Consumers' Research asked the FCC to set the Q3 USF contribution factor to zero, saying in comments posted Wednesday in docket 96-45 that the Office of Managing Director should "do the same for all future proposed universal service contribution factors due to the illegality of this entire scheme and process." The group has several pending legal challenges of prior quarterly USF contribution factors (see 2304060042).
The 6th U.S. Circuit Court of Appeals denied Consumers' Research's challenge of the FCC's USF 2021 Q4 contribution factor, in an opinion published Thursday in case 21-3886. A three-judge panel heard oral argument in March and is the second court to deny a challenge from the group (see 2303240049). "Congress provided the FCC with a detailed statutory framework regarding universal service," wrote Judge Karen Nelson Moore, saying Section 254 of the Communications Act "does not violate the nondelegation doctrine." The opinion also cited the Universal Service Administrative Co.'s "subordination to the FCC and its assistance with fact gathering and ministerial support" wasn't a "private-nondelegation doctrine violation." Competitive Carriers Association, NTCA and USTelecom welcomed the ruling in a joint statement: "We believe that other courts considering similar challenges should come to the same conclusion.” Consumers' Research didn't comment.
Consumers' Research petitioned the 5th U.S. Circuit Court of Appeals for an en banc review of an opinion denying its challenge of the FCC's Q1 2022 USF contribution factor, saying the opinion "further watered down" the nondelegation doctrine's "intelligible principle standard" (see 2303240049). "The novel delegation to an agency of a broad and perpetual taxing power should have raised alarm bells," Consumers' Research said in its petition, filed Thursday in case 22-60008. The group said an en banc review was warranted "not only because it conflicts with binding precedent but also because of the significance of the issues involved."
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Consumers' Research challenged the FCC's Q1 2023 USF contribution factor in the U.S. Court of Appeals for the D.C. Circuit, saying "no separate document was issued when the proposed USF tax factor was deemed approved by the FCC on March 28." The petition, filed Monday in docket 23-1091, said approval of the contribution factor "exceed[s] the FCC’s statutory authority" and asked the court to deem the factor unlawful. It's the fourth challenge of a quarterly factor by the group. The 5th Circuit denied the group's challenge of the Q1 2022 factor in March (see 2303240049).
Consumers' Research challenged the FCC's Q1 2023 USF contribution factor in the U.S. Court of Appeals for the D.C. Circuit, saying "no separate document was issued when the proposed USF tax factor was deemed approved by the FCC on March 28." The petition, filed Monday in docket 23-1091, said approval of the contribution factor "exceed[s] the FCC’s statutory authority" and asked the court to deem the factor unlawful. It's the fourth challenge of a quarterly factor by the group. The 5th Circuit denied the group's challenge of the Q1 2022 factor in March (see 2303240049).
Here are Communications Litigation Today's top stories from last week, in case you missed them. Each can be found by searching on its title or by clicking on the hyperlinked reference number.
Commerce Department Inspector General Peggy Gustafson plans to emphasize at a Wednesday hearing that her office is “committed to oversight” of the $48 billion in broadband funding under NTIA’s administration from the Infrastructure Investment and Jobs Act. Subpanel Republicans aim for the House Commerce Oversight Subcommittee hearing to criticize what they view as excessive spending via IIJA and other measures (see 2303230077). Sen. Amy Klobuchar, D-Minn., and Senate Communications Subcommittee ranking member John Thune, R-S.D., meanwhile, led refiling of the Reforming Broadband Connectivity Act in a bid to revamp USF's funding mechanism (see 2112220072). Rep. Joe Neguse, D-Colo., led a House companion measure.
The 5th Circuit U.S. Court of Appeals "erroneously upheld the USF revenue-raising mechanism" in its ruling against Consumers' Research petition on the FCC's Q1 2022 contribution factor, the group told the 11th Circuit (see 2303240049). The group challenged the Q4 2022 factor in the 11th Circuit. The court "never addressed" the group's argument about the nondelegation doctrine's intelligible principle "in the context of revenue-raising," Consumers' Research said in a letter posted Monday (docket 22-13315). The group also said the court "found no private nondelegation violation despite the FCC never bothering to issue a separate approval of [the Universal Service Administrative Co.'s] quarterly proposal and having only 'a small window' for review."
The 5th Circuit U.S. Court of Appeals "erroneously upheld the USF revenue-raising mechanism" in its ruling against Consumers' Research petition on the FCC's Q1 2022 contribution factor, the group told the 11th Circuit (see 2303240049). The group challenged the Q4 2022 factor in the 11th Circuit. The court "never addressed" the group's argument about the nondelegation doctrine's intelligible principle "in the context of revenue-raising," Consumers' Research said in a letter posted Monday (docket 22-13315). The group also said the court "found no private nondelegation violation despite the FCC never bothering to issue a separate approval of [the Universal Service Administrative Co.'s] quarterly proposal and having only 'a small window' for review."