"You can't put an economic chokehold on this emerging force of democracy," Inslee said in a statement e-mailed to CNET by a spokeswoman. "There has to be a business model that allows creative Webcasters to thrive and the existing rule removes all the oxygen from this space."

The bill's introduction comes less than two weeks after the CRB declined to reconsider most of its decision. Small Webcasters, National Public Radio, Clear Channel Communications and others had filed petitions for a rehearing. Some have indicated they are considering filing an appeal of the rules in court. If it were to stand, the CRB's existing ruling (PDF) would result in fee increases on Internet radio operators ranging from 300 to 1200 percent between 2006 and 2012, according to a group called SaveNetRadio, which has been lobbying Congress for relief.