[Congressional Record Volume 141, Number 99 (Friday, June 16, 1995)]
[Senate]
[Page S8560]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself and Mr. Kennedy):
  S. 941. A bill to provide for the termination of the status of the 
College Construction Loan Insurance Association (``the Corporation'') 
as a Government-sponsored enterprise, to require the Secretary of 
Education to divest himself of the Corporation's stock, and for other 
purposes; to the Committee on Labor and Human Resources.


 THE COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION PRIVATIZATION ACT 
                                OF 1995

 Mr. DODD. Mr. President, I am pleased to introduce legislation 
offered by the Clinton administration to privatize the College 
Construction Loan Insurance Association, better known as Connie Lee. I 
am pleased to be joined in the effort by the ranking member of the 
committee, Senator Kennedy.
  Connie Lee was created in the Higher Education Act Amendments of 
1986, and I was pleased to have shepherded this part of that larger 
effort through the Congress. So it is particularly rewarding for me to 
be here today to begin this exciting transition for Connie Lee.
  Connie Lee was created with a vital and focused mission--to assist 
colleges in the repair, modernization, and construction of their 
facilities. Like many institutions, colleges, and universities need 
multiyear financing to keep up with their construction and renovation 
needs. For institutions with strong financial backing and large 
endowments, issuing bonds and securing capital has not been a major 
problem. Institutions that are less secure and have a lower bond 
rating, however, face major obstacles in obtaining the necessary 
financing.
  It was clear to us in 1986 that we, as a nation, have a major stake 
in assuring that our higher education institutions both literally and 
figuratively sit on a strong foundation. Connie Lee was created to 
address this need and, since its incorporation in 1987, it has provided 
increased access to the bond markets for nearly 100 needy institutions 
through bond insurance. Connie Lee has insured bond issues totaling 
just over $2.5 billion and has assisted institutions such as the 
University of Denver, the University of Massachusetts Medical School, 
several community colleges, and numerous other institutions in nearly 
every State.
  With its significant record, Connie Lee has clearly proven its 
maturity and strength. Since its founding, Connie Lee has maintained 
its triple-A financial rating, and a recent Standard and Poor's report 
confirmed its strong financial position. Connie Lee is clearly ready 
for privatization. Even though the original Federal investment of $19 
million was small, every dollar is clearly needed in our effort to 
eliminate the budget deficit.
  The administration's bill is quite straightforward. It would repeal 
the section of the Higher Education Act that authorized the creation of 
Connie Lee and governs its activities. In addition, it would provide 
for the Secretary of the Treasury to sell the 15-percent share the 
Government holds in Connie Lee.
  The Subcommittee on Education, Arts and Humanities of the Labor and 
Human Resources Committee will hold hearings on this matter, as well as 
the proposal to privatize Sallie Mae early next week. While I think the 
administration's proposal is clearly a good start, there are some 
important issues for us to examine in the committee.
  These issues are modest, however, and I hope that the committee can 
move quickly on this important and ground-breaking legislation.
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