I

103D CONGRESS

1ST SESSION H. R. 2731

To encourage the development of a commercial space industry in the United

States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 23, 1993

Mr. WALKER (for himself, Mr. FAWELL, Mr. SMITH of Michigan, and Mr.

ROHRABACHER) introduced the following bill; which was referred jointly

to the Committees on Science, Space, and Technology, Ways and Means,

Natural Resources, Agriculture, and the Judiciary

A BILL

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.

4 This Act may be cited as the ‘‘Omnibus Space Com5 mercialization Act of 1993’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—
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1 (1) the exploration of space holds the potential

2 for vast new enterprises which will benefit the

3 United States and all of mankind;

4 (2) inevitably where exploration has taken place

5 commercial activity follows;

6 (3) the development of a robust commercial

7 space industry in the United States is required to

8 restore and maintain United States world leadership

9 in the exploration, development, commercialization,

10 and settlement of space and to maintain the health

11 and growth of the national economy, meet national

12 security objectives, and sustain the position of the

13 United States as a world power;

14 (4) the United States is in danger of losing its

15 leadership position in space transportation;

16 (5) the Federal Government should encourage,

17 facilitate, and promote the United States commercial

18 space industry, including the development of com19 mercial launch facilities, in order to ensure United

20 States economic preeminence in space;

21 (6) creation of a space infrastructure and trans22 portation industries in a timely, profitable, innova23 tive, and sustainable manner can be accomplished

24 only by private enterprise;
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1 (7) incentives are needed to be put in place for

2 private enterprise to undertake the high risk venture

3 of commercial space industrialization; and

4 (8) commercial space activity presents unique

5 legal problems that need to be clarified before the

6 full industrialization of space can go forward.

7 SEC. 3. DEFINITIONS.

8 For purposes of this Act—

9 (1) the term ‘‘commercial provider’’ means any

10 person providing space transportation services or

11 other space-related activities;

12 (2) 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

16 the space transportation vehicle itself except for its

17 components which are specifically designed or adapt18 ed for that payload;

19 (3) the term ‘‘Secretary’’ means the Secretary

20 of Transportation;

21 (4) the term ‘‘space infrastructure’’ means all

22 facilities, equipment, and real property (including

23 ranges) used to perform space-related activities;

24 (5) the term ‘‘space launch and launch support

25 facilities’’ means space infrastructure used—
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1 (A) to prepare space transportation vehi2 cles and their payloads for transportation to,

3 from, or within outer space, or in suborbital

4 trajectory; or

5 (B) to launch such vehicles;

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

7 research and development, manufacturing, process8 ing, service, and other associated and support activi9 ties;

10 (7) the term ‘‘space transportation services’’

11 means the preparation of a space transportation ve12 hicle and its payloads for transportation to, from, or

13 within outer space, or in suborbital trajectory, and

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

15 within outer space, or in suborbital trajectory;

16 (8) the term ‘‘space transportation vehicle’’

17 means any vehicle constructed for the purpose of op18 erating in, or transporting a payload to, from, or

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

20 includes any component of such vehicle not specifi21 cally designed or adapted for a payload;

22 (9) the term ‘‘United States person’’ means an

23 individual, corporation, commercial provider, or

24 other entity organized under the laws of the United
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1 States or a State, Commonwealth, territory, or pos2 session of the United States which is—

3 (A) more than 50 percent owned by United

4 States nationals; or

5 (B) a subsidiary of a foreign company and

6 the Secretary finds that—

7 (i) such subsidiary has in the past evi8 denced a substantial commitment to the

9 United States market through—

10 (I) investments in the United

11 States in long-term research, develop12 ment, and manufacturing (including

13 the manufacture of major components

14 and subassemblies); and

15 (II) significant contributions to

16 employment in the United States; and

17 (ii) the country or countries in which

18 such foreign company is incorporated or

19 organized, and, if appropriate, in which it

20 principally conducts its business, affords

21 reciprocal treatment to companies de22 scribed in subparagraph (A) comparable to

23 that afforded to such foreign company’s

24 subsidiary in the United States, as evi25 denced by—
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1 (I) providing comparable oppor2 tunities for companies described in

3 subparagraph (A) to participate in

4 Government sponsored research and

5 development similar to that authorized

6 under this Act;

7 (II) providing no barriers to com8 panies described in subparagraph (A)

9 with respect to local investment op10 portunities that are not provided to

11 foreign companies in the United

12 States; and

13 (III) providing adequate and ef14 fective protection for the intellectual

15 property rights of companies de16 scribed in subparagraph (A); and

17 (10) the term ‘‘antitrust laws’’ has the meaning

18 given it in section 1(a) of the Clayton Act (15

19 U.S.C. 12(a)), except that such term includes sec20 tions 2 through 6 of the National Cooperative Re21 search Act of 1984 (15 U.S.C. 4301 through 4305),

22 and includes section 5 of the Federal Trade Com23 mission Act to the extent that such section 5 applies

24 to unfair methods of competition.
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1 TITLE I—SPACE LAUNCH AND

2 LAUNCH SUPPORT FACILITIES

3 SEC. 101. INVENTORY OF FACILITIES.

4 (a) INVENTORY.—The Comptroller General shall con5 duct a comprehensive inventory of all space launch and

6 launch support facilities owned by the United States Gov7 ernment and shall identify such facilities that are surplus

8 to public and national security needs. This subsection shall

9 be carried out in cooperation with the Department of De10 fense, the National Aeronautics and Space Administra11 tion, the Department of Transportation, the Department

12 of Commerce, and the General Services Administration.

13 (b) REPORT.—Not later than 12 months after the

14 date of enactment of this Act, the Comptroller General

15 shall submit to the Congress a report containing the inven16 tory and identification required under subsection (a), in17 cluding an item by item justification of why each facility

18 is or is not identified as surplus. Portions of such report

19 may be classified and protected from public disclosure if

20 such classification is essential to protect national security.

21 (c) REFERRAL FOR SALE.—All facilities identified

22 under this section as surplus shall be referred to the Gen23 eral Services Administration for disposition.
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1 SEC. 102. COMMERCIAL SPACE CENTERS.

2 (a) DESIGNATION.—The Secretary shall establish cri3 teria for the designation of Commercial Space Centers.

4 The Secretary shall, in accordance with such criteria, des5 ignate appropriate launch facilities as Commercial Space

6 Centers.

7 (b) BENEFITS OF DESIGNATION.—Commercial Space

8 Centers, all property located therein, all space transpor9 tation services and space-related activities carried out

10 therein, and all products and services created, processed,

11 manufactured, or otherwise arising from such space trans12 portation services and space-related activities, including

13 such services and activities in space as are launched from

14 a Commercial Space Center and products created, manu15 factured, or processed in connection therewith, and pro16 ceeds from insurance policies insuring such services and

17 activities, shall be exempt from—

18 (1) all Federal corporate income and other

19 taxes; and

20 (2) all Federal excises, imposts, duties, and any

21 and all other Federal tariffs.

22 SEC. 103. PUBLIC LAND FOR NEW SPACE LAUNCH AND

23 LAUNCH SUPPORT FACILITIES.

24 (a) FACILITATION OF PROPOSALS.—The Secretary of

25 the Interior and the Secretary of Agriculture shall facili26 tate proposals by commercial providers, with or without
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1 the participation of State and local governments, to estab2 lish new space launch and launch support facilities on pub3 lic lands administered through their respective depart4 ments through sale, lease, grant of overflight and clear5 ance easements, or other transfer of such lands, and shall

6 ensure timely review and decision regarding such

7 proposals.

8 (b) LEASES.—Leases described in subsection (a)

9 shall be to commercial providers for periods of 30 years,

10 with options to extend for an additional 20 years. Parties

11 signing such a lease shall enjoy occupation and use of the

12 lands without charge for the first 10 years of the term

13 of the lease. The annual lease price for the remaining 20

14 years, and for any period of extension, of the lease shall

15 be based on fair market value at the time of the submis16 sion of the initial request for use of the land, except that

17 lands used for livestock grazing at the time of the signing

18 of a lease shall be leased at the rate charged for grazing

19 access.

20 (c) WILDERNESS, RECREATION, AND PARK AREAS.—

21 (1) Except as provided in paragraph (2), no wilderness

22 area, national recreation area, or national park, or any

23 part thereof, shall be transferred as described in sub24 section (a).
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1 (2) Overflight easements for extra-atmospheric flight

2 may be granted over such areas if the Secretary of Trans3 portation finds that danger to the general public is not

4 significantly increased thereby.

5 (d) NONCONTIGUOUS LAND PARCELS.—Land parcels

6 sold, leased, or otherwise made available under this section

7 need not be contiguous. Road and communication ease8 ments shall be granted wherever practical to link such

9 parcels.

10 (e) COMPATIBLE USES.—Proposers shall be encour11 aged to submit proposals compatible with—

12 (1) existing uses, including livestock grazing,

13 mining, and forest activities;

14 (2) scientific activities, including aircraft re15 search and test flights; and

16 (3) other space-related activities.

17 TITLE II—PURCHASE OF SPACE

18 TRANSPORTATION SERVICES

19 SEC. 201. SHORT TITLE.

20 This title may be cited as the ‘‘Space Transportation

21 Services Purchase Act of 1993’’.

22 SEC. 202. REQUIREMENT TO PROCURE COMMERCIAL

23 LAUNCH SERVICES.

24 Section 204 of the Launch Services Purchase Act of

25 1990 (42 U.S.C. 2465d) is amended to read as follows:
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1 ‘‘SEC. 204. REQUIREMENT TO PROCURE COMMERCIAL

2 LAUNCH SERVICES.

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

4 this section, the Federal Government shall purchase

5 launch services from commercial providers whenever such

6 services are required in the course of its activities.

7 ‘‘(b) EXCEPTIONS.—The Federal Government shall

8 not be required to purchase launch services as provided

9 in subsection (a) if, on a case by case basis the Adminis10 trator of the National Aeronautics and Space Administra11 tion (hereafter in this section referred to as the ‘Adminis12 trator’), or the Secretary of Defense, as the case may be,

13 determines that—

14 ‘‘(1) the payload requires the unique capabili15 ties of the space shuttle;

16 ‘‘(2) commercial launch services to meet specific

17 mission requirements are not reasonably available or

18 would not be reasonably available when required;

19 ‘‘(3) the use of commercial launch services

20 poses an unacceptable risk of loss of a unique sci21 entific opportunity; or

22 ‘‘(4) the payload serves national security or for23 eign policy purposes.

24 Any determination of such circumstances shall be made

25 by the Administrator or the Secretary of Defense and shall

26 not be delegated. The Administrator, or the Secretary of
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1 Defense, as the case may be, shall, within 30 days after

2 such determination, notify the Committee on Science,

3 Space, and Technology and the Committee on Armed

4 Services of the House of Representatives and the Commit5 tee on Commerce, Science, and Transportation of the Sen6 ate in writing of the determination and its rationale.

7 ‘‘(c) FEDERAL GOVERNMENT LAUNCH VEHICLES.—

8 Launch vehicles shall be acquired or owned by the Federal

9 Government only—

10 ‘‘(1) as required under circumstances described

11 in subsection (b); or

12 ‘‘(2) for conducting research and development

13 on, and testing of, launch technology.

14 ‘‘(d) PHASE-IN PERIOD.—Subsections (a) and (c)

15 shall not apply to launch services and launch vehicles for

16 which a purchase contract has been signed before the date

17 of enactment of this Act.

18 ‘‘(e) HISTORICAL PURPOSES.—This title shall not be

19 interpreted to prohibit the Federal Government from ac20 quiring, owning, or maintaining launch vehicles solely for

21 historical display purposes.’’.

22 SEC. 203. PURCHASE OF LAUNCH SERVICES.

23 Section 205 of the Launch Services Purchase Act of

24 1990 (42 U.S.C. 2465e) is amended to read as follows:
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1 ‘‘SEC. 205. PURCHASE OF LAUNCH SERVICES.

2 ‘‘(a) COMPETITIVE BIDDING.—(1) Contracts to pro3 vide launch services to the Federal Government under sec4 tion 204 shall be awarded subject to applicable Federal

5 law requiring full, fair, and open competition, consistent

6 with section 2304 of title 10, United States Code, and sec7 tion 311 of the National Aeronautics and Space Act of

8 1958.

9 ‘‘(2) Submission of cost or pricing data for the pur10 pose of supporting a bid or proposal or for the fulfillment

11 of a contract shall not be required of the bidders, except

12 in cases where only one credible bid meeting minimal tech13 nical standards as set forth in the original solicitation is

14 received.

15 ‘‘(b) SPECIFICATION SYSTEMS.—Reasonable per16 formance specifications, rather than Federal civilian or

17 military design or construction specifications, shall be

18 used to the maximum extent feasible to define require19 ments for a commercial provider bidding to provide launch

20 services. This subsection shall not preclude the Federal

21 Government from requiring compliance with applicable

22 safety standards.’’.

23 SEC. 204. COMMERCIAL SPACE LAUNCH ACT AMENDMENTS.

24 (a) AMENDMENTS.—The Commercial Space Launch

25 Act (49 U.S.C. App. 2601 et seq.) is amended—

26 (1) in section 4—
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1 (A) by inserting ‘‘from Earth’’ after ‘‘if

2 any,’’ in paragraph (2);

3 (B) by redesignating paragraphs (9)

4 through (12) as paragraphs (11) through (14),

5 respectively; and

6 (C) by inserting after paragraph (8) the

7 following new paragraphs:

8 ‘‘(9) ‘reenter’ and ‘reentry’ mean to return pur9 posefully, or attempt to return, a reentry vehicle and

10 payload, if any, from Earth orbit or outer space to

11 Earth;

12 ‘‘(10) ‘reentry vehicle’ means any vehicle de13 signed to return from Earth orbit or outer space to

14 Earth substantially intact;’’;

15 (2) in section 6(a), by inserting ‘‘, or reenter a

16 reentry vehicle,’’ after ‘‘operate a launch site’’ each

17 place it appears;

18 (3) in section 6(a) (2) and (3), by striking ‘‘sec19 tion 4(11)’’ each place it appears and inserting in

20 lieu thereof ‘‘section 4(12)’’;

21 (4) in section 6(a)(3)(A), by inserting ‘‘or re22 entry’’ after ‘‘such launch or operation’’;

23 (5) in section 6(a)(3), by inserting ‘‘, or reentry

24 of a reentry vehicle,’’ after ‘‘operation of a launch

25 site’’ each place it appears;
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1 (6) in section 6(b)(1)—

2 (A) by striking ‘‘launch license’’ and in3 serting in lieu thereof ‘‘license’’;

4 (B) by inserting ‘‘or reenter’’ after ‘‘shall

5 not launch’’;

6 (C) by inserting ‘‘or reentry’’ after ‘‘relate

7 to the launch’’; and

8 (D) by inserting ‘‘or reentered’’ after ‘‘to

9 be launched’’;

10 (7) in section 6(b)(2)—

11 (A) by inserting ‘‘or reentry’’ after ‘‘pre12 vent the launch’’;

13 (B) by striking ‘‘holder of a launch li14 cense’’ and inserting in lieu thereof ‘‘licensee’’;

15 and

16 (C) by inserting ‘‘or reentry’’ after ‘‘deter17 mines that the launch’’;

18 (8) in section 6(c)(1), by inserting ‘‘or reentry

19 of a reentry vehicle’’ after ‘‘operation of a launch

20 site’’;

21 (9) in section 7, by striking ‘‘both’’ and insert22 ing in lieu thereof ‘‘for reentering one or more re23 entry vehicles’’;

24 (10) in sections 8(a), 9(b), 11(a), 11(b),

25 12(a)(2)(B), and 12(b), by inserting ‘‘, or reentry of
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1 a reentry vehicle,’’ after ‘‘operation of a launch site’’

2 each place it appears;

3 (11) in section 8(b), by inserting ‘‘and the re4 entry of reentry vehicles,’’ after ‘‘operation of launch

5 sites,’’;

6 (12) in section 11(a), by inserting ‘‘or reentry’’

7 after ‘‘launch or operation’’;

8 (13) in section 12(a)(1), by inserting ‘‘or re9 entry’’ after ‘‘prevent the launch’’;

10 (14) in section 12(b), by inserting ‘‘or reentry’’

11 after ‘‘prevent the launch’’;

12 (15) in section 14(a)(1)—

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

14 ‘‘observers at any launch site’’; and

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

16 ‘‘assembly of a launch vehicle’’;

17 (16) in section 15(b)(4)(A)—

18 (A) by inserting ‘‘and reentries’’ after ‘‘en19 sure that the launches’’;

20 (B) by inserting ‘‘or reentry date commit21 ment’’ after ‘‘launch date commitment’’;

22 (C) by inserting ‘‘or reentry’’ after ‘‘ob23 tained for a launch’’;

24 (D) by inserting ‘‘, reentry sites,’’ after

25 ‘‘United States launch sites’’;
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1 (E) by inserting ‘‘or reentry site’’ after

2 ‘‘access to a launch site’’;

3 (F) by inserting ‘‘, or services related to a

4 reentry,’’ after ‘‘amount for launch services’’;

5 and

6 (G) by inserting ‘‘or reentry’’ after ‘‘the

7 scheduled launch’’;

8 (17) in section 15(b)(4)(B), by inserting ‘‘or re9 entry’’ after ‘‘prompt launching’’;

10 (18) in section 15(c), by inserting ‘‘or reentry’’

11 after ‘‘launch site’’;

12 (19) in section 16(a)(1) (A) and (B), by insert13 ing ‘‘or reentry’’ after ‘‘any particular launch’’ each

14 place it appears;

15 (20) in section 16(a)(1) (C) and (D), by insert16 ing ‘‘or a reentry’’ after ‘‘launch services’’ each place

17 it appears;

18 (21) in section 16(a)(2), by inserting ‘‘or re19 entry’’ after ‘‘launch services’’;

20 (22) in section 16(b)(1) and (4) (A) and (B),

21 by inserting ‘‘or reentry’’ after ‘‘particular launch’’

22 each place it appears;

23 (23) in section 17(b)(2)(A)—

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

25 ‘‘launch site,’’; and
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1 (B) by inserting ‘‘or reentry vehicle’’ after

2 ‘‘site of a launch vehicle’’;

3 (24) in section 21(a), by inserting ‘‘and re4 entry’’ after ‘‘approval of space launch’’;

5 (25) in section 21(b)—

6 (A) by inserting ‘‘, reentry vehicle,’’ after

7 ‘‘A launch vehicle’’; and

8 (B) by inserting ‘‘or reentry’’ after ‘‘the

9 launching’’;

10 (26) in section 21(c)(1)—

11 (A) by striking ‘‘or’’ in subparagraph (B);

12 (B) by redesignating subparagraph (C) as

13 subparagraph (D); and

14 (C) by inserting after subparagraph (B)

15 the following new subparagraph:

16 ‘‘(C) reentry of a reentry vehicle, or’’;

17 (27) in section 21(c)(2), by inserting ‘‘reentry,’’

18 after ‘‘launch,’’; and

19 (28) in section 22(a)—

20 (A) by striking ‘‘ending after the date of

21 enactment of this Act and before October 1,

22 1989’’; and

23 (B) by inserting ‘‘and reentries’’ after

24 ‘‘further commercial launches’’.
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1 (b) REPORT TO CONGRESS.—The Secretary of

2 Transportation shall submit to Congress an annual report

3 to accompany the President’s budget request which re4 views the performance of the regulatory activities and the

5 effectiveness of the Office of Commercial Space Transpor6 tation.

7 TITLE III—INTELLECTUAL

8 PROPERTY DISPOSITION

9 SEC. 301. RESEARCH UNDER CONTRACT WITH FEDERAL

10 GOVERNMENT.

11 Any commercial provider making an invention under

12 contract with the Federal Government shall have the same

13 rights with respect to such invention as would a small

14 business firm under chapter 38 of title 35, United States

15 Code.

16 SEC. 302. COOPERATIVE RESEARCH AND DEVELOPMENT

17 AGREEMENTS.

18 Section 12 of the Stevenson-Wydler Technology Inno19 vation Act of 1980 (15 U.S.C. 3710a) is amended—

20 (1) in subsection (a) by striking ‘‘may permit’’

21 and inserting in lieu thereof ‘‘shall permit, under au22 thority of this or any other appropriate Act,’’; and

23 (2) in subsection (d)(1) by inserting ‘‘intellec24 tual property,’’ after ‘‘equipment,’’ both places it

25 appears.
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1 TITLE IV—TAX INCENTIVES FOR

2 COMMERCIAL SPACE ACTIVI3 TIES

4 SEC. 401. SHORT TITLE.

5 This title may be cited as the ‘‘Space Business Incen6 tives Act of 1993’’.

7 SEC. 402. DEDUCTION FOR PURCHASE OF COMMERCIAL

8 SPACE CENTER STOCK.

9 (a) IN GENERAL.—Part VI of subchapter B of chap10 ter 1 of the Internal Revenue Code of 1986 (relating to

11 itemized deductions for individuals and corporations) is

12 amended by adding at the end thereof the following new

13 section:

14 ‘‘SEC. 197. DEDUCTION FOR PURCHASE OF COMMERCIAL

15 SPACE CENTER STOCK.

16 ‘‘(a) IN GENERAL.—At the election of the taxpayer,

17 there shall be allowed as a deduction the aggregate

18 amount paid during the taxable year for the purchase of

19 Commercial Space Center stock on the original issue of

20 such stock by a qualified issuer.

21 ‘‘(b) MAXIMUM DEDUCTION.—

22 ‘‘(1) IN GENERAL.—The maximum amount al23 lowed as a deduction under subsection (a) to a tax24 payer for the taxable year shall not exceed

25 $100,000.
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1 ‘‘(2) CONTROLLED GROUPS.—For purposes of

2 paragraph (1), the taxpayer and all persons who are

3 related persons with respect to the taxpayer shall be

4 treated as 1 person, and the $100,000 amount in

5 paragraph (1) shall be allocated among the taxpayer

6 and such persons in proportion to their respective

7 purchases of stock during the taxable year for which

8 the deduction is allowable by this section.

9 ‘‘(3) ALLOCATION OF DEDUCTION WHERE MORE

10 THAN $100,000 OF STOCK PURCHASED.—If the

11 amount of stock purchased by any person exceeds

12 the limitation under this subsection with respect to

13 such person, the deduction allowed under this sec14 tion shall be allocated pro rata among the stock so

15 purchased in accordance with the purchase price per

16 share.

17 ‘‘(c) DISPOSITIONS OF STOCK.—

18 ‘‘(1) GAIN TREATED AS ORDINARY INCOME.—If

19 any Commercial Space Center stock with respect to

20 which a deduction was allowed under this section is

21 disposed of by the taxpayer, then the lesser of—

22 ‘‘(A) the excess of—

23 ‘‘(i)(I) in the case of a sale or ex24 change, the amount realized, or
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1 ‘‘(II) in the case of any other disposi2 tion, the fair market value of the stock,

3 over

4 ‘‘(ii) the adjusted basis of such stock,

5 or

6 ‘‘(B) the amount of the deduction allowed

7 under this section with respect to such stock,

8 shall be treated as ordinary income. Such gain shall

9 be recognized notwithstanding any other provision of

10 this subtitle.

11 ‘‘(2) INTEREST CHARGED IF DISPOSITION

12 WITHIN 3 YEARS OF PURCHASE.—

13 ‘‘(A) IN GENERAL.—If any Commercial

14 Space Center stock is disposed of before the

15 end of the 3-year period beginning on the date

16 such stock was purchased by the taxpayer, the

17 tax imposed by this chapter for the taxable year

18 in which such disposition occurs shall be in19 creased by the Commercial Space Center stock

20 recapture amount.

21 ‘‘(B) COMMERCIAL SPACE CENTER STOCK

22 RECAPTURE AMOUNT.—For purposes of sub23 paragraph (A), the term ‘Commercial Space

24 Center stock recapture amount’ means an

25 amount equal to the amount of interest (deter-
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1 mined at the underpayment rate applicable

2 under section 6621) which would accrue—

3 ‘‘(i) during the period beginning on

4 the date such stock was purchased by the

5 taxpayer and ending on the date such

6 stock was disposed of by the taxpayer,

7 ‘‘(ii) on the aggregate decrease in tax

8 of the taxpayer resulting from the deduc9 tion allowed under this section with respect

10 to the stock so disposed of.

11 ‘‘(d) TREATMENT WHERE ISSUER CEASES TO BE

12 QUALIFIED.—

13 ‘‘(1) IN GENERAL.—If—

14 ‘‘(A) any qualified issuer with respect to

15 the stock of which any taxpayer has made an

16 election under this section ceases to meet the

17 requirements of subsection (e)(2)(A), and

18 ‘‘(B) such cessation occurs at any time be19 fore the close of the 5th taxable year ending

20 after the date such stock was issued,

21 the tax treatment described in paragraph (2) shall

22 apply to the taxable year of the taxpayer in which

23 such cessation occurs.
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1 ‘‘(2) TAX TREATMENT OF TAXPAYER.—The tax

2 treatment described in this paragraph for any tax3 able year is—

4 ‘‘(A) the taxpayer shall include in income

5 as ordinary income the amount of the deduction

6 allowed under this section with respect to such

7 stock,

8 ‘‘(B) the tax imposed by this chapter for

9 such taxable year shall be increased by an

10 amount equal to the amount of interest (deter11 mined at the underpayment rate applicable

12 under section 6621) which would accrue—

13 ‘‘(i) during the period beginning on

14 the date such stock was purchased by the

15 taxpayer and ending on the disqualification

16 date,

17 ‘‘(ii) on the aggregate decrease in tax

18 of the taxpayer resulting from the deduc19 tion allowed under this section with respect

20 to the stock.

21 ‘‘(3) DISQUALIFICATION DATE.—For purposes

22 of paragraph (2), the term ‘disqualification date’

23 means the last day of the taxable year of the quali24 fied issuer in which the requirements of subsection

25 (e)(2)(A) ceased to be met.
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1 ‘‘(4) EXCEPTION FOR SMALL INVESTORS.—In

2 the case of an individual, paragraph (1) shall not

3 apply if, on the disqualification date with respect to

4 any qualified issuer, the aggregate of the deductions

5 allowed to the taxpayer under this section with re6 spect to stock issued by such issuer does not exceed

7 $5,000 ($10,000 in the case of a joint return).

8 ‘‘(e) DEFINITIONS.—For purposes of this section—

9 ‘‘(1) COMMERCIAL SPACE CENTER STOCK.—The

10 term ‘Commercial Space Center stock’ means com11 mon stock issued by a qualified issuer but only if the

12 proceeds of such issue are used by such issuer to es13 tablish or operate a Commercial Space Center.

14 ‘‘(2) QUALIFIED ISSUER.—The term ‘qualified

15 issuer’ means any corporation which, at the time of

16 issuance of the stock involved is conducting a busi17 ness at least 75 percent of the gross receipts of

18 which for the taxable year are attributable to—

19 ‘‘(A) operations within a Commercial

20 Space Center, or

21 ‘‘(B) the establishment or operation of a

22 Commercial Space Center,

23 in the active conduct of a trade or business.

24 ‘‘(3) RELATED PERSON.—A person is a related

25 person to another person if—
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1 ‘‘(A) such persons are treated as a single

2 employer under subsections (a) and (b) of sec3 tion 52, or

4 ‘‘(B) in the case of individuals, such per5 sons are husband and wife.

6 ‘‘(f) SPECIAL RULES.—

7 ‘‘(1) AMOUNT PAID AFTER CLOSE OF TAXABLE

8 YEAR.—An amount paid after the close of the tax9 able year for the purchase of Commercial Space

10 Center stock shall be treated for purposes of sub11 section (a) as paid during such year if—

12 ‘‘(A) such amount is so paid not later than

13 the time prescribed by law for filing the return

14 for such taxable year (including extensions

15 thereof), and

16 ‘‘(B) the taxpayer was under a binding

17 contract as of the close of such taxable year to

18 purchase such stock.

19 ‘‘(2) LIMITATION ON AMOUNT OF DEDUC20 TION.—If—

21 ‘‘(A) any Commercial Space Center stock

22 is issued in exchange for property,

23 ‘‘(B) the basis of such stock in the hands

24 of the taxpayer is determined by reference to

25 the basis of such property, and
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1 ‘‘(C) the adjusted basis (for determining

2 gain) of such property immediately before the

3 exchange exceeded its fair market value at such

4 time,

5 then the deduction under this section, and such ad6 justed basis, shall both be reduced by the excess de7 scribed in subparagraph (C).

8 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub9 title, if a deduction is allowed under this section with re10 spect to the purchase of any stock, the basis of such stock

11 (without regard to this subsection) shall be reduced by the

12 amount of the deduction allowed with respect to the pur13 chase of such stock.

14 ‘‘(h) APPLICATION OF SECTION.—This section shall

15 apply only to stock acquired after December 31, 1992, and

16 before January 1, 2008.’’

17 (b) TECHNICAL AMENDMENT.—Subsection (a) of

18 section 1016 of such Code (relating to adjustments to

19 basis) is amended by striking out ‘‘and’’ at the end of

20 paragraph (23), by striking out the period at the end of

21 paragraph (24) and inserting in lieu thereof ‘‘, and’’, and

22 by adding at the end thereof the following new paragraph:

23 ‘‘(25) to the extent provided in section 197(g),

24 in the case of stock with respect to which a deduc25 tion was allowed under section 197.’’
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1 (c) CLERICAL AMENDMENT.—The table of sections

2 for part VI of subchapter B of chapter 1 of such Code

3 is amended by adding at the end thereof the following new

4 item:

‘‘Sec. 197. Deduction for purchase of Commercial Space Center

stock.’’

5 (d) EFFECTIVE DATE.—The amendments made by

6 this section shall apply to stock purchased after December

7 31, 1992.

8 SEC. 403. EXCLUSION OF GAIN ON SALE OF STOCK OF COR9 PORATION SUBSTANTIALLY ENGAGED IN

10 SPACE-RELATED ACTIVITIES.

11 (a) IN GENERAL.—Part III of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 (relating to

13 items specifically excluded from gross income) is amended

14 by redesignating section 137 as section 138 and by insert15 ing after section 136 the following new section:

16 ‘‘SEC. 137. GAIN ON SPACE CORPORATION STOCK.

17 ‘‘(a) GENERAL RULE.—Gross income shall not in18 clude gain on the sale or exchange of space corporation

19 stock.

20 ‘‘(b) LIMITATIONS.—

21 ‘‘(1) MAXIMUM DOLLAR AMOUNT.—

22 ‘‘(A) IN GENERAL.—The maximum

23 amount excluded under subsection (a) to a tax-
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1 payer for the taxable year shall not exceed

2 $100,000.

3 ‘‘(B) CONTROLLED GROUPS.—For pur4 poses of subparagraph (A), the taxpayer and all

5 persons who are related persons (as defined in

6 section 197(c)(3)) with respect to the taxpayer

7 shall be treated as 1 person, and the $100,000

8 amount in subparagraph (A) shall be allocated

9 among the taxpayer and such persons in pro10 portion to their respective sales and exchanges

11 of stock during the calendar year in which the

12 taxable year of the taxpayer begins.

13 ‘‘(2) EXCLUDED GAIN MUST BE LONG-TERM

14 CAPITAL GAIN.—Subsection (a) shall not apply to

15 any gain other than long-term capital gain.

16 ‘‘(c) SPACE CORPORATION STOCK.—

17 ‘‘(1) IN GENERAL.—The term ‘space corpora18 tion stock’ means common stock acquired by the tax19 payer on its original issue by a space corporation.

20 ‘‘(2) SPACE CORPORATION.—The term ‘space

21 corporation’ means any corporation which, during

22 each of its 3 taxable years ending before the date of

23 the sale or exchange by the taxpayer, derived at

24 least 75 percent of its gross receipts of from the ac25 tive conduct of a trade or business involving the pro-
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1 viding of space-related products or services. For pur2 poses of the preceding sentence, gross receipts at3 tributable to operations within a Commercial Space

4 Center, or to the establishment or operation of a

5 Commercial Space Center, shall not be taken into

6 account.

7 ‘‘(d) APPLICATION OF SECTION.—This section shall

8 apply only to stock acquired after December 31, 1992, and

9 before January 1, 2008.’’

10 (b) CLERICAL AMENDMENT.—The table of sections

11 for such part III is amended by striking the last item and

12 inserting the following new item:

‘‘Sec. 137. Gain on space corporation stock.’’

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to stock purchased after December

15 31, 1992.

16 SEC. 404. TREATMENT OF BONDS TO FINANCE SPACE

17 LAUNCH AND LAUNCH SUPPORT FACILITIES.

18 (a) IN GENERAL.—Subsection (a) of section 142 of

19 the Internal Revenue Code of 1986 (defining exempt facil20 ity bond) is amended by striking ‘‘or’’ at the end of para21 graph (10), by striking the period at the end of paragraph

22 (11) and inserting ‘‘, or’’, and by adding at the end thereof

23 the following:

24 ‘‘(12) space launch and launch support facili25 ties.
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1 Paragraph (12) shall not apply to any bond issued after

2 December 31, 2007.’’

3 (b) SPACE LAUNCH AND LAUNCH SUPPORT FACILI4 TIES.—Section 142 of such Code is amended by adding

5 at the end thereof the following new subsection:

6 ‘‘(j) SPACE LAUNCH AND LAUNCH SUPPORT FACILI7 TIES.—For purposes of subsection (a)(12), the term

8 ‘space launch and launch support facilities’ means—

9 ‘‘(1) all facilities, equipment, and real property

10 used to prepare space transportation vehicles and

11 their payloads for transportation to, from, or within

12 outer space, or in suborbital trajectory or to launch

13 such vehicles, and

14 ‘‘(2) all facilities, equipment, and real property

15 used to conduct research and development, manufac16 ture, process, and service space transportation vehi17 cles and their payloads.

18 For purposes of the preceding sentence, the terms ‘space

19 transportation vehicles’ and ‘payloads’ have the respective

20 meanings given such terms by section 3 of the Omnibus

21 Space Commercialization Act of 1993.’’

22 (c) EXCEPTION FROM VOLUME CAP.—Paragraph (3)

23 of section 146(g) of such Code is amended by striking ‘‘or

24 (2)’’ and inserting ‘‘, (2), or (12)’’ and by inserting ‘‘and
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1 space launch and launch support facilities’’ after

2 ‘‘wharves’’.

3 (d) CERTAIN ADDITIONAL REQUIREMENTS NOT TO

4 APPLY TO SPACE LAUNCH AND LAUNCH SUPPORT FA5 CILITIES BONDS.—

6 (1) Subsection (h) of section 147 of such Code

7 is amended by adding at the end thereof the follow8 ing new paragraph:

9 ‘‘(3) SPACE LAUNCH AND LAUNCH SUPPORT

10 FACILITIES BONDS.—Subsections (a), (b), (c), and

11 (d) shall not apply to any exempt facility bond de12 scribed in section 142(a)(12).’’

13 (2) The heading for subsection (h) of section

14 147 of such Code is amended by striking ‘‘AND

15 QUALIFIED 501(c)(3) BONDS’’ and inserting

16 ‘‘QUALIFIED 501(c)(3) BONDS, AND SPACE LAUNCH

17 AND LAUNCH SUPPORT FACILITIES BONDS’’.

18 (e) FEDERAL GUARANTEED SPACE LAUNCH AND

19 LAUNCH SUPPORT FACILITIES BONDS PERMITTED.—

20 Paragraph (3) of section 149(b) of such Code is amended

21 by adding at the end thereof the following new subpara22 graph:

23 ‘‘(E) EXCEPTION FOR SPACE LAUNCH AND

24 LAUNCH SUPPORT FACILITIES BONDS.—Para25 graph (1) shall not apply to any exempt facility
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1 bond described in section 142(a)(12) in situa2 tions where the guarantee of the United States

3 (or any agency or instrumentality thereof) is

4 the result of payment of rent, user fees, or

5 other charges by the United States (or any

6 agency or instrumentality thereof) for the use

7 of a facility financed with such a bond.’’

8 (f) EXCEPTION FROM ADVANCE REFUNDING

9 RULES.—Paragraph (2) of section 149(d) of such Code

10 is amended by striking ‘‘bond).’’ and inserting ‘‘bond or

11 any exempt facility bond described in section

12 142(a)(12)).’’

13 (g) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to obligations issued after the date

15 of the enactment of this Act.

16 SEC. 405. SPACE MANUFACTURING INCENTIVE.

17 (a) IN GENERAL.—Part III of subchapter B of chap18 ter 1 of the Internal Revenue Code of 1986 (relating to

19 items specifically excluded from gross income) is amended

20 by inserting after section 137 the following new section:

21 ‘‘SEC. 138. SPACE MANUFACTURING INCOME.

22 ‘‘(a) GENERAL RULE.—Gross income shall not in23 clude space manufacturing income.
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1 ‘‘(b) SPACE MANUFACTURING INCOME.—For pur2 poses of this section, the term ‘space manufacturing in3 come’ means—

4 ‘‘(1) income derived from the commercial sale

5 of any product which is manufactured in outer space

6 and returned to Earth, and

7 ‘‘(2) income of an individual attributable to

8 services performed in outer space by such individual

9 in a commercial space activity.

10 ‘‘(c) EXCLUSION FROM TARIFFS, ETC.—Any product

11 which is manufactured in outer space and returned to

12 Earth shall be exempt from all Federal excises, imposts,

13 and duties and any other Federal tariffs.

14 ‘‘(d) PHASEOUT OF BENEFITS.—In the case of a tax15 able year beginning after December 31, 2022, the amount

16 excluded under subsection (a) shall be reduced (but not

17 below zero) by x/20th’s of the amount excludable without

18 regard to this subsection, where ‘x’ is the number of years

19 such taxable year is after the last taxable year beginning

20 before January 1, 2023. A similar rule shall apply to the

21 benefits under subsection (c).’’

22 (b) CLERICAL AMENDMENT.—The table of sections

23 for such part III is amended by adding at the end the

24 following new items:

‘‘Sec. 138. Space manufacturing income.

‘‘Sec. 139. Cross references to other Acts.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1992.

4 SEC. 406. STATE TAX BENEFITS FOR COMMERCIAL SPACE

5 ACTIVITIES TO BE ENCOURAGED.

6 The President shall encourage State and local govern7 ments to offer tax and other incentives to encourage com8 mercial space activities.

9 TITLE V—MISCELLANEOUS

10 SEC. 501. ANTITRUST EXEMPTIONS.

11 (a) STANDING TO CONDUCT CERTAIN LITIGATION.—

12 Notwithstanding sections 4 and 4C of the Clayton Act (15

13 U.S.C. 15 and 15C) and section 4 (a) and (b) of the Na14 tional Cooperative Research Act of 1984 (15 U.S.C. 4303

15 (a) and (b)), standing to conduct litigation arising from

16 causes of action under such Acts arising out of activities

17 carried out under this Act is reserved to the Department

18 of Justice under the direction of the Attorney General and

19 the Federal Trade Commission.

20 (b) LIMITATION ON RELIEF.—Notwithstanding sec21 tion 4(a) of the Clayton Act (15 U.S.C. 15(a)) and section

22 4 of the National Cooperative Research Act of 1984 (15

23 U.S.C. 4303), and in lieu of the relief specified in such

24 sections, the sole relief available to the United States act25 ing on its own behalf or on the behalf of any State or
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1 persons, in causes of action under such Acts arising out

2 of activities carried out under this Act, shall be injunctive

3 relief.

4 SEC. 502. EVIDENCE.

5 In any action against a commercial provider arising

6 in connection with activities carried out under this Act,

7 evidence of the failure of such commercial provider to fol8 low military specifications or National Aeronautics and

9 Space Administration specifications shall not, in and of

10 itself, constitute proof of negligence on the part of a com11 mercial provider, except where such specifications are spe12 cifically required by contract or in cases concerning emer13 gency flight termination (range safety) equipment when

14 flights are made from launch sites owned by the Federal

15 Government.

16 SEC. 503. REPORT ON LAWS THAT AFFECT SPACE COMMER17 CIALIZATION.

18 Within one year after the date of enactment of this

19 Act, the Director of the National Space Council, in co20 operation with the Director of the Office of Space Com21 merce, shall report to the Committee on Science, Space,

22 and Technology of the House of Representatives and the

23 Committee on Commerce, Science, and Transportation of

24 the Senate on the status of laws and treaties in the United

25 States and internationally that affect the ability of the
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1 United States to commercially exploit space. Such report

2 shall include recommendations for any changes to such

3 laws or treaties that may be desirable.

4 SEC. 504. OFFICE OF SPACE COMMERCE.

5 (a) ESTABLISHMENT.—There is established within

6 the Department of Commerce an Office of Space Com7 merce.

8 (b) FUNCTIONS.—The Office of Space Commerce

9 shall be the principal unit for the coordination of space10 related issues, programs, and initiatives within the De11 partment of Commerce. The Office’s primary responsibil12 ities shall include—

13 (1) promoting private sector investment in

14 space activities by collecting, analyzing, and dissemi15 nating information on space markets, and conduct16 ing workshops and seminars to increase awareness

17 of commercial space opportunities;

18 (2) assisting commercial space companies in

19 their efforts to do business with the United States

20 Government, and acting as an industry advocate

21 within the executive branch to ensure that the Fed22 eral Government meets its space-related require23 ment, to the fullest extent feasible, with commer24 cially available space goods and services;
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1 (3) ensuring that the United States Govern2 ment does not compete with the private sector in the

3 provision of space hardware and services otherwise

4 available from the private sector;

5 (4) promoting the export of space-related goods

6 and services;

7 (5) representing the Department of Commerce

8 in the development of United States policies and in

9 negotiations with foreign countries to ensure free

10 and fair trade internationally in the area of space

11 commerce;

12 (6) seeking the removal of legal, policy, and in13 stitutional impediments to space commerce; and

14 (7) licensing private sector parties to operate

15 private remote sensing space systems and supporting

16 the private sector’s role in the commercial develop17 ment of Landsat remote sensing data distribution.

18 SEC. 505. SPACE-RELATED RESEARCH.

19 (a) REQUIRED REPORTS.—Each Federal agency or

20 department covered by this section shall, within 1 year

21 after the appropriation of the amount that brings the

22 agency or department under the coverage of this section,

23 submit a report to Congress containing a plan for activi24 ties to support space-related research appropriate to the

25 mission of such agency or department. Once every 2 years
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1 after the submission of such report, the agency or depart2 ment shall report to Congress on progress made in imple3 menting such plan, together with suggestions for any pol4 icy or legislative changes necessary to enhance the agen5 cy’s or department’s ability to implement that plan.

6 (b) COVERAGE.—A Federal agency or department

7 shall be covered by this section if it has an annual research

8 and development budget, for a fiscal year ending after the

9 date of enactment of this Act, greater than $100,000,000.

10 SEC. 506. COMMERCIAL ADVERTISING.

11 To the extent that safety is not compromised, the

12 United States shall accommodate commercial advertis13 ing—

14 (1) by its contractors or their assigns providing

15 space transportation vehicles, space infrastructure,

16 payloads, or space launch or launch support facili17 ties; or

18 (2) by persons who are engaged in activities

19 which reuse or recycle space transportation vehicles,

20 space infrastructure, payloads, or space launch or

21 launch support facilities.

22 SEC. 507. PURCHASE OF SPACE SCIENCE DATA.

23 (a) IN GENERAL.—To the maximum extent possible,

24 the National Aeronautics and Space Administration shall

25 purchase from the private sector space science data. Ex-
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1 amples of such data include scientific data concerning the

2 elemental and mineralogical resources of the moon and the

3 planets, Earth environmental data obtained through re4 mote sensing observations, and solar storm monitoring.

5 (b) COMPETITIVE BIDDING.—(1) Contracts for the

6 purchase of space science data shall be awarded in a proc7 ess of full, fair, and open competitive bidding among

8 United States persons.

9 (2) Submission of cost data either for the purposes

10 of supporting the bid or for the fulfillment of the contract

11 shall not be required of bidders.

12 (3) Conformance with military specifications

13 (Milspec) or National Aeronautics and Space Administra14 tion specification systems with respect to the design, con15 struction, or operation of equipment used in obtaining

16 space science data for the Federal Government shall not

17 be a requirement for a commercial provider bidding to pro18 vide such services.

19 (4) Contracts under this section shall not provide for

20 the Federal Government to obtain ownership of data not

21 specifically sought by the Federal Government.

22 SEC. 508. PROCUREMENT.

23 (a) PROCUREMENT DEMONSTRATION PROGRAM.—

24 (1) IN GENERAL.—The Administrator shall es25 tablish within the Office of Advanced Concepts and
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1 Technology a program of expedited technology pro2 curement for the purpose of demonstrating how in3 novative technology concepts can rapidly be brought

4 to bear upon space missions of the National Aero5 nautics and Space Administration.

6 (2) PROCEDURES AND EVALUATION.—The Ad7 ministrator shall establish procedures for actively

8 seeking from nongovernment persons innovative

9 technology concepts relating to the provision of

10 space hardware, technology, or services to the Na11 tional Aeronautics and Space Administration, and

12 for the evaluation of such concepts by the National

13 Aeronautics and Space Administration’s Advisory

14 Council against mission requirements.

15 (3) REQUIREMENT.—At least 10 percent of

16 amounts authorized to be appropriated for Commer17 cial Programs, Research and Development, for each

18 fiscal year shall be used for innovative technology

19 procurements that are determined under paragraph

20 (2) to meet mission requirements.

21 (4) SPECIAL AUTHORITY.—Notwithstanding

22 any other provision of Federal law or regulation, in

23 order to carry out this subsection the Administrator

24 shall recruit and hire for limited term appointments

25 persons from the nongovernmental sector with spe-
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1 cial expertise and experience related to the innova2 tive technology concepts with respect to which pro3 curements are made under this subsection. Further,

4 in carrying out this subsection the Administrator

5 may waive—

6 (A) Federal Acquisition Regulations;

7 (B) Military Specifications; and

8 (C) cost data requirements.

9 (b) REPORT.—The Office of Space Commerce shall,

10 within 6 months after the date of enactment of this Act,

11 submit a report to the President and the Congress con12 taining recommendations for procuring space infrastruc13 ture, space launch and launch support facilities, and pay14 loads using proof of concept methods and unsolicited pro15 posals. In preparing such report, the Office of Space Com16 merce shall consult with appropriate persons in the private

17 sector.

18 SEC. 509. LAND REMOTE SENSING POLICY ACT OF 1992

19 AMENDMENTS.

20 Section 105(a) of the Land Remote Sensing Policy

21 Act of 1992 is amended—

22 (1) by striking paragraphs (1), (3), and (4);

23 (2) by redesignating paragraphs (2), (5), and

24 (6) as paragraphs (3), (4), and (7), respectively;
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1 (3) by inserting before paragraph (3), as so re2 designated, the following new paragraphs:

3 ‘‘(1) define the roles and responsibilities of var4 ious public and private sector entities that would be

5 involved in the acquisition, processing, distribution,

6 and archiving of Landsat 7 data and in the oper7 ations of the Landsat 7 spacecraft;

8 ‘‘(2) ensure that unenhanced data shall be pro9 vided to the United States Government and its affili10 ated users at the cost of fulfilling user requests, and

11 that such data may be reproduced and disseminated

12 to other Federal agencies and affiliated users, on the

13 condition that such unenhanced data is used solely

14 for noncommercial purposes;’’;

15 (4) in paragraph (4), as so redesignated by

16 paragraph (2) of this section, by striking ‘‘and’’ at

17 the end; and

18 (5) by inserting after such paragraph (4) the

19 following new paragraphs:

20 ‘‘(5) ensure that instructional data sets, se21 lected from the Landsat data archives, shall be made

22 available to educational institutions exclusively for

23 noncommercial, educational purposes at the cost of

24 fulfilling user requests;
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1 ‘‘(6) ensure that the proposed data distribution

2 system contributes to the goal of the commercializa3 tion of land remote sensing; and’’.

4 SEC. 510. LAND REMOTE SENSING FOR AGRICULTURAL

5 MANAGEMENT.

6 (a) FINDINGS.—The Congress finds that—

7 (1) the use of land remote sensing data is po8 tentially a valuable resource to the agricultural com9 munity;

10 (2) land remote sensing data can inform the ag11 ricultural community as to the condition of crops

12 and the land which sustains those crops;

13 (3) land remote sensing data can be useful for

14 farmers engaged in prescription farming;

15 (4) land remote sensing data on agricultural

16 conditions can be valuable, when received on a time17 ly basis; and

18 (5) the National Aeronautics and Space Admin19 istration, using the expertise of the Earth Observa20 tions Commercialization Applications Program, and

21 the Department of Agriculture should work in tan22 dem to aid farmers to obtain data which would be

23 conducive to sound agricultural management and

24 greater crop yields.
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1 (b) DEFINITIONS.—For the purposes of this sec2 tion—

3 (1) the term ‘‘Administrator’’ means the Ad4 ministrator of the National Aeronautics and Space

5 Administration;

6 (2) the term ‘‘prescription farming’’ means a

7 method by which farmers can regulate the applica8 tion rates of pesticides, nutrients, and water, among

9 other inputs, to farmlands in the exact amount nec10 essary to maximize crop yield, without harming the

11 environment; and

12 (3) the term ‘‘data voucher’’ means a grant to

13 enable farmers to purchase land remote sensing in14 formation from commercial entities.

15 (c) DATA VOUCHERS.—The Secretary of Agriculture

16 and the Administrator shall jointly develop a mechanism

17 to provide farmers with data vouchers. Data vouchers

18 shall be distributed to farmers through the Agricultural

19 Extension Service, which shall contract with commercial

20 entities to provide farmers engaged in prescription farm21 ing with timely data on crop conditions, fertilization and

22 irrigation needs, pest infiltration, and soil conditions.

23 (d) TRAINING.—The Secretary of Agriculture and the

24 Administrator shall jointly establish a program to train
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1 farmers in the use and interpretation of land remote sens2 ing data for prescription farming.

3 (e) AUTHORIZATION.—Funds necessary for carrying

4 out this section shall be derived from funds otherwise au5 thorized for the Agricultural Extension Service.

6 (f) SUNSET.—The provisions of this section shall ex7 pire 5 years after the date of enactment of this Act.

8 SEC. 511. SUNSET.

9 Sections 102(b), 501, 502, 503, and 505 shall expire

10 15 years after the date of enactment of this Act.

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