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104th Congress                                            Rept. 104-801
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
             SPACE COMMERCIALIZATION PROMOTION ACT OF 1996

_______________________________________________________________________


 September 17, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3936]

    The Committee on Science, to whom was referred the bill 
(H.R. 3936) 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 Legislation.............................13
 IV. Summary of Hearings.............................................13
  V. Committee Actions...............................................16
 VI. Sectional Analysis (By Title and Section).......................16
VII. Committee Views.................................................19
     Title I. Promotion of Commercial Space Opportunities............19
     Title II. Remote Sensing........................................23
     Title III. Federal Acquisition of Space Transportation Services.25
VIII.Committee Cost Estimates........................................27

 IX. Congressional Budget Office Cost Estimates......................27
  X. Effects of Legislation on Inflation.............................27
  
 XI. Oversight Findings and Recommendations..........................27
XII. Oversight Findings and Recommendations by the Committee on 
     Government Reform and Oversight.................................27
XIII.Changes in Existing Law Made by the Bill, as Reported...........28

XIV. Committee Recommendations.......................................52
 XV. Proceedings of Full Committee Markup............................53
XVI. Committee Correspondence.......................................131

                              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 ``Space 
Commercialization Promotion Act of 1996''.
    (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. Exceptions to employment restrictions.
Sec. 104. Launch voucher demonstration program.
Sec. 105. Promotion of United States Global Positioning System 
standards.
Sec. 106. Purchase of space science data.

                        TITLE II--REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth remote sensing 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. 304. Use of excess intercontinental ballistic missiles.

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 free market principles should be used in operating and 
adding capabilities to the Space Station whenever possible.
    (b) Report.--The Administrator shall deliver to the Congress, 
within 60 days after the date of the enactment of this Act, a market 
study that examines the role of commercial ventures which could supply, 
use, service, or augment the International Space Station, the specific 
policies and initiatives the Administrator is advancing to encourage 
these commercial opportunities, the cost savings to be realized by the 
international partnership from applying commercial approaches to cost-
shared operations, and the cost reimbursements to the United States 
Government from commercial users of the Space Station.

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) by striking ``and any payload'' and inserting 
                in lieu thereof ``or reentry vehicle and any payload 
                from Earth'' in paragraph (3);
                    (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) through (12) 
                as paragraphs (14) through (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--
                    (A) by striking ``The Secretary'' in subsection (a) 
                and inserting in lieu thereof ``Except as provided in 
                section 70122, the Secretary''; and
                    (B) in subsection (b)--
                            (i) by inserting ``and Reentries and State 
                        Sponsored Spaceports'' after ``Launches'' in 
                        the subsection heading;
                            (ii) by striking ``by the private sector'' 
                        in paragraph (1) and inserting in lieu thereof 
                        ``and reentries by the private sector and State 
                        sponsored spaceports'' after ``space 
                        launches''; and
                            (iii) 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 inserting at the end of subsection (a) the 
                following: ``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 7 days after any occurrence when a license is not 
                issued within the deadline established by this 
                subsection.'';
                    (D) by adding at the end of subsection (a) the 
                following new paragraph:
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for certification of the safety of launch vehicles, reentry 
vehicles, safety systems, procedures, services, or personnel that may 
be used in conducting licensed commercial space launch or reentry 
activities.'';
                    (E) by inserting ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1);
                    (F) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
                    (G) by striking ``and'' at the end of subsection 
                (b)(2)(B);
                    (H) by striking the period at the end of subsection 
                (b)(2)(C) and inserting in lieu thereof ``; and'';
                    (I) 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
                    (J) 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) in subsection (a)(1), by inserting after 
                subparagraph (B) the following:
``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.'';
                    (D) by inserting ``or reentry services'' after ``or 
                launch services'' in subsection (a)(2);
                    (E) by striking ``actual costs'' in subsection 
                (b)(1) and inserting in lieu thereof ``additive costs 
                only'';
                    (F) by inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (G) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (H) 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.'';
                    (I) 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
                    (J) 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, 
                reentry, or site operator'' 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, 
                reentry, or site operator'' 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, 
                reentry, or site operator'' 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

    ``The Secretary of Transportation, within 6 months after the date 
of the enactment of this section, shall issue regulations to carry out 
this chapter that include--
            ``(1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        operate a commercial launch vehicle or reentry vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch or reentry;
            ``(4) procedures for requesting and obtaining launch site 
        or reentry site operator licenses; and
            ``(5) procedures for the application of government 
        indemnification.

``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)(I).

SEC. 103. EXCEPTIONS TO EMPLOYMENT RESTRICTIONS.

    (a) General Rule.--Section 207(a) and (c) of title 18, United 
States Code, and section 27(f)(1) of the Federal Procurement Policy Act 
(41 U.S.C. 423(f)(1)) shall not apply to employees or former employees 
of the National Aeronautics and Space Administration seeking employment 
with an entity that is awarded the Space Flight Operations Contract for 
the Space Shuttle.
    (b) Exceptions.--Subsection (a) shall not apply to an employee who, 
while employed with the National Aeronautics and Space Administration, 
was actively and significantly involved in the selection of the entity 
that is awarded the Space Flight Operations Contract for the Space 
Shuttle.

SEC. 104. 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. 105. 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.--The Congress therefore encourages 
the President to--
            (1) undertake a coordinated effort within the executive 
        branch to promote cooperation with foreign governments and 
        international organizations to advance United States interests 
        with respect to the Global Positioning System standards and 
        augmentations; and
            (2) ensure the operation of the Global Positioning System 
        on a continuous worldwide basis free of direct user fees.

SEC. 106. PURCHASE OF SPACE SCIENCE DATA.

    (a) In General.--To the maximum extent possible, while satisfying 
the National Aeronautics and Space Administration's scientific 
requirements, the National Aeronautics and Space Administration shall, 
where cost effective, purchase from the United States private sector 
space science data. Examples of such data include scientific data 
concerning the elemental and mineralogical resources of the moon and 
the planets, Earth environmental data obtained through remote sensing 
observations, and solar storm monitoring.
    (b) Competitive Bidding.--(1) Contracts for the purchase of space 
science data under this section shall be awarded in a process of full, 
fair, and open competitive bidding.
    (2) Submission of cost data, either for the purposes of supporting 
the bid or fulfilling the contract, shall not be required of bidders or 
awardees of the contract, except in cases where only one credible bid 
meeting the requirements of the solicitation is received.
    (3) Reasonable performance specifications, rather than design or 
construction specifications, shall be used to the maximum extent 
feasible to define requirements for United States commercial providers 
with respect to the design, construction, or operation of equipment 
used in obtaining space science data under contracts entered into under 
this section. This subsection shall not be construed to prohibit the 
Federal Government from requiring compliance with applicable safety 
standards.
    (4) Contracts under this section shall not provide for the Federal 
Government to obtain ownership of data not specifically sought by the 
Federal Government.
    (c) Limitation.--This section does not authorize the National 
Aeronautics and Space Administration to provide financial assistance 
for the development of systems for the collection of space science 
data.

                        TITLE II--REMOTE SENSING

SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992 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) by inserting the following after subsection 
                (b)(4):
``The Director of the Office of Science and Technology Policy shall, no 
later than 60 days after the date of the enactment of the Space 
Commercialization Promotion Act of 1996, transmit the management plan 
to the Committee on Science of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate.'';
                    (B) 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
                    (C) 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 designated by 
                subparagraph (A) of this paragraph, by striking ``No 
                license'' and inserting in lieu thereof ``Except as 
                provided in paragraph (3), no license'';
                    (C) by adding at the end of subsection (b) the 
                following new paragraphs:
    ``(2) The Secretary, within 6 months after the date of the 
enactment of the Space Commercialization Promotion Act of 1996, 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.
    ``(3) The Secretary shall grant a license under this title to any 
United States commercial provider (as such term is defined in section 2 
of the Space Commercialization Promotion Act of 1996) whose application 
is in full compliance with the requirements of this title.'';
                    (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 terminate, modify, or suspend a license issued 
pursuant to this title on the basis of an 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 (15 U.S.C. 5623)--
                    (A) in subsection (a)(2), by striking ``under this 
                title and'' and inserting in lieu thereof ``under this 
                title or'';
                    (B) in subsection (a)(3), by striking ``provide 
                penalties'' and inserting in lieu thereof ``seek, in a 
                United States District Court with personal jurisdiction 
                over the licensee, penalties''; and
                    (C) in subsection (b), by striking ``(a)(3),'';
            (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 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 commercial sector, unless such 
activities would result in significant cost savings to the Federal 
Government.'';
            (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 nototherwise 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'';
            (15) in section 506 (15 U.S.C. 5656)--
                    (A) by inserting ``(1)'' after ``Communications 
                Commission.--'' in subsection (a);
                    (B) by inserting at the end of subsection (a) the 
                following new paragraph:
    ``(2) The Federal Communications Commission, within 6 months after 
the date of the enactment of the Space Commercialization Promotion Act 
of 1996, shall publish in the Federal Register a complete and specific 
list of all information required to comprise a complete application 
described in paragraph (1). 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 Federal Communications 
Commission has, within 30 days after receipt of an application, 
notified the applicant of information necessary to complete an 
application, the Federal Communications Commission may not deny the 
application on the basis of the absence of any such information.''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(e) Fees.--The Federal Communications Commission shall ensure 
that any licensing or other fees that a private remote sensing space 
system operator subject to the licensing requirements of title II is 
required to pay such Commission shall be proportional to the cost to 
the Commission of the radio licensing process for such person relative 
to the cost to the Commission of licensing other entities subject to 
the fee.''; and
            (16) 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 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 promptly of such conditions. Not later than 
60 days after receiving a request from the Secretary, the Secretary of 
Defense shall recommend to the Secretary any conditions for a license 
issued under title II, consistent with this Act, that the Secretary of 
Defense determines are needed to protect the national security of the 
United States. If no such recommendation 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 this Act 
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 60 days after receiving a request from the 
Secretary, the Secretary of State shall recommend to the Secretary any 
conditions for a license issued under title II, consistent with this 
Act, that the Secretary of State determines are needed to meet 
international obligations of the United States. If no such 
recommendation 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 and 
policies 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 United States 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 REMOTE SENSING DATA.

    (a) Acquisition.--To the maximum extent possible, while satisfying 
the National Aeronautics and Space Administration's scientific 
requirements, the Administrator shall, where cost effective, acquire 
space-based and airborne Earth remote sensing data, services, 
distribution, and applications provided by the United States private 
sector to meet Government goals for Mission to Planet Earth.
    (b) 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 the private sector, and how the 
National Aeronautics and Space Administration will meet such 
requirements which cannot be met by the private sector.
    (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 the private sector to enable the private 
        sector to better meet the baseline scientific requirements of 
        Mission to Planet Earth;
            (B) make recommendations to promote the dissemination to 
        the private sector 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.
    (c) Administration.--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.--(1) 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 Defense, determines that--
            (A) a payload requires the unique capabilities of the space 
        shuttle;
            (B) space transportation services that meet specific 
        mission requirements would not be reasonably available from 
        United States commercial providers when required;
            (C) the use of space transportation services from United 
        States commercial providers poses an unacceptable risk of loss 
        of a unique scientific opportunity;
            (D) the use of space transportation services from United 
        States commercial providers is inconsistent with national 
        security objectives; or
            (E) 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.
    (2) Determinations under paragraph (1) shall be made by the 
Administrator or the Secretary of the Air Force.
    (c) Partnerships.--The acquisition of space transportation services 
in connection with a payload with respect to which the Federal 
Government has provided a greater amount of the funding required for 
construction and operation than any other source, shall be subject to 
the requirements of this section.
    (d) Delayed Effect.--Subsections (a) and (c) 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.
    (e) 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) Competitive Bidding.--(1) Contracts for the acquisition of 
space transportation services by the Federal Government shall be 
awarded subject to applicable Federal law requiring full, fair, and 
open competition, including section 2304 of title 10, United States 
Code, and section 311 of the National Aeronautics and Space Act of 1958 
(42 U.S.C. 2459c).
    (2) Bidders for a contract for the acquisition by the Federal 
Government of space transportation services shall not be required to 
provide cost data for the purpose of supporting such a bid or 
fulfilling such a contract, except in cases where only one credible bid 
meeting the requirements of the solicitation is received.
    (b) Specification Systems.--Reasonable performance specifications, 
rather than design or construction specifications, shall be used to the 
maximum extent feasible to define requirements for United States 
commercial providers bidding to provide or providing space 
transportation services to the Federal Government. This subsection 
shall not be construed to prohibit the Federal Government from 
requiring compliance with applicable safety standards.

SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

    The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.) 
is amended--
            (1) by striking section 202;
            (2) in section 203--
                    (A) by striking paragraphs (1) and (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively;
            (3) by striking sections 204 and 205; and
            (4) in section 206--
                    (A) by striking ``(a) Commercial Payloads on the 
                Space Shuttle.--''; and
                    (B) by striking subsection (b).

SEC. 304. USE OF EXCESS INTERCONTINENTAL BALLISTIC MISSILES.

    (a) In General.--The Federal Government shall not--
            (1) convert any missile described in subsection (c) to a 
        space transportation vehicle configuration or otherwise use any 
        such missile to place a payload in space; or
            (2) transfer ownership of any such missile to another 
        person,
except as provided in subsection (b).
    (b) Authorized Federal Uses.--(1) A missile described in subsection 
(c) may be converted for use as a space transportation vehicle by the 
Federal Government if--
            (A) except as provided in paragraph (2), at least 120 days 
        before such conversion the agency seeking to use the missile as 
        a space transportation vehicle transmits to the Committee on 
        National Security and the Committee on Science of the House of 
        Representatives, and to the Committee on Armed Services and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate, a report that contains--
                    (i) a certification that the use of such missile--
                            (I) would result in significant cost 
                        savings to the Federal Government when compared 
                        to the cost of acquiring space transportation 
                        services from United States commercial 
                        providers; and
                            (II) meets all mission requirements of the 
                        agency, including performance, schedule, and 
                        risk requirements; and
                    (ii) comments obtained from United States 
                commercial providers in response to prior public notice 
                published in the Commerce Business Daily;
            (B) the use of such missile is consistent with 
        international obligations of the United States; and
            (C) the Secretary of Defense approves of such conversion.
    (2) The requirement under paragraph (1)(A) that the report 
described in that subparagraph must be transmitted at least 120 days 
before conversion of the missile shall not apply if the Secretary of 
Defense determines that compliance with that requirement would be 
inconsistent with meeting immediate national security requirements.
    (c) Missiles Referred to.--The missiles referred to in this section 
are missiles owned by the United States that were formerly used by the 
Department of Defense for national defense purposes as intercontinental 
ballistic missiles and that have been retired from service in 
compliance with international obligations of the United States.

                        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 industry of American entrepreneurialism.

                III. Background and Need for Legislation

    In 1994, commercial space activity in the United States 
generated $6.2 billion in revenue. Current estimates indicate 
that this area of activity generated revenue of some $7.5 
billion in 1995. For most of this decade, commercial space 
activity has proven recession-proof, providing thousands of 
high-skilled, well-paying jobs in the nation's aerospace 
industry, which has borne the burden of cutbacks in federal 
defense spending since 1986. Besides improving the U.S. 
industrial base, commercial space business creates new 
capabilities for using space to enhance the lives of millions 
of Americans and provides tax revenue that will help balance 
the federal budget.
    Commercial space activity has received bipartisan support 
for years, resulting in the passage of landmark legislation, 
such as the Commercial Space Launch Act of 1984, the Launch 
Services Purchase Act of 1990 and the Land Remote Sensing 
Policy Act of 1992. While those laws have enabled the U.S. 
commercial space industry to lead the world in the private 
development of space, experience and the pace of technological 
change have demonstrated that the regulatory framework 
governing commercial space activity needs to be updated and 
improved. The Space Commercialization Promotion Act of 1996 
begins this process.

                        IV. Summary of Hearings

    In developing this bill, the Committee sought input from 
experts in industry, the executive branch, the academic sector, 
and citizens' groups. In seeking this input, the Science 
Committee cast a wide net, combining new approaches of 
reviewing legislative ideas with more traditional Congressional 
practices. On March 5, 1996, the Science Committee introduced a 
new concept for legislative information gathering and held a 
roundtable on a draft bill entitled, ``Omnibus Space 
Commercialization Act of 1996,'' and on H.R. 1953, the ``Space 
Business Incentives Act of 1996.'' The roundtable, co-sponsored 
by a Washington-based grassroots space advocacy group, the 
National Space Society, welcomed current and former government 
officials, industry executives from small, entrepreneurial 
companies and larger government contractors, policy analysts 
from various think tanks, and representatives from advocacy 
groups. Because the forum was unofficial and not highly 
structured, participants were free to speak more candidly than 
hearings usually allow. Based on that roundtable and additional 
comments from other interested parties, the Omnibus Space 
Commercialization Bill was redrafted, streamlined, renamed the 
``Space Commercialization Promotion Act of 1996,'' and 
introduced by twelve members of the Science Committee on August 
1, 1996.
    In addition to the roundtable, the Committee held several 
hearings on commercial space development that were instrumental 
in developing and finalizing the legislation. On November 8, 
1995, the Science Committee held a hearing entitled, ``NASA 
Procurement in the Earth-Space Economy,'' which examined 
methods by which NASA could fulfill its missions while 
stimulating the commercial space industry. Witnesses included: 
Ms. Deirdre Lee, NASA's Associate Administrator for 
Procurement; Mr. Rick Dunn, who served in the office of NASA's 
General Counsel and is currently General Counsel of the Defense 
Advanced Research Projects Agency; Mr. John Muratore, of the 
Johnson Space Center; Mr. Dennis Burnett, representing 
Instrumentation Technology Associates, Inc.; Mr. David Rossi, 
Senior Vice President of Spacehab, Inc.; Mr. James Frelk, Vice 
President of Earthwatch Inc.; and Mr. Tom Rogers, President of 
the Sophron Foundation and advisor to the Space Frontier 
Foundation.
    On June 12, 1996, the Subcommittee on Space and Aeronautics 
held a hearing, ``U.S. Space Launch Strategy,'' which examined 
the health of the U.S. space launch industry and the impact of 
various trade agreements. Witnesses included: the Honorable Dan 
Goldin, NASA Administrator; Mr. Robert Davis, Deputy 
Undersecretary of Defense for Space; Mr. Don Eiss, Deputy 
Assistant U.S. Trade Representative for Industry and Labor; Ms. 
Catherine Novelli, Deputy Assistant U.S. Trade Representative 
for Eastern/Central Europe and Eurasia; Mr. Frank Weaver, FAA 
Associate Administrator for Commercial Space Transportation; 
Dr. Brian Dailey, Vice President for Business Development of 
Lockheed-Martin Corporation's Space and Strategic Missiles 
Sector; Mr. Stanley Ebner, Senior Vice President for Washington 
Operations of McDonnell Douglas Aerospace; Mr. Edward O'Connor, 
Executive Director of the Spaceport Florida Authority; Mr. Pat 
Ladner, Executive Director of the Alaska Aerospace Development 
Corporation; Mr. Donald Smith, Executive Director of the 
Western Commercial Space Center; and Mr. David Montanaro, Vice 
President of Teledesic Corporation. Written statements were 
accepted from Rockwell International Corporation and 
Arianespace.
    On July 31, 1996, the Subcommittee on Space and Aeronautics 
held a hearing on the draft legislation entitled ``The Space 
Commercialization Promotion Act of 1996.'' Witnesses included: 
the Honorable Lionel S. Johns, Associate Director for 
Technology of the White House Office of Science and Technology 
Policy; Lt. Gen. Spence Armstrong (retired), NASA Associate 
Administrator for Human Resources and Education; Mr. Gil 
Klinger, Principal Assistant Undersecretary of Defense for 
Space; Dr. Brian Dailey, Vice President for Business 
Development of Lockheed-Martin Corporation's Space and 
Strategic Missiles Sector; Dr. Scott Pace, the RAND 
Corporation; and Mr. Mark Brender, of ABC News, representing 
the National Radio and Television News Director's Association's 
Remote Sensing Task Force. The record was held open after the 
hearing to accept additional written statements from interested 
parties. The Subcommittee has received statements from the U.S. 
GPS Industry Council, the United Space Alliance, the North 
American Remote Sensing Industries Association, and the law 
firm of Reed Smith Shaw & McClay.
    Witnesses at the hearing discussed those portions of the 
bill they thought would be most helpful to U.S. goals for 
promoting a healthy commercial space industry, and those 
aspects of the bill they would like to see changed. Mr. Johns 
noted that the bill was generally consistent with White House 
policies to promote space commercialization and that the areas 
of spaceports, Global Positioning System (GPS) policy, and 
remote sensing paralleled the Administration's policies. 
However, he noted for the record that the Administration was 
opposed to legislative relief for NASA employees who are 
currently prohibited from transitioning from the civil service 
to the Space Shuttle's single prime contractor for the Space 
Flight Operations Contract. Chairman Sensenbrenner noted that 
such relief was necessary to complete the Administration's 
policy of consolidating Space Shuttle contracts and that it was 
essential to ensure the safety requirements of a stable Shuttle 
workforce. General Armstrong, accompanied by Ed Frankle, NASA's 
General Counsel, discussed personnel issues and the transition 
of the Space Shuttle to a single prime contractor, which relate 
directly to section 103 of the bill. He noted that the 
Executive Branch Office of Personnel Management and the Office 
of Government Ethics were uncomfortable with some of the steps 
NASA wanted to take to facilitate the transition of Shuttle 
operations to a single prime contract. Mr. Klinger indicated 
that the bill's requirement for the Department of Defense to 
procure launch services commercially was consistent with the 
direction of federal policy, but did not believe that the 
transition should be accelerated by law. He also objected to 
the bill's provisions that required the Defense Department to 
report its objections to a commercial remote sensing license to 
Congress, and said that the President's policy governing the 
disposition of excess ICBMs was sufficient and did not need to 
be codified and expanded in law.
    Dr. Dailey testified that Lockheed-Martin, which is a 
partner in the United Space Alliance (the entity that has been 
selected through a sole-source procurement to manage the Space 
Flight Operations Contract), supported section 103 of the bill, 
which lifts post-employment restrictions for NASA employees 
joining the United Space Alliance. He specifically testified 
that the bill's commercial remote sensing provisions were 
necessary to keep U.S. companies ahead of their competition. 
Dr. Pace endorsed the GPS provisions of the bill, which ensure 
that the United States speaks with a unified voice overseas; 
the remote sensing provisions of the bill, which will 
streamline the regulatory process; and the provisions dealing 
with excess ballistic missiles, which reflect national policy. 
Mr. Brender argued that current policy on remote sensing, which 
gives the federal government control over privately-owned 
remote sensing satellites, is inconsistent with the First 
Amendment. Although the bill under discussion revisits the 
issue of shutter control, and tends to require a higher 
standard for the government to exercise that control, Mr. 
Brender testified that he believed it still violates rules on 
prior restraint of the media.

                          V. Committee Actions

    H.R. 3936 was introduced August 1, 1996 by Chairman Walker 
and co-sponsored by Mr. Sensenbrenner, Mr. Largent, Mr. Weldon 
of Florida, Mr. Rohrabacher, Mr. Hilleary, Mr. Stockman, Mr. 
Davis, Mr. Calvert, Mr. Baker of California, Mrs. Seastrand, 
and Mr. Tiahrt. The bill was referred to the Committee on 
Science and the Committee on Government Reform and Oversight. 
Within the Science Committee, the bill was referred to the 
Subcommittee on Space and Aeronautics. On September 9, 1996 
Chairman Sensenbrenner and Ranking Member Hall signed a letter 
of discharge, releasing the bill from the Subcommittee on Space 
and Aeronautics to the full Science Committee for 
consideration.
    On September 11, 1996, the Committee on Science marked up 
H.R. 3936. A quorum being present, the bill was adopted, as 
amended, by a voice vote and ordered reported, by a voice vote, 
to the full House for consideration. One amendment, a manager's 
amendment jointly sponsored by Chairman Walker and Ranking 
Member Brown, was adopted by a voice vote. The Committee also 
adopted, by a voice vote, motions to submit supplementary, 
Minority, or additional views for the legislative report.
    Science Committee staff met with representatives of the 
Committee on Government Reform and Oversight, whose concerns 
were addressed by the manager's amendment offered during the 
Science Committee markup of the bill and the amendment to be 
offered on the Floor under suspension of the rules. On 
September 16, 1996, Chairman William F. Clinger, Jr. signed a 
letter of discharge from the Committee on Government Reform and 
Oversight, releasing the bill for consideration by the House of 
Representatives.

             VI. Sectional Analysis (By Title and Section)

Section 1 Short Title
Section 2 Definitions

TITLE I PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Section 101 Commercialization of Space Station

Directs the NASA Administrator to prepare a market study that 
examines (a) the role commercial ventures could play in 
supplying, using, servicing, or augmenting the International 
Space Station; (b) specific policies and initiatives underway 
at NASA to encourage such commercial opportunities; and (c) the 
cost savings that might be realized by the international 
partnership from applying commercial approaches to cost-shared 
operations and by the U.S. government from cost reimbursements 
by commercial users.

Section 102 Commercial Space Launch Amendments

Amends Chapter 701 of title 49, United States Code. The purpose 
of the section is to establish a regulatory framework for 
licensing commercial reentry activities by the Secretary of 
Transportation, clarify certain provisions of Chapter 701, and 
provide for regulations to accept or reject a license 
application within 60 days of receipt. The definition of launch 
services is expanded to those activities directly related to 
the preparation of a launch site or a payload facility. The 
House and Senate are to receive written notice within 7 days if 
a license has not been issued within the deadline. The 
Secretary is required to coordinate the establishment of 
criteria and procedures for determining the priority of 
competing requests from the private sector and State 
governments for property and services. The term ``license'' is 
amended to ``launch reentry or site operator license'' under 
section 70112 on liability insurance. The Secretary is required 
to issue regulations, within 6 months after the date of 
enactment, to carry out the provisions of Chapter 701. The 
Secretary is required to submit an annual report to Congress on 
the activities undertaken pursuant to Chapter 701.

Section 103 Exceptions to Employment Restrictions

Allows exceptions to post-employment restrictions for NASA 
employees going to work for the entity that is awarded the 
Space Flight Operations Contract for the Space Shuttle.

Section 104 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 by striking outdated references to dates and 
offices.

Section 105 Promotion of United States Global Positioning 
System Standards

Reaffirms U.S. policy to make the U.S. Global Positioning 
System (GPS) the world standard through promotion of 
international cooperation and the continuous maintenance of a 
navigation signal, free of direct user fees.

Section 106 Purchase of Space Science Data

Requires NASA, to the maximum extent possible, to purchase 
space science data where cost effective, from the private 
sector using reasonable performance specifications. The section 
allows for satisfying NASA's scientific requirements. NASA is 
not authorized to provide financial assistance for the 
development of commercial systems for the collection of space 
science data.

TITLE II REMOTE SENSING

Section 201 Land Remote Sensing Policy Act of 1992 Amendments

Updates the Land Remote Sensing Policy Act of 1992 (15 U.S.C. 
5601 et seq.). Directs the Office of Science and Technology 
Policy to submit to Congress the Landsat Management Plan. 
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 modifying 
a license agreement based on foreign participation without 
first transmitting 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 to report to 
Congress any injunctions that it seeks against a U.S. 
commercial provider. Prohibits the federal government from 
duplicating private sector activities unless significant 
savings can be realized. Requires the Federal Communications 
Commission (FCC) to publish a public list of requirements 
needed for any application that a remote sensing system must 
receive from the FCC. Requires the Secretaries of Defense and 
State to consult with the Secretary of Commerce regarding 
license applications and 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.

Section 202 Acquisition of Earth Remote Sensing Data

Requires NASA, to the maximum extent possible, to acquire Earth 
remote sensing data, services, distribution, and applications, 
where cost effective, from the private sector to meet Mission 
to Planet Earth goals. The section allows for satisfying NASA's 
scientific requirements. Directs the NASA Administrator to 
conduct a study to determine what baseline science data 
requirements for Mission to Planet Earth can be met by the 
private sector and to recommend appropriate steps to improve 
the private sector's ability to meet U.S. Earth science data 
requirements. The results of the study are to be transmitted to 
Congress within 6 months after the date of enactment.

TITLE III FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Section 301 Requirement to Procure Commercial Space 
Transportation Services

Requires the federal government to procure space transportation 
services from the private sector 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; or 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. 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.

Section 302 Acquisition of Space Transportation Services

Requires competitive bidding for the acquisition of space 
transportation services using performance specifications.

Section 303 Launch Services Purchase Act of 1990 Amendments

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

Section 304 Use of Excess Intercontinental Ballistic Missiles

A missile may be converted for use as a space transportation 
vehicle by the federal government if: (a) 120 days prior to 
conversion, the agency seeking to use the missile transmits a 
report to Congress certifying that such use would result in 
significant cost savings to the federal government and would 
meet all mission requirements; (b) the use of such missile is 
consistent with international obligations of the U.S.; and (c) 
the Secretary of Defense approves of such conversion. The 
report shall also contain Commerce Business Daily comments from 
U.S. commercial providers. The requirement that the report be 
submitted within 120 days is waived if the Secretary of Defense 
determines that compliance would be inconsistent with immediate 
national security concerns.

                          VII. Committee Views

    For most of the history of the U.S. space program, U.S. 
space activity has resulted from government expenditures. While 
that has resulted in the world's most ambitious and advanced 
space program, it has also made U.S. activity in space 
vulnerable to changing political support for the national space 
program. Given the increasing role that space plays in 
developing new technology, advancing life on Earth, and 
protecting our national security, we have a need to encourage 
non-government development of space by Americans. Commercial 
space activity will accelerate, bringing the benefits of space 
activity to Earth to help strengthen our space industrial base. 
Finally, unleashing the spirit, energy, and work ethic of U.S. 
entrepreneurialism will do the most to open up the true 
potential of space to benefit life on Earth.

Title I Promotion of Commercial Space Opportunities.

    There are many ways to promote the economic development of 
outer space. Government can create new technologies, which are 
then transitioned to the private sector. A prime example is the 
field of space communications. Government can also develop more 
creative ways of undertaking its space missions which enable 
the U.S. private sector to develop space more economically. 
This has the added benefit of broadening the U.S. space 
industrial base and creating new capabilities to use space, 
both of which can lower government's cost of undertaking 
missions that serve the nation's interest in national security, 
science, and exploration. Finally, government can provide a 
stable business environment, so that entrepreneurs and workers 
who have solved the capital and technological obstacles to the 
economic development of space can make rational business 
decisions and generate the profits that attract more investment 
in the space sector. Title I focuses on these elements of 
public policy in promoting commercial space activity in new 
areas of growth.

Sec. 101. Commercialization of Space Station.

    The International Space Station's first element will be 
launched next year, yet questions remain about how to most 
effectively use the Station. While NASA does have a solid 
science program for station utilization, determining how it can 
be used to support the economic development of space and how 
private sector capabilities can be used to augment the 
station's capabilities and lower the federal costs of operating 
it remains problematic. This section firmly establishes the 
national goal of using the station to promote commercial 
development of space. It also requires NASA to report those 
steps that it is currently considering to meet these goals.
    The Committee believes that human space flight activity 
must ultimately evolve from its present infancy in the cradle 
of national governments to a mature stage where entrepreneurs 
lead the way in developing and exploring outer space. Taking 
the long view, the Committee believes that the International 
Space Station is capable not only of serving national research 
needs, but also of sparking the creation of a new economic zone 
in Earth's orbit. As such, the International Space Station 
becomes a community in space, however small, which has 
inherently economic characteristics.
    The Committee is aware that NASA would like to use the 
International Space Station to promote the economic development 
of space, a goal that the Committee enthusiastically embraces. 
However, it is not clear that NASA's past practices of simply 
providing companies access to the Shuttle to perform 
experiments, sufficiently promotes private sector development 
of new space capabilities. Sometimes such companies become 
dependent on the government for access to space; their 
commercial activities in space are not sufficiently lucrative 
based on these limited flight opportunities for the companies 
to privately finance the cost of getting into orbit. As a 
result, these companies are making commercial use of space, but 
their activity is not itself expanding the opportunities to use 
space for commercial activity. Consequently, the Committee 
encourages NASA to explore creative new ways of promoting 
economic development in Earth orbit around the Space Station. 
Just as the Department of Defense saves money by using private 
sector commercial contractors to perform some maintenance and 
upgrade activities, NASA may be able to develop means of 
operating and upgrading the International Space Station through 
the private sector. In this scenario, the private sector acts 
as a commercial service provider instead of merely a government 
contractor. Presumably, such companies would use this base 
stream of revenue to privately finance new capabilities to use 
space which can be sold commercially. Thus, the financial base 
of space activity grows beyond the funds provided by the 
federal government and lowers the cost of overhead. The market 
study required by this section is intended to make clear the 
wide range of economic opportunities for U.S. commercial firms' 
interaction with the International Space Station community. It 
is vital to the future of expanding human civilization into 
space that the first steps be taken using free market 
principles, when and where appropriate. The market study 
required in this bill will form the basis for a national 
discussion on how and when market principles can govern the 
development of space.

Sec. 102. Commercial Space Launch Amendments.

    When NASA first built the Space Shuttle, the United States 
government used it to launch commercial payloads into space. 
While such actions subsidized the growth of the satellite 
communications industry, they put the U.S. commercial launch 
industry almost completely out of business. When the Space 
Shuttle Challenger exploded in 1986, even the short-term 
benefits to the satellite communications industry evaporated 
and the long-term consequences proved harmful. Because the U.S. 
commercial space launch industry was weak and the Shuttle was 
grounded, the U.S. satellite industry suddenly faced near 
monopolistic conditions in the number of suppliers it could use 
to access space. This proved the disastrous consequences of 
government competition with the U.S. private sector, for both 
the U.S. government and the private sector.
    Since that time, the U.S. commercial launch industry has 
staged a remarkable recovery and the Shuttle has been limited 
to government payloads that require a human presence. 
Nevertheless, the U.S. launch industry uses older technology 
and faces stiff competition from foreign governments using 
aggressive mercantilist practices to protect their launch 
industries. The U.S. response to this situation has several 
facets. First, the United States government is investing in 
new, pre-competitive space transportation technology in its 
Reusable Launch Vehicle (RLV) program. Second, it is updating 
the space transportation infrastructure in the United States 
and encouraging the commercial development and augmentation of 
U.S. space transportation facilities through the creation of 
commercial spaceports. Finally, it is attempting to provide a 
stable business environment for U.S. space transportation 
companies.
    To fully implement these measures, the regulatory regime 
governing space transportation in the United States needs to be 
updated. This section of the bill updates the Department of 
Transportation's authority to write regulations that take new 
technologies into account, such as the reentry of space 
transportation vehicles, including the RLV. It also recognizes 
new business activities that are taking place in space in the 
area of microgravity processing and information services.
    In the area of space transportation infrastructure, the 
Department of Transportation has been disappointing. Initially 
created to provide a ``one-stop shop'' for licensing launch 
operations while protecting public safety, the Department's 
Office of Commercial Space Transportation (OCST) has not issued 
regulations governing the licensing of commercial spaceports 
since beginning the effort nearly a decade ago. Instead, it has 
issued non-binding guidelines, which are subject to ad hoc 
changes and do not provide the stable business environment 
needed to promote the upgrading of the U.S. space 
transportation infrastructure at private expense. The absence 
of regulations which bind both the private sector and the 
government led the Committee to consider transferring the 
authority to regulate commercial spaceports to the states, even 
though such a move might result in a patchwork of different 
regulations. However, it was decided that continued prodding 
might prove more productive in the long-run. This bill, as 
reported, does not transfer such authority to the states. That 
option, along with the possibility of disbanding OCST and 
transferring its authority elsewhere, will remain for future 
legislative consideration.

Sec. 103. Exceptions to Employment Restrictions

    In order to reduce costs and streamline operations of the 
Space Shuttle, the Administration has decided that operations 
will be managed by the private sector under a single, 
consolidated prime contract with NASA. In general, Congress has 
accepted this decision by the Administration, even though the 
NASA Administrator decided to select the United Space Alliance 
as the Shuttle operator without a competitive process. In 
several hearings, NASA officials have testified that this 
consolidation is in the nation's interests and that safety will 
not be compromised during the process because NASA employees 
with critical skills would simply move over to the contractor.
    In the course of examining this process, it was discovered 
that current civil service laws would prevent NASA civil 
servants from performing their functions as employees of the 
United Space Alliance. The Science Committee, therefore, 
drafted a limited exception that will allow members of NASA's 
civil service Shuttle workforce who did not play a significant 
role in awarding the single prime contract to seek employment 
with the United Space Alliance under the Space Flight 
Operations Contract.

Sec. 104. Launch Voucher Demonstration Program.

    The 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.

Sec. 105. Promotion of United States Global Positioning System 
Standards

    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 to 
promote the U.S. GPS system as the world's standard. 
Consequently, the Congress expresses its support for this 
policy 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.

Sec. 106. Purchase of Space Science Data

    In the future, the Committee believes that increased 
private sector activity in space will increase the number of 
opportunities to collect scientific data. Therefore, the 
Committee directs NASA to purchase such data from the private 
sector, when doing so is cost effective and consistent with 
U.S. scientific goals. It is not the Committee's belief that 
NASA would implement this decision by providing funds for the 
development of commercial systems to collect space science 
data. Instead, it is the Committee's intention that NASA would 
pay a data provider for data, only upon its satisfactory 
delivery. The Committee further believes that such a program 
will expand the number of opportunities for conducting space 
science and lower the cost of improving our knowledge about 
this planet and the solar system.

Title II Remote Sensing

Sec. 201. Land Remote Sensing Policy Act of 1992 Amendments

    Congress worked on a bipartisan basis to pass the Land 
Remote Sensing Policy Act of 1992, which President Bush signed. 
That law enabled the private sector to design, build, own and 
operate satellites that image the Earth from outer space. Such 
systems have multiple uses, including land-use planning, 
construction site management, precision agriculture, pollution 
detection and environmental cleanup. Several foreign 
governments are entering this commercial market and could 
eliminate the technical lead and competitive advantages that 
U.S. companies have in this multi-billion dollar industry. 
Given this development and four years 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 Space Commerce 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 rests 
with the government. In other words, it is not the license 
applicant's duty to prove that it should receive a license if 
it meets all the requirements of current law and regulations.
    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 most 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. The bill contains similar 
measures relating to the Federal Communications Commission 
(FCC). It also requires that FCC fees for satellite downlinks 
used on commercial remote sensing satellites be commensurate 
with the cost of administering them.
    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 and international obligations, respectively. 
Both Departments have taken too long to make such 
determinations. The bill requires that they inform the 
Secretary of Commerce of any concerns within 60 days of the 
request from the Secretary of Commerce. Furthermore, 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. Furthermore, 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 
the ``clear and present danger'' standard that governs 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.
    Additionally, under current law, U.S. commercial remote 
sensing companies are obligated to report business transactions 
with foreign entities to the United States government. The 
intention of the original provision was to protect U.S. 
national security interests by ensuring that a licensee was not 
controlled by a foreign entity 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. 
Consequently, the bill requires licensees to notify the 
government only of ``significant or substantial'' agreements 
relating to land remote sensing with foreign entities. 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 remain under the control of U.S. persons. It does not 
require licensees to report every agreement with a foreign 
entity to the United States 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 interests.
    Current law also enables the Secretary of Commerce to 
unilaterally alter a license that has been granted and to 
impose administrative fees and penalties for noncompliance with 
the terms of the license. While the Committee believes that the 
Secretary should have sufficient authority to protect U.S. 
national interests, it also believes that such authority should 
only be exercised with consideration to due process. 
Consequently, while preserving such authority, the bill 
requires that the Secretary notify licensees and Congress of 
any reasons it elects to alter a license. Furthermore, the 
Secretary's ability to act as prosecutor, judge, and jury in 
the case of imposing administrative penalties has been altered 
to provide U.S. companies with due process. Under the bill, the 
Secretary must seek penalties from a U.S. District Court for 
noncompliance.
    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. But, the Committee does not 
believe that the U.S. government should be in competition with 
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 U.S. 
commercial providers.

Sec. 202. Acquisition of Earth Remote Sensing Data

    The private sector has a very advanced capability to study 
the Earth. The Geographic Information Systems (GIS) industry is 
a multi-billion dollar industry that is rapidly developing new 
capabilities for collecting, processing, analyzing, managing, 
and storing information about the Earth's surface. Many 
companies are in the process of building satellites to image 
the Earth, as the Land Remote Sensing Policy Act of 1992 
permitted them to do. The Committee believes that this industry 
may have the same impact on the commercial space frontier as 
the communications industry and that it will create new 
opportunities to image the Earth from space. This section 
directs NASA to study the capabilities of these commercial 
remote sensing companies and to explore the mechanisms by which 
those private capabilities might be used to collect 
scientifically useful global climate data; and then to purchase 
such data if it is available and cost effective. The Committee 
notes that the White House Office of Management and Budget 
initially directed NASA to start a program of purchasing 
scientific data from the private sector in the fiscal year 1997 
budget request. The Committee had attempted to start such a 
program in fiscal year 1996 and welcomes the White House 
decision.
    In the past, NASA has sponsored data purchase programs in 
which NASA provided advance payments to a company to build, 
launch, own and operate a satellite essentially designed to 
meet NASA's needs. The Committee does not believe that NASA 
should provide advance payments to data providers for the 
construction of hardware. Instead, NASA should only pay data 
providers for data upon its satisfactory delivery.

Title III Federal Acquisition of Space Transportation Services

Sec. 301. Requirement to Procure Commercial Space 
Transportation Services

    This section requires the federal government to procure 
space transportation services from the private sector, instead 
of purchasing them. The section provides exceptions if: (1) a 
payload requires the unique capabilities of the Space Shuttle; 
(2) the private sector does not offer space transportation 
services that meet a mission's unique requirements; (3) use of 
the private sector's capability would pose an unacceptable risk 
of loss of a scientific opportunity; (4) use of the private 
sector's capability is inconsistent with national security 
objectives; or (5) it is more cost effective to transport a 
payload in conjunction with a test or demonstration of a 
vehicle owned by the government.
    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 enhancing the competitive position in relation to 
foreign competition in providing such services, rather than on 
increasing the award fee in contracts with the federal 
government. To its credit, NASA already attempts to purchase 
space transportation services commercially. The Department of 
Defense, however, continues to purchase the space 
transportation vehicles themselves. DoD 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 private sector. The private 
sector actually builds the classified payloads that Department 
of Defense launches. If the Defense Department can accept that 
the private sector can build its classified payloads, then it 
should be able to accept the private 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.

Sec. 302. Acquisition of Space Transportation Services

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

Sec. 303. Launch Services Purchase Act of 1990 Amendments

    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.

Sec. 304. Use of Excess Intercontinental Ballistic Missiles

    In 1994, the White House released the National Space 
Transportation Policy which made it possible for the federal 
government to convert retired ICBMs into space transportation 
vehicles for use by government agencies, if doing so saved 
money. It is the Committee's understanding that the policy 
sought to strike a balance between efficient use of government 
assets and the potential to undermine the health of the U.S. 
commercial space transportation industry. Wholesale conversions 
of ICBMs into space transportation vehicles risks placing the 
government in the position of competing with the private sector 
and could have long-term consequences similar to the pre-
Challenger decision to use the Space Shuttle to launch 
commercial payloads. At the same time, the taxpayers have a 
right to expect that the government will take all steps 
possible to reduce the cost of government activity.
    This section of the bill codifies much of the National 
Space Transportation Policy, with an eye towards bringing cost 
savings to the taxpayer without undermining the commercial 
space transportation industry. There are added reporting 
requirements so that agencies converting ICBMs into space 
transportation vehicles give careful consideration to the 
impact of conversion on the health of the U.S. space 
transportation industry.
    The Defense Department may only convert ICBMs into space 
transportation vehicles for use by a government agency if it 
notifies Congress 120 days before conversion. Further, the 
Defense Department must certify that the use of the converted 
missile will result in significant cost savings and meets the 
mission requirements of the agency. And, the Secretary of 
Defense must approve of the conversion. As part of this 
process, the Department of Defense is required to seek comment 
from the private sector to determine if any commercial 
providers could provide the service at a lower cost. The 
savings are demonstrated by comparing the cost of converting an 
ICBM to launch a payload with the price offered by the private 
sector for launching that payload. The government must 
demonstrate that its cost is significantly lower than the price 
it would pay commercially in order to convert and use an ICBM 
as a space transportation vehicle.

                     VIII. Committee Cost Estimates

    The bill does not affect federal revenues or outlays. It 
should save the government money in the long-run if the private 
sector increases its investments in the nation's space 
technology base.

             IX. Congressional Budget Office Cost Estimates

    The CBO cost estimate was not available at time of 
printing.

                 X. Effects of Legislation on Inflation

    In accordance with rule XI, clause 2(1)(4) of the Rules of 
the House of Representatives, this legislation is assumed to 
have no inflationary effect on prices and costs in the 
operation of the national economy.

               XI. Oversight Findings and Recommendations

    Clause 2(1)(3)(A) of rule XI requires each committee report 
to contain oversight findings and recommendations required 
pursuant to clause 2(b)(1) of rule X. The Committee has no 
oversight findings.

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

    Clause 2(1)(3)(D) of rule XI 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 have been timely submitted. The 
Committee on Science has received no such findings or 
recommendations from the Committee on Government Reform and 
Oversight.

      XIII. 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.
70102.  Definitions.
70103.  General authority.
[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.
            (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] Except as provided in section 
70122, the Secretary of Transportation shall carry out this 
chapter.
    (b) Facilitating Commercial Launches and Reentries and 
State Sponsored Spaceports.--In carrying out this chapter, the 
Secretary shall--
            (1) encourage, facilitate, and promote commercial 
        space launches [by the private sector] and reentries by 
        the private sector and State sponsored spaceports; 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 7 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 certification of the safety of launch 
vehicles, reentry vehicles, safety systems, procedures, 
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] additive costs only 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) acquiring launch property by sale or 
        transaction instead of sale is the fair market value;
            (B) acquiring launch property (except by sale or 
        transaction instead of sale) is an amount equal to the 
        direct costs, including specific wear and tear and 
        property damage, the Government incurred because of 
        acquisition of the property; and
            (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, reentry, or 
site operator 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) 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, reentry, or 
site operator 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, reentry, or site operator 
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

    The Secretary of Transportation, within 6 months after the 
date of the enactment of this section, shall issue regulations 
to carry out this chapter that include--
            (1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third 
        parties;
            (2) procedures for requesting and obtaining 
        licenses to operate a commercial launch vehicle or 
        reentry vehicle;
            (3) procedures for requesting and obtaining 
        operator licenses for launch or reentry;
            (4) procedures for requesting and obtaining launch 
        site or reentry site operator licenses; and
            (5) procedures for the application of government 
        indemnification.

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) * * *
    (b) Management Plan.--The Administrator, the Secretary of 
Defense, and any other United States Government official the 
President designates as responsible for part of the Landsat 
program, shall establish, through a management plan, the roles, 
responsibilities, and funding expectations for the Landsat 
Program of the appropriate United States Government agencies. 
The management plan shall--
            (1) * * *
          * * * * * * *
            (4) provide for a technology demonstration program 
        whose objective shall be the demonstration of advanced 
        land remote sensing technologies that may potentially 
        yield a system which is less expensive to build and 
        operate, and more responsive to data users, than is the 
        current Landsat system.
The Director of the Office of Science and Technology Policy 
shall, no later than 60 days after the date of the enactment of 
the Space Commercialization Promotion Act of 1996, transmit the 
management plan to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.
    (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] (1) Except as 
provided in paragraph (3), no license shall be granted by the 
Secretary unless the Secretary determines in writing that the 
applicant will comply 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 Space Commercialization Promotion Act of 1996, 
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.
    (3) The Secretary shall grant a license under this title to 
any United States commercial provider (as such term is defined 
in section 2 of the Space Commercialization Promotion Act of 
1996) whose application is in full compliance with the 
requirements of this title.
    (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 terminate, modify, or suspend a license 
issued pursuant to this title on the basis of an 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 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.
            (3) [provide penalties] seek, in a United States 
        District Court with personal jurisdiction over the 
        licensee, penalties for noncompliance with the 
        requirements of licenses or regulations issued under 
        this title, including civil penalties not to exceed 
        $10,000 (each day of operation in violation of such 
        licenses or regulations constituting a separate 
        violation);
    (b) Review of Agency Action.--Any applicant or licensee who 
makes a timely request for review of an adverse action pursuant 
to subsection (a)(1), [(a)(3),] (a)(5), or (a)(6) shall be 
entitled to adjudication by the Secretary on the record after 
an opportunity for any agency hearing with respect to such 
adverse action. Any final action by the Secretary under this 
subsection shall be subject to judicial review under chapter 7 
of title 5, United States Code.

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 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 
commercial sector, unless such activities would result in 
significant cost savings to the Federal Government.

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. 506. RADIO FREQUENCY ALLOCATION.

    (a) Application to Federal Communications Commission.--(1) 
To the extent required by the Communications Act of 1934 (47 
U.S.C. 151 et seq.), an application shall be filed with the 
Federal Communications Commission for any radio facilities 
involved with commercial remote sensing space systems licensed 
under title II.
    (2) The Federal Communications Commission, within 6 months 
after the date of the enactment of the Space Commercialization 
Promotion Act of 1996, shall publish in the Federal Register a 
complete and specific list of all information required to 
comprise a complete application described in paragraph (1). 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 Federal 
Communications Commission has, within 30 days after receipt of 
an application, notified the applicant of information necessary 
to complete an application, the Federal Communications 
Commission may not deny the application on the basis of the 
absence of any such information.
          * * * * * * *
    (e) Fees.--The Federal Communications Commission shall 
ensure that any licensing or other fees that a private remote 
sensing space system operator subject to the licensing 
requirements of title II is required to pay such Commission 
shall be proportional to the cost to the Commission of the 
radio licensing process for such person relative to the cost to 
the Commission of licensing other entities subject to the fee.

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 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 promptly of such conditions. Not later 
than 60 days after receiving a request from the Secretary, the 
Secretary of Defense shall recommend to the Secretary any 
conditions for a license issued under title II, consistent with 
this Act, that the Secretary of Defense determines are needed 
to protect the national security of the United States. If no 
such recommendation 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 this Act 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 60 days after receiving a request 
from the Secretary, the Secretary of State shall recommend to 
the Secretary any conditions for a license issued under title 
II, consistent with this Act, that the Secretary of State 
determines are needed to meet international obligations of the 
United States. If no such recommendation 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 and policies 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 United States 
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)] (3) 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.]

                     XIV. Committee Recommendations

    On September 11, 1996, a quorum being present, the 
Committee favorably reported H.R. 3936, the Space 
Commercialization Promotion Act of 1996, by voice vote, and 
recommends its enactment.
                XV. Proceedings of Full Committee Markup



 FULL COMMITTEE MARKUP ON THE SPACE COMMERCIALIZATION PROMOTION ACT OF 
                                  1996

                              ----------                              


                     WEDNESDAY, SEPTEMBER 11, 1996

             U.S. House of Representatives,
                              Committee on Science,
                                                    Washington, DC.
    The committee met at 12:05 p.m. in Room 2318 of the Rayburn 
House Office Building, the Honorable Robert F. Walker, chairman 
of the committee, presiding.
    The Chairman. The Committee will be in order. We are 
meeting this afternoon pursuant to notice. The Committee on 
Science is to consider the following measure: H.R. 3936, The 
Space Commercialization Promotion Act of 1996.
    I would begin by asking unanimous consent for the authority 
to recess. Is there objection?
    [No response]
    The Chairman. Hearing none, then I will proceed to a few 
opening comments here about the nature of the bill that we are 
undertaking.
    This Committee's work to promote commercial space 
development does not always generate as much interest as the 
oversight of NASA, but it's one of the most important and 
exciting things that we do. It's important because America does 
not revolve around Washington. It does not revolve around only 
those things that government does; it revolves around what the 
American people do on their own, without a bureaucrat in 
Washington watching over their shoulders.
    That is what commercial space development is all about. 
It's about American citizens taking their money, taking their 
risks, and taking their reputations to build a better future by 
using space.
    NASA may carry our hopes into space, but it's still a 
government program that lives or dies by the federal budget 
decisions. Commercial space may not carry all of our hopes into 
space, but will carry our entrepreneurs, our technology, and 
our future.
    Commercial space is what they do outside the Beltway, and 
that's the future that we're going to be discussing in the bill 
today. So, how do we pass a bill in Washington and deem it to 
be a promotion of commercial space development? We all feel a 
little nervous sometimes when we hear the phrase, ``Hi, I'm 
from the government; I'm here to help you,'' but that's where 
this bill comes in.
    It does not tell entrepreneurs and aerospace workers that 
Washington knows how to run their business and make commercial 
spacecraft better than they do. Instead, it tells them that we 
want them to succeed and we're not going to get in their way. 
We're going to provide a stable business environment that they 
need to invest their money, build commercial space businesses, 
offer new and better services to the American people, and 
employ more Americans in high-skilled jobs.
    I'll admit that this bill does not have everything in it 
that I would like to see in it. And it does not have everything 
that I think is necessarily needed for the United States to 
fully realize the potential that space holds for our future.
    We don't have X prizes, which were used so effectively to 
open up commercial aviation. We don't have the legal authority 
to govern property rights in space, or a mechanism that forces 
NASA to use market forces to expand the space frontier.
    But that's okay, because we're building a foundation one 
step at a time. The futuristic ideas that I mentioned will see 
their day, but it will come later, after the solid foundation 
that this bill has laid.
    So what steps do we take today? The bill that we have 
before us amends the Commercial Space Launch Act to take into 
account the legal and technical advances which have occurred 
since then. It gives the Department of Transportation the 
responsibility and authority to license re-entry from orbit 
because some companies envision returning their commercially 
developed experiments to earth, and the reusable launch vehicle 
is a few years off.
    The bill updates the Launch Services Purchase Act of 1990, 
so that the government will act more like a commercial buyer 
when it seeks to place payloads into space. And we make some 
changes in the Land Remote Sensing Policy Act of 1992. That was 
a landmark piece of legislation that opened up the possibility 
for an entire industry to get off the ground and image the 
Earth from space. Credit must certainly be given to the 
gentleman from California, Mr. Brown, without whom that 
legislation might never have been passed.
    This bill updates the Act to take into account the 
experience we've gained over the last few years in licensing 
operators of remote sensing satellites. The bill also 
eliminates some of the post-employment restrictions that could 
prevent NASA civil servants who work on the Space Shuttle from 
transferring to the Shuttles single prime contractor.
    Making that contract successful goes a long way toward 
reducing and achieving the Administration's goals for 
downsizing the agency. It is our responsibility to make that 
transition as easy on the NASA Shuttle work force as we can, 
out of respect for them and the excellent work they do to 
ensure that the Shuttle flies safely.
    I want to thank the gentleman from Wisconsin, Mr. 
Sensenbrenner; the gentleman from Florida, Mr. Weldon; and the 
gentleman from Texas, Mr. Hall, for digging into this issue 
during the Subcommittee's hearing on the bill, and their 
efforts in seeing that this provision is incorporated in the 
legislative process.
    Finally, we encourage NASA to purchase their scientific 
data about Earth and solar systems from the private sector, 
when they are as bold as to be providing it so that NASA can 
get it.
    I'd like to express my appreciation to the Chairman and 
Ranking Member of the Space and Aeronautics Subcommittee, Jim 
Sensenbrenner and Ralph Hall, for discharging this bill to the 
Full Committee. The 104th Congress, as we all know, is rapidly 
drawing to a close, and there's little time left to accomplish 
our objectives.
    Mr. Brown and I have worked closely on a Manager's 
Amendment to this bill, which we will consider this afternoon. 
I think this amendment addresses the concerns that he raised, 
and that we were unable to address in time for the introduction 
of the original draft. I'm happy to offer that Manager's 
Amendment with him, and I hope the Committee will pass it 
unanimously.
    I look forward to working with Mr. Brown to continue moving 
this bill forward on a bipartisan basis. We still have some 
remaining issues to work out with the Government Reform and 
Oversight Committee on conforming this bill to the current 
procurement law, but I understand that the staff discussions 
are going very well, and I hope to see a rapid resolution.
    There are some here today, and maybe even some here on the 
rostrum and some on the audience, who don't believe that this 
bill can be sent to the President for his signature before the 
end of this legislative session. They may be right, and it's 
certainly a long shot, but it's not at all impossible.
    I'm here to tell you that I'm going to try, and I think, 
based upon the discussions that we've been having with the 
Senate, we have a very good chance that several of the 
provisions of this bill will end up being sent to the President 
for his signature. With the help of the members of this 
Committee, and perhaps some who are working from the outside 
with us, I think we can find sponsors in the Senate and get 
this bill down to the White House.
    We've heard so many times before that I can't resist 
repeating the phrase, if they can put a man on the moon, then 
we ought to be able to pass a straightforward piece of 
legislation in Congress and send it to the President before the 
end of the session this month.
    With that, I would turn to Mr. Brown for any opening 
remarks he might have.
    [The text of H.R. 3936 follows:]








104th CONGRESS
  2d Session
                                H. R. 3936

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 1996

Mr. Walker (for himself, Mr. Sensenbrenner, Mr. Largent, Mr. Weldon of 
 Florida, Mr. Rohrabacher, Mr. Hilleary, Mr. Stockman, Mr. Davis, Mr. 
   Calvert, Mr. Baker of California, Mrs. Seastrand, and Mr. Tiahrt) 
 introduced the following bill; which was referred to the Committee on 
  Science, and in addition to the Committee on Government Reform and 
 Oversight, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Space 
Commercialization Promotion Act of 1996''.
    (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. Exceptions to employment restrictions.
Sec. 104. Benefits for certain employees transferring from NASA.
Sec. 105. Promotion of United States Global Positioning System 
                            standards.
Sec. 106. Purchase of space science data.
                        TITLE II--REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth remote sensing 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. 304. Use of excess intercontinental ballistic missiles.

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;
            (8) the term ``streamlining activities'' means management 
        reforms which are designed to increase efficiencies in 
        operations and personnel, principally through consolidation of 
agency activities and migration of such efforts to the private sector; 
and
            (9) 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 
the use of free market principles in operating, 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) Report.--The Administrator shall deliver to the Congress, 
within 60 days after the date of the enactment of this Act, a market 
study that examines the role of commercial ventures which could supply, 
use, service, or augment the International Space Station, the specific 
policies and initiatives the Administrator is advancing to encourage 
these commercial opportunities, the cost savings to be realized by the 
international partnership from applying commercial approaches to cost-
shared operations, and the cost reimbursements to the United States 
Government from commercial users of the Space Station.

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.
``70122. State authority to license commercial spaceports.''.
            (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) by striking ``and any payload'' and inserting 
                in lieu thereof ``or reentry vehicle and any payload 
                from Earth'' in paragraph (3);
                    (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) through (12) 
                as paragraphs (14) through (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--
                    (A) by striking ``The Secretary'' in subsection (a) 
                and inserting in lieu thereof ``Except as provided in 
                section 70122, the Secretary''; and
                    (B) in subsection (b)--
                            (i) by inserting ``and Reentries and State 
                        Sponsored Spaceports'' after ``Launches'' in 
                        the subsection heading;
                            (ii) by striking ``by the private sector'' 
                        in paragraph (1) and inserting in lieu thereof 
                        ``and reentries by the private sector and State 
                        sponsored spaceports'' after ``space 
                        launches''; and
                            (iii) 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 inserting at the end of subsection (a) the 
                following: ``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 7 days after any occurrence when a license is not 
                issued within the deadline established by this 
                subsection.'';
                    (D) by adding at the end of subsection (a) the 
                following new paragraph:
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for certification of the safety of launch vehicles, reentry 
vehicles, safety systems, procedures, services, or personnel that may 
be used in conducting licensed commercial space launch or reentry 
activities.'';
                    (E) by inserting ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1);
                    (F) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
                    (G) by striking ``and'' at the end of subsection 
                (b)(2)(B);
                    (H) by striking the period at the end of subsection 
                (b)(2)(C) and inserting in lieu thereof ``; and'';
                    (I) 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
                    (J) 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) in subsection (a)(1), by inserting after 
                subparagraph (B) the following:
``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.'';
                    (D) by inserting ``or reentry services'' after ``or 
                launch services'' in subsection (a)(2);
                    (E) by striking ``actual costs'' in subsection 
                (b)(1) and inserting in lieu thereof ``additive costs 
                only'';
                    (F) by inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (G) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (H) 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.'';
                    (I) 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
                    (J) 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, 
                reentry, or site operator'' 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, 
                reentry, or site operator'' 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, 
                reentry, or site operator'' 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
    ``The Secretary of Transportation, within 6 months after the date 
of the enactment of this section, shall issue regulations to carry out 
this chapter that include--
            ``(1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        operate a commercial launch vehicle or reentry vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch or reentry; and
            ``(4) procedures for the application of government 
        indemnification.
``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.
``Sec. 70122. State authority to license commercial spaceports
    ``(a) State Authority.--If the Secretary of Transportation has not 
issued final regulations governing the application for and granting of 
Federal licenses for the operation of a launch site under this chapter, 
a State government may carry out this chapter, exercising the authority 
of the Secretary regarding the licensing and monitoring of launch sites 
within the territory of that State.
    ``(b) Federal Consultation.--A State may not issue a license to 
operate a launch site under subsection (a) unless--
            ``(1) the Secretary has notified the State that the 
        proposed license does not jeopardize the public health and 
        safety, safety of property, or national security or foreign 
        policy interests of the United States; or
            ``(2) 90 days have passed after the State has requested the 
        Secretary to make a determination under paragraph (1), and the 
        Secretary has not responded.
    ``(c) Effect of State License.--The Secretary shall treat a launch 
site licensed by a State under subsection (a) as having complied with 
all Federal requirements regarding the licensing and operation of a 
launch site.
    ``(d) Cessation of State Authority.--The authority of a State to 
issue a license under subsection (a) shall cease upon the issuance of 
Federal regulations governing the application for and granting of 
Federal licenses for the operation of a launch site.''.
    (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)(I).

SEC. 103. EXCEPTIONS TO EMPLOYMENT RESTRICTIONS.

    (a) General Rule.--Section 207(a) and (c) of title 18, United 
States Code, and section 27(f)(1) of the Federal Procurement Policy Act 
(41 U.S.C. 423(f)(1)) shall not apply to employees or former employees 
of the National Aeronautics and Space Administration seeking employment 
with an entity that is awarded a single prime contract for the Space 
Shuttle or with an organization receiving an award as a result of 
National Aeronautics and Space Administration streamlining activities.
    (b) Exceptions.--Subsection (a) shall not apply to an employee who, 
while employed with the National Aeronautics and Space Administration, 
served in a position of authority with respect to the selection of the 
organization with which the employee seeks employment for an award.

SEC. 104. BENEFITS FOR CERTAIN EMPLOYEES TRANSFERRING FROM NASA.

    (a) Election.--Any employee of the National Aeronautics and Space 
Administration who accepts employment with a qualified employer within 
one year after the award which resulted in the employer becoming a 
qualified employer, and who is subject to either CSRS or FERS, shall 
elect to--
            (1) retain their coverage under either CSRS or FERS, as 
        applicable, in lieu of coverage by the qualified employer's 
        retirement system; or
            (2) receive a deferred annuity or lump-sum benefit payable 
        to a terminated employee under CSRS or FERS, as applicable.
Those employees electing under paragraph (2) shall have the option to 
transfer the balance in their Thrift Savings Plan account to a defined 
contribution plan under the qualified employer's retirement system, 
consistent with applicable law and the terms of the qualified 
employer's defined contribution plan.
    (b) Retirement and Disability Payments.--A qualified employer shall 
transfer to the Civil Service Retirement and Disability Fund--
            (1) such employee deductions and agency contributions as 
        are required by sections 8334, 8422, and 8423 of title 5, 
        United States Code, for those employees who elect to retain 
        their coverage under either CSRS or FERS pursuant to subsection 
        (a)(1);
            (2) such additional agency contributions as are determined 
        necessary by the Office of Personnel Management to pay, in 
        combination with the sums under paragraph (1), the ``normal 
        cost'' (determined using dynamic assumptions) of retirement 
        benefits for those employees who elect to retain their coverage 
        under CSRS or FERS pursuant to subsection (a)(1), with the 
        concept of ``normal cost'' being used consistent with generally 
        accepted actuarial standards and principles; and
            (3) such additional amounts, not to exceed 2 percent of the 
        aggregate of amounts under paragraphs (1) and (2), as are 
        determined necessary by the Office of Personnel Management to 
        pay the cost of administering retirement benefits for employees 
        who retire from the qualified employer under either CSRS or 
        FERS, for their survivors, and for survivors of employees of 
        the qualified employer who die after the award to the qualified 
        employer (which amounts shall be available to the Office of 
        Personnel Management as provided in section 8348(a)(1)(B) of 
        title 5, United States Code).
    (c) Thrift Savings Fund Payments.--A qualified employer shall 
transfer to the Thrift Savings Fund such employee and agency 
contributions as are required or authorized by sections 8432 and 8351 
of title 5, United States Code, for those employees who elect to retain 
their coverage under CSRS or FERS pursuant to subsection (a)(1).
    (d) Health Benefits.--For those National Aeronautics and Space 
Administration employees who accept employment with a qualified 
employer and who were subject at the time of acceptance of that 
employment to FEHBP as Federal employees and who elect to retain their 
coverage under either CSRS or FERS pursuant to subsection (a)(1), it 
shall be their option as to whether to receive health benefits from a 
health benefit plan established by the qualified employer or to 
continue without interruption their coverage under the FEHBP, in lieu 
of coverage by the qualified employer's health benefit system.
    (e) Health Benefits Payments.--A qualified employer shall transfer 
to the Employees Health Benefits Fund--
            (1) such employee deductions and agency contributions as 
        are required by section 8906(a) through (f) of title 5, United 
        States Code, for those employees who elect to retain their 
        coverage under FEHBP pursuant to subsection (d); and
            (2) such amounts as are determined necessary by the Office 
        of Personnel Management under subsection (f) to reimburse the 
        Office of Personnel Management for contributions under section 
        8906(g)(1) of title 5, United States Code, for those employees 
        who elect to retain their coverage under FEHBP pursuant to 
        subsection (d).
    (f) Government Contributions.--The amounts required under 
subsection (e)(2) shall pay the Government contributions for retired 
employees who retire from the qualified employer under either CSRS or 
FERS, for survivors of such retired employees, and for survivors of 
employees of the qualified employer, with said amounts prorated to 
reflect only that portion of the total service of such employees and 
retired persons that was performed as an employee of the qualified 
employer.
    (g) Definitions.--For purposes of this section, the term 
``qualified employer'' means an organization which operates the 
consolidated Space Shuttle operations contract, and any other 
organization identified by the Administrator as acting in furtherance 
of streamlining activities.

SEC. 105. 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.--The Congress therefore encourages 
the President to--
            (1) undertake a coordinated effort within the executive 
        branch to promote cooperation with foreign governments and 
        international organizations to advance United States interests 
        with respect to the Global Positioning System standards and 
        augmentations; and
            (2) ensure the operation of the Global Positioning System 
        on a continuous worldwide basis free of direct user fees.

SEC. 106. PURCHASE OF SPACE SCIENCE DATA.

    (a) In General.--To the maximum extent possible, while fully 
satisfying the National Aeronautics and Space Administration's 
scientific requirements, the National Aeronautics and Space 
Administration shall, where cost effective, purchase from the United 
States private sector space science data. Examples of such data include 
scientific data concerning the elemental and mineralogical resources of 
the moon and the planets, Earth environmental data obtained through 
remote sensing observations, and solar storm monitoring.
    (b) Competitive Bidding.--(1) Contracts for the purchase of space 
science data under this section shall be awarded in a process of full, 
fair, and open competitive bidding.
    (2) Submission of cost data, either for the purposes of supporting 
the bid or fulfilling the contract, shall not be required of bidders or 
awardees of the contract.
    (3) Reasonable performance specifications, rather than design or 
construction specifications, shall be used to the maximum extent 
feasible to define requirements for United States commercial providers 
with respect to the design, construction, or operation of equipment 
used in obtaining space science data under contracts entered into under 
this section. This subsection shall not be construed to prohibit the 
Federal Government from requiring compliance with applicable safety 
standards.
    (4) Contracts under this section shall not provide for the Federal 
Government to obtain ownership of data not specifically sought by the 
Federal Government.

                        TITLE II--REMOTE SENSING

SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992 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) by inserting the following after subsection 
                (b)(4):
``The Director of the Office of Science and Technology Policy shall, no 
later than 60 days after the date of the enactment of the Space 
Commercialization Promotion Act of 1996, transmit the management plan 
to the Committee on Science of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate.'';
                    (B) 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
                    (C) 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 designated by 
                subparagraph (A) of this paragraph, by striking ``No 
                license'' and inserting in lieu thereof ``Except as 
                provided in paragraph (3), no license'';
                    (C) by adding at the end of subsection (b) the 
                following new paragraphs:
    ``(2) The Secretary, within 6 months after the date of the 
enactment of the Space Commercialization Promotion Act of 1996, 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.
    ``(3) The Secretary shall grant a license under this title to any 
United States commercial provider (as such term is defined in section 2 
of the Space Commercialization Promotion Act of 1996) whose application 
indicates full compliance with the requirements of this title.'';
                    (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 and at 
                prevailing market prices'';
                    (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 terminate, modify, or suspend a license issued 
pursuant to this title on the basis of an 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 (15 U.S.C. 5623)--
                    (A) in subsection (a)(2), by striking ``under this 
                title and'' and inserting in lieu thereof ``under this 
                title or'';
                    (B) in subsection (a)(3), by striking ``provide 
                penalties'' and inserting in lieu thereof ``seek, in a 
                United States District Court with personal jurisdiction 
                over the licensee, penalties''; and
                    (C) in subsection (b), by striking ``(a)(3),'';
            (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 inserting 
        ``commercial'' after ``Secretary before commencing'';
            (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 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 commercial sector.'';
            (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'';
            (15) in section 506 (15 U.S.C. 5656)--
                    (A) by inserting ``(1)'' after ``Communications 
                Commission.--'' in subsection (a);
                    (B) by inserting at the end of subsection (a) the 
                following new paragraph:
    ``(2) The Federal Communications Commission, within 6 months after 
the date of the enactment of the Space Commercialization Promotion Act 
of 1996, shall publish in the Federal Register a complete and specific 
list of all information required to comprise a complete application 
described in paragraph (1). 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 Federal Communications 
Commission has, within 30 days after receipt of an application, 
notified the applicant of information necessary to complete an 
application, the Federal Communications Commission may not deny the 
application on the basis of the absence of any such information.''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(e) Fees.--The Federal Communications Commission shall ensure 
that any licensing or other fees that a private remote sensing space 
system operator subject to the licensing requirements of title II is 
required to pay such Commission shall be proportional to the cost to 
the Commission of the radio licensing process for such person relative 
to the cost to the Commission of licensing other entities subject to 
the fee. In no event shall such a fee be required in an amount greater 
than $5,000 per ground station.''; and
            (16) 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 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 promptly of such conditions. Not later than 
60 days after receiving a request from the Secretary, the Secretary of 
Defense shall recommend to the Secretary any conditions for a license 
issued under title II, consistent with this Act, that the Secretary of 
Defense determines are needed to protect the national security of the 
United States. The Secretary of Defense shall concurrently transmit 
such recommendation to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate. If no such recommendation 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 this Act 
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 60 days after receiving a request from the 
Secretary, the Secretary of State shall recommend to the Secretary any 
conditions for a license issued under title II, consistent with this 
Act, that the Secretary of State determines are needed to meet 
international obligations of the United States. The Secretary of State 
shall concurrently transmit such recommendation to the Committee on 
Science of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate. If no such recommendation 
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 and policies 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 United States 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 REMOTE SENSING DATA.

    (a) Acquisition.--To the maximum extent possible, while fully 
satisfying the National Aeronautics and Space Administration's 
scientific requirements, the Administrator shall, where cost effective, 
acquire space-based and airborne Earth remote sensing data, services, 
distribution, and applications provided by the United States private 
sector to meet Government goals for Mission to Planet Earth.
    (b) 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 the private sector, and how the 
National Aeronautics and Space Administration will meet such 
requirements which cannot be met by the private sector.
    (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 the private sector to enable the private 
        sector to better meet the baseline scientific requirements of 
        Mission to Planet Earth;
            (B) make recommendations to promote the dissemination to 
        the private sector 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.
    (c) Administration.--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.--(1) 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 Defense, determines that--
            (A) a payload requires the unique capabilities of the space 
        shuttle;
            (B) space transportation services that meet specific 
        mission requirements would not be reasonably available from 
        United States commercial providers when required;
            (C) the use of space transportation services from United 
        States commercial providers poses an unacceptable risk of loss 
        of a unique scientific opportunity;
            (D) the use of space transportation services from United 
        States commercial providers poses an unacceptable risk to 
        national security objectives; or
            (E) 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.
    (2) Determinations under paragraph (1) shall be made by the 
Administrator or the Secretary of Defense, and shall not be delegated. 
Each such determination shall be reported in writing to the Committee 
on Science and other appropriate committees of the House of 
Representatives, and to the Committee on Commerce, Science, and 
Transportation and other appropriate committees of the Senate, at least 
120 days before the acquisition or provision of space transportation 
services from or by a source other than United States commercial 
providers.
    (c) Partnerships.--The acquisition of space transportation services 
in connection with a payload with respect to which the Federal 
Government has provided a greater amount of the funding required for 
construction and operation than any other source, shall be subject to 
the requirements of this section.
    (d) Delayed Effect.--Subsections (a) and (c) 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.
    (e) 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) Competitive Bidding.--(1) Contracts for the acquisition of 
space transportation services by the Federal Government shall be 
awarded subject to applicable Federal law requiring full, fair, and 
open competition, including section 2304 of title 10, United States 
Code, and section 311 of the National Aeronautics and Space Act of 1958 
(42 U.S.C. 2459c).
    (2) Bidders for a contract for the acquisition by the Federal 
Government of space transportation services shall not be required to 
provide cost data for the purpose of supporting such a bid or 
fulfilling such a contract, except in cases where only one credible bid 
meeting the requirements of the solicitation is received.
    (b) Specification Systems.--Reasonable performance specifications, 
rather than design or construction specifications, shall be used to the 
maximum extent feasible to define requirements for United States 
commercial providers bidding to provide or providing space 
transportation services to the Federal Government. This subsection 
shall not be construed to prohibit the Federal Government from 
requiring compliance with applicable safety standards.

SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

    The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.) 
is amended--
            (1) by striking section 202;
            (2) in section 203--
                    (A) by striking paragraphs (1) and (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively;
            (3) by striking sections 204 and 205; and
            (4) in section 206--
                    (A) by striking ``(a) Commercial Payloads on the 
                Space Shuttle.--''; and
                    (B) by striking subsection (b).

SEC. 304. USE OF EXCESS INTERCONTINENTAL BALLISTIC MISSILES.

    (a) In General.--The Federal Government shall not--
            (1) convert any missile described in subsection (d) to a 
        space transportation vehicle configuration or otherwise use any 
        such missile to place a payload in space; or
            (2) transfer ownership of any such missile to another 
        person,
except as provided in subsection (b) or (c).
    (b) Authorized Federal Uses.--(1) A missile described in subsection 
(d) may be converted for use as a space transportation vehicle by the 
Federal Government if--
            (A) except as provided in paragraph (2), at least 120 days 
        before such conversion the agency seeking to use the missile as 
        a space transportation vehicle transmits to the Committee on 
        National Security and the Committee on Science of the House of 
        Representatives, and to the Committee on Armed Services and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate, a report that contains--
                    (i) a certification that the use of such missile--
                            (I) would result in significant cost 
                        savings to the Federal Government when compared 
                        to the cost of acquiring space transportation 
                        services from United States commercial 
                        providers; and
                            (II) meets all mission requirements of the 
                        agency, including performance, schedule, and 
                        risk requirements; and
                    (ii) comments obtained from United States 
                commercial providers in response to prior public notice 
                published in the Commerce Business Daily;
            (B) the use of such missile is consistent with 
        international obligations of the United States; and
            (C) the Secretary of Defense approves of such conversion.
    (2) The requirement under paragraph (1)(A) that the report 
described in that subparagraph must be transmitted at least 120 days 
before conversion of the missile shall not apply if the Secretary of 
Defense determines that compliance with that requirement would be 
inconsistent with meeting immediate national security requirements.
    (c) Authorized Educational Uses.--(1) A missile described in 
subsection (d) may be made available for launching a payload owned and 
operated by an institution of higher education for research or 
education purposes if--
            (A) the payload has no functions that will compete with 
        commercial applications available from United States commercial 
        providers;
            (B) the cost of converting and using the missile for such 
        purpose is less than 50 percent of the price United States 
        commercial providers would charge for such purpose;
            (C) the institution of higher education will pay the costs 
        of such conversion and launch;
            (D) such conversion and launch will be conducted by the 
        institution of higher education or a United States commercial 
        provider; and
            (E) the Secretary of Defense approves of such conversion 
        and use.
    (2) For purposes of this subsection, the term ``institution of 
higher education'' has the meaning given such term in section 1201(a) 
of the Higher Education Act of 1965.
    (d) Missiles Referred to.--The missiles referred to in this section 
are missiles owned by the United States that were formerly used by the 
Department of Defense for national defense purposes as intercontinental 
ballistic missiles and that have been retired from service in 
compliance with international obligations of the United States.
                                 
    Mr. Brown. Thank you very much, Mr. Chairman. I will make a 
few brief remarks.
    As many of you know, the promotion of a vital and robust 
commercial space sector has long been a bipartisan objective of 
the Science Committee. The Chair knows that we've worked 
together on trying to accomplish this over most of the last two 
decades. Members, over the years, have shared the belief that 
we can now begin to capitalize on our past federal investments 
in the space programs, and look to the private sector to play 
an increasingly important role. Commercial space activities 
offer the potential to make a significant contribution to the 
nation's economic health. One need only look at the 
multibillion satellite communication industry for a validation 
of that belief.
    From the first limited experiments in communicating by 
satellite that occurred at the dawn of the space age, we have 
reached the point at which communication satellites are an 
integral element of the world's telecommunication 
infrastructure. The future looks equally exciting, with the 
prospect of communication satellite constellations offering the 
promise of the ability to communicate from anywhere to anywhere 
in the world.
    We can take pride in the fact that as a result of wise 
policy decisions in the 1960s, American companies have achieved 
a position of dominance in the fast-growing satellite 
communication market. Now, another space-related industry--
commercial remote sensing--seems poised for a similar explosion 
of activity, in part due to policies enacted by this Committee 
in the 1980s and early 1990s.
    I believe that the legislation before us today, while 
relatively modest in scope, will continue the bipartisan effort 
to help ensure the health and growth of the nation's commercial 
space sector. It updates several provisions of the Land Remote 
Sensing Act of 1992, and the Commercial Space Launch Act. It 
also codifies Administration policies on the Global Positioning 
System, and on the use of excess ballistic missile assets.
    Chairman Walker and I will offer a joint amendment to H.R. 
3936 that is intended to fix some minor problems with the 
legislation as introduced. One area of concern not addressed in 
the joint amendment is the need to ensure that sufficient cost 
data are available to the Government to evaluate potential data 
purchase agreement. It's my understanding that this issue will 
be resolved as part of our discussions with the Government 
Reform Committee on conforming the bill's provisions to those 
of existing law. Once the Committees have reached final 
agreement on H.R. 3936, I believe that the resulting 
legislation will represent a constructive step in Congress's 
continuing efforts to nurture this still-evolving sector of our 
economy. And that concludes my remarks.
    The Chairman. Thank you, Mr. Brown. Mr. Sensenbrenner, any 
kind of opening statement?
    Mr. Sensenbrenner. Mr. Chairman, in the interest of saving 
time, I'm going to ask unanimous consent that my opening 
statement appear in full in this part of the record.
    The Chairman. Without objection.
    Mr. Sensenbrenner. I will just state that both Mr. Hall and 
I have sent a letter to the Chairman, asking that this bill be 
discharged from our Subcommittee, so that we can consider it 
today, because we do think it's important to try to get it 
passed before we adjourn. I believe we both think that it is 
not an impossibility.
    With that, I'll yield back the balance of my time.
    The Chairman. Thank you, Mr. Sensenbrenner. Mr. Hall, an 
opening statement?
    Mr. Hall. In the interest of time, I waive my opening 
statement, and I'll have the statement put in the record.
    [The opening statements of Mr. Sensenbrenner and Mr. Hall 
follow:]
                            Opening Remarks
               The Honorable F. James Sensenbrenner, Jr.
            Chairman, Subcommittee on Space and Aeronautics
                            Markup: H.R 3936
                           September 11, 1996
    Earlier this week, the gentleman from Texas and I sent the Chairman 
a letter discharging H.R. 3936, the Space Commercialization Promotion 
Act of 1996, from the Subcommittee on Space and Aeronautics to the 
Committee on Science for markup. We discharged the bill for two 
reasons. First, we do not have much time left in the legislative year 
and wanted to move this bill forward quickly. Second, members from both 
sides of the aisle have had months to consider the various provisions 
of this bill in draft form, and we've been working well together to 
resolve any outstanding issues in the manager's amendment. We've been 
able to do that because I think that we all agree commercial space 
development is important to our nation's future in space.
    In 1994, commercial space activity generated some $6.3 billion in 
revenues. Last year, that figure reached nearly $7.5 billion. This is a 
growing industry which proves that American competitiveness flourishes 
when government gives entrepreneurs the chance to create business, 
employ people, and make a better product.
    For most of the space age, federally researched and developed 
technology was more advanced than anything that existed in the private 
sector. In many ways, NASA and the Defense Department drove our space 
capabilities and defined the limits of the possible. We talked about 
spin-offs as the main economic benefit of our national space program. 
If the government couldn't accomplish something in space; many thought 
it couldn't be done. For about the last ten years, there has been a 
subtle, but significant reversal of roles in the development of new 
technology.
    Now, it has become apparent that in many sectors of the economy, 
the private sector creates, applies, and integrates new technology 
faster than the government. Today, we talk about spin-ons instead of 
spin-offs. This development has several advantages. It means that the 
government can acquire new technologies at a much lower cost, because 
federal laboratories don't have to invent them from scratch. It means 
that we can focus our federal research and development dollars on those 
things that the private sector can't or won't create. This is part of 
the reason that the development of a healthy commercial space industry 
is so important to our future. Not only does this industry provide jobs 
and promote economic growth, it can also create new space capabilities 
that will help the government lower its costs and focus more narrowly 
on those things that governments do best in space: exploring the solar 
system, studying the universe, and understanding our environment.
    So, I hope that we can pass this bill quickly and remain committed 
to it until the President signs it into law. This is something that I 
think we all agree is in the best interest of this nation and our 
future in space.
                                 ______
                                 
                           OPENING STATEMENT
                                   by
                           HON. RALPH M. HALL
                          Markup of H.R. 3936
                           September 11, 1996
    Good afternoon. In the interests of proceeding to the business at 
hand, I will limit myself to a few brief remarks. As I noted at our 
recent hearing on H.R. 3936, Members on both sides of the aisle share 
an interest in doing what we can to help develop a healthy commercial 
space sector.
    It is a fact that government and the private sector have worked 
together in the past to help make the United States a world leader in 
aviation, in satellite communications, and a number of other high 
technology areas. I believe that similar economic growth can occur in 
commercial remote sensing, commercial space launch services, and other 
space-related activities in the future if we adopt sensible policies to 
encourage those activities.
    At the same time, we have to ensure that the interests of the 
American taxpayer are protected in whatever policies we adopt. I am 
confident that today's markup can result in a bill that makes 
constructive improvements to existing legislation while recognizing the 
legitimate interests of both the government and the private sector.
    Finally, I would like to note that my agreement to discharge H.R. 
3936 from the Subcommittee without a markup does not mean that I don't 
believe that Subcommittee consideration of this legislation is 
important. Instead, I recognize that there are only a handful of 
legislative days left in which to markup this legislation, and I am 
willing to waive Subcommittee consideration to allow consideration by 
the Full Committee.
    Thank you.

    The Chairman. Thank you very much. I appreciate your 
cooperation in getting us to this point, as well. I would ask 
unanimous consent that all members be permitted to enter 
opening remarks into the record at this point, so that they can 
have their remarks appear as a part of the opening statements 
here.
    [The opening statements of Mr. Rohrabacher, Mr. Weldon and 
Mr. Stockman follow:]
  Mr. Rohrabacher's statement to Full Committee Mark-up of 1996 Space 
               Commercialization Promotion Act on 9/9/96
    Mr. Chairman, I want to take this opportunity to thank you, not 
just for sponsoring this excellent legislation, but for your long and 
tireless work to advance the commercialization of the space frontier. 
    This is another in a long line of Omnibus Space Commercialization 
bills that Mr. Walker has introduced over the years. Indeed, many of 
the ideas in those prior bills were passed into law under the 
leadership of Mr. Brown.
    While this Committee may have had its partisan differences, the 
managers' amendment makes this bill a fully bipartisan initiative which 
should easily pass the House and could pass the Senate before the end 
of this Congress. 
    To that end I would just like to ask all of my colleagues here, on 
both sides of the aisle, to contact their friends in the other body to 
request their support for a prompt, unanimous consent passage of this 
bill. That, followed by a Presidential signature, is the least that 
this last Bob Walker omnibus space commercialization bill deserves.
    In closing, let me just say to my friend and mentor from 
Pennsylvania that we will miss your energy, your wit, and your vision. 
And we will work hard to build on the legacy you have left us.
                                 ______
                                 
          Opening Statement of Congressman Dave Weldon (FL-15)
    I thank the Chairmen of the Subcommittee and the full Committee for 
bringing this bill before the full Committee today.
    This is legislation that other members of the Committee and I have 
been working on for more than a year. I believe it is important for 
ensuring and restoring the vitality of our commercial space sector. 
With increased competition from international competitors, this 
legislation will serve our commercial sector well.
    I have been very concerned for more than a year about the slow pace 
shown by the Office of Commercial Space Transportation (OCST) in 
issuing regulations for commercial spaceports. I am pleased that OCST 
seems to be moving forward, finally, and has had recent fruitful 
negotiations with the Florida Spaceport Authority. The Florida 
Spaceport Authority is just one year away from its first commercial 
launch and just this week received a firm commitment from Lockheed/
Martin for its October 9, 1997 launch. The Spaceport will begin 
processing for the launch on July 1, 1997.
    I am also pleased that the bill includes language I have asked for 
that will ensure that the National Aeronautics and Space Administration 
(NASA) is able to ensure that critical shuttle safety civil service 
employees are able to transfer over to the new single prime contractor 
for the Space Shuttle program. This language will ensure that critical 
civil service safety personnel are retained in the Space Shuttle 
program.
                                 ______
                                 
                           OPENING STATEMENT
                                   by
                          HON. STEVE STOCKMAN
                  Space Commercialization Act of 1996
                           September 11, 1996
    I am delighted to participate today in this mark-up of the Space 
Commercialization Promotion Act of 1996. I look forward to advancing 
this vitally important and timely legislation.
    With a few notable exceptions, the space endeavor to date has been 
a government activity. While NASA has done a tremendous job, many 
aspects of the space program naturally evolve to a point where they can 
be best accomplished by commercial entities. That time is now for a 
number of space activities.
    This evolution is in step with the current fiscal situation in our 
nation. For years NASA has courageously endured large cuts in funding. 
Though many of us argue that we have already cut more than enough, the 
reality of the budget morass will very likely keep NASA's funding 
constrained for several more years to come. Therefore the importance of 
growing commercial activities and entrepreneurship in space cannot be 
overemphasized.
    This legislation will attempt to advance the evolution already 
begun in the way that business is undertaken by the aerospace industry. 
Companies that are quickest to recognize these fundamental changes 
facing the industry will be tomorrow's big winners. Conversely, 
companies that continue to operate in the conventional mold will become 
marginalized or may not survive at all. Tomorrow's leaders in the 
industry will be those who will be willing to grasp the opportunities 
these changes represent and position themselves to capture the cutting 
edge of new commercial opportunities in all segments of the space 
endeavor.
    NASA has already received its wake-up call. NASA has agreed to re-
focus its energy to become the premier enabling research and 
development (R&D;) agency in government. To succeed in that task, NASA 
has committed itself to the purchasing of as many goods and services 
from the commercial sector as possible in fulfilling its mission. 
Companies that think ahead and act decisively will capture this 
evolving marketplace. But they will also do more, for through their 
actions they will continue and strengthen the routine commercialization 
of near Earth orbit. The goal of this important legislation is to help 
such bold entrepreneurs succeed. 

    Mr. Minge. Mr. Chairman, I have a question.
    The Chairman. The gentleman will state the question.
    Mr. Minge. I notice that there is a Section 201 and 202 of 
the bill that deals with remote sensing. We have had discussion 
and even a hearing in this Committee on global positioning 
satellites and the use of that technology in the private sector 
in this country. We had the CIA representative, DOD, and others 
here.
    Is there anyone who could explain whether or not this 
legislation actually advances one of the things we have talked 
about in the Committee, and that is, making that technology 
available in the private sector without the need for--without 
the scrambling of the signal which is currently being done?
    [Pause.]
    The Chairman. You're talking about Section 201, is that 
correct?
    Mr. Minge. 201 and 202, I notice, deal with remote sensing, 
and the GPS issue has been before the Committee. And I did not 
know if this bill----
    The Chairman. The GPS situation is that GPS is addressed in 
Section 105.
    Mr. Minge. Okay.
    The Chairman. There we are attempting to set standards that 
would reflect the American standard for GPS. Now, on remote 
sensing, that's a different topic, addressed, as you've pointed 
out correctly, in Section 201 and 202, I believe.
    Mr. Minge. I guess my question is, are we actually making 
the GPS system available to the private sector in an 
unscrambled version, so that its accuracy and utilization is 
not as expensive as it currently is for the private sector?
    The Chairman. Well, because--we think that that's what 
we're doing. You'll notice that one of the things that we are 
trying to do in terms of the international community, is on 
page 28. We're trying to ensure the operation of the Global 
Positioning System on a continuous, worldwide basis, free of 
direct user fees.
    Mr. Minge. It was the scrambling of the signal at the 
request of the CIA and the DOD.
    The Chairman. But we cannot address the scrambling of the 
signal issue, because that's a DOD issue, not one that we can 
address in this Committee. It's outside of our jurisdiction. 
That would have to be done as a part of the Defense Committee's 
or the National Security Committee's jurisdiction.
    We purposefully designed this bill--and former Chairman 
Brown describes it very well in suggesting that this is a 
fairly modest bill. But it's a fairly modest bill, in large 
part because we've kept it within the jurisdiction of this 
Committee.
    We've done everything that we think was in the jurisdiction 
of this Committee. We have some problems with the Government 
Reform Committee in trying to work out some procurement 
language. We've worked with them. We think that that's all 
going to be done. But we have tried to keep this bill centered 
upon the jurisdictional scope of this particular Committee.
    Mr. Minge. I'd like to simply make a statement for the 
record. I recognize that the Chairman is a strong advocate of 
this Committee, and I know that if he felt that this Committee 
had jurisdiction or could have jurisdiction, he would certainly 
have asserted it.
    Having said that, I'd like to make it clear that not only 
this Committee, but Congress certainly has a strong interest in 
promoting the availability of GPS technology in the private 
sector, and that we strongly encourage our fellow Committees in 
this body, as well as the relevant federal agencies, to 
minimize the scrambling of those signals so that we reduce the 
cost to the private sector in using that technology. Thank you.
    The Chairman. Well, I thank the gentleman. That is 
certainly the intent of the language that is in the bill with 
regard to GPS, but we cannot directly act on the specific issue 
that he talks about.
    Well, we will now consider H.R. 3936, The Space 
Commercialization Promotion Act of 1996.
    The bill, at this point, will be open for amendments. Are 
there amendments to the bill?
    The first Amendment that we will offer will be the 
Manager's Amendment, offered by myself and by Mr. Brown.
    [The text of the amendment follows:]

                        Amendments to H.R. 3936

                  Offered By Mr. Walker and Mr. Brown

    Page 2, in the table of contents, amend the item relating to 
section 104 to read as follows:

Sec. 104. Launch voucher demonstration program.

    Page 3, line 24, insert ``and'' after ``the United States;''.

    Page 4, lines 1 through 5, strike paragraph (8).

    Page 4, line 6, strike ``(9)'' and insert in lieu thereof ``(8)''.

    Page 6, lines 7 through 15, strike ``The Congress further'' and all 
that follows through ``to fund operations.'' and insert in lieu thereof 
``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 free market 
principles should be used in operating and adding capabilities to the 
Space Station whenever possible.''.

    Page 7, after line 15, strike the item relating to section 70122.

    Page 20, line 19, strike ``and''.

    Page 20, after line 19, insert the following new paragraph:

            ``(4) procedures for requesting and obtaining launch site 
        or reentry site operator licenses; and

    Page 20, line 20, strike ``(4)'' and insert in lieu thereof 
``(5)''.

    Page 21, line 10, through page 22, line 16, strike section 70122.

    Page 23, lines 3 through 6, strike ``a single prime contract'' and 
all that follows through ``streamlining activities'' and insert in lieu 
thereof ``the Space Flight Operations Contract for the Space Shuttle''.

    Page 23, lines 9 through 11, strike ``served in a position of 
authority with respect to the selection of the organization with which 
the employee seeks employment for an award'' and insert in lieu thereof 
``was actively and significantly involved in the selection of the 
entity that is awarded the Space Flight Operations Contract for the 
Space Shuttle''.

    Page 23, line 12, through page 27, line 9, amend section 104 to 
read as follows:

SEC. 104. 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.

    Page 28, line 8, strike ``fully''.

    Page 28, line 23, insert ``, except in cases where only one 
credible bid meeting the requirements of the solicitation is received'' 
after ``of the contract''.

    Page 29, after line 10, insert the following new subsection:

    (c) Limitation.--This section does not authorize the National 
Aeronautics and Space Administration to provide financial assistance 
for the development of systems for the collection of space science 
data.

    Page 32, line 6, strike ``indicates'' and insert in lieu thereof 
``is in''.

    Page 33, line 4, strike ``and at prevailing market prices''.

    Page 34, lines 7 through 9, amend paragraph (7) to read as follows:

            (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'';

    Page 35, line 12, insert ``, unless such activities would result in 
significant cost savings to the Federal Government'' after ``the 
commercial sector''.

    Page 37, lines 13 through 15, strike ``In no event shall such a fee 
be required in an amount greater than $5,000 per ground station.''.

    Page 38, lines 6 through 10, strike ``The Secretary of Defense'' 
and all that follows through ``of the Senate.''.

    Page 39, lines 5 through 8, strike ``The Secretary of State'' and 
all that follows through ``of the Senate.''.

    Page 39, line 25, strike ``fully''.

    Page 42, lines 14 and 15, strike ``poses an unacceptable risk to'' 
and insert in lieu thereof ``is inconsistent with''.

    Page 42, line 21, through page 43, line 4, strike ``Defense, and 
shall not'' and all that follows through ``commercial providers.'' and 
insert in lieu thereof ``the Air Force.''.

    Page 45, line 15, strike ``(d)'' and insert in lieu thereof 
``(c)''.

    Page 45, line 20, strike ``or (c)''.

    Page 45, line 22, strike ``(d)'' and insert in lieu thereof 
``(c)''.

    Page 47, line 9, through page 48, line 6, strike subsection (c).

    Page 48, line 7, redesignate subsection (d) as subsection (c).

    
    The Chairman. These are several changes to the original 
text of the bill that were worked out jointly between my staff 
and Mr. Brown's staff. We deal with this bill as a way of 
updating the law as it was since 1988.
    Several things have changed since then, including the need 
to license re-entry vehicles. We think that the corrections 
that are made here speak to a number of concerns that Mr. Brown 
and his staff raised in the course of our deliberations, and 
that it is an amendment that clarifies the bill and strengthens 
the bill, and I would urge its adoption.
    Mr. Brown. Mr. Chairman?
    The Chairman. Mr. Brown?
    Mr. Brown. May I just add that you've correctly reflected 
the circumstances. These amendments, which I'm not in a 
position to spell out in detail, were looked at very thoroughly 
by the staffs on both sides, in consultation with NASA. They 
feel, and we agree with them, that they constitute an 
improvement in the bill, and I recommend very strongly that we 
adopt them.
    The Chairman. I thank you, Mr. Brown. Mr. Rohrabacher?
    Mr. Rohrabacher. Mr. Chairman, I want to take this 
opportunity to thank you, and not just for sponsoring this 
legislation, but also for your tireless work over the years to 
advance space commercialization. This is another in a long line 
of omnibus space commercialization bills that you, Mr. Walker, 
have introduced over the years.
    Many of the ideas in those prior bills, I might add, were 
passed into law under the leadership of Mr. Brown, showing that 
this truly is a bipartisan effort. While this Committee may 
have had its partisan differences, the Manager's Amendment 
makes this bill, again, a full bipartisan initiative which 
should easily pass the House, and hopefully can pass the 
Senate.
    To that end, I would like to join you in asking my 
colleagues on both sides of the aisle to contact their friends 
in the other body to request their support for a prompt and 
unanimous consent passage of this bill. And basically, if we 
could follow that with the President's signature, I believe 
this would be basically a tribute to you, Mr. Walker, and the 
efforts that you've put out over the years.
    One closing note is that you will be missed, and I 
appreciate the time and effort that you've put in. I appreciate 
the direction you've given to me as an individual member of 
this Committee. So, thank you very much. I would hope that all 
of us support this amendment, and help get the bill passed 
through the House and the Senate.
    The Chairman. Thank you, Mr. Rohrabacher. I appreciate 
that.
    Anybody else with a--Mr. Volkmer?
    Mr. Volkmer. I thank the Chairman for recognizing me. It's 
good--I support the amendment. And it's apparent to me that the 
amendment is necessary in order to correct some deficiencies 
within the bill.
    What I'm more concerned about is--and as we're getting to 
the last of the session, perhaps I could address myself to 
another person other than the Chairman. My concern is, I look 
at the sponsors of the bill, and I don't see any bipartisanship 
here at all.
    This is basically a continuation of what I have lived and 
the rest of us have lived through for about 20 months now. I 
have inquired as to who on this side actually helped work on 
the bill, and I find very little participation.
    I do find that within the bill there are ideas and concepts 
that originated not just within this bill, but years ago, 
several years ago, and have been developed down through the 
times.
    I would hope that whoever is in the Majority in the next 
Congress--and I'll address my remarks to the gentleman from 
Wisconsin, because I have worked with him in the past--
hopefully in the future, we will continue to see what we saw 
before this Congress, and that is an attempt, at least, to 
develop legislation on a bipartisan fashion.
    I think it's better for everybody to do so.
    I yield back.
    The Chairman. Thank you, Mr. Volkmer.
    Mr. Volkmer, this bill was shopped to virtually every 
member of the Committee, Democrats and Republicans. We 
attempted to get Democratic cosponsors. We did work with Mr. 
Brown in developing the amendment that we're offering today as 
a way of making the bill into a bipartisan bill.
    But this was not done as a partisan exercise. We attempted 
to get a bill written, but the fact is that every member of 
this Committee was contacted, was given a copy of the bill, was 
asked to cosponsor, was asked for suggestions about the bill.
    And so there was an attempt, on a very broad basis, to try 
to make this into a bipartisan effort.
    And I'm happy that we were able to work it out in a way 
with Mr. Brown that we addressed those concerns through the 
Manager's Amendment. That's the reason why you have a 
bipartisan Manager's Amendment before you.
    Are there other comments on the Manager's Amendment?
    Mr. Baker?
    Mr. Baker. I'd just like to add on to that.
    As one of the cosponsors--and I know Mrs. Seastrand is--I'm 
very honored that this bill is going to go out today, because I 
can stop hearing from all the people at Vandenberg Air Force 
Base. It's now in space commercialization in the private sector 
who want to promote space commercialization.
    This bill gives us the ground rules and the assistance we 
need to continue supporting this program. Mrs. Seastrand's 
district has a base that is into space commercialization.
    They spend half their time in my office and half the time 
in her office, so I'm thrilled that it's going on the floor and 
out of here today.
    The Chairman. Are there any other members who wish to be 
recognized?
    [No response.]
    The Chairman. If not, the Chair will put the question on 
the Manager's Amendment.
    All those in favor will say aye.
    [Chorus of ayes]
    The Chairman. Those opposed will say no.
    [No response.]
    The Chairman. The ayes have it, and the amendment is agreed 
to.
    Are there further amendments?
    Mr. Brown. Mr. Chairman?
    The Chairman. Mr. Brown?
    Mr. Brown. Mr. Chairman, in an effort to achieve the goal 
which you have announced, and Mr. Rohrabacher has indicated is 
highly desirable, of moving this through the Senate by 
unanimous consent, I have an amendment which I would like to 
have distributed at this point.
    The Chairman. The Clerk will report the Amendment.
    The Clerk. Amendment offered by Mr. Brown to H.R. 3936. On 
page 41, line 8, delete, quote, 'as part of', quote, and insert 
in lieu thereof, 'in close coordination with.'
    Mr. Brown. If I may explain the amendment, Mr. Chairman?
    The Chairman. The gentleman is recognized.
    Mr. Brown. I think most of us know that the bulk of the 
remote sensing activity at the present time, and a lot of the 
other material related to the GPS systems and so forth, is 
centered at Goddard Center in Maryland. Of course, some of it 
is and will continue to be reassigned to other centers. But the 
language here almost preempts for the Stennis Space Center, the 
activities contained in this particular section of the bill, 
which is basically a report with regard to the acquisition of 
remote sensing data.
    The problem here is very simple. We have two very wonderful 
Senators from Mississippi, both of whom are good friends of 
mine, who are going to try to carry on the ancient tradition 
that the former Chairman of the Appropriations Committee was so 
excellent at, Jamie Whitten of Mississippi, in putting all the 
space programs that they could into Mississippi.
    Now, I don't particularly object to making full use of 
Mississippi and all of its great talents, including the talents 
of its two great Senators. But I think that there might be a 
problem with some other Senators who would not feel quite the 
same way about preempting all of this work for the Stennis 
Space Center.
    So my amendment is quite simple. It says that this will be 
done in close cooperation with Stennis, but not necessarily as 
a part of their program, taking it away from the Goddard 
Center.
    The Chairman. I think the gentleman makes a very useful 
point. But one of dilemmas we have here is the fact that in the 
commercial bill, the commercial activities have largely been at 
Stennis; that's where they're headquartered, and that Goddard 
has tended to freeze out that when we have been dealing with 
them on other issues. And so this was an attempt to try to get 
it----
    Let me ask the gentleman, could we perhaps substitute 
language that would say something to the effect of--that would 
say, instead of the language which is in the bill, and instead 
of what the gentleman is talking about, that would say 
something like, would be carried out with the commercial remote 
sensing program at the Stennis Space Center, as the lead, 
working in close cooperation with other centers of NASA?
    Or even--I can even take out the words, as a the lead. What 
I'm trying to do is make certain that they have an obligation, 
if NASA decides it's going to go to Goddard, that they have an 
obligation to work with the people at Stennis, and not freeze 
them out of this opportunity.
    Mr. Brown. I feel sure that a good-faith effort could come 
up with some language similar to what you're suggesting. The 
Administrator currently objects to this language, and he might 
very well communicate his objection to others, and make it more 
difficult to get this bill passed.
    I would not like to see that, because I really think the 
bill does make some important contribution.
    The Chairman. Well, I mean, if this is a problem--I'm not 
aware that the Administrator has communicated to me at the 
present time. He obviously has to you.
    If this is a concern, I would be happy to get it worked out 
between now and the time we go to the floor with it on 
suspension, and try to work some language that would meet our 
concerns, as well as concerns that you rightfully express. 
Would that be satisfactory to the gentleman?
    Mr. Brown. Having the utmost regard for the gentleman's 
concern about this, and complete trust in his ability to draft 
good amendments and make useful compromises, I would be 
satisfied.
    The Chairman. Well, we'll obviously do it in consultation 
with you.
    Is the gentleman prepared to withdraw the amendment, then, 
at this time?
    Mr. Brown. At this point, I'm prepared to withdraw the 
amendment.
    The Chairman. And we understand it's being withdrawn on the 
assumption, and on my promise that this language will be 
changed, and that we will work with the gentleman to try to 
find appropriate language.
    Mr. Volkmer. Would the Chairman yield on that? Or, who has 
the time?
    The Chairman. I'd be happy to yield to the gentleman from 
Missouri.
    Mr. Volkmer. Is it understood that the changes that will be 
agreeable to the gentleman from California and the gentleman 
from Pennsylvania will be made before the bill is taken up on 
the floor of the House?
    The Chairman. We anticipate, Mr. Volkmer, because of the 
need to work out the procurement provisions with the Government 
Reform Committee, that there will be an amendment offered as a 
part of bringing the bill to the floor, even under the 
Suspension Calendar.
    What I would intend to do is include this compromise 
language as a part of that amendment that will be brought.
    Mr. Volkmer. That's what I'm asking, that it be done before 
it comes on the floor.
    The Chairman. Oh, absolutely. This will be--particularly if 
it comes up under suspension, it will all have been worked out.
    Mr. Volkmer. Fine.
    The Chairman. Are there further amendments?
    [No response.]
    The Chairman. Hearing none, the question is on the bill, 
H.R. 3936, the Space Commercialization Promotion Act of 1996.
    All those in favor will say aye.
    [Chorus of ayes.]
    The Chairman. The amendment has been withdrawn. This is on 
the bill.
    Again, all those in favor will say aye.
    [Chorus of ayes.]
    The Chairman. Those opposed will say no.
    [No response.]
    The Chairman. In the opinion of the Chair, the ayes have 
it. The bill is approved.
    Mr. Brown. Mr. Chairman?
    The Chairman. Mr. Brown?
    Mr. Brown. I will make the usual motion that the Committee 
report the bill, H.R. 3936, The Space Commercialization 
Promotion Act of 1996, 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 necessary steps to bring the bill before the House for 
consideration.
    And I also request the usual three calendar days in which 
to submit supplementary, Minority, or additional views.
    The Chairman. The Committee has heard the motion. Those in 
favor will say aye.
    [Chorus of ayes.]
    The Chairman. Those opposed will say no.
    [No response.]
    The Chairman. The ayes have it, and the motion is agreed to 
without objection.
                          Committee on Science
                         Full Committee Markup
                     Wednesday, September 11, 1996
                         12:00 noon--2318 RHOB

                            Amendment Roster
H.R. 3936, Space Commercialization Promotion Act of 1996

--Motion to adopt the bill as amended; agreed to by voice vote.
--Motion to order the bill reported, as amended; agreed to by voice 
vote.


------------------------------------------------------------------------
  No.         Sponsor              Description              Results     
------------------------------------------------------------------------
1.....  Walker/Brown         Managers' Amendment      Adopted by a voice
                                                       vote             
------------------------------------------------------------------------


    The Chairman. The motion to reconsider is laid upon the 
table.
    The Chair will recognize Mr. Davis for a motion.
    Mr. Davis. Mr. Chairman, I would move, pursuant to Clause 1 
of Rule 20 of the Rules of the House of Representatives, that 
the Committee authorize the Chairman to offer such motions as 
may be necessary in the House to go to conference with the 
Senate on the bill H.R. 3936, The Space Commercialization 
Promotion Act of 1996, or a similar Senate bill.
    The Chairman. You have heard the motion. All those in favor 
will say aye.
    [Chorus of ayes]
    The Chairman. Those opposed say no.
    [No response.]
    The Chairman. The ayes have it. So moved.
    Mr. Brown?
    Mr. Brown. Mr. Chairman, a parliamentary inquiry. Is this, 
as far as you know, the last markup session of the Committee?
    The Chairman. This, I think, will be the last time that we 
will do any markups. We have a couple more hearing scheduled 
that will feature, for instance, some discussion of the 
potential life on Mars and some actions of that type. So, I 
expect the full Committee will meet on a couple more occasions 
for hearings, but I do not anticipate an additional markup.
    Mr. Brown. May I request unanimous consent to proceed for 
one minute out of order?
    The Chairman. The gentleman is recognized.
    Mr. Brown. If this is the last markup, then it marks 
another point of attention that we need to give to the service 
of the distinguished Chairman. This will be his last markup.
    I would like to make note of that, and to indicate to him 
that this--we're reaching the end of 20 years of joint service 
which, despite its occasional ups and downs, I want to pay 
tribute to him for the fine work that he's done. It will be a 
historic occasion when he leaves this Committee.
    He's contributed a point of view which, as I say, I don't 
always agree with, but it's reflected in the bill that we have 
before us today, a point of view that says that we have to 
maximize the opportunities for all the people of this country 
to participate in the space program, and that this will be the 
strength of the American space program, in contrast to the 
space programs of another countries.
    That's a marvelous contribution to make. It is my hope, of 
course, that in the process of commercializing space, that we 
would get the government enterprise to understand the point of 
view of the private sector, and the private sector to 
understand the point of view of the public sector, so that they 
could work together in common harness for the benefit of all 
the people of this country. I'm sure the Chairman shares that 
point of view. I recognize your contribution and commend you 
for it.
    The Chairman. Well, thank you very much. I might say to you 
that we have spent 20 years working together on this Committee, 
and many people might be surprised along the way to understand 
that you have been one of the people who has mentored me along 
the way.
    I remember very well, back when I first started off as a 
relatively young member of this Committee, thinking that it 
would be fairly easy to get some things done with regard to 
commercial space, and that what we ought to do, for instance, I 
thought, was change the NASA charter for this.
    You were walking over with me to a Committee meeting. We 
were meeting over at the Cannon building for some reason that 
day. You said to me on the way over, this is going to be a lot 
more difficult than you think. I thought, gee, I have a fairly 
simple little change here.
    And everybody on earth came out of the woodwork. NASA was 
out of the woodwork, the aerospace contractors were out of the 
woodwork and protesting this and so on. I remember that we 
walked back, and I said, well, you were absolutely right. I 
have a few things to learn along the way about who reacts to 
these things.
    So, you have been a great friend and mentor along the way, 
and I've appreciated the opportunity to work with you.
    Mr. Gordon. Mr. Chairman, I'd like to concur with Mr. 
Brown's words, and wish you well.
    The Chairman. Thank you, Mr. Gordon. I appreciate it.
    With that, the Committee stands adjourned.
    [Whereupon, at 12:40 p.m., the hearing was adjourned, to 
reconvene pursuant to the call of the Chair.]
                     XVI. Committee Correspondence

      Committee on Government Reform and Oversight,
                                Washington, DC, September 16, 1996.

The Honorable Newt Gingrich,
The Speaker,
H-232, The Capitol,
U.S. House of Representatives,
Washington, DC 20515

    Dear Mr. Speaker:
    I write to you with respect to H.R. 3936, the ``Space 
Commercialization Promotion Act of 1996.'' This bill was 
introduced on August 1, 1996, and was referred to the Committee 
on Science, and in addition, to the Committee on Government 
Reform and Oversight.
    The purpose of this bill is to encourage the development of 
a commercial space industry in the United States and for other 
purposes. In fulfilling its goals, the bill requires the 
Federal government to use certain procurement procedures for 
the purchase of certain space-related activities. Government 
procurement policy falls within the Rule X jurisdiction of this 
Committee.
    The Committee on Government Reform and Oversight has 
reviewed H.R 3936 and, in order to expedite consideration of 
this measure in the House, waives its right to take up this 
bill. I therefore ask that the Committee be discharged from 
further consideration.
    The Committee on Government Reform and Oversight wishes to 
make clear that the foregoing waiver should not be construed as 
a waiver of the Committee's jurisdiction with respect to any of 
the legislative provisions in H.R. 3936 that fall within its 
jurisdiction. The Committee also wishes to preserve its 
prerogatives with respect to any House-Senate conference on 
this bill and any Senate amendments thereto, including the 
appointment of an equal number of conferees to those appointed 
for any other House committee with respect to the provisions of 
H.R. 3936 which fall within this committee's jurisdiction.
    Thank you for your attention to this matter.
            Sincerely,
                                   William F. Clinger, Jr.,
                                                          Chairman.

cc:
    The Honorable Gerald B.H. Solomon
    The Honorable Robert S. Walker
    The Honorable Cardiss Collins
    The Honorable George E. Brown, Jr.
    The Honorable John Joseph Moakley
                             Committee on Commerce,
                                Washington, DC, September 17, 1996.

The Honorable Robert S. Walker,
Chairman,
Committee on Science,
2320 Rayburn House Office Building,
Washington, DC 20515

    Dear Mr. Chairman:
     On September 11, 1996, your Committee ordered reported 
H.R. 3936, the ``Space Commercialization Promotion Act of 
1996.'' This measure contains two provisions, section 105, 
``Promotion of United States Global Positioning System 
Standards,'' and section 201, ``Land Remote Sensing Policy Act 
of 1992 Amendments,'' that place new obligations on the FCC and 
change application of the fee structure as established in the 
Communications Act of 1934. These provisions are within the 
Rule X jurisdiction of the Committee on Commerce in the area of 
communications.
    While I am concerned that this measure interferes with the 
statutory application of fees set by the Commerce Committee, I 
recognize your Committee's desire to bring this legislation 
expeditiously before the House. Therefore, I will not seek a 
sequential referral of the bill. However, by agreeing not to 
seek a sequential referral, this Committee does not waive its 
jurisdictional interest in those matters within the 
jurisdiction of the Commerce Committee. I would appreciate your 
support of my effort to seek conferees on all provisions of the 
bill that are within the Commerce Committee's jurisdiction 
during any House-Senate conference that may be convened on this 
legislation.
    I would appreciate your including this letter as a part of 
the Science Committee's report on H.R. 3936, and as part of the 
record during consideration of this bill by the House.
            Sincerely,
                                     Thomas J. Bliley, Jr.,
                                                          Chairman.

cc:
    The Honorable George E. Brown, Jr.
    Ranking Minority Member
    Committee on Science

    The Honorable John D. Dingell
    Ranking Minority Member
    Committee on Commerce
                              Committee on Science,
                                Washington, DC, September 17, 1996.

The Honorable Thomas Bliley,
Chairman,
Committee on Commerce,
U.S. House of Representatives,
Washington, DC 20515

    Dear Mr. Chairman:
    Thank you for your letter of September 17, 1996, regarding 
H.R. 3936, the ``Space Commercialization Promotion Act of 
1996.''
    We appreciate your Committee's assistance in expediting 
this measure and recognize your jurisdiction concerning the FCC 
provisions. Accordingly, we will support your efforts to seek 
conferees on these and any other provisions within the Commerce 
Committee's jurisdiction if a conference is convened on this 
legislation.

            Sincerely,
                                          Robert S. Walker,
                                                          Chairman.