[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1702 Referred in Senate (RFS)]

  1st Session
                                H. R. 1702


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 5, 1997

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT


 
  To encourage the development of a commercial space industry in the 
                 United States, and for other purposes.

    Be it enacted by the Senate and House of 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 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Sec. 101. Commercialization of space station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System 
                            standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.
                        TITLE II--REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth science data.
    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 301. Requirement to procure commercial space transportation 
                            services.
Sec. 302. Acquisition of commercial space transportation services.
Sec. 303. Launch Services Purchase Act of 1990 amendments.
Sec. 304. Shuttle privatization.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Administrator'' means the 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 year 1998 and 1999;
            (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 
1999, a report detailing how many proposals (whether solicited or not) 
the National Aeronautics and Space Administration received during 
calendar year 1997 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) in paragraph (5)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as subparagraphs (B) and (C), respectively; 
                        and
                            (ii) by inserting before subparagraph (B), 
                        as so redesignated by clause (i) of this 
                        subparagraph, the following new subparagraph:
                    ``(A) activities directly related to the 
                preparation of a launch site or payload facility for 
                one or more launches;'';
                    (C) by inserting ``or reentry vehicle'' after 
                ``means of a launch vehicle'' in paragraph (8);
                    (D) by redesignating paragraphs (10), (11), and 
                (12) as paragraphs (14), (15), and (16), respectively;
                    (E) by inserting after paragraph (9) the following 
                new paragraphs:
            ``(10) `reenter' and `reentry' mean to return or attempt to 
        return, purposefully, a reentry vehicle and its payload, if 
        any, from Earth orbit or from outer space to Earth.
            ``(11) `reentry services' means--
                    ``(A) activities involved in the preparation of a 
                reentry vehicle and its payload, if any, for reentry; 
                and
                    ``(B) the conduct of a reentry.
            ``(12) `reentry site' means the location on Earth to which 
        a reentry vehicle is intended to return (as defined in a 
        license the Secretary issues or transfers under this chapter).
            ``(13) `reentry vehicle' means a vehicle designed to return 
        from Earth orbit or outer space to Earth, or a reusable launch 
        vehicle designed to return from outer space to Earth, 
        substantially intact.''; and
                    (F) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in paragraph 
                (15), as so redesignated by subparagraph (D) of this 
                paragraph;
            (4) in section 70103(b)--
                    (A) by inserting ``and Reentries'' after 
                ``Launches'' in the subsection heading;
                    (B) by inserting ``and reentries'' after 
                ``commercial space launches'' in paragraph (1); and
                    (C) by inserting ``and reentry'' after ``space 
                launch'' in paragraph (2);
            (5) in section 70104--
                    (A) by amending the section designation and heading 
                to read as follows:
``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) 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 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 inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (F) by inserting after subsection (b)(2) the 
                following new paragraph:
    ``(3) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section by all 
Federal agencies.'';
                    (G) by striking ``or its payload for launch'' in 
                subsection (d) and inserting in lieu thereof ``or 
                reentry vehicle, or the payload of either, for launch 
                or reentry''; and
                    (H) by inserting ``, reentry vehicle,'' after 
                ``manufacturer of the launch vehicle'' in 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 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 reentry'' 
                after ``launch site'' in subsection (e); and
                    (J) in subsection (f), by inserting ``launch or 
                reentry'' after ``carried out under a'';
            (13) in section 70113(a)(1) and (d)(1) and (2), by 
        inserting ``or reentry'' after ``one launch'' each place it 
        appears;
            (14) in section 70115(b)(1)(D)(i)--
                    (A) by inserting ``reentry site,'' after ``launch 
                site,''; and
                    (B) by inserting ``or reentry vehicle'' after 
                ``launch vehicle'' both places it appears;
            (15) in section 70117--
                    (A) by inserting ``or reentry site, or to 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) 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; and
            (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.

SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.

    (a) Acquisition From Commercial Providers.--In order to satisfy the 
scientific 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 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), except that space science data shall be 
considered to be a commercial item for purposes of such laws and 
regulations (including section 2306a of title 10, United States Code 
(relating to cost or pricing data), section 2320 of such title 
(relating to rights in technical data) and section 2321 of such title 
(relating to validation of proprietary data restrictions)).
    (c) Definition.--For purposes of this section, the term ``space 
science data'' includes scientific data concerning the elemental and 
mineralogical resources of the moon, asteroids, planets and their 
moons, and comets, microgravity 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 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.

                        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 economic, employment, 
        technological, scientific, and national security interests of 
        the United States;
            (2) to secure its national interests the United States must 
        nurture a commercial remote sensing industry that leads the 
        world;
            (3) the Federal Government must provide policy and 
        regulations that promote a stable business environment for that 
        industry to succeed and fulfill the national interest;
            (4) it is the responsibility of the Federal Government to 
        create domestic and international conditions favorable to the 
        health and growth of the United States commercial remote 
        sensing industry; and
            (5) it is a fundamental goal of United States policy to 
        support and enhance United States industrial competitiveness in 
        the field of remote sensing, while at the same time protecting 
        the national security concerns and international obligations of 
        the United States.
    (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 redesignating 
                paragraphs (7) through (16) as paragraphs (6) through 
                (15), respectively;
                    (C) in paragraph (11), as so redesignated by 
                subparagraph (B) of this paragraph, by striking 
                ``determining the design'' and all that follows through 
                ``international consortium'' and inserting in lieu 
                thereof ``ensuring the continuity of Landsat quality 
                data''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(16) The United States should encourage remote sensing 
        systems to promote access to land remote sensing data by 
        scientific researchers and educators.'';
            (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);
                            (ii) by striking ``, and'' at the end of 
                        subparagraph (B) and inserting in lieu thereof 
                        a period; and
                            (iii) by striking subparagraph (C);
            (3) in section 201 (15 U.S.C. 5621)--
                    (A) by inserting ``(1)'' after ``National 
                Security.--'' in subsection (b);
                    (B) in subsection (b)(1), as so redesignated by 
                subparagraph (A) of this paragraph--
                            (i) by striking ``No license shall be 
                        granted by the Secretary unless the Secretary 
                        determines in writing that the applicant will 
                        comply'' and inserting in lieu thereof ``The 
                        Secretary shall grant a license if the 
                        Secretary determines that the activities 
                        proposed in the application are consistent''; 
                        and
                            (ii) by inserting ``, and that the 
                        applicant has provided assurances adequate to 
                        indicate, in combination with other information 
                        available to the Secretary that is relevant to 
                        activities proposed in the application, that 
                        the applicant will comply with all terms of the 
                        license'' after ``concerns of the United 
                        States'';
                    (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 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.'';
                    (D) in subsection (c), by amending the second 
                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.''; and
                    (E) in subsection (e)(2)(B), by striking ``and the 
                importance of promoting widespread access to remote 
                sensing data from United States and foreign systems'';
            (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 reasonable terms and 
                conditions'' and inserting in lieu thereof ``on 
                reasonable terms and conditions, including the 
                provision of such data in a timely manner subject to 
                United States national security 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 with new foreign 
                customers''; and
                    (D) by inserting after paragraph (6) of subsection 
                (b) the following:
``The Secretary may not seek to enjoin a company from entering into a 
foreign agreement the Secretary receives notification of under 
paragraph (6) unless the Secretary has, within 30 days after receipt of 
such notification, transmitted to the licensee a statement that such 
agreement is inconsistent with the national security or international 
obligations of the United States, including an explanation of such 
inconsistency.'';
            (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 and/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 licensed 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, including the reasons therefor, the limitations 
imposed on the licensee, and the period during which such limitations 
apply.
    ``(b) Termination, Modification, or Suspension.--Not later than 30 
days after an action by the Secretary to seek an order of injunction or 
other judicial determination 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 
                commercially developed'' after ``and its environment'' 
                in subsection (a)(2)(B); and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Duplication of Commercial Sector Activities.--The Federal 
Government shall not undertake activities under this section which 
duplicate activities available from the United States commercial 
sector, unless such activities would result in significant cost savings 
to the Federal Government, or are necessary for reasons of national 
security or international obligations.'';
            (10) in section 302 (15 U.S.C. 5632)--
                    (A) by striking ``(a) General Rule.--'';
                    (B) by striking ``, including unenhanced data 
                gathered under the technology demonstration program 
                carried out pursuant to section 303,'' and inserting in 
                lieu thereof ``that is not otherwise available from the 
                commercial sector''; and
                    (C) by striking subsection (b);
            (11) by repealing section 303 (15 U.S.C. 5633);
            (12) in section 401(b)(3) (15 U.S.C. 5641(b)(3)), by 
        striking ``, including any such enhancements developed 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 Defense.--The Secretary 
shall consult with the Secretary of Defense on all matters under title 
II affecting national security. The Secretary of Defense shall be 
responsible for determining those conditions, consistent with this Act, 
necessary to meet national security concerns of the United States, and 
for notifying the Secretary promptly of such conditions. Not later than 
60 days after receiving a request from the Secretary to review a 
completed application, the Secretary of Defense shall notify the 
Secretary and the licensee of, and describe in appropriate detail, any 
specific national security concerns of the United States that the 
Secretary of Defense determines are an appropriate reason for delaying, 
modifying, or rejecting a license application. The Secretary of Defense 
shall convey to the Secretary any conditions for a license issued under 
title II, consistent with this Act, that the Secretary of Defense 
determines necessary to meet the national security concerns of the 
United States. If no such notification has been received by the 
Secretary within such 60-day period, the Secretary shall deem that 
activities proposed in the license application meet the national 
security concerns of the United States.'';
                    (B) by striking subsection (b)(1) and (2) and 
                inserting in lieu thereof the following:
    ``(b) Responsibility of the Secretary of State.--(1) The Secretary 
shall consult with the Secretary of State on all matters under title II 
affecting international obligations of the United States. The Secretary 
of State shall be responsible for determining those conditions, 
consistent with this Act, necessary to meet international obligations 
and policies of the United States and for notifying the Secretary 
promptly of such conditions. Not later than 60 days after receiving a 
request from the Secretary to review a completed application, the 
Secretary of State shall notify the Secretary and the licensee of, and 
describe in appropriate detail, any specific international obligations 
of the United States that the Secretary of State determines are an 
appropriate reason for delaying, modifying, or rejecting a license 
application. The Secretary of State shall convey to the Secretary any 
conditions for a license issued under title II, consistent with this 
Act, that the Secretary of State determines necessary to meet the 
international obligations of the United States. If no such notification 
has been received by the Secretary within such 60-day period, the 
Secretary shall deem that activities proposed in the license 
application meet the international obligations of the United States.
    ``(2) Appropriate United States Government agencies are authorized 
and encouraged to provide to developing nations, as a component of 
international aid, resources for purchasing remote sensing data, 
training, and analysis from commercial providers.''; and
                    (C) in subsection (d), by striking ``Secretary may 
                require'' and inserting in lieu thereof ``Secretary 
                shall, where appropriate, require''.

SEC. 202. ACQUISITION OF EARTH SCIENCE DATA.

    (a) Acquisition.--For purposes of meeting Government goals for 
Mission to Planet Earth, and in order to satisfy the scientific 
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-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), except that such 
data, services, distribution, and applications shall be considered to 
be a commercial item for purposes of such laws and regulations 
(including section 2306a of title 10, United States Code (relating to 
cost or pricing data), section 2320 of such title (relating to rights 
in technical data) and section 2321 of such title (relating to 
validation of proprietary data restrictions)).
    (c) Study.--(1) The Administrator shall conduct a study to 
determine the extent to which the baseline scientific requirements of 
Mission to Planet Earth 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 Mission to Planet Earth;
            (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.

    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

SEC. 301. REQUIREMENT TO PROCURE COMMERCIAL SPACE TRANSPORTATION 
              SERVICES.

    (a) In General.--Except as otherwise provided in this section, the 
Federal Government shall acquire space transportation services from 
United States commercial providers whenever such services are required 
in the course of its activities. To the maximum extent 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 foreign policy 
        purposes, or launch of the payload by a foreign entity serves 
        foreign policy purposes, and a specific exception to the 
        requirements of subsection (a) has been provided by a law, 
        enacted after the date of the enactment of this Act, that 
        contains no matter other than that exception;
            (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.
The Administrator, in consultation with the Secretary of State and the 
Secretary of Transportation, may propose to the Congress that a 
specific exception described in paragraph (5) be enacted for a launch 
or class of launches. Any such proposal shall include a description of 
the foreign policy purposes that would be served by such an exception, 
and shall identify the impacts of such an exception on the commercial 
launch industry. Nothing in this subsection shall prevent the 
Administrator from planning or negotiating agreements with foreign 
entities for the launch of Federal Government payloads for foreign 
policy purposes, contingent on enactment of a specific exception 
described in paragraph (5).
    (c) Delayed Effect.--Subsection (a) shall not apply to space 
transportation services and space 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. 302. 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), 
except that space transportation services shall be considered to be a 
commercial item for purposes of such laws and regulations (including 
section 2306a of title 10, United States Code (relating to cost or 
pricing data), section 2320 of such title (relating to rights in 
technical data) and section 2321 of such title (relating to validation 
of proprietary data restrictions)).
    (b) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety 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 Payloads on the 
                Space Shuttle.--''; and
                    (B) by striking subsection (b).

SEC. 304. SHUTTLE PRIVATIZATION.

    (a) Policy and Preparation.--The Administrator shall prepare for an 
orderly transition from the Federal operation, or Federal management of 
contracted operation, of space transportation systems to the Federal 
purchase of commercial space transportation services for all 
nonemergency launch requirements, 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.

            Passed the House of Representatives November 4, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.