Sec.  54.500   Terms and definitions.

   (a) Billed entity. A “billed entity” is the entity that remits payment to
   service providers for services rendered to eligible schools and libraries.

   (b) Educational purposes. For purposes of this subpart, activities that are
   integral, immediate, and proximate to the education of students, or in the
   case of libraries, integral, immediate and proximate to the provision of
   library services to library patrons, qualify as “educational purposes.”
   Activities that occur on library or school property are presumed to be
   integral, immediate, and proximate to the education of students or the
   provision of library services to library patrons.

   (c) Elementary school. An “elementary school” is a non-profit institutional
   day or residential school, including a public elementary charter school,
   that provides elementary education, as determined under state law.

   (d) Library. A “library” includes:

   (1) A public library;

   (2) A public elementary school or secondary school library;

   (3) An academic library;

   (4) A research library, which for the purpose of this section means a
   library that:

   (i) Makes publicly available library services and materials suitable for
   scholarly research and not otherwise available to the public; and

   (ii) Is not an integral part of an institution of higher education; and

   (5) A private library, but only if the state in which such private library
   is located determines that the library should be considered a library for
   the purposes of this definition.

   (e) Library consortium. A “library consortium” is any local, statewide,
   regional, or interstate cooperative association of libraries that provides
   for the systematic and effective coordination of the resources of schools,
   public, academic, and special libraries and information centers, for
   improving services to the clientele of such libraries. For the purposes of
   these rules, references to library will also refer to library consortium.

   (f) Lowest corresponding price. “Lowest corresponding price” is the lowest
   price that a service provider charges to non-residential customers who are
   similarly situated to a particular school, library, or library consortium
   for similar services.

   (g) Master contract. A “master contract” is a contract negotiated with a
   service provider by a third party, the terms and conditions of which are
   then made available to an eligible school, library, rural health care
   provider, or consortium that purchases directly from the service provider.

   (h) Minor contract modification. A “minor contract modification” is a change
   to a universal service contract that is within the scope of the original
   contract and has no effect or merely a negligible effect on price, quantity,
   quality, or delivery under the original contract.

   (i) National school lunch program. The “national school lunch program” is a
   program administered by the U.S. Department of Agriculture and state
   agencies that provides free or reduced price lunches to economically
   disadvantaged children. A child whose family income is between 130 percent
   and 185 percent of applicable family size income levels contained in the
   nonfarm poverty guidelines prescribed by the Office of Management and Budget
   is eligible for a reduced price lunch. A child whose family income is 130
   percent or less of applicable family size income levels contained in the
   nonfarm income poverty guidelines prescribed by the Office of Management and
   Budget is eligible for a free lunch.

   (j) Pre-discount price. The “pre-discount price” means, in this subpart, the
   price the service provider agrees to accept as total payment for its
   telecommunications or information services. This amount is the sum of the
   amount the service provider expects to receive from the eligible school or
   library and the amount it expects to receive as reimbursement from the
   universal service support mechanisms for the discounts provided under this
   subpart.

   (k) Secondary school. A “secondary school” is a non-profit institutional day
   or residential school that provides secondary education, as determined under
   state law. A secondary school does not offer education beyond grade 12.

   (l) State telecommunications network. A “state telecommunications network”
   is a state government entity that procures, among other things,
   telecommunications offerings from multiple service providers and bundles
   such offerings into packages available to schools, libraries, or rural
   health care providers that are eligible for universal service support, or a
   state government entity that provides, using its own facilities, such
   telecommunications offerings to such schools, libraries, and rural health
   care providers.

   (m) Wide area network. For purposes of this subpart, a “wide area network”
   is a voice or data network that provides connections from one or more
   computers within an eligible school or library to one or more computers or
   networks that are external to such eligible school or library. Excluded from
   this definition is a voice or data network that provides connections between
   or among instructional buildings of a single school campus or between or
   among non-administrative buildings of a single library branch.

   [ 63 FR 2128 , Jan. 13, 1998, as amended at  68 FR 36942 , June 20, 2003]