Launch Services Corporation Act of 1994

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Launch Services Corporation Act of 
1994''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Corporation'' means the Launch Services 
        Corporation created under section 4 of this Act; and
            (2) the terms ``launch'', ``launch property'', ``launch 
        services'', ``launch site'', and ``launch vehicle'' have the 
        meaning given such terms under section 4 of the Commercial 
        Space Launch Act (49 U.S.C. App. 2603), except that the 
        provisions of this Act shall not apply to activities relating 
        to suborbital trajectories.

SEC. 3. FEDERAL RESPONSIBILITIES.

    (a) President.--The President shall--
            (1) coordinate the activities of Federal agencies with 
        space launch responsibilities, so as to ensure that there is 
        full and effective compliance at all times with this Act;
            (2) ensure that timely treaties, trade agreements, and 
        other appropriate arrangements are made, and appropriate 
        regulations are issued, to enable foreign customers to obtain 
        launch services from the Corporation and to otherwise 
        participate in the launch services system established pursuant 
        to this Act; and
            (3) after consultation with appropriate Federal agencies, 
        issue a statement of the technical requirements of the Federal 
        Government for the system referred to in paragraph (2).
    (b) Research and Development.--The National Aeronautics and Space 
Administration and the Department of Defense shall cooperate with the 
Corporation on research and development related to the purposes of the 
Corporation.
    (c) Federal Agencies in General.--The Federal Government shall--
            (1) procure, to the maximum extent feasible, needed launch 
        services from the Corporation;
            (2) pay fair market value for services provided to the 
        Federal Government by the Corporation;
            (3) extend to the Corporation first priority for access to 
        launch property and launch sites in a mutually agreeable 
        manner;
            (4) furnish range safety for launches from Government-owned 
        facilities; and
            (5) to the extent feasible, furnish other services to the 
        Corporation as may be required in connection with the 
        establishment and operation of the Corporation.

SEC. 4. LAUNCH SERVICES CORPORATION.

    (a) Creation.--There is authorized to be created a Launch Services 
Corporation, a for-profit corporation which shall not be an agency or 
establishment of the United States Government and which shall be 
incorporated under the laws of a State of the United States.
    (b) Purposes.--(1) The purposes of the Corporation shall be--
            (A) to broaden and speed the economic use of space;
            (B) to enhance the economic competitiveness of the United 
        States launch services industry and all industrial, commercial, 
        and financial businesses related thereto;
            (C) to enhance national security;
            (D) to serve the launch needs of--
                    (i) the Federal Government;
                    (ii) private sector customers in the United States; 
                and
                    (iii) appropriate foreign customers; and
            (E) to remain a viable and competitive corporation.
    (2) It shall not be a purpose of the Corporation to construct 
launch vehicles.
    (c) Process of Organization.--The President shall, as expeditiously 
as possible, appoint incorporators, by and with the advice and consent 
of the Senate, who shall serve as the initial board of directors of the 
Corporation until the first annual meeting of stockholders or until 
their successors are elected and appointed under subsection (d) and 
qualified. Such incorporators shall arrange for an initial stock 
offering and shall take whatever other actions are necessary to 
establish the Corporation, including the filing of articles of 
incorporation, subject to the approval of the President.
    (d) Directors and Officers.--
            (1) Directors.--The Corporation shall have a board of 
        directors consisting of 15 individuals who are citizens of the 
        United States, of whom one shall be elected annually by the 
        board to serve as chairman. Three members of the board shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate, for terms of three years or until their 
        successors have been appointed and qualified, except that one 
        of the members first appointed under this sentence shall be 
        appointed to a term of one year, and one of such members shall 
        be appointed to a term of two years. Any member appointed to 
        fill a vacancy shall be appointed only for the unexpired term 
        of the director being replaced. The remaining 12 members of the 
        board shall be elected annually by the stockholders.
            (2) Officers.--The Corporation shall have such officers as 
        may be named and appointed by the board, at rates of 
        compensation fixed by the board, and serving at the pleasure of 
        the board. No individual other than a citizen of the United 
        States may be an officer of the Corporation. No officer of the 
        Corporation shall receive any salary from any source other than 
        the Corporation while employed by the Corporation.
    (e) Financing.--
            (1) Stock.--The Corporation may issue and have outstanding, 
        in such amounts as it shall determine, shares of capital stock, 
        without par value, which shall carry voting rights and be 
        eligible for dividends. The stock shall be sold in a manner to 
        encourage the widest distribution to the public. No company, 
        including any company controlling, controlled by, or under 
        common control with such company, may hold more than 15 percent 
        of the capital stock of the Corporation.
            (2) Additional instruments.--The Corporation may issue, in 
        addition to the stock authorized by paragraph (1), nonvoting 
        securities, bonds, debentures, and other certificates of 
        indebtedness.
    (f) Powers.--In order to achieve its purposes, the Corporation 
may--
            (1) plan, initiate, own, manage, and operate itself, or in 
        conjunction with other business entities, a commercial launch 
        services system;
            (2) furnish, for hire, launch services to public and 
        private entities of the United States and, except as otherwise 
        prohibited by law, to foreign customers;
            (3) own and operate launch property, launch sites, and one 
        or more types of launch vehicle, provide or contract for range 
        safety operations at those launch sites, and provide or 
        contract for any other such services as may be required to 
        carry out its purposes; and
            (4) conduct appropriate research and development.
    (g) Recoupment.--Not later than 180 days after the date of 
enactment of this Act, the President shall establish procedures for the 
repayment by the Corporation to the Federal Government of an amount 
equal to the amount of Federal funding that has been provided to the 
Corporation.

SEC. 5. FOREIGN BUSINESS NEGOTIATIONS.

    Whenever the Corporation shall enter into business negotiations 
with respect to launch property, operations, or services authorized by 
this Act with any international or foreign entity, it shall notify the 
Department of State of the negotiations, and the Department of State 
shall advise the Corporation of relevant foreign policy considerations. 
Throughout such negotiations the Corporation shall keep the Department 
of State informed with respect to such considerations. The Corporation 
may request the Department of State to assist in the negotiations, and 
that Department shall render such assistance as may be appropriate.

SEC. 6. REPORTS TO THE CONGRESS.

    (a) President's Report.--The President shall transmit to the 
Congress in January of each year a report which shall include a 
comprehensive description of the activities and accomplishments of the 
Federal Government and the Corporation during the preceding calendar 
year under this Act, together with an evaluation of such activities and 
accomplishments in terms of the purposes of the Corporation and any 
recommendations for additional legislative or other action which the 
President may consider necessary for such purposes.
    (b) Corporation's Report.--The Corporation shall transmit to the 
President and Congress, annually and at such other times as it 
considers appropriate, a comprehensive and detailed report of its 
operations, activities, and accomplishments under this Act.

SEC. 7. SUNSET.

    No Federal funding shall be provided to the Corporation after 
December 31, 2000, except as payment for services provided to the 
Federal Government by the Corporation.

Summary: Launch Services Corporation Act of 1994 - Authorizes the creation of a non-Federal, for profit Launch Services Corporation to provide space launch services to the Federal Government and other domestic and foreign customers. Ends Federal funding for the Corporation after the year 2000.