II 

108TH CONGRESS 

2D SESSION S. 2772

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. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2004

Mr. INHOFE introduced the following bill; which was read twice and referred 

to the Committee on Commerce, Science, and Transportation 

A BILL

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.

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 ‘‘Space Commercial 

5 Human Ascent Serving Expeditions Act’’ or the ‘‘Space 

6 CHASE Act’’. 
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1 SEC. 2. FINDINGS. 

2 The Congress finds that—

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

4 people and their private commercial, scientific, and 

5 cultural enterprises should guide Federal space in6 vestments, policies, and regulations; 

7 (2) private industry has begun to develop com8 mercial launch vehicles capable of carrying human 

9 beings into space, and greater private investment in 

10 these efforts will stimulate the Nation’s commercial 

11 space transportation industry as a whole; 

12 (3) space transportation is inherently risky; 

13 (4) a critical area of responsibility for the Of14 fice of the Associate Administrator for Commercial 

15 Space Transportation is to regulate the emerging 

16 commercial human space flight industry; and 

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

18 clear legal and regulatory regime for commercial 

19 human space flight. 

20 SEC. 3. AMENDMENTS. 

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

22 title 49, United States Code, is amended—

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

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

25 (2) in subsection (a)(4)—

26 (A) by striking ‘‘satellite’’; and 
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1 (B) by striking ‘‘services now available 

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

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

4 States Code, is amended—

5 (1) by redesignating paragraphs (2) through 

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

7 (10), (12), (13), (14), (15), (16), (18), (21), and 

8 (22), respectively; 

9 (2) by inserting after paragraph (1) the fol10 lowing new paragraph: 

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

12 transferee, or of a contractor or subcontractor of a 

13 licensee or transferee, who performs activities in the 

14 course of that employment directly relating to the 

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

16 vehicle or reentry vehicle that carries human 

17 beings.’’; 

18 (3) in paragraph (4), as redesignated by para19 graph (1) of this subsection, by inserting ‘‘, crew, or 

20 space flight participant’’ after ‘‘any payload’’; 

21 (4) in paragraph (6)(A), as redesignated by 

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

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

24 crew training), or space flight participant’’; 
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1 (5) in paragraph (8)(A), as redesignated by 

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

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

4 (6) by inserting after paragraph (10), as redes5 ignated by paragraph (1) of this subsection, the fol6 lowing new paragraph: 

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

8 issued under section 70105.’’; 

9 (7) in paragraph (13), as redesignated by para10 graph (1) of this subsection, by inserting ‘‘crew, or 

11 space flight participants,’’ after ‘‘and its payload,’’; 

12 (8) in paragraph (14)(A), as redesignated by 

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

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

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

16 (9) by inserting after paragraph (16), as redes17 ignated by paragraph (1) of this subsection, the fol18 lowing new paragraph: 

19 ‘‘(17) ‘space flight participant’ means an indi20 vidual, who is not crew, carried within a launch vehi21 cle or reentry vehicle.’’; 

22 (10) by inserting after paragraph (18), as re23 designated by paragraph (1) of this subsection, the 

24 following new paragraphs: 
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1 ‘‘(19) ‘suborbital rocket’ means a vehicle, rock2 et-propelled in whole or in part, intended for flight 

3 on a suborbital trajectory whose thrust is greater 

4 than its lift for the majority of the rocket-powered 

5 portion of its flight. 

6 ‘‘(20) ‘suborbital trajectory’ means the inten7 tional flight path of a launch vehicle, reentry vehicle, 

8 or any portion thereof, whose vacuum instantaneous 

9 impact point does not leave the surface of the 

10 Earth.’’; and 

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

12 paragraph (1) of this subsection—

13 (A) by striking ‘‘or’’ at the end of subpara14 graph (C); 

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

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

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

18 subparagraph: 

19 ‘‘(E) crew or space flight participants.’’.

20 (c) COMMERCIAL HUMAN SPACE FLIGHT.—(1) Sec21 tion 70103(a) of title 49, United States Code, is amend22 ed—

23 (A) by inserting ‘‘, through the Associate Ad24 ministrator for Commercial Space Transportation,’’ 

25 after ‘‘Secretary of Transportation’’; and
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1 (B) by adding at the end the following new sen2 tence: ‘‘The Secretary of Transportation shall ensure 

3 that the Associate Administrator for Commercial 

4 Space Transportation has sufficient personnel from 

5 within the Federal Aviation Administration to carry 

6 out this chapter.’’. 

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

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

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

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

11 is amended—

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

13 license issued or transferred under this chapter’’ and 

14 inserting ‘‘REQUIREMENT.—A license issued or 

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

16 (B) by inserting after paragraph (4) the fol17 lowing: 

18 ‘‘Notwithstanding this subsection, a permit shall not au19 thorize a person to operate a launch site or reentry site.’’. 

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

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

22 license’’. 

23 (5) Section 70104 of title 49, United States Code, 

24 is amended by adding at the end the following: 
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1 ‘‘(d) LIMITATION ON CONDITIONS.—(1) The Sec2 retary of Transportation shall not make it a condition or 

3 requirement for a person who receives a license or experi4 mental permit under this chapter to obtain any other li5 cense, permit, certificate, or other legal instrument from 

6 the Secretary for the conduct of the activity, including 

7 flight and return, for which the license or permit was 

8 issued. 

9 ‘‘(2) The Secretary of Transportation shall not re10 quire any additional license, permit, certificate, or other 

11 legal instrument be obtained from the Department of 

12 Transportation for any activity, including flight and re13 turn, for which a license or experimental permit has been 

14 issued under this chapter.’’. 

15 (6) The section heading of section 70105 of title 49, 

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

17 applications’’ and inserting ‘‘Applications’’, and 

18 the item relating to that section in the table of sections 

19 for chapter 701 of title 49, United States Code, is amend20 ed accordingly. 

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

22 is amended—

23 (A) by striking ‘‘APPLICATIONS.—’’ and insert24 ing ‘‘LICENSES.—’’; 
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1 (B) in paragraph (1), by striking ‘‘subsection 

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

3 ‘‘subsection (c)(2)(D)’’; and 

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

5 crews,’’ after ‘‘or personnel’’. 

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

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

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

9 subsection (a) the following new subsection: 

10 ‘‘(b) EXPERIMENTAL.—(1) A person may apply to 

11 the Secretary of Transportation for an experimental per12 mit under this subsection in the form and manner the Sec13 retary prescribes. Consistent with the public health and 

14 safety, safety of property, and national security and for15 eign policy interests of the United States, the Secretary, 

16 not later than 90 days after receiving an application pur17 suant to this subsection, shall issue a permit if the Sec18 retary decides in writing that the applicant complies, and 

19 will continue to comply, with this chapter and regulations 

20 prescribed under this chapter. The Secretary shall inform 

21 the applicant of any pending issue and action required to 

22 resolve the issue if the Secretary has not made a decision 

23 not later than 60 days after receiving an application. The 

24 Secretary shall transmit to the Committee on Science of 

25 the House of Representatives and Committee on Com-
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1 merce, Science, and Transportation of the Senate a writ2 ten notice not later than 15 days after any occurrence 

3 when a permit is not issued within the deadline established 

4 by this subsection. 

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

6 may establish procedures for safety approvals of launch 

7 vehicles, reentry vehicles, safety systems, processes, serv8 ices, or personnel, including crews, that may be used in 

9 conducting commercial space launch or reentry activities 

10 pursuant to a permit. 

11 ‘‘(3) In order to encourage the development of a com12 mercial space flight industry, the Secretary, to the great13 est extent practicable, shall when issuing permits use the 

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

15 ‘‘(4) The Secretary may issue a permit only for reus16 able suborbital rockets that will be launched or reentered 

17 solely for—

18 ‘‘(A) research and development to test new de19 sign concepts, new equipment, or new operating 

20 techniques; 

21 ‘‘(B) showing compliance with requirements as 

22 part of the process for obtaining a license under this 

23 chapter; or 
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1 ‘‘(C) crew training prior to obtaining a license 

2 for a launch or reentry using the design of the rock3 et for which the permit would be issued. 

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

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

6 and reentries for a particular suborbital rocket de7 sign for the uses described in paragraph (4); and 

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

9 made to the suborbital rocket without changing the 

10 design to an extent that would invalidate the permit. 

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

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

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

14 a particular design for a reusable suborbital rocket after 

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

16 rocket of that design. 

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

18 rocket under a permit for carrying any property or human 

19 being for compensation or hire. 

20 ‘‘(9) For the purposes of sections 70106, 70107, 

21 70108, 70109, 70110, 70112, 70115, 70116, 70117, and 

22 70121 of this chapter—

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

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

25 a licensee; 
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1 ‘‘(C) a vehicle operating under a permit shall be 

2 considered to be licensed; and 

3 ‘‘(D) the issuance of a permit shall be consid4 ered licensing. 

5 This paragraph shall not be construed to allow the trans6 fer of a permit.’’. 

7 (9) Section 70105(c)(1) of title 49, United States 

8 Code, as redesignated by paragraph (7) of this subsection, 

9 is amended by inserting ‘‘or permit’’ after ‘‘for a license’’. 

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

11 States Code, as redesignated by paragraph (7) of this sub12 section, is amended by striking ‘‘an additional require13 ment’’ and inserting ‘‘any additional requirement’’. 

14 (11) Section 70105(c)(2)(C) of title 49, United 

15 States Code, as redesignated by paragraph (7) of this sub16 section, is amended by inserting ‘‘or permit’’ after ‘‘for 

17 a license’’.

18 (12) Section 70105(c)(2)(D) of title 49, United 

19 States Code, as redesignated by paragraph (7) of this sub20 section, is amended by inserting ‘‘or permit’’ after ‘‘for 

21 a license’’. 

22 (13) Section 70105(c)(3) of title 49, United States 

23 Code, as redesignated by paragraph (7) of this subsection, 

24 is amended by adding at the end the following: ‘‘Nothing 

25 in this paragraph shall be construed to allow the launch
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1 or reentry of a launch vehicle or a reentry vehicle without 

2 a license or permit if a human being will be on board.’’. 

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

4 Code, as redesignated by paragraph (7) of this subsection, 

5 is amended by adding at the end the following new para6 graphs: 

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

8 chapter may launch or reenter crew only if—

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

10 satisfied medical or other standards specified in the 

11 license or permit in accordance with regulations pro12 mulgated by the Secretary; and 

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

14 crew have complied with all requirements of the laws 

15 of the United States that apply to crew. 

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

17 chapter may launch or reenter a space flight participant 

18 only if—

19 ‘‘(A) in accordance with regulations promul20 gated by the Secretary, the holder of the license or 

21 permit has informed the space flight participant in 

22 writing about the risks of the launch or reentry, in23 cluding the safety record of the launch or reentry ve24 hicle type, and the space flight participant has pro-
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1 vided written informed consent to participation in 

2 the launch or reentry; and 

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

4 space flight participant have complied with all re5 quirements of the laws of the United States related 

6 to launching or reentering a space flight partici7 pant.’’. 

8 (15) Section 70105(d) of title 49, United States 

9 Code, as redesignated by paragraph (7) of this subsection, 

10 is amended by inserting ‘‘or permit’’ after ‘‘of a license’’. 

11 (16) Section 70106(a) of title 49, United States 

12 Code, is amended—

13 (A) by inserting ‘‘at a site used for crew train14 ing,’’ after ‘‘assemble a launch vehicle or reentry ve15 hicle,’’; and 

16 (B) by striking ‘‘section 70104(c)’’ and insert17 ing ‘‘sections 70104(c) and 70105(c)(4)’’. 

18 (17) Section 70110(a)(1) of title 49, United States 

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

20 ‘‘70105’’. 

21 (18) Section 70112(b)(1) of title 49, United States 

22 Code, is amended—

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

24 after ‘‘its contractors, subcontractors,’’; 
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1 (B) by inserting ‘‘or by space flight partici2 pants,’’ after ‘‘its own employees’’; and

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

4 requirement for space flight participants to make a 

5 reciprocal waiver of claims with the licensee or 

6 transferee shall expire 3 years after the first licensed 

7 launch of a launch vehicle carrying a space flight 

8 participant.’’. 

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

10 Code, is amended—

11 (A) by inserting ‘‘crew, space flight partici12 pants,’’ after ‘‘transferee, contractors, subcontrac13 tors,’’; and 

14 (B) by inserting ‘‘or by space flight partici15 pants,’’ after ‘‘its own employees’’. 

16 (20) Section 70113(a)(1) of title 49, United States 

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

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

19 (21) Section 70113(f) of title 49, United States Code, 

20 is amended by striking ‘‘December 31, 2004.’’ and insert21 ing ‘‘December 31, 2007. This section does not apply to 

22 permits.’’. 

23 (22) Section 70115(b)(1)(D)(i) of title 49, United 

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

25 after ‘‘site of a launch vehicle or reentry vehicle,’’. 
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1 (23) Section 70119 of title 49, United States Code, 

2 is amended by striking paragraphs (1) and (2) and insert3 ing the following: 

4 ‘‘(1) $11,776,000 for fiscal year 2005; 

5 ‘‘(2) $11,776,000 for fiscal year 2006; and 

6 ‘‘(3) $11,776,000 for fiscal year 2007.’’. 

7 (24) Section 70120 of title 49, United States Code, 

8 is amended by adding at the end the following new sub9 sections: 

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

11 the date of enactment of the Commercial Space Launch 

12 Amendments Act of 2004, the Secretary shall publish pro13 posed regulations to carry out that Act, including regula14 tions relating to crew, space flight participants, and per15 mits for launch or reentry of reusable suborbital rockets. 

16 Not later than 18 months after such date of enactment, 

17 the Secretary shall issue final regulations. 

18 ‘‘(d) EFFECTIVE.—(1) Licenses for the launch or re19 entry of launch vehicles or reentry vehicles with human 

20 beings on board and permits may be issued by the Sec21 retary prior to the issuance of the regulations described 

22 in subsection (c). 

23 ‘‘(2) As soon as practicable after the date of enact24 ment of the Commercial Space Launch Amendments Act 

25 of 2004, the Secretary shall issue guidelines or advisory 
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1 circulars to guide the implementation of that Act until 

2 regulations are issued. 

3 ‘‘(3) Notwithstanding paragraphs (1) and (2), no li4 censes for the launch or reentry of launch vehicles or re5 entry vehicles with human beings on board or permits may 

6 be issued starting three years after the date of enactment 

7 of the Commercial Space Launch Amendments Act of 

8 2004 unless the final regulations described in subsection 

9 (c) have been issued.’’. 

10 SEC. 4. STUDY ON THE GRADUAL ELIMINATION OF COM11 MERCIAL SPACE TRANSPORTATION LIABIL12 ITY RISK SHARING REGIME. 

13 Not later than 60 days after the date of enactment 

14 of this Act, the Secretary of Transportation shall enter 

15 into an appropriate arrangement with the National Acad16 emy of Public Administration to conduct a study of how 

17 best to gradually eliminate the liability risk sharing regime 

18 in the United States for commercial space transportation 

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

20 study shall assess methods by which the liability risk shar21 ing regime could be eliminated by 2008 or as soon as pos22 sible thereafter and the impact those methods would be 

23 likely to have on the commercial space transportation in24 dustry. The methods examined shall include incremental 

25 approaches. 
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1 SEC. 5. TECHNICAL AMENDMENT. 

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

3 is repealed.

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