Page:United States Statutes at Large Volume 102 Part 4.djvu/931

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PUBLIC LAW 100-657—NOV. 15, 1988

102 STAT. 3901

availability, on reasonable terms and conditions, of substantially equivalent launch property or launch services from a domestic source.". (b) Section 15(b)(l) of the (Commercial Space Launch Act (49 U.S.C. App. 2614(b)(l) is amended by adding at the end the following: "For purposes of this paragraph, the term 'direct costs' means the actual costs that can be unambiguously associated with a commercial launch effort, and would not be borne by the United States Government in the absence of a commercial launch effort.". (c) Section 15 of the Commercial Space Launch Act (49 U.S.C. App. 2614) is amended by adding at the end the following new subsection: "(d) The head of any Federal agency or department may collect pa5mtient for activities involved in the production of a launch vehicle or its payload for launch if such activities were Eigreed to by the owners or manufacturers of such launch vehicle or payload.". SEC. 5. INSURANCE REQUIREMENTS OF LICENSEE.

(a) Section 16 of the Commercial Space Launch Act (49 U.S.C. App. 2615) is amended to read as follows: "LIABILITY INSURANCE

"SEC. 16. (a)(l)(A) Each license issued or transferred under this Claims. Act shall require the licensee or transferee— "(i) to obtain liability insurance; or "(ii) to demonstrate financial responsibility, in an amount suf^cient to compensate the maximum probable loss (as determined by the Secretary, after consultation with the Administrator of the National Aeronautics and Space Administration, the Secretary of the Air Force, and the heads of other appropriate agencies) from claims by a third party for death, bodily injury, or loss of or damage to property resulting from activities carried out under the license in connection with any particular launch. In no event shall a licensee or transferee be required to obtain insurance or demonstrate financial responsibility under this subparagraph, with respect to the aggregate of such claims arising out of any particular launch, in an amount which exceeds (I) $500,000,000 or (II) the maximum liability insurance available on the world market at a reasonable cost, if such insurance is less than the amount in subclause (I). "(B) Each license issued or transferred under this Act shall require the licensee or transferee— "(i) to obtain liability insurance; or "(ii) to demonstrate financial responsibility, in an amount sufficient to compensate the maximum probable loss (as determined by the Secretary, after consultation with the Administrator of the National Aeronautics and Space Administration, the Secretary of the Air Force, and the heads of other appropriate agencies) from claims against any person by the United States for loss of or damage to property of the United States resulting from activities carried out under the license in connection with any particular launch. In no event shall a licensee or transferee be required to obtain insurance or demonstrate financial responsibility under this subparagraph, with respect to the aggregate of such claims arising out of any particular launch, in an amount which exceeds (I) $100,000,000 or (II) the maximum liability

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