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Contents Intoroduction Preliminaries Chapter 1 Chapter 2
Chapter 3 Chapter 4 Appendix Index


II-COORDINATION OF AERONAUTICAL AND SPACE ACTIVITIES NATIONAL AERONAUTICS AND SPACE COUNCIL

[Sec. 201. (A) There is hereby established, in the Executive Office of the President, the National Aeronautics and Space Council. . . .]5

SEC. 202.6 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

(a) There is hereby established the National Aeronautics and Space Administration (hereinafter called the "Administration"). The Administration shall be headed by an Administrator, who shall be appointed from civilian life by the President by and with the advice and consent of the Senate. Under the supervision and direction of the President, the Administrator shall be responsible for the exercise of all powers and the discharge of all duties of the Administration, and shall have authority and control over all personnel and activities thereof.
(b) There shall be in the Administration a Deputy Administrator, who shall be appointed from civilian life by the President by and with the advice and consent of the Senate and shall perform such duties and exercise such powers as the Administrator may prescribe. The Deputy Administrator shall act for, and exercise the powers of, the Administrator during his absence or disability.
(c) The Administrator and the Deputy Administrator shall not engage in any other business, vocation, or employment while serving as such.



SEC. 203. FUNCTIONS OF THE ADMINISTRATION

(a) The Administration, in order to carry out the purpose of this Act, shall-
(1) plan, direct, and conduct aeronautical and space activities;
(2) arrange for participation by the scientific community in planning scientific measurements and observations to be made through use of aeronautical and space vehicles, and conduct or arrange for the conduct of such measurements and observations; and
(3) provide for the widest practicable and appropriate dissemination of information concerning its activities and the results thereof:
(b)
(1) The Administration shall, to the extent of appropriated funds, initiate, support, and carry out such research, development, demonstration, and other related activities in ground propulsion technologies as are provided for in sections 4 through 10 of the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976.7
(2) The Administration shall initiate, support, and carry out such research, development, demonstrations, and other related activities in solar heating and cooling technologies (to the extent that funds are appropriated therefor) as are provided for in sections 5, 6, and 9 of the Solar Heating and Cooling Demonstration Act of 1974.8
(c) In the performance of its functions the Administration is authorized-
(1) to make, promulgate, issue, rescind, and amend rules and regulations governing the manner of its operations and the exercise of the powers vested in it by law;
(2) to appoint and fix the compensation of such officers and employees as may be necessary to carry out such functions. Such officers and employees shall be appointed in accordance with the civil-service laws and their compensation fixed in accordance with the Classification Act of 1949, except that (A) to the extent the Administrator deems such action necessary to the discharge of his responsibilities, he may appoint not more than four hundred and twenty-five of the scientific, engineering, and administrative personnel of the Administration without regard to such laws, and may fix the compensation of such personnel not in excess of the highest rate of grade 18 of the General Schedule of the Classification Act of 1949, as amended, and 9 (B) to the extent the Administrator deems such action necessary to recruit specially qualified scientific and engineering talent, he may establish the entrance grade for scientific and engineering personnel without previous service in the Federal Government at a level up to two grades higher than the grade provided for such personnel under the General Schedule established by the Classification Act of 1949, and fix their compensation accordingly;
(3) to acquire (by purchase, lease, condemnation, or otherwise), construct, improve, repair, operate, and maintain laboratories, research and testing sites and facilities, aeronautical and space vehicles, quarters and related accommodations for employees and dependents of employees of the Administration, and such other real and personal property (including patents), or any interest therein, as the Administration deems necessary within and outside the continental United States; to acquire by lease or otherwise, through the Administrator of General Services, buildings or parts of buildings in the District of Columbia for the use of the Administration for a period not to exceed ten years without regard to the Act of March 3, 1877 (40 U.S.C. 34); 10 to lease to others such real and personal property; to sell and otherwise dispose of real and personal property (including patents and rights thereunder) in accordance with the provisions of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.); and to provide by contract or otherwise for cafeterias and other necessary facilities for the welfare of employees of the Administration at its installations and purchase and maintain equipment therefor;
(4) to accept unconditional gifts or donations of services, money, or property, real, personal, or mixed, tangible or intangible;
(5) without regard to section 3648 of the Revised Statutes, as amended (31 U.S.C. 529), to enter into and perform such contracts, leases, cooperative agreements, or other transactions as may be necessary in the conduct of its work and on such terms as it may deem appropriate, with any agency or instrumentality of the United States, or with any State, Territory, or possession, or with any political subdivision thereof, or with any person, firm, association, corporation, or educational institution. To the maximum extent practicable and consistent with the accomplishment of the purposes of this Act, such contracts, leases, agreements, and other transactions shall be allocated by the Administrator in a manner which will enable small-business concerns to participate equitably and proportionately in the conduct of the work of the Administration;
(6) to use, with their consent, the services, equipment, personnel, and facilities of Federal and other agencies with or without reimbursement, and on a similar basis to cooperate with other public and private agencies and instrumentalities in the use of services, equipment, and facilities. Each department and agency of the Federal Government shall cooperate fully with the Administration in making its services, equipment, personnel, and facilities available to the Administration, and any such department or agency is authorized, notwithstanding any other provision of law, to transfer to or to receive from the Administration, without reimbursement, aeronautical and space vehicles, and supplies and equipment other than administrative supplies or equipment;
(7) to appoint such advisory committees as may be appropriate for purposes of consultation and advice to the Administration in the performance of its functions;
(8) to establish within the Administration such offices and procedures as may be appropriate to provide for the greatest possible coordination of its activities under this Act with related scientific and other activities being carried on by other public and private agencies and organizations;
(9) to obtain services as authorized by section 3109 of title 5, United States Code, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS-18;11
(10) when determined by the Administrator to be necessary, and subject to such security investigations as he may determine to be appropriate, to employ aliens without regard to statutory provisions prohibiting payment of compensation to aliens;
(11) to provide by concession, without regard to section 321 of the Act of June 30, 1932 (47 Stat. 412; 40 U.S.C. 303b), on such terms as the Administrator may deem to be appropriate and to be necessary to protect the concessioner against loss of his investment in property (but not anticipated profits) resulting from the Administration's discretionary acts and decisions, for the construction, maintenance, and operation of all manner of facilities and equipment for visitors to the several installations of the Administration and, in connection therewith, to provide services incident to the dissemination of information concerning its activities to such visitors, without charge or with a reasonable charge therefor (with this authority being in addition to any other authority which the Administration may have to provide facilities, equipment, and services for visitors to its installations). A concession agreement under this paragraph may be negotiated with any qualified proposer following due consideration of all proposals received after reasonable public notice of the intention to contract. The concessioner shall be afforded a reasonable opportunity to make a profit commensurate with the capital invested and the obligations assumed, and the consideration paid by him for the concession shall be based on the probable value of such opportunity and not on maximizing revenue to the United States. Each concession agreement shall specify the manner in which the concessioner's records are to be maintained, and shall provide for access to any such records by the Administration and the Comptroller General of the United States for a period of five years after the close of the business year to which such records relate. A concessioner may be accorded a possessory interest, consisting of all incidents of ownership except legal title (which shall vest in the United States), in any structure, fixture, or improvement he constructs or locates upon land owned by the United States; and, with the approval of the Administration, such possessory interest may be assigned, transferred, encumbered, or relinquished by him, and, unless otherwise provided by contract, shall not be extinguished by the expiration or other termination of the concession and may not be taken for public use without just compensation;12
(12) with the approval of the President, to enter into cooperative agreements under which members of the Army, Navy, Air Force, and Marine Corps may be detailed by the appropriate Secretary for services in the performance of functions under this Act to the same extent as that to which they might be lawfully assigned in the Department of Defense;
(13)
(A) to consider, ascertain, adjust, determine, settle, and pay, on behalf of the United States, in full satisfaction thereof, any claim for $25,000 13 or less against the United States for bodily injury, death, or damage to or loss of real or personal property resulting from the conduct of the Administration's functions as specified in subsection (a) of this section, where such claim is presented to the Administration in writing within two years after the accident or incident out of which the claim arises; and
(B) if the Administration considers that a claim in excess of $25,000 is meritorious and would otherwise be covered by this paragraph, to report the facts and circumstances thereof to the Congress for its consideration;14 and[14] Repealed.15



SEC. 204. [Civilian-Military Liaison Committee] abolished 16


SEC. 205. INTERNATIONAL COOPERATION

The Administration, under the foreign policy guidance of the President, may engage in a program of international cooperation in work done pursuant to this Act, and in the peaceful application of the results thereof, pursuant to agreements made by the President with the advice and consent of the Senate.17



SEC. 206. REPORTS TO CONGRESS

(a) The President shall transmit to the Congress in January of each year a report, which shall include (1) a comprehensive description of the programed activities and the accomplishments of all agencies of the United States in the field of aeronautics and space activities during the preceding calendar year, and (2) an evaluation of such activities and accomplishments in terms of the attainment of, or the failure to attain, the objectives described in section 102(c) of this Act.
(b) Any report made under this section shall contain such recommendations for additional legislation as the Administrator or the President may consider necessary or desirable for the attainment of the objectives described in section 102(c) of this Act.
(c) No information which has been classified for reasons of national security shall be included in any report made under this section, unless such information has been declassified by, or pursuant to authorization given by, the President.18



SEC. 305. PROPERTY RIGHTS IN INVENTIONS

(a) Whenever any invention is made in the performance of any work under any contract of the Administration, and the Administrator determines that-
(1) the person who made the invention was employed or assigned to perform research, development, or exploration work and the invention is related to the work he was employed or assigned to perform, or that it was within the scope of his employment duties, whether or not it was made during working hours, or with a contribution by the Government of the use of Government facilities, equipment, materials, allocated funds, information proprietary to the Government, or services of Government employees during working hours; or
(2) the person who made the invention was not employed or assigned to perform research, development, or exploration work, but the invention is nevertheless related to the contract, or to the work or duties he was employed or assigned to perform, and was made during working hours, or with a contribution from the Government of the sort referred to in clause (1), such invention shall be the exclusive property of the United States, and if such invention is patentable a patent therefor shall be issued to the United States upon application made by the Administrator, unless the Administrator waives all or any part of the rights of the United States to such invention in conformity with the provisions of subsection (f) of this section.
(b) Each contract entered into by the Administrator with any party for the performance of any work shall contain effective provisions under which such party shall furnish promptly to the Administrator a written report containing full and complete technical information concerning any invention, discovery, improvement, or innovation which may be made in the performance of any such work.
(c) . No patent may be issued to any applicant other than the Administrator for any invention which appears to the Commissioner of Patents to have significant utility in the conduct of aeronautical and space activities unless the applicant files with the Commissioner, with the application or within thirty days after request therefor by the Commissioner, a written statement executed under oath setting forth the full facts concerning the circumstances under which such invention was made and stating the relationship (if any) of such invention to the performance of any work under any contract of the Administration. Copies of each such statement and the application to which it relates shall be transmitted forthwith by the Commissioner to the Administrator.
(d) Upon any application as to which any such statement has been transmitted to the Administrator, the Commissioner may, if the invention is patentable, issue a patent to the applicant unless the Administrator, within ninety days after receipt of such application and statement, requests that such patent be issued to him on behalf of the United States. If, within such time, the Administrator files such a request with the Commissioner, the Commissioner shall transmit notice thereof to the applicant, and shall issue such patent to the Administrator unless the applicant within thirty days after receipt of such notice requests a hearing before a Board of Patent Interferences on the question whether the Administrator is entitled under this section to receive such patent. The Board may hear and determine, in accordance with rules and procedures established for interference cases, the question so presented, and its determination shall be subject to appeal by the applicant or by the Administrator to the United States Court of Appeals for the Federal Circuit 26 in accordance with procedures governing appeals from decisions of the Board of Patent Interferences in other proceedings.
(e) Whenever any patent has been issued to any applicant in conformity with subsection (d), and the Administrator thereafter has reason to believe that the statement filed by the applicant in connection therewith contained any false representation of any material fact, the Administrator within five years after the date of issuance of such patent may file with the Commissioner a request for the transfer to the Administrator of title to such patent on the records of the Commissioner. Notice of any such request shall be transmitted by the Commissioner to the owner of record of such patent, and title to such patent shall be so transferred to the Administrator unless within thirty days after receipt of such notice such owner of record requests a hearing before a Board of Patent Interferences on the question whether any such false representation was contained in such statement. Such question shall be heard and determined, and determination thereof shall be subject to review, in the manner prescribed by subsection (d) for questions arising thereunder. No request made by the Administrator under this subsection for the transfer of title to any patent, and no prosecution for the violation of any criminal statute, shall be barred by any failure of the Administrator to make a request under subsection (d) for the issuance of such patent to him, or by any notice previously given by the Administrator stating that he had no objection to the issuance of such patent to the applicant therefor.
(f) Under such regulations in conformity with this subsection as the Administrator shall prescribe, he may waive all or any part of the rights of the United States under this section with respect to any invention or class of inventions made or which may be made by any person or class of persons in the performance of any work required by any contract of the Administration if the Administrator determines that the interests of the United States will be served thereby. Any such waiver may be made upon such terms and under such conditions as the Administrator shall determine to be required for the protection of the interests of the United States. Each such waiver made with respect to any invention shall be subject to the reservation by the Administrator of an irrevocable, nonexclusive, nontransferrable, royalty-free license for the practice of such invention throughout the world by or on behalf of the United States or any foreign government pursuant to any treaty or agreement with the United States. Each proposal for any waiver under this subsection shall be referred to an Inventions and Contribution Board which shall be established by the Administrator within the Administration. Such Board shall accord to each interested party an opportunity for hearing, and shall transmit to the Administrator its findings of fact with respect to such proposal and its recommendations for action to be taken with respect thereto.
[(g)] deleted 27
(h) The Administrator is authorized to take all suitable and necessary steps to protect any invention or discovery to which he has title, and to require that contractors or persons who retain title to inventions or discoveries under this section protect the inventions or discoveries to which the Administration has or may acquire a license of use.
(i) The Administration shall be considered a defense agency of the United States for the purpose of chapter 17 of title 35 of the United States Code.
(j) As used in this section-
(1) the term "person" means any individual, partnership, corporation, association, institution, or other entity;
(2) the term "contract" means any actual or proposed contract, agreement, understanding, or other arrangement, and includes any assignment, substitution of parties, or subcontract executed or entered into thereunder; and
(3) the term "made", when used in relation to any invention, means the conception or first actual reduction to practice of such invention.
(k) Any object intended for launch, launched, or assembled in outer space shall be considered a vehicle for purpose of section 272 of title 35; United States Code [35 U.S.C. 272].28
(l) The use or manufacture of any patented invention incorporated in a space vehicle launched by the United States Government for a person other than the United States shall not be considered to be a use or manufacture by or for the United States within the meaning of section 1498(a) of title 28, United States Code (28 U.S.C. 1498(a)) unless the Administration gives an express authorization or consent for such use or manufacture.29



SEC. 308. INSURANCE AND INDEMNIFICATION31

(a) The Administration is authorized on such terms and to the extent it may deem appropriate to provide liability insurance for any user of a space vehicle to compensate all or a portion of claims by third parties for death, bodily injury, or loss of or damage to property resulting from activities carried on in connection with the launch, operations or recovery of the space vehicle. Appropriations available to the Administration may be used to acquire such insurance, but such appropriations shall be reimbursed to the maximum extent practicable by the users under reimbursement policies established pursuant to section 203(c) of this Act (42 USCS §2473(c)).
(b) Under such regulations in conformity with this section as the Administrator shall prescribe taking into account the availability, cost and terms of liability insurance, any agreement between the Administration and a user of a space vehicle may provide that the United States will indemnify the user against claims (including reasonable expenses of litigation or settlement) by third parties for death, bodily injury, or loss of or damage to property resulting from activities carried on in connection with the launch, operations or recovery of the space vehicle, but only to the extent that such claims are not compensated by liability insurance of the user: Provided, That such indemnification may be limited to claims resulting from other than the actual negligence or willful misconduct of the user.
(c) An agreement made under subsection (b) that provides indemnification must also provide for-
(1) notice to the United States of any claim or suit against the user for the death, bodily injury, or loss of or damage to the property; and
(2) control of or assistance in the defense by the United States, at its election, of that suit or claim.
(d) No payment may be made under subsection (b) unless the Administrator or his designee certifies that the amount is just and reasonable.
(e) Upon the approval by the Administrator, payments under subsection (b) may be made, at the Administrator's election, either from funds available for research and development not otherwise obligated or from funds appropriated for such payments.
(f) As used in this section-
(1) the term "space vehicle" means an object intended for launch, launched or assembled in outer space, including the Space Shuttle and other components of a space transportation system, together with related equipment, devices, components and parts;
(2) the term "user" includes anyone who enters into an agreement with the Administration for use of all or a portion of a space vehicle, who owns or provides property to be flown on a space vehicle, or who employs a person to be flown on a space vehicle; and
(3) the term "third party" means any person who may institute a claim against a user for death, bodily injury or loss of or damage to property.



(footnote)

5 Reorganization Plan No. 1 of 1973, 38 Federal Register 9579, April 18, 1973 (87 Stat. 1089), abolished the National Aeronautics and Space Council together with its functions, effective July 1, 1973.
6 The Federal Executive Salary Act of 1964, Public Law 88-426, August 14, 1964, section 305 (12), (78 Stat. 423), repealed the language in Sec. 202 (72 Stat. 429) fixing the compensation of the Administrator and Deputy Administrator at per annum rates of $22,500 and $21,500 respectively. In lieu thereof, the positions of Administrator and Deputy Administrator were placed in level II and level III, respectively, of the Federal Executive Salary Schedule. In addition, the Federal Executive Salary Act of 1964 placed ten other NASA positions in designated levels of the Federal Executive Salary Schedule (78 Stat. 416, as amended, 5 U.S.C. 5311-5317). See Appendix A, Sec. II. 1, at p. 26.
7 The "Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976," Public Law 94-413, September 17, 1976, section 15 (90 Stat. 1270) added this new subsection. Subsections b (1) and (2) were relettered by the "National Aeronautics and Space Administration Authorization Act, 1979<" Public Law 95-401, September 30, 1978, Section 6 (92 Stat. 860), to correct a mislettering which resulted from the enactment of Public Law 94-413.
8 The "Solar Heating and Cooling Demonstration Act of 1974," Public Law 93-409, September 3, 1974, section 4 (88 Stat. 1070), added this new subsection. See Appendix A, sec. VIII, 1, at p. 86.
9 Section 414(a)(2) of the "Civil Service Reform Act of 1978," Public Law 95-454, October 13, 1978 (92 Stat. 1177) terminated the authority of any agency (other than pursuant to 5 U.S.C. 3104 -see Appendix A, Sec. II, 3, at p. 26) to establish scientific or professional positions outside the General Schedule.
10 40 U.S.C. 34 provides that "no contract shall be made for the rent of any building . . . to be used for the purposes of the Government in the District of Columbia, until an appropriation therefor shall have been made in terms by Congress. . . ." The authority of NASA to lease buildings in the District of Columbia was added to section 203(c)(3) by Public Law 86-20, May 13, 1959 (73 Stat. 21), to remedy the peculiar situation at that time where the Agency had the money but no authority, and GSA had the authority but no money, to provide the Agency with its own office space.
11 Previous language authorizing pay not to exceed $100 per diem was amended to read as stated above by the "National Aeronautics and Space Administration Authorization Act, 1975," Public Law 93-316, June 22, 1974, Section 6 (88 Stat. 243).
12 The "National Aeronautics and Space Administration Authorization Act, 1974," Public Law 93-74, July 23, 1973, section 6 (87 Stat. 174) added paragraph 11. Previously, Title IV, section 402 (a)(34) of the Dual Compensation Act (Public Law 88-448, August 19, 1964, 78 Stat. 495) repealed the original section 203 (b)(11), 72 Stat. 431, which had authorized NASA "to employ retired commissioned officers of the armed forces of the United States and compensate them at the rate. . . ."
13 The "National Aeronautics and Space Administration Authorization Act, 1980," Public Law 96-48, August 8, 1979, section 6(a), (93 Stat. 348) substituted "$25,000" for "$5,000" each place it appeared.
14 NASA, like other Federal Agencies, can settle claims under the Federal Tort Claims Act as amended (28 U.S.C. 2671-2680).
15 The "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970," Public Law 91-646, January 2, 1971, section 220(a)(2), (84 Stat. 1903), repealed section 203(b)(14) which had dealt with relocation assistance and had been added by the "National Aeronautics and Space Administration Authorization Act, 1963," Public Law 87-585, August 14, 1962, section 6 (76 Stat. 384).
16 This section has been omitted since the Committee was abolished and its functions, together with the function of its chairman and other officers, were transferred to the President by Reorganization Plan No. 4 of 1965, effective July 27, 1965 (30 Federal Register 9253, July 28, 1965, 79 Stat. 1319).
17 President Eisenhower, upon the signing of the National Aeronautics and Space Act of 1958, singled out and made the following statement about section 205: "I regard this section merely as recognizing that international treaties may be made in this field, and as not precluding, in appropriate cases, less formal arrangements for cooperation. To construe the section otherwise would raise substantial constitutional questions."
18 The "National Aeronautics and Space Administration Authorization Act, 1972," Public law 92-68, August 6, 1971, section 7 (85 Stat. 177), repealed the original subsection (a) of section 206 and releterred the remaining subsections (b), (c) and (d) as (a), (b) and (c).
26 The "Federal Courts Improvement Act of 1982," Public Law 97-164, April 2, 1982, Title I, section 162(3), (96 Stat: 49) substituted "United States Courts of Appeals for the Federal Circuit" for "Court of Customs and Patent Appeals."
27 The "Small Business and University Patent Procedures Act," Public Law 95-517, December 12, 1980, section 7(b), (94 Stat. 3027) deleted subsection (g) which authorized the Administrator to promulgate regulations for the granting of licenses for NASA patents. Section 8(f) of the Act provided that such deletion was effective on July 1, 1981.
28 The "National Aeronautics and Space Administration Authorization Act, 1982," Public Law 97-96, December 21, 1981, section 7 (95 Stat. 1210) added this subsection.
29 Idem.
30 A law, "Medical Malpractice-Actions Against U.S.," Public Law 94-464, October 8, 1976, section 3 (90 Stat. 1988), added this new section 307 and redesignated old section 307 as section 308.
31 The "National Aeronautics and Space Administration Authorization Act, 1980," Public Law 96-48, August 8, 1979, section 6(b), (93 Stat. 348) added new section 308 and redesignated old section 308 as section 309. Section 6(c) of that act provided that the amendment would be effective October 1, 1979.


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