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103D CONGRESS

1ST SESSION H. R. 2268

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 HOUSE OF REPRESENTATIVES

MAY 26, 1993

Mr. BROWN of California (for himself, Mrs. MORELLA, Mr. FROST, Mr. WILLIAMS, Mr. FISH, Mr. EVANS, and Mr. CLYBURN) introduced the following bill; which was referred to the Committee on Education and Labor

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. PURPOSE.

2 It is the purpose of this Act to acquire a dedicated

3 communications satellite system on which instructional

4 programming can be colocated and free from preemption.

5 SEC. 2. EDUCATIONAL SATELLITE LOAN GUARANTEE PRO6 GRAM.

7 (a) PROGRAM AUTHORIZED.—

8 (1) IN GENERAL.—The Secretary of Education

9 is authorized to carry out a program to guarantee

10 any lender against loss of principal or interest on a

11 loan described in paragraph (2) made by such lender

12 to a non-Federal, nonprofit, public corporation—

13 (A) in existence as of January 1, 1992;

14 (B) whose charter is designed for affili15 ation with State and local instructional institu16 tions and agencies, and other distance learning

17 and instructional resource providers;

18 (C) whose governing board includes mem19 bers representing elementary and secondary

20 education, vocational and technical education,

21 community and State colleges, and universities;

22 and

23 (D) whose sole purpose is to acquire and

24 operate a communications satellite system dedi25 cated to transmitting instructional program26 ming.
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1 (2) ELIGIBLE LOANS.—The Secretary of Edu2 cation only shall guarantee a loan under this Act

3 if—

4 (A) the non-Federal, nonprofit, public cor5 poration described in paragraph (1) has—

6 (i) investigated all practical means to

7 acquire a communications satellite system;

8 (ii) reported to the Secretary the find9 ings of such investigation; and

10 (iii) recommended the most cost-effec11 tive, high-quality communications satellite

12 system to meet the purpose of this Act;

13 and

14 (B) the proceeds of such loan are used

15 solely to acquire and operate a communications

16 satellite system dedicated to transmitting in17 structional programming.

18 (3) DEFINITIONS.—For purposes of this sub19 section—

20 (A) the term ‘‘acquire’’ includes acquisition

21 through lease, purchase or donation; and

22 (B) the term ‘‘communications satellite

23 system’’ means one or more communications

24 satellites capable of providing service from
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1 space, including transponder capacity, on such

2 satellite or satellites.

3 (b) LOAN AMOUNT LIMITATIONS.—The Secretary of

4 Education may not guarantee more than $40,000,000 in

5 loans described in subsection (a), with respect to the pro6 gram assisted under this section, of which—

7 (1) not more than $35,000,000 shall be for the

8 guarantee of such loans the proceeds of which are

9 used to acquire a communications satellite system;

10 and

11 (2) not more than $5,000,000 shall be for the

12 guarantee of such loans the proceeds of which are

13 used to pay the costs of not more than 3 years of

14 operating and management expenses associated with

15 providing the communications satellite system serv16 ices described in subsection (a).

17 (c) LIQUIDATION OR ASSIGNMENT.—

18 (1) IN GENERAL.—In order for a lender to re19 ceive a loan guarantee under this section such lender

20 shall agree to assign to the United States any right

21 or interest in the communications satellite system or

22 communications satellite system services that such

23 lender possesses upon payment by the Secretary of

24 Education on such loan guarantee.
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1 (2) DISPOSITION.—The United States may ex2 ercise, retain, or dispose of any right or interest ac3 quired pursuant to paragraph (1) in any manner the

4 United States deems fit, upon the recommendation

5 of the Secretary of Education.

6 (d) SPECIAL RULE.—Any loan guaranteed under this

7 section shall be guaranteed with full faith and credit of

8 the United States.

9 (e) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated such sums as may be

11 necessary for each fiscal year to carry out this section.

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