Sec.  54.519   State telecommunications networks.

   (a) Telecommunications services. State telecommunications networks may
   secure discounts under the universal service support mechanisms on supported
   telecommunications services (as described in  Sec. 54.502) on behalf of eligible
   schools and libraries (as described in  Sec. 54.501) or consortia that include an
   eligible school or library. Such state telecommunications networks shall
   pass on such discounts to eligible schools and libraries and shall:

   (1) Maintain records listing each eligible school and library and showing
   the basis for each eligibility determination;

   (2) Maintain records demonstrating the discount amount to which each
   eligible school and library is entitled and the basis for such
   determination;

   (3) Take reasonable steps to ensure that each eligible school or library
   receives a proportionate share of the shared services;

   (4) Request that service providers apply the appropriate discount amounts on
   the portion of the supported services used by each school or library;

   (5) Direct eligible schools and libraries to pay the discounted price; and

   (6) Comply with the competitive bid requirements set forth in  Sec. 54.504(a).

   (b) Internet access and installation and maintenance of internal
   connections. State telecommunications networks either may secure discounts
   on Internet access and installation and maintenance of internal connections
   in the manner described in paragraph (a) of this section with regard to
   telecommunications, or shall be eligible, consistent with  Sec. 54.517(b), to
   receive universal service support for providing such services to eligible
   schools, libraries, and consortia including those entities.

   [ 63 FR 2131 , Jan. 13, 1998;  63 FR 33586 , June 19, 1998]