CIVIL SATELLITE REMOTE-SENSING PROGRAMS

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CIA-RDP89M00699R001100660062-8
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RIPPUB
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U
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28
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December 23, 2016
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February 22, 2012
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62
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Publication Date: 
January 5, 1987
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MEMO
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Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 DATE /// TRANSMITTAL SLIP TO: ROOM NO. BUILDI G REMARKS: c l!/L"/ v~. AGE 2-9 FROM: 7L- BUILDING STAT STAT FORM Nn RFPI Arcc onDIA'2c 0 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699R001100660062-8 UNULHJJlrlED "- 6' f7_`_Z~ CW 'M ((I SENIOR INTERAGENCY GROUP (INTELLIGENCE) INTERAGENCY GROUP/COUNTERMEASURES (POLICY) WASHINGTON, D.C. 20505 DCI/I CS-87-0751 5 January 1987 MEMORANDUM FOR: Chairman, National Operations Security Advisory Committee (NOAC) Executive Secretary STAT SUBJECT: Civil Satellite Remote-Sensing Programs 1. The Deputy Under Secretary of Defense (Policy) has forwarded the attached memorandum to the Secretariat of the IG/CM(P) requesting that NOAC undertake an interagency review of the licensing of civil remote-sensing systems and recommend to the Secretary of Defense (SecDef) standards for the guidance of the Secretary of Commerce in meeting the necessary national security concerns in the licensing process. Media access from commercial satellites has been a concern of US policymakers for several years. The Department of Defense (DoD) desires to develop and publish clear, defendable standards for the guidance of security oversight of US commercial satellites. 2. Correspondence from the CIA on a related aspect of this problem has come to the attention of CCISCMS. We encourage NOAC to seek CIA's participation in the development of solutions and recommendations. 3. Request you take the attachment for NOAC consideration. When NOAC is ready to reply to the SecDef, recommend the IG/CM(P) Chairman review the response. Attachment: a/s STAT Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699R001100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 UNCLASSIFIED CCISCMS/ICS Distribution of DCI/ICS-87-0751 (w/att as shown) Orig. - John F. Donnelly, ODUSD(P), Chairman, NOAC 1 - ICS Registry 1 - IG/CM(P) subject 1 - IG/CM(P) chrono (wo/att) UNCLASSIFIED STAT Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Iq Next 3 Page(s) In Document Denied STAT Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-JULY 17, 1984 98 STAT. 451 Public Law 98-365 98th Congress To establish a system to promote the use of land remote.sensing satellite data, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Corrgassembled, That this Act may be cited as the "Land Remote-Sensing Commercialization Act of 1984". TITLE OF FINDINGS, PURPOSES, AND SEC. 101. The Congress finds and declares that- (1) the continuous civilian collection and utilization of land remote-sensing data from space are of major benefit in manag- ing the Earths natural resources and in planning and conduct- ing many other activities of economic importance; (2) the Federal Government's experimental Landsat system has established the United States as the world leader in land remote-sensing technology; (3) the national interest of the United States lies in maintain- ing international :leadership 4n:. civil. remote. sensing and in broadly promoting, the ,beneficial . use .of remote-sensing data; (4) land remote se by`the Government or private parties of, the United States affects international commitments and policies and ;national security concerns of the United States; (5) the broadest and most beneficial use of land remote- sensing data will result from maintaining a policy of nondis- criminatory access to data; (6) competitive, market-driven private sector involvement in land remote sensing is in the national interest of the United States; (7) use of land remote-sensing data has been inhibited by slow market development and by the lack of assurance of data continuity; (8) the private sector, and in particular the "value-added" industry, is best suited to develop land remote-sensing data markets; (9) there is doubt that the private sector alone can currently develop a total land remote-sensing system because of the high risk and large capital expenditure involved; (10) cooperation between the Federal Government and private industry 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) such cooperation should be structured to involve the minimum practicable amount of support and regulation by the July 17, 1984 [H.R. 51551 Land Remote - Sensing Commercializa- tion Act of 1984. Communications and tele- communications. 15 USC 4201 note. Congress 15 i201. Defense and national security. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Federal Government and the maximum practicable amount of competition by the private sector, while assuring continuous availability to the Federal Government of land remote-sensing data; (13) certain Government oversight must be maintained to assure that private sector activities are in the national interest and that the international commitments and policies of the United States are honored; and (14) there is no compelling reason to commercialize meteoro- logical satellites at this time. C 98 STAT. 452 PUBLIC LAW 98-365-JULY 17, 1984 Defense and national security. SEC. 102. The purposes of this Act are to- (1) guide the Federal Government in achieving proper involvement of the private sector by providing a framework for phased commercialization of land remote sensing and by assur- ing continuous data availability to the Federal Government; (2) maintain the United States worldwide leadership in civil remote sensing, preserve its national security, and fulfill its international obligations; (3) minimize the duration and amount of further Federal investment necessary to assure data continuity while achieving commercialization of civil land remote sensing-, (4) provide for a comprehensive civilian program of research, development, and demonstration to enhance both the United States capabilities for remote sensing from space and the appli- cation and utilization of such capabilities; and (5) prohibit commercialization of meteorological satellites at this time. 15 USC 4203. SEC. 103. (a) It shall be the policy of the United States to preserve its right to acquire and disseminate unenhanced remote-sensing data. (b) It shall be the policy of the United States that civilian unen- hanced remote-sensing data be made available to all potential users on a nondiscriminatory basis and in a manner consistent with applicable antitrust laws. Defense and (c) It shall be the policy of the United States both to commercialize national those remote-sensing space systems that properly lend themselves to security. private sector operation and to avoid competition by the Govern- ment with such commercial operations, while continuing 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. 15 USC 4204. SEC. 104. For purposes of this Act: (1) The term "Landsat system" means Landsats 1, 2, 3, 4, and 5, and any related ground equipment, systems, and facilities, and any successor civil land remote-sensing space systems oper- ated by the United States Government prior to the commence- ment of the six-year period described in title III. (2) The term "Secretary" means the Secretary of Commerce. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-J LY 17, 1984 98 STAT. 453 (3XA) The term "nondiscriminatory basis" means without preference, bias, or any other special arrangement (except on the basis of national security concerns pursuant to section 607) regarding delivery; format, financing, or technical consider- ations which would favor one buyer or class of buyers over another. (B) The sale of data is made- on a nondiscriminatory basis only if (i) any offer to sell orideliver 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 estab- lished or changed any price, policy, procedure, or other term or condition in a manner which gives one buyer or class of buyer de facto-favored access to data; (iii) the system operator does not make unenhanced data available to any purchaser on an exclu- sive basis; and (iv) in a case where a system operator offers volume discounts, such discounts are no greater than the demonstrable reductions in the cost of volume sales. The sale of data on a nondiscriminatory basis does not preclude the system operator from offering discounts other than volume discounts to the extent that such discounts are consistent with the provi- sions of this paragraph. (C) The sale of data on a nondiscriminatory basis does not require (i) that a system operator disclose names of buyers or their purchases; (ii) that a system operator maintain 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 "unenhanced data" means unprocessed or mini- mally processed signals or film products collected from civil remote-sensing space systems. Such minimal processing may include rectification of distortions, registration with respect to features of the Earth, and calibration of spectral response. Such minimal processing does not include conclusions, manipula- tions, or calculations derived from such signals or film products or combination of the signals or film products with other data or information. (5) The term "system operator" means a contractor under title II or title III or a license holder under title IV. TITLE 11-OPERATION AND DATA MARKETING OF LANDSAT SYSTEM SEC. 201. (a) The Secretary shall be responsible for- (1) the Landsat system, including the orbit, operation, and disposition of Landsats 1, 2, 3, 4, and 5; and (2) provision of data to foreign ground stations under the terms of agreements between the United States Government and nations that operate such ground stations which are in force on the date of commencement of the contract awarded pursuant to this title. (b) The provisions of this section shall not affect the Secretary's authority to contract for the operation of part or all of the Landsat system, so long as the United States Government retains- (1) ownership of such system; (2) ownership of the unenhanced data; and Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 98 STAT. 454 PUBLIC LAW 98-365-JULY 17, 1984 (3) authority to make decisions concerning operation of the system. CONTRACT FOR MARKETING OF UNENHANCED DATA SEC. 202. (a) In accordance with the requirements of this title, the Secretary, by means of a competitive process and to the extent provided in advance by appropriation Acts, shall contract with a United States private sector party (as defined by the Secretary) for the marketing of unenhanced data collected by the Landsat system. Any such contract- (1) shall provide that the contractor set the prices of unen- hanced data; (2) may provide for financial arrangements between the Sec- retary and the contractor including fees for operating the system, payments by the contractor as an initial fee or as a percentage of sales receipts, or other such considerations; (3) shall provide that the contractor will offer to sell and deliver unenhanced data to all potential buyers on a nondis- criminatory basis; (4) shall provide that the contractor pay to the United States Government the full purchase price of any unenhanced data that the contractor elects to utilize for purposes other than sale; (5) shall be entered into by the Secretary only if the Secretary has determined that such contract is likely to result in net cost savings for the United States Government; and (6) may be reawarded competitively after the practical demise of the space segment of the Landsat system, as determined by the Secretary. (b) Any contract authorized by subsection (a) may specify that the contractor use, and, at his own expense, maintain, repair, or modify, such elements of the Landsat system as the contractor finds neces- sary for commercial operations. (c) Any decision or proposed decision by the Secretary to enter into any such contract shall be transmitted to the Committee on Commerce, Science, and Transportation of the Senate and the Com- mittee on Science and Technology of the House of Representatives for their review. No such decision or proposed decision shall be implemented unless (A) a period of thirty calendar days has passed after the receipt by each such committee of such transmittal, or (B) each such committee before the expiration of such period has agreed to transmit and has transmitted to the Secretary written notice to the effect that such committee has no objection to the decision or proposed decision. As part of the transmittal, the Secretary shall include information on the terms of the contract described in subsec- tion (a). (d) In defining "United States private sector party" for purposes of this Act, the Secretary may take into account the citizenship of key personnel, location of assets, foreign ownership, control, influence, and other such factors. CONDITIONS OF COMPETITION FOR CONTRACT 15 USC 4213. SEC. 203. (a) The Secretary shall, as part of the advertisement for the competition for the contract authorized by section 202, identify and publish the international obligations, national security concerns (with appropriate protection of sensitive information), domestic Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365 Y 17, 1984 98 STAT. 455 legal considerations, and any other standards or conditions which a private contractor shall be required to meet. (b) In selecting a contractor under this title, the Secretary shall consider- (1) ability to market aggressively unenhanced data; (2) the best overall financial return to the Government, including the potential cost savings to the Government that are likely to result from the contract; (3) ability to meet the obligations, concerns, considerations, standards, and conditions identified under subsection (a); (4) technical competence, including the ability to assure con- tinuous and timely delivery of data from the Landsat system; (5) ability to effect a smooth transition with the contractor selected under title III; and (6) such other factors as the Secretary deems appropriate and relevant. (c) If, as a result of the competitive process required by section Report. 202(a), the Secretary receives no proposal which is acceptable under the provisions of this title, the Secretary shall so certify and fully report such finding to the Congress. As soon as practicable but not later than thirty days after so certifying and reporting, the Secre- tary shall reopen the competitive process. The period for the subse- quent competitive process shall not exceed one hundred and twenty days. If, after such subsequent competitive process, the Secretary receives no proposal which is acceptable under the provisions of this title, the Secretary shall so certify and fully report such finding to the Congress. In the event that no acceptable proposal is received, the Secretary shall continue to market data from the Landsat system. (d) A contract awarded under section 202 may, in the discretion of the Secretary, be combined with the contract required by title III, pursuant to section 304(b). SEC. 204. (a) After the date of the commencement of the contract 15 USC 4214. described in section 202(a), the contractor shall be entitled to reve- nues from sales of copies of data from the Landsat system, subject to the conditions specified in sections 601 and 602. (b) The contractor may continue to market data previously gener- ated by the Landsat system after the demise of the space segment of that system. SEC. 205. (a) The contract under this title shall provide that the 15 USC 4215. contractor shall act as the agent of the Secretary by continuing to supply unenhanced data to foreign ground stations for the life, and according to the terms, of those agreements between 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 agreements, or in the case of foreign. ground stations that have no agreement with the United States on the date of commencement of the contract, the contract shall provide- Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 c 98 STAT. 456 PUBLIC LAW 98-365-JULY 17, 1984 (1) that unenhanced data from the Landsat system shall be made available to foreign ground stations only by the contrac- tor; and (2) that such data shall be made available on a nondiscrimina- tory basis. Contracts with U.S. 15 USC 4222. TITLE III-PROVISION OF DATA CONTINUITY AF'T'ER THE LANDSAT SYSTEM PURPOSES AND DEFINITION SEC. 301. (a) It is the purpose of this title- (1) to provide, in an orderly manner and with minimal risk, for a transition from Government operation to private, commer- cial operation of civil land remote-sensing systems; and (2) to provide data continuity for six years after the practical demise of the space segment of the Landsat system. (b) For purposes of this title, the term "data continuity" means the continued availability of unenhanced data- (1) including data which are from the point of view of a data user- (A) functionally equivalent to the multispectral data gen- erated by the Landsat 1 and 2 satellites; and (B) compatible with such data and with equipment used to receive and process such data; and (2) at an annual volume at least equal to the Federal usage during fiscal year 1983. (c) Data continuity may be provided using whatever technologies are available. DATA CONTINUITY AND AVAILABILITY SEC. 302. The Secretary shall solicit proposals from United States private sector parties (as defined by the Secretary pursuant to section 202) for a contract for the development and operation of a remote-sensing space system capable of providing data continuity for a period of six years and for marketing unenhanced data in accordance with the provisions of sections 601 and 602. Such propos- als, at a minimum, shall specify- (1) the quantities and qualities of unenhanced data expected from the system; (2) the projected date upon which operations could begin; (3) the number of satellites to be constructed and their expected lifetimes; (4) any need for Federal funding to develop the system; (5) any percentage of sales receipts or other returns offered to the Federal Government; (6) plans for expanding the market for land remote-sensing data; and (7) the proposed procedures for meeting the national security concerns and international obligations of the United States in accordance with section 607. AWARDING OF THE CONTRACT SEC. 303. (aX1) In accordance with the requirements of this title, the Secretary shall evaluate the proposals described in section 302 and, by means of a competitive process and to the extent provided in Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-JULY 17, 1984 98 STAT. 457 advance by appropriation Acts, shall contract with the United States private sector party for the capability of , providing data continuity for a period of six years and for marketing unenhanced data. (2) Before commencing space operations the contractor shall obtain a license under title IV. (b) As part of the evaluation described in subsection (a), the Secretary shall analyze the expected outcome of each proposal in terms of- (1) the net cost to the Federal Government of developing the recommended system; (2) the technical competence and financial condition of the contractor; (3) the availability of such data after the expected termination of the Landsat system; (4) the quantities and qualities of data to be generated by the recommended system; (5) the contractor's ability to supplement the requirement for data- continuity by adding, at the contractor's expense, remote- sensing capabilities which maintain United States leadership in remote sensing; (6) the potential to expand the market for data; (7) expected returns to the Federal Government based on any percentage of data sales or other such financial consideration offered to the Federal Government in accordance with section 305; (8) the commercial viability of the pro , (9) the proposed procedures for satin ymg the national secur- ity concerns and international obligations of the United States; (10) the contractor's ability to effect a smooth transition with an contractor selected under title II; and a1) such other factors as the Secretary deems appropriate and relevant. (c) Any decision or proposed decision by the Secretary to enter Congress. into any such contract shall be transmitted to the Committee on Commerce, Science, and Transportation of the Senate and the Com- mittee on Science and Technology of the House of Representatives for their review. No such decision or proposed decision shall be implemented unless (1) a period of thirty calendar days has passed after the receipt by each such committee of such transmittal, or (2) each such committee before the expiration of such period has agreed to transmit and has transmitted to the Secretary written notice to the effect that such committee has no objection to the decision or decision. As part of the transmittal, the Secretary shall include the information specified in subsection (a). (d) If, as a result of the competitive process required by this Report. section, the Secretary receives no proposal which is acceptable under the provisions of this title, the Secretary shall so certify and 'ro fully report such finding to the Congress. As soon as practicable but not later than thirty days the so certifying and reporting, the Secretary shall reopen the competitive process. The period for the subsequent competitive process shall not exceed one hundred and eighty days. If, after such subsequent competitive process, the Secre- tary receives no proposal which is acceptable under the pro visions of this title, the Secretary shall so certify and fully report such finding to the Congress. Not earlier than ninety days after such certification and report, the Secretary may assure data continuity by procure- Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 98 STAT. 458 PUBLIC LAW 98-365-JULY 17, 1984 ment and operation by the Federal Government of the necessary systems, to the extent provided in advance by appropriation Acts. TERMS OF CONTRACT SEC. 304. (a) Any contract entered into pursuant to this title- (1) shall be entered into as soon as practicable, allowing for the competitive procurement process required by this title; (2) shall, in accordance with criteria determined and pub- lished by the Secretary, reasonably assure data continuity for a period of six years, beginning as soon as practicable in order to minimize any interruption of data availability; (3) shall provide that the contractor will offer to sell and deliver unenhanced data to all potential buyers on a nondis- criminatory basis; (4) shall not provide a guarantee of data purchases from the contractor by the Federal Government; (5) may provide that the contractor utilize, on a space-avail- able basis, a civilian United States Government satellite or vehicle as a platform for a civil land remote-sensing space system, if- (A) the contractor agrees to reimburse the Government immediately for all related costs incurred with respect to such utilization, including a reasonable and proportionate share of fixed, platform, data transmission, and launch costs; and (B) such utilization would not interfere with or otherwise compromise intended civilian Government missions, as de- termined by the agency responsible for the civilian plat- form; and (6) may provide financial support by the United States Gov- ernment, for a portion of the capital costs required to provide data continuity for a period of six years, in the form of loans, loan guarantees, or payments pursuant to section 305 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 255). (bXl) Without regard to whether any contract entered into under this title is combined with a contract under title II, the Secretary shall promptly determine whether the contract entered into under this title reasonably effectuates the purposes and policies of title II. Such determination shall be submitted to the President and the Congress, together with a full statement of the basis for such determination. (2) If the Secretary determines that such contract does not reason- ably effectuate the requirements of title II, the Secretary shall promptly carry out the provisions of such title to the extent pro- vided in advance in appropriations Acts. MARKETING SEC. 305. (a) In order to promote aggressive marketing of land remote-sensing data, any contract entered into pursuant to this title may provide that the percentage of sales paid by the contractor to the Federal Government shall decrease according to stipulated in- creases in sales levels. (b) After the six-year period described in section 304(aX2), the contractor may continue to sell data. If licensed under title IV, the Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-JULY 17, 1984 98 STAT. 459 contractor may continue to operate a civil remote-sensing space system. REPORT Sac. 306. Two years after the date of the commencement of the six-year period described in section 304(aX2), 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 actions, including actions necessary to ensure United States leadership in civilian land remote sensing from space. TERMINATION OF AUTHORITY Sac. 307. The authority granted to the Secretary by this title shall 15 use 4227. terminate ten years after the date of enactment of this Act. TITLE IV-LICENSING OF PRNATE REMOTE-SENSING SPACE SYSTEMS GENERAL AUTHORITY SEc. 401. (aX1) In consultation with other appropriate Federal agencies, the Secretary is authorized to license private sector parties to operate private remote-sensing space systems for such period as the Secretary may specify and in accordance with the provisions of this title. (2) In the case of a private space system that is used for remote sensing and other purposes, the authority of the Secretary under this title shall be limited only to the remote-sensing operations of such space system. (b) No license shall be granted by the Secretary unless the Secre- tary determines in writing that the applicant will comply with the requirements of this Act, any regulations issued pursuant to this Act, and any applicable international obligations and national secu- rity concerns of the United States. (c) The Secretary shall review any application and make a deter- mination thereon within one hundred and twenty days of the receipt of such application. If final action has not occurred within such time, the Secretary shall inform the applicant of any pending issues and of actions required to reoolve them. (d) The Secretary shall not deny such license in order to protect any existing licensee from competition. CONDITIONS FOR OPERATION SEc. 402. (a) No person who is subject to the jurisdiction or control of the United States may, directly or through any subsidiary or affiliate, operate any private remote-sensing space system without a license pursuant to section 401. (b) Any license issued pursuant to this title shall specify, at a minimum, that the licensee shall comply with all of the require- ments of this Act and shall- (1) operate the system in such manner as to preserve and promote the national security of the United States and to observe and implement the international obligations of the United States in accordance with section 607; Defense and national security. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 t 98 STAT. 460 PUBLIC LAW 98-365-JULY 17, 1984 (2) make unenhanced data available to all potential users on a nondiscriminatory basis; (3) upon termination of operations under the license, make disposition of any satellites in space in a manner satisfactory to the President; (4) promptly make available all unenhanced data which the Secretary may request pursuant to section 602; (5) furnish the Secretary with complete orbit and data collec- tion characteristics of the system, obtain advance approval of any intended deviation from such characteristics, and inform the Secretary immediately of any unintended deviation; (6) notify the Secretary of any agreement the licensee intends to enter with a foreign nation, entity, or consortium involving foreign nations or entities; (7) permit the inspection by the Secretary of the licensee's equipment, facilities, and financial records; (8) surrender the license and terminate operations upon noti- fication by the Secretary pursuant to section 403(aXl); and (9XA) notify the Secretary of any "value added" activities (as defined by the Secretary by regulation) that will be conducted by the licensee or by a subsidiary or affiliate; and (B) if such activities are to be conducted, provide the Secre- tary with a plan for compliance with the provisions of this Act concerning nondiscriminatory access. ADMINISTRATIVE AUTHORITY OF THE SECRETARY 15 USC 4243. SEC. 403. (a) In order to carry out the responsibilities specified in this title, the Secretary may- (1) grant, terminate, modify, condition, transfer, or suspend licenses under this title, and upon notification of the licensee may terminate licensed operations on an immediate basis, if the Secretary determines that the licensee has substantially failed to comply with any provision of this Act, with any regulation issued under this Act, with any terms, conditions, or restrictions of such license, or with any international obligations or national security concerns of the United States; (2) inspect the equipment, facilities, or financial records of any licensee under this title; (3) provide penalties for noncompliance with the require- ments of licenses or regulations issued under this title, includ- ing civil penalties not to exceed $10,000 (each day of operation in violation of such licenses or regulations constituting a sepa- rate violation); (4) compromise, modify, or remit any such civil penalty; (5) issue subpenas for any materials, documents, or records, or for the attendance and testimony of witnesses for the purpose of conducting a hearing under this section; (6) seize any object, record, or report where there is probable cause to believe that such object, record, or report was used, is being used, or is likely to be used in violation of this Act or the requirements of a license or regulation issued thereunder; and (7) make investigations and inquiries and administer to or take from any person an oath, affirmation, or affidavit concern- ing any matter relating to the enforcement of this Act. (b) Any applicant or licensee who makes a timely request for review of an adverse action pursuant to subsection (aX1), (aX3), or Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 SEC. 404. The Secretary may issue regulations to carry out the provisions of this title. Such regulations shall be promulgated only after public notice and comment in accordance with the provisions of section 553 of title 5, United States Code. United States Code. REGULATORY AUTHORITY OF THE SECRETARY (if PUBLIC LAW 98-365- LY 17, 1984 98 STAT. 461"` (aX6) shall be entitled to adjudication by the Secretary on the record after an opportunity for an agency hearing with respect to such adverse action. Any final action by the Secretary under this subsec- tion shall be subject to judicial review under chapter 7 of title 5, SEC. 405. (a) A private sector party may apply for a license to operate a private remote-sensing space system which utilizes, on a space-available basis, a civilian United States Government satellite or vehicle as a platform for such system. The Secretary, pursuant to the authorities of this title, may license such system if it meets all conditions of this title and- (1) the system operator agrees to reimburse the Government immediately for all related costs incurred with respect to such utilization, including a reasonable and proportionate share of fixed, platform, data transmission, and launch costs; and (2) such utilization would not interfere with or otherwise compromise intended civilian Government missions, as deter- mined by the agency responsible for such civilian platform. (b) The Secretary may offer assistance to private sector parties in finding appropriate opportunities for such utilization. (c) To the extent provided in advance by appropriation Acts, any Federal agency may enter into agreements for such utilization if such agreements are consistent with such agency's mission and statutory authority, and if such re mote-sensing space system is lice nsed by the Secretary before commencing operation. (d) The provisions of this section do not apply to activities carried out under title V. (e) Nothing in this title shall affect the authority of the Federal Communications Commission pursuant to the Communications Act of 1934, as amended (47 U.S.C. 151 et seq.). SEC. 406. If, five years after the expiration of the six-year period described in section 304(aX2), 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 CONTINUED FEDERAL RESEARCH AND DEVELOPMENT SEC. 501. (aXl) The Administrator of the National Aeronautics and 15 USC 4261. Space Administration 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- Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 98 STAT. 462 PUBLIC LA 98-365-JULY 17, 1984 (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 environ- ment; and (C) conduct such research and development in cooperation with other Federal agencies and with public and private research entities (including private industry, universities, State and local governments, foreign governments, and international organizations) and to enter into arrangements (including joint ventures) which will foster such cooperation. (bXl) The Secretary is directed to conduct a continuing program of- (A) research in applications of remote-sensing; (B) monitoring of the Earth and its environment; and (C) development of technology for such monitoring. (2) Such program may include support of basic research at univer- sities and demonstrations of applications. (3) The Secretary is authorized and encouraged to conduct such research, monitoring, and development in cooperation with other Federal agencies and with public and private research entities (including private industry, universities, State and local govern- ments, foreign governments, and international organizations) and to enter into arrangements (including joint ventures) which will foster such cooperation. (cxl) In order to enhance the United States ability to manage and utilize its renewable and nonrenewable resources, the Secretary of Agriculture and the Secretary of the Interior are authorized and encouraged to conduct programs of research and development in the applications of remote sensing using funds appropriated for such purposes- (2) Such programs may include basic research at universities, demonstrations of applications, and cooperative activities involving other Government agencies, private sector parties, and foreign and international organizations. (d) Other Federal agencies are authorized and encouraged to conduct research and development on the use of remote sensing in fulfillment of their authorized missions, using funds appropriated for such purposes. (e) The Secretary and the Administrator of the National Aeronau- tics and, Space Administration shall, within one year after the date of enactment of this Act and biennially thereafter, jointldevelop and transmit to the Congress a report which includes (1)'a unified national plan for remote-sensing research 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 atmosphere, the needs for additional research (includ- ing research related to operational Federal remote-sensing space programs), and opportunities available for further progress. SEC. 502. Data gathered in Federal experimental remote-sensing space programs may be used in related research and development programs funded by the Federal Government (including applications Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365 ULY 17, 1984 98 STAT. 463' { Programs) and cooperative research programs, but not for commer- cial uses or in competition with private sector activities, except pursuant to section 503. SALE OF EXPERIMENTAL DATA SEC. 503. Data gathered in Federal experimental remote-sensing 15 USC 4263. space programs may be sold en bloc through a competitive process (consistent with national security interests and international obliga- tions of the United States and in accordance with section 607) to any United States entity which will market the data on a nondiscrimina- tory basis. TITLE VI-GENERAL PROVISIONS NONDISCRIMINATORY DATA AVAILABILrry SEC. 601. (a) Any unenhanced data generated by any system operator under the provisions of this Act shall be made available to all users on a nondiscriminatory basis in accordance with the requirements of this Act. (b) Any system operator shall make publicly available the prices, policies, procedures, and other terms and conditions (but, in accord- ance with section 104(3XC), not necessarily the names of buyers or their purchases) upon which the operator will sell such data. Public availability. 15 USC 4271. ARCHIVING OF DATA SEC. 602. (a) It is in the public interest for the United States 15 USC 4272. Government- (1) to maintain an archive of land remote-sensing data for historical, scientific, and technical purposes, including long- term global environmental monitoring; (2) to control the content and scope of the archive; and (3) to assure the quality, integrity, and continuity of the archive. (b) The Secretary shall provide for long-term storage, mainte- nance, and upgrading of a basic, global, land remote-sensing data set (hereinafter referred to as the "basic data set") and shall follow reasonable archival practices to assure proper storage and preserva- tion of the basic data set and timely access for parties requesting data. The basic data set which the Secretary assembles in the Government archive shall remain distinct from any inventory of data which a system operator may maintain for sales and for other purposes. (c) In determining the initial content of, or in upgrading, the basic data set, the Secretary shall- (1) use as a baseline the data archived on the date of enact- ment of this Act; (2) take into account future technical and scientific develop- ments and needs; (3) consult with and seek the advice of users and producers of remote-sensing data and data products; (4) consider the need for data which may be duplicative in terms of geographical coverage but which differ in terms of season, spectral bands, resolution, or other relevant factors; Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 4, 98 STAT. 464 PUBLIC LA 98-365-JULY 17, 1984 Public availability. (5) include, as the Secretary considers appropriate, unen- hanced data generated either by the Landsat system, pursuant to title III, or by licensees under title IV; (6) include, as the Secretary considers appropriate, data col- lected by foreign ground stations or by foreign remote-sensing space systems; and (7) ensure that the content of the archive is developed in accordance with section 607. (d) Subject to the availability of appropriations, the Secretary shall request data needed for the basic data set and pay to the providing system operator reasonable costs for reproduction and transmission. A system operator shall promptly make requested data available in a form suitable for processing for archiving. (e) Any system operator shall have the exclusive right to sell all data that the operator provides to the United States remote-sensing data archive for a period to be determined by the Secretary but not to exceed ten years from the date the data are sensed. In the case of data generated from the Landsat system prior to the implementa- tion of the contract described in section 202(a), any contractor selected pursuant to section 202 shall have the exclusive right to market such data on behalf of the United States Government for the duration of such contract. A system operator may relinquish the exclusive right and consent to distribution from the archive before the period of exclusive right has expired by terminating the offer to sell particular data. (fl After the expiration of such exclusive right to sell, or after relinquishment of such right, the data provided to the United States remote-sensing data archive shall be in the public domain and shall be made available to requesting parties by the Secretary at prices reflecting reasonable costs of reproduction and transmittal. (g) In carrying out the functions of this section, the Secretary shall, to the extent practicable and as provided in advance by appropriation Acts, use existing Government facilities. 15 USC 4273. SEC. 603. Unenhanced data distributed by any system operator under the provisions of this Act may be sold on the condition that such data will not be reproduced or disseminated by the purchaser. REIMBURSEMENT FOR ASSISTANCE SEC. 604. The Administrator of the National Aeronautics and Space Administration, the Secretary of Defense and the heads of other Federal .agencies may provide assistance to system operators under the provisions of this Act. Substantial assistance shall be reimbursed by the operator, except as otherwise provided by law. ACQUISITION OF EQUIPMENT SEC. 605. The Secretary may, by means of a competitive process, allow a licensee under title IV or any other private party to buy, lease, or otherwise acquire the use of equipment from the Landsat system, when such equipment is no longer needed for the operation of such system or for the sale of data from such system. Officials of other Federal civilian agencies are authorized and encouraged to cooperate with the Secretary in carrying out the provisions of this section. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-JULY 17, 1984 98 STAT. 465 RADIO FREQUENCY ALLOCATION SEC. 606. (a) Within thirty days after the date of enactment of this President of U.S. Act, the President (or the President's delegee, if any, with authority 15 USC 4276. over the assignment of frequencies to radio stations or classes of radio stations operated by the United States) shall make available for nongovernmental use spectrum presently allocated to Govern- ment use, for use by United States Landsat and commercial remote- sensing space systems. The spectrum to be so made available shall conform to any applicable international radio or wire treaty or convention, or regulations annexed thereto. Within ninety days thereafter, the Federal Communications Commission shall utilize appropriate procedures to authorize the use of such spectrum for nongovernmental use. Nothing in this section shall preclude the ability of the Commission to allocate additional spectrum to com- mercial land remote-sensing space satellite system use. (b) To the extent required by the Communications Act of 1934, as amended (47 U.S.C. 151 et seq.), an application shall be filed with the 47 USC 609. Federal Communications Commission for any radio facilities in- volved with the commercial remote-sensing space system. (c) It is the intent of Congress that the Federal Communications Commission complete the radio licensing process under the Commu- nications Act of 1934, as amended (47 U.S.C. 151 et seq.), upon the application of any private sector party or consortium operator of any commercial land remote-sensing space system subject to this Act, within one hundred and twenty days of the receipt of an application for such licensing. If final action has not occurred within one hundred and twenty days of the receipt of such an application, the Federal Communications Commission shall inform the applicant of any pending issues and of actions required to resolve them. (d) Authority shall not be required from the Federal Communica- tions Commission for the development and construction of any United States land remote-sensing space system (or component thereof), other than radio transmitting facilities or components, while any licensing determination is being made. (e) Frequency allocations made pursuant to this section by the Federal Communications Commission shall be consistent with inter- national obligations and with the public interest. SEC. 607. (a) The Secretary shall consult with the Secretary of Defense on all matters under this Act affecting national security. The Secretary of Defense shall be responsible for determining those conditions, consistent with this Act, necessary to meet national security concerns of the United States and for notifying the Secre- tary promptly of such conditions. (bXl) The Secretary shall consult with the Secretary of State on all matters under this Act affecting international obligations. The Secretary of State shall be responsible for determining those condi- tions, consistent with this Act, necessary to meet international obligations and policies of the United States and for notifying the Secretary promptly of such conditions. (2) Appropriate Federal agencies are authorized and encouraged to provide remote-sensing data, technology, and training to develop- ing nations as a component of programs of international aid. Defense and national security. 15 USC 4277. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 "98 STAT. 466 15 USC 1517 note. PUBLIC LAW_ 98-365-JULY 17, 1984 (3) The Secretary of State shall promptly report to the Secretary any instances outside the United States of discriminatory distribu- tion of data. (c) If, as a result of technical modifications imposed on a system operator on the basis of national security concerns, the Secretary, in consultation with the Secretary of Defense or with other Federal agencies, determines that additional costs will be incurred by the system operator, or that past development costs (including the cost of capital) will not be recovered by the system operator, the Secre- tary may require the agency or agencies requesting such technical modifications to reimburse the system operator for such additional or development costs, but not for anticipated profits. Reimburse- ments may cover costs associated with required changes in system performance, but not-costs ordinarily associated with doing business abroad. AMENDMENT TO NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION, 1983 SEC. 608. Subsection (a) of section 201 of the National Aeronautics and Space Administration Authorization Act, 1983 (Public Law 97- 324; 96 Stat. 1601) is amended to read as follows: "(a) The Secretary of Commerce is authorized to plan and provide for the management and operation of civil remote-sensing space systems, which may include the Landsat 4 and 5 satellites and associated ground system equipment transferred from the National Aeronautics and Space Administration; to provide for user fees; and to plan for the transfer of the operation of civil remote-sensing space systems to the private sector when in the national interest.". SEC. 609. (a) There are authorized to be appropriated to the Secretary $75,000,000 for fiscal year 1985 for the purpose of carrying out the provisions of this Act. Such sums shall remain available until expended, but shall not become available until the time peri- ods specified in sections 202(c) and 303(c) have expired. (b) The authorization provided for under subsection (a) shall be in addition to moneys authorized pursuant to title II of the National 15 USC 1517 Aeronautics and Space Administration Authorization Act, 1983. note. TITLE VII-PROHIBITION OF COMMERCIALIZATION OF WEATHER SATELLITES President of U.S. -SEC. 701. Neither the President nor any other official of the " 5 USC 42x1 Gthllkff lllfh .overnmen sa mae any eort toease, se, or transer to te private sector, commercialize, or in any way dismantle any portion of the weather satellite systems operated by the Department of Commerce or any-successor agency. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 PUBLIC LAW 98-365-J LY 17, 1984 SEc. 702. Regardless of any change in circumstances subsequent to the enactment of this Act, even if such change makes it appear to be in the national interest to commercialize weather satellites, neither the President nor any official shall take any action prohibited by section 701 unless this title has first been repealed. Approved July 17, 1984. LEGISLATIVE HISTORY-H.R. 5155: HOUSE REPORT No. 98-647 (Comm. on Science and Technology). SENATE REPORT No. 98-458 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD, Vol. 130 (1984): Apr. 9, considered and passed House. June 8, considered and passed Senate, amended. June 28, House concurred in Senate amendment with an amendment. June 29, Senate concurred in House amendment. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 29 (1984): July 17, Presidential statement. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Federal Register / t. 51, No. 59 / Monday, ! 24. 1986. .'roposed Rules 1 30 should be approved to enter into a UGSA or URSA with CCC. CCC presently collects the full annual contract fee from warehousemen for the first contract year of the UGSA or URSA irrespective of when the contract is entered into during the contract year. It is proposed that the annual contract fee be prorated according to the number of full months for which the contract is to be effective. CCC is also requesting comments regarding a proposed change in the annual contract renewal date from July 1 to April 1. The July 1 annual renewal date has caused problems for producers who harvest their grain in May and June and store their grain in commercial warehouses. These producers must select a commercial warehouse to store their harvested grain without knowing the storage and handling rates for the next contract year. An April 1 contract renewal date would eliminate this problem. If such a change is implemented, the 196647 contract year will be nine months rather than twelve months. Contract fees would be adjusted accordingly. List of Subjects in 7 CFR Part 1421 Grains. Loan programs, Agriculture. Oilseeds, Peanuts. Price support programs, Soybeans. Surety bonds. Tobacco, and Warehouses. Proposed Rule PART 1421-{AMENDED) Accordingly, it is proposed that 7 CFR Part 1421 be amended as follows: 1. The authority citation for 7 CFR Part 1421. Subpart-Standards for Approval of Warehouses for Grain. Rice, Dry Edible Beans. and Seed continues to read as follows: Authority: Seca. 4 and 5.82 Slat. 1070. as amended. 1072, as amended (15 U.S.C. 714 b and c). 2. In 4 1421.5552, paragraph (a)(3) is revised to read as follows: 4 1421.SSS2 Seek: Standards. (a).. (3) Have a net worth which is the greater of 550.000 or an amount which is computed by multiplying the maximum storage capacity of the warehouse (the total quantity of the commodity which the warehouseman desires to store and which the warehouse can accommodate when stored in the customary, manner) under the approved contract with CCC times twenty-five (26) cents per bushel the case of grain, fifty (50) cents per .ndredweight in the case of rough rice, eighty-five (85) cents per hundredweight In the case of milled rice. and sixty (80) cents per hundredweight in the case of dry edible beans. In the case of seed, the net worth of the warehouseman shall be at least equal to an amount which is computed by multiplying the estimated number of pounds of seed to be stored times seven (7) cents per pound. If this calculated net worth requirement exceeds $50,000, the warehouseman may satisfy any deficiency in net worth between the $50.000 minimum requirement and such calculated net worth requirement by furnishing bonds, irrevocable letters of credit, or other acceptable substitute security meeting the requirements of S 1421.5553. 3. Section 1421.5555, paragraph (b) is revised as follows: 4 1421.5555 Exceptions. (b) A warehouseman who has a net worth of at least $50,000 but who fails, or whose warehouse fails, to meet one or more of the other standards of this subpart may be approved if: (1) CCC determines that the warehouse services are needed and the warehouse storage and handling conditions provide satisfactory protection for the commodity, and (2) The warehouseman furnishes such additional bond coverage (or cash or acceptable negotiable securities or legal liability insurance policy) as may be prescribed by CCC. 4. The heading to 41421.5558 is revised and 41421.5558 is amended by revising paragraph (a)(2), adding a new paragraph (a)(3) and by revising paragraph (b) to read as follows: 41421.5558 Contract and Application and Inspection Fees. (a) ... (2) All grain and rice warehousemen who do not have an existing agreement with CCC for the storage and handling of CCC-owned commodities or commodities pledged to CCC as loan collateral. but who desire such an agreement must pay an application and inspection fee for each warehouse for which CCC approval is sought prior to CCC conducting the original warehouse examination. The annual contract fee must be paid by the warehouseman to CCC prior to the time that the agreement is entered into. (3)7 ' be contract fee will be prorated based upon the total number of months for which the contract is to be effective. (b) The amount of the contract and application and inspection fees shall be determined and announced annually by the Executivti Vice President. CCC. Signed at Washington. D.C.. on March it tees Milt 1. Hertz, Acting Executive Vice Resident, Commodity Credit Corporation. (FR Doc 56-6388 Filed 3-21-19: 8:45 aml ttrwno CODE srti.aa~r Federal Aviation Administration 14 CFR Part 71 (AUspece Docket No, ee-AGL-41 Proposed Establishment of Tr'ansftion. Area-Paxton, IL Correction In FR Doc. 85-5204 beginning on page 8334 in the issue of Tuesday, March 11, 1986, make the following correction: On page 8335, in the third column. in the fifth line of the amendment to 171.181. ..radial" is misspelled. DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 15 CFR Part 960 (Docket No. 51191-6191) Licensing of Private Land Remote- Sensing Space Systems Aot:NCr. National Oceanic and Atmospheric Administration. Department of Commerce. AcTro.c Notice of proposed rulemaking. SUMMARY: NOAA proposes to establish procedures to license operators of private land remote-sensing space systems in the United States under Title IV of the Land Remote-Sensing Commercialization Act of 1984. Pub. L 98-385,15 U.S.C. 2401 et seq. (the Act). NOAA believes the procedures in this Notice of Proposed Rulemaking (NPR) adequately protect the basic U.S. interests articulated by the Act. promoting national security, fulfilling international obligations. Including the supervision required by Article VI of the Outer Space Treaty, and ensuring that access to unenhanced data is provided on a non-discriminatory basis. At the same time, the procedures In this NPR are intended to facilitate licensing and thereby aid in the development of a U.S. land-remote sensing industry. 3 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 9972 Federal Register / St. No. 56 / Monday, March .,. ' Proposed Rules Interested persons ate invited to review the NPR and to submit comments on the proposed regulations. DATI Comments on the NPR must be received by May 23.1966. Aooecene Comments should be sent to Peggy Harwood. NOAH. National Environmental Satellite. Data, and Information Service, FB-4, Room 2051. Washington D.C. 20233 . Phone (301) 763-4522. FOR FURTV a 101FORMA11010 CONTACT. Peggy Harwood at the address and telephone given above or john - Milholland. NOAA. Office of General Counsel at (M21254-751L $UPPLLMt?reTARV INFOR11AT101C Title IV of the Act requires, that any person subject to the jurisdiction or control of the United States who intends to operate a private remote-sensing space system must obtain a license from the Secretary of Commerce. The authority to issue licenses had been delegated to the Administrator of the National Oceanic and Atmospheric Administration (NOAA) and redelegted to the Assistant Administrator for the National Environmental Satellite. Data, and Information Service (NESDIS). The Act sets forth detailed criteria for licensing decisions, and further refinement of the criteria by regulation is not generally necessary or useful. where, however, the Act is less specific. e.g., as It relates to national security considerations. NESDIS believes that further refinement is not feasible at this time as discussed later under section III. C. Consequently, the NPR sets forth primarily procedural requirements for obtaining a license. NESDIS intends to establish as simple a process as possible consistent with ensuring that its review of applications will protect the limited U.S. interests articulated by the Act. L The Application Process (Subpart B) Licensing procedures involve the following stages: A. Pre-application coasultatioa (Section 980.4) Consultation Is discretionary on the part of the applicant but early communication is encouraged to promote cooperation and avoid delay. If prospective applicants request consultation. NESDIS must caaoply: the address for filing a written request is provided. 8. Piling Applications (Section 960.5 & 960.6) No particuLr form of application is specified, but any application mast be signed by the appropriate official (section 960.5(b)) and must contain the Information specified in section 9W.& I'ris section requires only information strictly necessary to make the determinations required by section 401(b) of the Act and f 960.11 of the regulations. These determInations relate primarily to national security interests and international obligations and to ensuring that unenhanced data Is available on a non-discriminatory basis. Section 960.13 sets forth procedures for treating the information submitted as confidential to the extent permitted under the Freedom of Information Act. C. Initial Agency Review (Section QW 9) NESDIS and the relevant federal agencies will have up to 21 days to review an application for sufficiency of information and request additional detail if needed. The Act provides for a review period of 120 days from receipt for a complete application (section 960.9(d)). D. Insurance of License (Sections 960.10 that MO 12) It is anticipated that the Assistant Administrator will make a determination as soon as practicable" within the statutory time limit of 120 days from receipt of a complete application. (section 960.10(a)). The criteria for approval reflect the primary concerns of the Act, national security, international obligations. and non- discriminatory access to unenhanced data. The provisions contained in the license itself are dictated In large part by the requirements of section 4o2(b) of the Act. IL Enforrama st Procedures (Subpart C) Section 403(a) of the Act gives the Administrator various powers to ensure compliance with the Act, these regulations and the license. These powers include the power to modify. suspend, or terminate the license, impose civil penalties up to $10,000 per violation, and seize objects, records or reports when there is probable cause to believe they were, are, or are likely to be used in a violation. Section 402(a) of the Act entitles the licensee to an adjudication on the record including an agency hearing with respect to any such adverse action. NOAA has developed detailed procedures generally applicable to a wide range of NOAA enforcement programs. These procedures, set forth in 15 CFR Part 00 . are Incorporated in relevant part In these regulations. The procedures for the assessment of civil penalties (1s CFR 901 subpart B) and the procedures for holding agency bearings (15 CFR 904 subpart C) an incorporated in full. Section 4(a$1) of the Act authorizes the Adadndatrntor, after notifying the licenses, to require immediate termination of activities under a license If he or she determines that the licensee 'has substantially failed" to comply with the Act, these regulations, or the teems and conditions of the license. The NOAA-wide permit sanction procedures In 15 CFR 904 subpart D are followed in principle, but not detail, in section 960.14 of these regulations. Section 403(a)(2) of the Act authorizes the Administrator to inspect the equipment. facilities. or financial records of a licensee; setion 402(b)(7) specifies that the licensee must agree to such inspection as a condition of the license. Under section 060.12(e) of these regulations inspection may take place either prior to launch to verify that the specifications of the licensed system conform to those in the application. or during operations under the license to ensure compliance with it. Such inspection can occur at "any reasonable time." III. Specific Issues Reviewers may wish to address the following issues. raised by the NPR A. Scope of Regulations Section 402 of the Act requires that persons "subject to the jurisdiction or control of the United States" must obtain a license under Title IV of the Act in order to operate a private remote- sensing space system. The Act does not apply to foreign entities operating solely from foreign territory. There may be instance& however, where foreign operators will carry out some activities in the U.S. or in conjunction with U.S. entities, such as using U.S. launch vehicles. Section 960.2 of the regulations provides guidance on the type of activities which could subject a non-U.S. operator to U.S. Jurisdiction or control for licensing purposes under the Act. The basic principle behind this section is that foreign companies competing with U.S. firms in the remote-sensing market should do so on an equal basis. On the other hand. the U.S, generally avoids extra-leeritorial application of its laws. Furthermore. trying to impose restrictions on foreign operators to ensure .quality with U.S. firms could discourage such operators from dealing with U.S companies. particularly when the fore* operator intends to gall data primarily to foreign mark ts. U.S policy is not promoted by insisting on unsofonosabis licensing conditions or on losing U.S business without any Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Federal Register / V( ii, No. 50 / Monday .Aare,, 4, 1986 ( oposed Rules 9973 practical gain. This section attempts to balance these competing Interests. It may be noted that use of a U.S. inch vehicle or platform does not by itself require a.license but is a factor to be considered with other U.S.-based activities. B. Value-Added Activities Section 402(b)(9) of the Act requires an operator who intends to engage in "value-added activities" to notify NESDIS and provide a plan to ensure non-discriminatory access to the "unenhanced data" generated by the system. This section directs NESDIS to define what constitutes a "value-added activity" by regulation. Under section 104(4) of the Act "unenhanced data" includes both unprocessed and minimally processed signals and film products. Section 104(4) defines some processes that are "minimal" (rectification of distortions. registration with respect to features of the Earth, and calibration of spectral response) and some that are not (conclusions, manipulations. or calculations derived from signals or film products or the combination of the signals or film products with other data or information). Clearly, any "minimal processing" does not constitute a "value-added -tivity" even though it may add to the efulness of the product and even increase its market value. Conversely, what may be called "enhancement activities" generally are "value-added activities" although presumably there is some distinction or there would be no need for further definition. The regulations distinguish between activities which alter or replace the "measured values" of "unenhanced data" and those which don't. "Measured values" are simply the numbers, shades, or colors assigned in some standardized system to represent the amount of radiation sensed in spectral band. Increasing the marketability alone, for example by enlarging or reducing a photo image. is not a "value-added activity". Finally. the regulations confirm that private operators who intend to engage in remote-sensing activities to further their own commercial activities, such as oil exploration or timber management, must ensure non-discriminatory access to the useful unenhanced data that they generate. The definition specifies that an operator can engage in a "value-added activity" even though no resale is contemplated. Consequently, such r'^-rators must furnish the required plan ensure equal access to the unenhanced data by other users (see also section 900.11(b)). This requirement is consistent with section 801(a) of the Act; The Act defines in detail the elements of non-discriminatory access (Section 104(3)) and the regulations do not elaborate on these' elements. C. Further Definition of Notional Security and Foreign Policy Concerns NESDIS recognizes that some prospective applicants may want greater certainty as to when NESDIS would deny or condition a license to protect national security or foreign policy interests. The relevant factors are reflected in the information requirements of section 960.6 but individual judgments are made in context affected by rapidly changing technology and must be made on a case- by-case basis. D. Enforcement Procedures In most cases the rights of licensees are fully defined by the procedures which have been developed by NOAA for its other regulatory programs. These procedures are contained in 15 CFR Part 904, the appropriate sections of which are incorporated in subpart C of these regulations. A unique statutory authority not reflected in Part 904 is provided by section 403(a)(1) of the Act: the Administrator may immediately terminate activities under a license if he or she determines that the licensee has "substantially failed to comply with" the Act, these regulations. or the license. NESDIS does not further define what constitutes a "substantial" failure. IV. Other Actions Associated With the Rulemaking A. Classification Under Executive Order 12291 . NOAA has concluded that these regulations are not major because they will not result in: (1) An annual effect on the economy of $100 million or more. (2) A major increase in costs or prices for consumers, individual industries. Federal, state or local government agencies, or geographical regions; or (3) Significant adverse effects on competition, employment, investment, productivity. innovation or on the ability of United States-based enterprises to compete with foreign based enterprises in domestic or export markets. The proposed regulations establish the procedures for licensing private operators of land remote-sensing space systems in accordance with the criteria established by the Act. The regulations will not result in any direct, or major indirect, economic or environmental effect. They are intended to promote the U.S. land remote-sensing industry by facilitating the licensing process and by ensuring that foreign companies competing with U.S. companies in the remote-sensing market do so on an equal basis to the maximum extent practicable. B. Regulatory Flexibility Act (5 U.S.C. 601 et seq.) This proposed rule is essentially procedural and establishes a process intended to minimize any adverse impact on any entity-large or small- which may need a license to operate a remote-sensing space system. Because of the large size and cost of land remote- sensing projects, small businesses are unlikely to be able to amass the capital necessary to enter the field. The only involvement of small business concerns is likely to be as contractors or subcontractors who do not require a license. The General Counsel of the Department of Commerce has, therefore, certified that this regulation will not have a significant economic effect on a substantial number of small entities. C. Paperwork Reduction Act of 1980 (Pub. L 96411) The regulations contain certain information requirements which have not been reviewed by the. Office of Management and Budget. These . information requirements are being reviewed at this time and comments on them should be directed to the Office of Information and Regulatory Affairs of OMB, Attention: Desk Officer for the Department of Commerce, NOAA. The regulations impose the minimal information requirements to allow informed decisions in implementing NOAA's licensing responsibilities under Title IV of the Act. Very few applications are expected. D. Notional Environmental Policy Act Publication of the proposed regulations does not constitute a major federal action significantly affecting the quality of the human environment. Therefore, an environmental impact statement is not required. V. Final Rules NOAA will issue final rules after the comments received in response to the Notice have been evaluated. List of Subjects In 15 CFR Part 900 Scientific equipment, Space transportation and exploration. Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 9974 Federal Register / Dated: November Ill 1985. Willies P. Bishop, Acting Aui* jant Adminislntor. Accordingly, a new Pert 900 of Title 15 of the Code of Federal Regulations is proposed to be added to read as follows. PART 960-PRIVATE LAND REMOTE- SENSING SPACE SYSTEMS B++DDaR A-General S.c 900.1 Purpose. 900.2 Scope. 900.3 Defiakloos. Subpart 5-App5cstlon Process 900.4 Pre-application consultation. 900.5 General. 9e0.e Information to be submitted with application. 900.7 Aasachaent withdrawal. and termination of an appbcatioa. 900.3 Confidentiality of ialarvustioa. 900.9 Review procedures. 900.10 Timely approval or denial of application and issuance of license. 900.11 Giteria for approval or denial. 990.12 Contents of license. t3 *W C--Entoreanrent Procedusa 9000.13 General 9000.14 License Sanctions. 9000.15 Civil penalties. 9000.16 Seizure. Authority: 15 U.S.C. 2401, at seq. Subpart A--Gsnwtl li 1160.1 Purpose. These regulations establish the minimum practicable procedures and informational requirements to license and supervise the operation of a private remote-sensing space system under Title IV of the Land Remote-Sensing Commercialization Act of 1984 (The Act). They are intended to facilitate the development of private operational remote-sensing space systems In the United States while carrying out the purposes of the Act which include in particular. (a) To preserve and promote the national security of the United States. (b) To ensure that data from private operational remote-sensing space systems will be sold on a non- discriminatory basis: and (c) To fulfill the International obligations of the United States. 96os soopa. The Act and these regulations apply to any person subject to the jurisdiction or control of the United States who operates a private remote-sensing space system either directly or through an affiliate or subsidiary. For the purposes of these regulations. a person. affiliate, or subsidery Is subject to the jurisdiction . 51. No. bd / Monday March .24, 199 Proposed Rules or control of the United States if such government atlencIss slwliW apt be person is: relied upon. (a) A U.S. Citizen; 1960.3 Deft9dons. (b) A corporation. perttrasbip. association or other entity organized or existing under the laws of the United States: (c) Any other private space system operator having substantial connections with the United States or deriving substantial benefits from US low that support its International operations. Relevant connections Include using a U.S. launch vehicle and/or platform, operating a spacecraft command and/or data acquisition station in the U.S., and processing the date at and/or marketing it from facilities within the U.S. The following examples are intended to illustrate the application of this subsection. Example Z. A non-U.& corporation launches an operational remote-sensing space system using a U.S operated launch vehicle and/or a platform leun dhad from U.S. territory. The company operates so apeaoeoalt aomrnaod gtvand station in" U.S. altboa?1 it bas technicians and suppervisor present to the U.S. to ensure integratiaa of the foreign-built satellite or space system with the launch vehicle. The company acquires data directly from the space system and processes and distributes it from facilities outside the U.S. although It advertises the availability of data and/or information In US. publications. The oowpany Is not subject to U8. Jurisdiction or control and mash s no license for its ranhote emakng activities. ExanWJe 2.A coampany's operating is the same as is Example t except that it acquires. processes and distributes the data from one or more facilities within the U.S. The company is subject to U.S. **diction or control and requires a license.- Example 3 A company's operation is the same as in Example 2 ezoept that It launches its remote-sensing space system on a non- U.S. launch vehicle from foreign territory. The company is still subject to U.S. jurisdiction or control and requires a license. Where ground activities in the U.S. are less extensive than those described above, such as mere operation of a command and data acquisition facility or a small retail distribution outlet, the Administrator will decide on an individual basis whether the operator is subject to U.S. jnrtedictlon or control for purposes of Title IV. In such cases. the use of a U.S. launch vshide and/or platform may be significant although such use alone is not a sufficient connection. Interested persons with questions may request a formal. binding opinion from the Administrator concerning the application of these regulations to their operation. Informal opinions by private operators of launch vehicles or other For the purposes of these regulations. the following terms have the following meanings: Act means the Land Remote-Sensing Commercialization Act of 1984 (Pub. L 98-305. 15 U.S.C. 4201 et seq.); Administrator means the Administrator of NOAA. or his designee: Affiliate means any person: (a) Which owns or controls more than 5% interest in the applicant or licensee, or (b) which is under common ownership or control with the applicant or licensee: Applicautioa means any written request submitted wader this part toe (a) Issuance of a Goease for the operation of a private remote- raging apace system: (b) transfer or renewal of any such license; or (c) an amendment to any such license as a result of a substantial change in any of the specified terms and conditions of the license: Boric dhta we means data collected by any licensed private remote-sensing space system that (a) Has been selected to be maintained by the United States Government in a public archive, and (b) shall remain distinct from any inventory of data that a system operator may maintain for sales and for other purposes. Section 502 of the Act ("Archiving of Data") sets forth the Government's interest and criteria for determining the 'basic data set" Experimental data means data collected by the United States Government in experimental remote- sensing programs: Measured values mean the assigned numbers, shades or colors, which represent. In some standardized system. an amount of electromagnetic radiation sensed in a spectral band. NFSDLS means the National Environmental Satellite. Data, and Information Service: NOAA means the National Oceanic and Atmospheric Administration: Person means any individual (whether or not a citizen of the United States). corporation. partnership. association. or other entity organized or existing under the laws of any nation. Remot.-sensing spoor system means any instrument or device or combination thereof and any related ground based facilities capable of seeing the Earth's surface from space by making use of the properties of the olectromagnetlc waves emitted. reflected, or diffracted by the sensed objects. For purposes of these regulations, email, hand-held cameras . Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Federal Register / vol- 51. No. 56 / Monda, arch 24, 1966 / ..oposed Rules 9975 shall not be considered remote-sensing ace systems. Subsidiary means an entity whose controlling interest is held by the applicant or licensee. Unenhanced data means unprocessed or minimally processed signals or film products collected from a licensed remote-sensing space system. Such minimal processing may include rectification of distortions, registration with respect to features of the Earth, and calibration of spectral response. Such minimal processing does not include conclusions. manipulations. or calculations derived from such signals or film products or the combination of the signals or film products with other data or information. Value-added activity means any activity that substantially changes the information content of the unenhanced data by altering or replacing the measured values of an unenhanced data product or by combining unenhanced signals or film products with other data or information. Converting assigned values from one unit of measurement to another does not constitute a value- added activity and Increasing the marketability or the price of an unenhanced data product does not by itself constitute a value-added activity. he product derived may be for sale, for ,any other form of distribution. or for the internal use of the system operator activity. Subpart B-Applkatfon Process 4 960.4 Pre-appacatlon eonsultstlon. (a) Applicants are encouraged to consult with NOAA and other relevant federal agencies at the earliest possible planning stages. Such consultation may reveal design or data collection requirements that may be accommodated early at low cost or avoid costly changes in design or data collection characteristics. Consultation at the time a license application is being prepared may prove useful in defining informational requirements and in expediting review. (b) Consultation. The Administrator shall consult upon request with any prospective applicant to assist the applicant in: (1) Property preparing the application, and (2) contacting other Government agencies involved In the application review process In order to discuss the prospective application. (c) Request. A'prospective applicant who wishes to have a pro-application -11sultation should make such request writing to the Assistant Administrator, National Environmental Satellite. Data, and Information Service. Washington. DC 20233. f 960.5 General. (2) Method of data distribution (a) Where to file. Applications and all including scheduling plans and related documents shall be filed with the procedures: Assistant Administrator. National (3) Location of major data distribution Environmental Satellite. Data, and outlets: Information Service (NESDIS), NOAA. (4) Data reproduction policy. Washington. DC 20233. (5) Pricing policy. (b) Form. No particular form is (6) The names and addresses of any required but each application must be in parties that will engage in the marketing writing, must include all of the of data on a contractual basis with the information specified in this subpart. applicant, or its affiliates and and must be signed as follows: subsidiaries: and (1) For a corporation: By a principal (7) Any other information necessary executive officer at least at the level of to satisfy the requirements of section vice-president 601 of the Act. (2) For a partnership or a sole (f) Any plans that the applicant, or proprietorship: by a general partner or any affiliate or subsidiary may have for proprietor, respectively: or engaging in value-added activities, (3) Foram association or other entity: including a plan and pricing policy for by a executive officer. ensuring non discriminatory access to (c) Nom of avpies. fight (8) copies unenbanced data. . of each application must be submitted. (g) All existing or anticipated f secs IMormatlon to be submitted with agreements regarding system operation between the applicant, its affiliates and WpkWm The following information on the subsidiaries, and any foreign nation, applicant. and its affiliates and entity or consortium. (b) Proposed method of disposition of absidiaries shall be provided by the any remote-sensing satellites owned or appplicant: (a) The name. mailing address. operated by the applicant telephone camber and citizenship of the In the case of an application for an applicant and any affiliates or amendment to an existing license, only subsidiaries, and of each director or modifications or additions to previously owner of greater than five (5) percent submitted information need be provided. interest. 0.7 Amendarent, wllhdrawsl. and (b) A copy of the charter or instrument ? ~ 96~ of ant w h an app N r by which the applicant was formed and (a) B information in an application authorized to do business. U the becomes materially inaccurate or applicant a corporation the its charter incomplete after it is filed but before the shall b be e is certified by by the Secretary of a State or other appropriate authority of license application proceeding is the jurisdiction in which incorporated. completed the applicant must promptly (c) The name. address. and telephone file an amendment that contains the number of a person upon whom service corrected or additional information. The of all documents may be made. applicant should follow the procedures (d) Adequate operational information specified in section 960.5 for an.originel regarding the applicant's remote-sensing filing. space system on which to base review (b) If the Administrator determines to ensure compliance with national that any amendment constitutes a major security and international requirements and substantial change to the including, applicant's original proposal. the (1) The date of intended Administrator may. commencement of operations and the (1) Suspend the time deadlines expected duration of such operations: prescribed in the Act and these (2) The method of launch. and the regulations for processing the name and location of the operator of the application, pending review of the launch vehicle and the lanuch site: amendment: or (3) The range of orbits and altitudes (2) Require the applicant to submit a requested for authorized operation: new license application. (4) The range of spatial resolution or (c) An applicant may withdraw an instantaneous field of view requested: application at any time before the and license application review is completed (5) The spectral bands requested for of withdrawal e erring or tmailing hel Administrator. notice authorized operation. (e) The applicant's intended data (d) The Administrator shall terminate acquisition and distribution plans. , review of a license application It Including. (1) The application is withdrawn (1) Plans for data transmission to the before the decision approvtng or ground: denying it is issued: or Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Federal Register / Vol. 51, No. 58 / Monda;, March 24, 1988 I Proposed Rules (2) The applicant. after written notice by the Administrator pursuant to 4 960.9(c), does not provide adequate additional information to complete the application within the time stated in the written notice and the Administrator elects to disapprove the application under 4 900.10(b). 4 960.6 Conedenttaltty of Informatlon. (a) Any person who submits information pursuant to this part. considered to be a trade secret, or commercial or financial information that is privileged or confidential, may request in writing that the Information be given confidential treatment. Such request should: (1) Be submitted at the time of submission of the information: and (2) State the period of time for which confidential treatment is desired (e.g., until a certain date, or until the occurence of a certain event, or permanently). (b) Information for which confidential treatment is requested must be clearly marked with a legend such as "Proprietary Information" or "Confidential Treatment Requested." Where such marking proves impracticable. a cover sheet containing such legend must be securely attached. (c) If a request for confidential treatment is received after the information itself is received, NESDIS will try to associate the request with copies of the information. but cannot guarantee that such efforts will be effective. (d) Any request for confidential treatment may include a written justification, stating why the information is a trade secret, or commercial or financial information that is privileged or confidential, and describing: (1) The commercial or financial nature of the information; (2) The nature and extent of the competitive advantage enjoyed as e result of possession of the information; (3) The nature and extent of the competitive harm that would result from public disclosure of the informatiop; (4) The extent to which the information has been disseminated to employees and contractors of the person submitting the information; (5) The extent to which persons other than the person submitting the information possess, or have access to, the same information: and (6) The nature of the measures that have been and are being taken to protect the information from disclosure. (e) Request for disclosure. (1) Requests for disclosure of information submitted, reported. or collected pursuant to this part shall be In accordance with 15 CFR 903.7. (2) NOAA will not usually determine whether confidential treatment is warranted until it receives a request for disclosure of the informtion, unless it would encourage the submission of information not required to be submitted under this part. (3) Upon receipt of a request for disclosure of information for which confidential treatment has been requested, the Administrator will notify immediately the person who submitted the information and: (i) Inform such person of the date'y' which NOAA must determine whether confidential treatment is warranted in order to comply with the request for disclosure (usually within 10 working days of receipt of the request); and (ii) Inquire whether such person continues to request confidential treatment. (4) If the person waives or withdraws a request for confidential treatment in full or in part. the person is strongly encouraged to deliver to NOAA a written statement to that effect. If the person confirms the request for confidential treatment, such person is strongly encouraged to deliver to NOAA a written statment is sufficient time for NOAA to fully consider it in making iti formal determination (generally, not later than the close of business on the fourth working day after being notified under paragraph (e)(3) of this section. Such statment may: (i) Address the issues listed in paragraph (d) of this section, describing the basis for believing that the information is deserving of confidential treatment, if such a statement was not previously submitted; (ii) Update or supplement any statement previously submitted under paragraph (d) of this section; and (iii) Present arguments against disclosure of the information. (5) To the extent permitted by applicable law, part or all of any statement submitted under this section will be treated as confidential if so requested by the person submitting the response. 4 960.9 Review procedurse. (a) The Administrator shall immediately forward a copy of any application or a summary thereof to the Department of Defense, the Department of State, and any other federal agencies determined to have a substantial interest In the proposed activity, such as the National Aeronautics and Space Administration, and the Department of Transportation. The Administrator shall advise such agencies of the deadline prescribed by paragraph (b) of this section to require additional information from the applicant. (b) Within 21 days after the receipt of an application. the Administrator shall determine whether the application appears to contain all of the information required by Subpart B of these regulations. In making this determination the Administrator shall consider timely comments provided by the federal agencies consulted under paragraph (a) of this section. (c)1f the Administrator determines that all of the required information is not contained in the application, the Administrator may require by written notice to the applicant. that the applicant file further information, analysis. or explanation.. (d) If the Administration requires further information under paragraph (c) of this section, the time limitations prescribed by sectin 401(c) of the Act do not begin to run until the date on which the Administrator determines that the application appears to be complete and so notifies the applicant. (e) Within sixty days of receipt of a complete application, each federal agency consulted under paragraph (a) of this section shall recommend approval or disapproval of the application. If an agency recommends disapproval. it shall state why it believes the application does not comply with any law or regulation within its area of responsibility and how it believes the application may be amended or the license conditioned to comply with the law or regulation in question. 1960.10 Timely approval or dental of application and Issuance of Icens.. (a) The Administrator shall approve or deny a complete application as soon as practicable. If final action has not occurred within one hundred and twenty days agter receipt, the Administrator shat inform the applicant of any pending issues and of actions required to resolve them. (b) If the Administrator denies the application. he or she shall provide the applicant with a concise statement in writing of the reasons therefor. Within 30 days after receipt of a notice of denial, the applicant may appeal by written notice to the Administrator and may request either an informal hearing or a formal hearing to be held in accordance with the procedures set forth at 15 CFR Part 904. Subpart C. (c) As soon as practicable after the close of a hearing or. In the case of a formal hearing, the issuance of a recommended decision by the Administrative Law judge, the Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699RO01100660062-8 W/n reaeral Megister / vol. Si, NJo. 5o / 11 arch 24, 1V I rw osed Rules immediate termination of some or all licensed activities under paragraph (c) or unless the licensee requests a hearing under paragraph (b) of this section. The NOLS also may propose to assess a civil penalty in accordance with 1960.15. (b) Within 30 days after receipt of the NOLS. the licensee may request a hearing by serving a written request on the Administrator either in person or by certified or registered mail, return receipt requested. at the Address specified in the NOIS. Such hearing shall be held in accordance with the procedures set forth at 15 CFR Part 904. Subpart C. (c) If the Administrator determines that the licensee has substantially failed to comply with any provision of the Act. these regulations, or with term, condition, or restriction of the license. the NOIS will include a finding to this effect and may require immediate termination of some or all licensed operations. Any request for a hearing under paragraph (b) of this section will not delay immediate termination under this paragraph. 1960.15 Ctvp penattles. Section 403(a)(3) of the Act authorizes the Administrator to assess civil penalties of up to $10,000 for any violation of any requirement of the Act, these regulations or any term or condition of a license. Each daj of operation in violation constitutes a separate violation. Such penalties will be assessed in accordance with the procedures set forth at 15 CFR Part 904, Subpart B. f 960.16 Seizure. (a) If the Administrator determines that there is probable cause to believe that any object. record, or report was used. is being used or is likely to be used in violation of the Act, these regulations or the requirements of any license, the Administrator may seize any such item and issue the licensee a Notice of Seizure (NOS) containing: (1) A description of the object. record, or report seized; (2) A concise statement of the facts believed to show use or possible use in a violation; and (3) A specific reference to the provisions of the Act, regulation, or license allegedly vilolated. Within 30 days after receipt of a NOS. the licensee may request a hearing by serving a written and dated request on the Administrator either in person or by certified or registered mail, return receipt requested, at the address specified in the notice. Such hearing shall be held in accordance with the procedures set fort 15 CFR Part 004. Subpart C. For good cause shown, the Administrator may in his or her sole discretion return the seized item pending the outcome of the hearing. (FR Doc. 86-6199 Filed 3-21-88: 8:45 am) lsilaq COOS !61045-e (26 CFR Part 1 and 602) LR-19-80 Unisex Annuity T Treasury. ACTtost Notice of propos RUM ARY: This document co sins prop Jed regulations relating the ennui tables used to compute e portion f the amount received as n annuity at is includible in gross income. estions have arisen concerning a gender distinction in th existing tab! and the outdated mortality exp 'ence upon which those tables are base . These regulations would affect tax ayers receiving for which they hav aid premiums or other consideration d provide them with the guidance n ed to determine the amount includible gross income with respect to such co tracts. This document also contains roposed regulations relating to th computations necessary to determine amount excludable from an emplo e's gross income by allocation of con 'butions when the actual employer c tributions are not known. This documen also proposes to remove certain re ations relati to defined benefit plena at provi d benefits for employees o were e er self-employed or a ahareh der-employee. DATER ritten comments and reques fora pub c hearing must be delivered mailed byVay 8. 198& The amendmenti to 11' 1.72 1.72- 9, and are proposed to effective on') y 1, 1988, and tobae pply to amounts recei d as an annuity after June 30, 1988. In ddition, the proposed amendments to 1 .72-6 include transitional rules a licable to amounts received under con cts in which an amount is invested be re July 1, 1988. The amendments to f (b)-1 1. -7 (d)(4)(iv) are proposed to taxable years beginning aft July 1. 1986. The removal of If 1.401(a)-18 and 1.401W -1 -6 Is proposed td . be eRectlva tot are beginning after December 31. lttttq. h.oo t Send comet is and requests for a public hearing con ing the proposed amendments re pg to the annuity tables to: Commis) or of Internal Revenue. Attention: LR:T (LR-10-80J. Washington. DC 202 Send comments and requests fo tic hearing concerning IRC sectio Rave e. Attention: CC:LR:T:EE-114-82, Wash' on. DC 20224. F0" INFORMATION CONTT: For furthe' ormation concerning the proposed ame eats relating to the annuity tables cfttact: Annette J. Guarisco of the elation and Regulations Divisio Office of Chief Counsel. Internal Re ue Service. 1111 Constitution Avenue. NT.. Washington, DC 20224 (Attention: CC. :T). Telephone 202-586-3238 ( t a toll-free call). For further information con ming IRC SECTIONS 401(a)(18), 401 or 403(b) CONTACT: Monica Rose um of the Employee Plans and Exemp Organizations Division. Office of Ch f unsel. Internal Revenue Service, 11 stitution Avenue, NW.. Washington, 224 (Attention: CC:LR:T:EE-114- 82). lephone 202-,5864422 (not a toll- free c ). f NTARY INFORMATION: Backgro This doc nt contains proposed amendments t the income Tax Regulations (28 Part 1) and the Table of OMB )Vol Numbers (26 CFR Part 602). The pro p d amendments would update and g er-neutralize the annuity tables used to X termine the exclusion ratio applicab to amounts received as annuities un annuity, endowment, or life insurers contracts. Section 72 permits a taxpaye o exclude. from gross income that part of y amount received as an annuity hick bears the same ratio to such amount as the investment in the contract as of the annuity starting date bears to the expected return under the contract as of uch date. If the expected return Pp ends in whole or in part on the life e ectancy of one or more Individuals, the tatute requires that the expected return be computed with reference to actuarial tables prescribed by the Secretary of the Treasury. Soon after section 72 was enacted in 1954. the Secretary published regulations containing tables based on 1937 Individual annuitant mortality and distinguished by gender. The effect of Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP89M00699R001100660062-8