§ 54.501   Eligible recipients.

   (a)  Schools.  (1)  Only  schools  meeting the statutory definition of
   “elementary school” or “secondary school” as defined in § 54.500 of this
   subpart, and not excluded under paragraphs (a)(2) or (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;  79 FR 68634 , Nov. 18, 2014]

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