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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5382 Enrolled Bill (ENR)]

        H.R.5382

                       One Hundred Eighth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four

                                 An Act

 
To promote the development of the emerging commercial human space flight 
                    industry, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commercial Space Launch Amendments 
Act of 2004''.

SEC. 2. AMENDMENTS.

    (a) Findings and Purposes.--Section 70101 of title 49, United 
States Code, is amended--
        (1) in subsection (a)(3), by inserting ``human space flight,'' 
    after ``microgravity research,'';
        (2) in subsection (a)(4)--
            (A) by striking ``satellite''; and
            (B) by striking ``services now available from'' and 
        inserting ``capabilities of'';
        (3) in subsection (a)(8), by striking ``and'' at the end;
        (4) in subsection (a)(9), by striking the period and inserting 
    a semicolon;
        (5) by adding at the end of subsection (a) the following new 
    paragraphs:
        ``(10) the goal of safely opening space to the American people 
    and their private commercial, scientific, and cultural enterprises 
    should guide Federal space investments, policies, and regulations;
        ``(11) private industry has begun to develop commercial launch 
    vehicles capable of carrying human beings into space and greater 
    private investment in these efforts will stimulate the Nation's 
    commercial space transportation industry as a whole;
        ``(12) space transportation is inherently risky, and the future 
    of the commercial human space flight industry will depend on its 
    ability to continually improve its safety performance;
        ``(13) a critical area of responsibility for the Department of 
    Transportation is to regulate the operations and safety of the 
    emerging commercial human space flight industry;
        ``(14) the public interest is served by creating a clear legal, 
    regulatory, and safety regime for commercial human space flight; 
    and
        ``(15) the regulatory standards governing human space flight 
    must evolve as the industry matures so that regulations neither 
    stifle technology development nor expose crew or space flight 
    participants to avoidable risks as the public comes to expect 
    greater safety for crew and space flight participants from the 
    industry.'';
        (6) in subsection (b)(2)--
            (A) by striking ``and'' at the end of subparagraph (A);
            (B) by inserting ``and'' after the semicolon in 
        subparagraph (B); and
            (C) by adding at the end the following new subparagraph:
            ``(C) promoting the continuous improvement of the safety of 
        launch vehicles designed to carry humans, including through the 
        issuance of regulations, to the extent permitted by this 
        chapter;''; and
        (7) in subsection (b)(3), by striking ``issue and transfer'' 
    and inserting ``issue permits and commercial licenses and 
    transfer''.
    (b) Definitions.--Section 70102 of title 49, United States Code, is 
amended--
        (1) by redesignating paragraphs (2) through (17) as paragraphs 
    (3), (4), (5), (6), (7), (8), (9), (10), (12), (13), (14), (15), 
    (16), (18), (21), and (22), respectively;
        (2) by inserting after paragraph (1) the following new 
    paragraph:
        ``(2) `crew' means any employee of a licensee or transferee, or 
    of a contractor or subcontractor of a licensee or transferee, who 
    performs activities in the course of that employment directly 
    relating to the launch, reentry, or other operation of or in a 
    launch vehicle or reentry vehicle that carries human beings.'';
        (3) in paragraph (4), as so redesignated by paragraph (1) of 
    this subsection, by inserting ``, crew, or space flight 
    participant'' after ``any payload'';
        (4) in paragraph (6)(A), as so redesignated by paragraph (1) of 
    this subsection, by striking ``and payload'' and inserting ``, 
    payload, crew (including crew training), or space flight 
    participant'';
        (5) in paragraph (8)(A), as so redesignated by paragraph (1) of 
    this subsection, by inserting ``or human beings'' after ``place a 
    payload'';
        (6) by inserting after paragraph (10), as so redesignated by 
    paragraph (1) of this subsection, the following new paragraph:
        ``(11) except in section 70104(c), `permit' means an 
    experimental permit issued under section 70105a.'';
        (7) in paragraph (13), as so redesignated by paragraph (1) of 
    this subsection, by inserting ``crew, or space flight 
    participants,'' after ``and its payload,'';
        (8) in paragraph (14)(A), as so redesignated by paragraph (1) 
    of this subsection, by striking ``and its payload'' inserting ``and 
    payload, crew (including crew training), or space flight 
    participant'';
        (9) by inserting after paragraph (16), as so redesignated by 
    paragraph (1) of this subsection, the following new paragraph:
        ``(17) `space flight participant' means an individual, who is 
    not crew, carried within a launch vehicle or reentry vehicle.'';
        (10) by inserting after paragraph (18), as so redesignated by 
    paragraph (1) of this subsection, the following new paragraphs:
        ``(19) unless and until regulations take effect under section 
    70120(c)(2), `suborbital rocket' means a vehicle, rocket-propelled 
    in whole or in part, intended for flight on a suborbital 
    trajectory, and the thrust of which is greater than its lift for 
    the majority of the rocket-powered portion of its ascent.
        ``(20) `suborbital trajectory' means the intentional flight 
    path of a launch vehicle, reentry vehicle, or any portion thereof, 
    whose vacuum instantaneous impact point does not leave the surface 
    of the Earth.''; and
        (11) in paragraph (21), as so redesignated by paragraph (1) of 
    this subsection--
            (A) by striking ``or'' at the end of subparagraph (C);
            (B) by striking the period at the end of subparagraph (D) 
        and inserting ``; or''; and
            (C) by adding at the end the following new subparagraph:
            ``(E) crew or space flight participants.''.
    (c) Commercial Human Space Flight.--(1) Section 70103(b)(1) of 
title 49, United States Code, is amended by inserting ``, including 
those involving space flight participants'' after ``private sector''.
    (2) Section 70103 of title 49, United States Code, is amended by 
redesignating subsection (c) as subsection (d), and by inserting after 
subsection (b) the following new subsection:
    ``(c) Safety.--In carrying out the responsibilities under 
subsection (b), the Secretary shall encourage, facilitate, and promote 
the continuous improvement of the safety of launch vehicles designed to 
carry humans, and the Secretary may, consistent with this chapter, 
promulgate regulations to carry out this subsection.''.
    (3) Section 70104(a) of title 49, United States Code, is amended--
        (A) by striking ``License Requirement.--A license issued or 
    transferred under this chapter'' and inserting ``Requirement.--A 
    license issued or transferred under this chapter, or a permit,''; 
    and
        (B) by inserting after paragraph (4) the following: 
    ``Notwithstanding this subsection, a permit shall not authorize a 
    person to operate a launch site or reentry site.''.
    (4) Section 70104(b) of title 49, United States Code, is amended by 
inserting ``or permit'' after ``holder of a license''.
    (5) Section 70104 of title 49, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d) Single License or Permit.--The Secretary of Transportation 
shall ensure that only 1 license or permit is required from the 
Department of Transportation to conduct activities involving crew or 
space flight participants, including launch and reentry, for which a 
license or permit is required under this chapter. The Secretary shall 
ensure that all Department of Transportation regulations relevant to 
the licensed or permitted activity are satisfied.''.
    (6) Section 70105(a) of title 49, United States Code, is amended--
        (A) in paragraph (1), by striking ``a license is not issued'' 
    and inserting ``the Secretary has not taken action on a license 
    application''; and
        (B) in paragraph (2), by inserting ``(including approval 
    procedures for the purpose of protecting the health and safety of 
    crews and space flight participants, to the extent permitted by 
    subsections (b) and (c))'' after ``or personnel''.
    (7) Section 70105(b)(1) of title 49, United States Code, is amended 
by inserting ``or permit'' after ``for a license''.
    (8) Section 70105(b)(2)(B) of title 49, United States Code, is 
amended by striking ``an additional requirement necessary to protect'' 
and inserting ``any additional requirement necessary to protect''.
    (9) Section 70105(b)(2)(C) of title 49, United States Code, is 
amended--
        (A) by inserting ``or permit'' after ``for a license''; and
        (B) by striking ``and'' at the end thereof.
    (10) Section 70105(b)(2) of title 49, United States Code, is 
amended by redesignating subparagraph (D) as subparagraph (E) and 
inserting after subparagraph (C) the following new subparagraph:
            ``(D) additional license requirements, for a launch vehicle 
        carrying a human being for compensation or hire, necessary to 
        protect the health and safety of crew or space flight 
        participants, only if such requirements are imposed pursuant to 
        final regulations issued in accordance with subsection (c); 
        and''.
    (11) Section 70105(b)(2)(E) of title 49, United States Code, as so 
redesignated by paragraph (11) of this subsection, is amended by 
inserting ``or permit'' after ``for a license''.
    (12) Section 70105(b)(3) of title 49, United States Code, is 
amended by adding at the end the following: ``The Secretary may not 
grant a waiver under this paragraph that would permit the launch or 
reentry of a launch vehicle or a reentry vehicle without a license or 
permit if a human being will be on board.''.
    (13) Section 70105(b) of title 49, United States Code, is amended 
by adding at the end the following new paragraphs:
        ``(4) The holder of a license or a permit under this chapter 
    may launch or reenter crew only if--
            ``(A) the crew has received training and has satisfied 
        medical or other standards specified in the license or permit 
        in accordance with regulations promulgated by the Secretary;
            ``(B) the holder of the license or permit has informed any 
        individual serving as crew in writing, prior to executing any 
        contract or other arrangement to employ that individual (or, in 
        the case of an individual already employed as of the date of 
        enactment of the Commercial Space Launch Amendments Act of 
        2004, as early as possible, but in any event prior to any 
        launch in which the individual will participate as crew), that 
        the United States Government has not certified the launch 
        vehicle as safe for carrying crew or space flight participants; 
        and
            ``(C) the holder of the license or permit and crew have 
        complied with all requirements of the laws of the United States 
        that apply to crew.
        ``(5) The holder of a license or a permit under this chapter 
    may launch or reenter a space flight participant only if--
            ``(A) in accordance with regulations promulgated by the 
        Secretary, the holder of the license or permit has informed the 
        space flight participant in writing about the risks of the 
        launch and reentry, including the safety record of the launch 
        or reentry vehicle type, and the Secretary has informed the 
        space flight participant in writing of any relevant information 
        related to risk or probable loss during each phase of flight 
        gathered by the Secretary in making the determination required 
        by section 70112(a)(2) and (c);
            ``(B) the holder of the license or permit has informed any 
        space flight participant in writing, prior to receiving any 
        compensation from that space flight participant or (in the case 
        of a space flight participant not providing compensation) 
        otherwise concluding any agreement to fly that space flight 
        participant, that the United States Government has not 
        certified the launch vehicle as safe for carrying crew or space 
        flight participants;
            ``(C) in accordance with regulations promulgated by the 
        Secretary, the space flight participant has provided written 
        informed consent to participate in the launch and reentry and 
        written certification of compliance with any regulations 
        promulgated under paragraph (6)(A); and
            ``(D) the holder of the license or permit has complied with 
        any regulations promulgated by the Secretary pursuant to 
        paragraph (6).
        ``(6)(A) The Secretary may issue regulations requiring space 
    flight participants to undergo an appropriate physical examination 
    prior to a launch or reentry under this chapter. This subparagraph 
    shall cease to be in effect three years after the date of enactment 
    of the Commercial Space Launch Amendments Act of 2004.
        ``(B) The Secretary may issue additional regulations setting 
    reasonable requirements for space flight participants, including 
    medical and training requirements. Such regulations shall not be 
    effective before the expiration of 3 years after the date of 
    enactment of the Commercial Space Launch Amendments Act of 2004.''.
    (14) Section 70105 of title 49, United States Code, is amended by 
redesignating subsection (c) as subsection (d), and by adding after 
subsection (b) the following new subsection:
    ``(c) Safety Regulations.--(1) The Secretary may issue regulations 
governing the design or operation of a launch vehicle to protect the 
health and safety of crew and space flight participants.
        ``(2) Regulations issued under this subsection shall--
            ``(A) describe how such regulations would be applied when 
        the Secretary is determining whether to issue a license under 
        this chapter;
            ``(B) apply only to launches in which a vehicle will be 
        carrying a human being for compensation or hire;
            ``(C) be limited to restricting or prohibiting design 
        features or operating practices that--
                ``(i) have resulted in a serious or fatal injury (as 
            defined in 49 CFR 830, as in effect on November 10, 2004) 
            to crew or space flight participants during a licensed or 
            permitted commercial human space flight; or
                ``(ii) contributed to an unplanned event or series of 
            events during a licensed or permitted commercial human 
            space flight that posed a high risk of causing a serious or 
            fatal injury (as defined in 49 CFR 830, as in effect on 
            November 10, 2004) to crew or space flight participants; 
            and
            ``(D) be issued with a description of the instance or 
        instances when the design feature or operating practice being 
        restricted or prohibited contributed to a result or event 
        described in subparagraph (C).
        ``(3) Beginning 8 years after the date of enactment of the 
    Commercial Space Launch Amendments Act of 2004, the Secretary may 
    propose regulations under this subsection without regard to 
    paragraph (2)(C) and (D). Any such regulations shall take into 
    consideration the evolving standards of safety in the commercial 
    space flight industry.
        ``(4) Nothing in this subsection shall be construed to limit 
    the authority of the Secretary to issue requirements or regulations 
    to protect the public health and safety, safety of property, 
    national security interests, and foreign policy interests of the 
    United States.''.
    (15) Section 70105(d) of title 49, United States Code, as so 
redesignated by paragraph (15) of this subsection, is amended by 
inserting ``or permit'' after ``of a license''.
    (16) Chapter 701 of title 49, United States Code, is amended by 
inserting after section 70105 the following new section:

``Sec. 70105a. Experimental permits

    ``(a) A person may apply to the Secretary of Transportation for an 
experimental permit under this section in the form and manner the 
Secretary prescribes. Consistent with the protection of the public 
health and safety, safety of property, and national security and 
foreign policy interests of the United States, the Secretary, not later 
than 120 days after receiving an application pursuant to this section, 
shall issue a permit if the Secretary decides in writing that the 
applicant complies, and will continue to comply, with this chapter and 
regulations prescribed under this chapter. The Secretary shall inform 
the applicant of any pending issue and action required to resolve the 
issue if the Secretary has not made a decision not later than 90 days 
after receiving an application. The Secretary shall transmit to the 
Committee on Science of the House of Representatives and Committee on 
Commerce, Science, and Transportation of the Senate a written notice 
not later than 15 days after any occurrence when the Secretary has 
failed to act on a permit within the deadline established by this 
section.
    ``(b) In carrying out subsection (a), the Secretary may establish 
procedures for safety approvals of launch vehicles, reentry vehicles, 
safety systems, processes, services, or personnel that may be used in 
conducting commercial space launch or reentry activities pursuant to a 
permit.
    ``(c) In order to encourage the development of a commercial space 
flight industry, the Secretary may when issuing permits use the 
authority granted under section 70105(b)(2)(C).
    ``(d) The Secretary may issue a permit only for reusable suborbital 
rockets that will be launched or reentered solely for--
        ``(1) research and development to test new design concepts, new 
    equipment, or new operating techniques;
        ``(2) showing compliance with requirements as part of the 
    process for obtaining a license under this chapter; or
        ``(3) crew training prior to obtaining a license for a launch 
    or reentry using the design of the rocket for which the permit 
    would be issued.
    ``(e) Permits issued under this section shall--
        ``(1) authorize an unlimited number of launches and reentries 
    for a particular suborbital rocket design for the uses described in 
    subsection (d); and
        ``(2) specify the type of modifications that may be made to the 
    suborbital rocket without changing the design to an extent that 
    would invalidate the permit.
    ``(f) Permits shall not be transferable.
    ``(g) A permit may not be issued for, and a permit that has already 
been issued shall cease to be valid for, a particular design for a 
reusable suborbital rocket after a license has been issued for the 
launch or reentry of a rocket of that design.
    ``(h) No person may operate a reusable suborbital rocket under a 
permit for carrying any property or human being for compensation or 
hire.
    ``(i) For the purposes of sections 70106, 70107, 70108, 70109, 
70110, 70112, 70115, 70116, 70117, and 70121 of this chapter--
        ``(1) a permit shall be considered a license;
        ``(2) the holder of a permit shall be considered a licensee;
        ``(3) a vehicle operating under a permit shall be considered to 
    be licensed; and
        ``(4) the issuance of a permit shall be considered licensing.
    This subsection shall not be construed to allow the transfer of a 
    permit.''.
    (17) Section 70106(a) of title 49, United States Code, is amended--
        (A) by inserting ``at a site used for crew or space flight 
    participant training,'' after ``assemble a launch vehicle or 
    reentry vehicle,''; and
        (B) by striking ``section 70104(c)'' and inserting ``sections 
    70104(c), 70105, and 70105a''.
    (18) Section 70107(b) of title 49, United States Code, is amended--
        (A) by inserting ``(1)'' before ``On the initiative''; and
        (B) by adding the following new paragraph at the end:
        ``(2) The Secretary shall modify a license issued or 
    transferred under this chapter whenever a modification is needed 
    for the license to be in conformity with a regulation that was 
    issued pursuant to section 70105(c) after the issuance of the 
    license. This paragraph shall not apply to permits.''.
    (19) Section 70107 of title 49, United States Code, is amended by 
redesignating subsections (d) and (e) as subsections (e) and (f), 
respectively, and by inserting after subsection (c) the following new 
subsection:
    ``(d) Additional Suspensions.--(1) The Secretary may suspend a 
license when a previous launch or reentry under the license has 
resulted in a serious or fatal injury (as defined in 49 CFR 830, as in 
effect on November 10, 2004) to crew or space flight participants and 
the Secretary has determined that continued operations under the 
license are likely to cause additional serious or fatal injury (as 
defined in 49 CFR 830, as in effect on November 10, 2004) to crew or 
space flight participants.
        ``(2) Any suspension imposed under this subsection shall be for 
    as brief a period as possible and, in any event, shall cease when 
    the Secretary--
            ``(A) has determined that the licensee has taken sufficient 
        steps to reduce the likelihood of a recurrence of the serious 
        or fatal injury; or
            ``(B) has modified the license pursuant to subsection (b) 
        to sufficiently reduce the likelihood of a recurrence of the 
        serious or fatal injury.
        ``(3) This subsection shall not apply to permits.''.
    (20) Section 70110(a)(1) of title 49, United States Code, is 
amended by inserting ``or 70105a'' after ``70105(a)''.
    (21) Section 70112(b)(2) of title 49, United States Code, is 
amended--
        (A) by inserting ``crew, space flight participants,'' after 
    ``transferee, contractors, subcontractors,''; and
        (B) by inserting ``or by space flight participants,'' after 
    ``its own employees''.
    (22) Section 70113(a)(1) of title 49, United States Code, is 
amended by inserting ``but not against a space flight participant,'' 
after ``subcontractor of a customer,''.
    (23) Section 70113(f) of title 49, United States Code, is amended 
by inserting at the end the following: ``This section does not apply to 
permits.''.
    (24) Section 70115(b)(1)(D)(i) of title 49, United States Code, is 
amended by inserting ``crew or space flight participant training 
site,'' after ``site of a launch vehicle or reentry vehicle,''.
    (25) Section 70120 of title 49, United States Code, is amended by 
adding at the end the following new subsections:
    ``(c) Amendments.--(1) Not later than 12 months after the date of 
enactment of the Commercial Space Launch Amendments Act of 2004, the 
Secretary shall publish proposed regulations to carry out that Act, 
including regulations relating to crew, space flight participants, and 
permits for launch or reentry of reusable suborbital rockets. Not later 
than 18 months after such date of enactment, the Secretary shall issue 
final regulations.
        ``(2)(A) Starting 3 years after the date of enactment of the 
    Commercial Space Launch Amendments Act of 2004, the Secretary may 
    issue final regulations changing the definition of suborbital 
    rocket under this chapter. No such regulation may take effect until 
    180 days after the Secretary has submitted the regulation to the 
    Congress.
        ``(B) The Secretary may issue regulations under this paragraph 
    only if the Secretary has determined that the definition in section 
    70102 does not describe, or will not continue to describe, all 
    appropriate vehicles and only those vehicles. In making that 
    determination, the Secretary shall take into account the evolving 
    nature of the commercial space launch industry.
    ``(d) Effective Date.--(1) Licenses for the launch or reentry of 
launch vehicles or reentry vehicles with human beings on board and 
permits may be issued by the Secretary prior to the issuance of the 
regulations described in subsection (c).
        ``(2) As soon as practicable after the date of enactment of the 
    Commercial Space Launch Amendments Act of 2004, the Secretary shall 
    issue guidelines or advisory circulars to guide the implementation 
    of that Act until regulations are issued.
        ``(3) Notwithstanding paragraphs (1) and (2), no licenses for 
    the launch or reentry of launch vehicles or reentry vehicles with 
    human beings on board or permits may be issued starting three years 
    after the date of enactment of the Commercial Space Launch 
    Amendments Act of 2004 unless the final regulations described in 
    subsection (c) have been issued.''.
    (26) The table of sections for chapter 701 of title 49, United 
States Code, is amended by inserting after the item relating to 70105 
the following new item:
``70105a. Experimental permits.''.

SEC. 3. STUDIES.

    (a) Risk Sharing.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Transportation shall enter into 
an arrangement with a nonprofit entity for the conduct of an 
independent comprehensive study of the liability risk sharing regime in 
the United States for commercial space transportation under section 
70113 of title 49, United States Code. To ensure that Congress has a 
full analysis of the liability risk sharing regime, the study shall 
assess methods by which the current system could be eliminated, 
including an estimate of the time required to implement each of the 
methods assessed. The study shall assess whether any alternative steps 
would be needed to maintain a viable and competitive United States 
space transportation industry if the current regime were eliminated. In 
conducting the assessment under this subsection, input from commercial 
space transportation insurance experts shall be sought. The study also 
shall examine liability risk sharing in other nations with commercial 
launch capability and evaluate the direct and indirect impact that 
ending this regime would have on the competitiveness of the United 
States commercial space launch industry in relation to foreign 
commercial launch providers and on United States assured access to 
space.
    (b) Safety.--The Secretary of Transportation, in consultation with 
the Administrator of the National Aeronautics and Space Administration, 
shall enter into an arrangement with a nonprofit entity for a report 
analyzing safety issues related to launching human beings into space. 
In designing the study, the Secretary should take into account any 
recommendations from the Commercial Space Transportation Advisory 
Committee and the National Aeronautics and Space Administration's 
Aerospace Safety Advisory Panel. The report shall be submitted to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Science within 4 years of the date of 
enactment of this Act. The report shall analyze and make 
recommendations about--
        (1) the standards of safety and concepts of operation that 
    should guide the regulation of human space flight and whether the 
    standard of safety should vary by class or type of vehicle, the 
    purpose of flight, or other considerations;
        (2) the effectiveness of the commercial licensing and 
    permitting regime under chapter 701 of title 49, United States 
    Code, particularly in ensuring the safety of the public and of crew 
    and space flight participants during launch, in-space transit, 
    orbit, and reentry, and whether any changes are needed to that 
    chapter;
        (3) whether there is a need for commercial ground operations 
    for commercial space flight, including provision of launch support, 
    launch and reentry control, mission control, range operations, and 
    communications and telemetry operations through all phases of 
    flight, and if such operations developed, whether and how they 
    should be regulated;
        (4) whether expendable and reusable launch and reentry vehicles 
    should be regulated differently from each other, and whether either 
    of those vehicles should be regulated differently when carrying 
    human beings;
        (5) whether the Federal Government should separate the 
    promotion of human space flight from the regulation of such 
    activity;
        (6) how third parties could be used to evaluate the 
    qualification and acceptance of new human space flight vehicles 
    prior to their operation;
        (7) how nongovernment experts could participate more fully in 
    setting standards and developing regulations concerning human space 
    flight safety; and
        (8) whether the Federal Government should regulate the extent 
    of foreign ownership or control of human space flight companies 
    operating or incorporated in the United States.

SEC. 4. TECHNICAL AMENDMENT.

    Section 102(c) of the Commercial Space Act of 1998 is repealed.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```