II

104TH CONGRESS

2D SESSION H. R. 3936

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 18, 1996

Received

AN ACT

To encourage the development of a commercial space

industry in the United States, and for other purposes.

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Space Commercialization Promotion Act of 1996’’.
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1 (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. Exceptions to employment restrictions.

Sec. 104. Launch voucher demonstration program.

Sec. 105. Promotion of United States Global Positioning System standards.

Sec. 106. Acquisition of space science data.

TITLE II—REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.

Sec. 202. Acquisition of earth remote sensing data.

TITLE III—FEDERAL ACQUISITION OF SPACE TRANSPORTATION

SERVICES

Sec. 301. Requirement to procure commercial space transportation services.

Sec. 302. Acquisition of space transportation services.

Sec. 303. Launch Services Purchase Act of 1990 amendments.

Sec. 304. Use of excess intercontinental ballistic missiles.

2 SEC. 2. DEFINITIONS.

3 For purposes of this Act—

4 (1) the term ‘‘Administrator’’ means the Ad5 ministrator of the National Aeronautics and Space

6 Administration;

7 (2) the term ‘‘commercial provider’’ means any

8 person providing space transportation services or

9 other space-related activities, primary control of

10 which is held by persons other than Federal, State,

11 local, and foreign governments;

12 (3) the term ‘‘payload’’ means anything that a

13 person undertakes to transport to, from, or within

14 outer space, or in suborbital trajectory, by means of

15 a space transportation vehicle, but does not include
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1 the space transportation vehicle itself except for its

2 components which are specifically designed or adapt3 ed for that payload;

4 (4) the term ‘‘space-related activities’’ includes

5 research and development, manufacturing, process6 ing, service, and other associated and support activi7 ties;

8 (5) the term ‘‘space transportation services’’

9 means the preparation of a space transportation ve10 hicle and its payloads for transportation to, from, or

11 within outer space, or in suborbital trajectory, and

12 the conduct of transporting a payload to, from, or

13 within outer space, or in suborbital trajectory;

14 (6) the term ‘‘space transportation vehicle’’

15 means any vehicle constructed for the purpose of op16 erating in, or transporting a payload to, from, or

17 within, outer space, or in suborbital trajectory, and

18 includes any component of such vehicle not specifi19 cally designed or adapted for a payload;

20 (7) the term ‘‘State’’ means each of the several

21 States of the Union, the District of Columbia, the

22 Commonwealth of Puerto Rico, the Virgin Islands,

23 Guam, American Samoa, the Commonwealth of the

24 Northern Mariana Islands, and any other common-
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1 wealth, territory, or possession of the United States;

2 and

3 (8) the term ‘‘United States commercial pro4 vider’’ means a commercial provider, organized

5 under the laws of the United States or of a State,

6 which is—

7 (A) more than 50 percent owned by United

8 States nationals; or

9 (B) a subsidiary of a foreign company and

10 the Secretary of Transportation finds that—

11 (i) such subsidiary has in the past evi12 denced a substantial commitment to the

13 United States market through—

14 (I) investments in the United

15 States in long-term research, develop16 ment, and manufacturing (including

17 the manufacture of major components

18 and subassemblies); and

19 (II) significant contributions to

20 employment in the United States; and

21 (ii) the country or countries in which

22 such foreign company is incorporated or

23 organized, and, if appropriate, in which it

24 principally conducts its business, affords

25 reciprocal treatment to companies de-
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1 scribed in subparagraph (A) comparable to

2 that afforded to such foreign company’s

3 subsidiary in the United States, as evi4 denced by—

5 (I) providing comparable oppor6 tunities for companies described in

7 subparagraph (A) to participate in

8 Government sponsored research and

9 development similar to that authorized

10 under this Act;

11 (II) providing no barriers to com12 panies described in subparagraph (A)

13 with respect to local investment op14 portunities that are not provided to

15 foreign companies in the United

16 States; and

17 (III) providing adequate and ef18 fective protection for the intellectual

19 property rights of companies de20 scribed in subparagraph (A).
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1 TITLE I—PROMOTION OF COM2 MERCIAL SPACE OPPORTUNI3 TIES

4 SEC. 101. COMMERCIALIZATION OF SPACE STATION.

5 (a) POLICY.—The Congress declares that a priority

6 goal of constructing the International Space Station is the

7 economic development of Earth orbital space. The Con8 gress further declares that free and competitive markets

9 create the most efficient conditions for promoting eco10 nomic development, and should therefore govern the eco11 nomic development of Earth orbital space. The Congress

12 further declares that free market principles should be used

13 in operating and adding capabilities to the Space Station

14 whenever possible.

15 (b) REPORT.—The Administrator shall deliver to the

16 Congress, within 60 days after the date of the enactment

17 of this Act, a market study that examines the role of com18 mercial ventures which could supply, use, service, or aug19 ment the International Space Station, the specific policies

20 and initiatives the Administrator is advancing to encour21 age these commercial opportunities, the cost savings to be

22 realized by the international partnership from applying

23 commercial approaches to cost-shared operations, and the

24 cost reimbursements to the United States Government

25 from commercial users of the Space Station.
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1 SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.

2 (a) AMENDMENTS.—Chapter 701 of title 49, United

3 States Code, is amended—

4 (1) in the table of sections—

5 (A) by amending the item relating to sec6 tion 70104 to read as follows:

‘‘70104. Restrictions on launches, operations, and reentries.’’;

7 (B) by amending the item relating to sec8 tion 70108 to read as follows:

‘‘70108. Prohibition, suspension, and end of launches, operation of launch sites

and reentry sites, and reentries.’’;

9 (C) by amending the item relating to sec10 tion 70109 to read as follows:

‘‘70109. Preemption of scheduled launches or reentries.’’;

11 and

12 (D) by adding at the end the following new

13 items:

‘‘70120. Regulations.

‘‘70121. Report to Congress.’’.

14 (2) in section 70101—

15 (A) by inserting ‘‘microgravity research,’’

16 after ‘‘information services,’’ in subsection

17 (a)(3);

18 (B) by inserting ‘‘, reentry,’’ after ‘‘launch19 ing’’ both places it appears in subsection (a)(4);

20 (C) by inserting ‘‘, reentry vehicles,’’ after

21 ‘‘launch vehicles’’ in subsection (a)(5);
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1 (D) by inserting ‘‘and reentry services’’

2 after ‘‘launch services’’ in subsection (a)(6);

3 (E) by inserting ‘‘, reentries,’’ after

4 ‘‘launches’’ both places it appears in subsection

5 (a)(7);

6 (F) by inserting ‘‘, reentry sites,’’ after

7 ‘‘launch sites’’ in subsection (a)(8);

8 (G) by inserting ‘‘and reentry services’’

9 after ‘‘launch services’’ in subsection (a)(8);

10 (H) by inserting ‘‘reentry sites,’’ after

11 ‘‘launch sites,’’ in subsection (a)(9);

12 (I) by inserting ‘‘and reentry site’’ after

13 ‘‘launch site’’ in subsection (a)(9);

14 (J) by inserting ‘‘, reentry vehicles,’’ after

15 ‘‘launch vehicles’’ in subsection (b)(2);

16 (K) by striking ‘‘launch’’ in subsection

17 (b)(2)(A);

18 (L) by inserting ‘‘and reentry’’ after ‘‘con19 duct of commercial launch’’ in subsection

20 (b)(3);

21 (M) by striking ‘‘launch’’ after ‘‘and trans22 fer commercial’’ in subsection (b)(3); and

23 (N) by inserting ‘‘and development of re24 entry sites,’’ after ‘‘launch-site support facili25 ties,’’ in subsection (b)(4);
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1 (3) in section 70102—

2 (A) by striking ‘‘and any payload’’ and in3 serting in lieu thereof ‘‘or reentry vehicle and

4 any payload from Earth’’ in paragraph (3);

5 (B) in paragraph (5)—

6 (i) by redesignating subparagraphs

7 (A) and (B) as subparagraphs (B) and

8 (C), respectively; and

9 (ii) by inserting before subparagraph

10 (B), as so redesignated by clause (i) of this

11 subparagraph, the following new subpara12 graph:

13 ‘‘(A) activities directly related to the prep14 aration of a launch site or payload facility for

15 one or more launches;’’;

16 (C) by inserting ‘‘or reentry vehicle’’ after

17 ‘‘means of a launch vehicle’’ in paragraph (8);

18 (D) by redesignating paragraphs (10)

19 through (12) as paragraphs (14) through (16),

20 respectively;

21 (E) by inserting after paragraph (9) the

22 following new paragraphs:

23 ‘‘(10) ‘reenter’ and ‘reentry’ mean to return or

24 attempt to return, purposefully, a reentry vehicle
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1 and its payload, if any, from Earth orbit or from

2 outer space to Earth.

3 ‘‘(11) ‘reentry services’ means—

4 ‘‘(A) activities involved in the preparation

5 of a reentry vehicle and its payload, if any, for

6 reentry; and

7 ‘‘(B) the conduct of a reentry.

8 ‘‘(12) ‘reentry site’ means the location on Earth

9 to which a reentry vehicle is intended to return (as

10 defined in a license the Secretary issues or transfers

11 under this chapter).

12 ‘‘(13) ‘reentry vehicle’ means a vehicle designed

13 to return from Earth orbit or outer space to Earth,

14 or a reusable launch vehicle designed to return from

15 outer space to Earth, substantially intact.’’; and

16 (F) by inserting ‘‘or reentry services’’ after

17 ‘‘launch services’’ each place it appears in para18 graph (15), as so redesignated by subparagraph

19 (D) of this paragraph;

20 (4) in section 70103—

21 (A) by striking ‘‘The Secretary’’ in sub22 section (a) and inserting in lieu thereof ‘‘Except

23 as provided in section 70122, the Secretary’’;

24 and

25 (B) in subsection (b)—
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1 (i) by inserting ‘‘AND REENTRIES AND

2 STATE SPONSORED SPACEPORTS’’ after

3 ‘‘LAUNCHES’’ in the subsection heading;

4 (ii) by striking ‘‘by the private sector’’

5 in paragraph (1) and inserting in lieu

6 thereof ‘‘and reentries by the private sector

7 and State sponsored spaceports’’ after

8 ‘‘space launches’’; and

9 (iii) by inserting ‘‘and reentry’’ after

10 ‘‘space launch’’ in paragraph (2);

11 (5) in section 70104—

12 (A) by amending the section designation

13 and heading to read as follows:

14 ‘‘§ 70104. Restrictions on launches, operations, and

15 reentries’’;

16 (B) by inserting ‘‘or reentry site, or to re17 enter a reentry vehicle,’’ after ‘‘operate a

18 launch site’’ each place it appears in subsection

19 (a);

20 (C) by inserting ‘‘or reentry’’ after ‘‘launch

21 or operation’’ in subsection (a)(3) and (4);

22 (D) in subsection (b)—

23 (i) by striking ‘‘launch license’’ and

24 inserting in lieu thereof ‘‘license’’;
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1 (ii) by inserting ‘‘or reenter’’ after

2 ‘‘may launch’’; and

3 (iii) by inserting ‘‘or reentering’’ after

4 ‘‘related to launching’’; and

5 (E) in subsection (c)—

6 (i) by amending the subsection head7 ing to read as follows: ‘‘PREVENTING

8 LAUNCHES AND REENTRIES.—’’;

9 (ii) by inserting ‘‘or reentry’’ after

10 ‘‘prevent the launch’’; and

11 (iii) by inserting ‘‘or reentry’’ after

12 ‘‘decides the launch’’;

13 (6) in section 70105—

14 (A) by inserting ‘‘(1)’’ before ‘‘A person

15 may apply’’ in subsection (a);

16 (B) by striking ‘‘receiving an application’’

17 both places it appears in subsection (a) and in18 serting in lieu thereof ‘‘accepting an application

19 in accordance with criteria established pursuant

20 to subsection (b)(2)(D)’’;

21 (C) by inserting at the end of subsection

22 (a) the following: ‘‘The Secretary shall submit

23 to the Committee on Science of the House of

24 Representatives and the Committee on Com25 merce, Science, and Transportation of the Sen-
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1 ate a written notice not later than 7 days after

2 any occurrence when a license is not issued

3 within the deadline established by this sub4 section.’’;

5 (D) by adding at the end of subsection (a)

6 the following new paragraph:

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

8 may establish procedures for certification of the safety of

9 launch vehicles, reentry vehicles, safety systems, proce10 dures, services, or personnel that may be used in conduct11 ing licensed commercial space launch or reentry activi12 ties.’’;

13 (E) by inserting ‘‘or a reentry site, or the

14 reentry of a reentry vehicle,’’ after ‘‘operation

15 of a launch site’’ in subsection (b)(1);

16 (F) by striking ‘‘or operation’’ and insert17 ing in lieu thereof ‘‘, operation, or reentry’’ in

18 subsection (b)(2)(A);

19 (G) by striking ‘‘and’’ at the end of sub20 section (b)(2)(B);

21 (H) by striking the period at the end of

22 subsection (b)(2)(C) and inserting in lieu there23 of ‘‘; and’’;

24 (I) by adding at the end of subsection

25 (b)(2) the following new subparagraph:
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1 ‘‘(D) regulations establishing criteria for ac2 cepting or rejecting an application for a license

3 under this chapter within 60 days after receipt of

4 such application.’’; and

5 (J) by inserting ‘‘, including the require6 ment to obtain a license,’’ after ‘‘waive a re7 quirement’’ in subsection (b)(3);

8 (7) in section 70106(a)—

9 (A) by inserting ‘‘or reentry site’’ after

10 ‘‘observer at a launch site’’;

11 (B) by inserting ‘‘or reentry vehicle’’ after

12 ‘‘assemble a launch vehicle’’; and

13 (C) by inserting ‘‘or reentry vehicle’’ after

14 ‘‘with a launch vehicle’’;

15 (8) in section 70108—

16 (A) by amending the section designation

17 and heading to read as follows:

18 ‘‘§ 70108. Prohibition, suspension, and end of

19 launches, operation of launch sites and

20 reentry sites, and reentries’’;

21 and

22 (B) in subsection (a)—

23 (i) by inserting ‘‘or reentry site, or re24 entry of a reentry vehicle,’’ after ‘‘oper25 ation of a launch site’’; and
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1 (ii) by inserting ‘‘or reentry’’ after

2 ‘‘launch or operation’’;

3 (9) in section 70109—

4 (A) by amending the section designation

5 and heading to read as follows:

6 ‘‘§ 70109. Preemption of scheduled launches or reen7 tries’’;

8 (B) in subsection (a)—

9 (i) by inserting ‘‘or reentry’’ after

10 ‘‘ensure that a launch’’;

11 (ii) by inserting ‘‘, reentry site,’’ after

12 ‘‘United States Government launch site’’;

13 (iii) by inserting ‘‘or reentry date

14 commitment’’ after ‘‘launch date commit15 ment’’;

16 (iv) by inserting ‘‘or reentry’’ after

17 ‘‘obtained for a launch’’;

18 (v) by inserting ‘‘, reentry site,’’ after

19 ‘‘access to a launch site’’;

20 (vi) by inserting ‘‘, or services related

21 to a reentry,’’ after ‘‘amount for launch

22 services’’; and

23 (vii) by inserting ‘‘or reentry’’ after

24 ‘‘the scheduled launch’’; and
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1 (C) in subsection (c), by inserting ‘‘or re2 entry’’ after ‘‘prompt launching’’;

3 (10) in section 70110—

4 (A) by inserting ‘‘or reentry’’ after ‘‘pre5 vent the launch’’ in subsection (a)(2); and

6 (B) by inserting ‘‘or reentry site, or re7 entry of a reentry vehicle,’’ after ‘‘operation of

8 a launch site’’ in subsection (a)(3)(B);

9 (11) in section 70111—

10 (A) by inserting ‘‘or reentry’’ after

11 ‘‘launch’’ in subsection (a)(1)(A);

12 (B) by inserting ‘‘and reentry services’’

13 after ‘‘launch services’’ in subsection (a)(1)(B);

14 (C) in subsection (a)(1), by inserting after

15 subparagraph (B) the following:

16 ‘‘The Secretary shall coordinate the establishment of cri17 teria and procedures for determining the priority of com18 peting requests from the private sector and State govern19 ments for property and services under this section.’’;

20 (D) by inserting ‘‘or reentry services’’ after

21 ‘‘or launch services’’ in subsection (a)(2);

22 (E) by inserting ‘‘or reentry’’ after ‘‘com23 mercial launch’’ both places it appears in sub24 section (b)(1);
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1 (F) by inserting ‘‘or reentry services’’ after

2 ‘‘launch services’’ in subsection (b)(2)(C);

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

4 following new paragraph:

5 ‘‘(3) The Secretary shall ensure the establishment of

6 uniform guidelines for, and consistent implementation of,

7 this section by all Federal agencies.’’;

8 (H) by striking ‘‘or its payload for launch’’

9 in subsection (d) and inserting in lieu thereof

10 ‘‘or reentry vehicle, or the payload of either, for

11 launch or reentry’’; and

12 (I) by inserting ‘‘, reentry vehicle,’’ after

13 ‘‘manufacturer of the launch vehicle’’ in sub14 section (d);

15 (12) in section 70112—

16 (A) in subsection (a)(1), by inserting

17 ‘‘launch, reentry, or site operator’’ after ‘‘(1)

18 When a’’;

19 (B) by inserting ‘‘or reentry’’ after ‘‘one

20 launch’’ in subsection (a)(3);

21 (C) by inserting ‘‘or reentry services’’ after

22 ‘‘launch services’’ in subsection (a)(4);

23 (D) in subsection (b)(1), by inserting

24 ‘‘launch, reentry, or site operator’’ after ‘‘(1)

25 A’’;
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1 (E) by inserting ‘‘or reentry services’’ after

2 ‘‘launch services’’ each place it appears in sub3 section (b);

4 (F) by inserting ‘‘applicable’’ after ‘‘car5 ried out under the’’ in paragraphs (1) and (2)

6 of subsection (b);

7 (G) by striking ‘‘, Space, and Technology’’

8 in subsection (d)(1);

9 (H) by inserting ‘‘OR REENTRIES’’ after

10 ‘‘LAUNCHES’’ in the heading for subsection (e);

11 (I) by inserting ‘‘or reentry site or a re12 entry’’ after ‘‘launch site’’ in subsection (e);

13 and

14 (J) in subsection (f), by inserting ‘‘launch,

15 reentry, or site operator’’ after ‘‘carried out

16 under a’’;

17 (13) in section 70113(a)(1) and (d)(1) and (2),

18 by inserting ‘‘or reentry’’ after ‘‘one launch’’ each

19 place it appears;

20 (14) in section 70115(b)(1)(D)(i)—

21 (A) by inserting ‘‘reentry site,’’ after

22 ‘‘launch site,’’; and

23 (B) by inserting ‘‘or reentry vehicle’’ after

24 ‘‘launch vehicle’’ both places it appears;

25 (15) in section 70117—
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1 (A) by inserting ‘‘or reentry site, or to re2 enter a reentry vehicle’’ after ‘‘operate a launch

3 site’’ in subsection (a);

4 (B) by inserting ‘‘or reentry’’ after ‘‘ap5 proval of a space launch’’ in subsection (d);

6 (C) by amending subsection (f) to read as

7 follows:

8 ‘‘(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN

9 IMPORT.—A launch vehicle, reentry vehicle, or payload

10 that is launched or reentered is not, because of the launch

11 or reentry, an export or import, respectively, for purposes

12 of a law controlling exports or imports.’’; and

13 (D) in subsection (g)—

14 (i) by striking ‘‘operation of a launch

15 vehicle or launch site,’’ in paragraph (1)

16 and inserting in lieu thereof ‘‘reentry, op17 eration of a launch vehicle or reentry vehi18 cle, operation of a launch site or reentry

19 site,’’; and

20 (ii) by inserting ‘‘reentry,’’ after

21 ‘‘launch,’’ in paragraph (2); and

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

23 sections:
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1 ‘‘§ 70120. Regulations

2 ‘‘The Secretary of Transportation, within 6 months

3 after the date of the enactment of this section, shall issue

4 regulations to carry out this chapter that include—

5 ‘‘(1) guidelines for industry to obtain sufficient

6 insurance coverage for potential damages to third

7 parties;

8 ‘‘(2) procedures for requesting and obtaining li9 censes to operate a commercial launch vehicle or re10 entry vehicle;

11 ‘‘(3) procedures for requesting and obtaining

12 operator licenses for launch or reentry;

13 ‘‘(4) procedures for requesting and obtaining

14 launch site or reentry site operator licenses; and

15 ‘‘(5) procedures for the application of govern16 ment indemnification.

17 ‘‘§ 70121. Report to Congress

18 ‘‘The Secretary of Transportation shall submit to

19 Congress an annual report to accompany the President’s

20 budget request that—

21 ‘‘(1) describes all activities undertaken under

22 this chapter, including a description of the process

23 for the application for and approval of licenses under

24 this chapter and recommendations for legislation

25 that may further commercial launches and reentries;

26 and
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1 ‘‘(2) reviews the performance of the regulatory

2 activities and the effectiveness of the Office of Com3 mercial Space Transportation.’’.

4 (b) EFFECTIVE DATE.—The amendments made by

5 subsection (a)(6)(B) shall take effect upon the effective

6 date of final regulations issued pursuant to section

7 70105(b)(2)(D) of title 49, United States Code, as added

8 by subsection (a)(6)(I).

9 SEC. 103. EXCEPTIONS TO EMPLOYMENT RESTRICTIONS.

10 (a) INAPPLICABILITY OF CERTAIN POST-EMPLOY11 MENT RESTRICTIONS.—Subsections (a) and (c) of section

12 207 of title 18, United States Code, and section 27(d) of

13 the Office of Federal Procurement Policy Act (41 U.S.C.

14 423(d)) shall not apply to employees or former employees

15 of the National Aeronautics and Space Administration

16 seeking employment with an entity that is awarded the

17 Space Flight Operations Contract for the Space Shuttle.

18 (b) EXCEPTION.—Subsection (a) shall not apply to

19 an employee or former employee who, while employed with

20 the National Aeronautics and Space Administration—

21 (1) served, at the time of selection of the con22 tractor for the contract referred to in subsection (a)

23 or the award of such contract, as the procuring con24 tracting officer, the source selection authority, a
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1 member of the source selection evaluation board, or

2 the chief of a financial or technical evaluation team;

3 (2) served as the program manager, deputy pro4 gram manager, or administrative contracting officer

5 for the contract; or

6 (3) personally made for the National Aero7 nautics and Space Administration a decision to

8 award the contract or a modification of the contract.

9 SEC. 104. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

10 Section 504 of the National Aeronautics and Space

11 Administration Authorization Act, Fiscal Year 1993 (15

12 U.S.C. 5803) is amended—

13 (1) in subsection (a)—

14 (A) by striking ‘‘the Office of Commercial

15 Programs within’’; and

16 (B) by striking ‘‘Such program shall not

17 be effective after September 30, 1995.’’;

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

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

20 subsections (c) and (d), respectively.

21 SEC. 105. PROMOTION OF UNITED STATES GLOBAL POSI22 TIONING SYSTEM STANDARDS.

23 (a) FINDING.—The Congress finds that the Global

24 Positioning System, including satellites, signal equipment,

25 ground stations, data links, and associated command and
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1 control facilities, has become an essential element in civil,

2 scientific, and military space development because of the

3 emergence of a United States commercial industry which

4 provides Global Positioning System equipment and related

5 services.

6 (b) INTERNATIONAL COOPERATION.—The Congress

7 therefore encourages the President to—

8 (1) undertake a coordinated effort within the

9 executive branch to promote cooperation with foreign

10 governments and international organizations to ad11 vance United States interests with respect to the

12 Global Positioning System standards and augmenta13 tions; and

14 (2) ensure the operation of the Global Position15 ing System on a continuous worldwide basis free of

16 direct user fees.

17 SEC. 106. ACQUISITION OF SPACE SCIENCE DATA.

18 (a) ACQUISITION FROM PRIVATE SECTOR.—The Ad19 ministrator shall, to the maximum extent possible and

20 while fully satisfying the scientific requirements of the Na21 tional Aeronautics and Space Administration, acquire,

22 where cost effective, space science data from the private

23 sector.

24 (b) TREATMENT OF SPACE SCIENCE DATA AS COM25 MERCIAL ITEM UNDER ACQUISITION LAWS.—Acquisitions
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1 of space science data by the Administrator shall be carried

2 out in accordance with applicable acquisition laws and reg3 ulations (including chapters 137 and 140 of title 10, Unit4 ed States Code), except that space science data shall be

5 considered to be a commercial item for purposes of such

6 laws and regulations (including section 2306a of title 10,

7 United States Code (relating to cost or pricing data), sec8 tion 2320 of such title (relating to rights in technical data)

9 and section 2321 of such title (relating to validation of

10 proprietary data restrictions)).

11 (c) DEFINITION.—For purposes of this section, the

12 term ‘‘space science data’’ includes scientific data concern13 ing the elemental and mineralogical resources of the moon

14 and the planets, Earth environmental data obtained

15 through remote sensing observations, and solar storm

16 monitoring.

17 (d) SAFETY STANDARDS.—Nothing in this section

18 shall be construed to prohibit the Federal Government

19 from requiring compliance with applicable safety stand20 ards.

21 (e) LIMITATION.—This section does not authorize the

22 National Aeronautics and Space Administration to provide

23 financial assistance for the development of commercial

24 systems for the collection of space science data.
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1 TITLE II—REMOTE SENSING

2 SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992

3 AMENDMENTS.

4 The Land Remote Sensing Policy Act of 1992 is

5 amended—

6 (1) in section 2 (15 U.S.C. 5601)—

7 (A) by amending paragraph (5) to read as

8 follows:

9 ‘‘(5) Commercialization of land remote sensing

10 is a near-term goal, and should remain a long-term

11 goal, of United States policy.’’;

12 (B) by striking paragraph (6) and redesig13 nating paragraphs (7) through (16) as para14 graphs (6) through (15), respectively; and

15 (C) in paragraph (11), as so redesignated

16 by subparagraph (B) of this paragraph, by

17 striking ‘‘determining the design’’ and all that

18 follows through ‘‘international consortium’’ and

19 inserting in lieu thereof ‘‘ensuring the continu20 ity of Landsat quality data’’;

21 (2) in section 101 (15 U.S.C. 5611)—

22 (A) by inserting the following after sub23 section (b)(4):

24 ‘‘The Director of the Office of Science and Technology

25 Policy shall, no later than 60 days after the date of the
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1 enactment of the Space Commercialization Promotion Act

2 of 1996, transmit the management plan to the Committee

3 on Science of the House of Representatives and the Com4 mittee on Commerce, Science, and Transportation of the

5 Senate.’’;

6 (B) in subsection (c)—

7 (i) by inserting ‘‘and’’ at the end of

8 paragraph (6);

9 (ii) by striking paragraph (7); and

10 (iii) by redesignating paragraph (8) as

11 paragraph (7); and

12 (C) in subsection (e)(1)—

13 (i) by inserting ‘‘and’’ at the end of

14 subparagraph (A);

15 (ii) by striking ‘‘, and’’ at the end of

16 subparagraph (B) and inserting in lieu

17 thereof a period; and

18 (iii) by striking subparagraph (C);

19 (3) in section 201 (15 U.S.C. 5621)—

20 (A) by inserting ‘‘(1)’’ after ‘‘NATIONAL

21 SECURITY.—’’ in subsection (b);

22 (B) in subsection (b)(1), as so designated

23 by subparagraph (A) of this paragraph, by

24 striking ‘‘No license’’ and inserting in lieu
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1 thereof ‘‘Except as provided in paragraph (3),

2 no license’’;

3 (C) by adding at the end of subsection (b)

4 the following new paragraphs:

5 ‘‘(2) The Secretary, within 6 months after the date

6 of the enactment of the Space Commercialization Pro7 motion Act of 1996, shall publish in the Federal Register

8 a complete and specific list of all information required to

9 comprise a complete application for a license under this

10 title. An application shall be considered complete when the

11 applicant has provided all information required by the list

12 most recently published in the Federal Register before the

13 date the application was first submitted. Unless the Sec14 retary has, within 30 days after receipt of an application,

15 notified the applicant of information necessary to complete

16 an application, the Secretary may not deny the application

17 on the basis of the absence of any such information.

18 ‘‘(3) The Secretary shall grant a license under this

19 title to any United States commercial provider (as such

20 term is defined in section 2 of the Space Commercializa21 tion Promotion Act of 1996) whose application is in full

22 compliance with the requirements of this title.’’;

23 (D) in subsection (c), by amending the sec24 ond sentence thereof to read as follows: ‘‘If the

25 Secretary has not granted the license within
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1 such 120-day period, the Secretary shall inform

2 the applicant, within such period, of any pend3 ing issues and actions required to be carried

4 out by the applicant or the Secretary in order

5 to result in the granting of a license.’’; and

6 (E) in subsection (e)(2)(B), by striking

7 ‘‘and the importance of promoting widespread

8 access to remote sensing data from United

9 States and foreign systems’’;

10 (4) in section 202 (15 U.S.C. 5622)—

11 (A) by striking ‘‘section 506’’ in subsection

12 (b)(1) and inserting in lieu thereof ‘‘section

13 507’’;

14 (B) in subsection (b)(2), by striking ‘‘as

15 soon as such data are available and on reason16 able terms and conditions’’ and inserting in lieu

17 thereof ‘‘on reasonable terms and conditions,

18 including the provision of such data in a timely

19 manner’’;

20 (C) in subsection (b)(6), by striking ‘‘any

21 agreement’’ and inserting in lieu thereof ‘‘any

22 significant or substantial agreement relating to

23 land remote sensing’’; and

24 (D) by inserting after paragraph (6) of

25 subsection (b) the following:
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1 ‘‘The Secretary may not terminate, modify, or suspend a

2 license issued pursuant to this title on the basis of an

3 agreement the Secretary receives notification of under

4 paragraph (6) unless the Secretary has, within 30 days

5 after receipt of such notification, transmitted to the li6 censee a statement that such agreement is inconsistent

7 with the national security or international obligations of

8 the United States, including an explanation of such incon9 sistency.’’;

10 (5) in section 203 (15 U.S.C. 5623)—

11 (A) in subsection (a)(2), by striking

12 ‘‘under this title and’’ and inserting in lieu

13 thereof ‘‘under this title or’’;

14 (B) in subsection (a)(3), by striking ‘‘pro15 vide penalties’’ and inserting in lieu thereof

16 ‘‘seek, in a United States District Court with

17 personal jurisdiction over the licensee, pen18 alties’’; and

19 (C) in subsection (b), by striking ‘‘(a)(3),’’;

20 (6) in section 204 (15 U.S.C. 5624), by striking

21 ‘‘may’’ and inserting in lieu thereof ‘‘shall’’;

22 (7) in section 205(c) (15 U.S.C. 5625(c)), by

23 striking ‘‘if such remote sensing space system is li24 censed by the Secretary before commencing oper25 ation’’ and inserting in lieu thereof ‘‘if such private
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1 remote sensing space system will be licensed by the

2 Secretary before commencing its commercial oper3 ation’’;

4 (8) by adding at the end of title II the following

5 new section:

6 ‘‘SEC. 206. NOTIFICATION.

7 ‘‘(a) LIMITATIONS ON LICENSEE.—Not later than 30

8 days after a determination by the Secretary to require a

9 licensee to limit collection or distribution of data from a

10 system licensed under this title, the Secretary shall provide

11 written notification to Congress of such determination, in12 cluding the reasons therefor, the limitations imposed on

13 the licensee, and the period during which such limitations

14 apply.

15 ‘‘(b) TERMINATION, MODIFICATION, OR SUSPEN16 SION.—Not later than 30 days after an action by the Sec17 retary to seek an order of injunction or other judicial de18 termination pursuant to section 203(a)(2), the Secretary

19 shall provide written notification to Congress of such ac20 tion and the reasons therefor.’’;

21 (9) in section 301 (15 U.S.C. 5631)—

22 (A) by inserting ‘‘, that are not being com23 mercially developed’’ after ‘‘and its environ24 ment’’ in subsection (a)(2)(B); and
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HR 3936 RDS

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

2 subsection:

3 ‘‘(d) DUPLICATION OF COMMERCIAL SECTOR ACTIVI4 TIES.—The Federal Government shall not undertake ac5 tivities under this section which duplicate activities avail6 able from the commercial sector, unless such activities

7 would result in significant cost savings to the Federal Gov8 ernment.’’;

9 (10) in section 302 (15 U.S.C. 5632)—

10 (A) by striking ‘‘(a) GENERAL RULE.—’’;

11 (B) by striking ‘‘, including unenhanced

12 data gathered under the technology demonstra13 tion program carried out pursuant to section

14 303,’’ and inserting in lieu thereof ‘‘that is not

15 otherwise available from the commercial sec16 tor’’; and

17 (C) by striking subsection (b);

18 (11) by repealing section 303 (15 U.S.C. 5633);

19 (12) in section 401(b)(3) (15 U.S.C.

20 5641(b)(3)), by striking ‘‘, including any such en21 hancements developed under the technology dem22 onstration program under section 303,’’;

23 (13) in section 501(a) (15 U.S.C. 5651(a)), by

24 striking ‘‘section 506’’ and inserting in lieu thereof

25 ‘‘section 507’’;
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1 (14) in section 502(c)(7) (15 U.S.C.

2 5652(c)(7)), by striking ‘‘section 506’’ and inserting

3 in lieu thereof ‘‘section 507’’;

4 (15) in section 506 (15 U.S.C. 5656)—

5 (A) by inserting ‘‘(1)’’ after ‘‘COMMUNICA6 TIONS COMMISSION.—’’ in subsection (a);

7 (B) by inserting at the end of subsection

8 (a) the following new paragraph:

9 ‘‘(2) The Federal Communications Commission, with10 in 6 months after the date of the enactment of the Space

11 Commercialization Promotion Act of 1996, shall publish

12 in the Federal Register a complete and specific list of all

13 information required to comprise a complete application

14 described in paragraph (1). An application shall be consid15 ered complete when the applicant has provided all infor16 mation required by the list most recently published in the

17 Federal Register before the date the application was first

18 submitted. Unless the Federal Communications Commis19 sion has, within 30 days after receipt of an application,

20 notified the applicant of information necessary to complete

21 an application, the Federal Communications Commission

22 may not deny the application on the basis of the absence

23 of any such information.’’; and

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

25 subsection:
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HR 3936 RDS

1 ‘‘(e) FEES.—The Federal Communications Commis2 sion shall ensure that any licensing or other fees that a

3 private remote sensing space system operator subject to

4 the licensing requirements of title II is required to pay

5 such Commission shall be proportional to the cost to the

6 Commission of the radio licensing process for such person

7 relative to the cost to the Commission of licensing other

8 entities subject to the fee.’’; and

9 (16) in section 507 (15 U.S.C. 5657)—

10 (A) by amending subsection (a) to read as

11 follows:

12 ‘‘(a) RESPONSIBILITY OF THE SECRETARY OF DE13 FENSE.—The Secretary shall consult with the Secretary

14 of Defense on all matters under this Act affecting national

15 security. The Secretary of Defense shall be responsible for

16 determining those conditions, consistent with this Act,

17 necessary to meet national security concerns of the United

18 States, and for notifying the Secretary promptly of such

19 conditions. Not later than 60 days after receiving a re20 quest from the Secretary, the Secretary of Defense shall

21 recommend to the Secretary any conditions for a license

22 issued under title II, consistent with this Act, that the Sec23 retary of Defense determines are needed to protect the na24 tional security of the United States. If no such rec25 ommendation has been received by the Secretary within
34

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1 such 60-day period, the Secretary shall deem activities

2 proposed in the license application to be consistent with

3 the protection of the national security of the United

4 States.’’;

5 (B) by striking subsection (b)(1) and (2)

6 and inserting in lieu thereof the following:

7 ‘‘(b) RESPONSIBILITY OF THE SECRETARY OF

8 STATE.—(1) The Secretary shall consult with the Sec9 retary of State on all matters under this Act affecting

10 international obligations of the United States. The Sec11 retary of State shall be responsible for determining those

12 conditions, consistent with this Act, necessary to meet

13 international obligations of the United States and for noti14 fying the Secretary promptly of such conditions. Not later

15 than 60 days after receiving a request from the Secretary,

16 the Secretary of State shall recommend to the Secretary

17 any conditions for a license issued under title II, consist18 ent with this Act, that the Secretary of State determines

19 are needed to meet international obligations of the United

20 States. If no such recommendation has been received by

21 the Secretary within such 60-day period, the Secretary

22 shall deem activities proposed in the license application to

23 be consistent with the international obligations and poli24 cies of the United States.
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1 ‘‘(2) Appropriate United States Government agencies

2 are authorized and encouraged to provide to developing

3 nations, as a component of international aid, resources for

4 purchasing remote sensing data, training, and analysis

5 from United States commercial providers.’’; and

6 (C) in subsection (d), by striking ‘‘Sec7 retary may require’’ and inserting in lieu there8 of ‘‘Secretary shall, where appropriate, re9 quire’’.

10 SEC. 202. ACQUISITION OF EARTH REMOTE SENSING DATA.

11 (a) ACQUISITION FROM PRIVATE SECTOR.— For pur12 poses of meeting Government goals for Mission to Planet

13 Earth, the Administrator shall, to the maximum extent

14 possible and while fully satisfying the scientific require15 ments of the National Aeronautics and Space Administra16 tion, acquire, where cost effective, space-based and air17 borne Earth remote sensing data, services, distribution,

18 and applications from the private sector.

19 (b) TREATMENT AS COMMERCIAL ITEM UNDER AC20 QUISITION LAWS.—Acquisitions by the Administrator of

21 the data, services, distribution, and applications referred

22 to in subsection (a) shall be carried out in accordance with

23 applicable acquisition laws and regulations (including

24 chapters 137 and 140 of title 10, United States Code),

25 except that such data, services, distribution, and applica-
36

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1 tions shall be considered to be a commercial item for pur2 poses of such laws and regulations (including section

3 2306a of title 10, United States Code (relating to cost

4 or pricing data), section 2320 of such title (relating to

5 rights in technical data) and section 2321 of such title

6 (relating to validation of proprietary data restrictions)).

7 (c) STUDY.—(1) The Administrator shall conduct a

8 study to determine the extent to which the baseline sci9 entific requirements of Mission to Planet Earth can be

10 met by the private sector, and how the National Aero11 nautics and Space Administration will meet such require12 ments which cannot be met by the private sector.

13 (2) The study conducted under this subsection

14 shall—

15 (A) make recommendations to promote the

16 availability of information from the National Aero17 nautics and Space Administration to the private sec18 tor to enable the private sector to better meet the

19 baseline scientific requirements of Mission to Planet

20 Earth;

21 (B) make recommendations to promote the dis22 semination to the private sector of information on

23 advanced technology research and development per24 formed by or for the National Aeronautics and

25 Space Administration; and
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1 (C) identify policy, regulatory, and legislative

2 barriers to the implementation of the recommenda3 tions made under this subsection.

4 (3) For purposes of carrying out this subsection, de5 termination of the baseline scientific requirements of Mis6 sion to Planet Earth shall be carried out by the Goddard

7 Space Flight Center. The Commercial Remote Sensing

8 Program at the Stennis Space Center shall be responsible

9 for identifying private sector data, services, distributions,

10 and applications that can meet the scientific requirements

11 of Mission to Planet Earth. The Administrator shall be

12 responsible for determining the extent to which the base13 line scientific requirements of Mission to Planet Earth can

14 be met by the private sector, and shall ensure that the

15 Stennis Space Center plays a major coordinating role.

16 (4) The results of the study conducted under this

17 subsection shall be transmitted to the Congress within 9

18 months after the date of the enactment of this Act.

19 (d) SAFETY STANDARDS.—Nothing in this section

20 shall be construed to prohibit the Federal Government

21 from requiring compliance with applicable safety stand22 ards.
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1 TITLE III—FEDERAL ACQUISI2 TION OF SPACE TRANSPOR3 TATION SERVICES

4 SEC. 301. REQUIREMENT TO PROCURE COMMERCIAL

5 SPACE TRANSPORTATION SERVICES.

6 (a) IN GENERAL.—Except as otherwise provided in

7 this section, the Federal Government shall acquire space

8 transportation services from the private sector whenever

9 such services are required in the course of its activities.

10 To the maximum extent practicable, the Federal Govern11 ment shall plan missions to accommodate the space trans12 portation services capabilities of United States commercial

13 providers.

14 (b) EXCEPTIONS.—The Federal Government shall

15 not be required to acquire space transportation services

16 under subsection (a) if, on a case-by-case basis, the Ad17 ministrator or, in the case of a national security issue,

18 the Secretary of the Air Force, determines that—

19 (1) a payload requires the unique capabilities of

20 the space shuttle;

21 (2) cost effective space transportation services

22 that meet specific mission requirements would not be

23 reasonably available from United States commercial

24 providers when required;
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1 (3) the use of space transportation services

2 from United States commercial providers poses an

3 unacceptable risk of loss of a unique scientific oppor4 tunity;

5 (4) the use of space transportation services

6 from United States commercial providers is incon7 sistent with national security objectives;

8 (5) the use of space transportation services

9 from United States commercial providers poses an

10 unacceptable risk to foreign policy objectives;

11 (6) it is more cost effective to transport a pay12 load in conjunction with a test or demonstration of

13 a space transportation vehicle owned by the Federal

14 Government; or

15 (7) a payload can make use of the available

16 cargo space on a Space Shuttle mission as a second17 ary payload, and such payload is consistent with the

18 requirements of research, development, demonstra19 tion, scientific, commercial, and educational pro20 grams authorized by the Administrator.

21 (c) DELAYED EFFECT.—Subsection (a) shall not

22 apply to space transportation services and space transpor23 tation vehicles acquired or owned by the Federal Govern24 ment before the date of the enactment of this Act, or with
40

HR 3936 RDS

1 respect to which a contract for such acquisition or owner2 ship has been entered into before such date.

3 (d) HISTORICAL PURPOSES.—This section shall not

4 be construed to prohibit the Federal Government from ac5 quiring, owning, or maintaining space transportation vehi6 cles solely for historical display purposes.

7 SEC. 302. ACQUISITION OF SPACE TRANSPORTATION SERV8 ICES.

9 (a) TREATMENT OF SPACE TRANSPORTATION SERV10 ICES AS COMMERCIAL ITEM UNDER ACQUISITION

11 LAWS.—Acquisitions of space transportation services by

12 the Federal Government shall be carried out in accordance

13 with applicable acquisition laws and regulations (including

14 chapters 137 and 140 of title 10, United States Code),

15 except that space transportation services shall be consid16 ered to be a commercial item for purposes of such laws

17 and regulations (including section 2306a of title 10, Unit18 ed States Code (relating to cost or pricing data), section

19 2320 of such title (relating to rights in technical data)

20 and section 2321 of such title (relating to validation of

21 proprietary data restrictions)).

22 (b) SAFETY STANDARDS.—Nothing in this section

23 shall be construed to prohibit the Federal Government

24 from requiring compliance with applicable safety stand25 ards.
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1 SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990

2 AMENDMENTS.

3 The Launch Services Purchase Act of 1990 (42

4 U.S.C. 2465b et seq.) is amended—

5 (1) by striking section 202;

6 (2) in section 203—

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

8 and

9 (B) by redesignating paragraphs (3) and

10 (4) as paragraphs (1) and (2), respectively;

11 (3) by striking sections 204 and 205; and

12 (4) in section 206—

13 (A) by striking ‘‘(a) COMMERCIAL PAY14 LOADS ON THE SPACE SHUTTLE.—’’; and

15 (B) by striking subsection (b).

16 SEC. 304. USE OF EXCESS INTERCONTINENTAL BALLISTIC

17 MISSILES.

18 (a) IN GENERAL.—The Federal Government shall

19 not—

20 (1) convert any missile described in subsection

21 (c) to a space transportation vehicle configuration or

22 otherwise use any such missile to place a payload in

23 space; or

24 (2) transfer ownership of any such missile to

25 another person,

26 except as provided in subsection (b).
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HR 3936 RDS

1 (b) AUTHORIZED FEDERAL USES.—(1) A missile de2 scribed in subsection (c) may be converted for use as a

3 space transportation vehicle by the Federal Government

4 if—

5 (A) except as provided in paragraph (2), at

6 least 120 days before such conversion the agency

7 seeking to use the missile as a space transportation

8 vehicle transmits to the Committee on National Se9 curity and the Committee on Science of the House

10 of Representatives, and to the Committee on Armed

11 Services and the Committee on Commerce, Science,

12 and Transportation of the Senate, a report that con13 tains—

14 (i) a certification that the use of such mis15 sile—

16 (I) would result in significant cost

17 savings to the Federal Government when

18 compared to the cost of acquiring space

19 transportation services from United States

20 commercial providers; and

21 (II) meets all mission requirements of

22 the agency, including performance, sched23 ule, and risk requirements; and

24 (ii) comments obtained from United States

25 commercial providers in response to prior public
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1 notice published in the Commerce Business

2 Daily;

3 (B) the use of such missile is consistent with

4 international obligations of the United States; and

5 (C) the Secretary of Defense approves of such

6 conversion.

7 (2) The requirement under paragraph (1)(A) that the

8 report described in that subparagraph must be transmit9 ted at least 120 days before conversion of the missile shall

10 not apply if the Secretary of Defense determines that com11 pliance with that requirement would be inconsistent with

12 meeting immediate national security requirements.

13 (c) MISSILES REFERRED TO.—The missiles referred

14 to in this section are missiles owned by the United States

15 that were formerly used by the Department of Defense

16 for national defense purposes as intercontinental ballistic

17 missiles and that have been retired from service in compli18 ance with international obligations of the United States.

Passed the House of Representatives September 17,

1996.

Attest: ROBIN H. CARLE,

Clerk.