed, saying that CBS for one "is out of touch with the American people."

Security
Path For Chemical Security Bill Full Of Obstacles
     Senate Homeland Security and Governmental Affairs Committee Chairwoman Susan Collins faces a two-front battle over a chemical security bill. Collins' committee unanimously approved a bill in June to regulate security standards for facilities that produce, use or store chemical substances. Since June, Senate Environment and Public Works Committee Chairman James Inhofe, R-Okla., has placed a procedural "hold" on the bill. Inhofe objects to the bill because it would allow Homeland Security to regulate drinking water and wastewater facilities that use chemicals, an issue that he believes is in his committee's jurisdiction. Fourteen other senators sent Collins, R-Maine, a letter stating several concerns they want resolved before floor debate. Among other things, the letter calls for prohibiting the Homeland Security Department from mandating "inherently safer technology" at facilities, which include alternative chemicals, manufacturing processes and even video cameras for physical security.

Telecom
Senators In Tight Races Wary Of Net Neutrality Vote
     The effort by Sen. Ted Stevens to move telecommunications legislation to the floor in September is opposed by Republican Rick Santorum of Pennsylvania and other senators facing close races in November, multiple congressional and industry sources said. Santorum's office had no comment. The lawmakers are said to be concerned about casting sensitive votes on telecom matters -- particularly an amendment to preserve the Internet's openness -- before Election Day that might galvanize grassroots opposition. Another worry is that their votes might disrupt the flow of telecom and technology donations to their campaign coffers. Santorum apparently is anxious about the impact of voting on network neutrality. The fear is that a vote against an amendment on the issue might make him susceptible to accusations that he helped destroy today's Internet. Santorum also has raised considerable money from communications companies.

Campaigns
Connecticut Senate Race Spurs Flurry Of Activity
     With less than a week to go before the Connecticut Democratic primary, three-term Sen. Joseph Lieberman is trying to associate himself with prominent Democrats like former President Clinton, who campaigned for Lieberman last week. Lieberman's online opponents continue to associate him with President Bush as they tout the challenger, cable company founder Ned Lamont. The race has prompted nearly 400 clips on the YouTube video-sharing site. The most popular, with nearly 5,000 viewings each, are spoofs featuring what could become known as Lieberman's kiss of death -- his embrace with Bush after the State of the Union address. It is a visual reminder of intraparty complaints that Lieberman is too close to Bush on issues like the Iraq war. Lieberman has a lifetime voting record of 94 percent on technology industry issues, and industry groups said a Lieberman defeat would be "a great loss."