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107TH CONGRESS
1ST SESSION
H. R. 2443
To promote the development of the United States space tourism industry,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 10, 2001
Mr. LAMPSON introduced the following bill; which was referred to the Com-
mittee on Science, and in addition to the Committee on Ways and Means,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To promote the development of the United States space
tourism industry, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Space Tourism Pro-
motion Act of 2001’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) humans have long had a yearning to travel
in space and experience conditions beyond Earth’s
atmosphere;
(2) forty years of human space flight experience
have demonstrated the feasibility of safe travel to
and from space as well as the ability of humans to
live and work in space;
(3) the Nation’s human space flight program
has developed technologies and operational proce-
dures that the private sector could make use of to
enable American citizens to experience space travel;
(4) space tourism has the potential to become
a significant industry and a powerful stimulus for
advances in space transportation;
(5) the Federal Government could play an im-
portant role in stimulating the development of space
tourism by means of guaranteed loans, tax credits,
expeditious establishment of a straightforward and
predictable regulatory structure, and research and
development in technologies that may enable the pri-
vate sector to develop operational passenger-carrying
space transportation systems and on-orbit habi-
tations;
(6) as the agency of the Federal Government
primarily responsible for the development of Amer-
ica’s commercial sector, the Department of Com-
merce, and in particular its Office of Space Com-
mercialization, should have the lead role in encour-
aging the growth of space tourism;
(7) as the agency of the Federal Government
currently responsible for regulating America’s com-
mercial space transportation industry, the Federal
Aviation Administration, and in particular its Office
of Commercial Space Transportation, should have
the lead role in establishing the regulatory structure
necessary to ensure the safety of United States
space tourism;
(8) as the agency of the Federal Government
responsible for carrying out the major share of the
Nation’s civil space activities, the National Aero-
nautics and Space Administration should continue
its traditional role of conducting research and devel-
opment related to new space technologies and sys-
tems and facilitating their transfer to the private
sector;
(9) it is an appropriate role for the Federal
Government to undertake measures to encourage the
development of space tourism in the United States;
and
(10) at the same time, it is an inappropriate
role and a misallocation of taxpayer-provided re-
sources for the Federal Government to compete with
the private sector in the provision of transportation
vehicles or facilities for space tourism.
SEC. 3. DEFINITIONS.
In this Act—
(1) terms that are defined in the Federal Credit
Reform Act of 1990 have the meaning given those
terms in that Act; and
(2) the term ‘‘space tourism’’ means travel to,
from, or within outer space, or to the surface of a
body in space other than Earth, or habitation in
outer space, for the purpose of recreation.
SEC. 4. LOAN GUARANTEES.
(a) AUTHORITY.—
(1) IN GENERAL.—The Secretary of Commerce
may guarantee up to 85 percent of the value of
loans for the purpose of developing transportation
systems, habitation facilities, or other infrastructure
required for space tourism.
(2) LIMITATION.—The maximum aggregate
amount of loan commitments that may be guaran-
teed under this section by the Secretary of Com-
merce at any one time shall be $2,000,000,000.
(3) ADMINISTRATIVE FEE.—The Secretary of
Commerce is authorized to collect from any bor-
rower, and to the extent provided for in advance in
appropriations Acts to use, an amount not to exceed
0.5 percent of the amount borrowed, for covering the
administrative expenses and other annual costs to
the Department of Commerce of the loan guarantee.
(b) TERMS AND CONDITIONS.—A loan guaranteed
under this section shall be on such terms and conditions
as the Secretary of Commerce may prescribe.
(c) TERM OF LOANS.—Loans guaranteed under this
section shall be for a term of not to exceed 20 years, or
100 percent of the useful life of the substantial portion
of the physical assets to be financed by the loans, which-
ever is shorter, as determined by the Secretary of Com-
merce.
(d) LIEN ON INTERESTS IN ASSETS.—Upon pro-
viding a loan guarantee to a borrower under this section,
the Secretary of Commerce shall have liens which shall
be superior to all other liens on assets of the borrower
equal to 85 percent of the unpaid balance of the loan sub-
ject to the guarantee.
(e) PROTECTION.—No loan shall be guaranteed
under this section unless the Secretary of Commerce de-
termines that the borrower is responsible and that ade-
quate provision is made for servicing the loan on reason-
able terms and for protecting the interests of the United
States.
(f) VALIDITY.—A loan guarantee under this section
shall be conclusive evidence that such guarantee has been
properly obtained, and that the underlying loan qualifies
for such guarantee. In an action for fraud or material mis-
representation by the holder of a loan guaranteed under
this section, such guarantee shall be presumed to be valid,
legal, and enforceable.
(g) FORBEARANCE.—The Secretary of Commerce
may approve an agreement, between the parties to a loan
guaranteed under this section, that provides for forbear-
ance for the benefit of the borrower if the forbearance will
result in no cost to the Federal Government.
(h) ADMINISTRATION
AND OVERSIGHT RESPONSI-
BILITY.—The Office of Space Commercialization shall be
responsible for the administration and oversight of this
section on behalf of the Department of Commerce.
SEC. 5. CAPITAL GAINS EXCLUSION.
(a) IN GENERAL.—Part I of subchapter P of chapter
1 of the Internal Revenue Code of 1986 (relating to items
specifically excluded from gross income) is amended by
adding at the end the following new section:
‘‘SEC. 1203. EXCLUSION OF GAINS FOR QUALIFIED SPACE
TOURISM CORPORATIONS.
‘‘(a) IN GENERAL.—Gross income shall not include
gain on the sale or exchange of any stock of a qualified
space tourism corporation held for more than one year.
‘‘(b) QUALIFIED SPACE TOURISM CORPORATION.—
For purposes of subsection (a), the term ‘qualified space
tourism corporation’ means, with respect to any taxable
year, a domestic corporation which is a C corporation if—
‘‘(1) such corporation is organized exclusively
for providing to unrelated persons any service of
space tourism (as defined in section 3 of the Space
Tourism Promotion Act of 2001), and
‘‘(2) such corporation derives at least 75 per-
cent of its gross receipts from the active conduct of
a trade or business of providing a service described
in paragraph (1).
‘‘(c) CERTAIN PURCHASES BY CORPORATIONS OF ITS
OWN STOCK.—For purposes of this section, rules similar
to the rules of section 1202(c)(3) shall apply.
‘‘(d) RELATED PERSON.—Persons shall be treated as
related to each other if such persons would be treated as
a single employer under the regulations prescribed under
section 52(b). In the case of a corporation which is a mem-
ber of an affiliated group of corporations filing a consoli-
dated return, such corporation shall be treated as pro-
viding services related to space tourism to an unrelated
person if such services are provided to such a person by
another member of such group.
‘‘(e) TERMINATION.—This section shall not apply to
sales or exchanges after December 31, 2011.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part I of subchapter P of such Code is amended by
adding at the end the following new item:
‘‘Sec. 1203. Exclusion of gains for qualified space tourism cor-
porations.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales and exchanges in taxable
years beginning after December 31, 2001.
SEC. 6. ESTABLISHMENT OF REGULATORY STANDARDS.
(a) IN GENERAL.—Not later than 2 years after the
date of the enactment of this Act, the Secretary of Trans-
portation shall issue regulations to govern—
(1) activities necessary to ensure the safe oper-
ation of passenger-carrying launch and reentry vehi-
cles and spacecraft for space tourism, to the extent
to which regulatory procedures have not previously
been established by law; and
(2) activities related to the provision of and safe
operation of habitable facilities in outer space for
space tourism purposes.
(b) ORBITAL DEBRIS AVOIDANCE.—Not later than 2
years after the date of the enactment of this Act, the Sec-
retary of Transportation shall issue regulations to prevent,
to the extent practicable, the growth of orbital debris re-
sulting from activities associated with space tourism.
(c) LEGAL REGIME.—Activities taking place on space
tourism habitation facilities and passenger-carrying
launch and reentry vehicles and spacecraft for space tour-
ism licensed or otherwise regulated by the Secretary of
Transportation shall be governed by the laws of the United
States.
SEC. 7. USE OF FEDERAL FACILITIES.
(a) PROHIBITION AGAINST CERTAIN USES OF FED-
ERAL FACILITIES.—
(1) IN GENERAL.—Launch, reentry, and space
travel vehicles owned by the Federal Government
shall not be used for the transport of any individuals
other than those engaged in or supporting the con-
duct of official business of the United States or the
conduct of scientific or engineering research and de-
velopment, except in emergency situations.
(2) INTERNATIONAL
SPACE
STATION.—The
United States portion of the International Space
Station shall not be visited or occupied by any indi-
viduals other than those engaged in or supporting
the conduct of official business of the United States
or the conduct of scientific or engineering research
and development, and those authorized by relevant
international agreements, except in emergency situa-
tions.
(b) USE OF OTHER FEDERAL FACILITIES.—The use
of other Federal facilities and infrastructure, such as
launch ranges and data relay satellites, shall be made
available to commercial entities engaged in space tourism
on a cost-reimbursable basis to the extent that excess ca-
pacity exists at the time the commercial entity requests
the use of such facilities and infrastructure.
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