[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1278 Introduced in Senate (IS)]

  1st Session
                                S. 1278

    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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 27 (legislative day, September 25), 1995

   Mr. Burns introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. PURPOSE.

    It is the purpose of this Act to facilitate the acquisition of a 
dedicated communications satellite system on which instruction, 
education, and training programming can be collocated and free from 
preemption.

SEC. 2. EDUCATIONAL SATELLITE LOAN GUARANTEE PROGRAM.

    (a) Program Authorized.--
            (1) In general.--The Secretary of Commerce may 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, libraries, 
                State agencies, workplaces, and other distant education 
                centers;
                    (B) was in existence as of January 1, 1992;
                    (C) the charter of which is designed for 
                affiliation with Federal, State, and local educational 
                and instructional institutions and agencies, and other 
                distant education and instructional resource providers;
                    (D) has a governing board that includes members 
                representing elementary and secondary education, 
                community and State colleges, universities, elected 
                officials, and the private sector; and
                    (E) has as its sole purpose the acquisition and 
                operation of an integrated communications satellite 
                system and other telecommunications facilities 
                dedicated to transmitting instruction, education, and 
                training programming.
            (2) Interim acquisition of transponder capacity.--As an 
        interim measure to acquire a communications satellite system 
        dedicated to instruction, education, and training programming, 
        a corporation that meets the requirements of paragraph (1) may 
        acquire unused satellite transponder capacity owned or leased 
        by a department or agency of the Federal Government or unused 
        satellite transponder capacity owned or leased by a non-Federal 
        broadcast organization for reuse by schools, colleges, 
        community colleges, universities, State agencies, libraries, 
        and other distant education centers at competitive, low costs, 
        subject only to preemption for national security purposes.
            (3) Encouragement of interconnec- tivity.--A corporation 
        that meets the requirements of paragraph (1) shall encourage 
        the interconnectivity of 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 domestic common 
        carriers and international common carriers and ground 
        facilities and services of satellite, cable, and other private 
        communications systems in order 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'' access 
        and use.
            (4) Technical and training needs.--A corporation that meets 
        the requirements of paragraph (1) shall determine the technical 
        and training needs of educations users and providers to 
        facilitate coordinated and efficient use of a communications 
        satellite system dedicated to instruction, education, and 
        training to further unlimited access for schools, colleges, 
        community colleges, universities, State agencies, libraries, 
        and other distant education centers.
    (b) Eligible Loans.--The Secretary of Commerce may guarantee a loan 
under this section only if--
            (1) the corporation described in subsection (a)(1) has--
                    (A) investigated all practical means of acquiring a 
                communications satellite system;
                    (B) reported to the Secretary the findings of such 
                investigation; and
                    (C) identified for acquisition 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 system dedicated to 
        transmitting instruction, education, and training programming.
    (c) Loan Guarantee Limitations.--The Secretary of Commerce may not 
guarantee more than $270,000,000 in loans under the program 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 a 
        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 associated with providing integrated communications 
        satellite system services through the integrated communications 
        satellite system referred to in subsection (a)(1)(E).
    (d) Liquidation or Assignment.--
            (1) In general.--In order for a lender to receive a loan 
        guarantee under this section the 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 Secretary may exercise, retain, or 
        dispose of any right or interest acquired pursuant to paragraph 
        (1) in any manner that the Secretary considers appropriate.
    (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.--In this section:
            (1) The term ``acquire'' includes acquisition through 
        lease, purchase, or donation.
            (2) 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.
            (3) The term ``national security preemption'' means 
        preemption by the Federal Government for national security 
        purposes.
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