[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1702 Enrolled Bill (ENR)]

        H.R.1702

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commercial Space 
Act of 1998''.
    (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.
Sec. 107. Sources of Earth science data.

     TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 201. Requirement to procure commercial space transportation 
          services.
Sec. 202. Acquisition of commercial space transportation services.
Sec. 203. Launch Services Purchase Act of 1990 amendments.
Sec. 204. Shuttle privatization.
Sec. 205. Use of excess intercontinental ballistic missiles.
Sec. 206. National launch capability study.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
        (1) the term ``Administrator'' means the Administrator 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;
        (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 adapted for 
    that payload;
        (4) the term ``space-related activities'' includes research and 
    development, manufacturing, processing, service, and other 
    associated and support activities;
        (5) the term ``space transportation services'' means the 
    preparation of a space transportation vehicle 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 operating in, or transporting a 
    payload to, from, or within, outer space, or in suborbital 
    trajectory, and includes 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 commonwealth, territory, or 
    possession of the United States; and
        (8) the term ``United States commercial provider'' 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 evidenced a 
            substantial commitment to the United States market 
            through--

                    (I) investments in the United States in long-term 
                research, development, 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 organized, and, if appropriate, 
            in which it principally conducts its business, affords 
            reciprocal treatment to companies described in subparagraph 
            (A) comparable to that afforded to such foreign company's 
            subsidiary in the United States, as evidenced by--

                    (I) providing comparable opportunities 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 effective protection 
                for the intellectual property rights of companies 
                described in subparagraph (A).

          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

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 development, 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 
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 Transportation of the Senate, within 90 days 
after the date of the enactment of this Act, a study that identifies 
and examines--
        (A) the opportunities for commercial providers to play a role 
    in International Space Station activities, including operation, 
    use, servicing, and augmentation;
        (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 subparagraph (A) 
    the Administrator plans to make available to commercial providers 
    in fiscal years 1999 and 2000;
        (D) the specific policies and initiatives the Administrator 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 Committee 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 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 paragraph (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 budget request for fiscal year 
2000, a report detailing how many proposals (whether solicited or not) 
the National Aeronautics and Space Administration received during 
calendar years 1997 and 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 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 paragraphs (1), 
(2), and (3) shall include consideration of the potential role of State 
governments as brokers in promoting commercial participation in the 
International Space Station 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 section 70104 to read 
        as follows:

``70104. Restrictions on launches, operations, and reentries.'';

            (B) by amending the item relating to section 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 section 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 ``launching'' 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);
            (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 ``conduct of 
        commercial launch'' in subsection (b)(3);
            (M) by striking ``launch'' after ``and transfer 
        commercial'' in subsection (b)(3); and
            (N) by inserting ``and development of reentry sites,'' 
        after ``launch-site support facilities,'' 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 activities 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), respectively;
            (D) 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 Earth orbit or outer space to 
    Earth, substantially intact.''; and
            (E) by inserting ``or reentry services'' after ``launch 
        services'' each place it appears in paragraph (15), as so 
        redesignated by subparagraph (C) 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:

``Sec. 70104. Restrictions on launches, operations, and reentries'';

            (B) by inserting ``or reentry site, or to reenter 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)--
                (i) byamendingthesubsectionheadingtoreadasfollows: 
            ``PreventingLaunchesandReentries.--'';
                (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 inserting 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 Representatives 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, reentry vehicles, 
safety systems, processes, services, 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 inserting in lieu 
        thereof ``, operation, or reentry'' in subsection (b)(2)(A);
            (F) by striking ``and'' at the end of subsection (b)(2)(B);
            (G) by striking the period at the end of subsection 
        (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 accepting or 
    rejecting an application for a license under this chapter within 60 
    days after receipt of such application.''; and
            (I) by inserting ``, including the requirement to obtain a 
        license,'' after ``waive a requirement'' 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:

``Sec. 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 reentry 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:

``Sec. 70109. Preemption of scheduled launches or reentries'';

            (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 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 reentry'' 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--
            (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 ``commercial launch'' 
        both places it appears in subsection (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
            (I) by inserting ``, reentry vehicle,'' after 
        ``manufacturer of the launch vehicle'' in subsection (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 subsection (b);
            (F) by inserting ``applicable'' after ``carried out under 
        the'' in paragraphs (1) and (2) of subsection (b);
            (G) by inserting ``or Reentries'' after ``Launches'' in the 
        heading for subsection (e);
            (H) by inserting ``or reentry site or a reentry'' after 
        ``launch site'' in subsection (e); and
            (I) 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 reenter a reentry 
        vehicle'' after ``operate a launch site'' in subsection (a);
            (B) by inserting ``or reentry'' after ``approval 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 of a law controlling exports or imports, 
except that payloads 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, operation of a launch vehicle or reentry 
            vehicle, 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:

``Sec. 70120. Regulations

    ``(a) In General.--The Secretary of Transportation, 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 governments to obtain 
    sufficient insurance coverage for potential damages to third 
    parties;
        ``(2) procedures for requesting and obtaining licenses 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 government 
    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 licenses 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.

``Sec. 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 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 Commercial Space 
    Transportation.''.
    (b) Authorization of Appropriations.--Section 70119 of title 49, 
United States Code, is amended to read as follows:

``Sec. 70119. Authorization of appropriations

    ``There are authorized to be appropriated to the Secretary of 
Transportation for the activities of the Office of the Associate 
Administrator for Commercial Space Transportation--
        ``(1) $6,275,000 for the fiscal year ending September 30, 1999; 
    and
        ``(2) $6,600,000 for the fiscal year ending September 30, 
    2000.''.
    (c) 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.

SEC. 104. PROMOTION OF UNITED STATES GLOBAL POSITIONING 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 national security, public safety, scientific, and 
economic interests of the United States, the Congress encourages the 
President to--
        (1) ensure the operation of the Global Positioning System on a 
    continuous worldwide basis free of direct user fees;
        (2) enter into international agreements that promote 
    cooperation with foreign governments and international 
    organizations to--
            (A) establish the Global Positioning System and its 
        augmentations as an acceptable international standard; and
            (B) eliminate any foreign barriers to applications of the 
        Global Positioning System worldwide; and
        (3) provide clear direction and adequate resources to the 
    Assistant Secretary of Commerce for Communications and Information 
    so that on an international basis the Assistant Secretary can--
            (A) achieve and sustain efficient management of the 
        electromagnetic spectrum used by the Global Positioning System; 
        and
            (B) protect that spectrum from disruption and interference.

SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.

    (a) Acquisition From Commercial Providers.--The Administrator 
shall, to the extent possible and while satisfying the scientific or 
educational requirements of the National Aeronautics and Space 
Administration, and where appropriate, of other Federal agencies and 
scientific researchers, acquire, where cost effective, space science 
data from a commercial provider.
    (b) Treatment of Space Science Data as Commercial Item Under 
Acquisition Laws.--Acquisitions of space science data by the 
Administrator shall be carried out in accordance with applicable 
acquisition laws and regulations (including chapters 137 and 140 of 
title 10, United States Code). For purposes of such law and 
regulations, space science data shall be considered to be a commercial 
item. Nothing in this subsection shall be construed to preclude the 
United States from acquiring, through contracts with commercial 
providers, sufficient rights in data to meet the needs of the 
scientific and educational community or the needs of other government 
activities.
    (c) Definition.--For purposes of this section, the term ``space 
science data'' includes scientific data concerning--
        (1) the elemental and mineralogical resources of the moon, 
    asteroids, planets and their moons, and comets;
        (2) microgravity acceleration; and
        (3) 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 systems for the collection of space 
science data.

SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CENTERS.

    The Administrator shall administer the Commercial Space Center 
program in a coordinated manner from National Aeronautics and Space 
Administration headquarters in Washington, D.C.

SEC. 107. SOURCES OF EARTH SCIENCE DATA.

    (a) Acquisition.--The Administrator shall, to the extent possible 
and while satisfying the scientific or educational requirements of the 
National Aeronautics and Space Administration, and where appropriate, 
of other Federal agencies and scientific researchers, acquire, where 
cost-effective, space-based and airborne Earth remote sensing data, 
services, distribution, and applications from a commercial provider.
    (b) Treatment as Commercial Item Under Acquisition 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). For purposes of 
such law and regulations, such data, services, distribution, and 
applications shall be considered to be a commercial item. Nothing in 
this subsection shall be construed to preclude the United States from 
acquiring, through contracts with commercial providers, sufficient 
rights in data to meet the needs of the scientific and educational 
community or the needs of other government activities.
    (c) Study.--(1) The Administrator shall conduct a study to 
determine the extent to which the baseline scientific requirements of 
Earth Science can be met by commercial providers, and how the National 
Aeronautics and Space Administration will meet such requirements 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 Aeronautics and Space Administration 
    to commercial providers to enable commercial providers to better 
    meet the baseline scientific requirements of Earth Science;
        (B) make recommendations to promote the dissemination 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 recommendations 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.
    (d) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety standards.
    (e) Administration and Execution.--This section shall be carried 
out as part of the Commercial Remote Sensing Program at the Stennis 
Space Center.
    (f) Remote Sensing.--
        (1) Application contents.--Section 201(b) of the Land Remote 
    Sensing Policy Act of 1992 (15 U.S.C. 5621(b)) is amended--
            (A) by inserting ``(1)'' after ``National Security.--''; 
        and
            (B) by adding at the end the following new paragraph:
    ``(2) The Secretary, within 6 months after the date of the 
enactment of the Commercial Space Act of 1998, shall publish in the 
Federal Register a complete and specific 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 provided all information 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 information necessary to 
complete an application, the Secretary may not deny the application on 
the basis of the absence of any such information.''.
        (2) Notification of agreements.--Section 202(b)(6) of the Land 
    Remote Sensing Policy Act of 1992 (15 U.S.C. 5622(b)(6)) is amended 
    by inserting ``significant or substantial'' after ``Secretary of 
    any''.

     TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

SEC. 201. 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 practicable, the 
Federal 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 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 unacceptable 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 international agreements 
    for international collaborative efforts relating to science and 
    technology;
        (6) it is more cost effective to transport a payload 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 secondary payload, and such payload is 
    consistent with the requirements of research, development, 
    demonstration, scientific, commercial, and educational programs 
    authorized by the Administrator.
Nothing in this section shall prevent the Administrator from planning 
or negotiating agreements with foreign entities for the launch of 
Federal Government payloads for international collaborative efforts 
relating to science and technology.
    (c) Delayed Effect.--Subsection (a) shall not apply to space 
transportation services and space transportation vehicles acquired or 
owned by the Federal Government before 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 acquiring, owning, or maintaining 
space transportation vehicles solely for historical display purposes.

SEC. 202. ACQUISITION OF COMMERCIAL SPACE TRANSPORTATION SERVICES.

    (a) Treatment of Commercial Space Transportation Services as 
Commercial Item Under Acquisition Laws.--Acquisitions of space 
transportation services by the Federal Government shall be carried out 
in accordance with applicable acquisition laws and regulations 
(including chapters 137 and 140 of title 10, United States Code). For 
purposes of such law and regulations, space transportation services 
shall be considered to be a commercial item.
    (b) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety standards.

SEC. 203. 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 Payloads on the Space 
        Shuttle.--''; and
            (B) by striking subsection (b).

SEC. 204. SHUTTLE PRIVATIZATION.

    (a) Policy and Preparation.--The Administrator shall prepare for an 
orderly transition from the Federal operation, or Federal management of 
contracted operation, of space transportation systems to the Federal 
purchase of commercial space transportation services for all 
nonemergency space transportation requirements for transportation to 
and from Earth orbit, including human, cargo, and mixed payloads. In 
those preparations, the Administrator 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 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 Shuttle program. Such plan shall keep safety 
and cost effectiveness 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 recommendation of the Independent 
Shuttle Management Review Team that the National Aeronautics and Space 
Administration 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 indemnify 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 Aeronautics 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 allowed to be 
    launched on the Space Shuttle and whether any classes of payloads 
    should be made ineligible for launch consideration;
        (5) whether National Aeronautics and Space Administration 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 
    generally;
        (6) whether the public interest requires that certain Space 
    Shuttle functions continue to be performed by the Federal 
    Government; and
        (7) how much cost savings, if any, will be generated by 
    privatization of the Space Shuttle.
    (c) Report to Congress.--Within 60 days after the date of the 
enactment of this Act, the National Aeronautics 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 Transportation of the Senate and the Committee on Science 
of the House of Representatives.

SEC. 205. USE OF EXCESS INTERCONTINENTAL BALLISTIC MISSILES.

    (a) In general.--The Federal Government shall not--
        (1) convert any missile described in subsection (c) to a space 
    transportation vehicle configuration; or
        (2) transfer ownership of any such missile to another person, 
    except as provided in subsection (b).
    (b) Authorized Federal Uses.--(1) A missile described in subsection 
(c) may be converted for use as a space transportation vehicle by the 
Federal Government if, except as provided in paragraph (2) and at least 
30 days before such conversion, the agency seeking to use the missile 
as a space transportation vehicle transmits to the Committee on 
National Security and the Committee on Science of the House of 
Representatives, and to the Committee on Armed Services and the 
Committee on Commerce, Science, and Transportation of the Senate, a 
certification that the use of such missile--
        (A) would result in cost savings to the Federal Government when 
    compared to the cost of acquiring space transportation services 
    from United States commercial providers;
        (B) meets all mission requirements of the agency, including 
    performance, schedule, and risk requirements;
        (C) is consistent with international obligations of the United 
    States; and
        (D) is approved by the Secretary of Defense or his designee.
    (2) The requirement under paragraph (1) that the certification 
described in that paragraph must be transmitted at least 30 days before 
conversion of the missile shall not apply if the Secretary of Defense 
determines that compliance with that requirement would be inconsistent 
with meeting immediate national security requirements.
    (c) Missiles Referred to.-- The missiles referred to in this 
section are missiles owned by the United States that--
        (1) were formerly used by the Department of Defense for 
    national defense purposes as intercontinental ballistic missiles; 
    and
        (2) have been declared excess to United States national defense 
    needs and are in compliance with international obligations of the 
    United States.

SEC. 206. NATIONAL LAUNCH CAPABILITY STUDY.

    (a) Findings.--Congress finds that a robust satellite and launch 
industry in the United States serves the interest of the United States 
by--
        (1) contributing to the economy of the United States;
        (2) strengthening employment, technological, and scientific 
    interests of the United States; and
        (3) serving the foreign policy and national security interests 
    of the United States.
    (b) Definitions.--In this section:
        (1) Secretary.--The term ``Secretary'' means the Secretary of 
    Defense.
        (2) Total potential national mission model.--The term ``total 
    potential national mission model'' means a model that--
            (A) is determined by the Secretary, in consultation with 
        the Administrator, to assess the total potential space missions 
        to be conducted in the United States during a specified period 
        of time; and
            (B) includes all launches in the United States (including 
        launches conducted on or off a Federal range).
    (c) Report.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary shall, in consultation with 
    the Administrator and appropriate representatives of the satellite 
    and launch industry and the governments of States and political 
    subdivisions thereof--
            (A) prepare a report that meets the requirements of this 
        subsection; and
            (B) submit that report to the Committee on Commerce, 
        Science, and Transportation of the Senate and the Committee on 
        Science of the House of Representatives.
        (2) Requirements for report.--The report prepared under this 
    subsection shall--
            (A) identify the total potential national mission model for 
        the period beginning on the date of the report and ending on 
        December 31, 2007;
            (B) identify the resources that are necessary or available 
        to carry out the total potential national mission model 
        described in subparagraph (A), including--
                (i) launch property and services of the Department of 
            Defense, the National Aeronautics and Space Administration, 
            and non-Federal facilities; and
                (ii) the ability to support commercial launch-on-demand 
            on short notification, taking into account Federal 
            requirements, at launch sites or test ranges in the United 
            States;
            (C) identify each deficiency in the resources referred to 
        in subparagraph (B); and
            (D) with respect to the deficiencies identified under 
        subparagraph (C), include estimates of the level of funding 
        necessary to address those deficiencies for the period 
        described in subparagraph (A).
    (d) Recommendations.--Based on the reports under subsection (c), 
the Secretary, after consultation with the Secretary of Transportation, 
the Secretary of Commerce, and representatives from interested private 
sector entities, States, and local governments, shall--
        (1) identify opportunities for investment by non-Federal 
    entities (including States and political subdivisions thereof and 
    private sector entities) to assist the Federal Government in 
    providing launch capabilities for the commercial space industry in 
    the United States;
        (2) identify one or more methods by which, if sufficient 
    resources referred to in subsection (c)(2)(D) are not available to 
    the Department of Defense and the National Aeronautics and Space 
    Administration, the control of the launch property and launch 
    services of the Department of Defense and the National Aeronautics 
    and Space Administration may be transferred from the Department of 
    Defense and the National Aeronautics and Space Administration to--
            (A) one or more other Federal agencies;
            (B) one or more States (or subdivisions thereof);
            (C) one or more private sector entities; or
            (D) any combination of the entities described in 
        subparagraphs (A) through (C); and
        (3) identify the technical, structural, and legal impediments 
    associated with making launch sites or test ranges in the United 
    States viable and competitive.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.