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April 9, 1984
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Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 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. O 1230 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 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 H 2468 CONGRESSIONAL RECORD - HOUSE 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 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 H 2469 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. - Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 H 2470 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 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- Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 H 2474 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- Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 April 9, 1984 CONGRESSIONAL RECORD -- HOUSE 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 H 2476 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 April 9, 1984 CONGRESSIONAL RECORD - HOUSE 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. Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2 H 2478 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- Approved For Release 2008/09/11: CIA-RDP86B00338R000200290018-2