APPENDIX 1 100TH CONGRESS 1ST SESSION H.R.3765 To facilitate commercial access to space, and for other purposes. I IN THE HOUSE OF REPRESENTATIVES DECEMBER 15, 1987 Mr. NELSON of Florida (for himself, Mr. ROE, Mr. LUJAN, Mr. WALKER, Mr. BROWN of California, Mr. LEWIS of Florida, Mr. VOLKMER, Mr. PACKARD, Mr. HALL of Texas, Mr. HENRY, Mr. MCCURDY, Mr. SLAUGHTER of Virginia, Mr. MINETA, Mrs. MORELLA, Mr. MACKAY, Mr. TORRICELLI, Mr. CHAPMAN, Mr. NOWAK, Mr. PERKINS, Mr. NAGLE, Mr. SKAGGS, and Mr. LAGOMARSINO) introduced the following bill; which was referred to the Committee on Science, Space, and Technology A BILL To facilitate commercial access to space, and for other purposes. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE; FINDINGS. 4 (a) This Act may be cited as the "Commercial Space 5 Launch Act Amendments of 1987". (b) The Congress finds that (1) a United States space launch industry is an es 6 7 8 9 to space for Government and commercial users; sential component of national efforts to assure access 2 (2) the Federal Government should encourage, facilitate, and promote the use of the United States space launch industry in order to continue United States aerospace preeminence; (3) the United States space launch industry must be competitive in the international marketplace; (4) Federal Government policies should recognize the responsibility of the United States under international treaty for activities conducted by United States citizens in space; and (5) the United States must maintain a competitive edge in international commercial space transportation by ensuring continued research in launch vehicle com ponent technology and development. 15 SEC. 2. RESPONSIBILITIES UNDER COMMERCIAL SPACE 16 17 LAUNCH ACT. Section 5(a)(1) of the Commercial Space Launch Act 18 (49 U.S.C. App. 2604(a)(1)) is amended to read as follows: "(1) encourage and facilitate commercial space launches by the private sector, consistent with the 19 20 21 22 space policies of the United States as established in public law; and”. 23 SEC. 3. DEFINITION OF DIRECT COSTS. 24 (a) Section 15(b)(1) of the Commercial Space Launch 25 Act (49 U.S.C. App. 2614(b)) is amended by inserting at the HR 3765 IH 3 1 end the following: "For purposes of this paragraph, the term 2 'direct costs' means the costs incurred by the United States 3 as a result of an acquisition of launch property or launch 4 services which exceed the costs that would have been in5 curred if such acquisition had not occurred.". 6 (b) Section 15(a) of the Commercial Space Launch Act 7 (49 U.S.C. App. 2614(a)) is amended by adding at the end 8 the following new sentence: "The Secretary shall not take 9 such actions if substantially equivalent launch property or 10 services are otherwise commercially available from a domes11 tic source on reasonable terms and conditions.". 12 SEC. 4. INSURANCE REQUIREMENTS OF LICENSEE. 13 (a) Section 16 of the Commercial Space Launch Act (49 14 U.S.C. App. 2615) is amended by striking "SEC. 16." and all 15 that follows through "other appropriate agencies." and in 16 serting in lieu thereof the following: 17 "SEC. 16. (a)(1)(A) Each license issued or transferred 18 under this Act shall require the licensee 19 20 "(i) to obtain liability insurance; or "(ii) to demonstrate financial responsibility 21 in an amount sufficient to compensate the maximum probable 22 loss from claims against any party by a person or entity, 23 other than the licensee or a contractor, subcontractor, or cus24 tomer of the licensee involved in providing the launch serv25 ices, for death, bodily injury, or loss of or damage to property HR 3765 IH 4 1 resulting from activities carried out under the license. In no 2 event shall a licensee be required to obtain liability insurance 3 or demonstrate financial responsibility under this subpara 4 graph in an amount which exceeds $500,000,000. 5 "(B) Each license issued or transferred under this Act 6 shall require the licensee 7 8 "(i) to obtain insurance; or "(ii) to demonstrate financial responsibility 9 in an amount sufficient to compensate the maximum probable 10 loss from claims against any party by the United States for 11 loss of or damage to property of the United States resulting 12 from activities carried out under the license. In no event shall 13 a licensee be required to obtain insurance or demonstrate fi14 nancial responsibility under this subparagraph in an amount 15 which exceeds $100,000,000. 16 "(C) Each license issued or transferred under this Act 17 shall require the licensee to— 18 19 “(i) enter into reciprocal waivers of claims; or "(ii) obtain insurance, 20 in a manner and to an extent satisfactory to the Secretary, 21 and consistent with this section, with respect to claims by the 22 licensee or a contractor, subcontractor, or customer of the 23 licensee, or by a contractor or subcontractor of such custom24 er, involved in providing the launch services, for death, bodily HR 3765 IH 5 1 injury, or loss of or damage to property resulting from activi 2 ties carried out under the license. 3 "(D) The Secretary, on behalf of the United States, may 4 enter into reciprocal waivers of claims with respect to claims 5 for death, bodily injury, or loss of or damage to property 6 resulting from activities carried out under a license issued or 7 transferred under this Act. 8 "(2) Any insurance policy obtained pursuant to a re9 quirement described in paragraph (1) shall name the United 10 States and all contractors, subcontractors, and customers of 11 the licensee, and all contractors and subcontractors of such 12 customers, involved in providing the launch services as in13 sured parties, to the extent of their potential liabilities, at no 14 cost to the United States. 15 "(3) The Secretary shall determine the maximum prob 16 able loss associated with activities under a license within 90 17 days after a licensee has requested such a determination and 18 has submitted all information the Secretary requires to make 19 such a determination. The Secretary shall amend such deter20 mination as warranted by new information. 21 "(4) The Secretary shall, once every 3 years after the 22 date of the enactment of the Commercial Space Launch Act 23 Amendments of 1987, review the amounts specified in the 24 last sentence of subparagraphs (A) and (B) of paragraph (1), 25 and shall submit a report to the Congress which contains a HR 3765 IH |