
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-391 Section 324(a)(2)]
[Document affected by Public Law 106-391 Section 324(b)]
[CITE: 42USC2458c]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                   CHAPTER 26--NATIONAL SPACE PROGRAM
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 2458c. Experimental aerospace vehicle


(a) In general

    The Administrator may provide liability insurance for, or 
indemnification to, the developer of an experimental aerospace vehicle 
developed or used in execution of an agreement between the 
Administration and the developer.

(b) Terms and conditions

                           (1) In general

        Except as otherwise provided in this section, the insurance and 
    indemnification provided by the Administration under subsection (a) 
    of this section to a developer shall be provided on the same terms 
    and conditions as insurance and indemnification is provided by the 
    Administration under section 2458b of this title to the user of a 
    space vehicle.

                            (2) Insurance

        (A) In general

            A developer shall obtain liability insurance or demonstrate 
        financial responsibility in amounts to compensate for the 
        maximum probable loss from claims by--
                (i) a third party for death, bodily injury, or property 
            damage, or loss resulting from an activity carried out in 
            connection with the development or use of an experimental 
            aerospace vehicle; and
                (ii) the United States Government for damage or loss to 
            Government property resulting from such an activity.

        (B) Maximum required

            The Administrator shall determine the amount of insurance 
        required, but, except as provided in subparagraph (C), that 
        amount shall not be greater than the amount required under 
        section 70112(a)(3) of title 49 for a launch. The Administrator 
        shall publish notice of the Administrator's determination and 
        the applicable amount or amounts in the Federal Register within 
        10 days after making the determination.

        (C) Increase in dollar amounts

            The Administrator may increase the dollar amounts set forth 
        in section 70112(a)(3)(A) of title 49 for the purpose of 
        applying that section under this section to a developer after 
        consultation with the Comptroller General and such experts and 
        consultants as may be appropriate, and after publishing notice 
        of the increase in the Federal Register not less than 180 days 
        before the increase goes into effect. The Administrator shall 
        make available for public inspection, not later than the date of 
        publication of such notice, a complete record of any 
        correspondence received by the Administration, and a transcript 
        of any meetings in which the Administration participated, 
        regarding the proposed increase.

        (D) Safety review required before Administrator provides 
                insurance

            The Administrator may not provide liability insurance or 
        indemnification under subsection (a) of this section unless the 
        developer establishes to the satisfaction of the Administrator 
        that appropriate safety procedures and practices are being 
        followed in the development of the experimental aerospace 
        vehicle.

             (3) No indemnification without cross-waiver

        Notwithstanding subsection (a) of this section, the 
    Administrator may not indemnify a developer of an experimental 
    aerospace vehicle under this section unless there is an agreement 
    between the Administration and the developer described in subsection 
    (c) of this section.

                (4) Application of certain procedures

        If the Administrator requests additional appropriations to make 
    payments under this section, like the payments that may be made 
    under section 2458b(b) of this title, then the request for those 
    appropriations shall be made in accordance with the procedures 
    established by subsections (d) and (e) of section 70113 of title 49.

(c) Cross-waivers

                (1) Administrator authorized to waive

        The Administrator, on behalf of the United States, and its 
    departments, agencies, and related entities, may reciprocally waive 
    claims with a developer or cooperating party and with the related 
    entities of that developer or cooperating party under which each 
    party to the waiver agrees to be responsible, and agrees to ensure 
    that its own related entities are responsible, for damage or loss to 
    its property for which it is responsible, or for losses resulting 
    from any injury or death sustained by its own employees or agents, 
    as a result of activities connected to the agreement or use of the 
    experimental aerospace vehicle.

                           (2) Limitations

        (A) Claims

            A reciprocal waiver under paragraph (1) may not preclude a 
        claim by any natural person (including, but not limited to, a 
        natural person who is an employee of the United States, the 
        developer, the cooperating party, or their respective 
        subcontractors) or that natural person's estate, survivors, or 
        subrogees for injury or death, except with respect to a subrogee 
        that is a party to the waiver or has otherwise agreed to be 
        bound by the terms of the waiver.

        (B) Liability for negligence

            A reciprocal waiver under paragraph (1) may not absolve any 
        party of liability to any natural person (including, but not 
        limited to, a natural person who is an employee of the United 
        States, the developer, the cooperating party, or their 
        respective subcontractors) or such a natural person's estate, 
        survivors, or subrogees for negligence, except with respect to a 
        subrogee that is a party to the waiver or has otherwise agreed 
        to be bound by the terms of the waiver.

        (C) Indemnification for damages

            A reciprocal waiver under paragraph (1) may not be used as 
        the basis of a claim by the Administration, or the developer or 
        cooperating party, for indemnification against the other for 
        damages paid to a natural person, or that natural person's 
        estate, survivors, or subrogees, for injury or death sustained 
        by that natural person as a result of activities connected to 
        the agreement or use of the experimental aerospace vehicle.

                   (3) Effect on previous waivers

        Subsection (c) of this section applies to any waiver of claims 
    entered into by the Administration without regard to whether it was 
    entered into before, on, or after October 20, 1999.

(d) Definitions

    In this section:

                        (1) Cooperating party

        The term ``cooperating party'' means any person who enters into 
    an agreement with the Administration for the performance of 
    cooperative scientific, aeronautical, or space activities to carry 
    out the purposes of this chapter.

                            (2) Developer

        The term ``developer'' means a United States person (other than 
    a natural person) who--
            (A) is a party to an agreement with the Administration for 
        the purpose of developing new technology for an experimental 
        aerospace vehicle;
            (B) owns or provides property to be flown or situated on 
        that vehicle; or
            (C) employs a natural person to be flown on that vehicle.

                 (3) Experimental aerospace vehicle

        The term ``experimental aerospace vehicle'' means an object 
    intended to be flown in, or launched into, orbital or suborbital 
    flight for the purpose of demonstrating technologies necessary for a 
    reusable launch vehicle, developed under an agreement between the 
    Administration and a developer.

                         (4) Related entity

        The term ``related entity'' includes a contractor or 
    subcontractor at any tier, a supplier, a grantee, and an 
    investigator or detailee.

(e) Relationship to other laws

                          (1) Section 2458b

        This section does not apply to any object, transaction, or 
    operation to which section 2458b of this title applies.

                     (2) Chapter 701 of title 49

        The Administrator may not provide indemnification to a developer 
    under this section for launches subject to license under section 
    70117(g)(1) of title 49.

(Pub. L. 85-568, title III, as added Pub. L. 106-74, title IV, 
Sec. 435(a), Oct. 20, 1999, 113 Stat. 1097.)

                          Codification

    Pub. L. 106-74 directed the insertion of this section after section 
308 of Pub. L. 85-568 without providing a section number.
    October 20, 1999, referred to in subsec. (c)(3), was in the original 
''the date of the enactment of this Act'', which was translated as 
meaning the date of enactment of Pub. L. 106-74, which enacted this 
section, to reflect the probable intent of Congress.
