[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2320 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2320

     To establish an education satellite loan guarantee program to 
   facilitate the development of an integrated, national and global 
telecommunications system dedicated to instruction and used solely for 
     communications among Federal, State, and local instructional 
    institutions and agencies and instructional resource providers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 1997

 Mr. Brown of California (for himself and Mrs. Morella) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL


 
     To establish an education satellite loan guarantee program to 
   facilitate the development of an integrated, national and global 
telecommunications system dedicated to instruction and used solely for 
     communications among Federal, 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--
            (1) to develop a communications satellite system which is 
        accessible to educational and instructional programming and can 
        be provided free from preemption; and
            (2) to provide an initial loan that will be designed to 
        fund United States participation in, and show United States 
        support for, a national or international organization designed 
        to use the resources of satellite technology and other 
        telecommunications to increase and maintain the accessibility 
        and affordability of education and instructional training 
        services around the world.

SEC. 2. EDUCATIONAL SATELLITE LOAN GUARANTEE PROGRAM.

    (a) Program Authorized.--
            (1) In general.--The Secretary of Commerce is authorized to 
        carry out a program to guarantee, for a period of not more than 
        3 years, 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) whose charter is designed for affiliation with 
                State and local instructional institutions and 
                agencies, and other distance learning and instructional 
                resource providers;
                    (B) whose governing board includes members 
                representing elementary and secondary education, 
                vocational and technical education, community and State 
                colleges, and universities; and
                    (C) whose sole purpose is to acquire and operate a 
                communications satellite system dedicated to 
                transmitting instructional programming.
            (2) Eligible loans.--The Secretary of Commerce 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; and
                    (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 Commerce may not 
guarantee more than $100,000,000 in loans described in subsection (a), 
with respect to the program assisted under this section, of which--
            (1) not more than $85,000,000 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 $15,000,000 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 Commerce 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 Commerce.
    (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.
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