§  54.501   Eligibility for services provided by telecommunications carriers.

   (a) Telecommunications carriers shall be eligible for universal service
   support under this subpart for providing supported services to eligible
   schools, libraries, and consortia including those entities.

   (b) Schools. (1) Only schools meeting the statutory definitions of
   “elementary school,” as defined in 20 U.S.C. 7801(18), or “secondary
   school,” as defined in 20 U.S.C. 7801(38), and not excluded under
   paragraphs (b)(2) or (b)(3) of this section shall be eligible for
   discounts on telecommunications and other supported services under this
   subpart.

   (2) Schools operating as for-profit businesses shall not be eligible
   for discounts under this subpart.

   (3) Schools with endowments exceeding $50,000,000 shall not be eligible
   for discounts under this subpart.

   (c) Libraries. (1) Only libraries eligible for assistance from a State
   library administrative agency under the Library Services and Technology
   Act (Public Law 104–208) and not excluded under paragraphs (c)(2) or
   (c)(3) of this section shall be eligible for discounts under this
   subpart.

   (2) A library's eligibility for universal service funding shall depend
   on its funding as an independent entity. Only libraries whose budgets
   are completely separate from any schools (including, but not limited
   to, elementary and secondary schools, colleges, and universities) shall
   be eligible for discounts as libraries under this subpart.

   (3) Libraries operating as for-profit businesses shall not be eligible
   for discounts under this subpart.

   (d) Consortia. (1) For purposes of seeking competitive bids for
   telecommunications services, schools and libraries eligible for support
   under this subpart may form consortia with other eligible schools and
   libraries, with health care providers eligible under subpart G, and
   with public sector (governmental) entities, including, but not limited
   to, state colleges and state universities, state educational
   broadcasters, counties, and municipalities, when ordering
   telecommunications and other supported services under this subpart.
   With one exception, eligible schools and libraries participating in
   consortia with ineligible private sector members shall not be eligible
   for discounts for interstate services under this subpart. A consortium
   may include ineligible private sector entities if the pre-discount
   prices of any services that such consortium receives from ILECs are
   generally tariffed rates.

   (2) For consortia, discounts under this subpart shall apply only to the
   portion of eligible telecommunications and other supported services
   used by eligible schools and libraries.

   (3) Service providers shall keep and retain records of rates charged to
   and discounts allowed for eligible schools and libraries—on their own
   or as part of a consortium. Such records shall be available for public
   inspection.

   [ 62 FR 32948 , June 17, 1997, as amended at  63 FR 2129 , Jan. 13, 1998;
    68 FR 36942 , June 20, 2003]