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GC Sec 13999-13999.4
13999. This chapter shall be known and may be cited as the Space
Enterprise Development Act.
13999.1. For purposes of this act, the following terms have the
(a) "Agency" means the Business, Transportation and Housing
(b) "Authority" means the California Spaceport Authority.
(c) "Date of designation" means the date that the spaceport
receives designation by the authority pursuant to Section 13999.3.
(d) "Governing body" means the governing body of a city, county,
city and county, special district, or joint powers authority.
(e) "Launch" means to place, or attempt to place, a launch vehicle
into a ballistic, suborbital, or orbital trajectory, into Earth
orbit in outer space, or otherwise into outer space, and also is a
means of placing a commercial, civil, or military payload into Earth
orbit or beyond, including all activities involved in the preparation
of a launch vehicle for flight, including all processing, servicing,
and support activities that take place at a launch site or at a
California mission control support site for ocean launches. A
"launch" begins with the arrival of the launch vehicle or payload at
the launch site.
(f) "Launch site" means a location from which a space launch or
operation directly associated with a space launch takes place, a
location at which a launch vehicle or its payload, if any, is
intended to land, or as defined in the Commercial Space Launch Act
(49 U.S.C. Sec. 70101 and following). The site includes any
right-of-way directly associated with the space launch or reentry
operations and all facilities and support infrastructure related to
launch, reentry, or payload processing.
(g) "Launch vehicle" means a vehicle specifically designed and
built to operate in or place a payload in the upper atmosphere or
outer space. "Launch vehicles" include, but are not limited to,
expendable space launch vehicles and reusable launch vehicles.
(h) "Operation of a launch site" means the conduct of approved
safety operations at a launch site to support the launching of
vehicles and payloads.
(i) "Operation of a reentry site" means the conduct of safety
operations at a fixed site on Earth at which a reentry vehicle and
its payload, if any, is intended to land.
(j) "Payload" means an object, including, but not limited to, a
satellite that a licensed launch site undertakes to place into outer
space by means of a launch vehicle, including components of the
vehicle specifically designed or adopted to support that activity.
(k) "Person" means any individual and any corporation,
partnership, joint venture, association, or other entity organized or
existing under the laws of any state or nation.
(l) "Reentry" means the return of any launch vehicle that has been
placed in a ballistic, suborbital, or orbital trajectory, and its
payload, if any, to the Earth. "Reentry" includes all activities
involved in the postflight ground operations. A "reentry" ends when
a launch vehicle or payload, if any, has completed its descent to
Earth and is retrieved.
(m) "Reentry site" means the location on Earth at which a reentry
is intended to occur, as defined in a license issued or transferred
by the United States Secretary of Transportation, and any necessary
support infrastructure related to reentry or payload recovery.
(n) "Reusable launch vehicle" means a vehicle that is designed to
launch into an orbital or suborbital trajectory, into Earth orbit in
outer space, or otherwise into outer space, that returns to Earth and
is reused for a subsequent future launch.
(o) "Secretary" means the Secretary of Business, Transportation
(p) "Spaceport" means an entity that has been designated pursuant
to Section 13999.3.
13999.2. (a) Subject to the availability of funds appropriated for
that purpose, the Business, Transportation and Housing Agency shall
implement a space enterprise development program to foster activities
that increase the competitiveness of space enterprise in California,
including, but not limited to, the commercial use of space, space
vehicle launches, space launch infrastructure, manufacturing, applied
research, technology development, economic diversification, and
(b) The agency may contract with other state or private agencies,
nonprofit corporations, universities, firms, or individuals for the
performance of technical or specialized work, or for services related
to space enterprise development programs.
(c) The secretary shall select a California nonprofit corporation
to assist the agency in its administration of space enterprise
economic development activities through programs, projects, grants,
partnerships, networks, and collaboration. The corporation shall be
selected through a solicitation process established by the agency.
The solicitation process shall include criteria for selection of the
corporation, which shall include, but not be limited to, demonstrated
experience in space enterprise and the ability to perform space
enterprise development activities described in subdivision (d).
(d) The corporation may perform one or more of the following
activities, as determined contractually between the agency and the
(1) Serve as the California Spaceport Authority with
responsibilities specified in Section 13999.3.
(2) Pursue grants from the federal government or from private
businesses, foundations, or individuals, for California space
enterprise activities, including, but not limited to, studies,
services, infrastructure improvements and modernization, and defense
transition programs, to the extent permitted by law.
(3) Identify science and technology trends that are significant to
space enterprise and the state and act as a clearinghouse for space
enterprise issues and information.
(4) Develop and implement a state strategy for applying and
commercializing technology to create jobs, respond to industry
changes, and foster innovation and competitiveness in space
(5) Provide information to the secretary relevant to changes in
federal, state, and local statutes and regulations that will enhance
the development of space enterprise in California.
(6) Provide information to the secretary regarding the development
of laws, regulations, decisions, or determinations affecting the
economic and employment impacts of space enterprise in California.
(7) Provide recommendations to the secretary for appropriate state
funding mechanisms and amounts to promote development of space
enterprise in California, including education and workforce
(8) Provide recommendations to the secretary in the form of
strategic planning documents.
(9) Review applications for, and promote, the California Space
Enterprise Competitive Grant Program established by Section 13999.4.
(e) (1) The agency and the corporation shall enter into an annual
contract specifying the activities to be performed by the
(2) Pursuant to the contract, the corporation shall submit to the
agency quarterly reports of its activities and finances. The
quarterly reports shall be of sufficient detail for the agency to
determine whether the corporation is in compliance with the annual
contract between the agency and the corporation.
(3) The annual contract shall include conflict of interest
requirements developed by the agency.
(4) Failure of the corporation to comply with the conditions in
the annual contract, as evidenced in the quarterly reports and any
supplemental monitoring of the corporation by the agency, shall
result in the cancellation of the annual contract and deselection of
the corporation. Upon the deselection of the corporation, the agency
shall utilize the solicitation process set forth in subdivision (c)
to select a replacement corporation.
13999.3. (a) The California Spaceport Authority shall designate
spaceports for the operation of launch sites or reentry sites.
(b) Any city, county, city and county, special district, joint
powers authority, or private entity, as appropriate, may apply to the
authority for designation as a spaceport.
(c) (1) The application described in subdivision (b) shall require
at least the following information to be submitted to the authority:
(A) A written notice of intent to apply for a federal launch site
operator's license from the United States Secretary of Transportation
under the authority of the Commercial Space Launch Act (49 U.S.C.
Sec. 70101 and following), to be received by the authority no later
than 60 days prior to the submission of the application to the United
States Secretary of Transportation.
(B) A copy of the perfected application submitted to the United
States Secretary of Transportation for a federal launch site operator'
(C) A written notice of acceptance or denial by the United States
Secretary of Transportation for a federal launch site operator's
license. If acceptance is granted, a copy of the license shall be
included in the written notice.
(2) This subdivision shall not apply to any launch site operator
who is federally licensed on or before January 1, 2001.
(d) The authority shall withdraw spaceport designation upon
receipt of notice from the Federal Aviation Administration that the
launch site operator of the spaceport no longer meets safety
requirements or that safety deficiencies in the spaceport have
remained uncorrected for a reasonable period of time after being
13999.4. (a) The California Space Enterprise Competitive Grant
Program is hereby established within the Business, Transportation and
Housing Agency to provide funding, upon appropriation by the
Legislature, for the development of space enterprise in California.
For purposes of this section, space enterprise activities shall
include, but are not limited to, the commercial use of space, space
vehicle launches, space launch infrastructure, manufacturing, applied
research, technology development, economic diversification, and
business development. Entities conducting activities in California
intended to improve the competitiveness of space enterprise in
California, including public, private, educational, commercial,
nonprofit, or for-profit entities may apply for grants.
(b) (1) If program funding is appropriated by the Legislature, the
corporation selected pursuant to subdivision (c) of Section 13999.2
of this bill shall, at least annually, issue solicitations. No
solicitation shall be issued without the prior review and approval by
the agency. If the corporation has not issued a solicitation within
180 days of the appropriation of funds, the agency shall issue the
(2) Solicitations developed by the corporation shall include
minimum eligibility and requirements. Additional requirements may be
added to each year's grant solicitation. The solicitation shall
address at least all of the following:
(A) Jobs created and retained by the implementation of the
(B) Cost sharing by other project participants, which should
include at least one of the following:
(i) A private sector company or companies.
(ii) One or more foundations, industry associations, or nonprofit
cooperative associations, or any combination thereof.
(iii) In-kind support, which may include staff and facilities.
(iv) Federal or local government funding.
(C) A condition that grant funds will not be used to supplant
other project funds.
(D) A demonstration that a majority of the project will be
undertaken in California.
(E) An agreement among all project participants as to intellectual
property rights relative to the project.
(F) The potential impact on the state's economy.
(G) The cost-effectiveness of the project.
(H) The importance of state funding for the viability of the
(I) A demonstration of technical feasibility and an assessment of
(c) In evaluating grant proposals, the corporation shall establish
an impartial review panel composed of technical and scientific
experts and government representatives to review grant applications.
The panel shall be composed of members from throughout the state who
are knowledgeable about activities related to space enterprise. No
more than 30 percent of the panel members shall be government
representatives, and all other members shall either be actively
involved in, or be technical and scientific experts in activities
related to, space enterprise. No more than 30 percent of the panel
members shall be members of, or on the board of directors of, the
(d) (1) The review panel shall review all applications received by
the deadline specified in the solicitation in order to determine the
applications that are complete and that meet the criteria set forth
in the solicitation. The review panel may rely on experts who are
not part of the panel in order to determine compliance with one or
(2) All applications meeting the criteria set forth in paragraph
(1) shall be submitted to the agency.
(3) The agency may remove one or more applications from those
submitted by the review panel upon a determination that the
application did not meet the criteria set forth in paragraph (1).
The agency shall rank the grant applications received from the review
panel, minus any applications removed by the agency because of
failure to meet the criteria. The ranking shall be based upon
criteria stated in the solicitation. The ranking shall include
recommendations as to the amount of state funding for each grant
(e) The secretary shall award program grants based upon the
criteria set forth in paragraph (1) of subdivision (d).
(f) The funding determination shall be transmitted to the Governor
and the chairpersons of the Senate and Assembly fiscal committees
and shall be subject to the availability of funds appropriated for
(g) The solicitation process set forth in this section shall not
be subject to Chapter 3.5 (commencing with Section 11340) of Part 1.
(h) The Legislature hereby finds and declares that the granting of
funds to private entities serves a public purpose by assisting an
industry vital to the health and welfare of the State of California.