Space Enterprise Development Act
Enacted via AB 1532 of 2003
Chapter 627 of the 2003 Statutes
Affecting the California Government Code
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 following meanings:
(a) "Agency" means the Business, Transportation and Housing Agency.
(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 and Housing.
(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 business development.
(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 corporation:
(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 enterprise.
(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 development.
(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 corporation.
(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's license.
(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 identified.
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 solicitation.
(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:
Jobs created and retained by the implementation of the project.
(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 project.
(I) A demonstration of technical feasibility and an assessment of programmatic risk.
(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 corporation.
(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 more criteria.
(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 application.
(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 that purpose.
(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.