51 U.S.C. § 20139 — Insurance for experimental aerospace

Page 36 TITLE 51—NATIONAL AND COMMERCIAL SPACE PROGRAMS § 20138 § 20138. Insurance and indemnification (a) DEFINITIONS.—In this section: (1) SPACE VEHICLE.—The term ‘‘space vehi- cle’’ means an object intended for launch, launched, or assembled in outer space, includ- ing the space shuttle and other components of a space transportation system, together with related equipment, devices, components, and parts. (2) THIRD PARTY.—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. (3) USER.—The term ‘‘user’’ includes anyone who enters into an agreement with the Admin- istration 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. (b) AUTHORIZATION.—The Administration is au- thorized 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 connec- tion 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 re- imbursed to the maximum extent practicable by the users under reimbursement policies estab- lished pursuant to section 20113 of this title. (c) INDEMNIFICATION.—Under such regulations in conformity with this section as the Adminis- trator shall prescribe taking into account the availability, cost, and terms of liability insur- ance, any agreement between the Administra- tion 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 re- covery of the space vehicle, but only to the ex- tent that such claims are not compensated by li- ability insurance of the user. Such indemnifica- tion may be limited to claims resulting from other than the actual negligence or willful mis- conduct of the user. (d) TERMS OF INDEMNIFICATION AGREEMENT.— An agreement made under subsection (c) 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. (e) CERTIFICATION OF JUST AND REASONABLE AMOUNT.—No payment may be made under sub- section (c) unless the Administrator or the Ad- ministrator’s designee certifies that the amount is just and reasonable. (f) PAYMENTS.—Upon the approval by the Ad- ministrator, payments under subsection (c) may be made, at the Administrator’s election, either from funds available for research and develop- ment not otherwise obligated or from funds ap- propriated for such payments. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3344.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 20138 .......... 42 U.S.C. 2458b. Pub. L. 85–568, title III, § 308, as added Pub. L. 96–48, § 6(b)(2), Aug. 8, 1979, 93 Stat. 348. § 20139. Insurance for experimental aerospace vehicles (a) DEFINITIONS.—In this section: (1) COOPERATING PARTY.—The term ‘‘cooper- ating 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 aero- space 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 pur- pose 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 en- tity’’ includes a contractor or subcontractor at any tier, a supplier, a grantee, and an inves- tigator or detailee. (b) IN GENERAL.—The Administrator may pro- vide 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. (c) TERMS AND CONDITIONS.— (1) IN GENERAL.—Except as otherwise pro- vided in this section, the insurance and indem- nification provided by the Administration under subsection (b) to a developer shall be provided on the same terms and conditions as insurance and indemnification is provided by the Administration under section 20138 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 Page 37 TITLE 51—NATIONAL AND COMMERCIAL SPACE PROGRAMS § 20139 (ii) the United States Government for damage or loss to Government property re- sulting from such an activity. (B) MAXIMUM REQUIRED.—The Adminis- trator shall determine the amount of insur- ance required, but, except as provided in subparagraph (C), that amount shall not be greater than the amount required under sec- tion 50914(a)(3) of this title for a launch. The Administrator shall publish notice of the Administrator’s determination and the ap- plicable amount or amounts in the Federal Register within 10 days after making the de- termination. (C) INCREASE IN DOLLAR AMOUNTS.—The Ad- ministrator may increase the dollar amounts set forth in section 50914(a)(3)(A) of this title 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 no- tice 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 no- tice, a complete record of any correspond- ence received by the Administration, and a transcript of any meetings in which the Ad- ministration participated, regarding the pro- posed increase. (D) SAFETY REVIEW REQUIRED BEFORE AD- MINISTRATOR PROVIDES INSURANCE.—The Ad- ministrator may not provide liability insur- ance or indemnification under subsection (b) unless the developer establishes to the satis- faction of the Administrator that appro- priate safety procedures and practices are being followed in the development of the ex- perimental aerospace vehicle. (3) NO INDEMNIFICATION WITHOUT CROSS-WAIV- ER.—Notwithstanding subsection (b), the Ad- ministrator may not indemnify a developer of an experimental aerospace vehicle under this section unless there is an agreement between the Administration and the developer de- scribed in subsection (d). (4) APPLICATION OF CERTAIN PROCEDURES.—If the Administrator requests additional appro- priations to make payments under this sec- tion, like the payments that may be made under section 20138(c) of this title, then the re- quest for those appropriations shall be made in accordance with the procedures established by subsections (d) and (e) of section 50915 of this title. (d) CROSS-WAIVERS.— (1) ADMINISTRATOR AUTHORIZED TO WAIVE.— The Administrator, on behalf of the United States, and its departments, agencies, and in- strumentalities, 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 prop- erty 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 lim- ited to, a natural person who is an employee of the United States, the developer, the co- operating party, or their respective sub- contractors) 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 recip- rocal waiver under paragraph (1) may not ab- solve any party of liability to any natural person (including, but not limited to, a nat- ural 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 re- ciprocal waiver under paragraph (1) may not be used as the basis of a claim by the Admin- istration, 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 ex- perimental aerospace vehicle. (D) WILLFUL MISCONDUCT.—A reciprocal waiver under paragraph (1) may not relieve the United States, the developer, the cooper- ating party, or the related entities of the de- veloper or cooperating party, of liability for damage or loss resulting from willful mis- conduct. (3) EFFECT ON PREVIOUS WAIVERS.—This sub- section applies to any waiver of claims entered into by the Administration without regard to the date on which the Administration entered into the waiver. (e) RELATIONSHIP TO OTHER LAWS.— (1) SECTION 20138.—This section does not apply to any object, transaction, or operation to which section 20138 of this title applies. (2) SECTION 50919(g)(1).—The Administrator may not provide indemnification to a devel- oper under this section for launches subject to license under section 50919(g)(1) of this title. (f) TERMINATION.— (1) IN GENERAL.—The provisions of this sec- tion shall terminate on December 31, 2010. (2) EFFECT OF TERMINATION ON AGREEMENT.— The termination of this section shall not ter- minate or otherwise affect any cross-waiver agreement, insurance agreement, indemnifica- tion agreement, or other agreement entered into under this section, except as may be pro- vided in that agreement. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3345.) Page 38 TITLE 51—NATIONAL AND COMMERCIAL SPACE PROGRAMS § 20140 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 20139 .......... 42 U.S.C. 2458c. Pub. L. 85–568, title III, § 309, formerly title III, as added Pub. L. 106–74, title IV, § 435(a), Oct. 20, 1999, 113 Stat. 1097; designated § 309 and amended Pub. L. 106–391, title III, § 324(a)(2), (b), Oct. 30, 2000, 114 Stat. 1599, 1600; Pub. L. 109–155, title VII, § 702, Dec. 30, 2005, 119 Stat. 2936. In subsection (d)(3), the words ‘‘without regard to the date on which the Administration entered into the waiver’’ are substituted for ‘‘without regard to whether it was entered into before, on, or after the date of en- actment of this Act’’ to avoid an ambiguity in the law. Literally, the words ‘‘the date of enactment of this Act’’ mean July 29, 1958, the date of enactment of Pub- lic Law 85–568. However, the intended meaning of the words ‘‘the date of enactment of this Act’’ is probably October 20, 1999, the date of enactment of Public Law 106–74. The question as to which date is actually in- tended is rendered inconsequential by the words ‘‘be- fore, on, or after’’. § 20140. Appropriations (a) AUTHORIZATION.— (1) IN GENERAL.—There are authorized to be appropriated such sums as may be necessary to carry out this chapter, except that nothing in this chapter shall authorize the appropria- tion of any amount for— (A) the acquisition or condemnation of any real property; or (B) any other item of a capital nature (such as plant or facility acquisition, con- struction, or expansion) which exceeds $250,000. (2) AVAILABILITY.—Sums appropriated pursu- ant to this subsection for the construction of facilities, or for research and development ac- tivities, shall remain available until expended. (b) USE OF FUNDS FOR EMERGENCY REPAIRS OF EXISTING FACILITIES.—Any funds appropriated for the construction of facilities may be used for emergency repairs of existing facilities when such existing facilities are made inoperative by major breakdown, accident, or other cir- cumstances and such repairs are deemed by the Administrator to be of greater urgency than the construction of new facilities. (c) TERMINATION.—Notwithstanding any other provision of law, the authorization of any appro- priation to the Administration shall expire (un- less an earlier expiration is specifically pro- vided) at the close of the third fiscal year fol- lowing the fiscal year in which the authoriza- tion was enacted, to the extent that such appro- priation has not theretofore actually been made. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3347.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 20140 .......... 42 U.S.C. 2459. Pub. L. 85–568, title III, § 310, formerly § 307, July 29, 1958, 72 Stat. 438; Pub. L. 88–113, § 6, Sept. 6, 1963, 77 Stat. 144; renumbered § 308, Pub. L. 94–464, § 3, Oct. 8, 1976, 90 Stat. 1988; renumbered § 309, Pub. L. 96–48, § 6(b)(1), Aug. 8, 1979, 93 Stat. 348; renumbered § 310, Pub. L. 106–391, title III, § 324(a)(1), Oct. 30, 2000, 114 Stat. 1599. § 20141. Misuse of agency name and initials (a) IN GENERAL.—No person (as defined by sec- tion 20135(a) of this title) may knowingly use the words ‘‘National Aeronautics and Space Ad- ministration’’ or the letters ‘‘NASA’’, or any combination, variation, or colorable imitation of those words or letters either alone or in com- bination with other words or letters— (1) as a firm or business name in a manner reasonably calculated to convey the impres- sion that the firm or business has some con- nection with, endorsement of, or authorization from, the Administration which does not, in fact, exist; or (2) in connection with any product or service being offered or made available to the public in a manner reasonably calculated to convey the impression that the product or service has the authorization, support, sponsorship, or en- dorsement of, or the development, use, or manufacture by or on behalf of the Adminis- tration which does not, in fact, exist. (b) CIVIL PROCEEDING TO ENJOIN.—Whenever it appears to the Attorney General that any person is engaged in an act or practice which con- stitutes or will constitute conduct prohibited by subsection (a), the Attorney General may ini- tiate a civil proceeding in a district court of the United States to enjoin such act or practice. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3348.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 20141 .......... 42 U.S.C. 2459b. Pub. L. 85–568, title III, § 311, formerly § 310, as added Pub. L. 98–52, title I, § 107, July 15, 1983, 97 Stat. 284; renumbered § 311, Pub. L. 106–391, title III, § 324(a)(1), Oct. 30, 2000, 114 Stat. 1599. § 20142. Contracts regarding expendable launch vehicles (a) COMMITMENTS BEYOND AVAILABLE APPRO- PRIATIONS.—The Administrator may enter into contracts for expendable launch vehicle services that are for periods in excess of the period for which funds are otherwise available for obliga- tion, provide for the payment for contingent li- ability which may accrue in excess of available appropriations in the event the Federal Govern- ment for its convenience terminates such con- tracts, and provide for advance payments rea- sonably related to launch vehicle and related