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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1497 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1497

      To facilitate the development of an integrated, nationwide 
telecommunications system dedicated to instruction by guaranteeing the 
   acquisition of a communications satellite system used solely for 
  communications among State and local instructional institutions and 
             agencies and instructional resource providers.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

           September 29 (legislative day, September 27), 1993

 Mr. Burns (for himself and Mr. McCain) introduced the following bill; 
 which was read twice and referred to the Committee on Labor and Human 
                               Resources

_______________________________________________________________________

                                 A BILL

 
      To facilitate the development of an integrated, nationwide 
telecommunications system dedicated to instruction by guaranteeing the 
   acquisition of a communications satellite system used solely for 
  communications among State and local instructional institutions and 
             agencies and instructional resource providers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PURPOSE.

    It is the purpose of this Act to acquire a dedicated communications 
satellite system on which instructional programming can be colocated 
and free from preemption.

SEC. 2. EDUCATIONAL SATELLITE LOAN GUARANTEE PROGRAM.

    (a) Program Authorized.--
            (1) In general.--The Secretary of Education is authorized 
        to carry out a program to guarantee any lender against loss of 
        principal or interest on a loan described in paragraph (2) made 
        by such lender to a non-Federal, nonprofit, public 
        corporation--
                    (A) in existence as of January 1, 1992;
                    (B) whose charter is designed for affiliation with 
                State and local instructional institutions and 
                agencies, and other distance learning and instructional 
                resource providers;
                    (C) whose governing board includes members 
                representing elementary and secondary education, 
                vocational and technical education, community and State 
                colleges, and universities; and
                    (D) whose sole purpose is to acquire and operate a 
                communications satellite system dedicated to 
                transmitting instructional programming.
            (2) Eligible loans.--The Secretary of Education only shall 
        guarantee a loan under this Act if--
                    (A) the non-Federal, nonprofit, public corporation 
                described in paragraph (1) has--
                            (i) investigated all practical means to 
                        acquire a communications satellite system;
                            (ii) reported to the Secretary the findings 
                        of such investigation; and
                            (iii) recommended the most cost-effective, 
                        high-quality communications satellite system to 
                        meet the purpose of this Act.
                    (B) the proceeds of such loan are used solely to 
                acquire and operate a communications satellite system 
                dedicated to transmitting instructional programming.
            (3) Definitions.--For purposes of this subsection--
                    (A) the term ``acquire'' includes acquisition 
                through lease, purchase or donation; and
                    (B) the term ``communications satellite system'' 
                means one or more communications satellites capable of 
                providing service from space, including transponder 
                capacity, on such satellite or satellites.
    (b) Loan Amount Limitations.--The Secretary of Education may not 
guarantee more than $40,000,000 in loans described in subsection (a), 
with respect to the program assisted under this section, of which--
            (1) not more than $35,000,000 shall be for the guarantee of 
        such loans the proceeds of which are used to acquire a 
        communications satellite system; and
            (2) not more than $5,000,000 shall be for the guarantee of 
        such loans the proceeds of which are used to pay the costs of 
        not more than 3 years of operating and management expenses 
        associated with providing the communications satellite system 
        services described in subsection (a).
    (c) Liquidation or Assignment.--
            (1) In general.--In order for a lender to receive a loan 
        guarantee under this section such lender shall agree to assign 
        to the United States any right or interest in the 
        communications satellite system or communications satellite 
        system services that such lender possesses upon payment by the 
        Secretary of Education on such loan guarantee.
            (2) Disposition.--The United States may exercise, retain, 
        or dispose of any right or interest acquired pursuant to 
        paragraph (1) in any manner the United States deems fit, upon 
        the recommendation of the Secretary of Education.
    (d) Special Rule.--Any loan guaranteed under this section shall be 
guaranteed with full faith and credit of the United States.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each fiscal year to 
carry out this section.

                                 <all>
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