U.S. lawmakers plan to propose fines of up to $500,000 for violating regulatory principles aimed at preserving consumers’ ability to freely surf the Internet, a senior House of Representatives Republican said on Tuesday.The House Energy and Commerce Subcommittee on the Internet and telecommunications will consider legislation on Wednesday that would authorize the Federal Communications Commission to enforce its principles on Internet network neutrality.

Those principles call on Internet service providers to permit consumers unfettered Internet access and allow them to run any Internet-based applications. The bill would also make it easier for telephone companies to get into the subscription television business.

Content companies like Amazon.com Inc. are worried that network providers like AT&T Inc. and Verizon Communications would create a fast Internet lane for their preferred clients who pay more, while leaving the public on a slower road.

AT&T and Verizon have said they have no intention of blocking where consumers surf on the Internet or the use of Internet-based applications. However, they want the ability to offer private networks for faster services like movie downloads.

Rep. Fred Upton, a Michigan Republican and chairman of the subcommittee, said he worked with Rep. Eliot Engel, a New York Democrat, on the fines provision and will offer it as an amendment to the bill on Wednesday.

“I believe that authorizing the FCC to enforce its broadband policy statement — on a case-by-case adjudicatory basis — is a better framework to ensure that the public Internet remains open and dynamic,” Upton said.

He said adopting more stringent regulations “would have a dramatically chilling effect on broadband deployment and the development of exciting new services.”

Michigan Rep. John Dingell, the senior Democrat on the full House committee, said the legislation would allow companies to control the Internet, calling them “tax collectors”.

“Private tax collectors could single out certain consumers and content providers to pay extra fees,” Dingell said. “They could also single out others for preferential treatment.”

It is unclear whether the legislation will move forward this year, particularly because of the differences. Additionally, the Senate is considering a broader measure that would overhaul more communications laws.

Congress has relatively few work days in 2006 because of the November election, which could make it tough to work out differences between any bills the House and Senate may approve.