SUBCHAPTER V-INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS 751. Congressional declaration of policy and purpose. 752. 753. 754. (a) Development and operation of global Corporation's status as designated operating entity. (a) Statement of purpose; interim operating arrangement authorization for participation in other systems; signature authorization. (b) Interim operating arrangements for participation in other systems; terms and conditions; participation provisions also applicable to interim arrangements. (c) Powers of corporation. (d) Financial obligation. (e) Sole ownership or/and operation of satellite earth terminal station for training of personnel pursuant to authorization of responsible executive department or Commission. (f) Additional noncorporation ownership of satellite earth terminal stations for enhancement of maritime satellite services in the public interest. (g) Operational arrangements for interconnection of satellite earth terminal stations and facilities with common carriers and private communications systems for extension of services; determinations by Commission; report to Congress. (h) Articles of incorporation provision for business transactions during national emergency with less than requisite number of directors. Implementation of policy. (a) Administrative functions; agency coordination; use for general governmental purposes; separate systems; spectrum and orbital space use; compatibility with domestic and foreign facilities; interests and needs of ultimate users; Federal views on utilization and user needs. (b) Executive functions; supervision and instructions for foreign relationships and activities. (c) Commission functions; institution of proceedings; recommendations for issuance of executive instructions; public space segment channel, construction, operation and other authorizations; review; rules. (d) Commission regulatory instructions; conflicting and prevailing instructions of President. Study of structure and activities of corporation. (a) Statement of objectives. 756. 757. (b) Report to Congress; findings, conclusions and recommendations. Study of public maritime coast station services. (a) Statement of objectives. (b) Report to Congress; findings, conclusions and recommendations. Study of radio navigation systems. (a) Statement of objectives. (b) Report to Congress; findings, conclusions and recommendations. Definitions. CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 26 sections 167, 883. SUBCHAPTER I-GENERAL PROVISIONS § 701. Congressional declaration of policy and purpose (a) Policy The Congress declares that it is the policy of the United States to establish, in conjunction and in cooperation with other countries, as expeditiously as practicable a commercial communications satellite system, as part of an improved global communications network, which will be responsive to public needs and national objectives, which will serve the communication needs of the United States and other countries, and which will contribute to world peace and understanding. (b) Availability of telecommunication services The new and expanded telecommunication services are to be made available as promptly as possible and are to be extended to provide global coverage at the earliest practicable date. In effectuating this program, care and attention will be directed toward providing such services to economically less developed countries and areas as well as those more highly developed, toward efficient and economical use of the electromagnetic frequency spectrum, and toward the reflection of the benefits of this new technology in both quality of services and charges for such services. (c) Private enterprise; access; competition In order to facilitate this development and to provide for the widest possible participation by private enterprise, United States participation in the global system shall be in the form of a private corporation, subject to appropriate governmental regulation. It is the intent of Congress that all authorized users shall have nondiscriminatory access to the system; that maximum competition be maintained in the provision of equipment and services utilized by the system; that the corporation created under this chapter be so organized and operated as to maintain and strengthen competition in the provision of communications services to the public; and that the activities of the corporation created under this chapter and of the persons or companies participating in the ownership of the corporation shall be consistent with the Federal antitrust laws. (d) Domestic use; additional systems It is not the intent of Congress by this chapter to preclude the use of the communications satellite system for domestic communication services where consistent with the provisions of this chapter nor to preclude the creation of additional communications satellite systems, if required to meet unique governmental needs or if otherwise required in the national interest. (Pub. L. 87-624, title I, § 102, Aug. 31, 1962, 76 Stat. 419.) REFERENCES IN TEXT The Federal antitrust laws, referred to in subsec. (c), are classified generally to chapter 1 (§ 1 et seq.) of Title 15, Commerce and Trade. SHORT TITLE Section 101 of Pub. L. 87-624 provided that: "This Act [enacting this chapter] may be cited as the 'Communications Satellite Act of 1962'." For short title of title V of Pub. L. 87-624, as added by Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2392, which enacted subchapter V of this chapter, see note set out under section 751 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 743 of this title. § 702. Definitions As used in this chapter, and unless the context otherwise requires (1) the term "communications satellite system" refers to a system of communications satellites in space whose purpose is to relay telecommunication information between satellite terminal stations, together with such associated equipment and facilities for tracking, guidance, control, and command functions as are not part of the generalized launching, tracking, control, and command facilities for all space purposes; (2) the term "satellite terminal station" refers to a complex of communication equipment located on the earth's surface, operationally connected with one or more terrestrial communication systems, and capable of transmitting telecommunications to or receiving telecommunications from a communications satellite system. (3) the term "communications satellite" means an earth satellite which is intentionally used to relay telecommunication information; (4) the term "associated equipment and facilities" refers to facilities other than satellite terminal stations and communications satellites, to be constructed and operated for the primary purpose of a communications satellite system, whether for administration and management, for research and development, or for direct support of space operations; (5) the term "research and development" refers to the conception, design, and first creation of experimental or prototype operational devices for the operation of a communications satellite system, including the assembly of separate components into a working whole, as distinguished from the term "production,' which relates to the construction of such devices to fixed specifications compatible with repetitive duplication for operational applications; and (6) the term "telecommunication" means any transmission, emission or reception of signs, signals, writings, images, and sounds or intelligence of any nature by wire, radio, optical, or other electromagnetic systems. (7) the term "communications common carrier" has the same meaning as the term "common carrier" has when used in the Communications Act of 1934, as amended [47 U.S.C. 151 et seq.], and in addition includes, but only for purposes of sections 733 and 734 of this title, any individual, partnership, association, joint-stock company, trust, corporation, or other entity which owns or controls, directly or indirectly, or is under direct or indirect common control with, any such carrier; and the term "authorized carrier", except as otherwise provided for purposes of section 734 of this title by section 734(b)(1) of this title, means a communications common carrier which has been authorized by the Federal Communications Commission under the Communications Act of 1934, as amended, to provide services by means of communications satellites; (8) the term "corporation" means the corporation authorized by subchapter III of this chapter. (9) the term "Administration" means the National Aeronautics and Space Administration; and (10) the term "Commission" means the Federal Communications Commission. (Pub. L. 87-624, title I, § 103, Aug. 31, 1962, 76 Stat. 419.) REFERENCES IN TEXT The Communications Act of 1934, as amended, referred to in par. (7), is act June 19, 1934, ch. 652, 48 Stat. 1064, as amended, which is classified principally to chapter 5 (§ 151 et seq.) of this title. For complete classification of this Act to the Code, see section 609 of this title and Tables. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 section 48. SUBCHAPTER II-FEDERAL COORDINATION, PLANNING, AND REGULATION § 721. Implementation of policy In order to achieve the objectives and to carry out the purposes of this chapter(a) Executive functions; execution of national program; review; agency coordination; supervision of foreign relationships; foreign participation; use for general governmental purposes; separate systems; compatibility with domestic and foreign facilities the President shall (1) aid in the planning and development and foster the execution of a national program for the establishment and operation, as expeditiously as possible, of a commercial communications satellite system; (2) provide for continuous review of all phases of the development and operation of such a system, including the activities of a communications satellite corporation authorized under subchapter III of this chapter; (3) coordinate the activities of governmental agencies with responsibilities in the field of telecommunication, so as to insure that there is full and effective compliance at all times with the policies set forth in this chapter; (4) exercise such supervision over relationships of the corporation with foreign governments or entities or with international bodies as may be appropriate to assure that such relationships shall be consistent with the national interest and foreign policy of the United States; (5) insure that timely arrangements are made under which there can be foreign participation in the establishment and use of a communications satellite system; (6) take all necessary steps to insure the availability and appropriate utilization of the communications satellite system for general governmental purposes except where a separate communications satellite system is required to meet unique governmental needs, or is otherwise required in the national interest; and (7) so exercise his authority as to help attain coordinated and efficient use of the electromagnetic spectrum and the technical compatibility of the system with existing communications facilities both in the United States and abroad. (b) Administration functions; technical advice to Commission; cooperation in research and development and technical consultation with corporation; assistance and launching, associated services and other services to corporation on reimbursable basis the National Aeronautics and Space Administration shall (1) advise the Commission on technical characteristics of the communications satellite system; (2) cooperate with the corporation in research and development to the extent deemed appropriate by the Administration in the public interest; (3) assist the corporation in the conduct of its research and development program by furnishing to the corporation, when requested, on a reimbursable basis, such satellite launching and associated services as the Administration deems necessary for the most expeditious and economical development of the communications satellite system; (4) consult with the corporation with respect to the technical characteristics of the communications satellite system; (5) furnish to the corporation, on request and on a reimbursable basis, satellite launching and associated services required for the establishment, operation, and maintenance of the communications satellite system approved by the Commission; and (6) to the extent feasible, furnish other services, on a reimbursable basis, to the corporation in connection with the establishment and operation of the system. (c) Commission functions; competitive bidding; consultation with Small Business Administration; discrimination; just and reasonable charges, classifications, practices, regulations and other terms and conditions; allocation of facilities; establishment of communication to particular foreign point; technical compatibility of system and stations; accounting; rates; technical approval; construction and operation authorizations; financing of corporation; additions; rules and regulations the Federal Communications Commission, in its administration of the provisions of the Communications Act of 1934, as amended [47 U.S.C. 151 et seq.), and as supplemented by this chapter, shall (1) insure effective competition, including the use of competitive bidding where appropriate, in the procurement by the corporation and communications common carriers of apparatus, equipment, and services required for the establishment and operation of the communications satellite system and satellite terminal stations; and the Commission shall consult with the Small Business Administration and solicit its recommendations on measures and procedures which will insure that small business concerns are given an equitable opportunity to share in the procurement program of the corporation for property and services, including but not limited to research, development, construction, maintenance, and repair. (2) insure that all present and future authorized carriers shall have nondiscriminatory use of, and equitable access to, the communications satellite system and satellite terminal stations under just and reasonable charges, classifications, practices, regulations, and other terms and conditions and regulate the manner in which available facilities of the system and stations are allocated among such users thereof; (3) in any case where the Secretary of State, after obtaining the advice of the Administration as to technical feasibility, has advised that commercial communication to a particular foreign point by means of the communications satellite system and satellite terminal stations should be established in the national interest, institute forthwith appropriate proceedings under section 214(d) of the Communications Act of 1934, as amended [47 U.S.C. 214(d)], to require the establishment of such communication by the corporation and the appropriate common carrier or carriers; (4) insure that facilities of the communications satellite system and satellite terminal stations are technically compatible and interconnected operationally with each other and with existing communications facilities; (5) prescribe such accounting regulations and systems and engage in such ratemaking procedures as will insure that any economies made possible by a communications satellite system are appropriately reflected in rates for public communication services; (6) approve technical characteristics of the operational communications satellite system to be employed by the corporation and of the satellite terminal stations; and (7) grant appropriate authorizations for the construction and operation of each satellite terminal station, either to the corporation or to one or more authorized carriers or to the corporation and one or more such carriers jointly, as will best serve the public interest, convenience, and necessity. In determining the public interest, convenience, and necessity the Commission shall authorize the construction and operation of such stations by communications common carriers or the corporation, without preference to either; (8) authorize the corporation to issue any shares of capital stock, except the initial issue of capital stock referred to in section 734(a) of this title, or to borrow any moneys, or to assume any obligation in respect of the securities of any other person, upon a finding that such issuance, borrowing, or assumption is compatible with the public interest, convenience, and necessity and is necessary or appropriate for or consistent with carrying out the purposes and objectives of this chapter by the corporation; (9) insure that no substantial additions are made by the corporation or carriers with respect to facilities of the system or satellite terminal stations unless such additions are required by the public interest, convenience, and necessity; (10) require, in accordance with the procedural requirements of section 214 of the Communications Act of 1934, as amended [47 U.S.C. 214], that additions be made by the corporation or carriers with respect to facilities of the system or satellite terminal stations where such additions would serve the public interest, convenience, and necessity; and (11) make rules and regulations to carry out the provisions of this chapter. (Pub. L. 87-624, title II, § 201, Aug. 31, 1962, 76 Stat. 421.) REFERENCES IN TEXT The Communications Act of 1934, as amended, referred to in subsec. (c), is act June 19, 1934, ch. 652, 48 Stat. 1064, as amended, which is classified principally to chapter 5 (§ 151 et seq.) of this title. For complete classification of this Act to the Code, see section 609 of this title and Tables. EXECUTIVE ORDER NO. 11191 Ex. Ord. No. 11191, Jan. 4, 1965, 30 F.R. 29, as amended by Ex. Ord. No. 11556, Sept. 4, 1970, 35 F.R. 14193, which related to the administration of the Communications Satellite Act of 1962 [this chapter], was revoked by Ex. Ord. No. 12046, Mar. 27, 1978, 43 F.R. 13349, set out as a note under section 305 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 735, 744 of this title. SUBCHAPTER III-COMMUNICATIONS SUBCHAPTER REFERRED TO IN OTHER SECTIONS § 731. Creation of corporation; non-Government (Pub. L. 87-624, title III, § 301, Aug. 31, 1962, 76 REFERENCES IN TEXT The District of Columbia Business Corporation Act, referred to in text, is act June 8, 1954, ch. 269, 68 Stat. 179, as amended, which appears in chapter 3 (§ 29-301 et seq.) of Title 29, Corporations, of the District of Columbia Code. § 732. Process of organization The President of the United States shall appoint incorporators, by and with the advice and consent of the Senate, who shall serve as the initial board of directors until the first annual meeting of stockholders or until their successors are elected and qualified. Such incorporators shall arrange for an initial stock offering and take whatever other actions are necessary to establish the corporation, including the filing of articles of incorporation, as approved by the President. (Pub. L. 87-624, title III, § 302, Aug. 31, 1962, 76 Stat. 423.) 8733. Directors and officers (a) Board of directors; qualifications; chairman; appointment by President; term; election by stock. holders; percentage of stock ownership determining right to elect; cumulative voting; amendment of articles of incorporation; bylaws for national emergencies The corporation shall have a board of directors consisting of fifteen individuals who are citizens of the United States, of whom one shall be elected annually by the board to serve as chairman. Three members of the board shall be appointed by the President of the United States, by and with the advice and consent of the Senate, effective the date on which the other members are elected, and for terms of three years or until their successors have been appointed and qualified, and any member so appointed to fill a vacancy shall be appointed only for the unexpired term of the director whom he succeeds. The remaining twelve members of the board shall be elected annually by the stockholders. Six of such members shall be elected by those stockholders who are not communications common carriers, and the remaining six such members shall be elected by the stockholders who are communications common carriers, except that if the number of shares of the voting capital stock of the corporation issued and outstanding and owned either direct No stockholder who is a communications common carrier and no trustee for such a stockholder shall vote, either directly or indirectly, through the votes of subsidiaries or affiliated companies, nominees, or any persons subject to his direction or control, for more than three candidates for membership on the board, except that in the event the number of shares of the voting capital stock of the corporation issued and outstanding and owned either directly or indirectly by communications common carriers as of the record date for the annual meeting is less than 8 per centum of the total number of shares of the voting capital stock of the corporation issued and outstanding, any stockholder who is a communications common carrier shall be entitled to vote at such meeting for candidates for membership on the board in the same manner as all other stockholders. Subject to the foregoing limitations, the articles of incorporation of the corporation shall provide for cumulative voting under section 27(d) of the District of Columbia Business Corporation Act [D.C. Code, § 29-327(d)]. The articles of incorporation of the corporation may be amended, altered, changed, or repealed by a vote of not less than 66% per centum of the outstanding shares of the voting capital stock of the corporation owned by stockholders who are communications common carriers and by stockholders who are not communications common carriers, voting together, if such vote complies with all other requirements of this chapter and of the articles of incorporation of the corporation with respect to the amendment, alteration, change, or repeal of such articles. The corporation may adopt such bylaws as shall, notwithstanding the provisions of section 36 of the District of Columbia Business Corporation Act [D.C. Code, § 29-336], provide for the continued ability of the board to transact business under such circumstances of national emergency as the President of the United States, or the officer designated by him, may determine, after February 18, 1969, would not permit a prompt meeting of a majority of the board to transact business. (b) President of corporation; designation and ap pointment of other officers; compensation; United States citizenship of officers; dual salary prohibition The corporation shall have a president, and such other officers as may be named and appointed by the board, at rates of compensation fixed by the board, and serving at the pleasure of the board. No individual other than a citizen of the United States may be an officer of the corporation. No officer of the corporation shall receive any salary from any source other than the corporation during the period of his employment by the corporation. (Pub. L. 87-624, title III, § 303, Aug. 31, 1962, 76 Stat. 423; Pub. L. 91-3, § 1, Mar. 12, 1969, 83 Stat. 4.) AMENDMENTS 1969-Subsec. (a). Pub. L. 91-3 specified the number of directors on the board at fifteen, substituted provisions that the three members appointed by the President serve for a term of three years each for provisions that such appointees serve terms of one, two, and three years, respectively, set forth the formula authorizing the election of directors by carriers and noncarriers to be based upon their respective percentage of ownership of the outstanding capital stock, provided a method for amending, altering, changing, or repealing the articles of incorporation, and authorized the board to adopt bylaws permitting the corporation to transact business in future national emergencies. MEETING OF BOARD SUBSEQUENT TO MARCH 12, 1969, FOR ELECTION OF DIRECTORS; TERM OF OFFICE Section 2 of Pub. L. 91-3 authorized a meeting of the corporation's stockholders as soon as practicable after Mar. 12, 1969, to elect 12 members of the board of directors, pursuant to subsec. (a) of this section, to serve until the next annual meeting of stockholders or until their successors have been elected and qualified. STATUS AND AUTHORITY OF BOARD MEMBERS ELECTED PRIOR TO MARCH 12, 1969 Section 3 of Pub. L. 91-3 provided that: "The status and authority of the members of the board of directors of the Communications Satellite Corporation who were elected to the board before the date of the enactment of this Act [March 12, 1969] and who are serving as members of the board on such date shall not be in any way impaired or affected until their successors have been elected and qualified in accordance with section 2 of this Act [set out as a note above]." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 702 of this title. § 734. Financing of corporation (a) Capital stock; amount of issue; no par value shares; voting rights; dividends; price and public distribution of initial offering; shareholder eligibility The corporation is authorized to issue and have outstanding, in such amounts as it shall |