On April 5, 2013, the Texas Supreme Court rendered its decision in favor of the taxpayers, TracFone Wireless, Inc. and Virgin Mobile USA, L.P., in their e911 fee case against the State. The Court specifically found that the statutory collection requirements for the e911 fee under sec. 771.073(a) of the Texas Health & Safety Code do not apply to prepaid wireless service providers and their customers. The Court therefore held that prepaid wireless service and its customers are not subject to the $.50 per month e911 fee imposed under Texas Health & Safety Code sec. 771.0711 on traditional (contract based) cellphone service providers and their customers. The Court held that prepaid wireless service and its customers are subject only to a 2% e911 fee specifically imposed by the Legislature, effective in 2010, under sec. 771.0712 of the Texas Health & Safety Code on the sale of prepaid wireless. A critical part of the Court’s decision was that TracFone and Virgin Mobile would be subjected to impermissible (and unconstitutional) taxation if prepaid wireless were subject to both the $.50 per month fee and the 2% fee, while traditional cellphone service incurred only the monthly fee. TracFone Wireless, Inc. and Virgin Mobile USA, L.P. v. Commission on State Emergency Communications, Texas Supreme Court, No. 11-0473. Gilbert Bernal and David Sewell of Stahl, Bernal & Davies represented TracFone as co-counsel with Scott Spears and the Yetter Coleman law firm of Austin.