§ 54.501   Eligible recipients.

   (a) Schools. (1) Only schools meeting the statutory definition of
   "elementary school" or "secondary school" as defined in § 54.500(c) or
   (k) of these rules, and not excluded under paragraphs (a)(2) or (a)(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.

   (b) Libraries. (1) Only libraries eligible for assistance from a State
   library administrative agency under the Library Services and Technology
   Act (Pub. L. 104-208) and not excluded under paragraphs (b)(2) or (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.

   (c) Consortia.

   (1) 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.

   (2) 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;  75 FR 75411 , Dec. 3, 2010;  76 FR 56302 ,
   Sept. 13, 2011;  79 FR 49198 , Aug. 19, 2014]

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