In the Senate of the United States,
July 30, 1998.
Resolved, That the bill from the House of Representa-
tives (H.R. 1702) entitled ‘‘An Act to encourage the develop-
ment of a commercial space industry in the United States,
and for other purposes.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
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. Promotion of United States Global Positioning System standards.
Sec. 104. Acquisition of space science data.
Sec. 105. 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.
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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. 305. Use of excess intercontinental ballistic missiles.
Sec. 306. National launch capability study.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘Administrator’’ means the Admin-
istrator of the National Aeronautics and Space Ad-
ministration;
(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;
(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, processing,
service, and other associated and support activities;
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(5) the term ‘‘space transportation services’’
means the preparation of a space transportation vehi-
cle 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 oper-
ating in, or transporting a payload to, from, or with-
in, outer space, or in suborbital trajectory, and in-
cludes any component of such vehicle not specifically
designed or adapted for a payload;
(7) the term ‘‘State’’ means each of the several
States of the Union, the District of Columbia, the
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
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(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 or-
ganized, and, if appropriate, in which it
principally conducts its business, affords re-
ciprocal treatment to companies described
in subparagraph (A) comparable to that af-
forded to such foreign company’s subsidiary
in the United States, as evidenced by—
(I) providing comparable oppor-
tunities for companies described in
subparagraph (A) to participate in
Government sponsored research and de-
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velopment similar to that authorized
under this Act;
(II) providing no barriers, to
companies described in subparagraph
(A) with respect to local investment op-
portunities, 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 described
in subparagraph (A).
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 Congress
further declares that free and competitive markets create the
most efficient conditions for promoting economic develop-
ment, and should therefore govern the economic 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 capabilities to the Space
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Station, and the resulting fullest possible engagement of
commercial providers and participation of commercial
users, will reduce Space Station operational costs for all
partners and the Federal Government’s share of the United
States burden to fund operations.
(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—
(A) the opportunities for commercial providers to
play a role in International Space Station activities,
including operation, use, servicing, and augmenta-
tion;
(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 1999
and 2000;
(D) the specific policies and initiatives the Ad-
ministrator is advancing to encourage and facilitate
these commercial opportunities; and
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(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 Commit-
tee on Commerce, Science, and Transportation of the Sen-
ate, within 180 days after the date of the enactment of this
Act, an independently-conducted market study that exam-
ines and evaluates potential industry interest in providing
commercial goods and services for the operation, servicing,
and augmentation of the International Space Station, and
in the commercial use of the International Space Station.
This study shall also include updates to the cost savings
and revenue estimates made in the study described in para-
graph (1) based on the external market assessment.
(3) The Administrator shall deliver to the Congress,
no later than the submission of the President’s annual budg-
et request for fiscal year 2000, a report detailing how many
proposals (whether solicited or not) the National Aero-
nautics and Space Administration received during cal-
endar year 1998 regarding commercial operation, servicing,
utilization, or augmentation of the International Space
Station, broken down by each of these four categories, and
specifying how many agreements the National Aeronautics
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and Space Administration has entered into in response to
these proposals, also broken down by these four categories.
(4) Each of the studies and reports required by para-
graphs (1), (2), and (3) shall include consideration of the
potential role of State governments as brokers in promoting
commercial participation in the International Space Sta-
tion program.
SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.
(a) AMENDMENTS.—Chapter 701 of title 49, United
States Code, is amended—
(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—
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(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)—
(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) by inserting ‘‘or reentry vehicle’’ after
‘‘means of a launch vehicle’’ in paragraph (8);
(C) by redesignating paragraphs (10), (11),
and (12) as paragraphs (14), (15), and (16), re-
spectively;
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(D) by inserting after paragraph (10) the
following new paragraphs:
‘‘(10) ‘reenter’ and ‘reentry’ mean to return or
attempt to return 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
Earth orbit or outer space to Earth, substantially in-
tact.’’; and
(E) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ each place it appears in para-
graph (15), as so redesignated by subparagraph
(C) of this paragraph;
(4) in section 70103(b)—
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(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 re-
entries’’;
(B) by inserting ‘‘or reentry site, or to reen-
ter 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’’;
(ii) by inserting ‘‘or reenter’’ after
‘‘may launch’’; and
(iii) by inserting ‘‘or reentering’’ after
‘‘related to launching’’; and
(E) in subsection (c)—
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(i) by amending the subsection heading
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
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,
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reentry vehicles, safety systems, processes, services, or per-
sonnel 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 sub-
section (b)(2)(C) and inserting in lieu thereof ‘‘;
and’’;
(H) by adding at the end of subsection
(b)(2) the following new subparagraph:
‘‘(D) regulations establishing criteria for accept-
ing or rejecting an application for a license under
this chapter within 60 days after receipt of such ap-
plication.’’; and
(I) by inserting ‘‘, including the require-
ment to obtain a license,’’ after ‘‘waive a require-
ment’’ in subsection (b)(3);
(7) in section 70106(a)—
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(A) by inserting ‘‘or reentry site’’ after ‘‘ob-
server 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 ‘‘operation
of a launch site’’; and
(ii) by inserting ‘‘or reentry’’ after
‘‘launch or operation’’;
(9) in section 70109—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70109. Preemption of scheduled launches or reen-
tries’’;
(B) in subsection (a)—
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(i) by inserting ‘‘or reentry’’ after ‘‘en-
sure that a launch’’;
(ii) by inserting ‘‘, reentry site,’’ after
‘‘United States Government launch site’’;
(iii) by inserting ‘‘or reentry date com-
mitment’’ after ‘‘launch date commitment’’;
(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—
(A) by inserting ‘‘or reentry’’ after ‘‘prevent
the launch’’ in subsection (a)(2); and
(B) by inserting ‘‘or reentry site, or reentry
of a reentry vehicle,’’ after ‘‘operation of a
launch site’’ in subsection (a)(3)(B);
(11) in section 70111—
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(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 striking ‘‘source.’’ in subsection
(a)(2) and inserting ‘‘source, whether such source
is located on or off a Federal range.’’;
(E) by inserting ‘‘or reentry’’ after ‘‘com-
mercial launch’’ both places it appears in sub-
section (b)(1);
(F) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ in subsection (b)(2)(C);
(G) 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.’’;
(H) by striking ‘‘or its payload for launch’’
in subsection (d) and inserting in lieu thereof
‘‘or reentry vehicle, or the payload of either, for
launch or reentry’’; and
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(I) 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 ‘‘carried
out under the’’ in paragraphs (1) and (2) of sub-
section (b);
(G) by striking ‘‘, Space, and Technology’’
in subsection (d)(1);
(H) by inserting ‘‘OR REENTRIES’’ after
‘‘LAUNCHES’’ in the heading for subsection (e);
(I) by inserting ‘‘or reentry site or a re-
entry’’ after ‘‘launch site’’ in subsection (e); and
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(J) in subsection (f), by inserting ‘‘launch
or reentry’’ after ‘‘carried out under a’’;
(13) in section 70113—by inserting ‘‘or reentry’’
after ‘‘one launch’’ each place it appears in para-
graphs (1) and (2) of subsection (d);
(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 reen-
ter 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 IM-
PORT.—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 of
a law controlling exports or imports, except that payloads
launched pursuant to foreign trade zone procedures as pro-
vided for under the Foreign Trade Zones Act (19 U.S.C.
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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, oper-
ation of a launch vehicle or reentry vehicle,
or 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 sec-
tions:
‘‘§ 70120. Regulations
‘‘(a) IN GENERAL.—The Secretary of Transportation,
within 9 months after the date of the enactment of this sec-
tion, 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;
‘‘(2) procedures for requesting and obtaining li-
censes to launch a commercial launch vehicle;
‘‘(3) procedures for requesting and obtaining op-
erator licenses for launch;
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‘‘(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 sec-
tion, 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 op-
erator licenses for reentry; and
‘‘(3) procedures for requesting and obtaining re-
entry site operator licenses.
‘‘§ 70121. Report to Congress
‘‘The Secretary of Transportation shall submit to Con-
gress 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
this chapter and recommendations for legislation that
may further commercial launches and reentries; and
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‘‘(2) reviews the performance of the regulatory
activities and the effectiveness of the Office of Com-
mercial Space Transportation.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
70119 of title 49, United States Code, is amended to read
as follows:
‘‘§ 70119. Authorization of appropriations
‘‘There are authorized to be appropriated to the Sec-
retary of Transportation for the activities of the Office of
the Associate Administrator for Commercial Space Trans-
portation—
‘‘(1) $6,182,000 for the fiscal year ending Sep-
tember 30, 1998;
‘‘(2) $6,275,000 for the fiscal year ending Sep-
tember 30, 1999; and
‘‘(3) $6,600,000 for the fiscal year ending Sep-
tember 30, 2000.’’.
(c) EFFECTIVE DATE.—The amendments made by sub-
section (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).
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SEC. 103. PROMOTION OF UNITED STATES GLOBAL POSI-
TIONING SYSTEM STANDARDS.
(a) FINDING.—The Congress finds that the Global Po-
sitioning 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 sup-
port and sustain the Global Positioning System in a man-
ner that will most effectively contribute to the national secu-
rity, public safety, scientific, and economic interests 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;
(2) enter into international agreements that pro-
mote cooperation with foreign governments and inter-
national organizations to—
(A) establish the Global Positioning System
and its augmentations as an acceptable inter-
national standard; and
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(B) eliminate any foreign barriers to appli-
cations of the Global Positioning System world-
wide; and
(3) provide clear direction and adequate re-
sources to United States representatives so that on an
international basis they can—
(A) achieve and sustain efficient manage-
ment of the electromagnetic spectrum used by the
Global Positioning System; and
(B) protect that spectrum from disruption
and interference.
SEC. 104. ACQUISITION OF SPACE SCIENCE DATA.
(a) ACQUISITION FROM COMMERCIAL PROVIDERS.—In
order to satisfy the scientific and educational requirements
of the National Aeronautics and Space Administration, and
where practicable of other Federal agencies and scientific
researchers, 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, United
States Code), except that space science data shall be consid-
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ered to be a commercial item for purposes of such laws and
regulations. Nothing in this subsection shall be construed
to preclude the United States from acquiring sufficient
rights in data to meet the needs of the scientific and edu-
cational community or the needs of other government activi-
ties.
(c) DEFINITION.—For purposes of this section, the
term ‘‘space science data’’ includes scientific data concern-
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 standards.
(e) LIMITATION.—This section does not authorize the
National Aeronautics and Space Administration to provide
financial assistance for the development of commercial sys-
tems for the collection of space science data.
SEC. 105. 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 headquarters
in Washington, D.C.
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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;
(2) to secure its national interests the United
States must nurture a commercial remote sensing in-
dustry 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 Govern-
ment to create domestic and international conditions
favorable to the health and growth of the United
States commercial remote sensing industry;
(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; and
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(6) it is fundamental that the states be able to
deploy and utilize this technology in their land man-
agement responsibilities. To date, very few states have
the ability to do so without engaging the academic in-
stitutions within their boundaries. In order to develop
a market for the commercial sector, the states must
have the capacity to fully utilize the technology.
(b) AMENDMENTS.—The Land Remote Sensing Policy
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.’’;
(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 strik-
ing ‘‘determining the design’’ and all that follows
through ‘‘international consortium’’ and insert-
ing in lieu thereof ‘‘ensuring the continuity of
Landsat quality data’’; and
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(D) by adding at the end the following new
paragraphs:
‘‘(16) The United States should encourage remote
sensing systems to promote access to land remote sens-
ing data by scientific researchers and educators.
‘‘(17) It is in the best interest of the United
States to encourage remote sensing systems whether
privately-funded or publicly-funded, to promote wide-
spread affordable access to unenhanced land remote
sensing data by scientific researchers and educators
and to allow such users appropriate rights for redis-
tribution for scientific and educational noncommer-
cial purposes.’’;
(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 SE-
CURITY.—’’ in subsection (b);
(B) in subsection (b)(1), as so redesignated
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 license
if the Secretary determines that the activi-
ties proposed in the application are consist-
ent’’;
(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’’; and
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(iii) by inserting ‘‘and policies’’ after
‘‘international obligations’’;
(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 specific list
of all information required to comprise a complete applica-
tion for a license under this title. An application shall be
considered complete when the applicant has provided all in-
formation required by the list most recently published in
the Federal Register before the date the application was first
submitted. Unless the Secretary has, within 30 days after
receipt of an application, notified the applicant of informa-
tion necessary to complete an application, the Secretary
may not deny the application on the basis of the absence
of any such information.’’; and
(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 pending
issues and actions required to be carried out by
the applicant or the Secretary in order to result
in the granting of a license.’’;
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(4) in section 202 (15 U.S.C. 5622)—
(A) by striking ‘‘section 506’’ in subsection
(b)(1) and inserting in lieu thereof ‘‘section
507’’;
(B) in subsection (b)(2), by striking ‘‘as
soon as such data are available and on reason-
able terms and conditions’’ and inserting in lieu
thereof ‘‘on reasonable terms and conditions, in-
cluding the provision of such data in a timely
manner subject to United States national secu-
rity and foreign policy interests’’;
(C) in subsection (b)(6), by striking ‘‘any
agreement’’ and all that follows through ‘‘nations
or entities’’ and inserting in lieu thereof ‘‘any
significant or substantial agreement’’; and
(D) by inserting after paragraph (6) of sub-
section (b) the following:
‘‘The Secretary may not seek to enjoin a company from en-
tering into a foreign agreement the Secretary receives notifi-
cation of under paragraph (6) unless the Secretary has,
within 30 days after receipt of such notification, transmit-
ted to the licensee a statement that such agreement is incon-
sistent with the national security, foreign policy, or inter-
national obligations of the United States, including an ex-
planation of such inconsistency.’’;
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(5) in section 203(a)(2) (15 U.S.C. 5623(a)(2)),
by striking ‘‘under this title and’’ and inserting in
lieu thereof ‘‘under this title or’’;
(6) in section 204 (15 U.S.C. 5624), by striking
‘‘may’’ and inserting in lieu thereof ‘‘shall’’;
(7) in section 205(c) (15 U.S.C. 5625(c)), by
striking ‘‘if such remote sensing space system is li-
censed by the Secretary before commencing operation’’
and inserting in lieu thereof ‘‘if such private remote
sensing space system will be licensed by the Secretary
before commencing its commercial operation’’;
(8) by adding at the end of title II the following
new section:
‘‘SEC. 206. NOTIFICATION.
‘‘(a) LIMITATIONS ON LICENSEE.—Not later than 30
days after a determination by the Secretary to require a
licensee to limit collection or distribution of data from a
system licensed under this title, the Secretary shall provide
written notification to Congress of such determination, in-
cluding the reasons therefor, the limitations imposed on 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 deter-
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mination 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 activi-
ties under this section which duplicate activities available
from the United States commercial sector, unless such ac-
tivities would result in significant cost savings to the Fed-
eral Government, or are necessary for reasons of national
security or international obligations or policies.’’;
(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-
tion program carried out pursuant to section
303,’’; and
(C) by striking subsection (b);
(11) by repealing section 303 (15 U.S.C. 5633);
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(12) in section 401(b)(3) (15 U.S.C. 5641(b)(3)),
by striking ‘‘, including any such enhancements devel-
oped under the technology demonstration 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 secu-
rity. The Secretary of Defense shall be responsible for deter-
mining those conditions, consistent with this Act, necessary
to meet national security concerns of the United States, and
for notifying the Secretary promptly of such conditions. The
Secretary of Defense shall convey to the Secretary the deter-
minations for a license issued under title II, consistent with
this Act, that the Secretary of Defense determines necessary
to meet the national security concerns of the United
States.’’;
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(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 Secretary
of State on all matters under title II affecting international
obligations and policies of the United States. The Secretary
of State shall be responsible for determining those condi-
tions, consistent with this Act, necessary to meet inter-
national obligations and policies of the United States and
for notifying the Secretary promptly of such conditions. The
Secretary of State shall convey to the Secretary the deter-
minations for a license issued under title II, consistent with
this Act, that the Secretary of State determines necessary
to meet the international obligations and policies of the
United States.
‘‘(2) Appropriate United States Government agencies
are authorized and encouraged to provide to developing na-
tions, as a component of international aid, resources for
purchasing remote sensing data, training, and analysis
from commercial providers. National Aeronautics and
Space Administration, United States Geological Survey,
and National Oceanic and Atmospheric Administration
should develop and implement a program to aid the transfer
of remote sensing technology and Mission to Planet Earth
(OES) science at the state level’’; and
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(C) in subsection (d), by striking ‘‘Secretary
may require’’ and inserting in lieu thereof ‘‘Sec-
retary shall, where appropriate, require’’.
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 and educational requirements of the
National Aeronautics and Space Administration, and
where appropriate of other Federal agencies and scientific
researchers, the Administrator shall to the maximum extent
possible acquire, where cost-effective, space-based and air-
borne Earth remote sensing data, services, distribution, and
applications from a commercial provider.
(b) TREATMENT AS COMMERCIAL ITEM UNDER ACQUI-
SITION LAWS.—Acquisitions by the Administrator of the
data, services, distribution, and applications referred to in
subsection (a) shall be carried out in accordance with appli-
cable acquisition laws and regulations (including chapters
137 and 140 of title 10, United States Code), except that
such data, services, distribution, and applications shall be
considered to be a commercial item for purposes of such
laws and regulations. Nothing in this subsection shall be
construed to preclude the United States from acquiring suf-
ficient rights in data to meet the needs of the scientific and
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educational community or the needs of other government
activities.
(c) SAFETY STANDARDS.—Nothing in this section shall
be construed to prohibit the Federal Government from re-
quiring compliance with applicable safety standards.
(d) ADMINISTRATION AND EXECUTION.—This section
shall be carried out as part of the Commercial Remote Sens-
ing 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 pro-
viders whenever such services are required in the course of
its activities. To the maximum extent practicable, the Fed-
eral Government shall plan missions to accommodate 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 Administrator
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or, in the case of a national security issue, the Secretary
of the Air Force, determines that—
(1) a payload requires the unique capabilities of
the Space Shuttle;
(2) cost effective space transportation services
that meet specific mission requirements would not be
reasonably available from United States commercial
providers when required;
(3) the use of space transportation services from
United States commercial providers poses an unac-
ceptable risk of loss of a unique scientific opportunity;
(4) the use of space transportation services from
United States commercial providers is inconsistent
with national security objectives;
(5) the use of space transportation services from
United States commercial providers is inconsistent
with foreign policy purposes, or launch of the payload
by a foreign entity serves foreign policy purposes;
(6) it is more cost effective to transport a pay-
load in conjunction with a test or demonstration of
a space transportation vehicle owned by the Federal
Government; or
(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
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requirements of research, development, demonstration,
scientific, commercial, and educational programs au-
thorized by the Administrator.
(c) DELAYED EFFECT.—Subsection (a) shall not apply
to space transportation services and space transportation
vehicles acquired or owned by the Federal Government be-
fore the date of the enactment of this Act, or with respect
to which a contract for such acquisition or ownership has
been entered into before such date.
(d) HISTORICAL PURPOSES.—This section shall not be
construed to prohibit the Federal Government from acquir-
ing, owning, or maintaining space transportation vehicles
solely for historical display purposes.
SEC. 302. ACQUISITION OF COMMERCIAL SPACE TRANSPOR-
TATION SERVICES.
(a) TREATMENT OF COMMERCIAL SPACE TRANSPOR-
TATION SERVICES AS COMMERCIAL ITEM UNDER ACQUISI-
TION LAWS.—Acquisitions of space transportation services
by the Federal Government shall be carried out in accord-
ance with applicable acquisition laws and regulations (in-
cluding 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.
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(b) SAFETY STANDARDS.—Nothing in this section shall
be construed to prohibit the Federal Government from re-
quiring compliance with applicable safety standards.
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 op-
eration, or Federal management of contracted operation, of
space transportation systems to the Federal purchase of
commercial space transportation services for all non-
emergency launch requirements, including human, cargo,
and mixed payloads. In those preparations, the Adminis-
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trator shall take into account the need for short-term econo-
mies, as well as the goal of restoring the National Aero-
nautics and Space Administration’s research focus and its
mandate to promote the fullest possible commercial use of
space. As part of those preparations, the Administrator
shall plan for the potential privatization of the Space Shut-
tle program. Such plan shall keep safety and cost effective-
ness as high priorities. Nothing in this section shall prohibit
the National Aeronautics and Space Administration from
studying, designing, developing, or funding upgrades or
modifications essential to the safe and economical 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 or-
biters and ground facilities;
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(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;
(3) whether payloads other than National Aero-
nautics and Space Administration payloads should be
allowed to be launched on the Space Shuttle, how mis-
sions 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 wheth-
er any classes of payloads should be made ineligible
for launch consideration;
(5) whether National Aeronautics and Space Ad-
ministration and other Federal Government payloads
should have priority over non-Federal payloads in the
Space Shuttle launch assignments, and what policies
should be developed to prioritize among payloads gen-
erally;
(6) whether the public interest requires that cer-
tain Space Shuttle functions continue to be performed
by the Federal Government; and
(7) how much cost savings, if any, will be gen-
erated by privatization of the Space Shuttle.