CTIA Wins Injunction vs. Kentucky 911 Board
A federal court agreed with CTIA that a Kentucky 911 law conflicts with the 2018 federal Wireless Telecommunications Tax and Fee Collection Fairness Act. Responding to that federal statute, the 2020 state law made Lifeline providers directly liable for 911…
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fees and barred them from passing the charge to users. In an opinion (in Pacer) entered Tuesday, U.S. District Court in Frankfort, Kentucky, granted an injunction and restraint against the Kentucky 911 Service Board in case 3:2020-cv-00043. Judge Gregory Van Tatenhove agreed with industry that the Kentucky law is preempted by Section 1510 of the Fairness Act, which limits states from requiring someone out-of-state from collecting state or local fees. “Though the Board alleges that Kentucky’s intention” with the 2020 law “was to comply with Section 1510, the state has failed to do so,” wrote Van Tatenhove. The judge disagreed with CTIA that the law violated two sections of the Communications Act, and he didn’t address the association’s constitutional claims. Section 254(f) on USF doesn’t preempt the Kentucky charge because the fee “has no relation to the manner by which Kentucky operates its universal service fund,” he said. Section 332(c)(3) stopping states’ from regulating wireless provider rates and entry can’t “be read so broadly as to prevent any incidental effects on entry or rates that a [statute] might impose,” he said. The judge disagreed with the state board that CTIA lacks standing as an association representing affected carriers and that Communications Act Section 616a-1(f)(1) exempts state 911 charges from preemption. Such a “broad reading ... would allow states to impose extreme requirements, like the taking of large portions of the service providers’ subsidies, in the name of ‘collecting fees for 911 services,’” he wrote. CTIA is glad the court recognized that the Kentucky law "discriminated against Lifeline providers serving low income consumers," said General Counsel Tom Power. "We are committed to working with policymakers at all levels to ensure all Americans benefit from wireless connectivity and ensure that 9-1-1 systems are appropriately funded." The Kentucky board didn’t comment.