determine, shares of capital stock, without par value, which shall carry voting rights and be eligible for dividends. The shares of such stock initially offered shall be sold at a price not in excess of $100 for each share and in a manner to encourage the widest distribution to the American public. Subject to the provisions of subsections (b) and (d) of this section, shares of stock offered under this subsection may be issued to and held by any person. (b) “Authorized carrier” defined; shareholder eligibility; voting rights limitation of authorized carriers and other stockholders (1) For the purposes of this section the term "authorized carrier" shall mean a communications common carrier which is specifically authorized or which is a member of a class of carriers authorized by the Commission to own shares of stock in the corporation upon a finding that such ownership will be consistent with the public interest, convenience, and necessity. (2) Only those communications common carriers which are authorized carriers shall own shares of stock in the corporation at any time, and no other communications common carrier shall own shares either directly or indirectly through subsidiaries or affiliated companies, nominees, or any persons subject to its direction or control. At no time after the initial issue is completed shall the aggregate of the shares of voting stock of the corporation owned by authorized carriers directly or indirectly through subsidiaries or affiliated companies, nominees, or any persons subject to their direction or control exceed 50 per centum of such shares issued and outstanding. (3) At no time shall any stockholder who is not an authorized carrier, or any syndicate or affiliated group of such stockholders, own more than 10 per centum of the shares of voting stock of the corporation issued and outstanding. (c) Nonvoting security issues and certificates of indebtedness; rate base The corporation is authorized to issue, in addition to the stock authorized by subsection (a) of this section, nonvoting securities, bonds, debentures, and other certificates of indebtedness as it may determine. Such nonvoting securities, bonds, debentures, or other certificates of indebtedness of the corporation as a communications common carrier may own shall be eligible for inclusion in the rate base of the carrier to the extent allowed by the Commission. The voting stock of the corporation shall not be eligible for inclusion in the rate base of the carri er. (d) Alien share ownership limitation Not more than an aggregate of 20 per centum of the shares of stock of the corporation authorized by subsection (a) of this section which are held by holders other than authorized carriers may be held by persons of the classes described in paragraphs (1), (2), (3), (4), and (5) of section 310(a) of this title. (e) Inspection and copying rights The requirement of section 45(b) of the District of Columbia Business Corporation Act [D.C. Code, § 29-345(b)] as to the percentage of Upon application to the Commission by any authorized carrier and after notice and hearing, the Commission may compel any other authorized carrier which owns shares of stock in the corporation to transfer to the applicant, for a fair and reasonable consideration, a number of such shares as the Commission determines will advance the public interest and the purposes of this chapter. In its determination with respect to ownership of shares of stock in the corpora. tion, the Commission, whenever consistent with the public interest, shall promote the widest possible distribution of stock among the authorized carriers. (Pub. L. 87-624, title III, § 304, Aug. 31, 1962, 76 Stat. 424; Pub. L. 97-410, § 5, Jan. 3, 1983, 96 Stat. 2045.) AMENDMENTS 1983-Subsec. (b)(2). Pub. L. 97-410 struck out provision which related to purchases of reserved shares of stock by authorized carriers. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 702, 721 of this title. § 735. Powers of corporation (a) Authorized powers In order to achieve the objectives and to carry out the purposes of this chapter, the corporation is authorized to (1) plan, initiate, construct, own, manage, and operate itself or in conjunction with foreign governments or business entities a commercial communications satellite system; (2) furnish, for hire, channels of communication to United States communications common carriers and to other authorized entities, foreign and domestic; and (3) own and operate satellite terminal stations when licensed by the Commission under section 721(c)(7) of this title. (b) Specific corporate activities Included in the activities authorized to the corporation for accomplishment of the purposes indicated in subsection (a) of this section, are, among others not specifically named (1) to conduct or contract for research and development related to its mission; (2) to acquire the physical facilities, equipment and devices necessary to its operations, including communications satellites and associated equipment and facilities, whether by construction, purchase, or gift; (3) to purchase satellite launching and related services from the United States Government; (4) to contract with authorized users, including the United States Government, for the services of the communications satellite system; and (5) to develop plans for the technical specifications of all elements of the communications satellite system. (c) Usual powers of stock corporation To carry out the foregoing purposes, the corporation shall have the usual powers conferred upon a stock corporation by the District of Columbia Business Corporation Act [D.C. Code, § 29-301 et seq.). (Pub. L. 87-624, title III, § 305, Aug. 31, 1962, 76 Stat. 425.) REFERENCES IN TEXT The District of Columbia Business Corporation Act, referred to in subsec. (c), 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. SUBCHAPTER IV-MISCELLANEOUS PROVISIONS 8741. Common carrier status of corporation; laws applicable to corporation; common carrier activity; conflict of laws The corporation shall be deemed to be a common carrier within the meaning of section 3(h) of the Communications Act of 1934, as amended [47 U.S.C. 153(h)], and as such shall be fully subject to the provisions of title II [47 U.S.C. 201 et seq.] and title III [47 U.S.C. 301 et seq.] of that Act. The provision of satellite terminal station facilities by one communication common carrier to one or more other communications common carriers shall be deemed to be a common carrier activity fully subject to the Communications Act [47 U.S.C. 151 et seq.). Whenever the application of the provisions of this chapter shall be inconsistent with the application of the provisions of the Communications Act, the provisions of this chapter shall govern. (Pub. L. 87-624, title IV, § 401, Aug. 31, 1962, 76 Stat. 426.) REFERENCES IN TEXT The Communications Act of 1934, referred to in text, is act June 19, 1934, ch. 652, 48 Stat. 1964, as amended, which is classified principally to chapter 5 (§ 151 et seq.) of this title. Titles II and III of the Communications Act of 1934 are classified generally to subchapters II (§ 201 et seq.) and III (§ 301 et seq.), respectively, of chapter 5 of this title. For complete classification of this Act to the Code, see section 609 of this title and Tables. $742. Foreign business negotiations of corporation; notice to Department of State; advice and assistance from Department of State Whenever the corporation shall enter into business negotiations with respect to facilities, operations, and services authorized by this chapter with any international or foreign entity, it shall notify the Department of State of the negotiations, and the Department of State shall advise the corporation of relevant foreign policy considerations. Throughout such negotiations the corporation shall keep the Department of State informed with respect to such considerations. The corporation may request the Department of State to assist in the negotiations, and that Department shall render such assistance as may be appropriate. (Pub. L. 87-624, title IV, § 402, Aug. 31, 1962, 76 Stat. 426.) § 743. Sanctions (a) Petition of Attorney General for equitable relief; venue If the corporation created pursuant to this chapter shall engage in or adhere to any action, practices, or policies inconsistent with the policy and purposes declared in section 701 of this title, or if the corporation or any other person shall violate any provision of this chapter, or shall obstruct or interfere with any activities authorized by this chapter, or shall refuse, fail, or neglect to discharge his duties and responsibilities under this chapter, or shall threaten any such violation, obstruction, interference, refusal, failure, or neglect, the district court of the United States for any district in which such corporation or other person resides or may be found shall have jurisdiction, except as otherwise prohibited by law, upon petition of the Attorney General of the United States, to grant such equitable relief as may be necessary or appropriate to prevent or terminate such conduct or threat. (b) Punishment, liability or sanction under other provisions Nothing contained in this section shall be construed as relieving any person of any punishment, liability, or sanction which may be imposed otherwise than under this chapter. (c) Duty of compliance with provisions of chapter and rules and regulations It shall be the duty of the corporation and all communications common carriers to comply, insofar as applicable, with all provisions of this chapter and all rules and regulations promulgated thereunder. (Pub. L. 87-624, title IV, § 403, Aug. 31, 1962, 76 Stat. 426.) 8 744. Reports to the Congress (a) President The President shall transmit to the Congress in January of each year a report which shall include a comprehensive description of the activities and accomplishments during the preceding calendar year under the national program referred to in section 721(a)(1) of this title, together with an evaluation of such activities and accomplishments in terms of the attainment of the objectives of this chapter and any recommendations for additional legislative or other action which the President may consider necessary or desirable for the attainment of such objectives. (b) Corporation The corporation shall transmit to the President and the Congress, annually and at such other times as it deems desirable, a comprehensive and detailed report of its operations, activities, and accomplishments under this chapter. (c) Commission The Commission shall transmit to the Congress, annually and at such other times as it deems desirable, (i) a report of its activities and actions on anticompetitive practices as they apply to the communications satellite programs; (ii) an evaluation of such activities and actions taken by it within the scope of its authority with a view to recommending such additional legislation which the Commission may consider necessary in the public interest; and (iii) an evaluation of the capital structure of the corporation so as to assure the Congress that such structure is consistent with the most efficient and economical operation of the corporation. (Pub. L. 87-624, title IV, § 404, Aug. 31, 1962, 76 Stat. 426.) SUBCHAPTER V-INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS § 751. Congressional declaration of policy and pur pose (a) Development and operation of global system to serve needs of United States and foreign countries The Congress hereby declares that it is the policy of the United States to provide for the participation of the United States in the International Maritime Satellite Organization (hereinafter in this subchapter referred to as "INMARSAT") in order to develop and operate a global maritime satellite telecommunications system. Such system shall have facilities and services which will serve maritime commercial and safety needs of the United States and foreign countries. (b) Corporate participation; private entity status; non-Government agency It is the purpose of this subchapter to provide that the participation of the United States in INMARSAT shall be through the Communications Satellite Corporation, which constitutes a private entity operating for profit, and which is not an agency or establishment of the Federal Government. (Pub. L. 87-624, title V, § 502, as added Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2392.) SHORT TITLE Pub. L. 87-624, title V, § 501, as added by Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2392, provided that: "This title [enacting this subchapter] may be cited as the 'International Maritime Satellite Telecommunications Act'." § 752. Corporation's status as designated operating entity (a) Statement of purpose; interim operating arrangement authorization for participation in other systems; signature authorization (1) The Communications Satellite Corporation is hereby designated as the sole operating entity of the United States for participation in INMARSAT, for the purpose of providing international maritime satellite telecommunications services. (2) The corporation also shall have authority to participate in any other maritime satellite telecommunications system on an interim basis to serve the maritime commercial and safety needs of the United States through an interim operating arrangement in accordance with subsection (b) of this section. (3) The corporation may participate in and is hereby authorized to sign the operating agreement or other pertinent instruments of INMARSAT as the sole designated operating entity of the United States. (b) Interim operating arrangements for participation in other systems; terms and conditions; participation provisions also applicable to interim arrangements (1) The corporation may participate in any maritime satellite telecommunications system under subsection (a)(2) of this section only if (A) the corporation signs the operating agreement of INMARSAT before beginning such participation; (B) such participation is in the nature of an interim operating arrangement remaining in effect only until INMARSAT begins its operations; and (C)(i) in the case of participation which may be undertaken only pursuant to a treaty or executive agreement, such treaty or executive agreement is in effect; or (ii) in any case in which participation does not require any treaty or executive agreement, the President does not disapprove such participation during the period of 60 calendar days after the corporation notifies the President of such proposed participation. (2) If the corporation participates in an interim operating arrangement with a maritime satellite telecommunications system under this subsection, the provisions of this subchapter relating to participation of the corporation in INMARSAT also shall apply to such interim participation. (3) Any disapproval by the President under paragraph (1)(C)(ii) shall be published in the Federal Register as soon as practicable after the date of such disapproval. (c) Powers of corporation The corporation (1) may own and operate satellite earth terminal stations in the United States; (2) shall interconnect such stations, and the maritime satellite telecommunications provided by such stations, with the facilities and services of United States domestic common carriers and international common carriers, other than any common carrier or other entity in which the corporation has any ownership interest, as authorized by the Commission; (3) shall interconnect such stations and the maritime satellite telecommunications provided by such stations, with the facilities and services of private communications systems, unless the Commission finds that such interconnection will not serve the public interest; and (4) may establish, own, and operate the United States share of the jointly owned international space segment and associated ancillary facilities. (d) Financial obligation The corporation shall be responsible for fulfilling any financial obligation placed upon the corporation as a signatory to the operating agreement or other pertinent instruments, and any other financial obligation which may be placed upon the corporation as the result of a convention or other instrument establishing INMARSAT. The corporation shall be the sole United States representative in the managing body of INMARSAT. (e) Sole ownership or/and operation of satellite earth terminal station for training of personnel pursuant to authorization of responsible executive department or Commission (1) Any person, including the Federal Government or any agency thereof, may be authorized, in accordance with paragraph (2) or paragraph (3), to be the sole owner or operator, or both, of any satellite earth terminal station if such station is used for the exclusive purposes of training personnel in the use of equipment associated with the operation and maintenance of such station, or in carrying out experimentation relating to maritime satellite telecommunications services. (2) If the person referred to in paragraph (1) is the Federal Government or any agency thereof, such satellite earth terminal station shall have been authorized to operate by the executive department charged with such responsibility. (3) In any other case, such satellite earth terminal station shall have been authorized by the Commission. (f) Additional noncorporation ownership of satellite earth terminal stations for enhancement of maritime satellite services in the public interest The Commission may authorize ownership of satellite earth terminal stations by persons other than the corporation at any time the Commission determines that such additional ownership will enhance the provision 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 The Commission shall determine the operational arrangements under which the corporation shall interconnect its satellite earth terminal station facilities and services with United States domestic common carriers and international common carriers, other than any common carrier, system, or other entity in which the corporation has any ownership interest, and private communications systems when authorized pursuant to subsection (c)(3) of this section for the purpose of extending maritime satellite telecommunications services within the United States and in other areas. The initial determination of operational arrangements shall be made by the Commission no later than 6 months after November 1, 1978, and the Commission shall thereupon transmit to the Congress a report relating to such determination. (h) Articles of incorporation provision for business transactions during national emergency with less than requisite number of directors Notwithstanding any provision of State law, the articles of incorporation of the corporation shall provide for the continued ability of the board of directors of the corporation to transact business under such circumstances of national emergency as the President or his delegate may determine would not permit a prompt meeting of the number of directors otherwise required to transact business. (Pub. L. 87-624, title V, § 503, as added Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2392.) SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 753 of this title. § 753. 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 The Secretary of Commerce shall (1) coordinate the activities of Federal agencies with responsibilities in the field of telecommunications (other than the Commission), so as to ensure that there is full and effective compliance with the provisions of this subchapter; (2) take all necessary steps to ensure the availability and appropriate utilization of the maritime satellite telecommunications services provided by INMARSAT for general governmental purposes, except in any case in which a separate telecommunications system is required to meet unique governmental needs or is otherwise required in the national interest; (3) exercise his authority in a manner which seeks to obtain coordinated and efficient use of the electromagnetic spectrum and orbital space, and to ensure the technical compatibility of the space segment with existing communications facilites in the United States and in foreign countries; and (4) take all necessary steps to determine the interests and needs of the ultimate users of the maritime satellite telecommunications system and to communicate the views of the Federal Government on utilization and user needs to INMARSAT. (b) Executive functions; supervision and instructions for foreign relationships and activities The President shall exercise such supervision over, and issue such instructions to, the corporation in connection with its relationships and activities with foreign governments, international entities, and INMARSAT as may be necessary to ensure that such relationships and ac tivities are consistent with the national interest and foreign policy of the United States. (c) Commission functions; institution of proceedings; recommendations for issuance of executive instructions; public space segment channel, construction, operation and other authorizations; review; rules The Commission shall (1) institute such proceedings as may be necessary to carry out the provisions of section 752 of this title; (2) make recommendations to the President for the purpose of assisting him in his issuance of instructions to the corporation; (3) grant such authorizations as may be necessary under title II and title III of the Communications Act of 1934 [47 U.S.C. 201 et seq., 301 et seq.] to enable the corporation (A) to provide to the public, in accordance with section 752(c)(2) of this title, space segment channels of communication obtained from INMARSAT; and (B) to construct and operate such satellite earth terminal stations in the United States as may be necessary to provide sufficient access to the space segment; (4) grant such other authorizations as may be necessary under title II and title III of the Communications Act of 1934 to carry out to the provisions of this title; (5) establish procedures to provide for the continuing review of the telecommunications activities of the corporation as the United States signatory to the operating agreement or other pertinent instruments; and issue (6) prescribe such rules as may be necessary to carry out the provisions of this subchapter. (d) Commission regulatory instructions; conflicting and prevailing instructions of President The Commission is authorized to instructions to the corporation with respect to regulatory matters within the jurisdiction of the Commission. In the event an instruction of the Commission conflicts with an instruction of the President pursuant to subsection (b) of this section, the instructions issued by the President shall prevail. (Pub. L. 87-624, title V, § 504, as added Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2394.) REFERENCES IN TEXT The Communications Act of 1934, referred to in subsec. (c)(3), (4), is act June 19, 1934, ch. 652, 48 Stat. 1964, as amended, which is classified principally to chapter 5 (§ 151 et seq.) of this title. Titles II and III of the Communications Act of 1934 are classified generally to subchapters II (§ 201 et seq.) and III (§ 301 et seq.), respectively, of chapter 5 of this title. For complete classification of this Act to the Code, see section 609 of this title and Tables. § 754. Study of structure and activities of corporation (a) Statement of objectives The Commission shall conduct a study of the corporate structure and operating activities of the corporation, with a view toward determining whether any changes are required to ensure that the corporation is able to effectively fulfill its obligations and carry out its functions under this chapter and the Communications Act of 1934 [47 U.S.C. 151 et seq.). (b) Report to Congress; findings, conclusions and recommendations The Commission shall transmit a report to the Congress not later than 18 months after November 1, 1978, relating to the study of the corporation conducted under subsection (a) of this section. Such report shall contain a detailed statement of the findings and conclusions of such study, any action taken by the Commission related to such findings and conclusions, and any recommendations of the Commission for such legislative or other action as the Commission considers necessary or appropriate. (Pub. L. 87-624, title V, § 505, as added Pub. L. 95-564, Nov. 1, 1978, 92 Stat. 2395.) REFERENCES IN TEXT The Communications Act of 1934, referred to in subsec. (a), 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. § 755. Study of public maritime coast station services (a) Statement of objectives The Commission shall conduct a study of public maritime coast station services, with particular emphasis on high seas services, with a view toward determining whether the rules and regulations of the Commission and the assignment of licenses and radio frequencies in effect on November 1, 1978, should be subject to any alteration in order to establish a systematic approach for the provision of modern and effective maritime telecommunications systems. (b) Report to Congress; findings, conclusions and recommendations The Commission shall transmit a report to the Congress not later than 12 months after November 1, 1978, relating to the study of public maritime coast station services conducted under subsection (a) of this section. Such report shall contain a detailed statement of the findings and conclusions of such study, any action taken by the Commission related to such findings and conclusions, and any recommendations of the Commission for such legislative or other action as the Commission considers necessary or appropriate. (Pub. L. 87-624, title V, § 506, as added Pub. L. § 756. Study of radio navigation systems The President, in conjunction with Government agencies which will or may be affected by the development of a Government-wide radio navigation plan, shall conduct a study of all Government radio navigation systems to determine the most effective manner of reducing the proliferation and overlap of such systems. The objective of such study shall be the development of such a plan. |