\[DOCID: f:publ303.105\]

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Public Law 105-303

105th Congress

An Act

To encourage the development of a commercial space industry in the

United States, and for other purposes. \<\<NOTE: Oct. 28, 1998 - \[H.R.

1702\]\>\>

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress \<\<NOTE: Commercial Space Act of

1998.\>\> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

\(a\) Short Title.\--This \<\<NOTE: 42 USC 14701 note.\>\> Act may be
cited

as the \`\`Commercial Space Act of 1998\'\'.

\(b\) Table of Contents.\--

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I\--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Sec. 101. Commercialization of Space Station.

Sec. 102. Commercial space launch amendments.

Sec. 103. Launch voucher demonstration program.

Sec. 104. Promotion of United States Global Positioning System

standards.

Sec. 105. Acquisition of space science data.

Sec. 106. Administration of Commercial Space Centers.

Sec. 107. Sources of Earth science data.

TITLE II\--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 201. Requirement to procure commercial space transportation

services.

Sec. 202. Acquisition of commercial space transportation services.

Sec. 203. Launch Services Purchase Act of 1990 amendments.

Sec. 204. Shuttle privatization.

Sec. 205. Use of excess intercontinental ballistic missiles.

Sec. 206. National launch capability study.

SEC. 2. \<\<NOTE: 42 USC 14701.\>\> DEFINITIONS.

For purposes of this Act\--

\(1\) the term \`\`Administrator\'\' means the Administrator of

the National Aeronautics and Space Administration;

\(2\) the term \`\`commercial provider\'\' means any person

providing space transportation services or other space-related

activities, primary control of which is held by persons other

than Federal, State, local, and foreign governments;

\(3\) the term \`\`payload\'\' means anything that a person

undertakes to transport to, from, or within outer space, or in

suborbital trajectory, by means of a space transportation

vehicle, but does not include the space transportation vehicle

itself except for its components which are specifically designed

or adapted for that payload;

\(4\) the term \`\`space-related activities\'\' includes research

and development, manufacturing, processing, service, and other

associated and support activities;

\(5\) the term \`\`space transportation services\'\' means the

preparation of a space transportation vehicle and its payloads

\[\[Page 112 STAT. 2844\]\]

for transportation to, from, or within outer space, or in

suborbital trajectory, and the conduct of transporting a payload

to, from, or within outer space, or in suborbital trajectory;

\(6\) the term \`\`space transportation vehicle\'\' means any

vehicle constructed for the purpose of operating in, or

transporting a payload to, from, or within, outer space, or in

suborbital trajectory, and includes any component of such

vehicle not specifically designed or adapted for a payload;

\(7\) the term \`\`State\'\' means each of the several States of

the Union, the District of Columbia, the Commonwealth of Puerto

Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth

of the Northern Mariana Islands, and any other commonwealth,

territory, or possession of the United States; and

\(8\) the term \`\`United States commercial provider\'\' means a

commercial provider, organized under the laws of the United

States or of a State, which is\--

\(A\) more than 50 percent owned by United States

nationals; or

\(B\) a subsidiary of a foreign company and the

Secretary of Transportation finds that\--

\(i\) such subsidiary has in the past evidenced

a substantial commitment to the United States

market through\--

\(I\) investments in the United States

in long-term research, development, and

manufacturing (including the manufacture

of major components and subassemblies);

and

\(II\) significant contributions to

employment in the United States; and

\(ii\) the country or countries in which such

foreign company is incorporated or organized, and,

if appropriate, in which it principally conducts

its business, affords reciprocal treatment to

companies described in subparagraph (A) comparable

to that afforded to such foreign company\'s

subsidiary in the United States, as evidenced by\--

\(I\) providing comparable

opportunities for companies described in

subparagraph (A) to participate in

Government sponsored research and

development similar to that authorized

under this Act;

\(II\) providing no barriers, to

companies described in subparagraph (A)

with respect to local investment

opportunities, that are not provided to

foreign companies in the United States;

and

\(III\) providing adequate and

effective protection for the

intellectual property rights of

companies described in subparagraph (A).

\[\[Page 112 STAT. 2845\]\]

TITLE I\--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

SEC. 101. \<\<NOTE: 42 USC 14711.\>\> COMMERCIALIZATION OF SPACE
STATION.

\(a\) Policy.\--The Congress declares that a priority goal of

constructing the International Space Station is the economic development

of Earth orbital space. The Congress further declares that free and

competitive markets create the most efficient conditions for promoting

economic development, and should therefore govern the economic

development of Earth orbital space. The Congress further declares that

the use of free market principles in operating, servicing, allocating

the use of, and adding capabilities to the Space Station, and the

resulting fullest possible engagement of commercial providers and

participation of commercial users, will reduce Space Station operational

costs for all partners and the Federal Government\'s share of the United

States burden to fund operations.

\(b\) Reports.\--(1) The Administrator shall deliver to the Committee

on Science of the House of Representatives and the Committee on

Commerce, Science, and Transportation of the Senate, within 90 days

after the date of the enactment of this Act, a study that identifies and

examines\--

\(A\) the opportunities for commercial providers to play a

role in International Space Station activities, including

operation, use, servicing, and augmentation;

\(B\) the potential cost savings to be derived from commercial

providers playing a role in each of these activities;

\(C\) which of the opportunities described in subparagraph (A)

the Administrator plans to make available to commercial

providers in fiscal years 1999 and 2000;

\(D\) the specific policies and initiatives the Administrator

is advancing to encourage and facilitate these commercial

opportunities; and

\(E\) the revenues and cost reimbursements to the Federal

Government from commercial users of the Space Station.

\(2\) The Administrator shall deliver to the Committee on Science of

the House of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate, within 180 days after the date of the

enactment of this Act, an independently conducted market study that

examines and evaluates potential industry interest in providing

commercial goods and services for the operation, servicing, and

augmentation of the International Space Station, and in the commercial

use of the International Space Station. This study shall also include

updates to the cost savings and revenue estimates made in the study

described in paragraph (1) based on the external market assessment.

\(3\) The Administrator shall deliver to the Congress, no later than

the submission of the President\'s annual budget request for fiscal year

2000, a report detailing how many proposals (whether solicited or not)

the National Aeronautics and Space Administration received during

calendar years 1997 and 1998 regarding commercial operation, servicing,

utilization, or augmentation of the International Space Station, broken

down by each of these four categories, and specifying how many

agreements the National Aeronautics and Space Administration has entered

into in response to these proposals, also broken down by these four

categories.

\[\[Page 112 STAT. 2846\]\]

\(4\) Each of the studies and reports required by paragraphs (1), (2),

and (3) shall include consideration of the potential role of State

governments as brokers in promoting commercial participation in the

International Space Station program.

SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.

\(a\) Amendments.\--Chapter 701 of title 49, United States Code, is

amended\--

\(1\) in the table of sections\--

\(A\) by amending the item relating to section 70104

to read as follows:

\`\`70104. Restrictions on launches, operations, and reentries.\'\';

\(B\) by amending the item relating to section 70108

to read as follows:

\`\`70108. Prohibition, suspension, and end of launches, operation of

launch sites and reentry sites, and reentries.\'\';

\(C\) by amending the item relating to section 70109

to read as follows:

\`\`70109. Preemption of scheduled launches or reentries.\'\';

and

\(D\) by adding at the end the following new items:

\`\`70120. Regulations.

\`\`70121. Report to Congress.\'\'.

\(2\) in section 70101\--

\(A\) by inserting \`\`microgravity research,\'\' after

\`\`information services,\'\' in subsection (a)(3);

\(B\) by inserting \`\`, reentry,\'\' after \`\`launching\'\'

both places it appears in subsection (a)(4);

\(C\) by inserting \`\`, reentry vehicles,\'\' after

\`\`launch vehicles\'\' in subsection (a)(5);

\(D\) by inserting \`\`and reentry services\'\' after

\`\`launch services\'\' in subsection (a)(6);

\(E\) by inserting \`\`, reentries,\'\' after \`\`launches\'\'

both places it appears in subsection (a)(7);

\(F\) by inserting \`\`, reentry sites,\'\' after \`\`launch

sites\'\' in subsection (a)(8);

\(G\) by inserting \`\`and reentry services\'\' after

\`\`launch services\'\' in subsection (a)(8);

\(H\) by inserting \`\`reentry sites,\'\' after \`\`launch

sites,\'\' in subsection (a)(9);

\(I\) by inserting \`\`and reentry site\'\' after \`\`launch

site\'\' in subsection (a)(9);

\(J\) by inserting \`\`, reentry vehicles,\'\' after

\`\`launch vehicles\'\' in subsection (b)(2);

\(K\) by striking \`\`launch\'\' in subsection (b)(2)(A);

\(L\) by inserting \`\`and reentry\'\' after \`\`conduct of

commercial launch\'\' in subsection (b)(3);

\(M\) by striking \`\`launch\'\' after \`\`and transfer

commercial\'\' in subsection (b)(3); and

\(N\) by inserting \`\`and development of reentry

sites,\'\' after \`\`launch-site support facilities,\'\' in

subsection (b)(4);

\(3\) in section 70102\--

\(A\) in paragraph (3)\--

\[\[Page 112 STAT. 2847\]\]

\(i\) by striking \`\`and any payload\'\' and

inserting in lieu thereof \`\`or reentry vehicle and

any payload from Earth\'\';

\(ii\) by striking the period at the end of

subparagraph (C) and inserting in lieu thereof a

comma; and

\(iii\) by adding after subparagraph (C) the

following:

\`\`including activities involved in the preparation of a launch

vehicle or payload for launch, when those activities take place

at a launch site in the United States.\'\';

\(B\) by inserting \`\`or reentry vehicle\'\' after

\`\`means of a launch vehicle\'\' in paragraph (8);

\(C\) by redesignating paragraphs (10), (11), and (12)

as paragraphs (14), (15), and (16), respectively;

\(D\) by inserting after paragraph (9) the following

new paragraphs:

\`\`(10) \`reenter\' and \`reentry\' mean to return or attempt to

return, purposefully, a reentry vehicle and its payload, if any,

from Earth orbit or from outer space to Earth.

\`\`(11) \`reentry services\' means\--

\`\`(A) activities involved in the preparation of a

reentry vehicle and its payload, if any, for reentry;

and

\`\`(B) the conduct of a reentry.

\`\`(12) \`reentry site\' means the location on Earth to which a

reentry vehicle is intended to return (as defined in a license

the Secretary issues or transfers under this chapter).

\`\`(13) \`reentry vehicle\' means a vehicle designed to return

from Earth orbit or outer space to Earth, or a reusable launch

vehicle designed to return from Earth orbit or outer space to

Earth, substantially intact.\'\'; and

\(E\) by inserting \`\`or reentry services\'\' after

\`\`launch services\'\' each place it appears in paragraph

(15), as so redesignated by subparagraph (C) of this

paragraph;

\(4\) in section 70103(b)\--

\(A\) by inserting \`\`and Reentries\'\' after

\`\`Launches\'\' in the subsection heading;

\(B\) by inserting \`\`and reentries\'\' after

\`\`commercial space launches\'\' in paragraph (1); and

\(C\) by inserting \`\`and reentry\'\' after \`\`space

launch\'\' in paragraph (2);

\(5\) in section 70104\--

\(A\) by amending the section designation and heading

to read as follows:

\`\`Sec. 70104. Restrictions on launches, operations, and reentries\'\';

\(B\) by inserting \`\`or reentry site, or to reenter a

reentry vehicle,\'\' after \`\`operate a launch site\'\' each

place it appears in subsection (a);

\(C\) by inserting \`\`or reentry\'\' after \`\`launch or

operation\'\' in subsection (a)(3) and (4);

\(D\) in subsection (b)\--

\(i\) by striking \`\`launch license\'\' and

inserting in lieu thereof \`\`license\'\';

\(ii\) by inserting \`\`or reenter\'\' after \`\`may

launch\'\'; and

\[\[Page 112 STAT. 2848\]\]

\(iii\) by inserting \`\`or reentering\'\' after

\`\`related to launching\'\'; and

\(E\) in subsection (c)\--

\(i\) by amending the subsection heading to read

as follows: \`\`Preventing Launches and Reentries.\--

\'\';

\(ii\) by inserting \`\`or reentry\'\' after

\`\`prevent the launch\'\'; and

\(iii\) by inserting \`\`or reentry\'\' after

\`\`decides the launch\'\';

\(6\) in section 70105\--

\(A\) by inserting \`\`(1)\'\' before \`\`A person may

apply\'\' in subsection (a);

\(B\) by striking \`\`receiving an application\'\' both

places it appears in subsection (a) and inserting in

lieu thereof \`\`accepting an application in accordance

with criteria established pursuant to subsection

(b)(2)(D)\'\';

\(C\) \<\<NOTE: Notice. Deadline.\>\> by adding at the end

of subsection (a) the following: \`\`The Secretary shall

transmit to the Committee on Science of the House of

Representatives and the Committee on Commerce, Science,

and Transportation of the Senate a written notice not

later than 30 days after any occurrence when a license

is not issued within the deadline established by this

subsection.

\`\`(2) In carrying out paragraph (1), the Secretary may establish

procedures for safety approvals of launch vehicles, reentry vehicles,

safety systems, processes, services, or personnel that may be used in

conducting licensed commercial space launch or reentry activities.\'\';

\(D\) by inserting \`\`or a reentry site, or the reentry

of a reentry vehicle,\'\' after \`\`operation of a launch

site\'\' in subsection (b)(1);

\(E\) by striking \`\`or operation\'\' and inserting in

lieu thereof \`\`, operation, or reentry\'\' in subsection

(b)(2)(A);

\(F\) by striking \`\`and\'\' at the end of subsection

(b)(2)(B);

\(G\) by striking the period at the end of subsection

(b)(2)(C) and inserting in lieu thereof \`\`; and\'\';

\(H\) by adding at the end of subsection (b)(2) the

following new subparagraph:

\`\`(D) regulations establishing criteria for accepting or

rejecting an application for a license under this chapter within

60 days after receipt of such application.\'\'; and

\(I\) by inserting \`\`, including the requirement to

obtain a license,\'\' after \`\`waive a requirement\'\' in

subsection (b)(3);

\(7\) in section 70106(a)\--

\(A\) by inserting \`\`or reentry site\'\' after

\`\`observer at a launch site\'\';

\(B\) by inserting \`\`or reentry vehicle\'\' after

\`\`assemble a launch vehicle\'\'; and

\(C\) by inserting \`\`or reentry vehicle\'\' after \`\`with

a launch vehicle\'\';

\(8\) in section 70108\--

\(A\) by amending the section designation and heading

to read as follows:

\[\[Page 112 STAT. 2849\]\]

\`\`Sec. 70108. Prohibition, suspension, and end of launches, operation
of

launch sites and reentry sites, and reentries\'\';

and

\(B\) in subsection (a)\--

\(i\) by inserting \`\`or reentry site, or reentry

of a reentry vehicle,\'\' after \`\`operation of a

launch site\'\'; and

\(ii\) by inserting \`\`or reentry\'\' after

\`\`launch or operation\'\';

\(9\) in section 70109\--

\(A\) by amending the section designation and heading

to read as follows:

\`\`Sec. 70109. Preemption of scheduled launches or reentries\'\';

\(B\) in subsection (a)\--

\(i\) by inserting \`\`or reentry\'\' after \`\`ensure

that a launch\'\';

\(ii\) by inserting \`\`, reentry site,\'\' after

\`\`United States Government launch site\'\';

\(iii\) by inserting \`\`or reentry date

commitment\'\' after \`\`launch date commitment\'\';

\(iv\) by inserting \`\`or reentry\'\' after

\`\`obtained for a launch\'\';

\(v\) by inserting \`\`, reentry site,\'\' after

\`\`access to a launch site\'\';

\(vi\) by inserting \`\`, or services related to a

reentry,\'\' after \`\`amount for launch services\'\';

and

\(vii\) by inserting \`\`or reentry\'\' after \`\`the

scheduled launch\'\'; and

\(C\) in subsection (c), by inserting \`\`or reentry\'\'

after \`\`prompt launching\'\';

\(10\) in section 70110\--

\(A\) by inserting \`\`or reentry\'\' after \`\`prevent the

launch\'\' in subsection (a)(2); and

\(B\) by inserting \`\`or reentry site, or reentry of a

reentry vehicle,\'\' after \`\`operation of a launch site\'\'

in subsection (a)(3)(B);

\(11\) in section 70111\--

\(A\) by inserting \`\`or reentry\'\' after \`\`launch\'\' in

subsection (a)(1)(A);

\(B\) by inserting \`\`and reentry services\'\' after

\`\`launch services\'\' in subsection (a)(1)(B);

\(C\) by inserting \`\`or reentry services\'\' after \`\`or

launch services\'\' in subsection (a)(2);

\(D\) by striking \`\`source.\'\' in subsection (a)(2) and

inserting \`\`source, whether such source is located on or

off a Federal range.\'\';

\(E\) by inserting \`\`or reentry\'\' after \`\`commercial

launch\'\' both places it appears in subsection (b)(1);

\(F\) by inserting \`\`or reentry services\'\' after

\`\`launch services\'\' in subsection (b)(2)(C);

\(G\) by inserting after subsection (b)(2) the

following new paragraph:

\`\`(3) The Secretary shall ensure the establishment of uniform

guidelines for, and consistent implementation of, this section by all

Federal agencies.\'\';

\[\[Page 112 STAT. 2850\]\]

\(H\) by striking \`\`or its payload for launch\'\' in

subsection (d) and inserting in lieu thereof \`\`or

reentry vehicle, or the payload of either, for launch or

reentry\'\'; and

\(I\) by inserting \`\`, reentry vehicle,\'\' after

\`\`manufacturer of the launch vehicle\'\' in subsection

(d);

\(12\) in section 70112\--

\(A\) in subsection (a)(1), by inserting \`\`launch or

reentry\'\' after \`\`(1) When a\'\';

\(B\) by inserting \`\`or reentry\'\' after \`\`one launch\'\'

in subsection (a)(3);

\(C\) by inserting \`\`or reentry services\'\' after

\`\`launch services\'\' in subsection (a)(4);

\(D\) in subsection (b)(1), by inserting \`\`launch or

reentry\'\' after \`\`(1) A\'\';

\(E\) by inserting \`\`or reentry services\'\' after

\`\`launch services\'\' each place it appears in subsection

(b);

\(F\) by inserting \`\`applicable\'\' after \`\`carried out

under the\'\' in paragraphs (1) and (2) of subsection (b);

\(G\) by inserting \`\`or Reentries\'\' after \`\`Launches\'\'

in the heading for subsection (e);

\(H\) by inserting \`\`or reentry site or a reentry\'\'

after \`\`launch site\'\' in subsection (e); and

\(I\) in subsection (f ), by inserting \`\`launch or

reentry\'\' after \`\`carried out under a\'\';

\(13\) in section 70113(a)(1) and (d)(1) and (2), by inserting

\`\`or reentry\'\' after \`\`one launch\'\' each place it appears;

\(14\) in section 70115(b)(1)(D)(i)\--

\(A\) by inserting \`\`reentry site,\'\' after \`\`launch

site,\'\'; and

\(B\) by inserting \`\`or reentry vehicle\'\' after

\`\`launch vehicle\'\' both places it appears;

\(15\) in section 70117\--

\(A\) by inserting \`\`or reentry site, or to reenter a

reentry vehicle\'\' after \`\`operate a launch site\'\' in

subsection (a);

\(B\) by inserting \`\`or reentry\'\' after \`\`approval of

a space launch\'\' in subsection (d);

\(C\) by amending subsection (f ) to read as follows:

\`\`(f ) Launch Not an Export; Reentry Not an Import.\--A launch

vehicle, reentry vehicle, or payload that is launched or reentered is

not, because of the launch or reentry, an export or import,

respectively, for purposes of a law controlling exports or imports,

except that payloads launched pursuant to foreign trade zone procedures

as provided for under the Foreign Trade Zones Act (19 U.S.C. 81a-81u)

shall be considered exports with regard to customs entry.\'\'; and

\(D\) in subsection (g)\--

\(i\) by striking \`\`operation of a launch

vehicle or launch site,\'\' in paragraph (1) and

inserting in lieu thereof \`\`reentry, operation of

a launch vehicle or reentry vehicle, operation of

a launch site or reentry site,\'\'; and

\(ii\) by inserting \`\`reentry,\'\' after

\`\`launch,\'\' in paragraph (2); and

\(16\) by adding at the end the following new sections:

\[\[Page 112 STAT. 2851\]\]

\`\`Sec. 70120. Regulations

\`\`(a) In General.\--The \<\<NOTE: Deadline.\>\> Secretary of

Transportation, within 9 months after the date of the enactment of this

section, shall issue regulations to carry out this chapter that

include\--

\`\`(1) guidelines for industry and State governments to

obtain sufficient insurance coverage for potential damages to

third parties;

\`\`(2) procedures for requesting and obtaining licenses to

launch a commercial launch vehicle;

\`\`(3) procedures for requesting and obtaining operator

licenses for launch;

\`\`(4) procedures for requesting and obtaining launch site

operator licenses; and

\`\`(5) procedures for the application of government

indemnification.

\`\`(b) Reentry.\--The Secretary of Transportation, within 6 months

after the date of the enactment of this section, shall issue a notice of

proposed rulemaking to carry out this chapter that includes\--

\`\`(1) procedures for requesting and obtaining licenses to

reenter a reentry vehicle;

\`\`(2) procedures for requesting and obtaining operator

licenses for reentry; and

\`\`(3) procedures for requesting and obtaining reentry site

operator licenses.

\`\`Sec. 70121. Report to Congress

\`\`The Secretary of Transportation shall submit to Congress an annual

report to accompany the President\'s budget request that\--

\`\`(1) describes all activities undertaken under this

chapter, including a description of the process for the

application for and approval of licenses under this chapter and

recommendations for legislation that may further commercial

launches and reentries; and

\`\`(2) reviews the performance of the regulatory activities

and the effectiveness of the Office of Commercial Space

Transportation.\'\'.

\(b\) Authorization of Appropriations.\--Section 70119 of title 49,

United States Code, is amended to read as follows:

\`\`Sec. 70119. Authorization of appropriations

\`\`There are authorized to be appropriated to the Secretary of

Transportation for the activities of the Office of the Associate

Administrator for Commercial Space Transportation\--

\`\`(1) \$6,275,000 for the fiscal year ending September 30,

1999; and

\`\`(2) \$6,600,000 for the fiscal year ending September 30,

2000.\'\'.

\(c\) Effective Date.\--The \<\<NOTE: 49 USC 70105 note.\>\> amendments

made by subsection (a)(6)(B) shall take effect upon the effective date

of final regulations issued pursuant to section 70105(b)(2)(D) of title

49, United States Code, as added by subsection (a)(6)(H).

SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

Section 504 of the National Aeronautics and Space Administration

Authorization Act, Fiscal Year 1993 (15 U.S.C. 5803) is amended\--

\[\[Page 112 STAT. 2852\]\]

\(1\) in subsection (a)\--

\(A\) by striking \`\`the Office of Commercial Programs

within\'\'; and

\(B\) by striking \`\`Such program shall not be

effective after September 30, 1995.\'\';

\(2\) by striking subsection (c); and

\(3\) by redesignating subsections (d) and (e) as subsections

\(c\) and (d), respectively.

SEC. 104. \<\<NOTE: 42 USC 14712.\>\> PROMOTION OF UNITED STATES GLOBAL

POSITIONING SYSTEM STANDARDS.

\(a\) Finding.\--The Congress finds that the Global Positioning System,

including satellites, signal equipment, ground stations, data links, and

associated command and control facilities, has become an essential

element in civil, scientific, and military space development because of

the emergence of a United States commercial industry which provides

Global Positioning System equipment and related services.

\(b\) International Cooperation.\--In order to support and sustain the

Global Positioning System in a manner that will most effectively

contribute to the national security, public safety, scientific, and

economic interests of the United States, the Congress encourages the

President to\--

\(1\) ensure the operation of the Global Positioning System on

a continuous worldwide basis free of direct user fees;

\(2\) enter into international agreements that promote

cooperation with foreign governments and international

organizations to\--

\(A\) establish the Global Positioning System and its

augmentations as an acceptable international standard;

and

\(B\) eliminate any foreign barriers to applications

of the Global Positioning System worldwide; and

\(3\) provide clear direction and adequate resources to the

Assistant Secretary of Commerce for Communications and

Information so that on an international basis the Assistant

Secretary can\--

\(A\) achieve and sustain efficient management of the

electromagnetic spectrum used by the Global Positioning

System; and

\(B\) protect that spectrum from disruption and

interference.

SEC. 105. \<\<NOTE: 42 USC 14713.\>\> ACQUISITION OF SPACE SCIENCE DATA.

\(a\) Acquisition From Commercial Providers.\--The Administrator shall,

to the extent possible and while satisfying the scientific or

educational requirements of the National Aeronautics and Space

Administration, and where appropriate, of other Federal agencies and

scientific researchers, acquire, where cost effective, space science

data from a commercial provider.

\(b\) Treatment of Space Science Data as Commercial Item Under

Acquisition Laws.\--Acquisitions of space science data by the

Administrator shall be carried out in accordance with applicable

acquisition laws and regulations (including chapters 137 and 140 of

title 10, United States Code). For purposes of such law and regulations,

space science data shall be considered to be a commercial item. Nothing

in this subsection shall be construed to preclude

\[\[Page 112 STAT. 2853\]\]

the United States from acquiring, through contracts with commercial

providers, sufficient rights in data to meet the needs of the scientific

and educational community or the needs of other government activities.

\(c\) Definition.\--For purposes of this section, the term \`\`space

science data\'\' includes scientific data concerning\--

\(1\) the elemental and mineralogical resources of the moon,

asteroids, planets and their moons, and comets;

\(2\) microgravity acceleration; and

\(3\) solar storm monitoring.

\(d\) Safety Standards.\--Nothing in this section shall be construed to

prohibit the Federal Government from requiring compliance with

applicable safety standards.

\(e\) Limitation.\--This section does not authorize the National

Aeronautics and Space Administration to provide financial assistance for

the development of commercial systems for the collection of space

science data.

SEC. 106. \<\<NOTE: 42 USC 14714.\>\> ADMINISTRATION OF COMMERCIAL SPACE

CENTERS.

The Administrator shall administer the Commercial Space Center

program in a coordinated manner from National Aeronautics and Space

Administration headquarters in Washington, D.C.

SEC. 107. \<\<NOTE: 42 USC 14715.\>\> SOURCES OF EARTH SCIENCE DATA.

\(a\) Acquisition.\--The Administrator shall, to the extent possible

and while satisfying the scientific or educational requirements of the

National Aeronautics and Space Administration, and where appropriate, of

other Federal agencies and scientific researchers, acquire, where cost-

effective, space-based and airborne Earth remote sensing data, services,

distribution, and applications from a commercial provider.

\(b\) Treatment as Commercial Item Under Acquisition Laws.\--

Acquisitions by the Administrator of the data, services, distribution,

and applications referred to in subsection (a) shall be carried out in

accordance with applicable acquisition laws and regulations (including

chapters 137 and 140 of title 10, United States Code). For purposes of

such law and regulations, such data, services, distribution, and

applications shall be considered to be a commercial item. Nothing in

this subsection shall be construed to preclude the United States from

acquiring, through contracts with commercial providers, sufficient

rights in data to meet the needs of the scientific and educational

community or the needs of other government activities.

\(c\) Study.\--(1) The Administrator shall conduct a study to determine

the extent to which the baseline scientific requirements of Earth

Science can be met by commercial providers, and how the National

Aeronautics and Space Administration will meet such requirements which

cannot be met by commercial providers.

\(2\) The study conducted under this subsection shall\--

\(A\) make recommendations to promote the availability of

information from the National Aeronautics and Space

Administration to commercial providers to enable commercial

providers to better meet the baseline scientific requirements of

Earth Science;

\(B\) make recommendations to promote the dissemination to

commercial providers of information on advanced technology

research and development performed by or for the National

Aeronautics and Space Administration; and

\[\[Page 112 STAT. 2854\]\]

\(C\) identify policy, regulatory, and legislative barriers to

the implementation of the recommendations made under this

subsection.

\(3\) The results of the study conducted under this subsection shall

be transmitted to the Congress within 6 months after the date of the

enactment of this Act.

\(d\) Safety Standards.\--Nothing in this section shall be construed to

prohibit the Federal Government from requiring compliance with

applicable safety standards.

\(e\) Administration and Execution.\--This section shall be carried out

as part of the Commercial Remote Sensing Program at the Stennis Space

Center.

(f ) Remote Sensing.\--

\(1\) Application contents.\--Section 201(b) of the Land Remote

Sensing Policy Act of 1992 (15 U.S.C. 5621(b)) is amended\--

\(A\) by inserting \`\`(1)\'\' after \`\`National

Security.\--\'\'; and

\(B\) by adding at the end the following new

paragraph:

\`\`(2) \<\<NOTE: Federal Register, publication.\>\> The Secretary,
within

6 months after the date of the enactment of the Commercial Space Act of

1998, shall publish in the Federal Register a complete and specific list

of all information required to comprise a complete application for a

license under this title. An application shall be considered complete

when the applicant has provided all information required by the list

most recently published in the Federal Register before the date the

application was first submitted. Unless the Secretary has, within 30

days after receipt of an application, notified the applicant of

information necessary to complete an application, the Secretary may not

deny the application on the basis of the absence of any such

information.\'\'.

\(2\) Notification of agreements.\--Section 202(b)(6) of the

Land Remote Sensing Policy Act of 1992 (15 U.S.C. 5622(b)(6)) is

amended by inserting \`\`significant or substantial\'\' after

\`\`Secretary of any\'\'.

TITLE II\--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

SEC. 201. \<\<NOTE: 42 USC 14731.\>\> REQUIREMENT TO PROCURE COMMERCIAL

SPACE TRANSPORTATION SERVICES.

\(a\) In General.\--Except as otherwise provided in this section, the

Federal Government shall acquire space transportation services from

United States commercial providers whenever such services are required

in the course of its activities. To the maximum extent practicable, the

Federal Government shall plan missions to accommodate the space

transportation services capabilities of United States commercial

providers.

\(b\) Exceptions.\--The Federal Government shall not be required to

acquire space transportation services under subsection (a) if, on a

case-by-case basis, the Administrator or, in the case of a national

security issue, the Secretary of the Air Force, determines that\--

\(1\) a payload requires the unique capabilities of the Space

Shuttle;

\[\[Page 112 STAT. 2855\]\]

\(2\) cost effective space transportation services that meet

specific mission requirements would not be reasonably available

from United States commercial providers when required;

\(3\) the use of space transportation services from United

States commercial providers poses an unacceptable risk of loss

of a unique scientific opportunity;

\(4\) the use of space transportation services from United

States commercial providers is inconsistent with national

security objectives;

\(5\) the use of space transportation services from United

States commercial providers is inconsistent with international

agreements for international collaborative efforts relating to

science and technology;

\(6\) it is more cost effective to transport a payload in

conjunction with a test or demonstration of a space

transportation vehicle owned by the Federal Government; or

\(7\) a payload can make use of the available cargo space on a

Space Shuttle mission as a secondary payload, and such payload

is consistent with the requirements of research, development,

demonstration, scientific, commercial, and educational programs

authorized by the Administrator.

Nothing in this section shall prevent the Administrator from planning or

negotiating agreements with foreign entities for the launch of Federal

Government payloads for international collaborative efforts relating to

science and technology.

\(c\) Delayed Effect.\--Subsection (a) shall not apply to space

transportation services and space transportation vehicles acquired or

owned by the Federal Government before the date of the enactment of this

Act, or with respect to which a contract for such acquisition or

ownership has been entered into before such date.

\(d\) Historical Purposes.\--This section shall not be construed to

prohibit the Federal Government from acquiring, owning, or maintaining

space transportation vehicles solely for historical display purposes.

SEC. 202. \<\<NOTE: 42 USC 14732.\>\> ACQUISITION OF COMMERCIAL SPACE

TRANSPORTATION SERVICES.

\(a\) Treatment of Commercial Space Transportation Services as

Commercial Item Under Acquisition Laws.\--Acquisitions of space

transportation services by the Federal Government shall be carried out

in accordance with applicable acquisition laws and regulations

(including chapters 137 and 140 of title 10, United States Code). For

purposes of such law and regulations, space transportation services

shall be considered to be a commercial item.

\(b\) Safety Standards.\--Nothing in this section shall be construed to

prohibit the Federal Government from requiring compliance with

applicable safety standards.

SEC. 203. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.)

is amended\--

\(1\) \<\<NOTE: 42 USC 2465b.\>\> by striking section 202;

\(2\) \<\<NOTE: 42 USC 2465c.\>\> in section 203\--

\(A\) by striking paragraphs (1) and (2); and

\(B\) by redesignating paragraphs (3) and (4) as

paragraphs (1) and (2), respectively;

\(3\) \<\<NOTE: 42 USC 2465d, 2465e.\>\> by striking sections 204

and 205; and

\(4\) \<\<NOTE: 42 USC 2465f.\>\> in section 206\--

\[\[Page 112 STAT. 2856\]\]

\(A\) by striking \`\`(a) Commercial Payloads on the

Space Shuttle.\--\'\'; and

\(B\) by striking subsection (b).

SEC. 204. \<\<NOTE: 42 USC 14733.\>\> SHUTTLE PRIVATIZATION.

\(a\) Policy and Preparation.\--The Administrator shall prepare for an

orderly transition from the Federal operation, or Federal management of

contracted operation, of space transportation systems to the Federal

purchase of commercial space transportation services for all

nonemergency space transportation requirements for transportation to and

from Earth orbit, including human, cargo, and mixed payloads. In those

preparations, the Administrator shall take into account the need for

short-term economies, as well as the goal of restoring the National

Aeronautics and Space Administration\'s research focus and its mandate
to

promote the fullest possible commercial use of space. As part of those

preparations, the Administrator shall plan for the potential

privatization of the Space Shuttle program. Such plan shall keep safety

and cost effectiveness as high priorities. Nothing in this section shall

prohibit the National Aeronautics and Space Administration from

studying, designing, developing, or funding upgrades or modifications

essential to the safe and economical operation of the Space Shuttle

fleet.

\(b\) Feasibility Study.\--The Administrator shall conduct a study of

the feasibility of implementing the recommendation of the Independent

Shuttle Management Review Team that the National Aeronautics and Space

Administration transition toward the privatization of the Space Shuttle.

The study shall identify, discuss, and, where possible, present options

for resolving, the major policy and legal issues that must be addressed

before the Space Shuttle is privatized, including\--

\(1\) whether the Federal Government or the Space Shuttle

contractor should own the Space Shuttle orbiters and ground

facilities;

\(2\) whether the Federal Government should indemnify the

contractor for any third party liability arising from Space

Shuttle operations, and, if so, under what terms and conditions;

\(3\) whether payloads other than National Aeronautics and

Space Administration payloads should be allowed to be launched

on the Space Shuttle, how missions will be prioritized, and who

will decide which mission flies and when;

\(4\) whether commercial payloads should be allowed to be

launched on the Space Shuttle and whether any classes of

payloads should be made ineligible for launch consideration;

\(5\) whether National Aeronautics and Space Administration

and other Federal Government payloads should have priority over

non-Federal payloads in the Space Shuttle launch assignments,

and what policies should be developed to prioritize among

payloads generally;

\(6\) whether the public interest requires that certain Space

Shuttle functions continue to be performed by the Federal

Government; and

\(7\) how much cost savings, if any, will be generated by

privatization of the Space Shuttle.

\(c\) Report to Congress.\--Within 60 days after the date of the

enactment of this Act, the National Aeronautics and Space Administration

shall complete the study required under subsection

\[\[Page 112 STAT. 2857\]\]

\(b\) and shall submit a report on the study to the Committee on
Commerce,

Science, and Transportation of the Senate and the Committee on Science

of the House of Representatives.

SEC. 205. \<\<NOTE: 42 USC 14734.\>\> USE OF EXCESS INTERCONTINENTAL

BALLISTIC MISSILES.

\(a\) In general.\--The Federal Government shall not\--

\(1\) convert any missile described in subsection (c) to a

space transportation vehicle configuration; or

\(2\) transfer ownership of any such missile to another

person, except as provided in subsection (b).

\(b\) Authorized Federal Uses.\--(1) A missile described in subsection

\(c\) may be converted for use as a space transportation vehicle by the

Federal Government if, except as provided in paragraph (2) and at least

30 days before such conversion, the agency seeking to use the missile as

a space transportation vehicle transmits to the Committee on National

Security and the Committee on Science of the House of Representatives,

and to the Committee on Armed Services and the Committee on Commerce,

Science, and Transportation of the Senate, a certification that the use

of such missile\--

\(A\) would result in cost savings to the Federal Government

when compared to the cost of acquiring space transportation

services from United States commercial providers;

\(B\) meets all mission requirements of the agency, including

performance, schedule, and risk requirements;

\(C\) is consistent with international obligations of the

United States; and

\(D\) is approved by the Secretary of Defense or his designee.

\(2\) The requirement under paragraph (1) that the certification

described in that paragraph must be transmitted at least 30 days before

conversion of the missile shall not apply if the Secretary of Defense

determines that compliance with that requirement would be inconsistent

with meeting immediate national security requirements.

\(c\) Missiles Referred to.\-- The missiles referred to in this section

are missiles owned by the United States that\--

\(1\) were formerly used by the Department of Defense for

national defense purposes as intercontinental ballistic

missiles; and

\(2\) have been declared excess to United States national

defense needs and are in compliance with international

obligations of the United States.

SEC. 206. \<\<NOTE: 42 USC 14735.\>\> NATIONAL LAUNCH CAPABILITY STUDY.

\(a\) Findings.\--Congress finds that a robust satellite and launch

industry in the United States serves the interest of the United States

by\--

\(1\) contributing to the economy of the United States;

\(2\) strengthening employment, technological, and scientific

interests of the United States; and

\(3\) serving the foreign policy and national security

interests of the United States.

\(b\) Definitions.\--In this section:

\(1\) Secretary.\--The term \`\`Secretary\'\' means the Secretary

of Defense.

\(2\) Total potential national mission model.\--The term

\`\`total potential national mission model\'\' means a model that\--

\[\[Page 112 STAT. 2858\]\]

\(A\) is determined by the Secretary, in consultation

with the Administrator, to assess the total potential

space missions to be conducted in the United States

during a specified period of time; and

\(B\) includes all launches in the United States

(including launches conducted on or off a Federal

range).

\(c\) Report.\--

\(1\) In general.\--Not \<\<NOTE: Deadline.\>\> later than 180 days

after the date of enactment of this Act, the Secretary shall, in

consultation with the Administrator and appropriate

representatives of the satellite and launch industry and the

governments of States and political subdivisions thereof\--

\(A\) prepare a report that meets the requirements of

this subsection; and

\(B\) submit that report to the Committee on Commerce,

Science, and Transportation of the Senate and the

Committee on Science of the House of Representatives.

\(2\) Requirements for report.\--The report prepared under this

subsection shall\--

\(A\) identify the total potential national mission

model for the period beginning on the date of the report

and ending on December 31, 2007;

\(B\) identify the resources that are necessary or

available to carry out the total potential national

mission model described in subparagraph (A), including\--

\(i\) launch property and services of the

Department of Defense, the National Aeronautics

and Space Administration, and non-Federal

facilities; and

\(ii\) the ability to support commercial launch-

on-demand on short notification, taking into

account Federal requirements, at launch sites or

test ranges in the United States;

\(C\) identify each deficiency in the resources

referred to in subparagraph (B); and

\(D\) with respect to the deficiencies identified

under subparagraph (C), include estimates of the level

of funding necessary to address those deficiencies for

the period described in subparagraph (A).

\(d\) Recommendations.\--Based on the reports under subsection (c), the

Secretary, after consultation with the Secretary of Transportation, the

Secretary of Commerce, and representatives from interested private

sector entities, States, and local governments, shall\--

\(1\) identify opportunities for investment by non-Federal

entities (including States and political subdivisions thereof

and private sector entities) to assist the Federal Government in

providing launch capabilities for the commercial space industry

in the United States;

\(2\) identify one or more methods by which, if sufficient

resources referred to in subsection (c)(2)(D) are not available

to the Department of Defense and the National Aeronautics and

Space Administration, the control of the launch property and

launch services of the Department of Defense and the National

Aeronautics and Space Administration may be transferred from the

Department of Defense and the National Aeronautics and Space

Administration to\--

\(A\) one or more other Federal agencies;

\[\[Page 112 STAT. 2859\]\]

\(B\) one or more States (or subdivisions thereof);

\(C\) one or more private sector entities; or

\(D\) any combination of the entities described in

subparagraphs (A) through (C); and

\(3\) identify the technical, structural, and legal

impediments associated with making launch sites or test ranges

in the United States viable and competitive.

Approved October 28, 1998.

LEGISLATIVE HISTORY\--H.R. 1702:

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

HOUSE REPORTS: No. 105-347 (Comm. on Science).

SENATE REPORTS: No. 105-198 (Comm. on Commerce, Science, and

Transportation).

CONGRESSIONAL RECORD:

Vol. 143 (1997):

Nov. 4, considered and passed House.

Vol. 144 (1998):

July 30, considered and passed

Senate, amended.

Oct. 5, House concurred in Senate

amendment with an amendment.

Oct. 8, Senate concurred in House

amendment.

\<all\>