IB 
Union Calendar No. 247
108TH CONGRESS 
2D SESSION 
H. R. 3752
[Report No. 108–429] 
To promote the development of the emerging commercial human space flight 
industry, to extend the liability indemnification regime for the commercial 
space transportation industry, to authorize appropriations for the Office 
of the Associate Administrator for Commercial Space Transportation, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 3, 2004
Mr. ROHRABACHER (for himself, Mr. BOEHLERT, Mr. HALL, Mr. GORDON, 
and Mr. LAMPSON) introduced the following bill; which was referred to 
the Committee on Science 
MARCH 1, 2004
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To promote the development of the emerging commercial 
human spaceflight industry, to extend the liability indem-
nification regime for the commercial space transportation 
industry, to authorize appropriations for the Office of 
the Associate Administrator for Commercial Space 
Transportation, and for other purposes.
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 ‘‘Commercial Space 
Launch Amendments Act of 2004’’. 
SEC. 2. FINDINGS. 
The Congress finds that—
(1) the goal of opening space to the American 
people and their private commercial, scientific, and 
cultural enterprises should guide Federal space in-
vestments, policies, and regulations; 
(2) private industry has begun to develop com-
mercial 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; 
(3) space transportation is inherently risky; 
(4) a critical area of responsibility for the Of-
fice of the Associate Administrator for Commercial 
Space Transportation is to regulate the emerging 
commercial human space flight industry; and 
(5) the public interest is served by creating a 
clear legal and regulatory regime for commercial 
human space flight.
SEC. 3. 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,’’; and 
(2) in subsection (a)(4)—
(A) by striking ‘‘satellite’’; and 
(B) by striking ‘‘services now available 
from’’ and inserting ‘‘capabilities of’’. 
(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 fol-
lowing 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 pay-
load’’; 
(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 re-
designated by paragraph (1) of this subsection, the 
following new paragraph: 
‘‘(11) ‘permit’ means an experimental permit 
issued under section 70105.’’. 
(7) in paragraph (13), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘crew, 
or space flight participants,’’ after ‘‘and its pay-
load,’’; 
(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 re-
designated by paragraph (1) of this subsection, the 
following new paragraph:
‘‘(17) ‘space flight participant’ means an indi-
vidual, who is not crew, carried within a launch vehi-
cle or reentry vehicle.’’; 
(10) by inserting after paragraph (18), as so 
redesignated by paragraph (1) of this subsection, the 
following new paragraphs: 
‘‘(19) ‘suborbital rocket’ means a rocket-pro-
pelled vehicle intended for flight on a suborbital tra-
jectory whose thrust is greater than its lift for the 
majority of the powered portion of its flight. 
‘‘(20) ‘suborbital trajectory’ means the inten-
tional 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 subpara-
graph (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) Sec-
tion 70103(a) of title 49, United States Code, is amended 
by inserting ‘‘, through the Associate Administrator for 
Commercial Space Transportation,’’ after ‘‘Secretary of 
Transportation’’. 
(2) Section 70103(b)(1) of title 49, United States 
Code, is amended by inserting ‘‘, including those involving 
space flight participants’’ after ‘‘private sector’’. 
(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 fol-
lowing: 
‘‘Notwithstanding this subsection, a permit shall not au-
thorize 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) The section heading of section 70105 of title 49, 
United States Code, is amended by striking ‘‘LICENSE AP-
PLICATIONS’’ and inserting ‘‘APPLICATIONS’’, and the 
item relating to that section in the table of sections for
chapter 701 of title 49, United States Code, is amended 
accordingly. 
(6) Section 70105(a) of title 49, United States Code, 
is amended—
(A) by striking ‘‘APPLICATIONS.— ’’ and insert-
ing ‘‘LICENSES.—’’; 
(B) in paragraph (1), by striking ‘‘subsection 
(b)(2)(D)’’ both places it appears and inserting 
‘‘subsection (c)(2)(D)’’; and 
(C) in paragraph (2), by inserting ‘‘, including 
crews,’’ after ‘‘or personnel’’. 
(7) Section 70105 of title 49, United States Code, 
is amended by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively, and by inserting after 
subsection (a) the following new subsection: 
‘‘(b) EXPERIMENTAL PERMITS.—(1) A person may 
apply to the Secretary of Transportation for an experi-
mental permit under this subsection in the form and man-
ner the Secretary prescribes. Consistent with the public 
health and safety, safety of property, and national security 
and foreign policy interests of the United States, the Sec-
retary, not later than 90 days after receiving an applica-
tion pursuant to this subsection, shall issue a permit if 
the Secretary decides in writing that the applicant com-
plies, 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 60 days after receiving an appli-
cation. 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 occur-
rence when a permit is not issued within the deadline es-
tablished by this subsection. 
‘‘(2) In carrying out paragraph (1), the Secretary 
may establish procedures for safety approvals of launch 
vehicles, reentry vehicles, safety systems, processes, serv-
ices, or personnel, including crews, that may be used in 
conducting commercial space launch or reentry activities 
pursuant to a permit. 
‘‘(3) In order to encourage the development of a com-
mercial space flight industry, the Secretary, to the great-
est extent practicable, shall when issuing permits use the 
authority granted under subsection (c)(2)(C). 
‘‘(4) The Secretary may issue a permit only for reus-
able suborbital rockets that will be launched or reentered 
solely for—
‘‘(A) research and development to test new de-
sign concepts, new equipment, or new operating 
techniques; 
‘‘(B) showing compliance with requirements as 
part of the process for obtaining a license under this 
chapter; or 
‘‘(C) crew training prior to obtaining a license 
for a launch or reentry using the design of the rock-
et for which the permit would be issued. 
‘‘(5) Permits issued under this subsection shall—
‘‘(A) authorize an unlimited number of launches 
and reentries for a particular suborbital rocket de-
sign for the uses described in paragraph (4); and 
‘‘(B) specify the modifications that may be 
made to the suborbital rocket without changing the 
design to an extent that would invalidate the permit. 
‘‘(6) Permits shall not be transferable. 
‘‘(7) 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. 
‘‘(8) No person may operate a reusable suborbital 
rocket under a permit for carrying any property or human 
being for compensation or hire.
‘‘(9) For the purposes of sections 70106, 70107, 
70108, 70109, 70110, 70112, 70115, 70116, 70117, and 
70121 of this chapter—
‘‘(A) a permit shall be considered a license; 
‘‘(B) the holder of a permit shall be considered 
a licensee; 
‘‘(C) a vehicle operating under a permit shall be 
considered to be licensed; and 
‘‘(D) the issuance of a permit shall be consid-
ered licensing. 
This paragraph shall not be construed to allow the trans-
fer of a permit.’’. 
(8) Section 70105(c)(1) of title 49, United States 
Code, as so redesignated by paragraph (7) of this sub-
section, is amended by inserting ‘‘or permit’’ after ‘‘for 
a license’’. 
(9) Section 70105(c)(2)(B) of title 49, United States 
Code, as so redesignated by paragraph (7) of this sub-
section, is amended by striking ‘‘an additional require-
ment’’ and inserting ‘‘any additional requirement’’. 
(10) Section 70105(c)(2)(C) of title 49, United 
States Code, as so redesignated by paragraph (7) of this 
subsection, is amended by inserting ‘‘or permit’’ after ‘‘for 
a license’’.
(11) Section 70105(c)(2)(D) of title 49, United 
States Code, as so redesignated by paragraph (7) of this 
subsection, is amended by inserting ‘‘or permit’’ after ‘‘for 
a license’’. 
(12) Section 70105(c)(3) of title 49, United States 
Code, as so redesignated by paragraph (7) of this sub-
section, is amended—
(A) by striking ‘‘, including the requirement to 
obtain a license,’’; and 
(B) by adding at the end the following: ‘‘Noth-
ing in this paragraph shall be construed to allow the 
launch or reentry of a launch vehicle or a reentry ve-
hicle without a license or permit if a human being 
will be on board.’’. 
(13) Section 70105(c) of title 49, United States 
Code, as so redesignated by paragraph (7) of this sub-
section, 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 pro-
mulgated by the Secretary; and
‘‘(B) 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 promul-
gated by the Secretary, the holder of the license or 
permit has informed the space flight participant in 
writing about the risks of the launch or reentry, in-
cluding the safety record of the launch or reentry ve-
hicle type, and the space flight participant has pro-
vided written informed consent to participation in 
the launch or reentry; and 
‘‘(B) the holder of the license or permit and 
space flight participant have complied with all re-
quirements of the laws of the United States related 
to launching or reentering a space flight partici-
pant.’’. 
(14) Section 70105(d) of title 49, United States 
Code, as so redesignated by paragraph (7) of this sub-
section, is amended by inserting ‘‘or permit’’ after ‘‘of a 
license’’. 
(15) Section 70106(a) of title 49, United States 
Code, is amended—
(A) by inserting ‘‘at a site used for crew train-
ing,’’ after ‘‘assemble a launch vehicle or reentry ve-
hicle,’’; and 
(B) by striking ‘‘section 70104(c)’’ and insert-
ing ‘‘sections 70104(c) and 70105(c)(4)’’. 
(16) Section 70110(a)(1) of title 49, United States 
Code, is amended by striking ‘‘70105(a)’’ and inserting 
‘‘70105’’. 
(17) Section 70112(b)(1) of title 49, United States 
Code, is amended—
(A) by inserting ‘‘crew, space flight partici-
pants,’’ after ‘‘its contractors, subcontractors,’’; and 
(B) by inserting ‘‘or by space flight partici-
pants,’’ after ‘‘its own employees,’’. 
(18) Section 70112(b)(2) of title 49, United States 
Code, is amended—
(A) by inserting ‘‘crew, space flight partici-
pants,’’ after ‘‘transferee, contractors, subcontrac-
tors,’’; and 
(B) by inserting ‘‘or by space flight partici-
pants,’’ after ‘‘its own employees,’’. 
(19) Section 70113(a) of title 49, United States 
Code, is amended by inserting ‘‘, but not against a space 
flight participant,’’ after ‘‘subcontractor of a customer,’’.
(20) Section 70113(f) of title 49, United States Code, 
is amended by striking ‘‘December 31, 2004.’’ and insert-
ing ‘‘December 31, 2007. This section does not apply to 
permits.’’. 
(21) Section 70115(b)(1)(D)(i) of title 49, United 
States Code, is amended by inserting ‘‘crew training site,’’ 
after ‘‘site of a launch vehicle or reentry vehicle,’’. 
(22) Section 70119 of title 49, United States Code, 
is amended by striking paragraphs (1) and (2) and insert-
ing the following: 
‘‘(1) such sums as may be necessary for fiscal 
year 2005; 
‘‘(2) such sums as may be necessary for fiscal 
year 2006; and 
‘‘(3) such sums as may be necessary for fiscal 
year 2007.’’. 
(23) Section 70120 of title 49, United States Code, 
is amended by adding at the end the following new sub-
sections: 
‘‘(c) AMENDMENTS.—Not later than 12 months after 
the date of enactment of the Commercial Space Launch 
Amendments Act of 2004, the Secretary shall publish pro-
posed regulations to carry out that Act, including regula-
tions relating to crew, space flight participants, and per-
mits for launch or reentry of reusable suborbital rockets.
Not later than 18 months after such date of enactment, 
the Secretary shall issue final regulations. 
‘‘(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 de-
scribed in subsection (c). 
‘‘(2) As soon as practicable after the date of enact-
ment 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 li-
censes for the launch or reentry of launch vehicles or re-
entry 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.’’. 
SEC. 4. STUDY ON THE GRADUAL ELIMINATION OF COM-
MERCIAL SPACE TRANSPORTATION LIABIL-
ITY RISK SHARING REGIME. 
Not later than 60 days after the date of enactment 
of this Act, the Secretary of Transportation shall enter 
into an appropriate arrangement with the National Acad-
emy of Public Administration to conduct a study of how 
best to gradually eliminate the liability risk sharing regime 
in the United States for commercial space transportation 
under section 70113 of title 49, United States Code. The 
study shall assess methods by which the liability risk shar-
ing regime could be eliminated by 2008 or as soon as pos-
sible thereafter and the impact those methods would be 
likely to have on the commercial space transportation in-
dustry. The methods examined shall include incremental 
approaches. 
SEC. 5. TECHNICAL AMENDMENT. 
Section 102(c) of the Commercial Space Act of 1998 
is repealed.