Sec.  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]