IIA
105TH CONGRESS
1ST SESSION
H. R. 1702
IN THE SENATE OF THE UNITED STATES
NOVEMBER 5, 1997
Received; read twice and referred to the Committee on Commerce, Science,
and Transportation
AN ACT
To encourage the development of a commercial space
industry in the United States, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Commercial Space Act of 1997’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES
Sec. 101. Commercialization of space station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.
TITLE II—REMOTE SENSING
Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth science data.
TITLE III—FEDERAL ACQUISITION OF SPACE TRANSPORTATION
SERVICES
Sec. 301. Requirement to procure commercial space transportation services.
Sec. 302. Acquisition of commercial space transportation services.
Sec. 303. Launch Services Purchase Act of 1990 amendments.
Sec. 304. Shuttle privatization.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘Administrator’’ means the Ad-
ministrator of the National Aeronautics and Space
Administration;
(2) the term ‘‘commercial provider’’ means any
person providing space transportation services or
other space-related activities, primary control of
which is held by persons other than Federal, State,
local, and foreign governments;
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(3) the term ‘‘payload’’ means anything that a
person undertakes to transport to, from, or within
outer space, or in suborbital trajectory, by means of
a space transportation vehicle, but does not include
the space transportation vehicle itself except for its
components which are specifically designed or adapt-
ed for that payload;
(4) the term ‘‘space-related activities’’ includes
research and development, manufacturing, process-
ing, service, and other associated and support activi-
ties;
(5) the term ‘‘space transportation services’’
means the preparation of a space transportation ve-
hicle and its payloads for transportation to, from, or
within outer space, or in suborbital trajectory, and
the conduct of transporting a payload to, from, or
within outer space, or in suborbital trajectory;
(6) the term ‘‘space transportation vehicle’’
means any vehicle constructed for the purpose of op-
erating in, or transporting a payload to, from, or
within, outer space, or in suborbital trajectory, and
includes any component of such vehicle not specifi-
cally designed or adapted for a payload;
(7) the term ‘‘State’’ means each of the several
States of the Union, the District of Columbia, the
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Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other common-
wealth, territory, or possession of the United States;
and
(8) the term ‘‘United States commercial pro-
vider’’ means a commercial provider, organized
under the laws of the United States or of a State,
which is—
(A) more than 50 percent owned by United
States nationals; or
(B) a subsidiary of a foreign company and
the Secretary of Transportation finds that—
(i) such subsidiary has in the past evi-
denced a substantial commitment to the
United States market through—
(I) investments in the United
States in long-term research, develop-
ment, and manufacturing (including
the manufacture of major components
and subassemblies); and
(II) significant contributions to
employment in the United States; and
(ii) the country or countries in which
such foreign company is incorporated or
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organized, and, if appropriate, in which it
principally conducts its business, affords
reciprocal treatment to companies de-
scribed in subparagraph (A) comparable to
that afforded to such foreign company’s
subsidiary in the United States, as evi-
denced by—
(I) providing comparable oppor-
tunities for companies described in
subparagraph (A) to participate in
Government sponsored research and
development similar to that authorized
under this Act;
(II) providing no barriers, to
companies described in subparagraph
(A) with respect to local investment
opportunities, that are not provided to
foreign companies in the United
States; and
(III) providing adequate and ef-
fective protection for the intellectual
property rights of companies de-
scribed in subparagraph (A).
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TITLE I—PROMOTION OF COM-
MERCIAL SPACE OPPORTUNI-
TIES
SEC. 101. COMMERCIALIZATION OF SPACE STATION.
(a) POLICY.—The Congress declares that a priority
goal of constructing the International Space Station is the
economic development of Earth orbital space. The Con-
gress further declares that free and competitive markets
create the most efficient conditions for promoting eco-
nomic development, and should therefore govern the eco-
nomic development of Earth orbital space. The Congress
further declares that the use of free market principles in
operating, servicing, allocating the use of, and adding ca-
pabilities to the Space Station, and the resulting fullest
possible engagement of commercial providers and partici-
pation of commercial users, will reduce Space Station
operational costs for all partners and the Federal Govern-
ment’s share of the United States burden to fund oper-
ations.
(b) REPORTS.—(1) The Administrator shall deliver to
the Committee on Science of the House of Representatives
and the Committee on Commerce, Science, and Transpor-
tation of the Senate, within 90 days after the date of the
enactment of this Act, a study that identifies and exam-
ines—
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(A) the opportunities for commercial providers
to play a role in International Space Station activi-
ties, including operation, use, servicing, and aug-
mentation;
(B) the potential cost savings to be derived
from commercial providers playing a role in each of
these activities;
(C) which of the opportunities described in sub-
paragraph (A) the Administrator plans to make
available to commercial providers in fiscal year 1998
and 1999;
(D) the specific policies and initiatives the Ad-
ministrator is advancing to encourage and facilitate
these commercial opportunities; and
(E) the revenues and cost reimbursements to
the Federal Government from commercial users of
the Space Station.
(2) The Administrator shall deliver to the Committee
on Science of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the
Senate, within 180 days after the date of the enactment
of this Act, an independently-conducted market study that
examines and evaluates potential industry interest in pro-
viding commercial goods and services for the operation,
servicing, and augmentation of the International Space
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(1) in the table of sections—
(A) by amending the item relating to sec-
tion 70104 to read as follows:
‘‘70104. Restrictions on launches, operations, and reentries.’’;
(B) by amending the item relating to sec-
tion 70108 to read as follows:
‘‘70108. Prohibition, suspension, and end of launches, operation of launch sites
and reentry sites, and reentries.’’;
(C) by amending the item relating to sec-
tion 70109 to read as follows:
‘‘70109. Preemption of scheduled launches or reentries.’’;
and
(D) by adding at the end the following new
items:
‘‘70120. Regulations.
‘‘70121. Report to Congress.’’.
(2) in section 70101—
(A) by inserting ‘‘microgravity research,’’
after ‘‘information services,’’ in subsection
(a)(3);
(B) by inserting ‘‘, reentry,’’ after ‘‘launch-
ing’’ both places it appears in subsection (a)(4);
(C) by inserting ‘‘, reentry vehicles,’’ after
‘‘launch vehicles’’ in subsection (a)(5);
(D) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(6);
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(E) by inserting ‘‘, reentries,’’ after
‘‘launches’’ both places it appears in subsection
(a)(7);
(F) by inserting ‘‘, reentry sites,’’ after
‘‘launch sites’’ in subsection (a)(8);
(G) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(8);
(H) by inserting ‘‘reentry sites,’’ after
‘‘launch sites,’’ in subsection (a)(9);
(I) by inserting ‘‘and reentry site’’ after
‘‘launch site’’ in subsection (a)(9);
(J) by inserting ‘‘, reentry vehicles,’’ after
‘‘launch vehicles’’ in subsection (b)(2);
(K) by striking ‘‘launch’’ in subsection
(b)(2)(A);
(L) by inserting ‘‘and reentry’’ after ‘‘con-
duct of commercial launch’’ in subsection
(b)(3);
(M) by striking ‘‘launch’’ after ‘‘and trans-
fer commercial’’ in subsection (b)(3); and
(N) by inserting ‘‘and development of re-
entry sites,’’ after ‘‘launch-site support facili-
ties,’’ in subsection (b)(4);
(3) in section 70102—
(A) in paragraph (3)—
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(i) by striking ‘‘and any payload’’ and
inserting in lieu thereof ‘‘or reentry vehicle
and any payload from Earth’’;
(ii) by striking the period at the end
of subparagraph (C) and inserting in lieu
thereof a comma; and
(iii) by adding after subparagraph (C)
the following:
‘‘including activities involved in the preparation of a
launch vehicle or payload for launch, when those ac-
tivities take place at a launch site in the United
States.’’;
(B) in paragraph (5)—
(i) by redesignating subparagraphs
(A) and (B) as subparagraphs (B) and
(C), respectively; and
(ii) by inserting before subparagraph
(B), as so redesignated by clause (i) of this
subparagraph, the following new subpara-
graph:
‘‘(A) activities directly related to the prep-
aration of a launch site or payload facility for
one or more launches;’’;
(C) by inserting ‘‘or reentry vehicle’’ after
‘‘means of a launch vehicle’’ in paragraph (8);
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(D) by redesignating paragraphs (10),
(11), and (12) as paragraphs (14), (15), and
(16), respectively;
(E) by inserting after paragraph (9) the
following new paragraphs:
‘‘(10) ‘reenter’ and ‘reentry’ mean to return or
attempt to return, purposefully, a reentry vehicle
and its payload, if any, from Earth orbit or from
outer space to Earth.
‘‘(11) ‘reentry services’ means—
‘‘(A) activities involved in the preparation
of a reentry vehicle and its payload, if any, for
reentry; and
‘‘(B) the conduct of a reentry.
‘‘(12) ‘reentry site’ means the location on Earth
to which a reentry vehicle is intended to return (as
defined in a license the Secretary issues or transfers
under this chapter).
‘‘(13) ‘reentry vehicle’ means a vehicle designed
to return from Earth orbit or outer space to Earth,
or a reusable launch vehicle designed to return from
outer space to Earth, substantially intact.’’; and
(F) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ each place it appears in para-
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graph (15), as so redesignated by subparagraph
(D) of this paragraph;
(4) in section 70103(b)—
(A) by inserting ‘‘AND REENTRIES’’ after
‘‘LAUNCHES’’ in the subsection heading;
(B) by inserting ‘‘and reentries’’ after
‘‘commercial space launches’’ in paragraph (1);
and
(C) by inserting ‘‘and reentry’’ after
‘‘space launch’’ in paragraph (2);
(5) in section 70104—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70104. Restrictions on launches, operations, and
reentries’’;
(B) by inserting ‘‘or reentry site, or to re-
enter a reentry vehicle,’’ after ‘‘operate a
launch site’’ each place it appears in subsection
(a);
(C) by inserting ‘‘or reentry’’ after ‘‘launch
or operation’’ in subsection (a)(3) and (4);
(D) in subsection (b)—
(i) by striking ‘‘launch license’’ and
inserting in lieu thereof ‘‘license’’;
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(ii) by inserting ‘‘or reenter’’ after
‘‘may launch’’; and
(iii) by inserting ‘‘or reentering’’ after
‘‘related to launching’’; and
(E) in subsection (c)—
(i) by amending the subsection head-
ing to read as follows: ‘‘PREVENTING
LAUNCHES AND REENTRIES.—’’;
(ii) by inserting ‘‘or reentry’’ after
‘‘prevent the launch’’; and
(iii) by inserting ‘‘or reentry’’ after
‘‘decides the launch’’;
(6) in section 70105—
(A) by inserting ‘‘(1)’’ before ‘‘A person
may apply’’ in subsection (a);
(B) by striking ‘‘receiving an application’’
both places it appears in subsection (a) and in-
serting in lieu thereof ‘‘accepting an application
in accordance with criteria established pursuant
to subsection (b)(2)(D)’’;
(C) by adding at the end of subsection (a)
the following: ‘‘The Secretary shall transmit to
the Committee on Science of the House of Rep-
resentatives and the Committee on Commerce,
Science, and Transportation of the Senate a
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written notice not later than 30 days after any
occurrence when a license is not issued within
the deadline established 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 that may be used in conducting licensed
commercial space launch or reentry activities.’’;
(D) by inserting ‘‘or a reentry site, or the
reentry of a reentry vehicle,’’ after ‘‘operation
of a launch site’’ in subsection (b)(1);
(E) by striking ‘‘or operation’’ and insert-
ing in lieu thereof ‘‘, operation, or reentry’’ in
subsection (b)(2)(A);
(F) by striking ‘‘and’’ at the end of sub-
section (b)(2)(B);
(G) by striking the period at the end of
subsection (b)(2)(C) and inserting in lieu there-
of ‘‘; and’’;
(H) by adding at the end of subsection
(b)(2) the following new subparagraph:
‘‘(D) regulations establishing criteria for ac-
cepting or rejecting an application for a license
under this chapter within 60 days after receipt of
such application.’’; and
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(I) by inserting ‘‘, including the require-
ment to obtain a license,’’ after ‘‘waive a re-
quirement’’ in subsection (b)(3);
(7) in section 70106(a)—
(A) by inserting ‘‘or reentry site’’ after
‘‘observer at a launch site’’;
(B) by inserting ‘‘or reentry vehicle’’ after
‘‘assemble a launch vehicle’’; and
(C) by inserting ‘‘or reentry vehicle’’ after
‘‘with a launch vehicle’’;
(8) in section 70108—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70108. 
Prohibition, 
suspension, 
and 
end 
of
launches, operation of launch sites and
reentry sites, and reentries’’;
and
(B) in subsection (a)—
(i) by inserting ‘‘or reentry site, or re-
entry of a reentry vehicle,’’ after ‘‘oper-
ation of a launch site’’; and
(ii) by inserting ‘‘or reentry’’ after
‘‘launch or operation’’;
(9) in section 70109—
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(A) by amending the section designation
and heading to read as follows:
‘‘§ 70109. Preemption of scheduled launches or reen-
tries’’;
(B) in subsection (a)—
(i) by inserting ‘‘or reentry’’ after
‘‘ensure that a launch’’;
(ii) by inserting ‘‘, reentry site,’’ after
‘‘United States Government launch site’’;
(iii) by inserting ‘‘or reentry date
commitment’’ after ‘‘launch date commit-
ment’’;
(iv) by inserting ‘‘or reentry’’ after
‘‘obtained for a launch’’;
(v) by inserting ‘‘, reentry site,’’ after
‘‘access to a launch site’’;
(vi) by inserting ‘‘, or services related
to a reentry,’’ after ‘‘amount for launch
services’’; and
(vii) by inserting ‘‘or reentry’’ after
‘‘the scheduled launch’’; and
(C) in subsection (c), by inserting ‘‘or re-
entry’’ after ‘‘prompt launching’’;
(10) in section 70110—
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(A) by inserting ‘‘or reentry’’ after ‘‘pre-
vent the launch’’ in subsection (a)(2); and
(B) by inserting ‘‘or reentry site, or re-
entry of a reentry vehicle,’’ after ‘‘operation of
a launch site’’ in subsection (a)(3)(B);
(11) in section 70111—
(A) by inserting ‘‘or reentry’’ after
‘‘launch’’ in subsection (a)(1)(A);
(B) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(1)(B);
(C) by inserting ‘‘or reentry services’’ after
‘‘or launch services’’ in subsection (a)(2);
(D) by inserting ‘‘or reentry’’ after ‘‘com-
mercial launch’’ both places it appears in sub-
section (b)(1);
(E) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ in subsection (b)(2)(C);
(F) by inserting after subsection (b)(2) the
following new paragraph:
‘‘(3) The Secretary shall ensure the establishment of
uniform guidelines for, and consistent implementation of,
this section by all Federal agencies.’’;
(G) by striking ‘‘or its payload for launch’’
in subsection (d) and inserting in lieu thereof
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‘‘or reentry vehicle, or the payload of either, for
launch or reentry’’; and
(H) by inserting ‘‘, reentry vehicle,’’ after
‘‘manufacturer of the launch vehicle’’ in sub-
section (d);
(12) in section 70112—
(A) in subsection (a)(1), by inserting
‘‘launch or reentry’’ after ‘‘(1) When a’’;
(B) by inserting ‘‘or reentry’’ after ‘‘one
launch’’ in subsection (a)(3);
(C) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ in subsection (a)(4);
(D) in subsection (b)(1), by inserting
‘‘launch or reentry’’ after ‘‘(1) A’’;
(E) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ each place it appears in sub-
section (b);
(F) by inserting ‘‘applicable’’ after ‘‘car-
ried out under the’’ in paragraphs (1) and (2)
of subsection (b);
(G) by striking ‘‘, Space, and Technology’’
in subsection (d)(1);
(H) by inserting ‘‘OR REENTRIES’’ after
‘‘LAUNCHES’’ in the heading for subsection (e);
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(I) by inserting ‘‘or reentry site or a re-
entry’’ after ‘‘launch site’’ in subsection (e);
and
(J) in subsection (f), by inserting ‘‘launch
or reentry’’ after ‘‘carried out under a’’;
(13) in section 70113(a)(1) and (d)(1) and (2),
by inserting ‘‘or reentry’’ after ‘‘one launch’’ each
place it appears;
(14) in section 70115(b)(1)(D)(i)—
(A) by inserting ‘‘reentry site,’’ after
‘‘launch site,’’; and
(B) by inserting ‘‘or reentry vehicle’’ after
‘‘launch vehicle’’ both places it appears;
(15) in section 70117—
(A) by inserting ‘‘or reentry site, or to re-
enter a reentry vehicle’’ after ‘‘operate a launch
site’’ in subsection (a);
(B) by inserting ‘‘or reentry’’ after ‘‘ap-
proval of a space launch’’ in subsection (d);
(C) by amending subsection (f) to read as
follows:
‘‘(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN
IMPORT.—A launch vehicle, reentry vehicle, or payload
that is launched or reentered is not, because of the launch
or reentry, an export or import, respectively, for purposes
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of a law controlling exports or imports, except that pay-
loads launched pursuant to foreign trade zone procedures
as provided for under the Foreign Trade Zones Act (19
U.S.C. 81a–81u) shall be considered exports with regard
to customs entry.’’; and
(D) in subsection (g)—
(i) by striking ‘‘operation of a launch
vehicle or launch site,’’ in paragraph (1)
and inserting in lieu thereof ‘‘reentry, op-
eration of a launch vehicle or reentry vehi-
cle, operation of a launch site or reentry
site,’’; and
(ii) by inserting ‘‘reentry,’’ after
‘‘launch,’’ in paragraph (2); and
(16) by adding at the end the following new
sections:
‘‘§ 70120. Regulations
‘‘(a) IN GENERAL.—The Secretary of Transpor-
tation, within 9 months after the date of the enactment
of this section, shall issue regulations to carry out this
chapter that include—
‘‘(1) guidelines for industry and State govern-
ments to obtain sufficient insurance coverage for po-
tential damages to third parties;
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‘‘(2) procedures for requesting and obtaining li-
censes to launch a commercial launch vehicle;
‘‘(3) procedures for requesting and obtaining
operator licenses for launch;
‘‘(4) procedures for requesting and obtaining
launch site operator licenses; and
‘‘(5) procedures for the application of govern-
ment indemnification.
‘‘(b) REENTRY.—The Secretary of Transportation,
within 6 months after the date of the enactment of this
section, shall issue a notice of proposed rulemaking to
carry out this chapter that includes—
‘‘(1) procedures for requesting and obtaining li-
censes to reenter a reentry vehicle;
‘‘(2) procedures for requesting and obtaining
operator licenses for reentry; and
‘‘(3) procedures for requesting and obtaining
reentry site operator licenses.
‘‘§ 70121. Report to Congress
‘‘The Secretary of Transportation shall submit to
Congress an annual report to accompany the President’s
budget request that—
‘‘(1) describes all activities undertaken under
this chapter, including a description of the process
for the application for and approval of licenses under
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this chapter and recommendations for legislation
that may further commercial launches and reentries;
and
‘‘(2) reviews the performance of the regulatory
activities and the effectiveness of the Office of Com-
mercial Space Transportation.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a)(6)(B) shall take effect upon the effective
date of final regulations issued pursuant to section
70105(b)(2)(D) of title 49, United States Code, as added
by subsection (a)(6)(H).
SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.
Section 504 of the National Aeronautics and Space
Administration Authorization Act, Fiscal Year 1993 (15
U.S.C. 5803) is amended—
(1) in subsection (a)—
(A) by striking ‘‘the Office of Commercial
Programs within’’; and
(B) by striking ‘‘Such program shall not
be effective after September 30, 1995.’’;
(2) by striking subsection (c); and
(3) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
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SEC. 104. PROMOTION OF UNITED STATES GLOBAL POSI-
TIONING SYSTEM STANDARDS.
(a) FINDING.—The Congress finds that the Global
Positioning System, including satellites, signal equipment,
ground stations, data links, and associated command and
control facilities, has become an essential element in civil,
scientific, and military space development because of the
emergence of a United States commercial industry which
provides Global Positioning System equipment and related
services.
(b) INTERNATIONAL COOPERATION.—In order to
support and sustain the Global Positioning System in a
manner that will most effectively contribute to the na-
tional security, public safety, scientific, and economic in-
terests of the United States, the Congress encourages the
President to—
(1) ensure the operation of the Global Position-
ing System on a continuous worldwide basis free of
direct user fees; and
(2) enter into international agreements that
promote cooperation with foreign governments and
international organizations to—
(A) establish the Global Positioning Sys-
tem and its augmentations as an acceptable
international standard; and
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(B) eliminate any foreign barriers to appli-
cations of the Global Positioning System world-
wide.
SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.
(a) ACQUISITION FROM COMMERCIAL PROVIDERS.—
In order to satisfy the scientific requirements of the Na-
tional Aeronautics and Space Administration, and where
practicable of other Federal agencies and scientific re-
searchers, the Administrator shall to the maximum extent
possible acquire, where cost effective, space science data
from a commercial provider.
(b) TREATMENT OF SPACE SCIENCE DATA AS COM-
MERCIAL ITEM UNDER ACQUISITION LAWS.—Acquisitions
of space science data by the Administrator shall be carried
out in accordance with applicable acquisition laws and reg-
ulations (including chapters 137 and 140 of title 10, Unit-
ed States Code), except that space science data shall be
considered to be a commercial item for purposes of such
laws and regulations (including section 2306a of title 10,
United States Code (relating to cost or pricing data), sec-
tion 2320 of such title (relating to rights in technical data)
and section 2321 of such title (relating to validation of
proprietary data restrictions)).
(c) DEFINITION.—For purposes of this section, the
term ‘‘space science data’’ includes scientific data concern-
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ing the elemental and mineralogical resources of the moon,
asteroids, planets and their moons, and comets, micro-
gravity acceleration, and solar storm monitoring.
(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government
from requiring compliance with applicable safety stand-
ards.
(e) LIMITATION.—This section does not authorize the
National Aeronautics and Space Administration to provide
financial assistance for the development of commercial
systems for the collection of space science data.
SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CEN-
TERS.
The Administrator shall administer the Commercial
Space Center program in a coordinated manner from Na-
tional Aeronautics and Space Administration head-
quarters.
TITLE II—REMOTE SENSING
SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992
AMENDMENTS.
(a) FINDINGS.—The Congress finds that—
(1) a robust domestic United States industry in
high resolution Earth remote sensing is in the eco-
nomic, employment, technological, scientific, and na-
tional security interests of the United States;
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(2) to secure its national interests the United
States must nurture a commercial remote sensing
industry that leads the world;
(3) the Federal Government must provide policy
and regulations that promote a stable business envi-
ronment for that industry to succeed and fulfill the
national interest;
(4) it is the responsibility of the Federal Gov-
ernment to create domestic and international condi-
tions favorable to the health and growth of the Unit-
ed States commercial remote sensing industry; and
(5) it is a fundamental goal of United States
policy to support and enhance United States indus-
trial competitiveness in the field of remote sensing,
while at the same time protecting the national secu-
rity concerns and international obligations of the
United States.
(b) AMENDMENTS.—The Land Remote Sensing Pol-
icy Act of 1992 is amended—
(1) in section 2 (15 U.S.C. 5601)—
(A) by amending paragraph (5) to read as
follows:
‘‘(5) Commercialization of land remote sensing
is a near-term goal, and should remain a long-term
goal, of United States policy.’’;
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(B) by striking paragraph (6) and redesig-
nating paragraphs (7) through (16) as para-
graphs (6) through (15), respectively;
(C) in paragraph (11), as so redesignated
by subparagraph (B) of this paragraph, by
striking ‘‘determining the design’’ and all that
follows through ‘‘international consortium’’ and
inserting in lieu thereof ‘‘ensuring the continu-
ity of Landsat quality data’’; and
(D) by adding at the end the following new
paragraph:
‘‘(16) The United States should encourage re-
mote sensing systems to promote access to land re-
mote sensing data by scientific researchers and edu-
cators.’’;
(2) in section 101 (15 U.S.C. 5611)—
(A) in subsection (c)—
(i) by inserting ‘‘and’’ at the end of
paragraph (6);
(ii) by striking paragraph (7); and
(iii) by redesignating paragraph (8) as
paragraph (7); and
(B) in subsection (e)(1)—
(i) by inserting ‘‘and’’ at the end of
subparagraph (A);
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(ii) by striking ‘‘, and’’ at the end of
subparagraph (B) and inserting in lieu
thereof a period; and
(iii) by striking subparagraph (C);
(3) in section 201 (15 U.S.C. 5621)—
(A) by inserting ‘‘(1)’’ after ‘‘NATIONAL
SECURITY.—’’ in subsection (b);
(B) in subsection (b)(1), as so redesig-
nated by subparagraph (A) of this paragraph—
(i) by striking ‘‘No license shall be
granted by the Secretary unless the Sec-
retary determines in writing that the appli-
cant will comply’’ and inserting in lieu
thereof ‘‘The Secretary shall grant a li-
cense if the Secretary determines that the
activities proposed in the application are
consistent’’; and
(ii) by inserting ‘‘, and that the appli-
cant has provided assurances adequate to
indicate, in combination with other infor-
mation available to the Secretary that is
relevant to activities proposed in the appli-
cation, that the applicant will comply with
all terms of the license’’ after ‘‘concerns of
the United States’’;
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(C) by adding at the end of subsection (b)
the following new paragraph:
‘‘(2) The Secretary, within 6 months after the date
of the enactment of the Commercial Space Act of 1997,
shall publish in the Federal Register a complete and spe-
cific list of all information required to comprise a complete
application for a license under this title. An application
shall be considered complete when the applicant has pro-
vided all information required by the list most recently
published in the Federal Register before the date the ap-
plication was first submitted. Unless the Secretary has,
within 30 days after receipt of an application, notified the
applicant of information necessary to complete an applica-
tion, the Secretary may not deny the application on the
basis of the absence of any such information.’’;
(D) in subsection (c), by amending the sec-
ond sentence thereof to read as follows: ‘‘If the
Secretary has not granted the license within
such 120-day period, the Secretary shall inform
the applicant, within such period, of any pend-
ing issues and actions required to be carried
out by the applicant or the Secretary in order
to result in the granting of a license.’’; and
(E) in subsection (e)(2)(B), by striking
‘‘and the importance of promoting widespread
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the licensee, and the period during which such limitations
apply.
‘‘(b) TERMINATION, MODIFICATION, OR SUSPEN-
SION.—Not later than 30 days after an action by the Sec-
retary to seek an order of injunction or other judicial de-
termination pursuant to section 202(b) or section
203(a)(2), the Secretary shall provide written notification
to Congress of such action and the reasons therefor.’’;
(9) in section 301 (15 U.S.C. 5631)—
(A) by inserting ‘‘, that are not being com-
mercially developed’’ after ‘‘and its environ-
ment’’ in subsection (a)(2)(B); and
(B) by adding at the end the following new
subsection:
‘‘(d) DUPLICATION OF COMMERCIAL SECTOR ACTIVI-
TIES.—The Federal Government shall not undertake ac-
tivities under this section which duplicate activities avail-
able from the United States commercial sector, unless
such activities would result in significant cost savings to
the Federal Government, or are necessary for reasons of
national security or international obligations.’’;
(10) in section 302 (15 U.S.C. 5632)—
(A) by striking ‘‘(a) GENERAL RULE.—’’;
(B) by striking ‘‘, including unenhanced
data gathered under the technology demonstra-
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tion program carried out pursuant to section
303,’’ and inserting in lieu thereof ‘‘that is not
otherwise available from the commercial sec-
tor’’; and
(C) by striking subsection (b);
(11) by repealing section 303 (15 U.S.C. 5633);
(12) 
in 
section 
401(b)(3) 
(15 
U.S.C.
5641(b)(3)), by striking ‘‘, including any such en-
hancements developed under the technology dem-
onstration program under section 303,’’;
(13) in section 501(a) (15 U.S.C. 5651(a)), by
striking ‘‘section 506’’ and inserting in lieu thereof
‘‘section 507’’;
(14) 
in 
section 
502(c)(7) 
(15 
U.S.C.
5652(c)(7)), by striking ‘‘section 506’’ and inserting
in lieu thereof ‘‘section 507’’; and
(15) in section 507 (15 U.S.C. 5657)—
(A) by amending subsection (a) to read as
follows:
‘‘(a) RESPONSIBILITY OF THE SECRETARY OF DE-
FENSE.—The Secretary shall consult with the Secretary
of Defense on all matters under title II affecting national
security. The Secretary of Defense shall be responsible for
determining those conditions, consistent with this Act,
necessary to meet national security concerns of the United
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States, and for notifying the Secretary promptly of such
conditions. Not later than 60 days after receiving a re-
quest from the Secretary to review a completed applica-
tion, the Secretary of Defense shall notify the Secretary
and the licensee of, and describe in appropriate detail, any
specific national security concerns of the United States
that the Secretary of Defense determines are an appro-
priate reason for delaying, modifying, or rejecting a license
application. The Secretary of Defense shall convey to the
Secretary any conditions for a license issued under title
II, consistent with this Act, that the Secretary of Defense
determines necessary to meet the national security con-
cerns of the United States. If no such notification has
been received by the Secretary within such 60-day period,
the Secretary shall deem that activities proposed in the
license application meet the national security concerns of
the United States.’’;
(B) by striking subsection (b)(1) and (2)
and inserting in lieu thereof the following:
‘‘(b) RESPONSIBILITY
OF
THE
SECRETARY
OF
STATE.—(1) The Secretary shall consult with the Sec-
retary of State on all matters under title II affecting inter-
national obligations of the United States. The Secretary
of State shall be responsible for determining those condi-
tions, consistent with this Act, necessary to meet inter-
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national obligations and policies of the United States and
for notifying the Secretary promptly of such conditions.
Not later than 60 days after receiving a request from the
Secretary to review a completed application, the Secretary
of State shall notify the Secretary and the licensee of, and
describe in appropriate detail, any specific international
obligations of the United States that the Secretary of
State determines are an appropriate reason for delaying,
modifying, or rejecting a license application. The Sec-
retary of State shall convey to the Secretary any condi-
tions for a license issued under title II, consistent with
this Act, that the Secretary of State determines necessary
to meet the international obligations of the United States.
If no such notification has been received by the Secretary
within such 60-day period, the Secretary shall deem that
activities proposed in the license application meet the
international obligations of the United States.
‘‘(2) Appropriate United States Government agencies
are authorized and encouraged to provide to developing
nations, as a component of international aid, resources for
purchasing remote sensing data, training, and analysis
from commercial providers.’’; and
(C) in subsection (d), by striking ‘‘Sec-
retary may require’’ and inserting in lieu there-
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of ‘‘Secretary shall, where appropriate, re-
quire’’.
SEC. 202. ACQUISITION OF EARTH SCIENCE DATA.
(a) ACQUISITION.—For purposes of meeting Govern-
ment goals for Mission to Planet Earth, and in order to
satisfy the scientific requirements of the National Aero-
nautics and Space Administration, and where practicable
of other Federal agencies and scientific researchers, the
Administrator shall to the maximum extent possible ac-
quire, where cost-effective, space-based and airborne
Earth remote sensing data, services, distribution, and ap-
plications from a commercial provider.
(b) TREATMENT AS COMMERCIAL ITEM UNDER AC-
QUISITION LAWS.—Acquisitions by the Administrator of
the data, services, distribution, and applications referred
to in subsection (a) shall be carried out in accordance with
applicable acquisition laws and regulations (including
chapters 137 and 140 of title 10, United States Code),
except that such data, services, distribution, and applica-
tions shall be considered to be a commercial item for pur-
poses of such laws and regulations (including section
2306a of title 10, United States Code (relating to cost
or pricing data), section 2320 of such title (relating to
rights in technical data) and section 2321 of such title
(relating to validation of proprietary data restrictions)).
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(c) STUDY.—(1) The Administrator shall conduct a
study to determine the extent to which the baseline sci-
entific requirements of Mission to Planet Earth can be
met by commercial providers, and how the National Aero-
nautics and Space Administration will meet such require-
ments which cannot be met by commercial providers.
(2) The study conducted under this subsection
shall—
(A) make recommendations to promote the
availability of information from the National Aero-
nautics and Space Administration to commercial
providers to enable commercial providers to better
meet the baseline scientific requirements of Mission
to Planet Earth;
(B) make recommendations to promote the dis-
semination to commercial providers of information
on advanced technology research and development
performed by or for the National Aeronautics and
Space Administration; and
(C) identify policy, regulatory, and legislative
barriers to the implementation of the recommenda-
tions made under this subsection.
(3) The results of the study conducted under this
subsection shall be transmitted to the Congress within 6
months after the date of the enactment of this Act.
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(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government
from requiring compliance with applicable safety stand-
ards.
(e) ADMINISTRATION AND EXECUTION.—This section
shall be carried out as part of the Commercial Remote
Sensing Program at the Stennis Space Center.
TITLE 
III—FEDERAL 
ACQUISI-
TION OF SPACE TRANSPOR-
TATION SERVICES
SEC. 
301. 
REQUIREMENT 
TO 
PROCURE 
COMMERCIAL
SPACE TRANSPORTATION SERVICES.
(a) IN GENERAL.—Except as otherwise provided in
this section, the Federal Government shall acquire space
transportation services from United States commercial
providers whenever such services are required in the
course of its activities. To the maximum extent prac-
ticable, the Federal Government shall plan missions to ac-
commodate the space transportation services capabilities
of United States commercial providers.
(b) EXCEPTIONS.—The Federal Government shall
not be required to acquire space transportation services
under subsection (a) if, on a case-by-case basis, the Ad-
ministrator or, in the case of a national security issue,
the Secretary of the Air Force, determines that—
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(7) a payload can make use of the available
cargo space on a Space Shuttle mission as a second-
ary payload, and such payload is consistent with the
requirements of research, development, demonstra-
tion, scientific, commercial, and educational pro-
grams authorized by the Administrator.
The Administrator, in consultation with the Secretary of
State and the Secretary of Transportation, may propose
to the Congress that a specific exception described in para-
graph (5) be enacted for a launch or class of launches.
Any such proposal shall include a description of the for-
eign policy purposes that would be served by such an ex-
ception, and shall identify the impacts of such an excep-
tion on the commercial launch industry. Nothing in this
subsection shall prevent the Administrator from planning
or negotiating agreements with foreign entities for the
launch of Federal Government payloads for foreign policy
purposes, contingent on enactment of a specific exception
described in paragraph (5).
(c) DELAYED EFFECT.—Subsection (a) shall not
apply to space transportation services and space transpor-
tation vehicles acquired or owned by the Federal Govern-
ment before the date of the enactment of this Act, or with
respect to which a contract for such acquisition or owner-
ship has been entered into before such date.
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(d) HISTORICAL PURPOSES.—This section shall not
be construed to prohibit the Federal Government from ac-
quiring, owning, or maintaining space transportation vehi-
cles solely for historical display purposes.
SEC. 302. ACQUISITION OF COMMERCIAL SPACE TRANS-
PORTATION SERVICES.
(a) TREATMENT OF COMMERCIAL SPACE TRANSPOR-
TATION SERVICES AS COMMERCIAL ITEM UNDER ACQUI-
SITION LAWS.—Acquisitions of space transportation serv-
ices by the Federal Government shall be carried out in
accordance with applicable acquisition laws and regula-
tions (including chapters 137 and 140 of title 10, United
States Code), except that space transportation services
shall be considered to be a commercial item for purposes
of such laws and regulations (including section 2306a of
title 10, United States Code (relating to cost or pricing
data), section 2320 of such title (relating to rights in tech-
nical data) and section 2321 of such title (relating to vali-
dation of proprietary data restrictions)).
(b) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government
from requiring compliance with applicable safety stand-
ards.
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SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990
AMENDMENTS.
The Launch Services Purchase Act of 1990 (42
U.S.C. 2465b et seq.) is amended—
(1) by striking section 202;
(2) in section 203—
(A) by striking paragraphs (1) and (2);
and
(B) by redesignating paragraphs (3) and
(4) as paragraphs (1) and (2), respectively;
(3) by striking sections 204 and 205; and
(4) in section 206—
(A) by striking ‘‘(a) COMMERCIAL PAY-
LOADS ON THE SPACE SHUTTLE.—’’; and
(B) by striking subsection (b).
SEC. 304. SHUTTLE PRIVATIZATION.
(a) POLICY AND PREPARATION.—The Administrator
shall prepare for an orderly transition from the Federal
operation, or Federal management of contracted oper-
ation, of space transportation systems to the Federal pur-
chase of commercial space transportation services for all
nonemergency launch requirements, including human,
cargo, and mixed payloads. In those preparations, the Ad-
ministrator shall take into account the need for short-term
economies, as well as the goal of restoring the National
Aeronautics and Space Administration’s research focus
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and its mandate to promote the fullest possible commercial
use of space. As part of those preparations, the Adminis-
trator shall plan for the potential privatization of the
Space Shuttle program. Such plan shall keep safety and
cost effectiveness as high priorities. Nothing in this section
shall prohibit the National Aeronautics and Space Admin-
istration from studying, designing, developing, or funding
upgrades or modifications essential to the safe and eco-
nomical operation of the Space Shuttle fleet.
(b) FEASIBILITY STUDY.—The Administrator shall
conduct a study of the feasibility of implementing the rec-
ommendation of the Independent Shuttle Management Re-
view Team that the National Aeronautics and Space Ad-
ministration transition toward the privatization of the
Space Shuttle. The study shall identify, discuss, and,
where possible, present options for resolving, the major
policy and legal issues that must be addressed before the
Space Shuttle is privatized, including—
(1) whether the Federal Government or the
Space Shuttle contractor should own the Space
Shuttle orbiters and ground facilities;
(2) whether the Federal Government should in-
demnify the contractor for any third party liability
arising from Space Shuttle operations, and, if so,
under what terms and conditions;
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(3) whether payloads other than National Aero-
nautics and Space Administration payloads should
be allowed to be launched on the Space Shuttle, how
missions will be prioritized, and who will decide
which mission flies and when;
(4) whether commercial payloads should be al-
lowed to be launched on the Space Shuttle and
whether any classes of payloads should be made in-
eligible for launch consideration;
(5) whether National Aeronautics and Space
Administration and other Federal Government pay-
loads should have priority over non-Federal payloads
in the Space Shuttle launch assignments, and what
policies should be developed to prioritize among pay-
loads generally;
(6) whether the public interest requires that
certain Space Shuttle functions continue to be per-
formed by the Federal Government; and
(7) how much cost savings, if any, will be gen-
erated by privatization of the Space Shuttle.
(c) REPORT TO CONGRESS.—Within 60 days after
the date of the enactment of this Act, the National Aero-
nautics and Space Administration shall complete the study
required under subsection (b) and shall submit a report
on the study to the Committee on Commerce, Science, and
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Transportation of the Senate and the Committee on
Science of the House of Representatives.
Passed the House of Representatives November 4,
1997.
Attest:
ROBIN H. CARLE,
Clerk.