LAND REMOTE-SENSING COMMERCIALIZATION ACT OF 1984

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000200290018-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 21, 2016
• Document Release Date: September 11, 2008
• Sequence Number: 18
• Publication Date: April 9, 1984
• Content Type: REGULATION

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April 9, 1984 CONGRESSIONAL RECORD - HOUSE
Mr. CRAIG. Mr. Speaker, this past
weekend, former Idaho Senator Frank
Church passed away after a long ill-
ness. He served the State of Idaho and
the Nation for 24 years in the U.S.
Senate.
It would be inappropriate for me to
extol the political stewardship of Sen-
ator Church because we held few
philosophical beliefs in common. Even
so, I, Idaho, and the Nation mourn his
passing because he was a man and a
political leader of deep commitment
and a sincere, personal resolve to pur-
suing policies he felt were in the best
interest of this Nation.
He was a man of unique ability who
established a lofty goal in his political
life of becoming chairman of the
Senate Foreign Relations Committee
and achieved it; who believed strongly
about the conduct of American foreign
policy and courageously fought for
those beliefs despite the political con-
sequences. One need not agree with
those positions to admire and respect
that integrity and honesty.
Many Members of Congress will
come and go, but few will carve out of
their tenures a place in history. Those
that do, usually have done so out of
their strength of commitment and
statesmanship. The passing of Frank
Church is the passing of one of those
men.
The greatest strength of the Ameri-
can political experiment is the toler-
ance, integrity, and intensity of its de-
liberative process, where men and
women of divergent positions seek to
implement policies that will steer the
country toward a peaceful, prosperous,
and free future. Positions on the spe-
cific issues at the time defines the
politician participants in that process,
but history and force of personal com-
mitment to the process define states-
men.
This weekend, the Nation lost a
statesman. And whether you agreed or
disagreed with the late Senator
Church's political positions, he carried
those beliefs to the deliberative proc-
ess with that strength of character.
I Join with others in extending my
condolences to the Church family.
REPORT ON RESOLUTION DI-
RECTING SECRETARY OF
STATE TO PROVIDE INFORMA-
TION CONCERNING SLAYING
OF AMERICAN CHURCHWOMEN
IN EL SALVADOR
Mr. KOSTMAYER, from the Com-
mittee on Foreign Affairs, submitted a
privileged report (Rept. No. 98-657) on
the resolution (H. Res. 464) directing
the Secretary of State to provide cer-
tain information to the House of Rep-
resentatives concerning the 1980
slayings of four American churchwo-
men in El Salvador, which was re-
ferred to the House Calendar and or-
dered to be printed.
REPORT ON RESOLUTION DI-
RECTING SECRETARY OF
STATE TO PROVIDE INFORMA-
TION CONCERNING DEATH
SQUADS IN EL SALVADOR
Mr. KOSTMAYER, from the Com-
mittee on Foreign Affairs, submitted a
privileged report (Rept. No. 98-658) on
the resolution (H. Rea 463) directing
the Secretary of State to provide cer-
tain information to the House of Rep-
resentatives concerning death squads
in El Salvador, which was referred to
the House Calendar and ordered to be
printed.
MEMORIAL SERVICE TO BE
HELD FOR SENATOR FRANK
CHURCH
(Mr. WRIGHT asked and was give
permission to address the House for 1
minute.)
Mr. WRIGHT. Mr. Speaker, I should
like to announce for all who may wish
to attend that a memorial service will
be held at 11 o'clock tomorrow morn-
ing at the Washington National Ca-
thedral in honor of the late Senator
Frank Church. Frank Church's exam-
ple combined the starkly independent
judgments of an honest man with the
warm, outgoing good will of an inher-
ently kind human being.
At a time when there are disagree-
ments, candid and profound. on inter-
national issues, it may be that we can
draw from his inspiration to create a
few basic principles which will allow
us to be more bipartisan in our spirits
if not always in our judgments and,
when we disagree, to do so with suffi-
cient grace that we shall not be dis-
agreeable.
Those who would join in honoring
the memory of Frank Church are in-
vited to attend the observance in the
cathedral at 11 o'clock tomorrow.
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ANNOUNCEMENT BY THE
SPEAKER
The SPEAKER. Pursuant to the
provisions of clause 5, rule I, the Chair
announces that he will postpone fur-
ther proceedings today on each motion
to suspend the rules on which a re-
corded vote or the yeas and nays are
ordered, or on which the vote is ob-
jected to under clause 4 of rule XV.
Such rollcall votes, if postponed, will
be taken at the end of the legislative
business on Tuesday, April 10, 1984.
PERMISSION FOR COMMITTEE
ON WAYS AND MEANS TO FILE
REPORT ON H.R. 5362
Mr. MILLER of California. Mr.
Speaker, on behalf of the chairman of
the Committee on Ways and Means, I
ask unanimous consent that the Com-
mittee on Ways and Means have until
6 p.m. tonight, Monday. April 9, 1984,
to file its report to accompany the bill.
H.R. 5362.
H 2467
Mr. Speaker, it is my understanding
that this has been cleared with the mi-
nority members of the committee.
The SPEAKER. Is there objection
to the request of the gentleman from
California?
Mr. WORTLEY. Mr. Sympber, re-
serving the right to ob$ert there is no
objection. We have received assur-
ances that the cost estimates to ac-
company the bill, prepared by the
Congressional Budget Office, will be
included in that report and, therefore,
we have no objection.
Mr. Speaker, I withdraw mt reserva-
tion of objection.
The ? SPEAKER. Is there objection
to the request of the gentleman from
California?
There was no objection.
LAND REMOTE-SENSING COM-
MERCIALIZATION ACT OF 1984
Mr. VOLKMER. Mr. Speaker, I
move to suspend the rules and pass
the bill (H.R. 5155) to establish a
system to promote the Use of land
remote-sensing satellite data, and for
other purposes.
The Clerk read as follows:
H.R. 5155
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That this
Act may be cited as the "Land Remote-Sens-
ing Commercialization Act of 1984".
TITLE I-DECLARATION OF FINDINGS,
PURPOSES, AND POLICIES
rmmINos
Sac. 101. The Congress finds and declares
that-
(1) the continuous civilian collection and
utilization of land remote-sensing data from
space is of major benefit in managing the
Earth's natural resources and in planning or
conducting many other activities of econom-
ic importance;
(2) the national interest of the United
States lies in maintaining international
leadership In civil remote-sensing and in
broadly promoting the beneficial use of
remote-sensing data;
(3) land remote-sensing by the Govern-
ment or private parties of the United States
affects international commitments and poli-
cies and national security concerns of the
United States;
(4) the broadest and most beneficial use of
land remote-sensing data is likely to result
from maintaining a policy ofnondiscrimina-
tory access to data,
(5) use of land remote-sensing data has
been inhibited by slow market development
and by the lack of assurance of data con-
tinuity;
(6) the private sector, and in particular
the "value-added" industry, is best suited to
develop land remote-sensing data markets;
(7) vigorous, competitive, market-driven
private sector involvement in land remote-
sensing can lead to rapid realization of the
potential benefits of that technology;
(8) to utilize fully the strengths of the pri-
vate sector, any process of oommercializa-
tion of land remote-sensing should involve
the maximum practicable competition and
the minimum (both in duration and
amount) practicable Government subsidy;
(9) at the present time, it is unclear that
the private sector alone will develop a total
land remote-sensing system because of the
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high risk and large capital expenditures in-
volved;
(10) cooperation between the Federal Gov-
ernment and the private sector can help
assure both data continuity and United
States leadership;
(11) the time is now appropriate to initiate
such cooperation with phased transition to
a fully commercial system;
(12) cooperation between Government and
the private sector in civil land remote-sens-
ing should be structured so as to minimize
Government direction and regulation and
maximize private sector involvement;
(13) nevertheless, certain Government
oversight must be maintained to assure that
private sector activities are in the national
interest and that the international commit-
ments and policies of the United States are
honored; and
(14) there is no compelling reason to com-
mercialize meteorological satellites at this
time.
PURPOSES
SEC. 102. It is therefore the purpose of
this Act-
(1) to guide the United States Govern-
ment in promoting full, prompt, and proper
involvement of the private sector in civil
land remote-sensing from space;
(2) to maintain the United States leading
position in civil remote-sensing, preserve its
national security, and fulfill its internation-
al obligations;
(3) to prescribe conditions for assuring
continuity of civil land remote-sensing data
while protecting public and private nondis-
criminatory access to these data;
(4) to minimize the duration and amount
of any further Federal investment that
might be necessary to achieve full commer-
cialization of civil land remote-sensing; and
(5) to prohibit commercialization of mete-
orological satellites at this time.
POLICIES
SEC. 103. (a) It shall be the policy of the
United States to preserve its right to ac-
quire and disseminate digital remote-sensing
data.
(b) It shall be the policy of the United
States that civilian digital remote-sensing
data be made available to all potential users
on a nondiscriminatory basis.
(c) It shall be the policy of the United
States both to commercialize those space
remote-sensing functions that properly lend
themselves to private sector operation and
to avoid competition by the Government
with such commercial operations, while con-
tinuing to preserve our national security, to
honor our international obligations, and to
retain in the Government those remote-
sensing functions that are essentially of a
public service nature.
DEFINITIONS
SEC. 104. For purposes of this Act:
(1) The term "digital remote-sensing data"
means the unprocessed and minimally proc-
essed signals collected from civil remote-
sensing space systems or original film prod-
ucts collected from such systems. Such
minimal processing shall be limited to recti-
fication of instrumental distortions, regis-
tration with respect to features on the
Earth, and calibration of spectral response.
Such term does not include conclusions, ma-
nipulations, or calculations derived from
such signals or combination of the signals
with other data or information. Unless oth-
erwise limited, digital remote-sensing data
includes land and ocean sensed data.
(2) The term "Secretary" means the Sec-
retary of Commerce.
(3)(A) The term "on a nondiscriminatory
basis" means without preference, bias, or
any other special arrangement regarding de-
livery, format, financing, or technical con-
siderations which would favor one buyer or
class of buyers over another.
(B) The sale of data is made on a nondis-
criminatory basis only if (1) any offer to sell
or deliver data is published in advance in
such manner as will ensure that the offer is
equally available to all prospective buyers;
(ii) the system operator has not established
or changed any price, policy, procedure, or
other term or condition in a manner which
gives one buyer or class of buyer de facto fa-
vored access to data; and (iii) in a case
where a system operator offers volume dis-
counts, such discounts are no greater than
the demonstrable reductions in the cost of
such sales. The sale of data on a nondiscri-
minatory basis does not preclude the system
operator offering discounts other than
volume discounts to the extent that such
discounts are not inconsistent with any
other provision of this paragraph.
(C) The sale of data on a nondiscrimina-
tory basis does not require (I) that a system
operator disclose names of buyers or their
purchases; (ii) that a system operator main-
tain all, or any particular subset of, data in
a working inventory; or (iii) that a system
operator expend equal effort in developing
all segments of a market.
(4) The term "Landsat system" means
Landsat 1, 2. 3, 4, and 5, and related ground
equipment, systems, and facilities, and any
successor civil land remote-sensing satellites
operated by the United States Government
prior to the commencement of the six-year
period described in section 302(b)(2).
(5) The term "system operator" means a
contractor under title II or a license holder
under title IV.
TITLE II-CONTRACT FOR EXISTING
LAND REMOTE-SENSING SATELLITE
SYSTEM
CONTRACT REQUIREMENTS
Sac. 201. (a) In accordance with the re-
quirements of this Act, the Secretary shall,
subject to the availability of appropriations
therefor, contract with a United States pri-
vate sector party (as defined by the Secre-
tary) to market digital remote-sensing data
generated by the Landsat system. If the
Secretary determines that competition for
such contract will promote the policies and
purposes of this Act, the Secretary may
accept proposals for such contract which in-
clude the operation by such United States
private sector party of (1) the space compo-
nent of the Landsat system, (2) the related
ground equipment, systems, and facilities,
or (3) both such space component and such
related equipment, systems, and facilities.
(b) A contract awarded under subsection
(a) shall be awarded, after competition, in
accordance with the conditions of section
203. Such contract may be reawarded com-
petitively after the practical demise of the
space segment of the Landsat system, as de-
termined by the Secretary.
(c) Any contract authorized by subsection
(a)-
(1) shall not permit the transfer to any
contractor of title to any part or all of the
Landsat system; and
(2) may specify that the contractor use,
and, at his own expense, maintain, repair, or
modify elements of the Landsat system as
the contractor finds necessary for commer-
cial operations.
(d) If, as a result of the competitive proc-
ess required by subsection (b), the Secretary
receives no proposal which he finds accept-
able under the conditions of this Act, the
Secretary shall so certify and fully report
his findings to the Congress. Thirty days
after so certifying and reporting, the Secre-
tary may reopen the competition. If no ac-
ceptable proposals are received after such
April 9, 1984
subsequent competition, or if the Secretary
decides not to reopen the competition, the
Secretary shall so certify and fully report
his findings to the Congress. In the event
that no acceptable proposal is received, the
Secretary shall continue to operate the
Landsat system and to market data from
such system.
(e) In defining "United States private
sector party" for purposes of subsection (a),
the Secretary may take into account the
citizenship of key personnel, location of
assets, foreign ownership, control, and influ-
ence, and other such factors.
SALE OF DATA
SEC. 202. (a) The United States Govern-
ment shall retain title to any and all data
generated by the Landsat system. However,
after the date of the commencement of the
contract described in section 201(a), the con-
tractor shall be entitled to revenues from
sales of copies of data from the Landsat
system, subject to the conditions specified
in sections 601 and 602 of this Act.
(b) The contractor may continue to
market data previously generated by the
Landsat system after the demise of the
space segment of that system.
CONDITIONS OF COMPETITION FOR CONTRACT
SEC. 203. (a) The Secretary of Commerce
shall, as part of his advertisement for the
competition for the contract authorized by
section 201, identify and publish the inter-
national obligations, national security con-
cerns (with appropriate protection of sensi-
tive information), domestic legal consider-
ations, and any other standards or condi-
tions which a private contractor shall be re-
quired to meet.
(b) In selecting a contractor under this
title, the Secretary shall consider-
(1) ability to market aggressively digital
remote-sensing data;
(2) the best overall financial return to the
Government, including the potential savings
to the Government;
(3) ability to meet the obligations, con-
cerns, standards, and conditions identified
under subsection (a);
(4) technical competence, including the
ability to assure continuity and timeliness
of data from the Landsat system;
(5) absence of any conflicts of interest
which could inhibit nondiscriminatory
access to such data;
(6) ability to effect a smooth transition
with the contractor selected under title III
of this Act; and
(7) such other factors as he deems appro-
priate.
FOREIGN GROUND STATIONS
SEC. 204. (a) The contract under this title
shall provide that the contractor shall act
as the agent of the Secretary by continuing
to supply digital remote-sensing data to for-
eign ground stations for the life, and accord-
ing to their terms, of those agreements be-
tween the United States Government and
such foreign ground stations that are in
force on the date of the commencement of
the contract.
(b) Upon the expiration of such agree-
ments, or in the case of foreign ground sta-
tions that have no agreement with the
United States on the date of commencement
of the contract, the contract shall provide-
(1) that digital remote-sensing data from
the Landsat system shall be made available
to foreign ground stations only by the con-
tractor; and
(2) that such data shall be made available
on a nondiscriminatory basis.
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April 9, 1984 CONGRESSIONAL RECORD -- HOUSE
TITLE III-PROVISION OF DATA CON-
TINUITY DURING TRANSITION
PERIOD
PURPOSES AND DEFINITIONS
Sic. 301. (a) It is the purpose of this
title-
(1) to provide, in an orderly manner and
with minimal risk, for a transition between
Government operation and private, com-
mercial operation of civil land remote-sens-
ing space systems: and
(2) to provide for the continuity of MSS
data for six years after the practical demise
of the space segment of the Landsat system.
(b) For purposes of this title-
(1) the term "Multi-Spectral, Scanner"
means the instrument referred to by that
name and carried on the Landsat 4 and
Landsat 5 satellites; and
(2) the term "MSS data" means digital
remote-sensing data which, from the point
of view of a data user, are-
(A) functionally equivalent to data from
the Multi-Spectral Scanner, and
(B) compatible with data and with equip-
ment used to receive and process data from
such Scanner.
CONTRACT FOR DATA AVAILABILITY AND
CONTINUITY
SEC. 302. (a) Subject to the availability of
appropriations therefor and to the licensing
conditions established under title IV, the
Secretary shall, after competition, contract
with a United States private sector party (as
defined by the Secretary pursuant to sec-
tion 201) for the provision by such party of
the capability of generating data 'of a qual-
ity at least equal to the quality of MSS data
and of selling and delivering such data to
the Federal Government. The capability
shall include, at a minimum, the capability
to generate and deliver MSS data at the
annual volume of Federal usage during
fiscal year 1983, as determined by the Secre-
tary. The capability may be provided by the
contractor using whatever technologies the
contractor may select. In addition, the con-
tractor may make available data of a higher
quality or of a different type than MSS
data.
(b) The contract authorized by subsection
(a)-
(1) shall be entered into as soon as practi-
cable, allowing for the competitive procure-
ment process;
(2) shall, in accordance with criteria deter-
mined and published by the Secretary, rea-
sonably assure the provision of the capabili-
ty described in subsection (a) for a period- of
six years, beginning as soon as practicable in
order to minimize any interruption of data
availability;
(3) shall terminate one year after the ex-
piration of the six-year period described In
paragraph (2);
(4) may, subject to section 305 of the Fed-
eral Property and Administrative Services
Act of 1949 (41 U.S.C. 255), provide for a
payment by the Secretary to cover a portion
of the capital cost of providing such capabil-
ity, which may be paid in Installments (A)
based on progress prior to the beginning of
the six-year period described in paragraph
(2), and (B) the sum of which shall be less
than the total cost of procuring the system
required to assure the capability for six
years;
(5) shall provide that sale of digital
remote-sensing data shall be inaccordance
with the provisions of section 303 of this
title;
(8) shall not provide for any guaranteed
data purchases by the Federal Government;
and
(7) may provide that the contractor uti-
lize, on a space-available basis? civilian Gov-
ernment satellites as platforms for a civil
remote-sensing Satellite system, If-
(A) the contractor Immediately reim-
burses the Government for all related costs
incurred with respect to such utilization, in-
cluding a reasonable and proportionate
share of fixed, spacecraft, data transmis-
sion, and launch costs; and
(B) such utilization would not interfere
with or otherwise In any way compromise
the intended civilian Government missions,
as determined by the agency responsible for
the civilian satellite.
(c) The contract authorized by subsection
(a) shall be awarded on the basis of-
(1) the cost to the Government of the pay-
ment under subsection (bX4);
(2) the reliability, technical competence,
and financial condition of the contractor;
(3) the contractor's ability to develop the
remote-sensing data market;
(4) the contractor's ability to supplement
basic capabilities specified in section 302(a)
by adding remote-sensing capabilities (at
the contractor's expense and consistent
with national security concerns) which
maintain United States leadership in
remote-sensing; -
(5) the contractor's ability to meet the
conditions for obtaining a license under title
IV;
(6) the contractor's ability to provide digi-
tal remote-sensing data on a timely and reli-
able basis;
(7) the contractor's ability to effect a
smooth transition with any contractor se-
lected under title II;
(81 the royalty or profit- or revenue-shar-
ing arrangement, or other such financial
consideration offered to the Federal Gov-
ernment; and
(9) such other factors as the Secretary
deems appropriate.
(d) If, as a result of the competitive proc-
ess required by subsection (a), the Secretary
receives no proposal which he finds accept-
able under the conditions of this Act, the
Secretary shall so certify and fully report
his findings to the Congress. Thirty days
after so certifying and reporting, the Secre-
tary may reopen the competition. If no ac-
ceptable proposals are received after such
subsequent competition, or if the Secretary
decides not to reopen the competition, the
Secretary shall so certify and fully report
his findings to the Congress. Ninety days
after so certifying and reporting, the Secre-
tary is authorized to assure MSS data con-
tinuity by procurement and operation by
the Federal Government of the necessary
systems, subject to the availability of appro-
priations therefor. Such procurement and
operation may include generation of data of
a higher quality than MSS data.
SALE OF DATA
Sic. 303. (a) The contractor selected under
section 302 shall sell data in accordance
with the provisions of sections 601 and 602
of this Act.
(b) Any sale of digital remote-sensing data
by the contractor to Federal agencies shall
be on a nondiscriminatory basis, with the
additional condition that at least 5 per
centum of the price of each such sale shall
be rebated to the Government (and thereby
reduce the total net cost to the Govern-
ment) as a royalty payment to the United
States Treasury. Such royalty payments
shall be required during the life of the con-
tract authorized in section 302, or until such
time as the cumulative total of such royalty
payments equals the value of any payment
made to the contractor by the Government
under section 302(bX4), whichever first
occurs. Data sales to non-Federal buyers
shall not be subject to such a rebate.
(c) After the six-year period described in
section 302(bX2), the contractor may Con-
tinue to sell data and, if licensed under title
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IV of this Act, to operate a civil remote-
sensing space system.
REPORT
Sic. 304. Two years after the date of the
commencement of the six-year period de-
scribed in section 302(bX2) the Secretary
shall report to the President and to the
Congress on the progress of the transition
to fully private financing, ownership, and
operation of remote-sensing space systems,
together with any recommendations for ac-
tions, including actions necessary to ensure
United States leadership In civilian land
remote-sensing from space.
TITLE IV-LICENSING OF PRIVATE
REMOTE-SENSING SPACE SYSTEMS
GENERAL AUTHORITY
Sic. 401. The Secretary is authorized,
after consultation with other appropriate
Federal agencies, to grant, suspend, modify,
or revoke licenses under this title, and to
take any other such actions as he deems
necessary in order to carry out the provi-
sions of this title.
CONDITIONS FOR OPERATION
SEC. 402. (a) No private sector party may
operate any remote-sensing space system
which is subject to the jurisdiction or con-
trol of the United States (as determined by
the Secretary) without a license pursuant to
section 403.
(b) Any license issued pursuant to section
403 shall be subject to the following condi-
tions:
(1) The system shall be operated in such
manner as to preserve and promote the na-
tional security of the United States and to
observe and implement the international
obligations of the United States.
(2) Digital remote-sensing data shall be
made available to all potential users on a
nondiscriminatory basis.
(3) No license issued under this title shall
protect the licenseholder from fair competi-
tion from other licenseholders.
(4) Any private sector party-proposing to
be licensed under section 408 shall agree, as
a condition for the receipt of such license,
that prior to disbanding or terminating op-
erations under the license, the licenseholder
will make disposition of any orbiting satel-
lites in a manner satisfactory to the Presi-
dent.
(5) Any private sector party proposing to
be licensed under section 403 shall agree, as
a condition for the receipt of Such license,
to provide to the Secretary any data gener-
ated under such license which the Secretary
may request for the purpose of archiving
pursuant to section 602.
(6) For the purposes of ensuring compli-
ance with the provisions of this Act con-
cerning nondiscriminatory access to data,
any private sector party proposing to be li-
censed under section 403 shall agree, as a
condition for the receipt of such license-
(A) to notify the Secretary of any "value-
added" activities (as defined by the Secre-
tary by regulation) that will be conducted
by the licensee or by a Subsidiary or affiliate
of the licensee; and
(B) to provide the Secretary with a plan
for the conduct of such activities which will
ensure compliance with such provisions con-
cerning nondiscriminatory access.
AUTHORITY OF THE SECRETARY
Sec. 403. (a) The Secretary Is authorized
to license qualified private sector parties to
operate civil remote-sensing space systems
in accordance with the provisions of this
Act.
(b) Any license issued under subsection is)
shall be in effect for such period as the Sec-
retary may specify. -
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CONGRESSIONAL RECORD - HOUSE April 9, 1984
(c) Any private sector party may apply to
the Secretary for issuance, transfer, or ter-
mination of a license under this title in a
form and manner prescribed by the Secre-
tary. Each application under this section
shall set forth the activities proposed to be
carried out under the license, including
measures taken to comply with those oper-
ating requirements specified in section 402
of this Act.
(d) No license shall be granted by the See-
retary unless he determines in writing that
the applicant will comply with the require-
ments of this Act, the regulations issued
pursuant to this Act, and the international
obligations and national security concerns
of the United States. The Secretary shall
review any application and make a determi-
nation thereon within one hundred and
twenty days of the receipt of an application.
If final action has not occurred within such
time, the Secretary shall inform the appli-
cant of any pending issues and of actions re-
quired to resolve them.
(e) The Secretary may revoke, suspend, or
modify a license issued under this title if
the Secretary determines and notifies the 11-
censee in writing that the licensee has sub-
stantially failed to comply with any provi-
sion of this Act, with any regulation issued
under this Act, with any terms, conditions,
or restrictions of such license, or with any
International obligation or national security
concern of the United States.
(f) Any applicant or licensee who makes a
timely request for review of a denial of issu-
ance or transfer; revocation; suspension;
conditioning; or modification of a license
shall be entitled to adjudication by the Sec-
retary on the record after an opportunity
for an agency hearing with respect to such
denial, revocation, suspension, conditioning,
or modification. Any final action by the Sec-
retary under this subsection shall be subject
to judicial review under chapter 7 of title 5,
United States Code.
REGULATORY AUTHORITY OF THE SECRETARY
SEC. 404. (a) The Secretary may issue reg-
ulations to carry out the provisions of this
title.
(b) Regulations issued by the Secretary
under this title shall be promulgated only
after public notice and comment in accord-
ance with the provisions of section 553 of
title 5, United States Code.
ENFORCEMENT AUTHORITY OF THE SECRETARY
SEC. 405. (a) Each license issued by the
Secretary shall require the licensee-
(1) to allow the Secretary or his designat-
ed officers to inspect any financial or busi-
ness records associated with remote-sensing
or "value-added" activities, and
(2) to allow the Secretary or his designat-
ed officers to inspect any space-related or
ground segment hardware or software to be
utilized by the licensee in remote-sensing ac-
tivities.
(b) It is unlawful for any person to violate
any regulation or provision of any license
issued under this Act, to violate any space
treaty or law implementing any space
treaty, or to prevent or inhibit the monitor-
ing of remote-sensing activities or "value-
added" activities by the Secretary or his
designated officers..
(c) Any person who after notice and op-
portunity to be heard in accordance with
title 5, United States Code, is found by the
Secretary to have committed any act pro-
hibited by subsection (b) shall be liable for a
civil penalty of not more than $10,000 for
each violation. Each day of continuing oper-
ation in violation shall constitute a separate
violation. The Secretary may compromise,
modify, or remit any such civil penalty.
(d) For the purpose of conducting any
hearing under this section, the Secretary
may issue subpenas for any materials, docu-
ments, or records, or for the attendance and
testimony of witnesses.
(e) In carrying out his enforcement re-
sponsibilities, the Secretary may-
(1) seize any object, record, or report
where it reasonably appears that such was
used, is being used, or is likely to be used in
violation of this Act; or
(2) make investigations and inquiries and
administer to or take from any person an
oath affirmation or affidavit concerning any
matter relating to the enforcement of this
Act.
(f) The Secretary is authorized to termi-
nate any licensed operations on an immedi-
ate basis when it reasonably appears that
operation in violation of any provision of
this Act, or any provision of a license issued
under this Act, or of any obligation of the
United States under a space treaty, would
be detrimental to the national interest.
AGENCY ROLES
Sac. 406. (a) A private sector party may
apply for a license to operate a-remote-sens-
ing space system which utilizes, on a space-
available basis, a civilian United States Gov-
ernment satellite or vehicle as a platform
for such system.
(b) The Secretary, pursuant to the au-
thorities of this title, may license such
system if it meets all conditions of this Act,
and if-
(1) the applicant agrees, as a condition for
the receipt of such license, to reimburse the
Government immediately for all related
costs incurred with respect to such utiliza-
tion, including a reasonable and proportion-
ate share of fixed, spacecraft, data transmis-
sion, and launch costs; and
(2) such utilization would not interfere
with or otherwise compromise the intended
Government missions, as determined by the
agency responsible for the satellite or vehi-
cle.
(c) The Secretary may offer assistance to
private sector parties in finding appropriate
opportunities for such utilization.
(d) Federal agencies are authorized to
enter into agreements for such utilization if
such agreements are consistent with the
agency's mission, statutory authority, and
appropriation Acts, and if such remote-sens-
ing space system is licensed by the Secre-
tary.
(e) The provisions of this section do not
apply to activities carried out pursuant to
title V.
TERMINATION
SEC. 407. If, five years after the expiration
of the six-year period described in section
302(b)(2), no private sector party has been
licensed and continued in operation under
the provisions of this title, the authority of
this title shall terminate.
TITLE V-RESEARCH AND
DEVELOPMENT
PURPOSE AND POLICY
SEC. 501. It is the purpose of this title to
provide for a comprehensive civilian pro-
gram of research, development, and demon-
stration to enhance the United States capa-
bilities for remote-sensing from space, as
well as to enhance the application and utili-
zation of such capabilities.
CONTINUED FEDERAL RESEARCH AND
DEVELOPMENT
SEC. 502. (a)(1) The Administrator of the
National Aeronautics and Space Administra-
tion is directed to continue and to enhance
such Administration's 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;
and
(C) conduct such research and develop-
ment in cooperation with other public and
private research entities, including private
industry, universities. State and local gov-
ernments, foreign governments, and inter-
national organizations, and to enter into ar-
rangements (including joint ventures) which
will foster such cooperation.
(b)(1) The Secretary shall conduct a Con-
tinuing program of-
(A) research in applications of remote-
sensing,
(B) monitoring of the Earth and its envi-
ronment; and
(C) development of technology for such
monitoring.
(2) Such program may include support of
basic research at universities.
(3) The Secretary is authorized and en-
couraged to conduct such research, monitor-
ing, and development in cooperation with
other public and private research entities,
including private industry, universities,
State and local governments, foreign gov-
ernments, and international organizations,
and to enter into arrangements (including
joint ventures) which will foster such coop-
eration.
(c) Other Federal agencies are authorized
and encouraged to conduct research and de-
velopment on the use of remote-sensing in
fulfillment of their authorized missions,
using funds appropriated for such purposes.
(d) The Secretary and the Administrator
of the National Aeronautics and Space Ad-
ministration shall, within one year after the
date of enactment of this Act and biennially
thereafter, jointly develop and transmit to
the Congress a report which includes (1) a
unified national plan for remote-sensing re-
search and development applied to the
Earth and Its atmosphere; (2) a compilation
of progress in the relevant ongoing research
and development activities of the Federal
agencies; and (3) an assessment of the state
of our knowledge of the Earth and its at-
mosphere, the needs for additional research
(including research related to operational
Federal remote-sensing space programs),
and opportunities available for further
progress.
USE OF EXPERIMENTAL DATA
SEC. 503. Data gathered in Federal experi-
mental space remote-sensing programs may
be used in related research and development
programs funded by the Federal Govern-
ment (including applications programs) and
cooperative research programs, but not for
commercial uses or in competition with pri-
vate sector activities, except as permitted by
section 504.
SALE OF EXPERIMENTAL DATA
SEC. 504. Data gathered in Federal experi-
mental space remote-sensing programs may
be sold en bloc through a competitive proc-
ess (consistent with national security inter-
ests and international obligations of the
United States) to any United States entity
which will market the data on a nondiscri-
minatory basis.
TITLE VI-GENERAL PROVISIONS
NONDISCRIMINATORY DATA AVAILABILITY
SEC. 601. (a) Any digital remote-sensing
data generated by any system operator
under the provisions of this Act shall be
made available to all users on a nondiscri-
minatory basis in accordance with the re-
quirements of this Act.
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H 2472 CONGRESSIONAL RECORD - HOUSE
sharpened as a result of several specif-
ic commercialization proposals.
The jurisdiction for this matter is
shared between my subcommittee and
the subcommittee chaired by the gen-
tleman from New York (Mr. SciEuzx).
We held hearings beginning in April
1983 and continuing in June and July.
In November, we held hearings on
draft legislation. In February of this
year we introduced H.R. 4836, and had
hearings on that bill in March. Based
on testimony and comments from in-
dustry and agencies, a clean bill, H.R.
5155, was introduced on March 15 and
reported by the Committee on Science
and Technology on March 27, 1984,
without amendment.
Mr. 'Speaker, I have taken the time
to recount this history because the
Members should know that this bill
has been given careful consideration.
We have not lightly dealt with the
commercialization of our Nation's
space remote-sensing capability.
The committee has always support-
ed the commercialization of space
technology when appropriate, while
realizing that such commercialization
might need statutory policy guidance
on a case-by-case basis.
We have always intended for land
remote sensing to be commercialized
because so many of its applications are
commercial. The marketing efforts of
a private sector operator will result in
wider use of the data and commercial
pressures for efficiency will result in
more cost-effective technology.
Despite the committee's feeling that
this remote-sensing technology should
be commercialized, we also realized
that there need to be safeguards to
protect the public and the national in-
terest. The committee has therefore
looked carefully at this commercializa-
tion process.
Mr. Speaker, many Members may re-
member that some of the proposals
floating around about this time a year
ago were a mockery of commercializa-
tion. For example, there were propos-
als to commercialize the weather satel-
lites. Leaving aside the potential ad-
verse effects on public safety, these
proposals would have amounted to es-
tablishing a monopoly and then giving
it a cost-plus contract. Obviously, this
would have resulted in none of the ef-
ficiencies we -expect from private-
sector operation. Of course, H.R. 5155
prohibits commercialization of weath-
er satellites.
There have also been proposals that
would allow a private system operator
to sell data to some users but not to
others. One bad effect of this would be
to allow grain speculators to profit at
the expense of American farmers. By
establishing a firm policy of nondiscri-
minatory access to data. H.R. 5155
would prevent such abuses.
I hope these examples have made it
clear that we have brought to the
floor a bill that every Member can
support.
Mr. Speaker, let me now briefly out-
line the provisions of the bill.
Title I contains findings, purposes,
policies, and definitions. An important
policy established here would call for
nondiscriminatory data access.
Title II provides for the first phase
of commercialization which would be
marketing of data from the existing
Landsat system. Title to the system
would remain with the Government.
Title III provides for the next phase
of commercialization by authorizing
limited Federal assistance for a pri-
vate system to follow Landsat. This as-
sistance would be awarded after a com-
petitive process.
Title IV contains procedures for a
simple licensing of private system op-
erators.
Title V is very important because it
authorizes and directs a vigorous Fed-
eral R&D program to insure that the
United States maintains its preemi-
nence in this field.
Title VI contains general provisions,
the most important of which is the
statutory establishment of a data ar-
chive.
Title VII contains a simple. prohibi-
tion of commercialization of weather
satellites.
Mr. Speaker, at this point I would
like to explain the provisions of the
bill. H.R. 5155 is written in seven
titles. There are three progressive
phases of commercialization of land
remote sensing established in titles II,
III, and IV of the bill. The other titles
provide a favorable context for the
commercialization process.
Title I contains findings, purposes,
policies, and definitions. Section 103(c)
of the bill establishes as policy of the
United States that civilian digital
remote-sensing data shall be made
available to all potential users on a
nondiscriminatory basis. Also, section
104 of the act spells out the definition
of this term-on a nondiscriminatory
basis-so as to allow as much commer-
cial flexibility as possible without fa-
voring one buyer or class of buyers
over another.
Title II provides for the first phase
of commercialization. A contractor
would be selected to market all new
and archived data from the existing
Landsat system and would also be per-
mitted if he desired, to contract for
operating that system. The Secretary
would continue to own this system
while the private sector contractor de-
velops a market and makes data avail-
able to users. This will preserve data
continuity while the private sector
builds the follow-on land remote-sens-
ing space system provided for by title
III.
Title III provides for a 6-year transi-
tion period as the next phase of com-
mericalization with the 6-year period
defined in terms of assurance of data
continuity. The Secretary of Com-
merce is authorized to pay some of the
capital costs of a private sector opera-
tor who will provide the system capa-
bility necessary to assure data continu-
ity for the 6-year period. This capital
payment is, in effect, a subsidy to help
April 9, 1984
the private-sector party build and
launch the necessary system. The Sec-
retary would be required to go
through a competitive selection proc-
ess and one criterion for selection of
the private-sector operator would be
the amount of subsidy required.
The committee believes that the 6-
year period will be an adequate
amount of time to determine whether
or not the land remote-sensing busi-
ness will be commercially viable. If
such a business cannot be sustained by
sale of data, then we will be faced with
a decision as to whether we want to
continue with Federal support or
simply to take this Nation out of land
remote-sensing altogether.
The provisions of H.R. 5155 give the
Secretary some latitude in how to pro-
ceed with the commercialization proc-
ess. For example, nothing in the bill
would prohibit the Secretary from
combining the procurements called for
in title II and title III into one action.
However, if such an action did not
result in accomplishing the objectives
of both titles II and III, the Secretary
would be required to proceed with sep-
arate procurement actions.
Title IV provides a procedure for li-
censing all private system operators
including the operator receiving the
subsidy under title III. The con-
straints that would be placed on li-
cense holders are few, but would in-
clude nondiscriminatory data access
and foreign policy and national secu-
rity limitations. This title also estab-
lishes administrative procedures and
regulatory and enforcement authori-
ties for the Secretary of Commerce.
Title V authorizes and encourages
continued Federal research and devel-
opment in civil space remote sensing.
Our committee strongly believes that
the transfer of operational responsibil-
ity to the private sector does not re-
lieve the Federal Government of its
obligation to conduct long-term, high-
risk research in remote sensing. This
title therefore spells out research
mandates for both NOAA and NASA
and encourages agencies using remote-
sensing data to carry out applications
research. In addition, sections 503 and
504 taken together provide that data
generated in experimental remote-
sensing purposes can be used for re-
search purposes without limitation but
can be used for commercial purposes
only in a way that will not undercut
any private-sector operator. This is
achieved by requiring that such ex-
perimental data be sold en bloc on a
commercial, that is competitive, basis.
Title VI contains several general
provisions, perhaps the most impor-
tant of which is the requirement that
the Secretary of Commerce establish
an archive of land remote-sensing data
for historical, scientific, and technical
purposes, including long-term global
environmental monitoring. This provi-
sion will insure that many of the
public benefits of land remote sensing
are indeed preserved once the commer-
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April 9, 1984 CONGRESSIONAL RECORD - HOUSE
cialization process is underway. Sec-
tion 609 authorizes the appropriation
of $10 million for fiscal year 1985 for
carrying out the provisions of section
302, title IV, and section 602 of the
bill. Section 302 contains the language
providing for the payment of capital
costs of a follow-on system to assure
data continuity for 6 years. The $10
million authorized here will not be
sufficient to pay for that system. We
expect that the requirement for build-
ing the follow-on system will be sever-
al times the amount authorized, but it
will certainly be less than present
Government costs to procure and op-
erate a land remote-sensing system.
Title VII would prohibit the com-
mercialization of weather satellites at
this time. The language of this title
amounts to a rather strict prohibition
of any effort to commercialize those
systems and provides that no such
effort may be made by the President
or any official until title VII has been
repealed.
Mr. Speaker, I believe that from this
description it is clear that we have
worked hard on this bill and have
dealt with all of the problems that
have existed in earlier commercial
tion proposals. I urge my colleagues to
support H.R. 5155.
Mr. DASCHLE. Mr. Speaker, will
the gentleman yield?
Mr. VOLKMER. I yield to the gen-
tleman from South Dakota.
(Mr. DASCHLE asked and was given
permission to revise and extend his re-
marks.)
Mr. DASCHLE. Mr. Speaker, I rise,
not so much in opposition to H.R.
5155, a bill setting forth guidelines and
parameters for the possible commer-
cialization of the Landsat system, as I
do to express some very serious con-
cerns on my part as to the necessity
and the ultimate wisdom of the entire
Idea of commercialization. As a set of
guidelines, I compliment the commit-
tee on Its product as reflected in this
bill. As far as possible, it does produce
guidelines that will assure continued
access to data at the least possible cost
to the Government under commercial-
ization.
On the other hand, as I have Indicat-
ed, I wonder If, in fact. the commer-
cialization of this function is indeed in
the national interest. The Information
gathered by the'Landsat system does
provide manifold benefits in the na-
tional interest. The argument for com-
mercialization, as Is exhibited in the
committee report on this legislation, is
that commercialization of the system
will provide greater data markets, and
that the Federal Government can con-
tract for the data it desires with the
private interests running the system.
However, in testimony before the Sub-
committee on Science and Applica-
tions on June 21, 1983, Dr. John W.
Townsend, president of Fairchild
Space Co., said the following:
This statement will probably be viewed as
heresy by my Industrial colleagues, but the
real forcing function for increasing industri-
al productivity and efficiency is competi-
tion. In a sole source dtastien, the only
man . -ent motivation Is to inczease prof
its as far as pose a untll checked through
regulation or negotiation.
This statement, I think calls Into
real question the proposed savings
that commercialization will bring to
the Federal Government. We only
have to look at sole source contractors
for the Pentagon to see how well this
system works.
On the other hand, given the admin-
istration's fervor for commercializa-
tion, and the fact that It has already
Involved itself in RFP's on this matter,
the likelihood of the administration
expanding the Landsat system to fill
existing and future needs is doubtful.
Two months ago, we launched Landsat
5, the last planned satellite in the
Landsat system. There are obviously
no further plans by the administration
to launch any further Landsat satel-
lites, or to upgrade our present facili-
ties. Without this administration sup-
port, it is unlikely that Congress, on
its own, will provide either the au-
thorizations or ' further funding for
these desirable expansions. So, by de-
fault, however distasteful, it appears
that this commercialization may be
the only way we can continue to
expand the data we need.
I am disappointed that the adminis-
tration has been so short-sighted on
this issue. I am further disturbed that
the committee bill before us today
does not, to my understanding, provide
for congressional approval of any spe-
cific contract the Secretary of Com-
merce may enter into relative to this
Issue. Given the administration's pro-
pensity for privatization, no matter
what the ultimate cost to the citizens
of this country, I am afraid that this
approach will indeed leave the fox
guarding the chicken coop.
It does appear, however, that, given
the administration's refusal to support
updating of the system, commercial-
ization may be the only way to go. I
do, however, have some specific ques-
tions that I would like to address to
the manager of the bill, relative to
title VI of the bill, dealing with archiv-
ing, and the role the EROS Data
Center may play In that function.
In the last analysis, I feel that this
commercialization is premature and
may wind up costing us more than It
saves, while at the same time it may
well be denying us access to the data
we need. The administration's single
minded pursuit of privatization, com-
bined with its stubborn refusal to
update the present Landsat system,
may be forcing us Into a very foolish
mistake.
I am particularly concerned over the
role that the EROS data center in
South Dakota will have in the future
of any commercialized Landsat data
collection and dissemination system.
As you are swam, the EROS data
center currently is actively involved in
archiving data of the type we are talk-
Ing about here and is, to my knowl-
H 2473
edge, the only facility currently doing
so. Is it your perception of the thrust
of H.R. 5155 that there is a role for
the continuation of this archiving
function at EROS, and. even more Im-
portantly, an expanded role for such a
function?
Mr. VOLKMER. Mr. Speaker. I
thank the gentleman for his question.
Indeed, I am aware of the valuable
role played by the EROS data center
in archiving this and many other kinds
of data. I am further aware that the
current RFP process underway In the
Department of Commerce does not
mandate that a government archive
would be maintained. Further, the ad-
ministration position In the decision
memorandum announced an March 8,
1983, was either to'commerclalize land
remote sensing or to drop it entirely.
H.R. 5155 both provides for contin-
ued Federal support for land remote
sensing until It can be commercialised
successfully, and also In section 602
mandates that the Secretary of Com-
merce maintain a data archive. And as
you have suggested H,& 5153 calls for
a "global" data set which would
expand the role of the EROS data
center.
Mr. DASCHLE. If the gentleman
will yield further, again. Just for a
point of clarification. This bill does
not, of course, mandate the commer-
cialization of any Landsat facilities. It
is correct to say that this legislation
leaves to the discretion of the adminis-
tration, within the guidelines outlined
here, the final decision as to the over-
all question of eommercla ion, and
to the acceptance of a specific con-
tract?
Mr. VOLKMER. The gentleman is
correct. Section 201(cxl) prohibits the
transfer to the private sector of any
part or all of the Landsat system. Fur-
ther, section ? 201(d) gives the Secre-
tary of Commerce authority to contin-
ue operating the Landsat system if no
acceptable contract em be reached.
There is similar language In section
302(d) regarding a follow-on system.
For example, we would not want the
Secretary to accept a proposal that
would cost the Government more
money or that would preclude the ar-
chiving function. Our intent Is to
pursue commercialization while pro-
tecting the public interest.
Mr. DASCHLE. Mr. Speaker, if the
gentleman will further yield, I want to
thank the gentleman for this informa-
tion.
Mr. BATEMAN. Mr. Speaker, will
the chairman of the sdboommittee,
the gentleman from Missouri (Mr.
VoiKwm), yield for the purpose of a
question?
Mr. VOLKMER. I yield to the gen-
tleman from Virginia.
Mr. BATEMAN. Mr. Speaker, I
would like to pose a question to the
chairman, in the hope that we might
clarify the committee's intent with
reference to a part of the language
that is in the committee report.
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CONGRESSIONAL RECORD - HOUSE April 9, 1984
On page 30 of the committee report,
there is a paragraph relating to title
VII of the bill that I believe might
lead to an unfortunate and unintended
interpretation of the committee's
intent. That paragraph states:
The committee further notes that title
VII does not in any way prohibit the Secre-
tary from carrying out his responsibility to
operate the weather satellites by means of
contracts with private sector operators.
Would the chairman agree that the
transfer of the functions of the Wal-
lops Command and Data Acquisition
Station to a private sector operator by
contract is prohibited by title VII?
Mr. VOLKMER. Yes, I agree with
the gentleman from Virginia. The Sec-
retary must continue to operate the
weather satellites and such a transfer
would certainly constitute a commer-
cialization that would be a clear viola-
tion of title VII, and the committee
did not intend to leave any other im-
pression. The purpose of the para-
graph the gentleman refers to was to
indicate that NOAA's current practice
of contracting for certain limited func-
tions would continue to be acceptable
practice. For example, I understand
certain maintenance functions are now
contracted to the original equipment
manufacturers. If cost effective, this
could continue.
Mr. BATEMAN. Mr. Speaker, I
thank the gentleman for his clarifying
remarks.
Mr. VOLKMER. Mr. Speaker, I re-
serve the balance of my time.
Mr. LUJAN. Mr. Speaker, I yield
myself such time as I may consume.
Mr. Speaker, I rise in support of the
bill. Over the past 11 years, more than
20 bills were introduced dealing with
remote-sensing issues. Although land
remote sensing has had strong support
from Congress throughout its history,
there has been a long series of reports,
studies, recommendations, and hear-
ings on the issues.
Last year, the President announced
his policy to have the Department of
Commerce consider the feasibility of
transferring the remote-sensing
system to the private sector. Since
then, there has been a lot of confusion
about the President's proposal. The
President did not decide to sell the
weather satellites, but rather asked
the Department of Commerce to de-
termine if it was feasible. Since the
transfer of the weather satellites is
not considered to be appropriate now,
this bill prohibits commercialization of
weather satellites.
In contrast, the transfer of the land
remote-sensing system to the private
sector is not only feasible, but very ap-
propriate. It is the Government's role
to do the basic research and develop-
ment and then transfer the technol-
ogy to the private sector. From the be-
ginning of the Landsat program, it has
been assumed that the technology
would eventually be commercialized.
Unfortunately, up until now, no defi-
nite plan was ever developed for com-
mercialization. This bill provides an
excellent, well-thought-out approach
to allow Landsat to evolve into a prof-
itable private sector enterprise. The
Committee on Science and Technology
and the Congress as a whole have sup-
ported commercialization of space
technology over the years. This bill is
a continuation of that philosophy.
Furthermore, the bill is consistent
with the administration's position, and
in fact is intended to be completely
complementary to the process being
followed by the Department of Com-
merce.
For these reasons, I urge my col-
leagues to join me in support of this
bill.
? Mr. SCHEUER. Mr. Speaker, I rise
in support of H.R. 5155, the Land
Remote-sensing Commercialization
Act of 1984.
As the gentleman from Missouri
(Mr. VOLKMER) indicated, the issues
which underlie this legislation have
been carefully considered during the
course of nine joint hearings that our
two subcommittees have held over the
year. As a result of this careful consid-
eration and of the efforts that we have
made to meet Members' concerns,
H.R. 5155 enjoys strong bipartisan
support on the Committee on Science
and Technology. In addition, on the
basis of testimony that we received in
March of this year from the Director
of the Source Evaluation Board for
Civil Remote-Sensing, the bill is, in
the main, strongly endorsed by the ad-
ministration.
The level of cooperation between
the Congress and the administration
on this issue is remarkable in light of
the intractable impasse which existed
not 1 year ago. There are two reasons
why we have come such a long way
since then. First, during the fall of last
year, the Congress passed concurrent
resolutions and ultimately an appro-
priations bill which finally laid to rest
the administration's ill-conceived pro-
posal to sell the Nation's weather sat-
ellites. Second, there has been a grow-
ing consensus that it is now timely and
in the public interest to begin the or-
derly transition toward commercial op-
eration of civil remote-sensing from
space. H.R. 5155 is responsive to this
need; it constitutes a sound approach
to establishing a market-based com-
mercial system, without compromising
our national security, public safety, or
international interests.
I have been greatly encouraged over
the past several months that the ad-
ministration, under the leadership of
the Department of Commerce, has
modified its policies to the point that
they are nearly alined with the poli-
cies embodied in the legislation that
we are considering today. This move-
ment by the administration has been a
very positive step, signaling to me that
we can reach agreement quickly on
the issue of land remote-sensing com-
mercialization. Consensus and quick
legislative action are absolutely essen-
tial if the United States is to avoid
handing over to foreign competitors a
technology that is ripe for commer-
cialization.
Mr. Speaker, I would like to expand
on what the gentleman from Missouri
(Mr. VOLKMER) has said and provide
some further detail on a few of the
major issues that arose during the
consideration of the legislation. First,
the committee was aware that Public
Law 98-166 prohibited the "expenditure
of funds in fiscal year 1984 on any pro-
posal to transfer the Nation's civij
weather satellites to the private
sector. In adopting title VII of H.R.
5155, the committee has taken this
prohibition one step further: Any
future actions leading toward commer-
cialization of weather satellites would
not be permitted until such time as
title VII is repealed.
We have taken this strong position
because all of the evidence that the
committee has heard indicates that
sale of the weather satellites would be
a terrible deal for the U.S. taxpayer.
Sale of the satellites would not lead
toward a truly competitive and com-
mercial situation, but rather toward a
monopoly in which the only custom-
er-the U.S. Government-would be
dependent upon both the technical
competence and the good will of a
single company operating under the
security of a long-terms, cost-plus con-
tract. In all likelihood, this monopoly
would end up costing the Government
Whore than it presently expends for
government operation of weather sat-
ellites.
Economics aside, the sale would have
extremely serious implications for
both national security and public
safety. Selling the weather satellites
would necessitate significant, and per-
haps unwieldy, oversight and regula-
tion by the Department of Defense,
which relies on civil weather satellite
data both in its routine operations and
in emergencies. The threat to public
services arises because a private opera-
tor with a secure, long-term contract
would have little motivation to im-
prove his services. As a result, technol-
ogy would stagnate, which would hurt
everyone who relies on weather infor-
mation: the farmer, the pilot, the citi-
zen dependent on Federal tornado and
hurricane warnings.
In placing restrictions on commer-
cialization of weather satellites, we
wanted to avoid a repetition of the
events of late 1983, when American in-
dustry was asked to expend millions of
dollars in responding to an RFP
which, because of its inclusion of
weather satellites, had very little
chance of success.
A second issue of great concern to
the committee was the necessity, while
effecting the transition of land remote
sensing to the private sector, of pre-
serving legitimate national security
concerns and international commit-
ments of the United States. These
issues have been very thoughtfully
raised by the gentleman from Texas
(Mr. BROOKS) and thoroughly dis-
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cussed in recent publications by the
General Accounting Office and the
Office of Technology Assessment.
The international and national secu-
rity aspects of remote sensing are pre-
cisely the areas which necessitate con-
tinuing Government oversight and
control of private space ventures. In
the area of national security, it would
clearly be inappropriate for the U.S.
Government to permit its citizens to
engage in activities that amount to in-
telligence gathering as a commercial
enterprise. In the area of international
relations, the Landsat program has
served as a valuable foreign policy tool
for over a decade, in a number of
direct and indirect ways. We have pro-
vided data, services, and training in
land remote sensing as a form of for-
eign aid to over 40 nations worldwide.
By the same token, these exchanges
have helped to open lines of communi-
cation between U.S. political and busi-
ness interests and the governmental
and technical infrastructure of these
nations.
Further, by providing land remote-
sensing data without prejudice or fa-
vored access, the U.S. civil remote-
sensing program has been free from
charges of military surveillance or eco-
nomic exploitation. By maintaining
this high ground, we have been able to
argue credibly in international fora
that any nation should have a right to
observe any other country from
space-the so-called open skies policy
which has served our national inter-
ests well since its first articulation by
President Eisenhower.
We have worked closely with the na-
tional security agencies, the Depart-
ment of State, and other congressional
committees to insure that H.R. 5155
protects and preserves these vital in-
terests. The legislation does so by des-
ignating the Secretary of Defense and
the Secretary of State as responsible
for identifying those national security
and international concerns which
must be met by any private operator.
The Secretary of Commerce would ul-
timately be responsible for implement-
ing these provisions and for monitor-
ing their compliance through a licens-
ing procedure. I am confident that
these provisions will protect our na-
tional interests without unduly ham-
pering a commercial operator.
Another issue which surfaced in the
consideration of this legislation was
the need for a continuing Federal role
in the monitoring of the global envi-
ronment from space. Land remote-
sensing technology provides the op-
portunity for observing at regular in-
ternals small-scale and large-scale
changes in the features of the Earth.
For example, it is possible to use this
technology to observe changes in the
health and extent of the world's for-
ests and crops; to record land-use
changes; and to monitor the gradual
impacts of air-borne and water-borne
pollutants on our natural resources.
Long-term monitoring of this sort is
a wise investment. It is because of
such long-term observations that we
now know that the Earth is slowly
warming as a result of the gradual
buildup of carbon dioxide in the at-
mosphere-the "greenhouse effect." It
is because we did not have adequate
monitoring in the past that we are
now groping for answers to the acid
rain problem.
We cannot expect a private operator
to maintain an extensive inventory of
data for the purpose of long-term envi-
ronmental monitoring. Environmental
monitoring is a legitimate Government
function, not a commercial activity.
The bill recognizes this and, in section
602, directs the Secretary of Com-
merce to create such an inventory and
to maintain it in such a way as to
guarantee the quality and usefulness
of the data for purposes of global envi-
ronmental monitoring.
Finally, let me touch on what I con-
sider to be the most important policy
issue in this debate-the issue of "non-
discriminatory data access." What I
mean by this ternm is, very simply,
that any private remote-sensing opera-
tor would have to make his data avail-
able to everyone on the same public
terms-he could not choose his cus-
tomers to favor one over another. I
have already indicated one reason why
nondiscriminatory access is so impor-
tant-it preserves the "high,ground"
for the U.S. Government during de-
bates in international fora over the
"open skies" policy.
But there are other, equally compel-
ling reasons for this policy. It would
encourage any operator to sell data
very broadly and to structure his mar-
keting efforts to reach as many cus-
tomers as possible. It protects the so-
called "value-added" firms, the real de-
velopers of the market, from unfair
practices by the system operator. And
it is likely to serve U.S. business and
political interests by facilitating sales
of both data and services provided by
U.S. firms.
I believe that it would be short-
sighted and unwise to allow any U.S.
company to sell remote-sensing data in
a proprietary manner. To do so would
be to risk both broad application of
the technology and our national good-
will in the interests of short-term and
very marginal commercial gains.
Mr. Speaker, the United States,
through the National Aeronautics and
Space Administration, developed the
land remote-sensing technology and
brought it to where it stands today-at
the brink of commercial exploitation.
Last month's responses to the adminis-
tration's RFP indicate that U.S. indus-
try is ready and able to enter the com-
petitive international marketplace in
this field. This legislation will enable
our aerospace companies to compete
effectively. They support the legisla-
tion, as does the administration and a
bipartisan coalition on the committee.
This is a good bill, and I urge all Mem-
bers to lend their strong support.*
? Mr. McGRATH. Mr. Speaker, I rise
in support of H.R. 5155.
H 2475
The commercialization of remote-
sensing satellite systems has been an
issue we have been debating in the Sci-
ence Committee for almost 4 years. I.
am extremely pleased that we finally
have a piece of legislation that seems
to address nearly all of the concerns
that have been expressed, and which
has broad bipartisan support. The dis-
tinguished chairman of the Science
Committee, DON FUQUA, is to be com-
mended for his leadership in bringing
this important legislation to the floor.
H.R. 5155 effects a gradual transi-
tion from Government to fully private
ownership and operation of civilian
land remote-sensing satellites. It also
complements the RFP process, which
is in its final stages at the Department
of Commerce.
Two major concerns which Members
expressed regarding the proposed com-
mercialization were that our national
security not be jeopardized and that
our international obligations be met.
H.R. 5155 contains a framework for in-
suring that these concerns are ad-
dressed, and also insures that any pri-
vate entrepreneur continues the cur-
rent U.S. policy of nondiscriminatory
access to land remote-sensing data.
A concern that I have expressed sev-
eral times is that commercialization of
this system be a good deal for the
American taxpayer. It calks for a defi-
nite end to the involvement of the
Federal Government in the operation-
al aspect of land, remote sensing after
8 years, if the Secretary has gone for-
ward with the process spelled out in
the bill. The one exception is that if
none of the bids received turn out to
be attractive, the Secretary is author-
ized to continue to operate the system.
Perhaps most important of all, H.R.
5155 provides for a market-driven
system. The private sector is encour-
aged to make many of the critical deci-
sions, and the technology above a
minimum baseline is not dictated, thus
allowing the system to be driven by
user needs.
I urge my colleagues to support this
important legislation.?
? Mr. ANDREWS of Texas. Mr.
Speaker, it is with distinct pleasure
that I rise today to speak on behalf of
the Land Remote Sensing Commer-
cialization Act of 1984, the final prod-
uct of a truly pioneering, cooperative,
and innovative effort on the part of
HAaou VoT.icM , chairman of the
House Science and Technology Sub-
committee on Space, JAm= Scivsa,
chairman of the Subcommittee on
Natural Resources, Agricultural Re-
search and the Environment, and their
talented staffs. The purpose of this
bill, Mr. Speaker, is to provide for the
phased transfer of our civil land
remote sensing capability to the pri-
vate sector in a way that opens up this
exciting field to private industry while
guaranteeing continued availability of
data, protecting national security in-
terests, and maintaining international
obligations and policies.
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CONGRESSIONAL RECORD - HOUSE April 9, 1984
The Federal Government's land
remote sensing program has been a
Government-supported experimental
research program since 1972. The last
in a series of five satellites, Landsat-5,
is currently orbiting the Earth at an
altitude of about 570 miles, gathering
data in both the visible and infrared
spectrum pertaining to features of the
Earth. That data can be processed into
highly desirable commercial informa-
tion in a growing variety of applica-
tions, including mineral and oil explo-
ration, predictions of agricultural yield
and crop health, agricultural classifi-
cation, land-use mapping, forest man-
agement, hydrology, cartography, and
environmental monitoring. That is the
beginning of what promises to become
a longer list.
The data provided by land remote
sensing satellites has tremendous com-
mercial potential, particularly if that
data is efficiently obtained, affordable,
and tailored to the specific needs of its
users. Even though the market for
this data has been suppressed by un-
certainty, studies project its dramatic
expansion. Passage of this bill will fa-
cilitate expansion of the land remote'
sensing data market by sending a posi-
tive and strong signal to investors that
Congress is willing not only to release
its hold on this potential new industry,
but lay out the ground rules for its de-
velopment and follow them.
H.R. 5155 will encourage a vigorous
private sector role in civilian land
remote sensing by creating a limited
duration, Government industry part-
nership during a transition period pre-
ceding a fully private financing and
operation of remote sensing. The Com-
merce Secretary would be authorized
to accept bids from private sector
firms to market data from the current
Landsat system. After the demise of
that system, the Secretary would
select and could partially finance a
private sector firm to build and oper-
ate a land-sensing system geared to
the needs of the marketplace. The in-
volvement of the Federal Government
would end after 6 years.
Mr. Speaker, I want to assure you
and other Members of the House that
this bill in no way sanctions the priva-
tization of weather satellites. In fact,
title VII of the bill states the commit-
tee's intention to prohibit future ac-
tions leading toward commercializa-
tion of weather satellites. And, as you
recall, last November, I sponsored and
the Congress approved House Concur-
rent Resolution 168 which expresses
the sense of the Congress that the
commercialization of weather satel-
lites is not appropriate. Not only are
there very limited commercial pros-
pects for weather information-the
Federal Government would be the
only customers-but weather satellites
are critical to national security. Be-
sides, the United States obtains from
other nations a great deal of informa-
tion critical to our military operations
in return for our weather satellite
data. Moreover, testimony before our
committee overwhelmingly demon-
strates the importance of the National
Weather Service to public safety, par-
ticularly in hurricane situations.
But it is not my purpose, Mr. Speak-
er, to argue against weather satellites.
Rather, I want to urge my colleagues
to support the Land Remote Sensing
Commercialization Act and congratu-
late Chairmen VOLKMER and SCHEUER
for a job truly well done.?
? Mr. NELSON of Florida. Mr. Speak-
er, I rise in support of the commercial-
ization of land remote-sensing satel-
lites commonly known as the Landsat
system.
The Science and Technology Com-
mittee has supported commercializa-
tion of research and development proj-
ects over the past few years when such
commercialization has been appropri-
ate. Presently, recognizing the need
for the Federal Government to insure
the continuity and availability of accu-
rate land remote-sensing data, this leg-
islation is now appropriate.
Landsat 5, launched March 1, 1984,
is the last of the planned land remote-
sensing satellites. In the fiscal year
1982 budget request, plans for funding
6 and 7 were dropped with the expec-
tation of the private sector to carry on
the program. Mr. Speaker, without
this legislation, those plans cannot be
ventured.
Further, in accomplishing commer-
cialization purposes, this legislation
takes into account the concerns of the
public by addressing national security
considerations, international obliga-
tions, and program continuity. This
legislation is well thought out and has
taken into account the concerns of the
American people.
I would encourage my colleagues to
recognize the need for this bill and to
give it favorable consideration.?
? Mr. BROOKS. Mr. Speaker, last ses-
sion Congress sent a very clear mes-
sage to the President that it had no in-
tention of allowing our Nation's
weather satellites to be sold to the pri-
vate sector. This bill gives us another
opportunity to transmit that same
message to the President to insure
that this proposal will not surface
again.
While it appears that the future of
the weather satellites has been settled,
the future of our Nation's land
remote-sensing satellite, known as
Landsat, has remained uncertain.
Last September, the Committee on
Government Operations held a hear-
ing to examine the foreign implica-
tions of the commercialization of
Landsat. The committee learned that
Landsat has been a significant maker
of international friends for the United
States over the years. It also found
that many of the nations around the
world have come to rely heavily on
Landsat data and are deeply con-
cerned that this information might
become either temporarily or perma-
nently unavailable because of the com-
mercialization effort. It became clear
that our friends abroad need some as-
surance that Landsat data will be
available continuously whether or not
the system was commercialized. In ad-
dition, they need to know that data
from Landsat would not be made avail-
able on a discriminatory basis.
For l5 years, the United States has
fought for the open skies policy which
allows all of our Nation's satellites to
fly without restrictions over every
nation in the world. Maintenance of
this policy hinges directly on the fact
that this country has made the infor-
mation acquired from civilian remote
sensing satellites freely available to all
nations of the world. Despite the im-
portance of this policy, the adminis-
tration has offered to renege on our
Nation's commitment to it if so doing
will facilitate the commercialization of
Landsat.
The bill before us mandates continu-
ation of the nondiscriminatory data
distribution regardless of whether
Landsat is run by the Federal Govern-
ment or a private operator. In addi-
tion, it maximizes the chances of as-
suring a continuous flow of data from
Landsat by establishing a clear timeta-
ble and framework for commercializa-
tion. I believe that it is very important
that we take the steps necessary to
assure the continuation of Landsat
and that we not deviate from our com-
mitment to the nondiscriminatory dis-
tribution of data.
For these reasons, I support this bill
and urge you to do the same.*
? Mr. FUQUA. Mr. Speaker, I rise in
support of H.R. 5155, the Landsat
Remote-Sensing Commercialization
Act of 1984. I want to congratulate my
colleagues Congressman VOLKMER,
chairman of the Subcommittee on
Space Science and Applications, and
Congressman SCHEUER, chairman of
the Subcommittee on Natural Re-
sources Agriculture Research and En-
vironment for their efforts and dili-
gence in perfecting this legislation.
This legislation reflects the continu-
ing interest and concern of the com-
mittee that an effective commercial
land remote sensing system develop
from the highly successful NASA
Landsat experimental program.
As a result of man's rapidly increas-
ing population, his rapidly rising
standard of living, his need for increas-
ing energy supplies, and his need for
ever increasing amounts of food, infor-
mation on Earth resources becomes
more important to our daily lives.
Today, more than- ever, man recog-
nizes that the capability of the Earth
to support life has limits and that to
survive he must seek more efficient
ways to manage his limited resources.
As supplies become more scarce, we
need more timely and accurate infor-
mation. Resource data requirements
extend to whole regions of the country
and with the highly interactive world
society in which we live, many activi-
ties involved with food, mineral re-
sources, and environmental effects re-
quire information on a global scale.
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This broad information base can
best be achieved though the use of
data gathered by satellites. In terms of
global coverage, this data can be up-
dated rapidly and frequently, can be
relatively easily understood, and can
be integrated into common formats for
general use. Data gathered by satel-
lites on Earth resources makes use of a
rapidly expanding technology often
referred to as remote sensing.
Without minimizing the technologi-
cal problems, there is good reason and
evidence to be confident about the
health and prospects of the technol-
ogy of remote sensing and its use. The
potential has been demonstrated in ge-
ology, oceanography, meteorology,
land management crop prediction, and
a host of other disciplines.
The Committee on Science and
Technology has held numerous hear-
ings on how to institutionalize an
operational land remote sensing
system beginning in 1977.
In October 1978 President Carter
called for a plan of action on how to
encourage private sector direct partici-
pation in the establishment and oper-
ation of civil remote sensing systems.
In November 1979 President Carter as-
signed to the Department of Com-
merce the management responsibility
for civil operational land remote sens-
ing activities and further provided for
the development of a time-phased
transition plan for transfer of the
system first to the Department of
Commerce and ultimately to the pri-
vate sector. In June 1980, a "transition
plan for civil operational land remote
sensing from space" was published by
the Department of Commerce which
Identified the actions required for im-
plementing a fully operational land
remote-sensing system from space,
with the eventual goal of private
sector ownership and operation of the
system.
In early 1981 President ~Reagan de-
leted funding for additional Landsat
satellites with the following justifica-
tion: "The present NASA investment
in Landsat is sufficient to permit eval-
uation of operational uses of Landsat
data and, if these uses are cost-effec-
tive, to attract a private sector owner/
operator." Since this time, delibera-
tions have continued in the adminis-
tration by,the Cabinet Council on
Commerce and Trade and the Depart-
ment of Commerce.
As my colleagues are aware, the ad-
ministration at one time proposed to
transfer both weather satellites and
land satellites to the private sector. I
want to assure my colleagues that
today we are dealing only with the
transfer of land remote sensing sys-
tems and that a prohibition to the
transfer of weather satellites is includ-
ed in title VII of the bill before this
body.
Mr. Speaker, this is an important
piece of legislation. This legislation es-
tablishes a policy frame work whereby
the United States will continue to be a
world leader in land remote-sensing
technology. This data Is used by sever-
al Federal department, by State and
local governments, by foreign govern-
ments including developing countries.
The data is also used by universities
and by many different industries. I
urge my colleagues to support H.R.
5155.
Mr. LUJAN. Mr. Speaker, I have no
further requests for time, and I yield
back the balance of my time.
GZNZRAL LZAVZ
Mr. VOLKMER.. Mr. Speaker, I ask
unanimous consent that all Members
have 5 legislative days in which to
revise and extend their remarks on
H.R. 5155.
The SPEAKER pro tempore. Is
there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. VOLKMER. Mr. Speaker, I have
no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The
question is on the motion offered by
the gentleman from Missouri (Mr.
VOLKsrER) that the House suspend the
rules and pass the bill. H.R. 5155.
The question was taken; and (two-
thirds having voted in favor thereof)
the rules were suspended and the bill
was passed.
A motion to reconsider was laid on
the table.
WHITE HOUSE CONFERENCE ON
SMALL BUSINESS
Mr. MITCHELL. Mr. Speaker, I
move to suspend the rules and pass
the bill (H.1 . 5298) to provide for a
White House Conference on Small
Business, as amended.
The Clerk read as follows:
H.R. 5298
Be it enacted by the Senate and House of
Representatives of the United States of
Atherica in Congress assembled, That this
Act may be cited as the "White House Con-
ference of Small Business Authorization
Act".
AUTHORIZATION or CONrzasNCS
Sac. 2. (a) The President shall call and
conduct a National White House Confer-
ence on Small Business (hereinafter re-
ferred to as the "Conference") not earlier
than January 1, 1985, and not later than
September 1, 1988, to carry out, the pur-
poses described in section 3 of this Act. The
Conference shall be preceded by State and
regional conferences with at least one such
conference being held in each State.
(b) Participants in the Conference and
other interested individuals and organiza-
tions, are authorized to conduct conferences
and other activities at the State and region-
al levels prior to the date of the Conference,
subject to the approval of the Administrator
of the Small Business Administration, and
shall direct such conferences and activities
toward the consideration of the purposes of
the Conference described in section 3 of this
Act in order to prepare for the National
Conference.
PURPOSE Or CONrZRXNCE
Sic. 3. The purpose of the Conference
shall be to increase public awareness of the
essential contribution of small business; to
identify the problems of small business;. to
H 2477
examine the status of minorities and women
as small business owners; to assist small
business in carrying out its role as the Na-
tion's job creator; to assemble smalj busi-
nesses to develop such specific and compre-
hensive recommendations for executive and
legislative action as may be appropriate for
maintaining and encouraging the economic
viability of small business and, thereby, the
Nation; and to review the status of recom-
mendations adopted at the 1980 White
House Conference on Small Business.
CONFZRZNCE PARTICIPANTS
Sae. 4. (a) In order to carry out the pur-
poses specified in section 3 of this Act, the
Conference shall bring together individuals
concerned with issues relating to small busi-
ness: Provided, That no small business con-
cern representative may be denied admis-
sion to any State or regional conference, nor
may any fee or charge be imposed on any
small business concern representative
except an amount to cover the cost of any
meal provided to such representative plus a
registration fee of not to exceed $10.
(b) Delegates, including alternates, to the
National Conference shall be elected by par-
t_cipants at the State and regional confer-
ences: Provided. That each Governor and
each chief executive official of the political
subdivisions enumerated in section 4(a) of
the Small Business Act may appoint one
delegate and one alternate: Provided fur-
ther, That each Member of the United
States House of Representatives, including
each Delegate, and each Member of the
United States Senate may appoint one dele-
gate and one alternate: And Provided fur-
ther, that the President may appoint one
hundred delegates and alternates. Only indi-
viduals from small businesses shall be eligi-
ble for appointment pursuant to this subsec-
tion.
PLANNING AND ADMINISTRATION OF CONrmRZNCE
Sac. 5. (a) All Federal departments, agen-
cies, and instrumentalities are authoried
and directed to provide such support and as-
sistance as may be necessary to facilitate
the planning and administration of the Con-
ference.
(b) In carrying out the provisions of this
Act, the Administrator of the Small Busi-
ness Administration-
(1) shall provide such assistance as may be
necessary of the organization and conduct
of conferences at the State and regional
level as authorized under section 2(b) of this
Act; and
(2) is authorized to enter into contracts
with public agencies, private organizations,
and academic institutions to carry out the
provisions of this Act.
(c) The Chief Counsel for Advocacy shall
assist in carrying out the provisions of this
Act by preparing and providing background
materials for use by participants In the Con-
ference, as well as by participants in State
and regional conferences; and
(d) Each Participant in the Conference
shall be responsible for his or her expenses
related to attending the Conference and
shall not be reimbursed either from funds
appropriated pursuant to this Act or the
Small Business Act.
(eX 1) The President is authorized to ap-
point and compensate an executive director
and such other directors and personnel for
the Conference as he may deem advisable,
without regard to the provisions of title, 5,
United States Code, governing appoint-
ments in the competitive service, and with-
out regard to the provisions of chapter 51
and subchapter III of chapter 53 of such
title relating to classification and General
Schedule pay rates.
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CONGRESSIONAL RECORD - HOUSE April 9, 1984
(2) Upon request by the executive direc-
tor, the heads of the executive and military
departments are authorized to detail em-
ployees to work with the executive director
in planning and administering the Confer-
ence without regard to the provisions of sec-
tion 3341 of title 5, United States Code.
REPORTS REQUIRED
SEC. 6. Not more than six months from
the date on which the National Conference
is convened, a final report of the Confer-
ence shall be submitted to the President
and the Congress. The report shall include
the findings and recommendations of the
Conference as well as proposals for any leg-
islative action necessary to implement the
recommendations of the Conference. The
final report of the Conference shall be avail-
able to the public.
FOLLOWUP ACTIONS
SEC. 7. The Small Business Administration
shall report to the Congress annually
during the three-year period following the
submission of the final report of the Confer-
ence on the status and implementation of
the findings and recommendations of the
Conference.
AVAILABILITY OF FUNDS
SEC. 8. (a) There are hereby authorized to
be appropriate such sums as may be neces-
sary to carry out the provisions of this Act,
and they shall remain available until ex-
pended. New spending authority or authori-
ty to enter contracts as provided in this Act
shall be effective only to such extent and in
such amounts as are provided in advance in
appropriation Acts.
(b) No funds appropriated to the Small
Business Administration shall be made
available to carry out the provisions of this
Act other than funds appropriated specifi-
cally for the purpose of conducting the Con-
ference. Any funds remaining unexpended
at the termination of the Conference, in-
cluding submission of the report pursuant
to section 6, shall be returned to the Treas-
ury of the United States and credited as
miscellaneous receipts.
SEC. 9. This Act shall become effective Oc-
tober 1, 1984.
The SPEAKER pro tempore. Is a
second demanded?
Mr. DAUB. Mr. Speaker, I demand a
second.
The SPEAKER pro tempore. With-
out objection, a second will be consid-
ered as ordered.
There was no objection.
The SPEAKER pro tempore. The
gentleman from Maryland (Mr.
MITCHELL) will be recognized for 20
minutes and the gentleman from Ne-
braska (Mr. DAUB) will be recognized
for 20 minutes.
The Chair recognizes the gentleman
from Maryland (Mr. MITCHELL).
(Mr. MITCHELL asked and was
given permission to revise and extend
his remarks.)
GENERAL LEAVE
Mr. MITCHELL. Mr. Speaker, I ask
unanimous consent that all Members
may have 5 legislative days in which to
revise and extend their remarks on the
bill under consideration.
The SPEAKER pro tempore. Is
there objection to the request of the
gentleman from Maryland?
There was no objection.
Mr MITCHELL. Mr. Speaker, I yield
myself such time as I may consume.
Mr. Speaker, in January of 1980,
some 1,700 delegates assembled to
hold a National Conference on Small
Business in Washington. These dele-
gates had been elected by the. 25,000
fellow small businesses who previously
attended 57 local conferences or had
been appointed by elected officials.
After a weeklong conference, these
delegates approved 60 recommenda-
tions. Of this number, the top 15 in-
volved taxation, inflation, and regula-
tion and were given top priority status
by the conference.
The Small Business Committee
promptly considered legislation, where
necessary, to implement the recom-
mendations. I am proud to report that
subsequently enacted legislation in-
cluded the Regulatory Flexibility Act,
the Small Business Innovation Devel-
opment Act, the Prompt Payment Act,
and several procurement initiatives, as
well as the inclusion of some of the
tax recommendation in the Economic
Recovery Tax Act.
I am also pleased to report that
these measures are being used as
models and legislation is being enacted
in many States to deal with these sub-
jects.
Mr. Speaker, next January, 5 years
will have elapsed since the prior con-
ference. I believe that after the elec-
tion this year, it is time to convene an-
other conference. Much was accom-
plished last time, but much more can
be done. As a result, I introduced H.R.
5298, and I was joined by more than 50
other Members as cosponsors, includ-
ing my ranking minority members, JOE
MCDADE.
Very simple, this bill authorizes the
President to hold a Small Business
Conference between January 1, 1985,
and September 1, 1986. This action
would be preceded by State and re-
gional conferences to elect delegates
who would be joined in Washington by
delegates appointed by the President,
Members of Congress, and Governors.
At the conclusion of the conference, a
report with findings and recommenda-
tions would be, made to the President
and the Congress.
Mr. Speaker, this bill unanimously
was endorsed by small business associ-
ations. It was approved on a bipartisan
basis by the members of the Small
Business Committee and I want to
thank all of the committee members
for their cooperation in facilitating ex-
peditious consideration of this bill. I
know of no opposition and I urge
speedy passage of this measure.
Mr. DAUB. Mr. Speaker, I yield
myself such time as I may consume.
(Mr. DAUB asked and was given per-
mission to extend his remarks.)
Mr. DAUB. Mr. Speaker, I rise in
support of H.R. 5298 establishing a
White House Conference on Small
Business to be convened by the Presi-
dent sometime between January 1,
1985, and September 1, 1986.
I want to commend the chairman of
our Small Business Committee, the
gentleman from Maryland (Mr.
MITCHELL) for the work that he has
put into creating a very important
piece of legislation that I think de-
serves and merits the support of all of
our colleagues in the House.
Having attended the 1980 White
House Conference on Small Business,
I believe that it was indeed a great suc-
cess. It called the attention of the
President and the Congress to the spe-
cial problems faced by small business
owners in the areas of capital forma-
tion, minority business enterprise, in-
novation and technology, procure-
ment, tax and Federal regulatory poli-
cies-just to name a few.
In the 4 years since that conference,
as the chairman has just indicated, a
number of pieces of legislation have
come to fruition as a result of the rec-
ommendations of that conference. We
have, as a matter of fact, accepted 11
of the 15 priority areas and ranked
those issues accordingly. Those were
the choices made by the delegates to
that particular conference.
The conference was also important
because it focused on the vital role
played by the small business sector in
the well-being of our American econo-
my, and it particularly talked about
ideas such as innovation, jobs creation,
and generally regulated tax issues.
It is time to reassess the status of
small business. This bill sets in motion
the mechanism whereby small busi-
ness owners across this country can
meet at State and regional levels to
discuss and offer solutions to problems
which concern them. These grassroots
proposals will be brought by elected
delegates to this White House Confer-
ence where an agenda for possible leg-
islative action will again be developed.
The passage of this legislation will
provide a tremendous service to the
small business community, and will
underscore our commitment to its suc-
cess. I urge my colleagues to support
H.R.52981
Mr. Speaker, I yield back the bal-
ance of my time.
0 1250
Mr. MITCHELL. Mr. Speaker, I
yield 5 minutes to our distinguished
colleague, the gentleman from Arizona
(Mr. McNULTY).
(Mr. McNULTY asked and was given
permission to revise and extend his re-
marks.)
Mr. McNULTY. I thank the gentle-
man for yielding this time to me.
Mr. Speaker, small business is the in-
fantry of American capitalism, and
that is the place where any recovery
that deeply affects the future well-
being of this country is going first to
occur. That is the place where the new
jobs will be generated, that is the
place where a breakthrough will be
announced that the matters that have
been troubling our economy in past
years are no longer with us.
Our economy is changing, though,
and it is becoming increasingly com-
plex, which means that small business-
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