COMMERCIAL SPACE LAUNCH ACT AMENDMENTS OF 1988

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R001400040012-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 27, 2016
• Document Release Date: September 9, 2013
• Sequence Number: 12
• Publication Date: November 9, 1988
• Content Type: MEMO

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tiiyii tiLit .
9 November 1988
MEMORANDUM FOR:
OCA
3725-88
Assistant/DS&T
Eexecutive
ExecutiveAssistant/DI
FROM:
Chief, Intelligence
Community Affairs/OGC
Legislation Division
Office of Congressional
Affairs
SUBJECT:
Commercial Space Launch Act Amendments of
1988
Attached is a copy of the above-captioned law, which was
passed by both houses of the Congress. If you have any
questions, you may telephone me on
Attachment
OCA
(9 November 1988)
Distribution:
Original - Addressees
1 - D/OCA (w/attachment)
- DDL/OCA (w/o attachment)
- OCA Records (WattachmenC)7
1 - OCA/Leg7SUbl-ett-File: Space Policy (a/attachment)
1 - Signer (w/o attachment)
1 - OCA Read (w/o attachment)
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LEGI-SLATE Report for the 100th Congress Fri, October 28, 1988 1105am (EDT)
Report for H.R.4399 Commercial Space Launch Act Amendments of 1988
As finally approved by the House and Senate lielbIt-ifD THE SECOND
SESSION
Complete Text of this version
One Hundredth Congress cE Lhe United States of America
? AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fifth day of January, one thousand nine hundred and eighty-eight
An Act
To facilitate commercial access to space, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION- 1. SHORT TITLE.
This Act may be cited as the "Commercial Space Launch Act Amendments of
1988".
SEC. 2. FINDINGS.
The Congress finds that--
(1) a United States commercial space launch industry is an essential
component of national efforts, to assure access to space for Government. and
commercial users;
(2) the Federal Government should encourage, facilitate., and promote the
use of the United:States commercial space launch industry in order to
continue United States aerospace preeminence;
(3) the United States commercial space launch industry must be
competitive in the international marketplace;
(4) Federal Government policies should recognize the-responsibility of
the Uni.ted States under international treaty for activities conducted by
United States citizens in space; and?
(5) the. United States must maintairia coMpetitive edge in international
commercial space transportation by ensuring continued research in launch
vehicle component technology and development.
SEC. 3. DEFINITIONS.
Section 4 of the Commercial Space Launch Act (49 U.S.C. App. 2603) is
amended--
(1)?in paragraph (10) by striking "and" at the end;
(2) by redesignating paragraph (11) as paragraph (12); and
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,(3) by inserting immediately after paragraph (10) the following new
paragraph:
"(11) 'third party' means any person OF entity other than--
"(A) the United States,.itt agencies, or its contractors or
subcontractors involved in llaunch services;
"(B) the licensee or transferee;
(C) the licensee's or transferee's contractors, subcontractors, or
customers involved in launch services; or
"(D) any such customer's contractors or subcontractors involved in
-launch services; and".
SEC. 4. PRIVATE ACQUISITION OF GOVERNMENT PROPERTY AND SERVICES.
(a) Section 15(a) of the Commercial Space Launch Act (49 U.S.0 App.
2614(a)) is amended by adding at the end the following: "In taking such
actions, the Secretary shall consider the commercial availability, on
reasonable terms and conditions, of Substantially equivalent launch property
or launch services from a domestic sOurce.".
(b). Section 15(b)(1). of the Commercial Space Launch Act (49 U.S.C. App.
2614(b)(1) is amended by adding at the end the following: "For purposes of
this paragraph, the term 'direct costs' means the actual costs that can by
unambiguously associated with a commercial launch effort, and would not be
borne by the United States Government in the absence of a commercial launch
effort.".
(c) Section 15 of the Commercial Space Launch Act (49 U.S.C. App. 2614) is
amended by adding at the end the following new subsection:
"(d) The head of any Federal agency or department may collect payment -For
activities involved in the production of a launch vehicle or its payload -for
launch if such activities were agreed to by the owners or manufacturers of
such launch vehicle or payload.".
SEC. 5. INSURANCE REQUIREMENTS OF LICENSEE.
(a) Section 16 of the Commercial Space Launch Act (4% U.S.C. App. ..oio) Is
amended to read as follows:
"Liability insurance
"Sec. 16. (a)(1)(A) Each license issued or transferred under this Act shall
require the licensee or transferee--
"(i) to obtain liability insurance; or
"(ii) to demonstrate financial responsibility,
in an amount sufficient to compensate the maximum probable loss (as determined
by the Secretary, after consultation with the Administrator of the National
Aeronautics and Space Administration, the Secretary of the Air Force, and the
heads of other appropriate agencies) from claims by a third party or death,
bodily injury', or loss of or damage to property resulting from activities
carried out under the license in Connection with any particular launch. In no
event shall a licensee or transferee be required to obtain insurance or
demonstrate financial responsibility under this subparagraph, With respect to
the aggregate of such claims arising out of any particular launch, in an
amount which exceeds (I) $500,000,000 or (II) the maximum liability insurance
available on the world market at a reasonable cost, if such insurance is less
than the amount in subclause (I).
"(B) Each license issued or transferred under this Act shall require the
licensee or transferee--
"(i) to obtain liability insurance; or
"(ii) to demonstrate financial responsibility,
in an amount sufficient to compensate the maximum probable loss (as determined
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LEGI-SLATE Report
Page 3 October 28, 1988
by the Secretary, after consultation with the Administrator of the National
Aeronautics and Space Administration, the Secretary of the Air Force, and the
heads of other appropriate agencies) from claims against any person by the
United States for loss of or damage to property of the United States resulting
from activities carried out under the license in connection with any
particular launch. In no event shall a licensee or transferee be required to
obtain insurance or demonstrate financial responsibility under this
subparagraph, with respect to the aggregate of such claims an out of any
particular launch, in an amount which exceeds (I) .$100,000,000 or (II) the
maximum liability insurance available on the world market at a reasonable
cost, if such insurance is less than the amount in subclause (I).
"(C) Each license issued or transferred under this Act shall require the
licensee or transferee to enter into reciprocal waivers of claims with its
contractors, subcontractors, and customers, and the contractors and
subcontractors of such customers, involved in launch services, under which
each party to each such waiver agrees to be responsible for any property
damage or loss it sustains or for any personal injury to, death of, or
property damage or loss sustained by its own employees resulting from
activities carried out under the license.
"(D) The Secretary, on behalf of the United States, its agencies involved in
launch services, and contractors and subcontractors involved in. launch
services, shall enter into reciprocal waivers of claims with the licensee or
transferee, its contractors, subcontractors, and customers, and the
contractors and subcontractors of such customers, involved in launch services,
under which each party to each such waiver aorees to be responsible for any
property damage or loss it sustains or for any personal injury to, death of,
or property damage or loss 'sustained by its own employees resulting from
activities carried out under the license. Any such waiver shall apply only to
the extent that claims exceed the amount of insurance or demonstration of
financial responsibility required under subparagraph (8). After consultation
with the Administrator o4 the National Aeronautics and Space Administration
and the Secretary of the Air Force, the Secretary may also waive, on behalf of
the United States and any Federal agency, the right to recover any damages for
loss of or damage to property of the United States to the extent insurance is
not available by reason of policy exclusions which are determined by the
Secretary to be usual -For the type of insurance involved.
"(2) Any insurance poli:cy obtained, or demonstration of financial
responsibility made, pursuant to a requirement described in paragraph (1)
shall protect the United States, its agencies, personnel, contractors, and
subcontractors, and all contractors, subcontractors, and customers of the
licensee or transferee, and all contractors and subcontractors of such
customers, involved in providing the launch services, to the extent of their
potential liabilities, at no cost to the United States.
"(3) The Secretary shall determine the maximum probable loss under paragraph
(1)(A) and (B) associated with activities under a license, within 90 days
after a licensee or transferee has required such a determination and has
submitted all information the Secretary requires to make such a determination.
The Secretary shall amend such determination as warranted by new information.
Within 12 months after the date of enactment of the Commercial Space Launch
Act Amendments of 1998, and within each 12-month period thereafter, the
Secretary shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Science, Space, and
Technology of the House of Representatives a report on the current
determinations with respect to all issued licenses and the reasons for those
determinations.
"(4) Within 6 months after the date of enactment of the Commercial Space
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LEGI -SLATE Report
Page 4 October 28, 1988
Launch Act Amendments of 1988, and within each 12-month period thereafter, the
Secretary shall review the amounts specified in paragraph (1)(A)(I) and
(8)(I), and shall submit a report to the Congress which, if appropriate,
contains a proposed adjustment to such amounts to conform with altered
liability expectations and availability of insurance on the world market. Such
proposed adjustment shall take effect 30 days after the submission of such
report.
"(b)(1) To the extent provided in advance in appropriations Acts or to the
extent there is enacted additional legislative authority to provide for the
payment of claims as submitted in the compensation plan outlined in paragraph
(4), the Secretary shall provide for the payment by the United States of
successful claims (including reasonable expenses of litigation or settlement)
of a third party against the licensee or transferee, or its contractors,
subcontractors, or customers, or the contractors or subcontractors of such
customers, resulting from activities carried out pursuant to a license issued
or transferred under this Act for death, bodily injury, or loss of or damage
to property resulting from activities carried out under the license, but only
to the extent that the aggregate of such successful claims arising out Crf any
particular launch--
"(A) is in excess of the amount of insurance or demonstration of
financial responsibilities required under subsection (a)(1),(A); and
"(8) is not in excess of the level that is $1,500,000,000 (plus any
additional sums necessary to reflect inflation occurring after January 1,
19R9) above such amount.
The Secretary shall not provide for payment of any part of such claim for
which the death, bodily injury, or loss of or damage to property has resulted
from willful misconduct by the licensee or transferee. To the extent insurance
required pursuant to subsection (a)(1)(A) is not available to cover any such
successful third party liability claim by reason of insurance policy
exclusions determined by the Secretary to be usual for the type of insurance
involved, the Secretary may provide for the payment of such excluded claims
without regard to the limitation expressed in subparagraph (A).
"(2) The payment of claims under paragraph (1) shall be subject to--
"(A) notice to the United States of any claim, or suit associated with
such claim, against a party described in paragraph (1) for death, bodily
injury, or loss of or damage to property;
"(8) participation or assistance in the defense by the United States, at
its election, of that claim or suit; and
"(C) approval by the Secretary of that portion of any settlement which
is to be paid out of appropriated funds of the United States.
"(3) The Secretary may withhold payment under paragraph (1) if the Secretary
certifies that the amount is not just and reasonable, except that the amount
of any claim determined by the final judgment of a court of competent
Jun isdiction shall be deemed by the Secretary to be just and reasonable.
"(4)(A) If as a result of activities carried out under a :License issued or
transferred under this Act the aggregate of the claims arising out of a
particular launch are likely to exceed the amount of insurance or
demonstration of financial responsibility required under the license, the
Secretary shall (i) make a survey of the causes and extent of damage and (ii)
expeditiously submit to the Congress a report setting forth the results of
such survey.
"(B) Not later than 90 days after any determination by a court indicating
that the liability for the aggregate of claims arising out of a particular
launch under such a license may exceed the amount of insurance or
demonstration of financial responsibility required under the license, the
President, on the recommendation of the Secretary, shall submit to the
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Congress a compensation plan or plans that (i) outlines the aggregate dollar
value of such claims; (ii) recommends sources of funding to pay for these
claims; and (iii) includes any legislative language required to implement the
compensation plan or plans if additional legislative authority is required. No
compensation plan for a single event or incident may exceed the aggregate of
S1,500,000,000.
"(C) Any compensation plan transmitted to the Congress pursuant to
subparagraph (B) shall bear an identification number and shall be transmitted
to both Houses of Congress on the same day and to each House while it is i ii
session.
"(D)(1) The provisions of this subparagraph shall apply with respect to
consideration in the Senate of any such compensation plan and to Senate action
on such compensation plan.
"(ii) Any such compensation plan that requires additional appropriations or
additional legislation authority must be considered by the Senate pursuant to
this subparagraph within 60 calendar days of continuous session of Congress
after the date on which such plan is transmitted to the Congress.
"(iii) For the purposes of this subparagraph, the term 'resolution' means
only a joint resolution of Congress the matter after the resolving clause of
which is as follows; That the approves the compensation plan numbered
submitted to the Congress on , 19 .', the first blank space therein being
filled with the name of the resolving House and the other blank spaces being
appropriately filled; but does not include a resolution which includes more
than one compensation plan.
"(iv) A resolution once introduced with respect to a compensation plan shall
immediately be referred to a committee (and all resolutions with respect to
the same compensation plan shall be referred to the same committee) by the
President of the Senate.
"(v)(I) If the committee of the Senate to which a resolution with respect to
a compensation plan has been referred has not reported it at the end of 20
calendar days after its referral, it shall be in order to move either to
discharge the committee from further consideration of such resolution or to
discharoe the committee from further consideration with respect to such
compensation plan which has been referred to the committee.
"(II) A motion to discharge may be made only by an individual favoring the
resolution, shall be highly privileged (except that it may not be made after
the committee has reported a resolution with respect to the same compensation
plan), and debate thereon shall be limited to not more than one hour, to be
divided equally between those favoring and those opposing the resolution. An
amendment to the motion shall not be in order, and it shall not be in order to
move to reconsider the vote by which the motion was agreed to or disagreed to.
"(III) If the motion to discharge is agreed to or disagreed to, the motion
may not be renewed, nor may another motion to discharge the committee be made
with respect to any other resolution with respect to the same compensation
plan.
(vi) (I) When the committee has reported, or has been discharoed from
further consideration of, a resolution, it shall be at any time thereafter in
order (even though a previous motion to the same effect has been disagreed to)
to move to proceed to the consideration of the resolution. The motion shall be
highly privileged and "shall not be debatable. An amendment to the motion shall
not be in order, and it shall not be in order to move to reconsider the vote
by which the motion was agreed to or disagreed to.
"(II) -Debate on the resolution referred to in subclause (I) of this clause
shall be limited to not more than 10 hours, which shall be divided equally
between those favoring and those opposing such resolution. A motion further to
limit debate shall not be debatable. An amendment to, or motion to recommit,
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the resolution shall not be in order, and it shall not be in order to move to
reconsider the vote by which. such resolution was agreed to on, disagreed to.
"(vii)(I) Motions to postpone, made with respect to the discharge from
committee, or the consideration of a resolution or motions to proceed to the
consideration of other business, shall be decided without debate.
"(II) Appeals from the decision of the Chair relating to the application of
the rules of the Senate to the procedures relating to resolution shall be
decided without debate.
"(5) The provisions of paragraphs (1) through (4) shall apply only to each
license issued or transferred under this Act for which a complete and valid
application has been received by the Secretary prior to the date that is 5
years following the date of enactment of .the Commercial Space Launch Act
Amendments of 1988.
"(c) The head of any Federal agency or department shall collect insurance
proceeds or any other payment owed for the loss of or damage to Government
property under its jurisdiction or control resulting from activities carried
out under a license issued or transferred under this Act. Such proceeds or
other payment shall be credited to the current applicable appropriations,
funds, or accounts of that agency or department.".
(b) Section 15(c) of the Commercial Space Launch Act (49 U.S.C. App.
2614(c)) is amended to read as follows
"(c) Consistent with the requirements of this Act, the Secretary shall
establish requirements for proof of financial responsibility and such other
assurances as may be necessary to protect the United States and its agencies
and personnel from liability, death, bodily injury, or loss of or damage to
property as a result of a :Launch or operation of a launch site involving
Government facilities or personnel. The Secretary may not under this
subsection relieve the United States of liability for death, bodily injury, or
loss of or damage to property resulting from the willful misconduct of the
United States or its agents.".
SEC. 6. UNITED STATES LAUNCH INCENTIVES FOR CERTAIN SATELLITES.
(a) The requirements of subsection (a)(1)(D) of section 16 of the Commercial
Space Launch Act (49 U.S.C. App. 2615), is amended by this Act, shall not
apply to eligible satellites.
(b) To the extent approved in appropriations Acts, the United States shall
not require payment for the provision of launch services in connection with
the commercial launch of an eligible satellite.
(c) For purposes of this section, the term "eligible satellite" .means a
satellite that--
(1) was under construction on August 15, 1966;
(2) was the subject of a launch services agreement or contract with the
National Aeronautics and Space Administration, which as of August 15,
1986, was in effect and .not yet carried out; and
(3) is licensed for launch under the Commercial Space Launch Act.
SEC. 7. PREEMPTION OF SCHEDULED LAUNCHES.
Section 15(b) of the Commercial Space-Launch Act (49 U.S.C..? App. 2614(b)) is
amended by adding at the end the following new paragraph
"(4)(A) The Secretary, with the cooperation of the Secretary of Defense and
the Administrator of the National Aeronautics and Space Administration, shall
take steps to ensure that the launches of payloads with respect to which a?
launch date commitment from the United States has been obtained for a launch
licensed under this Act are not preempted from access to United States launch
sites or launch property, except in cases of imperative national need. Any
determination of imperative net need shall be made by the Secretary of
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Defense or the Administrator of the National Aeronautics and Space
Administration, in consultation with the Secretary, and shall not be
delegated. A licensee or transferee preempted from access to a launch site or
launch property shall not be required to pay to the United States any amount
for launch services solely attributable tothe scheduled launch prevented by
such preemption.
"(E) The Secretary of Defense or the Administrator of the National
Aeronautics and Space Administration, in cooperation with the Secretary, as
the case may be, shall report to the Congress within 7 days after any
determination of imperative national need under subparagraph (A), including an
explanation of the circumstances justifying such determination and a schedule
for ensuring the prompt launching of a preempted payload.".
SEC. 8. STUDY OF PROCESS FOR SCHEDULING LAUNCHES.
The Secretary of Transportation, in cooperation with the Secretary of
Defense and the Administrator of the National Aeronautics and Space
Administration, and in consultation with .representatives of the space launch
and satellite industry, shall study ways and means of scheduling Government
and commercial payloads on commercial launch vehicles at Government launch
sites in a manner which--
(1) makes the best practicable use of the launch property, of the United
States; and
(2) assures that the launch property of the United States that is
available for commercial USE will be availabl2 on a commercially
reasonable basis,
consistent with the objectives of the Commercial Space Launch Act. The
Secretary shall report the results of such study to the Congress within 90
days after the' date of enactment of this Act.
SEC. 9. COMMERCIAL SPACE LAUNCH SERVICE COMPETITION.
It is the sense of the Congress that the United States should explore ways
and means of developing a dialogue with appropriate foreign government
representatives to seek the development- of guidelines for access to launch
servi-ces by satellite builders and users in a manner that assures the conduct
of reasonable and fair international competftion in commercial space
activities.
SEC. 10. LAUNCH VEHICLE RESEARCH AND DEVELOPMENT..
The Administrator of the National Aeronautics and Space Administration
shall, in consultation with representatives of the space launch and satellite
industry, design a program for the support of research into launch systems
component technologies, for the 'purposeof developing higher performance and
lower cost United States launch vehicle technologies and systems_ available for
the launch of commercial and Government spacecraft into orbit. The
'Administrator shall submit a report outlining such program to the Congress
within 60 days after the date of enactment of this Act.
SEC- 11. APPLICABILITY TO LICENSES.
This Act, and the amendments pade by this Act, shall apply-to all licenses
issued under the.Commercial Space Launch Act before, on, or after the date of
enactment of this Act.
Speaker' of the House of Representatives.
Vice President of the United States and
President of the Senate.
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