I
103D CONGRESS
2D SESSION
H. R. 4482
To establish a non-Federal, for-profit Launch Services Corporation for provid-
ing space launch services to the Federal Government and other domestic
and foreign customers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 24, 1994
Mr. HEFLEY (for himself, Mr. WALKER, and Mr. ROHRABACHER) introduced
the following bill; which was referred to the Committee on Science, Space,
and Technology
A BILL
To establish a non-Federal, for-profit Launch Services Cor-
poration for providing space launch services to the Fed-
eral Government and other domestic and foreign cus-
tomers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Launch Services Cor-
poration Act of 1994’’.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘Corporation’’ means the Launch
Services Corporation created under section 4 of this
Act; and
(2) the terms ‘‘launch’’, ‘‘launch property’’,
‘‘launch services’’, ‘‘launch site’’, and ‘‘launch vehi-
cle’’ have the meaning given such terms under sec-
tion 4 of the Commercial Space Launch Act (49
U.S.C. App. 2603), except that the provisions of this
Act shall not apply to activities relating to suborbital
trajectories.
SEC. 3. FEDERAL RESPONSIBILITIES.
(a) PRESIDENT.—The President shall—
(1) coordinate the activities of Federal agencies
with space launch responsibilities, so as to ensure
that there is full and effective compliance at all
times with this Act;
(2) ensure that timely treaties, trade agree-
ments, and other appropriate arrangements are
made, and appropriate regulations are issued, to en-
able foreign customers to obtain launch services
from the Corporation and to otherwise participate in
the launch services system established pursuant to
this Act; and
(3) after consultation with appropriate Federal
agencies, issue a statement of the technical require-
ments of the Federal Government for the system re-
ferred to in paragraph (2).
(b) RESEARCH AND DEVELOPMENT.—The National
Aeronautics and Space Administration and the Depart-
ment of Defense shall cooperate with the Corporation on
research and development related to the purposes of the
Corporation.
(c) FEDERAL AGENCIES IN GENERAL.—The Federal
Government shall—
(1) procure, to the maximum extent feasible,
needed launch services from the Corporation;
(2) pay fair market value for services provided
to the Federal Government by the Corporation;
(3) extend to the Corporation first priority for
access to launch property and launch sites in a mu-
tually agreeable manner;
(4) furnish range safety for launches from Gov-
ernment-owned facilities; and
(5) to the extent feasible, furnish other services
to the Corporation as may be required in connection
with the establishment and operation of the Cor-
poration.
SEC. 4. LAUNCH SERVICES CORPORATION.
(a) CREATION.—There is authorized to be created a
Launch Services Corporation, a for-profit corporation
which shall not be an agency or establishment of the
United States Government and which shall be incor-
porated under the laws of a State of the United States.
(b) PURPOSES.—(1) The purposes of the Corporation
shall be—
(A) to broaden and speed the economic use of
space;
(B) to enhance the economic competitiveness of
the United States launch services industry and all
industrial, commercial, and financial businesses re-
lated thereto;
(C) to enhance national security;
(D) to serve the launch needs of—
(i) the Federal Government;
(ii) private sector customers in the United
States; and
(iii) appropriate foreign customers; and
(E) to remain a viable and competitive corpora-
tion.
(2) It shall not be a purpose of the Corporation to
construct launch vehicles.
(c) PROCESS
OF ORGANIZATION.—The President
shall, as expeditiously as possible, appoint incorporators,
by and with the advice and consent of the Senate, who
shall serve as the initial board of directors of the Corpora-
tion until the first annual meeting of stockholders or until
their successors are elected and appointed under sub-
section (d) and qualified. Such incorporators shall arrange
for an initial stock offering and shall take whatever other
actions are necessary to establish the Corporation, includ-
ing the filing of articles of incorporation, subject to the
approval of the President.
(d) DIRECTORS AND OFFICERS.—
(1) DIRECTORS.—The Corporation shall have a
board of directors consisting of 15 individuals who
are citizens of the United States, of whom one shall
be elected annually by the board to serve as chair-
man. Three members of the board shall be appointed
by the President, by and with the advice and consent
of the Senate, for terms of three years or until their
successors have been appointed and qualified, except
that one of the members first appointed under this
sentence shall be appointed to a term of one year,
and one of such members shall be appointed to a
term of two years. Any member appointed to fill a
vacancy shall be appointed only for the unexpired
term of the director being replaced. The remaining
12 members of the board shall be elected annually
by the stockholders.
(2) OFFICERS.—The Corporation shall have
such officers as may be named and appointed by the
board, at rates of compensation fixed by the board,
and serving at the pleasure of the board. No individ-
ual other than a citizen of the United States may be
an officer of the Corporation. No officer of the Cor-
poration shall receive any salary from any source
other than the Corporation while employed by the
Corporation.
(e) FINANCING.—
(1) STOCK.—The Corporation may issue and
have outstanding, in such amounts as it shall deter-
mine, shares of capital stock, without par value,
which shall carry voting rights and be eligible for
dividends. The stock shall be sold in a manner to en-
courage the widest distribution to the public. No
company, including any company controlling, con-
trolled by, or under common control with such com-
pany, may hold more than 15 percent of the capital
stock of the Corporation.
(2) ADDITIONAL INSTRUMENTS.—The Corpora-
tion may issue, in addition to the stock authorized
by paragraph (1), nonvoting securities, bonds, de-
bentures, and other certificates of indebtedness.
(f) POWERS.—In order to achieve its purposes, the
Corporation may—
(1) plan, initiate, own, manage, and operate it-
self, or in conjunction with other business entities,
a commercial launch services system;
(2) furnish, for hire, launch services to public
and private entities of the United States and, except
as otherwise prohibited by law, to foreign customers;
(3) own and operate launch property, launch
sites, and one or more types of launch vehicle, pro-
vide or contract for range safety operations at those
launch sites, and provide or contract for any other
such services as may be required to carry out its
purposes; and
(4) conduct appropriate research and develop-
ment.
(g) RECOUPMENT.—Not later than 180 days after
the date of enactment of this Act, the President shall es-
tablish procedures for the repayment by the Corporation
to the Federal Government of an amount equal to the
amount of Federal funding that has been provided to the
Corporation.
SEC. 5. FOREIGN BUSINESS NEGOTIATIONS.
Whenever the Corporation shall enter into business
negotiations with respect to launch property, operations,