    [House Report 105-347]
    [From the U.S. Government Publishing Office]

    105th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES

     1st Session                                                    105-347
    _______________________________________________________________________

                          COMMERCIAL SPACE ACT OF 1997

    _______________________________________________________________________

    October 24, 1997.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed

                                    _______

        Mr. Sensenbrenner, from the Committee on Science, submitted the
                                   following

                                  R E P O R T

                            [To accompany H.R. 1702]

          [Including cost estimate of the Congressional Budget Office]

        The Committee on Science, to whom was referred the bill
    (H.R. 1702) To encourage the development of a commercial space
    industry in the United States, and for other purposes, having
    considered the same, reports favorably thereon with an
    amendment and recommends that the bill as amended do pass.

                                C O N T E N T S

                                                                       Page
       I. Amendment.......................................................2
      II. Purpose of the Bill............................................13
     III. Background and Need for the Legislation........................13
      IV. Summary of Hearings............................................14
       V. Summary of Major Provisions of the Bill........................18
      VI. Section-by-Section Analysis (By Title and Section) and Committee
          Views..........................................................19
     VII. Committee Cost Estimate........................................32
    VIII. Congressional Budget Office Cost Estimate......................33
      IX. Compliance with Public Law 104-4...............................36
       X. Committee Oversight Findings and Recommendations...............36
      XI. Oversight Findings and Recommendations by the Committee on
          Government Reform and Oversight................................36
     XII. Constitutional Authority Statement.............................36
    XIII. Federal Advisory Committee Statement...........................36
     XIV. Congressional Accountability Act...............................36
      XV. Effects of Legislation on Inflation............................37
     XVI. Changes in Existing Law Made by the Bill, as Reported..........37
    XVII. Committee Recommendations......................................60
    XVIII.Proceedings of Subcommittee Markup.............................61

      IX. Proceedings of Full Committee Markup..........................117

                                  I. Amendment

        The amendment is as follows:
        Strike out all after the enacting clause and insert in lieu
    thereof the following:

    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 space transportation services.
    Sec. 303. Launch Services Purchase Act of 1990 amendments.

    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.'';
    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.--The Administrator
    shall, to the maximum extent possible and while satisfying the
    scientific requirements of the National Aeronautics and Space
    Administration, 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, 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; and
                        (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'';
                (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, 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'';
                        (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'';
                        (C) in subsection (b)(6), by striking ``any
                    agreement'' and inserting in lieu thereof ``any
                    significant or substantial agreement relating to land
                    remote sensing''; 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
    180 days after the date of the enactment of the Commercial Space Act of
    1997, the Secretary of Defense shall publish in Commerce Business
    Daily, for the purpose of soliciting comments, notice of all national
    security concerns that pertain to the licensing of private remote
    sensing space systems. Not later than 60 days after receiving a request
    from the Secretary, the Secretary of Defense shall notify the Secretary
    and the licensee of, and describe in 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
    concurrently recommend to the Secretary any conditions for a license
    issued under title II, consistent with this Act, that the Secretary of
    Defense considers necessary to secure 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
    activities proposed in the license application to be consistent with
    the protection of the national security 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
    of the United States and for notifying the Secretary promptly of such
    conditions. Not later than 180 days after the date of the enactment of
    the Commercial Space Act of 1997, the Secretary of State shall publish
    in Commerce Business Daily, for the purpose of soliciting comments,
    notice of all international obligations of the United States that
    pertain to the licensing of private remote sensing space systems. Not
    later than 60 days after receiving a request from the Secretary, the
    Secretary of State shall notify the Secretary and the licensee of, and
    describe in 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 concurrently recommend to the Secretary any
    conditions for a license issued under title II, consistent with this
    Act, that the Secretary of State considers necessary to secure 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 activities proposed in the license application to
    be consistent with 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, the Administrator shall, to the maximum extent
    possible and while satisfying the scientific requirements of the
    National Aeronautics and Space Administration, 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) 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
                (6) 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.
        (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 SPACE TRANSPORTATION SERVICES.

        (a) Treatment of 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).
                            II. Purpose of the Bill

        The purpose of the bill is to encourage the development of
    a commercial space industry in the United States by
    streamlining government regulatory procedures and unleashing
    the creativity and energies of American entrepreneurship.

                  II. Background and Need for the Legislation

        The Department of Commerce estimated that revenue from
    commercial space activity in the United States totaled some
    $7.5 billion in 1995. For more than a decade, commercial space
    businesses have grown faster than the economy and proven
    relatively recession-proof. This success comes despite the fact
    that commercial space ventures are particularly capital-
    intensive and often involve more risk than more traditional
    terrestrial businesses.
        Congress and the White House have supported and encouraged
    growth and development of this industry on a bipartisan basis,
    regardless of which political party controlled either branch of
    government. For example, a Democratic Congress and a Republican
    President worked together in 1992 to pass the Land Remote
    Sensing Policy Act of 1992 (P.L. 102-555), a law which enabled
    the private sector to design, build, launch, and operate
    commercial remote sensing satellites.
        During the course of its first term, the Clinton
    Administration has developed and published a range of policy
    statements that continue the work of his predecessors,
    Presidents Reagan and Bush, in establishing a stable business
    environment from which the commercial sector can create new
    space businesses and jobs. Those policies deal with space
    transportation, commercial remote sensing, and the Global
    Positioning System. Additionally, the President issued a new
    National Space Policy on September 19, 1996 which reinforced
    the government's support of commercial space development,
    noting that ``expanding U.S. commercial space activities will
    generate economic benefits for the Nation and provide the U.S.
    Government with an increasing range of space goods and
    services.'' The policy further declared that support of
    commercial space activity would be undertaken without federal
    subsidies. Taking the position that the government's role is
    more appropriately limited to creating a stable and predictable
    environment in which the entrepreneurial spirit of American
    enterprise can succeed, the policy states, ``Commercial space
    sector activities shall be supervised or regulated only to the
    extent required by law, national security, international
    obligations and public safety.''
        The Committee agrees with the President's position and
    supports his policy initiatives designed to advance U.S.
    commercial interests in space development. Since the passage of
    the 1992 legislation and the announcement of policies intended
    to create a stable business environment for developing space
    commercially, the government and the commercial sector have
    identified possible areas of improvement.
        H.R. 1702, the Commercial Space Act of 1997, is a modest
    step in improving the legal and regulatory framework for
    commercial space development. Yet, as Neil Armstrong noted upon
    departing the Lunar Excursion Module to leave the first extra-
    terrestrial footprints in the history of humanity, giant leaps
    often begin with small, and modest, steps.
        H.R. 1702 will achieve several goals. One purpose of the
    bill is to codify the best aspects of existing space policy, so
    that the merits of the policies themselves are established in a
    more stable framework. Another purpose is to incorporate
    lessons learned from past efforts to create law and policy for
    the promotion of commercial space activity. Finally, many
    commercial space ventures relate directly to the production and
    dissemination of information. Thus, they form part of the
    technological base for the new information economy and require
    a more streamlined and proactive legal and regulatory
    environment if the United States is to lead the world into the
    information age.
        The bill is necessary because commercial activity in space
    is still at a very early stage of development. Its progress is
    measured in the work of relatively small, entrepreneurial
    companies. Like any young industry, commercial space business
    is vulnerable to the inconsistencies and sudden changes of
    government policy. H.R. 1702 is necessary to ensure consistency
    in government policy so that commercial space businesses can
    grow with the relatively reliable assurance that government
    policy will not change suddenly and drive them out of business
    through neglect, inattentiveness, incompetence, or
    shortsightedness.
        Currently, U.S. companies do not lead the world in several
    major areas of commercial space activity, even though they may
    have a competitive advantage in the quality of goods and
    services they offer. In many cases, the lack of a U.S. lead in
    commercial space is the result of U.S. government policies and
    the fact that many of our foreign competitors in commercial
    space activity are actually foreign governments. For example,
    when it comes to remote sensing systems selling their products
    commercially, the most advanced satellites in use today were
    either designed, built, launched, owned, or operated by the
    governments of France, India, and Canada. In the area of
    worldwide commercial space launch, U.S. companies only have
    about a 33% share of the market, in part because the U.S.
    government drove many U.S. companies out of the launch business
    with decisions made in the late 1970's and early 1980's to
    launch commercial payloads on the government-owned Space
    Shuttle. It took the Challenger disaster in 1986 to force a
    change in federal policy, but the U.S. launch industry still
    has not completely recovered from earlier government decisions.

                            IV. Summary of Hearings

        The Subcommittee on Space and Aeronautics held three formal
    hearings during the first session of the 105th Congress
    regarding H.R. 1702, the Commercial Space Act of 1997.
        On May 21, 1997, the Subcommittee on Space and Aeronautics
    held a hearing entitled, ``The Commercial Space Act of 1997:
    Commercial Remote Sensing, Part I.'' The witnesses were: Mr.
    Keith Calhoun-Senghor, Director of the Office of Air & Space
    Commercialization at the Department of Commerce; Mr. Jeff
    Harris, President of Space Imaging Incorporated; Dr. Susan
    Moran, Physical Scientist for the Southwest Watershed Research
    Center at the U.S. Department of Agriculture; Dr. John
    Townshend, Professor at the University of Maryland; and Dr.
    Molly Macauley, Senior Fellow at Resources for the Future.

    Purpose of Hearing

        The purpose of this hearing was to seek input on the
    commercial remote sensing provisions of H.R. 1702, the
    Commercial Space Act of 1997. The hearing focused on: (1)
    ongoing and anticipated commercial space activities and their
    benefits to the United States; (2) applications of commercial
    remote sensing imagery that help to improve life on Earth; (3)
    policy issues that surround the creation and future growth of
    the emerging remote sensing industry; and (4) identifying
    improvements that can be made in the legal and regulatory
    environment to support the continued growth of the U.S.
    commercial remote sensing industry.

    Key Issues

        Mr. Keith Calhoun-Senghor, Director of the Office of Air &
    Space Commercialization at the Department of Commerce,
    discussed a new era that he termed ``new space.'' He maintained
    that new space differs dramatically from the previous era of
    traditional aerospace in three significant ways: (1) it is
    privately funded; (2) it is international; and (3) it will be
    Earth's new economic frontier. Mr. Calhoun-Senghor also noted
    that the U.S. government is beginning, and must continue, to
    treat new space as an industry segment where data is tracked
    and analyzed in much the same way as commodities futures or
    crop reports are, so that businesses can intelligently
    anticipate the future of the aerospace industry.
        Mr. Jeff Harris, President of Space Imaging Incorporated,
    discussed opportunities that commercial remote sensing can
    offer the United States. He also explained the reasons for
    expanding interest in commercial remote sensing, including: (1)
    adequate technology is available; (2) commercial remote sensing
    has become more cost-effective; (3) international clientele
    opportunities; and (4) a U.S. aerospace industry that is poised
    and ready to further develop this emerging industry.
        Dr. Susan Moran, Physical Scientist for the Southwest
    Watershed Research Center at the U.S. Department of
    Agriculture, testified regarding applications of remote sensing
    imagery that help to improve life on Earth and discussed the
    value of commercial remote sensing to precision farming.
        Dr. John Townshend, Professor at the University of
    Maryland, said that to assist development of the commercial
    remote sensing industry, we (government and industry) should:
    (1) ensure that the scientific community plays a major role in
    planning the acquisition of remote sensing data; (2) provide
    reliable information on the availability of remote sensing data
    to the scientific user; (3) involve the scientific community in
    validation and quality assessment of products derived from
    remote sensing; and (4) assure that remote sensing products are
    delivered in a timely fashion.
        Dr. Molly Macauley, Senior Fellow at Resources for the
    Future, noted that the profitability of the commercial remote
    sensing market is going to depend on continued technological
    improvements and cost reductions in spacecraft and
    instrumentation. She also suggested that government agencies
    could ``auction'' research spacecraft after their original
    missions were complete. This would help commercial providers by
    eliminating expensive research and development costs.
        On May 22, 1997, the Subcommittee on Space and Aeronautics
    held a second hearing entitled, ``The Commercial Space Act of
    1997: Space Transportation.'' The witnesses were: Mr. Edward A.
    Frankle, General Counsel for NASA; Ms. Patti Grace Smith,
    Associate Administrator (Acting) for Commercial Space
    Transportation at the Federal Aviation Administration (FAA);
    Mr. Edward Brady, Managing Partner for Strategic Perspectives
    Incorporated; and Mr. Michael S. Kelly, President & CEO of
    Kelly Space & Technology Incorporated.

    Purpose of Hearing

        The purpose of this hearing was to obtain input on various
    issues surrounding commercial space transportation for H.R.
    1702, the Commercial Space Act of 1997. The hearing focused on:
    (1) granting the Office of Commercial Space Transportation the
    authority to license reentries of commercial space
    transportation vehicles; (2) federal purchase of commercial
    space transportation services; (3) U.S. participation in the
    establishment of international standards for commercial space
    operations; and (4) licensing of in-space transportation.

    Key Issues

        Mr. Edward A. Frankle, General Counsel for NASA, noted that
    policy makers need to review several areas before making a
    decision to regulate in-space transportation. These areas
    include: international obligations of the United States; public
    health and safety; safety of property; and national security
    and foreign policy interests of the United States. However, Mr.
    Frankle stated that he did not believe that there is any
    logical basis for regulating in-space transportation at this
    time.
        Ms. Patti Grace Smith, Associate Administrator (Acting) for
    Commercial Space Transportation at FAA, testified that it is
    essential that Congress pass authorizing legislation granting
    FAA the authority to license reentries. Further, she maintained
    that without such authority, the government would not be able
    to provide for public safety or ensure adequate oversight of
    commercial space transportation activities involving reentry or
    reusable vehicles.
        Mr. Edward Brady, Managing Partner for Strategic
    Perspectives Incorporated, focused on the necessity to
    establish international standards for commercial space
    operations. He maintained that commercial space activities
    cannot be implemented in a cost-effective manner without
    standards that are nationally and internationally recognized
    and used.
        Mr. Michael S. Kelly, President & CEO of Kelly Space &
    Technology Incorporated, said that he believed that authority
    to license reentry should be granted to the FAA and that the
    government should not continue the practice of financing, with
    taxpayer money, the development of commercial launch vehicles
    which then compete with privately-financed systems.
        On Wednesday, June 4, 1997, the Subcommittee on Space and
    Aeronautics held the third and final hearing on ``The
    Commercial Space Act of 1997: Commercial Remote Sensing, Part
    II.'' The witnesses were: Dr. D. James Baker, Under Secretary
    for Oceans and Atmosphere at the U.S. Department of Commerce;
    Ms. Cheryl Roby, Principal Deputy to the Assistant Secretary
    for Command, Control, Communications, and Intelligence at the
    Department of Defense; and Mr. Mike Swiek, Executive Director
    for the Global Positioning System Industry Council.
        While drafting H.R. 1702, the Commercial Space Act of 1997,
    the Committee on Science attempted to seek input from various
    agencies and businesses in an effort to make the bill as
    favorable, for both the Congress and the Administration, as
    possible. Therefore, the Department of State was invited to
    participate in this hearing, but unfortunately, a witness was
    not sent despite the Committee's attempts over several weeks to
    obtain a representative who could provide input from the
    Department. The Committee sought input from the Department of
    State because the Department makes recommendations, based on
    U.S. international obligations, to the Secretary of Commerce
    regarding licenses for commercial remote sensing. Subsequent to
    the hearing, the Space and Aeronautics Subcommittee Chairman
    and Ranking Member each received a position paper from the
    Department of State regarding H.R. 1702. While the Committee
    appreciates the input from the Department, such input is
    valuable legislatively only to the extent that members have the
    opportunity to ask questions and explore issues on the record.
    The Department's failure to appear before the Committee and
    offer its comments in a public forum limit the value or import
    that can be given to the Department's concerns, many of which
    appear to be inconsistent with existing law in the Land Remote
    Sensing Policy Act of 1992 (P.L. 102-555) and the President's
    publicly released statements of policy on remote sensing.

    Purpose of Hearing

        The purpose of this hearing was to seek input on the
    commercial remote sensing provisions of H.R. 1702, the
    Commercial Space Act of 1997. The hearing explored: (1) the
    current legal and regulatory regime for remote sensing in the
    Land Remote Sensing Policy Act of 1992 (P.L. 102-555) and White
    House policy; (2) lead agency responsibilities (including
    national security concerns and international obligations) for
    implementing the Land Remote Sensing Policy Act of 1992; (3)
    improvements that can be made to the Land Remote Sensing Policy
    Act of 1992; (4) interagency cooperation and coordination on
    prospective license applications; (5) Department of Defense use
    of imagery from existing or planned commercial remote sensing
    satellites; and (6) development and growth potential of the
    Global Positioning System (GPS) applications industry.

    Key Issues

        Dr. D. James Baker, Under Secretary for Oceans and
    Atmosphere at the U.S. Department of Commerce, testified that
    it is the goal of the Department of Commerce, and the
    Administration, to provide a policy and regulatory regime which
    nurtures and fosters the development of commercial remote
    sensing, so that the United States does not squander its lead
    and allow other countries to gain competitive advantage in this
    high-skill, high-wage industry. Dr. Baker noted industry
    concerns about the vagueness of the standard for determining
    when imaging must be restricted. Therefore, he reported that
    the Department of Commerce is developing regulations which will
    achieve a better balance between the burdens on a licensed
    operator and national security requirements and international
    obligations of the United States regarding remote sensing
    practices.
        Ms. Cheryl Roby, Principal Deputy to the Assistant
    Secretary for Command, Control, Communications, and
    Intelligence at the Department of Defense, testified that the
    recently completed Quadrennial Defense Review commits the
    Department to maximize the use of emerging commercial remote
    sensing capabilities. She maintained that for reasons of
    national security, the Defense Department is convinced that
    provisions allowing for shutter control in emergency situations
    should continue. However, Ms. Roby noted that the Defense
    Department did not anticipate that shutter control would occur
    often or over significant periods of time.
        Mr. Mike Swiek, Executive Director for the Global
    Positioning System Industry Council, testified that the Global
    Positioning System (GPS) has become one of the greatest success
    stories of government and industry cooperation. He noted that
    proposed language in the Commercial Space Act of 1997
    reiterates the need to establish a clear, high-level commitment
    to a stable policy environment for the development of
    international standards facilitating both private and public
    sector investments in GPS. In closing, Mr. Swiek argued that
    the most important near-term initiative that the government can
    take to promote long-term GPS growth is through passage of
    language that supports current efforts to secure international
    agreements with our allies to establish GPS and its
    augmentations as an accepted international standard.

                   V. Summary of Major Provisions of the Bill

        The major provisions of the bill are the following:
        Requires the NASA Administrator to submit a report and
    independent market study to Congress identifying commercial
    opportunities and evaluating industry interest in playing a
    role in International Space Station activities including
    operation, use, servicing, or augmentation;
        Amends the Commercial Space Launch Act (49 U.S.C. 70101 et
    seq.) to establish a statutory framework for the Office of
    Commercial Space Transportation to license commercial reentry
    activities;
        Reaffirms United States policy to make the U.S. Global
    Positioning System the world standard and to continue its
    operation on a continuous worldwide basis, free of direct user
    fees;
        Encourages NASA to purchase space science data from
    commercial providers instead of building complete systems to
    generate the data;
        Directs the NASA Administrator to manage the Commercial
    Space Centers as a coordinated program out of NASA
    headquarters;
        Updates the Land Remote Sensing Policy Act of 1992 (P.L.
    102-555;
        Encourages NASA to buy Earth remote sensing data from
    commercial providers and requires a study of how scientific
    requirements of Mission to Planet Earth can be met by
    commercial providers;
        Requires the Federal Government to procure space
    transportation services from U.S. commercial providers.

              VI. Section-By-Section Analysis and Committee Views

    Section 1 Short Title

        This Act may be cited as the ``Commercial Space Act of
    1997.''

    Section 2 Definitions

        Provides definitions for terms used in H.R. 1702.
    Definitions are provided for NASA Administrator; commercial
    provider; payload; space-related activities; space
    transportation services; space transportation vehicle; state;
    and U.S. commercial provider.

    Title I--Promotion of Commercial Space Opportunities

    Section 101 Commercialization of Space Station

    Sectional Analysis

        Requires a report from NASA, within 90 days after
    enactment, that identifies and examines the opportunities for
    commercial providers to play a role in International Space
    Station activities; the potential cost savings from using
    commercial providers; details the opportunities the NASA
    Administrator plans to make available to commercial providers;
    the policies that the NASA Administrator is advancing to
    encourage commercial opportunities; and the revenues and cost
    reimbursements to the Federal Government from commercial users
    of the International Space Station. Requires an independent
    market study, 180 days after enactment, that examines and
    evaluates potential industry interest in providing commercial
    goods and services for the operation, servicing, and
    augmentation of the International Space Station. Requires a
    report detailing how many proposals NASA received in 1997
    regarding commercial operation, servicing, utilization, or
    augmentation of the International Space Station, and how many
    of these resulted in agreements. The section also directs that
    the role of state governments as brokers in promoting space
    station commercialization be considered in all three reports.

    Committee Views

        The Committee has consistently stated its interest, both in
    legislation adopted by the House of Representatives and in
    authorization and oversight hearings, in the greatest possible
    U.S. commercial participation in the operation, servicing,
    utilization, and augmentation of the International Space
    Station. This is motivated both by a desire to lower costs to
    U.S. taxpayers by bringing the efficiencies and the capital
    resources of competitive free enterprise to bear on the
    International Space Station, and by the Committee's belief that
    Earth orbital space is an economic frontier of tremendous
    potential and that the International Space Station should be
    operated in a matter which helps open up this frontier to
    American enterprise.
        To this end, H.R. 1702 directs the Administrator of NASA to
    produce three reports for the Committee. The first is a short-
    term internal study of opportunities for commercialization of
    the U.S. portion of the International Space Station. The second
    is a 180-day external study of market interest in International
    Space Station commercialization. The third is a report for 1997
    on how much interest private companies have shown by making
    proposals to NASA, and how many agreements NASA has entered
    into in response to those proposals.

    Section 102 Commercial Space Launch Amendments

    Sectional Analysis

        This section amends Chapter 701 of title 49, United States
    Code, entitled ``Commercial Space Launch Activities,'' which is
    a recodification of the Commercial Space Launch Act of 1984
    (P.L. 98-575). The purpose of the amendments is to establish a
    statutory framework for the licensing of commercial reentry
    activities by the Secretary of Transportation, clarify certain
    provisions in Chapter 701, and provide for criteria for
    accepting a license application.
        The Commercial Space Launch Act is further amended to
    expand the definition of ``launch services'' to those
    activities directly related to the preparation of a launch site
    or payload facility. Under Section 70105, the Secretary of
    Transportation is directed to notify the authorizing House and
    Senate Committees within 30 days after a license has not been
    issued within the deadline. 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. The Secretary is also given the
    authority to develop regulations establishing criteria for
    accepting an application for a license within the 60 days after
    receipt of such application.

    Program Description

        The Department of Transportation, through its Office of
    Commercial Space Transportation, is responsible for
    implementing Chapter 701 which authorizes the Secretary of
    Transportation to license and regulate the non-governmental
    space launch of a vehicle and operation of a launch site. In
    addition, by virtue of Executive Order 12465, the Department
    has lead agency responsibilities within the Executive Branch to
    encourage, facilitate, and coordinate development of commercial
    expendable launch vehicle operations by private U.S.
    enterprises.

    Committee Views

        When the Commercial Space Launch Act was passed in 1984
    (P.L. 98-575) and when it was amended in 1988 (P.L. 100-657),
    Congress did not address the full range of space transportation
    activities that the private sector could undertake on a
    commercial basis. Specifically, commercial space activities
    involving reentry vehicles that are returned to Earth from
    Earth orbit or outer space were not encompassed, and were not
    intended to be encompassed, by the statute. Market demand to
    support commercial reentry ventures is emerging. The commercial
    sector is beginning to demonstrate technical capability to
    undertake such activities if suitable profit-making
    opportunities are presented. In recognition of these
    developments, the Committee wishes to establish the appropriate
    legal framework to ensure public safety is protected while
    minimizing regulatory burden, delay or uncertainty that could
    inhibit commercial exploitation of reentry capabilities. In
    addition to establishing a regulatory regime for commercial
    reentries, the Committee intends these amendments to address
    certain issues that have arisen regarding the definition of
    ``launch;'' the extent to which activities before and after
    launch may be licensed or regulated; and applicability of the
    third party liability provisions of sections 70112 and 70113 of
    Chapter 701.
        The term ``reentry'' is intended to cover a wide range of
    activities, including the act of returning a reusable launch
    vehicle to Earth. In establishing the legal framework for
    reentry, the Committee's approach is to treat reentry of a
    reentry vehicle the same as launch of a launch vehicle.
    Reentries described in section 70104(a) must be licensed, just
    as launches meeting these same criteria must be licensed. In
    addition, amendments to other sections of Chapter 701 grant to
    the Secretary the same authority and responsibility with
    respect to the licensing and regulation of the reentry of
    reentry vehicles as existing law provides to the Secretary with
    respect to the launch of vehicles.
        An amendment to section 70102 also adds the phrase ``from
    Earth'' to the existing definition of ``launch'' in order to
    make clear the original intent of the Commercial Space Launch
    Act that the launch of a launch vehicle is an event that takes
    place from Earth, not from Earth orbit or otherwise from or in
    outer space. Although the definition of launch in the original
    Act lacks this explicit specification, the Act was otherwise
    quite clear that a launch for purposes of the license
    requirement takes place from a ``launch site,'' which is
    defined in terms of a location ``on Earth.'' Moreover, the
    legislative history of the Commercial Space Launch Act
    demonstrates that only launches from Earth were envisioned.
        The amendment to section 70102 was originally prompted by a
    concern that the Department of Transportation was advocating
    the position that a reentry is subject to a launch license
    requirement on the grounds that reentry entailed the placing of
    a launch vehicle in a suborbital trajectory ``from Earth
    orbit.'' Although the Department has since abandoned that
    position, the Committee wishes by this amendment to register
    its emphatic rejection of any interpretation of ``launch'' that
    would include space transportation activities that do not begin
    from Earth, such as reentry; the transfer of a satellite
    between one Earth orbit and another; or any other on-orbit
    operation after a launch is completed and before reentry is
    initiated.
        The Committee intends that for purposes of the license
    requirement, reentry begins when the vehicle is prepared
    specifically for reentry. By way of definition, the Committee
    intends the term to apply to that phase of the overall space
    mission during which the reentry is intentionally initiated.
    Although this may vary slightly from system to system, as a
    general matter the Committee expects reentry to begin when the
    vehicle's attitude is oriented for propulsion firing to place
    the vehicle on its reentry trajectory.
        The Committee acknowledges that in order to issue a
    license, the Department must be satisfied that an applicant has
    demonstrated capability to carry out a reentry safely and
    without jeopardy to critical national interests. The Committee
    also appreciates that, to evaluate capability, the Department
    may need to examine certain of the applicant's proposed
    procedures and activities that would precede initiation of
    reentry. However, the Committee wishes to make clear that these
    pre-reentry procedures or activities are not events requiring a
    license, nor otherwise subject to regulation. Rather, they
    would represent aspects of an application that the Department
    would have to measure against standards and criteria that the
    Department has established are necessary to evaluate capability
    to conduct the reentry. These standards and criteria may be
    generally applicable to all applicants or specific to a
    particular proposal. The Committee urges the Department to take
    the steps necessary to ensure that they are clearly articulated
    and understandable to license applicants.
        There has been much discussion about what activities should
    be encompassed by the term ``launch'' for the purposes of the
    license requirement. It is the Committee's view that there are
    activities that precede flight that: (1) begin at a launch site
    in the United States, which may or may not be the actual launch
    site for a particular launch in question; (2) entail critical
    steps preparatory to initiating flight; (3) are unique to space
    launch; and (4) are inherently so hazardous to launch site
    personnel or property so as to warrant the Department's
    regulatory oversight under Chapter 701.
        An array of hazardous pre-flight activities take place at
    launch sites in the United States in preparation for the flight
    of a launch vehicle. With the advent of new technologies and
    launch systems, the Committee finds that these activities may
    take place thousands of miles away from the launch site from
    which launch takes place, and several weeks or months in
    advance of an actual launch date. Nevertheless, they retain
    their hazardous nature as well as their direct relationship to
    the launch they support. Accordingly, as demonstrated by the
    Committee's passage of this bill, the Committee believes that
    the statute's definition of launch should be amended so that if
    an activity takes place at a launch site in the United States
    it will be subject to the oversight of the Office of Commercial
    Space Transportation and financial risk allocation scheme of
    the statute.
         ``Launch site in the United States'' means a U.S. site
    from which a launch vehicle actually leaves from the surface of
    the Earth at any time. This bill does not extend federal launch
    licensing or launch oversight authority to a site in the United
    States at which limited activities such as launch vehicle and
    payload integration and processing occur and form which actual
    launch vehicle lift-offs never occur. Such areas are considered
    adequately regulated under local, state, and federal law.
        The original Act intended that a launch ends, as far as the
    launch vehicle's payload is concerned, once the launch vehicle
    places the payload in Earth orbit or in the planned trajectory
    in outer space. The Committee wishes to make clear that the
    Secretary has no authority to license or regulate activities
    that take place between the end of the launch phase and the
    beginning of the reentry phase, such as maneuvers between two
    Earth orbits or other non-reentry operations in Earth orbit; or
    after the end of a launch phase in the case of missions where
    the payload is not a reentry vehicle.
        Sections 70112 and 70113, establishing an allocation of
    risk regime, are also amended to cover reentry in the same way
    that launches are covered. The Committee notes that these
    provisions apply to losses sustained as a result of licensed
    activities, (i.e., launches and reentries) not events or
    activities between launch and reentry; after reentry; or
    uncovered before launch. Once a launch or a reentry is
    completed no protection against third party liability is
    intended to be provided under Chapter 701 unless there is a
    clear causal nexus between the loss and the behavior of the
    launch or reentry vehicle. For instance, if, subsequent to a
    launch vehicle's successful deployment of a payload that is not
    a reentry vehicle, the payload returns to Earth and causes
    third party loss, the loss is not intended to be covered by
    sections 70112 and 70113. As another example, if during an
    airborne launch, the aircraft suffers an accident after the
    vehicle has separated from the aircraft and taken off, and the
    accident is not attributable to the launch vehicle, then this
    event is also not intended to be covered by sections 70112 and
    70113.
        Current law governing commercial space launch activities
    (49 USC 70101 et seq.) includes a provision designating that a
    launch vehicle or payload is not to be considered an export
    simply due to the launch itself. H.R. 1702 amends this
    provision to include reentries which should not be considered
    an import simply because of the reentry. Prior to enactment of
    the original Commercial Space Launch Act in 1984, the launch of
    a launch vehicle was considered an export. The intent of the
    original provision, launch not an export, was to obviate the
    need for an export license for a commercial launch since such a
    launch is not considered an export, in the traditional sense.
    There was never any intent that, launch not an export, would
    affect foreign trade zone procedures.
        The Committee awaits greater clarification of the
    licensee's launch/reentry insurance and allocation of risk
    requirements through the Department's ongoing rulemaking action
    (14 CFR 440). Two new sections were added to Chapter 701,
    Sections 70120 and 70121. Section 70120 requires the Secretary
    of Transportation within 9 months after the date of enactment,
    to issue regulations to give industry guidelines and procedures
    related to insurance, launch licenses and government
    indemnification. Section 72120 also requires the Secretary of
    Transportation, within 6 months after the date of enactment, to
    issue a notice of proposed rulemaking related to reentry
    licenses. Section 70121 requires the Secretary of
    Transportation to submit an annual report on the activities
    undertaken under Chapter 701 and the performance of the Office
    of Commercial Space Transportation.

    Additional amendments authorizing criteria for license application
            acceptance

        Section 102 also amends Chapter 701 to authorize the
    Secretary to issue regulations establishing criteria for
    acceptance of a license application. The acceptance or
    rejection must be made within 60 days of receipt of the
    application. The purpose of this amendment is to: (1) limit the
    undue expenditure of Office resources on determining whether an
    application is viable; and (2) to provide the applicant with
    timely notice of whether the application will be accepted.

    Section 103 Launch Voucher Demonstration Program

    Sectional Analysis

        Section 504 of the Fiscal Year 1993 National Aeronautics
    and Space Administration Act (P.L. 102-588) is amended by
    striking outdated references to dates and offices.

    Committee Views

        This section strikes the sunset date of the Launch Voucher
    Demonstration Program so that NASA can continue the program if
    it wishes to, but does not require continuation of the program.

    Section 104 Promotion of United States Global Positioning System
            Standards

    Sectional Analysis

        Encourages the President to ensure the operation of the
    U.S. Global Positioning System (GPS) on a continuous worldwide
    basis, free of direct user fees and to enter into agreements
    that promote cooperation with foreign governments in order to
    establish GPS and its augmentations as the accepted
    international standard.

    Committee Views

        The Committee congratulates the Administration for its
    policies regarding use of the Global Positioning System. In
    general, Members of Congress agree that it is in the U.S.
    interest to encourage continued commercial use of this system,
    and that it is in the interest of U.S. national security for
    the U.S. GPS system to become the world's standard.
    Consequently, the Congress expresses its support for this
    policy in this section and encourages the Administration to
    proceed with international negotiations designed to advance
    U.S. national interests and support foreign use of the GPS
    system. Finally, the Committee reasserts its support for
    ensuring the continuous operation of the GPS signal globally
    without direct user fees.
        In March 1996, the President released a policy statement on
    the U.S. Global Positioning System (GPS). That policy
    recognizes the national security benefits of making the U.S.
    system the world's standard, as laid out in reports from the
    National Academy of Public Administration, the National
    Research Council, and the RAND Corporation. A unique
    opportunity exists to shape the direction of this global
    industry so that it grows in a manner consistent with and
    supportive of U.S. national security and economic interests.
    Establishing GPS as the world's standard requires the United
    States to adopt a mature, even-handed, and reliable role as a
    provider of positioning data from the Global Positioning
    System.
        The Committee understands that the Fiscal Year 1998 defense
    authorization bill currently completing conference negotiations
    addresses the policy framework for protecting national security
    while making GPS the world standard. H.R. 1702 enhances this
    message by encouraging the President to enter into agreements
    with foreign entities to make GPS the world standard and to
    continue the policy of making the GPS signal available globally
    without direct user fees. The language offered in H.R. 1702 is
    non-binding, and simply expresses Congressional support for the
    President's policy. This language helps assure negotiating
    partners that the elected officials of the United States
    government are speaking with one voice on this issue and is
    intended to strengthen the President's negotiating position and
    ability to ensure his policies are carried out. The President's
    policy is innovative and gives the United States the unique
    opportunity to shape the direction of space-based navigation
    around the world. The bill supports the President's leadership.
    It should also be clear to the State Department that Congress
    views its efforts to help negotiate regional agreements to make
    the U.S. Global Positioning System the world's standard as
    extremely important to U.S. national security and the
    continuing success of the U.S. commercial space industry.

    Section 105 Acquisition of Space Science Data

    Sectional Analysis

        This section states that NASA shall, to the maximum extent
    possible, acquire space science data from commercial providers,
    where cost-effective, and while satisfying scientific
    requirements. Acquisitions of space science data are to be
    carried out in accordance with applicable acquisition laws and
    regulations. Further, space science data is to be treated as a
    commercial item under applicable acquisition laws.

    Committee Views

        The purpose of this section is to encourage the
    Administrator of NASA to acquire space science data
    commercially. For those data sets with both scientific merit
    and commercial appeal, NASA can spur commercial enterprises
    while acquiring the data faster and cheaper.

    Section 106 Administration of Commercial Space Centers

    Sectional Analysis

        This section directs the Administrator of NASA to manage
    the Commercial Space Centers as a coordinated program out of
    NASA Headquarters.

    Committee Views

        In recent years, due to a series of reorganizations, NASA's
    efforts to promote U.S. commercial space activities have grown
    increasingly diffuse. In particular, the management of--and
    funding decisions regarding--the Commercial Space Centers
    (CSCs, formerly known as the Centers for the Commercial
    Development of Space) have been transferred to NASA's field
    centers. In some cases, either sufficient funding has not been
    transferred to maintain CSC activities at planned levels, or
    internal field center budget pressures have caused the
    reduction or elimination of several CSCs' funding, including an
    unscheduled closure of one CSC.
        The Committee does believe that NASA can and should close
    CSCs which are not performing well according to peer review
    standards, but that process should be shielded from any one
    field center's budgetary pressures. The best way to do that is
    to maintain a unified CSC program based at NASA Headquarters.
        The Committee also believes that all parts of NASA, most
    especially its field centers, should be actively engaged in
    implementing the NASA Act's (National Aeronautics and Space Act
    of 1958, as amended 42 U.S.C. 2451) mandate to ``promote the
    fullest possible commercial use of space,'' and therefore can
    and should build strong technical and even managerial
    relationships with CSCs. But it remains NASA headquarters' (and
    therefore the Administrator's) responsibility to judge the
    performance of, and make budgetary decisions about, CSCs across
    disciplines and industry areas according to a coordinated set
    of standards and metrics.

    Title II--Remote Sensing

    Section 201 Land Remote Sensing Policy Act of 1992 Amendments

    Sectional Analysis

        Updates the Land Remote Sensing Policy Act of 1992 (15
    U.S.C. 5601 et seq.). Requires the Secretary of Commerce to
    publish a list of requirements for applicants seeking a license
    to own and operate a remote sensing satellite. Creates a
    presumption of approval for license applications that comply
    with title requirements. Prevents the Secretary of Commerce
    from seeking to enjoin a licensee from entering into a foreign
    agreement unless the Secretary first transmits a determination
    to the licensee that such participation is inconsistent with
    national security or international obligations. Requires the
    Secretary of Commerce to notify Congress of any action to limit
    collection or distribution of data. Requires the Secretary of
    Commerce to report to Congress any injunctions that it seeks
    against a commercial provider. Prohibits the Federal Government
    from duplicating commercial provider activities unless such
    activities would result in significant savings or are necessary
    for reasons of national security or international obligations.
    Requires the Secretary of Commerce to consult with the
    Secretaries of Defense and State regarding license applications
    and the Secretaries of Defense and State to determine whether
    such applications are consistent with U.S. national security
    interests and international obligations. Treats the absence of
    objection from either the Secretary of Defense or State to a
    license application as confirmation that the application is
    consistent with U.S national security and international
    obligations within a specific time period. Encourages the U.S.
    government to consider providing vouchers for use of U.S.
    commercial remote sensing services and products to developing
    nations as a component of U.S. international aid programs.

    Committee Views

        Congress worked on a bipartisan basis to pass the Land
    Remote Sensing Policy Act of 1992 (P.L. 102-555), which
    President Bush signed. That law enabled the commercial sector
    to design, build, own and operate satellites that image the
    Earth from space. Such systems have multiple uses, including
    land-use planning, construction site management, precision
    agriculture, pollution detection and environmental cleanup. The
    Department of Commerce estimates that this market could reach
    $2.4 billion by the year 2000. Several foreign governments are
    entering this commercial market and directing their government
    space agencies or government-owned firms to sell remote sensing
    data on the commercial market.
        Given this development and 5 years of experience with the
    1992 Act, there is a need to update the law and preserve the
    competitive advantage that U.S. companies have in this
    industry. To its credit, the Department of Commerce has
    improved the licensing process considerably since its first
    experiences. Both the National Oceanic and Atmospheric
    Administration and Office of Air and Space Commercialization
    have worked assiduously to draft new regulations and remove
    obstacles to the industry's accelerated growth. Nevertheless,
    the need to update existing law remains.
        The bill establishes a presumption that a license
    application which satisfies the requirements of law shall be
    granted. While this would seem self-evident, it is the
    Committee's intention to signal its strong support of this area
    of economic growth. Furthermore, the presumption to grant a
    license should make it clear that the burden of proof for
    denying a license rests with the Federal Government. In other
    words, it is not the license applicant's burden to prove that
    it should be allowed to engage in legal commercial activity.
    Instead, it is the government's responsibility to clearly
    demonstrate that an applicant should not receive a license if
    such a license is to be denied. The Secretary of Commerce
    continues to retain authority and responsibility to exercise
    judgment about the appropriateness of granting an applicant's
    license, while the Secretaries of Defense and State
    respectively retain their authority to determine that a granted
    license is consistent with U.S. national security concerns and
    international obligations.
        There is a specific timeline in which the Secretary of
    Commerce, under current law, has to consider an application for
    a license to operate a commercial remote sensing satellite.
    Unfortunately, in the case of some licenses that have been
    issued under the law, the Commerce Department has exceeded the
    timeframe in which it is supposed to rule on a license
    application. Part of the problem has occurred at the beginning
    of the process, while the Commerce Department and the license
    applicant negotiate the information that must be included in an
    application in order to consider it complete. The bill requires
    the Secretary of Commerce to determine what information is
    necessary for an application to be considered complete and to
    make its determination public, so that there is a common frame
    of reference for all applicants. In this manner, both the
    commercial sector and the government will share a common
    understanding of the parameters for considering license
    applications. It is the Committee's presumption that the 120-
    day timeframe in which the United States has to act on a
    license application under existing law will not begin until the
    license application is considered complete, as determined by
    the Department of Commerce.
        Another reason the timeframe for granting or denying an
    application has been exceeded is the lengthy interagency
    process for reviewing license applications. Both the Secretary
    of Defense and the Secretary of State review license
    applications to ensure that they are consistent with U.S.
    national security concerns and international obligations. Both
    Departments have taken too long to make such a determination.
    The bill requires that they inform the Secretary of Commerce of
    any concerns within 60 days of the request from the Secretary
    of Commerce. The Committee presumes that the Secretary of
    Commerce would not make such a request until a license is
    considered complete and the license application contains the
    information needed for the Departments of Defense and State to
    meet their obligation to respond to the Secretary of Commerce
    within 60 days. If no objections are raised by the Secretaries
    of Defense and State within this 60-day period, the Secretary
    of Commerce is to treat the application as consistent with U.S.
    national security and international obligations.
        The Committee expects that concerns raised by the
    Secretaries of Defense or State about a license application or
    the continued operation of a satellite under an existing
    license, during times when national security or international
    obligations are involved, will be of a sufficient nature to
    pass a high standard, such as those that govern prior restraint
    of the media. The Committee believes that long-term national
    security interests are best served if U.S. companies dominate
    the commercial remote sensing industry, which they cannot do if
    foreign governments create a more stable legal and regulatory
    environment governing remote sensing than the U.S. government.
        Today's high technology enterprises and venture capital
    markets are globalized, meaning American companies cannot
    remain at the cutting edge of technology if they do not have
    networks of contacts with overseas entities and access to
    foreign-developed expertise. The U.S. government is still
    working through all of the issues involved in how it regulates
    technology-centered businesses in this new age of globalized
    technology. One mechanism is to require U.S. companies to
    notify the Federal Government of their arrangements with
    foreign entities. The Land Remote Sensing Policy Act of 1992
    (P.L. 102-555), the White House Policy on Remote Sensing
    (1994), and H.R. 1702, the Commercial Space Act of 1997 all
    contain such notification requirements. The intention of the
    provision in the Land Remote Sensing Policy Act of 1992 was to
    protect U.S. national security interests by ensuring that a
    licensee was not controlled by a foreign entity and to provide
    information on which customers are obtaining which images.
    However, in practice, licensed U.S. commercial remote sensing
    satellite firms have been required to report financing and
    investment transactions that do not directly affect corporate
    control or imaging activities. Additionally, such notification
    has triggered an interagency review of the original license
    application and the allowable imaging activities. The Committee
    believes that this practice exceeds the authority given to the
    Executive Branch in the original Act and that it should not be
    continued. The President's policy on remote sensing is entirely
    correct on this matter. It reads, ``Pursuant to this Act, the
    U.S. Government requires U.S. companies that have been issued
    operating licenses under the Act to notify the U.S. Government
    of its intent to enter into significant or substantial
    agreements with new foreign customers.'' Reviews of agreements
    between U.S.-licensed companies and foreign entities that
    explore more than the distribution of data exceed the authority
    contained in the President's policy. The bill's language
    regarding ``significant or substantial agreement relating to
    land remote sensing'' is not to be viewed as inconsistent with
    the existing practice of requiring licensees to notify the
    Secretary of Commerce of any significant or substantial
    agreements that affect control of the licensee by U.S. persons.
        H.R. 1702 requires licensees to notify the government only
    of ``any significant or substantial agreement relating to land
    remote sensing.'' The bill preserves the ability of the U.S.
    government to review images taken by a U.S. company and to
    verify that U.S. licensed companies and their satellites remain
    under the control of U.S. persons. It does not require
    licensees to report every transaction with a foreign entity to
    the U.S. government. Therefore, it strikes an appropriate
    balance between the need to provide a stable business
    environment with the need to provide effective protection of
    U.S. national security concerns and international obligations.
        To remain in business, high technology enterprises must
    make business decisions more quickly than the government does.
    The slow pace of government decision-making thus threatens to
    hinder the competitive advantage that U.S. firms seek over
    their foreign competition. Therefore, the bill requires the
    Secretary of Commerce to respond to a notification of a foreign
    agreement within 30 days. The bill prohibits the Secretary of
    Commerce from seeking to enjoin a U.S. company from entering
    into such agreements without notifying the licensee within 30
    days that the agreement is inconsistent with U.S. national
    security or international obligations. The Secretary of
    Commerce is further required to explain such inconsistencies in
    detail, since the Federal Government has a responsibility to
    tell U.S. citizens engaging in legal commercial activity why it
    intends to prohibit them from engaging in legal commercial
    activity. Only by telling licensees why agreements are deemed
    inconsistent with U.S. national security and international
    obligations can the government expect them to make future
    efforts to avoid entering into similar agreements. In this
    manner, companies will not be forced to waste resources waiting
    too long for a government decision. This provision should not
    be interpreted as undermining the Secretary's authority under
    Section 203 of the Land Remote Sensing Policy Act of 1992 to go
    to court to alter a granted license or terminate the operation
    of a licensed satellite if the Secretary deems doing so is
    necessary to ensure the licensee lives up to its obligation to
    operate a remote sensing spacecraft in a manner consistent with
    U.S. national security concerns or international obligations.
    It is the Committee's interpretation that the Secretary's
    authority under Section 203 of the Land Remote Sensing Policy
    Act of 1992 exists at all times, regardless of what type of
    information about foreign agreements the Secretary has and the
    timeframe in which the Secretary received it.
        The bill adds a new paragraph to Section 301 of the Land
    Remote Sensing Policy Act of 1992. The new paragraph prohibits
    the Federal Government from duplicating or otherwise competing
    with the commercial sector in offering commercial remote
    sensing goods and services, including value-added activity
    undertaken by the Geographic Information Systems industry in
    the United States. Exceptions are permitted when government
    duplication of a commercial activity results in significant
    cost savings or is necessary for reasons of national security
    or international obligations. Given the extraordinary lengths
    to which the government goes to spin technology off into the
    commercial sector and thereby create new goods, services, and
    jobs, it makes no sense for the government to offer commercial
    goods and services that compete with the commercial sector.
    This measure does not prohibit public-private partnerships to
    create new technology. Rather, it prevents the government from
    wasting tax dollars to duplicate goods and services already
    available from the commercial sector.
        Finally, current law encourages the U.S. government to
    provide appropriate imagery to countries receiving foreign aid
    as a component of the foreign aid program. Commercial remote
    sensing imagery can be very conducive to foreign aid and such
    imagery can help the developing world more efficiently manage
    its resources and economic growth. Nevertheless, the Committee
    does not believe that the U.S. government should be in the
    commercial remote sensing business. Therefore, the bill alters
    this section of the 1992 Act and encourages U.S. departments
    and agencies that manage foreign aid programs to provide
    vouchers for developing nations to obtain remote sensing
    imagery and interpretative training from commercial providers.

    Section 202 Acquisition of Earth Science Data

    Sectional Analysis

        This section states that NASA shall, to the maximum extent
    possible, acquire Earth remote sensing data from commercial
    providers, where cost-effective, and while satisfying
    scientific requirements. Acquisitions are to be carried out in
    accordance with applicable acquisition laws and regulations.
    Further, Earth remote sensing data is to be treated as a
    commercial item under applicable acquisition laws. The section
    also requires a study on how scientific requirements of Mission
    to Planet Earth can be met by commercial providers.

    Committee Views

        This provision of the bill directs NASA to purchase
    commercial Earth science data to meet the requirements of
    Mission to Planet Earth when such data is cost-effective and
    satisfies scientific requirements. Furthermore, the bill
    directs NASA to treat such data as a commercial item under
    applicable acquisition laws.
        The section also directs NASA to conduct a study to
    determine how commercial provider capabilities can be best used
    to meet Mission to Planet Earth's baseline scientific
    requirements. As part of the study, NASA is expected to
    determine what steps are necessary by both the commercial
    sector and the Federal Government to make this program
    efficient and effective. Finally, the study and data purchase
    activity is required to be carried out by the Commercial Remote
    Sensing Program (CRSP) at the Stennis Space Center. CRSP is
    widely acknowledged as one of the Nation's premier institutions
    for stimulating private investment in space capabilities that
    help meet government needs. Because CRSP is small, streamlined,
    and horizontally organized, the program succeeds largely
    because it is able to make decisions quickly and enjoys a
    degree of autonomy that reduces bureaucratic costs.

    Title III--Federal Acquisition of Space Transportation Services

    Section 301 Requirement to Procure Commercial Space Transportation
            Services

    Sectional Analysis

        Requires the Federal Government to procure space
    transportation services from U.S. commercial providers and, to
    the maximum practicable extent, plan missions to accommodate
    the space transportation capabilities of U.S. commercial
    providers. Exceptions to this policy: the payload requires the
    unique capabilities of the Space Shuttle; U.S. commercial
    providers cannot provide cost-effective space transportation
    services when required; the use of space transportation
    services from U.S. commercial providers poses an unacceptable
    risk of loss of a unique scientific opportunity; the use of
    space transportation services from U.S. commercial providers is
    inconsistent with U.S. national security objectives; it is more
    cost-effective to launch a payload in conjunction with the test
    or demonstration of a space transportation vehicle owned by the
    Federal Government; or 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 specific requirements
    authorized by the Administrator. Directs only the Secretary of
    the Air Force or the NASA Administrator to make determinations
    about when an exception shall be granted. Does not apply to
    space transportation services and vehicles acquired or owned by
    the Federal Government before the enactment date or to
    contracts for such acquisition or ownership that have been
    entered into prior to the enactment date.

    Committee Views

        This provision is intended to promote the operation of a
    market in space transportation services that will enable U.S.
    commercial space transportation companies to focus their
    business on beating foreign competition in providing such
    services, rather than on increasing the award fee in contracts
    with the Federal Government. To its credit, NASA already
    purchases space transportation services commercially. The
    Department of Defense, however, continues to purchase space
    transportation vehicles instead of services. It is concerned
    that the classified nature of many Defense Department payloads
    would be at risk if the Department procured commercial space
    transportation services from the commercial sector. The
    commercial sector actually builds the classified payloads that
    Department of Defense launches. If the Defense Department can
    accept that the commercial sector can build its classified
    payloads, then it should be able to accept the commercial
    sector launching them. In any event, the section does address
    Defense Department concerns by making an exception to the
    requirement to purchase commercial space transportation
    services in cases where that is inconsistent with U.S. national
    security. Furthermore, the ``case-by-case'' determination by
    the Secretary of the Air Force, as required in Title III,
    Section 301, paragraph (b), is not required for each individual
    launch. The Secretary may make a blanket determination for a
    class of payloads--such as Global Positioning System Satellites
    or Defense Support Program satellites--as part of the approval
    process for a space program acquisition decision.

    Section 302 Acquisition of Space Transportation Services

    Sectional Analysis

        Space transportation services are to be considered a
    ``commercial item'' for purposes of acquisition laws and
    regulations.

    Committee Views

        Consistent with ongoing efforts to reform the federal
    procurement system and reduce the costs of government activity,
    this section requires the Federal Government to act in the
    manner of a commercial customer when it procures space
    transportation services.

    Section 303 Launch Services Purchase Act of 1990 Amendments

    Sectional Analysis

        Updates the Launch Services Purchase Act of 1990 (42 U.S.C.
    2465b et seq.)

    Committee Views

        This section updates the Launch Services Purchase Act to
    conform to other sections of the bill. It also preserves the
    prohibition against the Space Shuttle launching commercial
    payloads.

                          VII. Committee Cost Estimate

        Clause 7(a) of Rule XIII of the Rules of the House of
    Representatives requires each committee report accompanying
    each bill or joint resolution of a public character to contain:
    (1) an estimate, made by such Committee, of the costs which
    would be incurred in carrying out such bill or joint resolution
    in the fiscal year in which it is reported, and in each of the
    5 fiscal years following such fiscal year (or for the
    authorized duration of any program authorized by such bill or
    joint resolution, if less than 5 years); (2) a comparison of
    the estimate of costs described in subparagraph (1) of this
    paragraph made by such Committee with an estimate of such costs
    made by any government agency and submitted to such Committee;
    and (3) when practicable, a comparison of the total estimated
    funding level for the relevant program (or programs) with the
    appropriate levels under current law. However, clause 7(d) of
    that Rule provides that this requirement does not apply when a
    cost estimate and comparison prepared by the Director of the
    Congressional Budget Office under section 403 of the
    Congressional Budget Act of 1974 has been timely submitted
    prior to the filing of the report and included in the report
    pursuant to clause 2(l)(3)(C) of Rule XI. A cost estimate and
    comparison prepared by the Director of the Congressional Budget
    Office under section 403 of the Congressional Budget Act of
    1974 has been timely submitted prior to the filing of this
    report and included in Section VIII of this report pursuant to
    clause 2(l)(3)(C) of Rule XI.
        Clause 2(l)(3)(B) of Rule XI of the Rules of the House of
    Representatives requires each committee report that accompanies
    a measure providing new budget authority (other than continuing
    appropriations), new spending authority, or new credit
    authority, or changes in revenues or tax expenditures to
    contain a cost estimate, as required by section 308(a)(1) of
    the Congressional Budget Act of 1974 and, when practicable with
    respect to estimates of new budget authority, a comparison of
    the total estimated funding level for the relevant program (or
    programs) to the appropriate levels under current law. H.R.
    1702 does not contain any new budget authority, credit
    authority, or changes in revenues or tax expenditures. Assuming
    that the sums authorized under the bill are appropriated, H.R.
    1702 does authorize additional discretionary spending, as
    described in the Congressional Budget Office report on the
    bill, which is contained in Section VIII of this report.

                VIII. Congressional Budget Office Cost Estimate

                                    Congressional Budget Office
                                                  U.S. Congress
                                          Washington, DC. 20515
                                      June E. O'Neill, Director

                                                          June 24, 1997
    Honorable F. James Sensenbrenner, Jr.,
    Chairman, Committee on Science,
    U.S. House of Representatives,
    Washington, DC. 20515

        Dear Mr. Chairman:
        The Congressional Budget Office has prepared the enclosed cost
    estimate for H.R. 1702, the Commercial Space Act of 1997.
        If you wish further details on this estimate, we will be pleased to
    provide them. The CBO staff contacts are Kathleen Gramp (for federal
    costs), who can be reached at 226-2860, Pepper Santalucia (for the
    state and local impact), who can be reached at 225-3220, and Lesley
    Frymier (for the impact on the private sector), who can be reached at
    226-2940.
    Sincerely,
                                      James L. Blum for June E. O'Neill

    Enclosure

    cc: Honorable George E. Brown, Jr., Ranking Minority Member
                                     ______

                   CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
                                 June 24, 1997
                                   H.R.  1702
                          Commercial Space Act of 1997
    As ordered reported by the House Committee on Science on June 18, 1997

    SUMMARY
        H.R. 1702 would revise federal policies related to the procurement
    and licensing of services and products provided by the commercial space
    industry. Assuming the appropriation of the necessary amounts, CBO
    estimates that enacting H.R. 1702 would result in increased
    discretionary spending of about $4 million to $7 million over the 1998-
    2002 period. Because H.R. 1702 could affect direct spending and
    revenues, pay-as-you-go procedures would apply. CBO estimates, however,
    that any such effects would be negligible.
        The bill contains no intergovernmental mandates as defined in the
    Unfunded Mandates Reform Act of 1995 (UMRA), and would not impose any
    costs on state, local, or tribal governments. The bill would impose new
    private-sector mandates, but CBO estimates that the cost of these
    mandates would not exceed the statutory threshold established in UMRA.
        This bill would define space transportation services, remote
    sensing data, and space science data as ``commercial items'' for the
    purposes of certain procurement policies, and would require federal
    agencies to acquire these services from the private sector, subject to
    certain conditions. It would change the process and conditions for
    licensing remote sensing systems and would expand the scope of
    licensing of space transportation systems to include reentry vehicles,
    sites, and operations. The National Aeronautics and Space
    Administration (NASA) would be directed to conduct studies on
    opportunities for private sector participation in the International
    Space Station and Mission to Planet Earth. Finally, the bill would
    encourage the President to promote international acceptance of the U.S.
    Global Positioning System as the standard for such systems.
    ESTIMATED COST TO THE FEDERAL GOVERNMENT
        CBO expects that federal agencies would incur additional costs
    ranging from about $4 million to $7 million over the 1998-2002 period
    to implement H.R. 1702. Assuming the appropriation of the necessary
    amounts, enacting this bill would increase discretionary spending by a
    corresponding amount. Provisions related to launch services and the
    licensing of reentry vehicles could affect direct spending and
    revenues, but CBO estimates that the effects would not be significant.
    Spending Subject to Appropriation
        The estimated increase in discretionary spending primarily reflects
    the costs that would be incurred to implement the reporting and
    licensing requirements of the bill. For example, H.R. 1702 would
    require the Department of State and the Department of Defense (DOD) to
    publish lists of all international agreements and national security
    issues that pertain to the licensing of private remote sensing systems
    within 180 days after enactment. NASA would have to fund an
    independently conducted market study of private-sector interest in
    aspects of the space station and report to the Congress on
    opportunities associated with the space station and the Mission to
    Planet Earth. The bill also would direct the Office of Commercial Space
    Transportation (OCST, at the Department of Transportation) to issue
    regulations for licensing reentry vehicles, sites, and operations, and
    the National Oceanic and Atmospheric Administration (NOAA, at the
    Department of Commerce) to revise regulations related to the licensing
    of remote sensing space systems. Based on information provided by these
    agencies, CBO estimates that the cost of performing these tasks would
    total about $2 million to $3 million governmentwide in 1998.
        Provisions affecting the acquisition of space-related services are
    likely to increase agencies' administrative costs, at least in the
    near-term. Under this bill, DOD and NASA would have to issue a
    determination supporting the choice of a space transportation system
    for each launch rather than making these decisions for clusters of
    systems (e.g., based on performance blocks or payload risk). CBO
    estimates that federal spending would increase by about $2 million to
    $4 million over the 1998-2002 period because of the additional analyses
    and studies that would be required to support the choice of services.
    According to agency officials, the provisions defining space
    transportation services, remote sensing data, and space science data as
    ``commercial items'' could increase the time and effort involved in
    evaluating contracts because that designation would limit the scope of
    information readily available from vendors on product specifications.
    The potential impact of this change on agencies' costs is difficult to
    project with any certainty, however.
        CBO estimates that directing NASA to purchase space science and
    Earth system data from commercial providers when cost-effective would
    not significantly affect federal spending. Several agencies, including
    NOAA, the U.S. Geological Survey, and the Federal Emergency Management
    Agency, currently buy remote sensing data from NASA at its marginal
    cost, which may be less than what they would have to pay if NASA had to
    acquire the information from commercial providers. Assuming that NASA
    would purchase commercial data only if the terms of the acquisition
    would be cost-effective governmentwide, these provisions should not
    increase costs to the government. At the same time, very few commercial
    ventures now provide the kinds of data used by federal agencies, so
    there is no basis for estimating any near-term savings for the
    government from this policy.
        Likewise, CBO estimates that the provisions in the bill requiring
    DOD and NASA to acquire space transportation systems from commercial
    providers when cost-effective are unlikely to have a significant effect
    on federal spending for launch services over the next five years.
    Launch services for most DOD missions planned for the 1998-2002 period,
    for example, are already under contract and hence would be exempt from
    the mandates that would be imposed by H.R. 1702. Any reduction in the
    government's cost of space transportation services resulting from this
    bill would most likely occur sometime in the future.
        Finally, H.R. 1702 would strengthen the government's obligation to
    reimburse licensees of remote sensing systems for the cost of technical
    modifications needed to comply with conditions that DOD or the State
    Department impose on these licensees for national security purposes.
    Because CBO expects these agencies to reimburse licensees for all
    appropriate costs under current law, we estimate that requiring such
    payments would not significantly change the amounts that would be paid.
    Other provisions of the bill would not have a significant effect on
    discretionary spending.
    Direct Spending
        Enacting H.R. 1702 could affect the collecting and spending of
    receipts paid by nonfederal entities that use federal launch property
    or services, but we estimate that the net impact would not be
    significant. Under current law, nonfederal entities reimburse DOD and
    NASA for using such facilities and the agencies directly spend the
    proceeds to cover the costs incurred. Because any increase in receipts
    resulting from additional commercial activity would be offset by direct
    spending, the net effect of the bill on direct spending would be
    negligible.
    Revenues
        H.R. 1702 would allow OCST to impose civil penalties on violators
    of licensing agreements, which could affect revenues. CBO estimates
    that any additional receipts from civil penalties associated with the
    OCST licensing activities required by this bill would be insignificant.
    To date, OCST has never collected a penalty for a violation of the
    licensing and related requirements of the commercial space
    transportation program.
    PAY-AS-YOU-GO CONSIDERATIONS
        Section 252 of the Balanced Budget and Emergency Deficit Control
    Act of 1985 sets up pay-as-you-go procedures for legislation affecting
    direct spending or receipts through 1998. Enacting H.R. 1702 could
    affect direct spending and receipts because of provisions involving
    reimbursement for the use of certain federal services and facilities
    and imposing civil penalties for failure to comply with space
    transportation regulations. CBO estimates, however, that these
    provisions would have little or no budgetary impact.
    ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS
        H.R. 1702 contains no intergovernmental mandates as defined in
    UMRA, and would not impose any costs on state, local, or tribal
    governments. The bill would broaden the scope of the Department of
    Transportation's commercial space transportation program to include
    inspace transportation and reentry activities, rather than just launch
    activities. One of the purposes of this program is to facilitate the
    participation of state governments in the provision of space
    transportation infrastructure, such as launch sites. The Secretary of
    Transportation is required to make excess launch property available to
    state governments. By broadening the scope of the program, the bill
    would enable states to receive additional assistance if they choose to
    participate.
    ESTIMATED IMPACT ON THE PRIVATE SECTOR
        Section 102 would require operators of reentry sites to obtain a
    license from the OCST for reentry sites, vehicles, and services. CBO
    estimates that the direct costs of these private sector mandates would
    not exceed the statutory threshold ($100 million in 1996, adjusted
    annually for inflation) established in UMRA in any one year.
    PREVIOUS CBO ESTIMATE
        On April 21, 1997, CBO transmitted a cost estimate for H.R. 1275,
    the Civilian Space Authorization Act, Fiscal Years 1998 and 1999, as
    ordered reported by the House Committee on Science on April 16, 1997.
    H.R. 1275 included provisions similar to those in H.R. 1702 regarding
    OCST licensing and NASA's acquisition of remote sensing and space
    science data. Unlike H.R. 1275, the OCST provisions of H.R. 1702 would
    not affect direct spending because this bill would not change the
    statutory basis of the fees paid to reimburse federal agencies for the
    use of launch services or facilities.
    ESTIMATE PREPARED BY:
        Federal Costs: Kathleen Gramp (226-2860)
        Impact on State, Local, and Tribal Governments: Pepper Santalucia
    (225-3220)
        Impact on the Private Sector: Lesley Frymier (226-2940)
    ESTIMATE APPROVED BY:
        Paul N. Van de Water, Assistant Director for Budget Analysis

                      IX. Compliance with Public Law 104-4

        H.R. 1702 contains no unfunded mandates.

              X. Committee Oversight Findings and Recommendations

        Clause 2(l)(3)(A) of Rule XI of the Rules of the House of
    Representatives requires each committee report to include
    oversight findings and recommendations required pursuant to
    clause 2(b)(1) of Rule X. The Committee has no oversight
    findings.

        XI. Oversight Findings and Recommendations by the Committee on
                        Government Reform and Oversight

        Clause 2(l)(3)(D) of Rule XI of the Rules of the House of
    Representatives requires each committee report to contain a
    summary of the oversight findings and recommendations made by
    the House Government Reform and Oversight Committee pursuant to
    clause 4(c)(2) of Rule X, whenever such findings and
    recommendations have been submitted to the Committee in a
    timely fashion. The Committee on Science has received no such
    findings or recommendations from the Committee on Government
    Reform and Oversight.

                    XII. Constitutional Authority Statement

        Clause 2(l)(4) of Rule XI of the Rules of the House of
    Representatives requires each report of a Committee on a bill
    or joint resolution of a public character to include a
    statement citing the specific powers granted to the Congress in
    the Constitution to enact the law proposed by the bill or joint
    resolution. Article 1, section 8 of the Constitution of the
    United States grants Congress the authority to enact H.R. 1702.

                   XIII. Federal Advisory Committee Statement

        This legislation does not establish, or authorize the
    establishment of, any new Federal Advisory Committee.

                     XIV. Congressional Accountability Act

        The Committee finds that H.R. 1702 does not relate to the
    terms and conditions of employment or access to public services
    or accommodations within the meaning of section 102(b)(3) of
    the Congressional Accountability Act (Public Law 104-1).

                    XV. Effects of Legislation on Inflation

        The legislation should have no effect on inflation rates.

           XVI. Changes in Existing Law Made by the Bill, as Reported

        In compliance with clause 3 of rule XIII of the Rules of
    the House of Representatives, changes in existing law made by
    the bill, as reported, are shown as follows (existing law
    proposed to be omitted is enclosed in black brackets, new
    matter is printed in italics, existing law in which no change
    is proposed is shown in roman):

                  CHAPTER 701 OF TITLE 49, UNITED STATES CODE

              * * * * * * *

                CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES

    Sec.
    70101.  Findings and purposes.
         * * * * * * *
    [70104.  Restrictions on launches and operations.]
    70104.  Restrictions on launches, operations, and reentries.
         * * * * * * *
    [70108.  Prohibition, suspension, and end of launches and operation of
              launch sites.
    [70109.  Preemption of scheduled launches.]
    70108.  Prohibition, suspension, and end of launches, operation of
              launch sites and reentry sites, and reentries.
    70109.  Preemption of scheduled launches or reentries.
         * * * * * * *
    70120.  Regulations.
    70121.  Report to Congress.

    Sec. 70101. Findings and purposes

        (a) Findings.--Congress finds that--
                (1) * * *
              * * * * * * *
                (3) new and innovative equipment and services are
            being sought, produced, and offered by entrepreneurs in
            telecommunications, information services, microgravity
            research, and remote sensing technologies;
                (4) the private sector in the United States has the
            capability of developing and providing private
            satellite launching, reentry, and associated services
            that would complement the launching, reentry, and
            associated services now available from the United
            States Government;
                (5) the development of commercial launch vehicles,
            reentry vehicles, and associated services would enable
            the United States to retain its competitive position
            internationally, contributing to the national interest
            and economic well-being of the United States;
                (6) providing launch services and reentry services
            by the private sector is consistent with the national
            security and foreign policy interests of the United
            States and would be facilitated by stable, minimal, and
            appropriate regulatory guidelines that are fairly and
            expeditiously applied;
                (7) the United States should encourage private
            sector launches, reentries, and associated services
            and, only to the extent necessary, regulate those
            launches, reentries, and services to ensure compliance
            with international obligations of the United States and
            to protect the public health and safety, safety of
            property, and national security and foreign policy
            interests of the United States;
                (8) space transportation, including the
            establishment and operation of launch sites, reentry
            sites, and complementary facilities, the providing of
            launch services and reentry services, the establishment
            of support facilities, and the providing of support
            services, is an important element of the transportation
            system of the United States, and in connection with the
            commerce of the United States there is a need to
            develop a strong space transportation infrastructure
            with significant private sector involvement; and
                (9) the participation of State governments in
            encouraging and facilitating private sector involvement
            in space-related activity, particularly through the
            establishment of a space transportation-related
            infrastructure, including launch sites, reentry sites,
            complementary facilities, and launch site and reentry
            site support facilities, is in the national interest
            and is of significant public benefit.
        (b) Purposes.--The purposes of this chapter are--
                (1) to promote economic growth and entrepreneurial
            activity through use of the space environment for
            peaceful purposes;
                (2) to encourage the United States private sector
            to provide launch vehicles, reentry vehicles, and
            associated services by--
                        (A) simplifying and expediting the issuance
                    and transfer of commercial [launch] licenses;
                    and
                        (B) facilitating and encouraging the use of
                    Government-developed space technology;
                (3) to provide that the Secretary of Transportation
            is to oversee and coordinate the conduct of commercial
            launch and reentry operations, issue and transfer
            commercial [launch] licenses authorizing those
            operations, and protect the public health and safety,
            safety of property, and national security and foreign
            policy interests of the United States; and
                (4) to facilitate the strengthening and expansion
            of the United States space transportation
            infrastructure, including the enhancement of United
            States launch sites and launch-site support facilities,
            and development of reentry sites, with Government,
            State, and private sector involvement, to support the
            full range of United States space-related activities.

    Sec. 70102. Definitions

        In this chapter--
                (1) * * *
              * * * * * * *
                (3) ``launch'' means to place or try to place a
            launch vehicle [and any payload] or reentry vehicle and
            any payload from Earth--
                        (A) in a suborbital trajectory;
                        (B) in Earth orbit in outer space; or
                        (C) otherwise in outer space[.],
            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.
                (4) ``launch property'' means an item built for, or
            used in, the launch preparation or launch of a launch
            vehicle.
                (5) ``launch services'' means--
                        (A) activities directly related to the
                    preparation of a launch site or payload
                    facility for one or more launches;
                        [(A)] (B) activities involved in the
                    preparation of a launch vehicle and payload for
                    launch; and
                        [(B)] (C) the conduct of a launch.
              * * * * * * *
                (8) ``payload'' means an object that a person
            undertakes to place in outer space by means of a launch
            vehicle or reentry vehicle, including components of the
            vehicle specifically designed or adapted for that
            object.
                (9) ``person'' means an individual and an entity
            organized or existing under the laws of a State or
            country.
                (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.
                [(10)] (14) ``State'' means a State of the United
            States, the District of Columbia, and a territory or
            possession of the United States.
                [(11)] (15) ``third party'' means a person except--
                        (A) the United States Government or the
                    Government's contractors or subcontractors
                    involved in launch services or reentry
                    services;
                        (B) a licensee or transferee under this
                    chapter;
                        (C) a licensee's or transferee's
                    contractors, subcontractors, or customers
                    involved in launch services or reentry
                    services; or
                        (D) the customer's contractors or
                    subcontractors involved in launch services or
                    reentry services.
                [(12)] (16) ``United States'' means the States of
            the United States, the District of Columbia, and the
            territories and possessions of the United States.

    Sec. 70103. General authority

        (a) General.--The Secretary of Transportation shall carry
    out this chapter.
        (b) Facilitating Commercial Launches and Reentries.--In
    carrying out this chapter, the Secretary shall--
                (1) encourage, facilitate, and promote commercial
            space launches and reentries by the private sector; and
                (2) take actions to facilitate private sector
            involvement in commercial space transportation
            activity, and to promote public-private partnerships
            involving the United States Government, State
            governments, and the private sector to build, expand,
            modernize, or operate a space launch and reentry
            infrastructure.
        (c) Executive Agency Assistance.--When necessary, the head
    of an executive agency shall assist the Secretary in carrying
    out this chapter.

    [Sec. 70104. Restrictions on launches and operations]

    Sec. 70104. Restrictions on launches, operations, and reentries

        (a) License Requirement.--A license issued or transferred
    under this chapter is required for the following:
                (1) for a person to launch a launch vehicle or to
            operate a launch site or reentry site, or to reenter a
            reentry vehicle, in the United States.
                (2) for a citizen of the United States (as defined
            in section 70102(1)(A) or (B) of this title) to launch
            a launch vehicle or to operate a launch site or reentry
            site, or to reenter a reentry vehicle, outside the
            United States.
                (3) for a citizen of the United States (as defined
            in section 70102(1)(C) of this title) to launch a
            launch vehicle or to operate a launch site or reentry
            site, or to reenter a reentry vehicle, outside the
            United States and outside the territory of a foreign
            country unless there is an agreement between the United
            States Government and the government of the foreign
            country providing that the government of the foreign
            country has jurisdiction over the launch or operation
            or reentry.
                (4) for a citizen of the United States (as defined
            in section 70102(1)(C) of this title) to launch a
            launch vehicle or to operate a launch site or reentry
            site, or to reenter a reentry vehicle, in the territory
            of a foreign country if there is an agreement between
            the United States Government and the government of the
            foreign country providing that the United States
            Government has jurisdiction over the launch or
            operation or reentry.
        (b) Compliance With Payload Requirements.--The holder of a
    [launch license] license under this chapter may launch or
    reenter a payload only if the payload complies with all
    requirements of the laws of the United States related to
    launching or reentering a payload.
        (c) [Preventing Launches.--] Preventing Launches and
    Reentries.--The Secretary of Transportation shall establish
    whether all required licenses, authorizations, and permits
    required for a payload have been obtained. If no license,
    authorization, or permit is required, the Secretary may prevent
    the launch or reentry if the Secretary decides the launch or
    reentry would jeopardize the public health and safety, safety
    of property, or national security or foreign policy interest of
    the United States.

    Sec. 70105. License applications and requirements

        (a) Applications.--(1) A person may apply to the Secretary
    of Transportation for a license or transfer of a license under
    this chapter in the form and way the Secretary prescribes.
    Consistent with the public health and safety, safety of
    property, and national security and foreign policy interests of
    the United States, the Secretary, not later than 180 days after
    [receiving an application] accepting an application in
    accordance with criteria established pursuant to subsection
    (b)(2)(D), shall issue or transfer a license if the Secretary
    decides in writing that the applicant complies, and will
    continue to comply, with this chapter and regulations
    prescribed under this chapter. The Secretary shall inform the
    applicant of any pending issue and action required to resolve
    the issue if the Secretary has not made a decision not later
    than 120 days after [receiving an application] accepting an
    application in accordance with criteria established pursuant to
    subsection (b)(2)(D). The Secretary shall submit 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.
        (b) Requirements.--(1) Except as provided in this
    subsection, all requirements of the laws of the United States
    applicable to the launch of a launch vehicle or the operation
    of a launch site or a reentry site, or the reentry of a reentry
    vehicle, are requirements for a license under this chapter.
        (2) The Secretary may prescribe--
                (A) any term necessary to ensure compliance with
            this chapter, including on-site verification that a
            launch [or operation], operation, or reentry complies
            with representations stated in the application;
                (B) an additional requirement necessary to protect
            the public health and safety, safety of property,
            national security interests, and foreign policy
            interests of the United States; [and]
                (C) by regulation that a requirement of a law of
            the United States not be a requirement for a license if
            the Secretary, after consulting with the head of the
            appropriate executive agency, decides that the
            requirement is not necessary to protect the public
            health and safety, safety of property, and national
            security and foreign policy interests of the United
            States[.]; and
                (D) regulations establishing criteria for accepting
            or rejecting an application for a license under this
            chapter within 60 days after receipt of such
            application.
        (3) The Secretary may waive a requirement, including the
    requirement to obtain a license, for an individual applicant if
    the Secretary decides that the waiver is in the public interest
    and will not jeopardize the public health and safety, safety of
    property, and national security and foreign policy interests of
    the United States.
        (c) Procedures and Timetables.--The Secretary shall
    establish procedures and timetables that expedite review of a
    license application and reduce the regulatory burden for an
    applicant.

    Sec. 70106. Monitoring activities

        (a) General Requirements.--A licensee under this chapter
    must allow the Secretary of Transportation to place an officer
    or employee of the United States Government or another
    individual as an observer at a launch site or reentry site the
    licensee uses, at a production facility or assembly site a
    contractor of the licensee uses to produce or assemble a launch
    vehicle or reentry vehicle, or at a site at which a payload is
    integrated with a launch vehicle or reentry vehicle. The
    observer will monitor the activity of the licensee or
    contractor at the time and to the extent the Secretary
    considers reasonable to ensure compliance with the license or
    to carry out the duties of the Secretary under section 70104(c)
    of this title. A licensee must cooperate with an observer
    carrying out this subsection.
              * * * * * * *

    [Sec. 70108. Prohibition, suspension, and end of launches and operation
                        of launch sites]

    Sec. 70108. Prohibition, suspension, and end of launches, operation of
                        launch sites and reentry sites, and reentries

        (a) General Authority.--The Secretary of Transportation may
    prohibit, suspend, or end immediately the launch of a launch
    vehicle or the operation of a launch site or reentry site, or
    reentry of a reentry vehicle, licensed under this chapter if
    the Secretary decides the launch or operation or reentry is
    detrimental to the public health and safety, the safety of
    property, or a national security or foreign policy interest of
    the United States.
        (b) Effective Periods of Orders.--An order under this
    section takes effect immediately and remains in effect during a
    review under section 70110 of this title.

    [Sec. 70109. Preemption of scheduled launches]

    Sec. 70109. Preemption of scheduled launches or reentries

        (a) General.--With the cooperation of the Secretary of
    Defense and the Administrator of the National Aeronautics and
    Space Administration, the Secretary of Transportation shall act
    to ensure that a launch or reentry of a payload is not
    preempted from access to a United States Government launch
    site, reentry site, or launch property, except for imperative
    national need, when a launch date commitment or reentry date
    commitment from the Government has been obtained for a launch
    or reentry licensed under this chapter. A licensee or
    transferee preempted from access to a launch site, reentry
    site, or launch property does not have to pay the Government
    any amount for launch services, or services related to a
    reentry, attributable only to the scheduled launch or reentry
    prevented by the preemption.
              * * * * * * *
        (c) Reports.--In cooperation with the Secretary of
    Transportation, the Secretary of Defense or the Administrator,
    as appropriate, shall submit to Congress not later than 7 days
    after a decision to preempt under subsection (a) of this
    section, a report that includes an explanation of the
    circumstances justifying the decision and a schedule for
    ensuring the prompt launching or reentry of a preempted
    payload.

    Sec. 70110. Administrative hearings and judicial review

        (a) Administrative Hearings.--The Secretary of
    Transportation shall provide an opportunity for a hearing on
    the record to--
                (1) an applicant under this chapter, for a decision
            of the Secretary under section 70105(a) of this title
            to issue or transfer a license with terms or deny the
            issuance or transfer of a license;
                (2) an owner or operator of a payload under this
            chapter, for a decision of the Secretary under section
            70104(c) of this title to prevent the launch or reentry
            of the payload; and
                (3) a licensee under this chapter, for a decision
            of the Secretary under--
                        (A) section 70107 (b) or (c) of this title
                    to modify, suspend, or revoke a license; or
                        (B) section 70108(a) of this title to
                    prohibit, suspend, or end a launch or operation
                    of a launch site or reentry site, or reentry of
                    a reentry vehicle, licensed by the Secretary.
        (b) Judicial Review.--A final action of the Secretary under
    this chapter is subject to judicial review as provided in
    chapter 7 of title 5.

    Sec. 70111. Acquiring United States Government property and services

        (a) General Requirements and Considerations.--(1) The
    Secretary of Transportation shall facilitate and encourage the
    acquisition by the private sector and State governments of--
                (A) launch or reentry property of the United States
            Government that is excess or otherwise is not needed
            for public use; and
                (B) launch services and reentry services, including
            utilities, of the Government otherwise not needed for
            public use.
    The Secretary shall establish criteria and procedures for
    determining the priority of competing requests from the private
    sector and State governments for property and services under
    this section.
        (2) In acting under paragraph (1) of this subsection, the
    Secretary shall consider the commercial availability on
    reasonable terms of substantially equivalent launch property or
    launch services or reentry services from a domestic source.
        (b) Price.--(1) In this subsection, ``direct costs'' means
    the actual costs that--
                (A) can be associated unambiguously with a
            commercial launch or reentry effort; and
                (B) the Government would not incur if there were no
            commercial launch or reentry effort.
        (2) In consultation with the Secretary, the head of the
    executive agency providing the property or service under
    subsection (a) of this section shall establish the price for
    the property or service. The price for--
                (A) * * *
              * * * * * * *
                (C) launch services or reentry services is an
            amount equal to the direct costs, including the basic
            pay of Government civilian and contractor personnel,
            the Government incurred because of acquisition of the
            services.
        (3) The Secretary shall ensure the establishment of uniform
    guidelines for, and consistent implementation of, this section
    by all Federal agencies.
              * * * * * * *
        (d) Collection by Other Governmental Heads.--The head of a
    department, agency, or instrumentality of the Government may
    collect a payment for an activity involved in producing a
    launch vehicle [or its payload for launch] or reentry vehicle,
    or the payload of either, for launch or reentry if the activity
    was agreed to by the owner or manufacturer of the launch
    vehicle, or reentry vehicle, or payload.

    Sec. 70112. Liability insurance and financial responsibility
                        requirements

        (a) General Requirements.--(1) When a launch or reentry
    license is issued or transferred under this chapter, the
    licensee or transferee shall obtain liability insurance or
    demonstrate financial responsibility in amounts to compensate
    for the maximum probable loss from claims by--
                (A) a third party for death, bodily injury, or
            property damage or loss resulting from an activity
            carried out under the license; and
                (B) the United States Government against a person
            for damage or loss to Government property resulting
            from an activity carried out under the license.
              * * * * * * *
        (3) For the total claims related to one launch or reentry,
    a licensee or transferee is not required to obtain insurance or
    demonstrate financial responsibility of more than--
                (A)(i) $500,000,000 under paragraph (1)(A) of this
            subsection; or
                (ii) $100,000,000 under paragraph (1)(B) of this
            subsection; or
                (B) the maximum liability insurance available on
            the world market at reasonable cost if the amount is
            less than the applicable amount in clause (A)(i) or
            (ii) of this paragraph.
        (4) An insurance policy or demonstration of financial
    responsibility under this subsection shall protect the
    following, to the extent of their potential liability for
    involvement in launch services or reentry services, at no cost
    to the Government:
                (A) the Government.
                (B) executive agencies and personnel, contractors,
            and subcontractors of the Government.
                (C) contractors, subcontractors, and customers of
            the licensee or transferee.
                (D) contractors and subcontractors of the customer.
        (b) Reciprocal Waiver of Claims.--(1) A launch or reentry
    license issued or transferred under this chapter shall contain
    a provision requiring the licensee or transferee to make a
    reciprocal waiver of claims with its contractors,
    subcontractors, and customers, and contractors and
    subcontractors of the customers, involved in launch services or
    reentry services under which each party to the waiver agrees to
    be responsible for property damage or loss it sustains, or for
    personal injury to, death of, or property damage or loss
    sustained by its own employees resulting from an activity
    carried out under the applicable license.
        (2) The Secretary of Transportation shall make, for the
    Government, executive agencies of the Government involved in
    launch services or reentry services, and contractors and
    subcontractors involved in launch services or reentry services,
    a reciprocal waiver of claims with the licensee or transferee,
    contractors, subcontractors, and customers of the licensee or
    transferee, and contractors and subcontractors of the
    customers, involved in launch services or reentry services
    under which each party to the waiver agrees to be responsible
    for property damage or loss it sustains, or for personal injury
    to, death of, or property damage or loss sustained by its own
    employees resulting from an activity carried out under the
    applicable license. The waiver applies only to the extent that
    claims are more than the amount of insurance or demonstration
    of financial responsibility required under subsection (a)(1)(B)
    of this section. After consulting with the Administrator and
    the Secretary of the Air Force, the Secretary of Transportation
    may waive, for the Government and a department, agency, and
    instrumentality of the Government, the right to recover damages
    for damage or loss to Government property to the extent
    insurance is not available because of a policy exclusion the
    Secretary of Transportation decides is usual for the type of
    insurance involved.
              * * * * * * *
        (d) Annual Report.--(1) Not later than November 15 of each
    year, the Secretary of Transportation shall submit to the
    Committee on Commerce, Science, and Transportation of the
    Senate and the Committee on Science[, Space, and Technology] of
    the House of Representatives a report on current determinations
    made under subsection (c) of this section related to all issued
    licenses and the reasons for the determinations.
              * * * * * * *
        (e) Launches or Reentries Involving Government Facilities
    and Personnel.--The Secretary of Transportation shall establish
    requirements consistent with this chapter for proof of
    financial responsibility and other assurances necessary to
    protect the Government and its executive agencies and personnel
    from liability, death, bodily injury, or property damage or
    loss as a result of a launch or operation of a launch site or
    reentry site or a reentry involving a facility or personnel of
    the Government. The Secretary may not relieve the Government of
    liability under this subsection for death, bodily injury, or
    property damage or loss resulting from the willful misconduct
    of the Government or its agents.
        (f) Collection and Crediting Payments.--The head of a
    department, agency, or instrumentality of the Government shall
    collect a payment owed for damage or loss to Government
    property under its jurisdiction or control resulting from an
    activity carried out under a launch or reentry license issued
    or transferred under this chapter. The payment shall be
    credited to the current applicable appropriation, fund, or
    account of the department, agency, or instrumentality.

    Sec. 70113. Paying claims exceeding liability insurance and financial
                        responsibility requirements

        (a) General Requirements.--(1) To the extent provided in
    advance in an appropriation law or to the extent additional
    legislative authority is enacted providing for paying claims in
    a compensation plan submitted under subsection (d) of this
    section, the Secretary of Transportation shall provide for the
    payment by the United States Government of a successful claim
    (including reasonable litigation or settlement expenses) of a
    third party against a licensee or transferee under this
    chapter, a contractor, subcontractor, or customer of the
    licensee or transferee, or a contractor or subcontractor of a
    customer, resulting from an activity carried out under the
    license issued or transferred under this chapter for death,
    bodily injury, or property damage or loss resulting from an
    activity carried out under the license. However, claims may be
    paid under this section only to the extent the total amount of
    successful claims related to one launch or reentry--
                (A) is more than the amount of insurance or
            demonstration of financial responsibility required
            under section 70112(a)(1)(A) of this title; and
                (B) is not more than $1,500,000,000 (plus
            additional amounts necessary to reflect inflation
            occurring after January 1, 1989) above that insurance
            or financial responsibility amount.
              * * * * * * *
        (d) Surveys, Reports, and Compensation Plans.--(1) If as a
    result of an activity carried out under a license issued or
    transferred under this chapter the total of claims related to
    one launch or reentry is likely to be more than the amount of
    required insurance or demonstration of financial
    responsibility, the Secretary shall--
                (A) survey the causes and extent of damage; and
                (B) submit expeditiously to Congress a report on
            the results of the survey.
        (2) Not later than 90 days after a court determination
    indicates that the liability for the total of claims related to
    one launch or reentry may be more than the required amount of
    insurance or demonstration of financial responsibility, the
    President, on the recommendation of the Secretary, shall submit
    to Congress a compensation plan that--
                (A) outlines the total dollar value of the claims;
                (B) recommends sources of amounts to pay for the
            claims;
                (C) includes legislative language required to carry
            out the plan if additional legislative authority is
            required; and
                (D) for a single event or incident, may not be for
            more than $1,500,000,000.
              * * * * * * *

    Sec. 70115. Enforcement and penalty

        (a) * * *
        (b) General Authority.--(1) In carrying out this chapter,
    the Secretary of Transportation may--
                (A) conduct investigations and inquiries;
                (B) administer oaths;
                (C) take affidavits; and
                (D) under lawful process--
                        (i) enter at a reasonable time a launch
                    site, reentry site, production facility,
                    assembly site of a launch vehicle or reentry
                    vehicle, or site at which a payload is
                    integrated with a launch vehicle or reentry
                    vehicle to inspect an object to which this
                    chapter applies or a record or report the
                    Secretary requires be made or kept under this
                    chapter; and
                        (ii) seize the object, record, or report
                    when there is probable cause to believe the
                    object, record, or report was used, is being
                    used, or likely will be used in violation of
                    this chapter.
              * * * * * * *

    Sec. 70117. Relationship to other executive agencies, laws, and
                        international obligations

        (a) Executive Agencies.--Except as provided in this
    chapter, a person is not required to obtain from an executive
    agency a license, approval, waiver, or exemption to launch a
    launch vehicle or operate a launch site or reentry site, or to
    reenter a reentry vehicle.
              * * * * * * *
        (d) Consultation.--The Secretary of Transportation is
    encouraged to consult with a State to simplify and expedite the
    approval of a space launch or reentry activity.
              * * * * * * *
        [(f) Launch Not an Export.--A launch vehicle or payload
    that is launched is not, because of the launch, an export for
    purposes of a law controlling exports.]
        (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.
        (g) Nonapplication.--This chapter does not apply to--
                (1) a launch, [operation of a launch vehicle or
            launch site,] reentry, operation of a launch vehicle or
            reentry vehicle, operation of a launch site or reentry
            site, or other space activity the Government carries
            out for the Government; or
                (2) planning or policies related to the launch,
            reentry, operation, or activity.
              * * * * * * *

    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.
                                  ----------

       SECTION 504 OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
                      AUTHORIZATION ACT, FISCAL YEAR 1993

    SEC. 504. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

        (a) Commercial Space Voucher Demonstration Program;
    Effective Period.--The Administrator shall establish a
    demonstration program to award vouchers for the payment of
    commercial launch services and payload integration services for
    the purpose of launching payloads funded by [the Office of
    Commercial Programs within] the National Aeronautics and Space
    Administration to become effective October 1, 1993. [Such
    program shall not be effective after September 30, 1995.]
              * * * * * * *
        [(c) Assumption of Certain Responsibilities.--In carrying
    out the demonstration program established under subsection (a),
    the Administrator, in awarding vouchers, is limited to the
    launch of payloads funded by the Office of Commercial Programs
    within the National Aeronautics and Space Administration.]
        [(d)] (c) Assistance.--The Administrator may provide
    voucher award recipients with such assistance, including
    contract formulation and technical support during the proposal
    evaluation, as may be necessary, to ensure the purchase of cost
    effective and reasonably reliable commercial launch services
    and payload integration services.
        [(e)] (d) Report.--The Administrator shall conduct an
    ongoing review of the program established under this section,
    and shall, not later than January 31, 1995, report to Congress
    the results of such a review, together with recommendations for
    further action relating to the program.
                                  ----------

                     LAND REMOTE SENSING POLICY ACT OF 1992

              * * * * * * *

    SEC. 2. FINDINGS.

        The Congress finds and declares the following:
                (1) * * *
              * * * * * * *
                [(5) Given the importance of the Landsat program to
            the United States, urgent actions, including expedited
            procurement procedures, are required to ensure data
            continuity.
                [(6) Full commercialization of the Landsat program
            cannot be achieved within the foreseeable future, and
            thus should not serve as the near-term goal of national
            policy on land remote sensing; however,
            commercialization of land remote sensing should remain
            a long-term goal of United States policy.]
                (5) Commercialization of land remote sensing is a
            near-term goal, and should remain a long-term goal, of
            United States policy.
                [(7)] (6) Despite the success and importance of the
            Landsat system, funding and organizational
            uncertainties over the past several years have placed
            its future in doubt and have jeopardized United States
            leadership in land remote sensing.
                [(8)] (7) Recognizing the importance of the Landsat
            program in helping to meet national and commercial
            objectives, the President approved, on February 11,
            1992, a National Space Policy Directive which was
            developed by the National Space Council and commits the
            United States to ensuring the continuity of Landsat
            coverage into the 21st century.
                [(9)] (8) Because Landsat data are particularly
            important for national security purposes and global
            environmental change research, management
            responsibilities for the program should be transferred
            from the Department of Commerce to an integrated
            program management involving the Department of Defense
            and the National Aeronautics and Space Administration.
                [(10)] (9) Regardless of management
            responsibilities for the Landsat program, the Nation's
            broad civilian, national security, commercial, and
            foreign policy interests in remote sensing will best be
            served by ensuring that Landsat remains an unclassified
            program that operates according to the principles of
            open skies and nondiscriminatory access.
                [(11)] (10) Technological advances aimed at
            reducing the size and weight of satellite systems hold
            the potential for dramatic reductions in the cost, and
            substantial improvements in the capabilities, of future
            land remote sensing systems, but such technological
            advances have not been demonstrated for land remote
            sensing and therefore cannot be relied upon as the sole
            means of achieving data continuity for the Landsat
            program.
                [(12)] (11) A technology demonstration program
            involving advanced remote sensing technologies could
            serve a vital role in [determining the design of a
            follow-on spacecraft to Landsat 7, while also helping
            to determine whether such a spacecraft should be funded
            by the United States Government, by the private sector,
            or by an international consortium] ensuring the
            continuity of Landsat quality data.
                [(13)] (12) To maximize the value of the Landsat
            program to the American public, unenhanced Landsat 4
            through 6 data should be made available, at a minimum,
            to United States Government agencies, to global
            environmental change researchers, and to other
            researchers who are financially supported by the United
            States Government, at the cost of fulfilling user
            requests, and unenhanced Landsat 7 data should be made
            available to all users at the cost of fulfilling user
            requests.
                [(14)] (13) To stimulate development of the
            commercial market for unenhanced data and value-added
            services, the United States Government should adopt a
            data policy for Landsat 7 which allows competition
            within the private sector for distribution of
            unenhanced data and value-added services.
                [(15)] (14) Development of the remote sensing
            market and the provision of commercial value-added
            services based on remote sensing data should remain
            exclusively the function of the private sector.
                [(16)] (15) It is in the best interest of the
            United States to maintain a permanent, comprehensive
            Government archive of global Landsat and other land
            remote sensing data for long-term monitoring and study
            of the changing global environment.
              * * * * * * *

                                TITLE I--LANDSAT

    SEC. 101. LANDSAT PROGRAM MANAGEMENT.

        (a) * * *
        (c) Responsibilities.--The Landsat Program Management shall
    be responsible for--
                (1) * * *
              * * * * * * *
                (6) oversight of Landsat contracts entered into
            under sections 102 and 103; and
                [(7) coordination of a technology demonstration
            program, pursuant to section 303; and]
                [(8)] (7) ensuring that copies of data acquired by
            the Landsat system are provided to the National
            Satellite Land Remote Sensing Data Archive.
              * * * * * * *
        (e) Landsat Advisory Process.--
                (1) Establishment.--The Landsat Program Management
            shall seek impartial advice and comments regarding the
            status, effectiveness, and operation of the Landsat
            system, using existing advisory committees and other
            appropriate mechanisms. Such advice shall be sought
            from individuals who represent--
                        (A) a broad range of perspectives on basic
                    and applied science and operational needs with
                    respect to land remote sensing data; and
                        (B) the full spectrum of users of Landsat
                    data, including representatives from United
                    States Government agencies, State and local
                    government agencies, academic institutions,
                    nonprofit organizations, value-added companies,
                    the agricultural, mineral extraction, and other
                    user industries, and the public[, and].
                        [(C) a broad diversity of age groups,
                    sexes, and races.]
              * * * * * * *

          TITLE II--LICENSING OF PRIVATE REMOTE SENSING SPACE SYSTEMS

    SEC. 201. GENERAL LICENSING AUTHORITY.

        (a) * * *
        (b) Compliance With the Law, Regulations, International
    Obligations, and National Security.--[No license shall be
    granted by the Secretary unless the Secretary determines in
    writing that the applicant will comply](1) The Secretary shall
    grant a license if the Secretary determines that the activities
    proposed in the application are consistent with the
    requirements of this Act, any regulations issued pursuant to
    this Act, and any applicable international obligations and
    national security concerns of the United States.
        (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.
        (c) Deadline for Action on Application.--The Secretary
    shall review any application and make a determination thereon
    within 120 days of the receipt of such application. [If final
    action has not occurred within such time, the Secretary shall
    inform the applicant of any pending issues and of actions
    required to resolve them.] 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.
              * * * * * * *
        (e) Requirement To Provide Unenhanced Data.--(1) * * *
        (2) The Secretary shall make a designation under paragraph
    (1) after determining that--
                (A) * * *
                (B) it is in the interest of the United States to
            require such data to be provided by the licensee
            consistent with section 202(b)(3), after considering
            the impact on the licensee [and the importance of
            promoting widespread access to remote sensing data from
            United States and foreign systems].
              * * * * * * *

    SEC. 202. CONDITIONS FOR OPERATION.

        (a) * * *
        (b) Licensing Requirements.--Any license issued pursuant to
    this title shall specify that the licensee shall comply with
    all of the requirements of this Act and shall--
                (1) operate the system in such manner as to
            preserve the national security of the United States and
            to observe the international obligations of the United
            States in accordance with section [506] 507;
                (2) make available to the government of any country
            (including the United States) unenhanced data collected
            by the system concerning the territory under the
            jurisdiction of such government [as soon as such data
            are available and on reasonable terms and conditions]
            on reasonable terms and conditions, including the
            provision of such data in a timely manner;
              * * * * * * *
                (6) notify the Secretary of [any agreement] any
            significant or substantial agreement relating to land
            remote sensing the licensee intends to enter with a
            foreign nation, entity, or consortium involving foreign
            nations or entities.
    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.
              * * * * * * *

    SEC. 203. ADMINISTRATIVE AUTHORITY OF THE SECRETARY.

        (a) Functions.--In order to carry out the responsibilities
    specified in this title, the Secretary may--
                (1) grant, condition, or transfer licenses under
            this Act;
                (2) seek an order of injunction or similar judicial
            determination from a United States District Court with
            personal jurisdiction over the licensee to terminate,
            modify, or suspend licenses [under this title and]
            under this title and/or to terminate licensed
            operations on an immediate basis, if the Secretary
            determines that the licensee has substantially failed
            to comply with any provisions of this Act, with any
            terms, conditions, or restrictions of such license, or
            with any international obligations or national security
            concerns of the United States.
              * * * * * * *

    SEC. 204. REGULATORY AUTHORITY OF THE SECRETARY.

        The Secretary [may] shall issue regulations to carry out
    this title. Such regulations shall be promulgated only after
    public notice and comment in accordance with the provisions of
    section 553 of title 5, United States Code.

    SEC. 205. AGENCY ACTIVITIES.

        (a) * * *
              * * * * * * *
        (c) Agreements.--To the extent provided in advance by
    appropriation Acts, any United States Government agency may
    enter into agreements for such utilization if such agreements
    are consistent with such agency's mission and statutory
    authority, and [if such remote sensing space system is licensed
    by the Secretary before commencing operation] if such private
    remote sensing space system will be licensed by the Secretary
    before commencing its commercial operation.
              * * * * * * *

    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.

              TITLE III--RESEARCH, DEVELOPMENT, AND DEMONSTRATION

    SEC. 301.  CONTINUED FEDERAL RESEARCH AND DEVELOPMENT.

        (a) Roles of NASA and Department of Defense.--(1) The
    Administrator and the Secretary of Defense are directed to
    continue and to enhance programs of remote sensing research and
    development.
        (2) The Administrator is authorized and encouraged to--
                (A) conduct experimental space remote sensing
            programs (including applications demonstration programs
            and basic research at universities);
                (B) develop remote sensing technologies and
            techniques, including those needed for monitoring the
            Earth and its environment, that are not being
            commercially developed; and
              * * * * * * *
        (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.

    SEC. 302. AVAILABILITY OF FEDERALLY GATHERED UNENHANCED DATA.

        [(a) General Rule.--]All unenhanced land remote sensing
    data gathered and owned by the United States Government[,
    including unenhanced data gathered under the technology
    demonstration program carried out pursuant to section 303,]
    that is not otherwise available from the commercial sector
    shall be made available to users in a timely fashion.
        [(b) Protection for Commercial Data Distributor.--The
    President shall seek to ensure that unenhanced data gathered
    under the technology demonstration program carried out pursuant
    to section 303 shall, to the extent practicable, be made
    available on terms that would not adversely effect the
    commercial market for unenhanced data gathered by the Landsat 6
    spacecraft.

    [SEC. 303. TECHNOLOGY DEMONSTRATION PROGRAM.

        [(a) Establishment.--As a fundamental component of a
    national land remote sensing strategy, the President shall
    establish, through appropriate United States Government
    agencies, a technology demonstration program. The goals of such
    programs shall be to--
                [(1) seek to launch advanced land remote sensing
            system components within 5 years after the date of the
            enactment of this Act.
                [(2) demonstrate within such 5-year period advanced
            sensor capabilities suitable for use in the anticipated
            land remote sensing program; and
                [(3) demonstrate within such 5-year period an
            advanced land remote sensing system design that could
            be less expensive to procure and operate than the
            Landsat system projected to be in operation through the
            year 2000, and that therefore holds greater potential
            for private sector investment and control.
        [(b) Execution of Program.--In executing the technology
    demonstration program, the President shall seek to apply
    technologies associated with United States National Technical
    Means of intelligence gathering, to the extent that such
    technologies are appropriate for the technology demonstration
    and can be declassified for such purposes without causing
    adverse harm to United States national security interests.
        [(c) Broad Application.--To the greatest extent
    practicable, the technology demonstration program established
    under subsection (a) shall be designed to be responsive to the
    broad civilian, national security, commercial, and foreign
    policy needs of the United States.
        [(d) Private Sector Funding.--The technology demonstration
    program under this section may be carried out in part with
    private sector funding.
        [(e) Landsat Program Management Coordination.--The Landsat
    Program Management shall have a coordinating role in the
    technology demonstration program carried out under this
    section.
        [(f) Report to Congress.--The President shall assess the
    progress of the technology demonstration program under this
    section and, within 2 years after the date of enactment of this
    Act, submit a report to the Congress on such progress.]
              * * * * * * *

      TITLE IV--ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM

    SEC. 401. ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM.

        (a) * * *
        (b) Goals.--In carrying out subsection (a), the Landsat
    Program Management shall consider the ability of each of the
    options to--
                (1) * * *
              * * * * * * *
                (3) incorporate system enhancements[, including any
            such enhancements developed under the technology
            demonstration program under section 303,] which may
            potentially yield a system that is less expensive to
            build and operate, and more responsive to data users,
            than is the Landsat system projected to be in operation
            through the year 2000.
              * * * * * * *

                          TITLE V--GENERAL PROVISIONS

    SEC. 501. NONDISCRIMINATORY DATA AVAILABILITY.

        (a) General Rule.--Except as provided in subsection (b) of
    this section, any unenhanced data generated by the Landsat
    system or any other land remote sensing system funded and owned
    by the United States Government shall be made available to all
    users without preference, bias, or any other special
    arrangement (except on the basis of national security concerns
    pursuant to section [506] 507) regarding delivery, format,
    pricing, or technical considerations which would favor one
    customer or class of customers over another.
              * * * * * * *

    SEC. 502. ARCHIVING OF DATA.

        (a) * * *
              * * * * * * *
        (c) Determination of Content of Basic Data Set.--In
    determining the initial content of, or in upgrading, the basic
    data set, the Secretary of Interior shall--
                (1) * * *
              * * * * * * *
                (7) ensure that the content of the archive is
            developed in accordance with section [506] 507.
              * * * * * * *

    SEC. 507. CONSULTATION.

        [(a) Consultation With Secretary of Defense.--The Secretary
    and the Landsat Program Management shall consult with the
    Secretary of Defense on all matters under this Act 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 and the Landsat
    Program Management promptly of such conditions.
        [(b) Consultation With Secretary of State.--(1) The
    Secretary and the Landsat Program Management shall consult with
    the Secretary of State on all matters under this Act affecting
    international obligations. 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 promptly the
    Secretary and the Landsat Program Management of such
    conditions.
        [(2) Appropriate United States Government agencies are
    authorized and encouraged to provide remote sensing data,
    technology, and training to developing nations as a component
    of programs of international aid.]
        (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 180 days after the date of the enactment of the Commercial
    Space Act of 1997, the Secretary of Defense shall publish in
    Commerce Business Daily, for the purpose of soliciting
    comments, notice of all national security concerns that pertain
    to the licensing of private remote sensing space systems. Not
    later than 60 days after receiving a request from the
    Secretary, the Secretary of Defense shall notify the Secretary
    and the licensee of, and describe in 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 concurrently recommend to the
    Secretary any conditions for a license issued under title II,
    consistent with this Act, that the Secretary of Defense
    considers necessary to secure 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 activities proposed in the license application to be
    consistent with the protection of the national security of the
    United States.
        (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 of the United
    States and for notifying the Secretary promptly of such
    conditions. Not later than 180 days after the date of the
    enactment of the Commercial Space Act of 1997, the Secretary of
    State shall publish in Commerce Business Daily, for the purpose
    of soliciting comments, notice of all international obligations
    of the United States that pertain to the licensing of private
    remote sensing space systems. Not later than 60 days after
    receiving a request from the Secretary, the Secretary of State
    shall notify the Secretary and the licensee of, and describe in
    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 concurrently
    recommend to the Secretary any conditions for a license issued
    under title II, consistent with this Act, that the Secretary of
    State considers necessary to secure 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 activities proposed in the license
    application to be consistent with 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.
              * * * * * * *
        (d) Reimbursements.--If, as a result of technical
    modifications imposed on a licensee under title II on the basis
    of national security concerns, the Secretary, in consultation
    with the Secretary of Defense or with other Federal agencies,
    determines that additional costs will be incurred by the
    licensee, or that past development costs (including the cost of
    capital) will not be recovered by the licensee, the [Secretary
    may require] Secretary shall, where appropriate, require the
    agency or agencies requesting such technical modifications to
    reimburse the licensee for such additional or development
    costs, but not for anticipated profits. Reimbursements may
    cover costs associated with required changes in system
    performance, but not costs ordinarily associated with doing
    business abroad.
              * * * * * * *
                                  ----------

                      LAUNCH SERVICES PURCHASE ACT OF 1990

                       TITLE II--LAUNCH SERVICES PURCHASE

    SEC. 201. SHORT TITLE.

        This title may be cited as the ``Launch Services Purchase
    Act of 1990''.

    [SEC. 202. FINDINGS.

        [The Congress finds that--
                [(1) the United States commercial launch industry
            is technically capable of providing reliable and cost
            efficient access to space and is an essential component
            of national efforts to assure access to space for
            Government and commercial users;
                [(2) the Federal Government should encourage,
            facilitate, and promote the United States commercial
            launch industry, including the development and
            enhancement of commercial launch facilities, in order
            to ensure United States economic preeminence in space;
                [(3) the interests of the United States will be
            served if the commercial launch industry is competitive
            in the international marketplace;
                [(4) commercial vehicles are effective means to
            challenge foreign competition;
                [(5) the use by the Federal Government of
            performance specifically in lieu of detailed
            specifications relating to vehicle design,
            construction, and operation will facilitate the
            efficient operation of the United States commercial
            launch industry;
                [(6) the procurement of commercial launch services
            in a commercially reasonable manner permits a reduced
            level of Federal Government regulation and oversight
            and economies of scale which may result in significant
            cost savings to the commercial launch industry and to
            the United States.
                [(7) it is the general policy of the Federal
            Government to purchase needed goods and services,
            including launch services, from the private sector to
            the fullest extent feasible; and
                [(8) predictable access to National Aeronautics and
            Space Administration launch markets would encourage
            continuing United States private sector investment in
            space and related activities.]

    SEC. 203. DEFINITIONS.

        For the purposes of this title--
                [(1) the term ``commercial provider'' means any
            person providing launch services, but does not include
            the Federal Government;
                [(2) the term ``launch services'' means activities
            involved in the preparation of a launch vehicle and its
            payload for space transport and the conduct of
            transporting a payload;]
                [(3)] (1) the term ``launch vehicle'' means any
            vehicle constructed for the purpose of operating in, or
            placing a payload in, outer space; and
                [(4)] (2) the term ``payload'' means an object
            which a person undertakes to place in outer space by
            means of a launch vehicle, and includes subcomponents
            of the launch vehicle specifically designed or adapted
            for that object.

    [SEC. 204. REQUIREMENT TO PROCURE COMMERCIAL LAUNCH SERVICES.

        [(a) In General.--Except as otherwise provided in this
    section, the National Aeronautics and Space Administration
    shall purchase launch services for its primary payloads from
    commercial providers whenever such services are required in the
    course of its activities.
        [(b) Exceptions.--The National Aeronautics and Space
    Administration shall not be required to purchase launch
    services as provided in subsection (a) if, on a case by case
    basis the Administrator of the National Aeronautics and Space
    Administration determines that--
                [(1) the payload requires the unique capabilities
            of the space shuttle;
                [(2) cost effective commercial launch services to
            meet specific mission requirements are not reasonably
            available and would not be available when required;
                [(3) the use of commercial launch services poses an
            unacceptable risk of loss of a unique scientific
            opportunity; or
                [(4) the payload serves national security or
            foreign policy purposes.
    Upon any such determination, the Administrator shall, within 30
    days, notify in writing the Committee on Science, Space, and
    Technology of the House of Representatives and the Committee on
    Commerce, Science, and Transportation of the Senate of the
    determination and its rationale.
        [(c) National Aeronautics and Space Administration Launch
    Vehicles.--Launch vehicles shall be acquired or owned by the
    National Aeronautics and Space Administration only--
                [(1) as required under circumstances described in
            subsection (b); or
                [(2) by the National Aeronautics and Space
            Administration for conducting research and development
            on, and testing of, launch technology.
        [(d) Phase-In Period.--Subsections (a) and (c) shall not
    apply to launch services and launch vehicles purchased by the
    National Aeronautics and Space Administration before the date
    of enactment of this Act.
        [(e) Historical Purposes.--This title shall not be
    interpreted to prohibit the National Aeronautics and Space
    Administration from acquiring, owning, or maintaining launch
    vehicles solely for historical display purposes.

    [SEC. 205. PURCHASE OF LAUNCH SERVICES.

        [(a) Full and Open Competition.--(1) Contracts to provide
    launch services to the National Aeronautics and Space
    Administration under section 204 shall be awarded on the basis
    of full, fair, and open competition, consistent with section
    2304 of title 10, United States Code, and section 311 of the
    National Aeronautics and Space Act of 1958.
        [(2) The National Aeronautics and Space Administration
    shall limit its requirements for submission of cost or pricing
    data in support of a bid or proposal to that data which is
    reasonably required to protect the interests of the United
    States.
        [(b) Specification Systems.--Reasonable performance
    specifications, not detailed Government design or construction
    specifications, shall be used to the maximum extent feasible to
    define requirements for a commercial provider bidding to
    provide launch services. This subsection shall not preclude the
    National Aeronautics and Space Administration from requiring
    compliance with applicable safety standards.]

    SEC. 206. OTHER ACTIVITIES OF THE NATIONAL AERONAUTICS AND SPACE
                        ADMINISTRATION.

        [(a) Commercial Payloads on the Space Shuttle.--]
    Commercial payloads may not be accepted for launch as primary
    payloads on the space shuttle unless the Administrator of the
    National Aeronautics and Space Administration determines that--
                (1) the payload requires the unique capabilities of
            the space shuttle; or
                (2) launching of the payload on the space shuttle
            is important for either national security or foreign
            policy purposes.
        [(b) Report.--By March 15, 1991, the Administrator, in
    consultation with the Office of Federal Procurement Policy,
    shall submit to the Committee on Science, Space, and Technology
    of the House of Representatives and the Committee on Commerce,
    Science, and Transportation of the Senate a report outlining
    the minimal requirements for documentation and other
    administrative data needed to procure launch services in a
    commercially reasonable manner, including--
                [(1) the need for data to integrate a payload with
            a launch vehicle;
                [(2) the need for data to carry out mission-
            specific modifications to the launch vehicle;
                [(3) the need for notification to the National
            Aeronautics and Space Administration of changes,
            delays, or difficulties in the construction or
            preparation of a launch vehicle that may affect the
            delivery of its payload to its destination at the time
            and under the conditions provided for under the
            contract between the United States and its contractors;
                [(4) the need for data to protect public health and
            safety; and
                [(5) the need for cost or pricing data for the
            fulfillment of a contract.]

                        XVII. Committee Recommendations

        On June 18, 1997, a quorum being present, the Committee
    favorably reported the Commercial Space Act, as amended, by a
    voice vote, and recommends its enactment.
                   XVIII. Proceedings of Subcommittee Markup

       SUBCOMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997

                                  ----------

                            THURSDAY, JUNE 12, 1997

                 U.S. House of Representatives,
                                  Committee on Science,
                         Subcommittee on Space and Aeronautics,
                                                        Washington, DC.
        The Subcommittee convened at 10:08 a.m. in room 2318 of the
    Rayburn House Office Building, Hon. Dana Rohrabacher, Chairman
    of the Subcommittee, presiding.
        Members present: Representatives Rohrabacher, Cramer,
    Bartlett, Davis, Sensenbrenner, Hastings, Weldon (FL), Luther,
    Capps, Cook, Calvert, Salmon, Brady, Nethercutt, Jr., Hall,
    Luther, Lofgren, Lampson and Gordon.
        Staff present: Bill Buckey, Eric Sterner and Rich Stombres.
         Chairman Rohrabacher. Good morning. Pursuant to notice,
    the Subcommittee on Space and Aeronautics is meeting today to
    consider H.R. 1702, the Commercial Space Act of 1997.
        Because the House is in session, and we may have to vote, I
    ask for unanimous consent for the authority to recess at any
    time. Thank you very much.
        I am pleased today to bring before the Subcommittee for
    legislative markup bipartisan legislation to promote U.S.
    leadership in the commercial development of the space frontier.
    H.R. 1702 is a measured and considered bill based on
    legislation passed by the House last year under suspension. I
    congratulate Chairman Sensenbrenner and Ranking Member Brown
    for bringing it forward so quickly in this session.
        To summarize the Space Commercialization Act of 1997, it
    does three things:
        First, it promotes new commercial space opportunities
    relating to the International Space Station, reasonable space
    vehicles, space-based navigation and space science data
    collection.
        Second, it streamlines the regulation of the emerging
    commercial remote sensing industry which, as we learned in our
    hearings, is a potentially multi-billion dollar export industry
    for America.
        Finally, it requires the Federal Government to purchase
    commercial space transportation services wherever possible
    instead of building and operating launch vehicles itself.
        Today we begin to move this bill forward toward what I hope
    will be a Presidential signature by the end of this calendar
    year. That is an aggressive schedule, but I believe if we work
    closely with our Senate colleagues and the Administration we
    can achieve it.
        Now I would recognize Mr. Cramer.
        Chairman Sensenbrenner, would you like to say some words
    first?
        Chairman Sensenbrenner. Mr. Chairman, you have done a good
    job and I'm watching.
        Chairman Rohrabacher. Thank you very much, Mr. Chairman.
        Mr. Cramer.
        Mr. Cramer. Thank you, Mr. Chairman. I'm glad we can move
    on with this markup. I thought after yesterday we might not get
    this opportunity. This is a good bill, H.R. 1702, the
    Commercial Space Act of 1997. I've appreciated the bipartisan
    approach to this bill in the hearings that we've been able to
    have. I thought they were very, very good hearings.
        I've co-sponsored H.R. 1702 which continues Congress' long-
    standing tradition of promoting the development of a healthy
    and robust commercial space sector. The bipartisan tradition
    has been reflected in the passage of a series of important
    legislative initiatives in the past, including the Land Remote
    Sensing Commercialization Act of 1984, the Land Remote Sensing
    Policy Act of 1992, the Commercial Space Launch Act, the
    Commercial Space Launch Act Amendments of 1988 and the Launch
    Services Purchase Act of 1990.
        I think those Acts have played an important role in
    fostering the growth of the commercial remote sensing and
    commercial launch service industries and have certainly
    benefited the Nation's economy as a whole.
        I think we all agree that space is not just a frontier for
    research and exploration, it is also a frontier for commercial
    activity and we need only look at the explosive growth of the
    satellite communications industry of the past 3 decades to
    realize the truth of that statement. I believe that we may be
    on the verge of a similar explosion of growth in the commercial
    remote sensing industry as well as commercial applications of
    the GPS System.
        H.R. 1702 is not a perfect bill. Indeed, we will offer
    several amendments, and I think my colleague, Mr. Hastings from
    Florida will offer an amendment that will improve the bill.
    Those amendments are intended to ensure that the Nation's
    legitimate national security concerns and international
    obligations are protected as we work to promote the growth of
    commercial remote sensing. So I look forward to this markup,
    Mr. Chairman.
        [The prepared statement of Mr. Cramer follows:]

                               OPENING STATEMENT
                                       by
                       HON. ROBERT E. ``BUD'' CRAMER, JR.
                                 June 11, 1997
        Good afternoon. As the Chairman has indicated, we are here this
    afternoon to mark up H.R. 1702, the Commercial Space Act of 1997. H.R.
    1702, which I have cosponsored, continues Congress's long-standing
    tradition of promoting the development of a healthy and robust
    commercial space sector.
        This bipartisan tradition has been reflected in the passage of a
    series of important legislative initiatives, including the

          --``Land Remote Sensing Commercialization Act of 1984,''
          --``Land Remote Sensing Policy Act of 1992,''
          --``Commercial Space Launch Act,''
          --``Commercial Space Launch Act Amendments of 1988,'' and the
          --``Launch Services Purchase Act of 1990.''

        These Acts have played an important role in fostering the growth of
    the commercial remote sensing and commercial launch services
    industries, and have certainly benefited the Nation's economy as a
    whole.
        I think that we can all agree that space is not just a frontier for
    research and exploration--it is also a frontier for commercial
    activity. We need only look at the explosive growth of the satellite
    communications industry over the past 3 decades to realize the truth of
    that statement. I believe that we may be on the verge of a similar
    explosion of growth in the commercial remote sensing industry, as well
    as in commercial applications of the Global Positioning System.
        It is clear from all of these examples that the Federal
    Government's investments in space technology and systems have provided
    the private sector with impressive capabilities that can be exploited
    to benefit both our citizens and the economy as a whole. It is now the
    private sector's challenge to make commercial space activities earn
    profits--government cannot and should not guarantee success.
        However, the Federal Government can provide a stable and supportive
    policy environment for commercial space activities. That has been the
    goal of previous commercial space legislation, and I believe that is
    also the goal of H.R. 1702.
        Of course, H.R. 1702 is not a perfect bill. Indeed, Chairman
    Rohrabacher and I will offer several amendments today that we believe
    will improve the bill. They are intended to ensure that the Nation's
    legitimate national security concerns and international obligations are
    protected as we work to promote the growth of commercial remote
    sensing. And we intend to work with the Administration as it considers
    the bill to ensure that H.R. 1702 is a constructive legislative step
    forward in our mutual effort to ensure a vital and healthy commercial
    space sector.
        Mr. Chairman, I look forward to a productive markup.
        Thank you.

        Chairman Rohrabacher. Thank you very much, Mr. Cramer.
        The Chair asks other members if they would be willing to
    submit their opening statements for the record so we can
    proceed directly with amendments.
        Without objection, all other statements will be included in
    the record at this point.
        I ask for unanimous consent that H.R. 1702 be considered as
    read and open to amendment at any point.
        Without objection, so ordered.
        [A section-by-section analysis of H.R. 1702 and the text of
    the bill follow:]

        Chairman Rohrabacher. I further ask the members to proceed
    with the amendments in the order that they are printed on the
    roster.
        The first amendment on the roster is the bipartisan
    Managers' Amendment offered by myself and Mr. Cramer. The Clerk
    will report the amendment.
        Mr. Stombres. Amendment offered by Mr. Rohrabacher and Mr.
    Cramer. Page 25, line 18----
        Chairman Rohrabacher. Without objection, the amendment will
    be considered as read.

        Chairman Rohrabacher. I recognize myself for 5 minutes.
    This amendment was drafted by the Subcommittee's bipartisan
    staff after discussion with the White House and various
    Executive Branch departments and agencies. It reflects some of
    their input and response to some of their requests for changes.
    We are making these changes to demonstrate our willingness to
    work in good faith with the Executive Branch in fashioning and
    passing this legislation.
        Now it will be their turn to demonstrate good faith and
    work with us to ensure that the additional changes that the
    State Department and the Defense Department are asking to make
    to the bill are both necessary and consistent with the Congress
    and the White House shared commitments to see commercial space
    emerge as a new source of jobs and economic growth for this
    country.
        As these discussions with the White House and the Executive
    Branch continue, we may need to amend the bill again during the
    Full Committee markup. In order to save time at this point I
    would like to place in the record a brief description of the
    amendment which has been distributed to the members of the
    Subcommittee.
        Without objection, that is put in the record.
        [The description referred to follows:]

     Mr. Rohrabacher's Statement for the Record on the Managers' Amendment
            at Space & Aeronautics Subcommittee Markup of H.R. 1702
        This amendment makes four minor changes in the bill. First, we're
    adding a new finding regarding remote sensing. This finding reaffirms
    that Congress expects the national security and the international
    obligations of the United States to be protected as the commercial
    remote sensing industry emerges.
        Second, we're making a technical change to the government's
    authority to seek to modify or terminate a commercial remote sensing
    license. Current law may be interpreted to require the Secretary of
    Commerce to seek to both modify a license and terminate operations at
    the same time, which makes no sense. The original bill changed this so
    that the Secretary can do one or the other, and does not have to do
    both. The amendment ensures that the Secretary can do both, if he
    chooses.
        Third, current law allows the Department of Commerce to impose
    administrative penalties of $10,000 per day on companies it believes
    are failing to comply with the terms of their license.
        The bill removes this authority to unilaterally impose such
    penalties by requiring the Department of Commerce to go to court and
    prove noncompliance before penalties can be imposed.
        Both the State and Commerce Departments objected to this change. We
    have agreed to amend the bill and preserve the Commerce Department's
    ability to impose administrative fees.
        Finally, on page 32, we're adding an exception to the bill's
    prohibition on government duplication of private sector activities.
    Under the bill, the government may only duplicate private sector
    activities if doing so would result in significant cost savings. Under
    the amendment, the government will also be able to duplicate private
    sector activity if it is necessary for reasons of national security or
    international obligations.

        Chairman Rohrabacher. I now recognize Mr. Cramer to speak
    on the amendment.
        Mr. Cramer. As I said, I would like to join the Chairman in
    speaking in support of our proposed amendments. These are a
    relatively modest set of amendments. They clarify, as I said,
    that H.R. 1702 is intended to promote a healthy and vigorous
    remote sensing industry while at the same time making sure that
    national security concerns and international obligations are
    protected.
        As Chairman Rohrabacher has indicated, we are continuing to
    discuss a number of the provisions of H.R. 1702 with the
    Administration. The discussions have been constructive and I
    believe that they will ultimately result in a bill that will be
    supported by both the Administration and the Congress. These
    amendments are a first step and I urge my colleagues to support
    them.
        Chairman Rohrabacher. Is there any further discussion?
        Mr. Sensenbrenner?
        Chairman Sensenbrenner. No.
        Chairman Rohrabacher. If there is no further discussion
    then this vote will occur on the amendment.
        All in favor of the Managers' Amendment say aye.
        [Chorus of ayes]
        Chairman Rohrabacher. All opposed?
        [No response]
        The ayes have it and the amendment is agreed to.
        Mr. Hastings. Mr. Chairman, I have an amendment at the
    desk.
        Chairman Rohrabacher. Judge Hastings, your Honor, you have
    an amendment at the desk. Are you ready to proceed with your
    amendment?
        Mr. Hastings. I am, sir.
        Chairman Rohrabacher. You may proceed.
        The Clerk will report the amendment.
        Mr. Stombres. Amendment offered by Mr. Hastings.
        Mr. Hastings. I ask unanimous consent that the amendment be
    accepted as read, Mr. Chairman.
        Chairman Rohrabacher. Without objection the amendment will
    be considered as read and the gentleman is recognized for 5
    minutes to offer his amendment.
        [The prepared statement of Mr. Hastings and the text of the
    amendment follow:]

     Statement of Congressman Alcee L. Hastings in support of the Hastings
                             Amendment to H.R. 1702
                                 June 11, 1997
        Mr. Chairman,
        I offer this amendment in conjunction with my colleague, Mr. Wexler
    of Florida, to support NASA's 11 Commercial Space Centers. The Centers
    involve a collaboration among academia, industry and government.
    Managed by NASA's Office of Advanced Concepts and Technology, the
    Centers are co-located at and operated by a number of universities and
    research institutes across the country, including Alabama, Wisconsin,
    Texas and Florida. Each dollar from NASA distributed to the centers is
    leveraged by industry and academia, generating two to three times the
    initial investment.
        Until 1996, all the Commercial Space Centers were managed under one
    roof at NASA headquarters. But last year, six of the Centers were
    detached and now are managed by field centers (Stennis Space Center and
    Lewis Research Center). This includes the Space Communications
    Technology Center in Boca Raton, Florida. When NASA reorganized the six
    Centers, it did not continue to provide funding from its headquarter's
    budget. Consequently, the six Centers had to compete for resources with
    the field centers. And, with their budgets in decline, many of the
    Centers were getting the short end of the stick.
        The Centers should be funded directly from NASA headquarters, and
    not be farmed out to field offices, where they are subject to
    cannibalism. Let's fix this problem, Mr. Chairman. The amendment
    offered would do just that by allowing NASA headquarters to control the
    funding of the Centers.

        Mr. Hastings. I thank the Chair, and more specifically
    thank you and the Ranking Member and the Chairman of the Full
    Committee, Mr. Sensenbrenner for the opportunity to come
    forward with this amendment, and to compliment the Full
    Chairman and you, Mr. Chairman, for the bipartisan spirit that
    has been demonstrated throughout this Congressional session.
        I offer this amendment in conjunction with my colleague,
    Robert Wexler of Florida to support NASA's 11 commercial space
    centers. The centers involve a collaboration among academia,
    industry and government managed by NASA's Office of Advanced
    Concepts and Technology. The centers are co-located and
    operated by a number of universities and research institutes
    across the country including Alabama, which gets our Ranking
    Member's juices flowing, Wisconsin, Texas, and I think
    everybody that ever was on a committee is on this one from
    Texas, and Florida. Each dollar from NASA distributed to the
    centers is leveraged by industry and academia generating two to
    three times the initial investment.
        As we all know, Mr. Chairman, until 1996 all the commercial
    space centers were managed under one roof at NASA Headquarters,
    but last year six of the centers were detached and now are
    managed by field centers, Stennis Space Center and Lewis
    Research Center. This includes the Space Communications
    Technology Center in Boca Raton, Florida, which is situated in
    the district that I'm privileged to serve. When NASA recognized
    the six centers it did not continue to provide funding from its
    Headquarters budget. Consequently the six centers had to
    compete for resources with the field centers, and with their
    budgets in decline many of the centers were getting the short
    end of the stick.
        The centers, in my view, Mr. Chairman, should be funded
    directly from NASA Headquarters and not be farmed out to field
    offices where they are subject to cannibalism. Let's fix this
    problem. I believe this amendment moves us in that direction,
    and I ask my colleagues to support it and allow NASA
    Headquarters to control the funding of the centers.
        With that I yield back any time I may have, Mr. Chairman.
        Chairman Rohrabacher. Thank you very much, Mr. Hastings.
        Mr. Weldon.
        Mr. Weldon of Florida. Thank you, Mr. Chairman. I want to
    express my support for Mr. Hastings' amendment. I worked with
    Mr. Wexler on this problem with funding the commercial space
    center at Florida Atlantic University and it reflects an
    overall problem that NASA has with managing commercial space
    efforts.
        This amendment would simply require NASA to manage and fund
    commercial space efforts from Headquarters rather than leaving
    it up to individual field centers which have their own unique
    regional budget and political struggles. When a field center is
    responsible for a commercial space efforts hundreds of miles
    away there is just not the same incentive to ensure its
    success.
        I commend my colleague from Florida for this forward-
    thinking amendment and I ask the Committee to support it.
        Thank you, Mr. Chairman.
        Chairman Rohrabacher. Thank you.
        Mr. Cramer.
        Mr. Cramer. Mr. Chairman, I would like to speak in support
    of Mr. Hastings' amendment. I could say a lot of things about
    the centers for commercial development, all positive, but Mr.
    Hastings has raised some concerns about the way that program
    has been administered and has proposed what amounts to a very
    reasonable solution for those problems, and it's important that
    we do solve those problems.
        Thus, I will support the amendment and will work with Mr.
    Hastings, the Chairman and NASA to ensure that we maintain a
    healthy and efficient commercial program.
        Chairman Rohrabacher. Thank you very much.
        Does anyone else want to speak?
        [No response.]
        Seeing none, the Chairman accepts this amendment by the
    gentleman from Florida and thanks him for his strong support of
    NASA's commercial center program.
        Mr. Hastings. Thank you, Mr. Chairman.
        Chairman Rohrabacher. I think your amendment will really
    make a great contribution. This is the type of fine-tuning that
    we need to make sure the system is working and the taxpayers'
    dollars are being spent wisely.
        I believe that the amendment will preserve a consistent and
    fair process at NASA Headquarters for awarding and renewal of
    funding for commercial space centers based on peer review of
    merit and performance. It is not the Congress' job to pick
    centers to be funded or cut, but it is our job to ensure that
    the centers are judged on their merits using a fair and
    consistent set of standards. It appears for now that
    Headquarters needs to determine and apply those standards so
    that commercial space centers don't get lost in the process of
    decentralization.
        The vote now occurs on the amendment by Mr. Hastings.
        All in favor say aye.
        [Chorus of ayes]
        Chairman Rohrabacher. Opposed?
        [No response]
        The ayes have it and the amendment is agreed to.
        Are there any other amendments?
        [No response]
        There are none.
        If there are no further amendments the question is on H.R.
    1702 as amended.
        All those in favor will say aye.
        [Chorus of ayes]
        All opposed say nay.
        [No response]
        In the opinion of the Chair the ayes have it.
        The Chair recognizes the gentleman from Alabama for a
    motion.
        Mr. Cramer. Mr. Chairman, I move that the Subcommittee
    report the bill, H.R. 1702, the Commercial Space Act of 1997 as
    amended.
        Furthermore, I move to instruct the staff to prepare the
    Subcommittee report, to make technical and conforming
    amendments and that the Chairman take all necessary steps to
    bring the bill before the Full Committee for consideration.
        Chairman Rohrabacher. The Subcommittee has heard the
    motion.
        Those in favor will say aye.
        [Chorus of ayes]
        Chairman Rohrabacher. Those opposed will say no.
        [No response]
        The motion has been agreed to and the bill is reported to
    the Full Committee.
        The Chair would like to thank all members for their
    participation today. The Full Committee markup will be held
    next Wednesday on this legislation.
        Let me note before we break that this piece of legislation
    is something that exemplifies the kind of cooperation we can
    have, and this Chairman is open to any ideas that you have for
    legislation. We passed a 2-year budget authorization and that
    gives us time to do some oversight and gives us time to put
    together some legislation like Judge Hastings has done here
    that will help fine-tune the system and make it a bit better.
    So please feel free to contact the Ranking Member or myself and
    we'll try to accommodate you. If there is a disagreement we'll
    have an honest disagreement, but you'll get your hearing and
    your legislative ideas will be considered by the this
    Subcommittee.
        So thank you all very much.
        Without objection the Subcommittee is now adjourned.
        [The Subcommittee adjourned at 10:24 a.m., subject to the
    call of the Chair.]
                    IX. Proceedings of Full Committee Markup

      FULL COMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997

                                  ----------

                            WEDNESDAY, JUNE 18, 1997

                 U.S. House of Representatives,
                                  Committee on Science,
                                                        Washington, DC.
        The Committee convened at 1:12 p.m. in room 2318 of the
    Rayburn House Office Building, Hon. F. James Sensenbrenner,
    Jr., Chairman of the Committee, presiding.
        Members present: Chairman Sensenbrenner and Representatives
    Brown, Hall, Cramer, Rohrabacher, Weldon (FL), Luther, Capps,
    Bartlett, Calvert, Weldon (PA), Boehlert, Salmon, Brady,
    Nethercutt, Jr., Hooley, Tauscher, Lampson, Stabenow, Jackson-
    Lee, Doyle, Lofgren, Rivers, Johnson, McHale, Roemer, Gordon,
    Morella, Ehlers, Gutknecht, Gordon, Hooley, and Etheridge.
        Staff present: Bill Buckey, Eric Sterner and Patricia
    Schwartz.
         Chairman Sensenbrenner. The Committee will be in order.
    The Chair notes the presence of a working quorum. Pursuant to
    notice, the members of the Committee on Science will address
    the following issues: the Democratic Subcommittee assignments;
    and consideration of H.R. 1702, the Commercial Space Act of
    1997.
        Before we proceed on the commercial space bill, the Chair
    recognizes the gentleman from California, Mr. Brown, for a
    motion regarding Subcommittee assignments.
        Mr. Brown of California. Thank you very much, Mr. Chairman.
    As the members may know, Mr. Doggett has left the Committee on
    our side for greener pastures leaving two Subcommittee
    vacancies. I'm very pleased that Ellen Tauscher has been
    appointed to the Committee further swelling the ranks of the
    California members. Ellen is from the 10th District of
    California which includes the Livermore National Laboratory.
    She will be joining the Technology Subcommittee, and Mr.
    Hastings will be filling the vacancy on the Energy and
    Environment Subcommittee if my motion to appoint them to those
    two Committees is approved.
        Mr. Chairman, by direction of the Democratic Caucus of the
    Committee on Science, I move the appointment of Hon. Alcee
    Hastings to the Subcommittee on Energy and Environment, and the
    appointment of Hon. Ellen Tauscher to the Subcommittee on
    Technology.
        Chairman Sensenbrenner. Without objection, the previous
    question is ordered, and the motion of the gentleman from
    California is agreed to.
        Next on the agenda is consideration of H.R. 1702, the
    Commercial Space Act of 1997, which the Clerk will report by
    title.
        Ms. Schwartz. H.R. 1702 as reported by the House
    Subcommittee on Space. Short title, this Act may be cited as
    the Commercial Space Act of 1997.
        Chairman Sensenbrenner. Without objection, the first
    reading of the bill is dispensed with, and the Chair recognizes
    himself for 5 minutes for an opening statement.
        Normally when we talk about legislation at a markup the
    Chair summarizes the elements of the bill and expresses his
    fervent wish that the President will sign it at some future
    date. While I won't disappoint you in this area I'm going to
    focus instead on politics because that's the hard part. Let's
    begin at the top since the national discussion of politics
    often begins with the White House.
        Since he has come to office the President has released
    several policies to promote commercial space development, space
    transportation, remote sensing and space-based navigation.
    These are pretty good policies and could help ensure American
    companies lead in the commercialization of space and that the
    jobs and benefits of space commercialization come to the United
    States and don't go overseas.
        In Congress we generally support the President's policies.
    Last year we passed H.S. 3936, the Space Commercialization
    Promotion Act of 1996 that codifies some aspects of the
    President's policies in law. We had representatives from the
    White House and the Executive Branch testify before the Space
    and Aeronautics Subcommittee. They asked for some modest
    changes to the bill which we made before we passed it. There
    was one exception regarding lifting post-employment
    restrictions on NASA's Space Shuttle workforce. We wanted to
    lift them and the White House didn't. We resolved the White
    House's problem in this year's bill.
        We reintroduced the bill with a few modest changes as H.R.
    1702, the Commercial Space Act of 1997. We have five original
    bipartisan co-sponsors, and I'm pleased to report that seven
    Members from both sides of the aisle have joined us as co-
    sponsors since the Subcommittee markup. I hope a few more
    Members will get on board before we file the legislative
    report.
        So where do the politics come in if we're all in agreement?
    Politics come in when you have to manage an interagency process
    and coordinate a flurry of paper from departments and agencies
    worried about the effect that the bill will have on their
    prerogatives. We understand that departments play different
    roles in moving our commercial space interests forward. So the
    Committee is trying to work with the Executive Branch to
    address these concerns that appear to be substantive and to
    clarify issues that may lead to different interpretations of
    intent.
        We made a few changes to the bill in last week's
    Subcommittee markup as a demonstration of our commitment to
    working with the Administration. For example, we removed the
    bill's requirement that the Secretary of Commerce go to court
    before imposing penalties on licensed remote sensing companies.
    Both the State and Commerce Departments indicated that this
    authority helps them ensure that licensees operate their
    satellites consistent with U.S. national security interests and
    international obligations.
        We made additional changes to satisfy various departments
    and agencies and we will make more today to address concerns
    raised by NASA and the Departments of State, Defense, Commerce
    and Transportation. We have not done everything they asked us
    to do in the manner they asked, but we have proven that this
    Committee will work constructively with the Administration to
    address the serious and substantive concerns that it has.
        That being said, I'm opposed to making changes simply to
    accommodate bureaucratic turf battles. In general the
    Administration and particularly the White House has tried to
    manage this process in a positive way, and I appreciate its
    efforts. We have taken several steps in the Administration's
    direction. From the discussions we have had with the White
    House and the Executive Departments the Administration has
    identified two significant remaining concerns.
        First, the Administration objects to the bill's
    requirements for the Departments of State and Defense to
    publish lists of national security concerns and international
    obligations they will use to determine if a license is
    consistent with our national security and international
    obligations. Our intent here is to move the government in the
    direction of telling the commercial sector what standards the
    government will use when it judges them. That information also
    helps companies avoid wasting time on activities that the
    government might object to because they know in advance what
    issues are important, and that's only fair.
        Second, in existing law there are multiple references to
    the need to ensure that licensed remote sensing operations are
    consistent with national security concerns and international
    obligations. There is one reference to international
    obligations and policies and this bill removes that reference.
    I am prepared to work toward a compromise on both these issues
    in exchange for a White House commitment of active support for
    the bill.
        Let me say that again so that everyone is perfectly clear
    about where I stand. I am prepared to resolve the
    Administration's two main problems with this bill in the
    interests of bipartisanship and the spirit of cooperation that
    I think the White House and the Committee are working toward.
    Unfortunately, the White House has instructed the Committee
    that no unified statement of Administration position is
    possible until after the Committee passes this legislation. I
    regret that a coordination of the various agencies concerned is
    not possible, but that's the call that has been made from up
    the street.
        I want a commitment from the White House that if we make a
    deal the White House will back that deal and actively support
    the bill, and I will not allow this Committee, the House or the
    commercial space industry to be nickeled and dimed to death by
    departments and agencies fighting turf battles. I don't think
    the White House has any desire to see that happen either. So we
    ought to be able to work this issue out after the Committee
    does its business today.
        It is my hope that by acting to pass this bill today we
    will take another step forward in securing the President's
    support for legislation so vital to the health of our
    commercial space industry, and I recognize the gentleman from
    California, Mr. Brown for an opening statement.
        Mr. Brown of California. Thank you very much, Mr. Chairman.
    I want to express my commendation for the views that you have
    stated here. As always you are extremely forthright, and I
    happen, on the substance of the matters that you have
    discussed, to be more in agreement with you than I am with the
    Administration. However, I am taking a position here that would
    lead to getting the Administration on board, and I hope that we
    can do so and get this bill passed and signed into law.
        I am a co-sponsor of the bill, and I want to commend the
    Chairman for the priority he is giving to passing it. His
    action is in accord with the Committee's long-standing
    bipartisan commitment to the development of a healthy and
    robust commercial space sector.
        Indeed, I believe that the Committee can be proud of the
    role it has played over the past 2 decades in helping to
    promote the emergence of commercial launch services and
    commercial remote sensing and value-added services industries.
    These industries are now poised to emulate the example of the
    highly successful satellite communications industry which
    continues to enjoy explosive growth coupled with the emergence
    of exciting new services.
        Nevertheless, more needs to be done to provide a
    constructive and stable policy environment for commercial space
    ventures. H.R. 1702 can play a useful, if modest, role in
    promoting such an environment. I would note in particular the
    provision of reentry licensing authority in H.R. 1702. If the
    promise of advanced reusable launch vehicles and other reentry
    vehicles is to be realized, we will need to ensure that the
    required licensing framework is in place, and I believe this
    bill provides that framework.
        The bill is not perfect, of course. The Administration has
    raised a number of, I say here thoughtful and constructive
    concerns, but I'm not sure I want to emphasize that too much,
    about the legislation. We are continuing to work with the
    Administration to seek common ground, and I hope that we can
    address some of the most significant concerns in today's
    markup.
        I really believe that the Chairman is more in tune with
    many of the things I have said in the past when he says he is
    opposed to making changes to satisfy bureaucratic turf battles
    because I think a lot of that is involved here, but I do feel
    an obligation to help guide this bill so that it ultimately can
    get the President's signature.
        I hope that I can assist the Chairman in working to resolve
    these problems of getting a unified Administration position on
    these things and in time that they can be embodied in a joint
    amendment which we can offer at the time the bill is brought to
    the Floor. I think we are not going to be able to resolve them
    before we complete this markup, and I'm not insisting that we
    do at this point.
        Chairman Sensenbrenner. I thank the gentleman from
    California.
        Without objection, other members' opening statements will
    be inserted in the record at this point.
        [The prepared statement of Mr. Weldon follows:]

    Statement of Rep. Dave Weldon on the Markup of the Commercial Space Act
                                    of 1997
        Washington, DC.----U.S. Representative Dave Weldon (R-FL) issued
    the following statement in advance of today's Science Committee markup
    of the Commercial Space Act of 1997:

          Mr. Chairman, I want to thank you for your diligence in moving
    this bill forward. Our Nation's future role in space depends a great
    deal on the ability to develop a viable commercial market in and for
    space, and H.R. 1702 marks an important step in that direction. I am
    committed to working with you as this moves forward to the House Floor,
    and I encourage our Senate colleagues to take this up as soon as
    possible. This legislation deserves bipartisan Congressional and White
    House support.
          H.R. 1702 sends an important signal to the commercial space
    community by moving the Federal Government towards increased purchase
    of launch and remote sensing services that are available commercially.
    It also instructs NASA to maximize the commercial opportunities on the
    International Space Station, which is critical to fostering a private
    sector role in the development and exploration of space.
          I will be offering an amendment today that improves the bill, one
    that ensures the potential contributions of state governments are not
    overlooked as we promote the commercial space market. Some States--such
    as California, Virginia, Florida, Texas, Alabama, New Mexico and
    others--are investing state funds in space-related facilities and
    activities.
          My amendment simply states that all of the studies and reports
    that are ordered under Section 101 of H.R. 1702 must consider the
    potential role of state governments as ``brokers'' of commercial space
    work between NASA and the private sector. State governments can provide
    additional sources of capital and expertise that could be important
    resources for commercial ventures, and my amendment would simply ensure
    that they are not overlooked as Space Station commercialization
    planning takes place.
          I look forward to working with my colleagues as we consider this
    bill.

        Chairman Sensenbrenner. Without objection, the bill will be
    considered as read and open for amendment at any point.
        Hearing none, so ordered.
        [A section-by-section analysis of H.R. 1702 and the text of
    the bill follow:]

        Chairman Sensenbrenner. I will ask that the members proceed
    with the amendments in the order on the roster.
        Amendment No. 1 is an en bloc amendment which I have which
    the Clerk will report.
        Ms. Schwartz. Amendments to H.R. 1702 offered by Mr.
    Sensenbrenner.
        Chairman Sensenbrenner. Without objection, the amendments
    will be considered en bloc and considered as read.
        Hearing none, so ordered.
        [An explanation of the en bloc amendment and the text of
    the amendment follow:]

        Chairman Sensenbrenner. The members of the Committee have
    in front of them a detailed explanation of the en bloc
    amendment. This amendment represents an attempt to deal with
    many of the concerns that have been raised by NASA and the
    Departments of Commerce, Defense, State and Transportation.
        We have also worked to resolve issues that have been raised
    by Democrats and Republicans on this Committee. The amendment
    does not represent the end of our work on this bill. I believe
    that the Committee has made a good-faith effort to deal with
    the numerous concerns that have been raised by the
    Administration. What I want from this process is an agreement
    with the Administration on what the major concerns are, how to
    address those concerns and whether addressing the major
    concerns will result in White House support for the bill.
        The amendment makes several changes to the Commercial Space
    Launch amendments to address concerns raised by the Department
    of Transportation and industry. It also makes several changes
    to Section 201, the amendments to the Land Remote Sensing
    Policy Act of 1992 to accommodate concerns raised by the
    Administration. This amendment contains changes that were
    worked out between Republicans and Democrats on this Committee
    and the Administration and it deserves support.
        I would point out that in every member's packet there is a
    list of the 12 different items of the bill that are amended. I
    do not believe this amendment to be controversial, and yield
    back the balance of my time.
        The gentleman from California.
        Mr. Brown of California. Mr. Chairman, I join in supporting
    your en block amendments. I think they are constructive and
    provide some useful improvements to the bill. As I have
    indicated earlier, my problem is with the fact that there are
    still some unaddressed objections which I think we will
    ultimately need to address from the Administration.
        I ask unanimous consent to put into the record three
    letters from the Defense, State and Justice Departments with
    regard to their problems.
        Chairman Sensenbrenner. Without objection.
        [The letters referred to follow:]

        Mr. Brown of California. As I said, I will do my very best
    to help the Chairman resolve this matter in an appropriate way.
        Chairman Sensenbrenner. The gentleman's time has expired.
        Is there further discussion on the en bloc amendments?
        [No response]
        Hearing none, all those in favor will signify by saying
    aye.
        [Chorus of ayes]
        Chairman Sensenbrenner. Opposed, no.
        [No response]
        The ``ayes'' have it and the amendments are agreed to.
        The next amendment on the roster is by the gentleman from
    Florida, Doctor Weldon.
        Mr. Weldon of Florida. Mr. Chairman, I have an amendment at
    the desk.
        Chairman Sensenbrenner. The Clerk will report the
    amendment.
        Ms. Schwartz. Amendment to H.R. 1702 offered by Mr. Weldon
    of Florida. Page 7 after line----
        Chairman Sensenbrenner. Without objection, the amendment is
    considered as read, and the gentleman from Florida is
    recognized for 5 minutes.
        [The text of the amendment follows:]

        Mr. Weldon of Florida. Mr. Chairman, I want to thank you
    for your diligence in moving this bill forward. Our Nation's
    future role in space depends a great deal on the ability to
    develop a viable commercial market in and for space, and H.R.
    1702 makes an important step in that direction.
        I am committed to working with you as this moves forward to
    the House Floor, and I encourage our Senate colleagues to take
    this measure up as soon as possible.
        I offer an amendment today that I believe improves the
    bill. As you know, Mr. Chairman, many States are getting
    actively involved in the Space Program, and I want to ensure
    that potential contributions are not overlooked as we promote
    the commercial space market. Some States, including my on State
    of Florida are investing State funds in space-related
    facilities and activities.
        Specifically my amendment would ensure that the role of
    state governments is not ignored as NASA considers the
    commercialization of the International Space Station. It simply
    states that all of the studies and reports that are ordered
    under Section 101 of H.R. 1702 must consider the potential role
    of state governments as brokers of commercial space work
    between NASA and the private sector.
        You might wonder what this means. The State of Florida, for
    example, provided the up-front funding for a new facility to
    store solid rocket motors. The State then leased back the
    facility to the aerospace company using it, which is paying off
    the initial investment made by the State. This arrangement
    enabled the company to make a long-term commercial investment
    in partnership with the State, an investment they might not
    have been able to do otherwise.
        State governments can provide additional sources of capital
    and expertise that could be important resources for commercial
    ventures, and this amendment would simply ensure that they are
    not overlooked as Space Station commercialization planning
    takes place. This means that States like California, Virginia,
    New Mexico, Alabama, Texas, Florida and others that have active
    roles in the space program will have an opportunity to
    participate in the exciting commercial space markets of the
    future.
        I urge all of my colleagues to support this amendment.
        Chairman Sensenbrenner. The gentleman's time has expired.
        Is there further discussion on the amendment of the
    gentleman from Florida?
        [No response]
        Hearing none, all those in favor will signify by saying
    aye.
        [Chorus of ayes]
        Chairman Sensenbrenner. Opposed, no.
        [No response]
        The ``ayes'' have it and the amendment is agreed to.
        Are there further amendments to the bill?
        [No response]
        If not, all those in favor of the bill please signify by
    saying Aye.
        [Chorus of Ayes]
        Chairman Sensenbrenner. Opposed, No.
        [No response]
        The ``Ayes'' have it and the motion is agreed to.
        The Chair now recognizes the gentleman from Alabama for a
    motion to report the bill.
        Mr. Rohrabacher. Mr. Chairman.
        Chairman Sensenbrenner. For what purpose does the gentleman
    from California seek recognition?
        Mr. Rohrabacher. I ask for unanimous consent to submit a
    Department of Commerce letter on H.R. 1702 for the record.
        Chairman Sensenbrenner. Without objection.
        [The letter referred to follows:]

        Chairman Sensenbrenner. The gentleman from Alabama, Mr.
    Cramer.
        Mr. Cramer. Mr. Chairman, I move that the Committee report
    the bill, H.R. 1702, the Commercial Space Act of 1997, as
    amended.
        Furthermore, I move to instruct the staff to prepare the
    legislative report, to make technical and conforming amendments
    and that the Chairman take all the necessary steps to bring the
    bill before the House for consideration.
        Chairman Sensenbrenner. The Chair notes the presence of a
    reporting quorum. The question is on the motion of the
    gentleman from Alabama.
        All those in favor will signify by saying aye.
        [Chorus of ayes]
        Chairman Sensenbrenner. Opposed, no.
        [No response]
        The ``ayes'' have it and the bill is reported.
        Without objection, members will have 2 subsequent calendar
    days in which to submit supplemental, Minority, or additional
    views on this measure pursuant to Clause 1 of Rule 20 of the
    Rules of the House of Representatives.
        The Committee authorizes the Chairman to offer such motions
    as may be necessary in the House to go to conference with the
    Senate on H.R. 1702 or a similar Senate bill.
        There being no further business before the Committee, the
    Chair declares the Committee adjourned and thanks the members
    for their cooperation.
        [The Committee adjourned at 1:33 p.m, subject to the call
    of the Chair.]