I
104TH CONGRESS
1ST SESSION
H. R. 1908
To establish an education satellite loan guarantee program for communica-
tions among education, Federal, State, and local institutions and agencies
and instructional and educational resource providers.
IN THE HOUSE OF REPRESENTATIVES
JUNE 21, 1995
Mrs. MORELLA (for herself and Mr. BROWN of California) introduced the fol-
lowing bill; which was referred to the Committee on Economic and Edu-
cational Opportunities
A BILL
To establish an education satellite loan guarantee program
for communications among education, Federal, State,
and local institutions and agencies and instructional and
educational resource providers.
Be it enacted by the Senate and House of Representa-
tives 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 instruction, edu-
cation, and training programming can be collocated and
free from preemption.
SEC. 2. EDUCATIONAL SATELLITE LOAN GUARANTEE PRO-
GRAM.
(a) PROGRAM AUTHORIZED.—
(1) IN GENERAL.—The Secretary of Commerce
is authorized to carry out a program to guarantee
any lender against loss of principal or interest on a
loan described in subsection (b) made by such lender
to a nonprofit, public corporation that—
(A) is recognized for expertise in governing
and operating educational and instructional
telecommunications in schools, colleges, librar-
ies, State agencies, workplaces, and other dis-
tant education centers;
(B) was in existence as of January 1,
1992;
(C) the charter of which is designed for af-
filiation with Federal, State, and local edu-
cational and instructional institutions and agen-
cies, and other distant education and instruc-
tional resource providers;
(D) has a governing board that includes
members representing elementary and second-
ary education, community and State colleges,
universities, elected officials and the private sec-
tor; and
(E) has as its sole purpose the acquisition
and operation of an integrated communications
satellite system and other telecommunications
dedicated to transmitting instruction, edu-
cation, and training programming.
(2) INTERIM
ACQUISITION
OF
TRANSPONDER
CAPACITY.—As an interim measure to acquire a
communications satellite system dedicated to in-
struction, education, and training programming, a
corporation that meets the requirements of para-
graph (1) may acquire unused transponder capacity
owned or leased by Federal Government agencies
and unused transponder capacity owned or leased by
non-Federal broadcast organizations for reuse by
schools, colleges, community colleges, universities,
State agencies, libraries, and other distant education
centers at competitive, low costs, subject only to pre-
emption for national security purposes.
(3) 
ENCOURAGEMENT
OF
INTERCONNEC-
TIVITY.—A corporation that meets the requirements
of paragraph (1) shall encourage interconnectivity
between elementary and secondary schools, colleges,
and community colleges, universities, State agencies,
libraries, and other distant education centers with
ground facilities and services of United States do-
mestic common carriers, international common car-
riers, and ground facilities and services of satellite,
cable, and other private communications systems, to
ensure technical compatibility and interconnectivity
of the space segment with existing communications
facilities in the United States and foreign countries,
to best serve United States education, instruction,
and training needs and to achieve cost-effective,
interoperability for friendly end-user, ‘‘last mile’’ ac-
cess and use.
(4) TECHNICAL AND TRAINING NEEDS.—A cor-
poration that meets the requirements of paragraph
(1) shall determine the technical and training needs
of educations users and providers to facilitate coordi-
nated and efficient use of a communications satellite
system dedicated to instruction, education, and
training to further unlimited access for schools, col-
leges, community colleges, universities, State agen-
cies, libraries, and other distant education centers.
(b) ELIGIBLE LOANS.—The Secretary of Commerce
only shall guarantee a loan under this section if—
(1) the authorized corporation described in
paragraph (1) has—
(A) investigated all practical means to ac-
quire a communications satellite system;
(B) reported to the Secretary the findings
of such investigation; and
(C) recommended the most cost-effective,
high-quality communications satellite system to
meet the purpose of this Act; and
(2) the proceeds of such loan are used solely to
acquire and operate a communications satellite sys-
tem dedicated to transmitting instruction, education,
and training programming.
(c) LOAN AMOUNT LIMITATIONS.—The Secretary of
Commerce shall not guarantee more than $270,000,000
in loans described in subsection (a) pursuant to the pro-
gram assisted under this section, of which—
(1) not more than $250,000,000 shall be for
the guarantee of such loans the proceeds of which
are used to acquire communications satellite system;
and
(2) not more than $20,000,000 shall be used
for the guarantee of such loans the proceeds of
which are used to pay the costs of not more than 4
years of operating and management expenses associ-
ated with providing integrated communications sat-
ellite system services described in subsection (a).
(d) LIQUIDATION OR ASSIGNMENT.—
(1) IN GENERAL.—In order for a lender to re-
ceive 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
Commerce on such loan guarantee.
(2) DISPOSITION.—The United States may ex-
ercise, retain, or dispose of any right or interest ac-
quired pursuant to paragraph (1) in any manner the
United States deems fit, upon the recommendation
of the Secretary of Commerce.
(e) SPECIAL RULE.—Any loan guarantee under this
section shall be guaranteed with full faith and credit of
the United States.
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary for each fiscal year to carry out this section.
(g) DEFINITIONS.—For purposes of this sub-
section—
(1) the term ‘‘acquire’’ includes acquisition
through lease, purchase, or donation;
(2) the term ‘‘communications satellite system’’
means one or more communications satellites capa-
ble of providing service from space, including trans-
ponder capacity, on such satellite or satellites; and
(3) the term ‘‘national security preemption’’
means preemption by the Federal Government for
national security purposes, to exclude technical and
business purpose preemptions.
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