
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 106-405 Section 7]
[CITE: 49USC70112]

 
                        TITLE 49--TRANSPORTATION
 
              SUBTITLE IX--COMMERCIAL SPACE TRANSPORTATION
 
             CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES
 
Sec. 70112. Liability insurance and financial responsibility 
        requirements
        
    (a) General Requirements.--(1) When a launch or reentry license is 
issued or transferred under this chapter, the licensee or transferee 
shall obtain liability insurance or demonstrate financial responsibility 
in amounts to compensate for the maximum probable loss from claims by--
        (A) a third party for death, bodily injury, or property damage 
    or loss resulting from an activity carried out under the license; 
    and
        (B) the United States Government against a person for damage or 
    loss to Government property resulting from an activity carried out 
    under the license.

    (2) The Secretary of Transportation shall determine the amounts 
required under paragraph (1)(A) and (B) of this subsection, after 
consulting with the Administrator of the National Aeronautics and Space 
Administration, the Secretary of the Air Force, and the heads of other 
appropriate executive agencies.
    (3) For the total claims related to one launch or reentry, a 
licensee or transferee is not required to obtain insurance or 
demonstrate financial responsibility of more than--
        (A)(i) $500,000,000 under paragraph (1)(A) of this subsection; 
    or
        (ii) $100,000,000 under paragraph (1)(B) of this subsection; or
        (B) the maximum liability insurance available on the world 
    market at reasonable cost if the amount is less than the applicable 
    amount in clause (A)(i) or (ii) of this paragraph.

    (4) An insurance policy or demonstration of financial responsibility 
under this subsection shall protect the following, to the extent of 
their potential liability for involvement in launch services or reentry 
services, at no cost to the Government:
        (A) the Government.
        (B) executive agencies and personnel, contractors, and 
    subcontractors of the Government.
        (C) contractors, subcontractors, and customers of the licensee 
    or transferee.
        (D) contractors and subcontractors of the customer.

    (b) Reciprocal Waiver of Claims.--(1) A launch or reentry license 
issued or transferred under this chapter shall contain a provision 
requiring the licensee or transferee to make a reciprocal waiver of 
claims with its contractors, subcontractors, and customers, and 
contractors and subcontractors of the customers, involved in launch 
services or reentry services under which each party to the waiver agrees 
to be responsible for property damage or loss it sustains, or for 
personal injury to, death of, or property damage or loss sustained by 
its own employees resulting from an activity carried out under the 
applicable license.
    (2) The Secretary of Transportation shall make, for the Government, 
executive agencies of the Government involved in launch services or 
reentry services, and contractors and subcontractors involved in launch 
services or reentry services, a reciprocal waiver of claims with the 
licensee or transferee, contractors, subcontractors, and customers of 
the licensee or transferee, and contractors and subcontractors of the 
customers, involved in launch services or reentry services under which 
each party to the waiver agrees to be responsible for property damage or 
loss it sustains, or for personal injury to, death of, or property 
damage or loss sustained by its own employees resulting from an activity 
carried out under the applicable license. The waiver applies only to the 
extent that claims are more than the amount of insurance or 
demonstration of financial responsibility required under subsection 
(a)(1)(B) of this section. After consulting with the Administrator and 
the Secretary of the Air Force, the Secretary of Transportation may 
waive, for the Government and a department, agency, and instrumentality 
of the Government, the right to recover damages for damage or loss to 
Government property to the extent insurance is not available because of 
a policy exclusion the Secretary of Transportation decides is usual for 
the type of insurance involved.
    (c) Determination of Maximum Probable Losses.--The Secretary of 
Transportation shall determine the maximum probable losses under 
subsection (a)(1)(A) and (B) of this section associated with an activity 
under a license not later than 90 days after a licensee or transferee 
requires a determination and submits all information the Secretary 
requires. The Secretary shall amend the determination as warranted by 
new information.
    (d) Annual Report.--(1) Not later than November 15 of each year, the 
Secretary of Transportation shall submit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on Science 
of the House of Representatives a report on current determinations made 
under subsection (c) of this section related to all issued licenses and 
the reasons for the determinations.
    (2) Not later than May 15 of each year, the Secretary of 
Transportation shall review the amounts specified in subsection 
(a)(3)(A) of this section and submit a report to Congress that contains 
proposed adjustments in the amounts to conform with changed liability 
expectations and availability of insurance on the world market. The 
proposed adjustment takes effect 30 days after a report is submitted.
    (e) Launches or Reentries Involving Government Facilities and 
Personnel.--The Secretary of Transportation shall establish requirements 
consistent with this chapter for proof of financial responsibility and 
other assurances necessary to protect the Government and its executive 
agencies and personnel from liability, death, bodily injury, or property 
damage or loss as a result of a launch or operation of a launch site or 
reentry site or a reentry involving a facility or personnel of the 
Government. The Secretary may not relieve the Government of liability 
under this subsection for death, bodily injury, or property damage or 
loss resulting from the willful misconduct of the Government or its 
agents.
    (f) Collection and Crediting Payments.--The head of a department, 
agency, or instrumentality of the Government shall collect a payment 
owed for damage or loss to Government property under its jurisdiction or 
control resulting from an activity carried out under a launch or reentry 
license issued or transferred under this chapter. The payment shall be 
credited to the current applicable appropriation, fund, or account of 
the department, agency, or instrumentality.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1336; Pub. L. 104-
287, Sec. 5(74), (93), Oct. 11, 1996, 110 Stat. 3396, 3398; Pub. L. 105-
303, title I, Sec. 102(a)(12), Oct. 28, 1998, 112 Stat. 2850.)

                                          Historical and Revision Notes
                                                 Pub. L. 103-272
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
70112(a)(1), (2)......................  49 App.:2615(a)(1)(A) (1st       Oct. 3
0, 1984, Pub. L. 98-575, Sec.
                                         sentence), (B) (1st sentence).   16(a)
, (c), 98 Stat. 3061; restated
                                                                          Nov. 
15, 1988, Pub. L. 100-657, Sec.
                                                                          5(a),
 102 Stat. 3901, 3905.
70112(a)(3)...........................  49 App.:2615(a)(1)(A) (last
                                         sentence), (B) (last
                                         sentence).
70112(a)(4)...........................  49 App.:2615(a)(2).
70112(b)(1)...........................  49 App.:2615(a)(1)(C).
70112(b)(2)...........................  49 App.:2615(a)(1)(D).
70112(c)..............................  49 App.:2615(a)(3) (1st, 2d
                                         sentences).
70112(d)(1)...........................  49 App.:2615(a)(3) (last
                                         sentence).
70112(d)(2)...........................  49 App.:2615(a)(4).
70112(e)..............................  49 App.:2614(c).                 Oct. 3
0, 1984, Pub. L. 98-575, Sec.
                                                                          15(c)
, 98 Stat. 3061; restated Nov.
                                                                          15, 1
988, Pub. L. 100-657, Sec.  5(b),
                                                                          102 S
tat. 3905.
70112(f)..............................  49 App.:2615(c).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the word ``particular'' is omitted as surplus.
    In subsection (a)(1), before clause (A), the word ``sufficient'' is 
omitted as surplus. In clauses (A) and (B), the words ``in connection 
with any particular launch'' are omitted as surplus.
    In subsection (a)(4), before clause (A), the words ``made . . . a 
requirement described in'' are omitted as surplus.
    In subsection (b)(2), the words ``department, agency, and 
instrumentality of the Government'' are substituted for ``Federal 
agency'' for consistency in the revised title and with other titles of 
the United States Code.
    In subsection (d)(2), the words ``if appropriate'' are omitted as 
surplus.
    In subsection (f), the words ``department, agency, or 
instrumentality of the Government'' are substituted for ``Federal agency 
or department'' for consistency in the revised title and with other 
titles of the Code. The words ``insurance proceeds or . . . other'' and 
``proceeds or other'' are omitted as surplus.


                       Pub. L. 104-287, Sec. 5(93)

    This amends 49:70112(a)(3)(B) to clarify a cross-reference in the 
codification enacted by section 1 of the Act of July 5, 1994 (Public Law 
103-272, 108 Stat. 1337).


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-303, Sec. 102(a)(12)(A), inserted 
``launch or reentry'' before ``license is issued''.
    Subsec. (a)(3). Pub. L. 105-303, Sec. 102(a)(12)(B), inserted ``or 
reentry'' after ``one launch'' in introductory provisions.
    Subsec. (a)(4). Pub. L. 105-303, Sec. 102(a)(12)(C), inserted ``or 
reentry services'' after ``launch services'' in introductory provisions.
    Subsec. (b)(1). Pub. L. 105-303, Sec. 102(a)(12)(D)-(F), inserted 
``launch or reentry'' before ``license issued or transferred'', ``or 
reentry services'' after ``launch services'', and ``applicable'' after 
``carried out under the''.
    Subsec. (b)(2). Pub. L. 105-303, Sec. 102(a)(12)(E), (F), inserted 
``or reentry services'' after ``launch services'' wherever appearing and 
``applicable'' after ``carried out under the''.
    Subsec. (e). Pub. L. 105-303, Sec. 102(a)(12)(G), (H), inserted ``or 
Reentries'' after ``Launches'' in heading and ``or reentry site or a 
reentry'' after ``launch site'' in text.
    Subsec. (f). Pub. L. 105-303, Sec. 102(a)(12)(I), inserted ``launch 
or reentry'' before ``license issued or transferred''.
    1996--Subsec. (a)(3)(B). Pub. L. 104-287, Sec. 5(93), substituted 
``clause (A)(i) or (ii)'' for ``clause (A)''.
    Subsec. (d)(1). Pub. L. 104-287, Sec. 5(74), substituted ``Committee 
on Science'' for ``Committee on Science, Space, and Technology''.


                    Effective Date of 1996 Amendment

    Amendment by section 5(93) of Pub. L. 104-287 effective July 5, 
1994, see section 8(1) of Pub. L. 104-287, set out as a note under 
section 5303 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 70113 of this title; title 42 
section 2458c.
