IIB 

108TH CONGRESS 

2D SESSION H. R. 3752

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2004

Received; read twice and referred to the Committee on Commerce, Science, 

and Transportation 

AN ACT

To promote the development of the emerging commercial 

human space flight industry, to extend the liability indemnification regime for the commercial space transportation industry, to authorize appropriations for the Office 

of the Associate Administrator for Commercial Space 

Transportation, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Commercial Space 

5 Launch Amendments Act of 2004’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds that—

8 (1) the goal of opening space to the American 

9 people and their private commercial, scientific, and 

10 cultural enterprises should guide Federal space in11 vestments, policies, and regulations; 

12 (2) private industry has begun to develop com13 mercial launch vehicles capable of carrying human 

14 beings into space, and greater private investment in 

15 these efforts will stimulate the Nation’s commercial 

16 space transportation industry as a whole; 

17 (3) space transportation is inherently risky; 

18 (4) a critical area of responsibility for the Of19 fice of the Associate Administrator for Commercial 

20 Space Transportation is to regulate the emerging 

21 commercial human space flight industry; and 

22 (5) the public interest is served by creating a 

23 clear legal and regulatory regime for commercial 

24 human space flight. 
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1 SEC. 3. AMENDMENTS. 

2 (a) FINDINGS AND PURPOSES.—Section 70101 of 

3 title 49, United States Code, is amended—

4 (1) in subsection (a)(3), by inserting ‘‘human 

5 space flight,’’ after ‘‘microgravity research,’’; and 

6 (2) in subsection (a)(4)—

7 (A) by striking ‘‘satellite’’; and 

8 (B) by striking ‘‘services now available 

9 from’’ and inserting ‘‘capabilities of’’. 

10 (b) DEFINITIONS.—Section 70102 of title 49, United 

11 States Code, is amended—

12 (1) by redesignating paragraphs (2) through 

13 (17) as paragraphs (3), (4), (5), (6), (7), (8), (9), 

14 (10), (12), (13), (14), (15), (16), (18), (21), and 

15 (22), respectively; 

16 (2) by inserting after paragraph (1) the fol17 lowing new paragraph: 

18 ‘‘(2) ‘crew’ means any employee of a licensee or 

19 transferee, or of a contractor or subcontractor of a 

20 licensee or transferee, who performs activities in the 

21 course of that employment directly relating to the 

22 launch, reentry, or other operation of or in a launch 

23 vehicle or reentry vehicle that carries human 

24 beings.’’; 

25 (3) in paragraph (4), as so redesignated by 

26 paragraph (1) of this subsection, by inserting ‘‘, 
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1 crew, or space flight participant’’ after ‘‘any pay2 load’’; 

3 (4) in paragraph (6)(A), as so redesignated by 

4 paragraph (1) of this subsection, by striking ‘‘and 

5 payload’’ and inserting ‘‘, payload, crew (including 

6 crew training), or space flight participant’’; 

7 (5) in paragraph (8)(A), as so redesignated by 

8 paragraph (1) of this subsection, by inserting ‘‘or 

9 human beings’’ after ‘‘place a payload’’; 

10 (6) by inserting after paragraph (10), as so re11 designated by paragraph (1) of this subsection, the 

12 following new paragraph: 

13 ‘‘(11) ‘permit’ means an experimental permit 

14 issued under section 70105.’’. 

15 (7) in paragraph (13), as so redesignated by 

16 paragraph (1) of this subsection, by inserting ‘‘crew, 

17 or space flight participants,’’ after ‘‘and its pay18 load,’’; 

19 (8) in paragraph (14)(A), as so redesignated by 

20 paragraph (1) of this subsection, by striking ‘‘and 

21 its payload’’ inserting ‘‘and payload, crew (including 

22 crew training), or space flight participant’’; 

23 (9) by inserting after paragraph (16), as so re24 designated by paragraph (1) of this subsection, the 

25 following new paragraph: 
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1 ‘‘(17) ‘space flight participant’ means an indi2 vidual, who is not crew, carried within a launch vehi3 cle or reentry vehicle.’’; 

4 (10) by inserting after paragraph (18), as so 

5 redesignated by paragraph (1) of this subsection, the 

6 following new paragraphs: 

7 ‘‘(19) ‘suborbital rocket’ means a rocket-pro8 pelled vehicle intended for flight on a suborbital tra9 jectory whose thrust is greater than its lift for the 

10 majority of the powered portion of its flight. 

11 ‘‘(20) ‘suborbital trajectory’ means the inten12 tional flight path of a launch vehicle, reentry vehicle, 

13 or any portion thereof, whose vacuum instantaneous 

14 impact point does not leave the surface of the 

15 Earth.’’; and 

16 (11) in paragraph (21), as so redesignated by 

17 paragraph (1) of this subsection—

18 (A) by striking ‘‘or’’ at the end of subpara19 graph (C); 

20 (B) by striking the period at the end of 

21 subparagraph (D) and inserting ‘‘; or’’; and 

22 (C) by adding at the end the following new 

23 subparagraph: 

24 ‘‘(E) crew or space flight participants.’’.
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1 (c) COMMERCIAL HUMAN SPACE FLIGHT.—(1) Sec2 tion 70103(a) of title 49, United States Code, is amended 

3 by inserting ‘‘, through the Associate Administrator for 

4 Commercial Space Transportation,’’ after ‘‘Secretary of 

5 Transportation’’. 

6 (2) Section 70103(b)(1) of title 49, United States 

7 Code, is amended by inserting ‘‘, including those involving 

8 space flight participants’’ after ‘‘private sector’’. 

9 (3) Section 70104(a) of title 49, United States Code, 

10 is amended—

11 (A) by striking ‘‘LICENSE REQUIREMENT.—A 

12 license issued or transferred under this chapter’’ and 

13 inserting ‘‘REQUIREMENT.—A license issued or 

14 transferred under this chapter, or a permit,’’; and 

15 (B) by inserting after paragraph (4) the fol16 lowing: 

17 ‘‘Notwithstanding this subsection, a permit shall not au18 thorize a person to operate a launch site or reentry site.’’. 

19 (4) Section 70104(b) of title 49, United States Code, 

20 is amended by inserting ‘‘or permit’’ after ‘‘holder of a 

21 license’’. 

22 (5) The section heading of section 70105 of title 49, 

23 United States Code, is amended by striking ‘‘License 

24 applications’’ and inserting ‘‘Applications’’, and 

25 the item relating to that section in the table of sections 
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1 for chapter 701 of title 49, United States Code, is amend2 ed accordingly. 

3 (6) Section 70105(a) of title 49, United States Code, 

4 is amended—

5 (A) by striking ‘‘APPLICATIONS.— ’’ and insert6 ing ‘‘LICENSES.—’’; 

7 (B) in paragraph (1), by striking ‘‘subsection 

8 (b)(2)(D)’’ both places it appears and inserting 

9 ‘‘subsection (c)(2)(D)’’; and 

10 (C) in paragraph (2), by inserting ‘‘, including 

11 crews,’’ after ‘‘or personnel’’. 

12 (7) Section 70105 of title 49, United States Code, 

13 is amended by redesignating subsections (b) and (c) as 

14 subsections (c) and (d), respectively, and by inserting after 

15 subsection (a) the following new subsection: 

16 ‘‘(b) EXPERIMENTAL PERMITS.—(1) A person may 

17 apply to the Secretary of Transportation for an experi18 mental permit under this subsection in the form and man19 ner the Secretary prescribes. Consistent with the public 

20 health and safety, safety of property, and national security 

21 and foreign policy interests of the United States, the Sec22 retary, not later than 90 days after receiving an applica23 tion pursuant to this subsection, shall issue a permit if 

24 the Secretary decides in writing that the applicant com25 plies, and will continue to comply, with this chapter and 
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1 regulations prescribed under this chapter. The Secretary 

2 shall inform the applicant of any pending issue and action 

3 required to resolve the issue if the Secretary has not made 

4 a decision not later than 60 days after receiving an appli5 cation. The Secretary shall transmit to the Committee on 

6 Science of the House of Representatives and Committee 

7 on Commerce, Science, and Transportation of the Senate 

8 a written notice not later than 15 days after any occur9 rence when a permit is not issued within the deadline es10 tablished by this subsection. 

11 ‘‘(2) In carrying out paragraph (1), the Secretary 

12 may establish procedures for safety approvals of launch 

13 vehicles, reentry vehicles, safety systems, processes, serv14 ices, or personnel, including crews, that may be used in 

15 conducting commercial space launch or reentry activities 

16 pursuant to a permit. 

17 ‘‘(3) In order to encourage the development of a com18 mercial space flight industry, the Secretary, to the great19 est extent practicable, shall when issuing permits use the 

20 authority granted under subsection (c)(2)(C). 

21 ‘‘(4) The Secretary may issue a permit only for reus22 able suborbital rockets that will be launched or reentered 

23 solely for—
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1 ‘‘(A) research and development to test new de2 sign concepts, new equipment, or new operating 

3 techniques; 

4 ‘‘(B) showing compliance with requirements as 

5 part of the process for obtaining a license under this 

6 chapter; or 

7 ‘‘(C) crew training prior to obtaining a license 

8 for a launch or reentry using the design of the rock9 et for which the permit would be issued. 

10 ‘‘(5) Permits issued under this subsection shall—

11 ‘‘(A) authorize an unlimited number of launches 

12 and reentries for a particular suborbital rocket de13 sign for the uses described in paragraph (4); and 

14 ‘‘(B) specify the modifications that may be 

15 made to the suborbital rocket without changing the 

16 design to an extent that would invalidate the permit. 

17 ‘‘(6) Permits shall not be transferable. 

18 ‘‘(7) A permit may not be issued for, and a permit 

19 that has already been issued shall cease to be valid for, 

20 a particular design for a reusable suborbital rocket after 

21 a license has been issued for the launch or reentry of a 

22 rocket of that design. 

23 ‘‘(8) No person may operate a reusable suborbital 

24 rocket under a permit for carrying any property or human 

25 being for compensation or hire. 
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1 ‘‘(9) For the purposes of sections 70106, 70107, 

2 70108, 70109, 70110, 70112, 70115, 70116, 70117, and 

3 70121 of this chapter—

4 ‘‘(A) a permit shall be considered a license; 

5 ‘‘(B) the holder of a permit shall be considered 

6 a licensee; 

7 ‘‘(C) a vehicle operating under a permit shall be 

8 considered to be licensed; and 

9 ‘‘(D) the issuance of a permit shall be consid10 ered licensing. 

11 This paragraph shall not be construed to allow the trans12 fer of a permit.’’. 

13 (8) Section 70105(c)(1) of title 49, United States 

14 Code, as so redesignated by paragraph (7) of this sub15 section, is amended by inserting ‘‘or permit’’ after ‘‘for 

16 a license’’. 

17 (9) Section 70105(c)(2)(B) of title 49, United States 

18 Code, as so redesignated by paragraph (7) of this sub19 section, is amended by striking ‘‘an additional require20 ment’’ and inserting ‘‘any additional requirement’’. 

21 (10) Section 70105(c)(2)(C) of title 49, United 

22 States Code, as so redesignated by paragraph (7) of this 

23 subsection, is amended by inserting ‘‘or permit’’ after ‘‘for 

24 a license’’.
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1 (11) Section 70105(c)(2)(D) of title 49, United 

2 States Code, as so redesignated by paragraph (7) of this 

3 subsection, is amended by inserting ‘‘or permit’’ after ‘‘for 

4 a license’’. 

5 (12) Section 70105(c)(3) of title 49, United States 

6 Code, as so redesignated by paragraph (7) of this sub7 section, is amended by adding at the end the following: 

8 ‘‘Nothing in this paragraph shall be construed to allow 

9 the launch or reentry of a launch vehicle or a reentry vehi10 cle without a license or permit if a human being will be 

11 on board.’’. 

12 (13) Section 70105(c) of title 49, United States 

13 Code, as so redesignated by paragraph (7) of this sub14 section, is amended by adding at the end the following 

15 new paragraphs: 

16 ‘‘(4) The holder of a license or a permit under this 

17 chapter may launch or reenter crew only if—

18 ‘‘(A) the crew has received training and has 

19 satisfied medical or other standards specified in the 

20 license or permit in accordance with regulations pro21 mulgated by the Secretary; and 

22 ‘‘(B) the holder of the license or permit and 

23 crew have complied with all requirements of the laws 

24 of the United States that apply to crew. 
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1 ‘‘(5) The holder of a license or a permit under this 

2 chapter may launch or reenter a space flight participant 

3 only if—

4 ‘‘(A) in accordance with regulations promul5 gated by the Secretary, the holder of the license or 

6 permit has informed the space flight participant in 

7 writing about the risks of the launch or reentry, in8 cluding the safety record of the launch or reentry ve9 hicle type, and the space flight participant has pro10 vided written informed consent to participation in 

11 the launch or reentry; and 

12 ‘‘(B) the holder of the license or permit and 

13 space flight participant have complied with all re14 quirements of the laws of the United States related 

15 to launching or reentering a space flight partici16 pant.’’. 

17 (14) Section 70105(d) of title 49, United States 

18 Code, as so redesignated by paragraph (7) of this sub19 section, is amended by inserting ‘‘or permit’’ after ‘‘of a 

20 license’’. 

21 (15) Section 70106(a) of title 49, United States 

22 Code, is amended—

23 (A) by inserting ‘‘at a site used for crew train24 ing,’’ after ‘‘assemble a launch vehicle or reentry ve25 hicle,’’; and 
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1 (B) by striking ‘‘section 70104(c)’’ and insert2 ing ‘‘sections 70104(c) and 70105(c)(4)’’. 

3 (16) Section 70110(a)(1) of title 49, United States 

4 Code, is amended by striking ‘‘70105(a)’’ and inserting 

5 ‘‘70105’’. 

6 (17) Section 70112(b)(1) of title 49, United States 

7 Code, is amended—

8 (A) by inserting ‘‘space flight participants,’’ 

9 after ‘‘its contractors, subcontractors,’’; 

10 (B) by inserting ‘‘or by space flight partici11 pants,’’ after ‘‘its own employees’’; and

12 (C) by adding at the end the following: ‘‘The 

13 requirement for space flight participants to make a 

14 reciprocal waiver of claims with the licensee or 

15 transferee shall expire 3 years after the first licensed 

16 launch of a launch vehicle carrying a space flight 

17 participant.’’. 

18 (18) Section 70112(b)(2) of title 49, United States 

19 Code, is amended—

20 (A) by inserting ‘‘crew, space flight partici21 pants,’’ after ‘‘transferee, contractors, subcontrac22 tors,’’; and 

23 (B) by inserting ‘‘or by space flight partici24 pants,’’ after ‘‘its own employees’’. 
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1 (19) Section 70113(a)(1) of title 49, United States 

2 Code, is amended by inserting ‘‘but not against a space 

3 flight participant,’’ after ‘‘subcontractor of a customer,’’. 

4 (20) Section 70113(f) of title 49, United States Code, 

5 is amended by striking ‘‘December 31, 2004.’’ and insert6 ing ‘‘December 31, 2007. This section does not apply to 

7 permits.’’. 

8 (21) Section 70115(b)(1)(D)(i) of title 49, United 

9 States Code, is amended by inserting ‘‘crew training site,’’ 

10 after ‘‘site of a launch vehicle or reentry vehicle,’’. 

11 (22) Section 70119 of title 49, United States Code, 

12 is amended by striking paragraphs (1) and (2) and insert13 ing the following: 

14 ‘‘(1) $11,776,000 for fiscal year 2005; 

15 ‘‘(2) $11,776,000 for fiscal year 2006; and 

16 ‘‘(3) $11,776,000 for fiscal year 2007.’’. 

17 (23) Section 70120 of title 49, United States Code, 

18 is amended by adding at the end the following new sub19 sections: 

20 ‘‘(c) AMENDMENTS.—Not later than 12 months after 

21 the date of enactment of the Commercial Space Launch 

22 Amendments Act of 2004, the Secretary shall publish pro23 posed regulations to carry out that Act, including regula24 tions relating to crew, space flight participants, and per25 mits for launch or reentry of reusable suborbital rockets. 
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1 Not later than 18 months after such date of enactment, 

2 the Secretary shall issue final regulations. 

3 ‘‘(d) EFFECTIVE DATE.—(1) Licenses for the launch 

4 or reentry of launch vehicles or reentry vehicles with 

5 human beings on board and permits may be issued by the 

6 Secretary prior to the issuance of the regulations de7 scribed in subsection (c). 

8 ‘‘(2) As soon as practicable after the date of enact9 ment of the Commercial Space Launch Amendments Act 

10 of 2004, the Secretary shall issue guidelines or advisory 

11 circulars to guide the implementation of that Act until 

12 regulations are issued. 

13 ‘‘(3) Notwithstanding paragraphs (1) and (2), no li14 censes for the launch or reentry of launch vehicles or re15 entry vehicles with human beings on board or permits may 

16 be issued starting three years after the date of enactment 

17 of the Commercial Space Launch Amendments Act of 

18 2004 unless the final regulations described in subsection 

19 (c) have been issued.’’. 

20 SEC. 4. STUDY ON THE GRADUAL ELIMINATION OF COM21 MERCIAL SPACE TRANSPORTATION LIABIL22 ITY RISK SHARING REGIME. 

23 Not later than 60 days after the date of enactment 

24 of this Act, the Secretary of Transportation shall enter 

25 into an appropriate arrangement with the National Acad-
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1 emy of Public Administration to conduct a study of how 

2 best to gradually eliminate the liability risk sharing regime 

3 in the United States for commercial space transportation 

4 under section 70113 of title 49, United States Code. The 

5 study shall assess methods by which the liability risk shar6 ing regime could be eliminated by 2008 or as soon as pos7 sible thereafter and the impact those methods would be 

8 likely to have on the commercial space transportation in9 dustry. The methods examined shall include incremental 

10 approaches. 

11 SEC. 5. TECHNICAL AMENDMENT. 

12 Section 102(c) of the Commercial Space Act of 1998 

13 is repealed.

Passed the House of Representatives March 4, 

2004. 

Attest: JEFF TRANDAHL, 

Clerk.