[Congressional Record Volume 145, Number 54 (Tuesday, April 20, 1999)]
[Senate]
[Pages S3914-S3915]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself, Mr. Frist, and Mr. Burns):
  S. 832. A bill to extend the commercial space launch damage 
indemnification provisions of section 70113 of title 49, United States 
Code; to the Committee on Commerce, Science, and Transportation.


       commercial space launch industry indemnification extension

  Mr. McCAIN. Mr. President, I rise to introduce a bill to extend the 
commercial space launch indemnification.
  As a result of the discussions over the last year on the alleged 
China technology transfer situation, the need to ensure that the United 
States launch companies maintain a competitive position in the 
International launch market has never been greater. One of the more 
important features of the Commercial Space Launch Act (``CSLA'') to the 
commercial industry is the comprehensive risk allocation provisions. 
The provisions are comprised of: (1) cross-waivers of liability among 
launch participants; (2) a demonstration of financial responsibility; 
and (3) a commitment (subject to appropriations) by the U.S. Government 
to pay successful third party claims above $500 million.
  Since its establishment, this three-pronged approach has been 
extremely attractive to the customers, contractors, and subcontractors 
of the U.S. launch licensee and to the contractors and subcontractors 
of its customers, as they are all participants in and beneficiaries of 
CSLA. As such, it has enabled the U.S. launch services industry to 
compete effectively with its foreign counterparts who offer similar 
coverage.

[[Page S3915]]

  This ability to compete effectively will be threatened on December 
31, 1999. At that time, the most important element of the CSLA 
insurance section, the U.S. Government payment of claims provision, is 
scheduled to sunset. Without this provision, the advances in market 
share that this burgeoning U.S. industry has made--an industry that is 
critical to U.S. national security, foreign policy and economic 
interests--will be lost.
  The indemnification has been extended previously for a period of 5 
years. This bill extends the authorization for this indemnification for 
an additional 10 years. With this length of extension, companies will 
be able to finalize strategic plans in a more stable environment.
  Therefore, I, along with my cosponsors, urge the Members of this body 
to support this bill and to provide the needed legislation which will 
allow this key industry continuous operation in a safe and responsible 
manner.
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