Taxes
Republicans Heighten Push For Internet Tax Ban
     Senate Republicans are increasing efforts to enact legislation that would extend a ban on taxing Internet access. John Sununu, R-N.H., introduced legislation that would make permanent the moratorium that is set to expire Nov. 1. Minority Leader Mitch McConnell, R-Ky., supports the bill and plans to help Sununu bypass committee action, a Capitol Hill source said. McConnell released a Web video that details his views. "Letting the moratorium expire is nothing more than a backdoor tax increase," he said. "Democrats in Congress are hoping you won't notice when your bill goes up. But I'm here to stop them." Last week, the Senate Commerce Committee scrapped plans to vote on a bill that would temporarily extend the prohibition. This week at a hearing, House Small Business Committee Chairwoman Nydia Velazquez, D-N.Y., warned that consumers could face increases of 15 percent to 30 percent on their Internet bills if the ban expires.

E-Commerce
E-Gambling Rules Prompt New Round Of Criticism
     The financial services and gambling industries are still studying newly proposed rules to enforce a law against online gambling, but some said the only reasonable approach is to eliminate the law. The Treasury Department and Federal Reserve Board issued the rules and will accept comments until Dec. 12. Under the rules, only those in the financial services sector who have customer relationships with online gambling entities would have to ensure that illegal transactions do not occur. But Edward Leyden, president of the Interactive Media Entertainment and Gaming Association, complained that the rules essentially would make every transaction involving e-gambling firms unlawful. "The proposed rule deputizes everybody along the entire chain," Leyden said. Keith Furlong, deputy director of the Interactive Gaming Council, said that instead of banning e-gambling, Congress should pass a pending bill to license and regulate the sites.

Porn
Advocates, Lawmakers Refocus On Internet Safety
     Online child-safety advocates renewed their call to empower parents, educators and policymakers to help make the Internet safe for surfing. Their Capitol Hill summit coincided with the start of National Cyber-Security Month. Senate Commerce Committee ranking Republican Ted Stevens of Alaska touted his bill that would require schools receiving federal funds for Internet access to offer age-appropriate instruction about online behavior. The bill also would create a federal panel to identify technologies to help keep kids away from unsuitable Web content, and it would create a multimillion-dollar public-awareness campaign. "The Internet is a valuable resource," Stevens said, but it is "vital to educate them about the potential dangers" lurking online. The Commerce panel has approved his measure, which is a rewrite of a more controversial bill that would have blocked access to chat rooms and online social networks like MySpace at educational institutions.

Privacy
Satellite Office's Opening Delayed Amid Criticism
     The Homeland Security Department delayed opening an office that will provide satellite support to operations inside the United States, prompting House Democrats to claim a rare victory over the Bush administration on national security and executive power. Homeland Security did not open its National Applications Office as planned. The office is supposed to coordinate the use of satellites for activities such as improving border security, tracking natural disasters, and supporting state and local law enforcers. Democrats on the House Homeland Security Committee last month called for a moratorium on opening the office until the department provides written legal documents on how it will operate, and how the privacy rights and civil liberties of U.S. citizens will be protected. In a letter to Homeland Security Committee Chairman Bennie Thompson, department Chief Intelligence Officer Charles Allen said the department "has no intention to begin operations until we address your questions."

Security
Senators Grill Security Officials About Worker IDs
     Homeland Security Department officials assured lawmakers that they are ready to begin a program to issue the nation's port workers new security cards, despite years of delays and concerns that individuals might be mistakenly denied the credentials. Workers who have access to secure port areas will have to undergo screening in order to get the cards. The cards also include a biometric identifier, such as a fingerprint scan. Members of the Senate Commerce Committee peppered department officials with questions about how they will vet up to a million port workers who must get the transportation worker identification credentials, known as TWIC cards. They also asked whether the department is ready to correct mistakes that could cost innocent workers their livelihoods. "It's absolutely not our intent to keep people from going to work," said Maurine Fanguy, the department's TWIC program manager.

Telecom
McDowell Emerging As Key On Two FCC Votes
     FCC member Robert McDowell has emerged as the swing vote on two critical telecommunications proceedings before the agency, industry sources said. At issue are forbearance petitions filed by dominant telecom firms that want to avoid mandatory price caps governing high-capacity, high-speed Internet services to businesses. The FCC also must decide whether dominant companies in several markets should continue to be exempt from charging discounted "special access" rates to wholesale broadband customers. Chairman Kevin Martin and Commissioner Deborah Taylor Tate are viewed as supporting deregulation. Commissioners Jonathan Adelstein and Michael Copps appear to oppose special-access deregulation and favor partial relief on some forbearance requests, sources said. McDowell's views are less certain, but in September, Qwest temporarily withdrew a forbearance petition after he balked at supporting it. The FCC faces an Oct. 11 deadline for action on an AT&T forbearance request and might address related petitions at that time. A decision on special access is expected soon.

E-Government
Crush Of E-Mail To Capitol Aggravates Both Sides
     The current e-mail system in Congress is a headache for both lawmakers and constituents, but advocacy groups and Capitol Hill aides disagree on how to better manage the communications. "I understand your physical limitations," with millions of e-mails coming in annually, Alan Rosenblatt of the Center for American Progress Action Fund said in a heated discussion hosted by the Congressional Management Foundation. But when staffers "'select all' and delete messages with the same subject line" from advocacy groups, that is "unconstitutional." Participants in online action campaigns often depend on organizers to research issues, track legislation, tailor correspondence and remind them of when to e-mail their congressmen, Rosenblatt added. But Judson Blewett, an information technology officer for Sen. John Cornyn, R-Texas, said congressional offices have neither the time nor the money to handle bulk messages. "I don't have any way to filter this information" from advocacy groups, Blewett said.