S.Amdt. 6240

1. Adds SEC. ___. MODIFICATION TO PROVISIONS OF LAW RELATING TO CERTAIN ACTIVITIES WITH UNUSUALLY HAZARDOUS RISKS wherever appropriate

   Adds a section

   Inserted: SEC. ___. MODIFICATION TO PROVISIONS OF LAW RELATING TO CERTAIN ACTIVITIES WITH UNUSUALLY HAZARDOUS RISKS.

   Inserted: (a) Research and Development Contracts: Indemnification Provisions.--Section 3861 of title 10, United States Code, is amended--

   Inserted: (1) in subsection (a)--

   Inserted: (A) by inserting "the Secretary of Defense or" after "With the approval of"; and

   Inserted: (B) by inserting "or defense agency" before "for research"; and

   Inserted: (2) by adding at the end the following new subsection:

   Inserted: "(e) Approval by Secretary of Defense.--If, within 90 days of the submission of a request to the Secretary of a military department by a contractor for indemnification of the contractor by the military department for a risk that is unusually hazardous, the Secretary of a military department rejects or refuses to approve such request--

   Inserted: "(1) the contractor may appeal such rejection or refusal to the Secretary of Defense; and

   Inserted: "(2) the Secretary of Defense may approve the indemnification of the contractor by the military department.

   Inserted: "(f) Definition of Unusually Hazardous.--In this section, the term 'unusually hazardous' may include risk of the following:

   Inserted: "(1) burning, explosion, detonation, flight or surface impact, or toxic or hazardous material release associated with one or more of the following:

   Inserted: "(A) Products or programs relating to any hypersonic weapon system, including boost glide vehicles and air-breathing propulsion systems.

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   Inserted: "(B) Products or programs relating to rocket propulsion systems, including, at a minimum, with respect to rockets, missiles, launch vehicles, rocket engines or motors or hypersonic weapons systems using either a solid or liquid high energy propellant inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of Trinitrotoluene (TNT).

   Inserted: "(C) Products or programs relating to the introduction, fielding or incorporating of any item containing high energy propellants, inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of Trinitrotoluene into any ship, vessel, submarine, aircraft, or spacecraft.

   Inserted: "(2) Loss of products relating to a classified program where insurance is not available due to the prohibition of disclosure of classified information to commercial insurance providers, and without such disclosure access to insurance is not possible.

   Inserted: "(3) Any other risk that the contract defines as unusually hazardous.".

   Inserted: (b) Executive Order 10789.--

   Inserted: (1) Definition of unusually hazardous.--For purposes of Executive Order 10789 (50 U.S.C. 1431 note; relating to contracting authority of Government agencies in connection with national defense functions), the term "unusually hazardous" may include risk of one or more of the following:

   Inserted: (A) Burning, explosion, detonation, flight or surface impact, or toxic or hazardous material release associated with, including operations and maintenance thereof, one or more of the following:

   Inserted: (i) Products or programs relating to any hypersonic weapon system, including boost glide vehicles and air-breathing propulsion systems.

   Inserted: (ii) Products or programs relating to rocket propulsion systems, including, at a minimum, with respect to rockets, missiles, launch vehicles, rocket engines or motors or hypersonic weapons systems using either a solid or liquid high energy propellant inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of Trinitrotoluene (TNT).

   Inserted: (iii) Products or programs relating to the introduction, fielding or incorporating of any item containing high energy propellants, inclusive of any warhead, if any, in excess of 1000 pounds of the chemical equivalent of Trinitrotoluene into any ship, vessel, submarine, aircraft, or spacecraft.

   Inserted: (B) Loss of products relating to a classified program where insurance is not available due to the prohibition of disclosure of classified information to commercial insurance providers, and without such disclosure access to insurance is not possible.

   Inserted: (C) Any other risk that the contract defines as unusually hazardous.

   Inserted: (2) Willful misconduct exclusion.--(A) Pursuant to paragraph 1A(b)(2) of such Executive Order, an indemnification and hold harmless agreement entered into between the United States and a contractor, or between a contractor and a subcontractor, or between two subcontractors, may have the authority not to cover claims or losses, whether between the United States and a contractor, or between a contractor and a subcontractor, or between two subcontractors, caused by the willful misconduct or lack of good faith on the part of one or more contractor or subcontractor principal officials which are--

   Inserted: (i) claims by the United States (other than those arising through subrogation) against the contractor or subcontractor, or

   Inserted: (ii) losses affecting the property of such contractor or subcontractor.

   Inserted: (B) In this paragraph, the term "principal officials" means directors, officers, managers, superintendents, or other representatives supervising or directing--

   Inserted: (i) all or substantially all of the contractor or subcontractor's business;

   Inserted: (ii) all or substantially all of the contractor or subcontractor's operations at any one plant or separate location in which the contract is being performed; or

   Inserted: (iii) a separate and complete major industrial operation in connection with the performance of the contract.

   Inserted: (c) Extension of Requirement for Reports on Certain Activities With Unusually Hazardous Risks.--Section 1684 of the National Defense Authorization Act for Fiscal Year 2022 (Public Law 117-81) is amended--

   Inserted: (1) in subsection (a), by striking "2022 and 2023" and inserting "2022 through 2024"; and

   Inserted: (2) in subsection (b), by striking "September 30, 2023" and inserting "September 30, 2024".

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed