161 
nership, individual aggregation of individuals, or another legal entity 
that provides commercial property and casualty insurance, including an 
affiliate of a commercial insurance carrier. 
(3) LIABILITY INSURANCE.—The term ‘‘liability insurance’’ means 
insurance for legal liabilities incurred by the insured resulting from— 
(A) loss of, or damage to, property of others; 
(B) ensuing loss of income or extra expense incurred because 
of loss of, or damage to, property of others; 
(C) bodily injury, including to persons other than the insured 
or its employees; or 
(D) loss resulting from debt or default of another. 
(4) LOSS.—The term ‘‘loss’’ means death, bodily injury, or loss of, 
or damage to, property, including business interruption loss. 
(5) NON-FEDERAL GOVERNMENT CUSTOMERS.—The term ‘‘non-Fed-
eral Government customers’’ means a customer of a Seller that is not 
an agency or instrumentality of the United States Government with au-
thority under Public Law 85–804 (50 U.S.C. 1431 et seq.) to provide 
for indemnification under certain circumstances for third-party claims 
against its contractors, including State and local authorities and com-
mercial entities. 
(6) QUALIFIED ANTI-TERRORISM TECHNOLOGY.—The term ‘‘quali-
fied anti-terrorism technology’’ means a product, equipment, service 
(including support services), device, or technology (including informa-
tion technology) designed, developed, modified, or procured for the spe-
cific purpose of preventing, detecting, identifying, or deterring acts of 
terrorism or limiting the harm the acts might otherwise cause, that is 
designated as such by the Secretary. 
(7) SELLER.—The term ‘‘Seller’’ means a person or entity that sells 
or otherwise provides a qualified anti-terrorism technology to Federal 
and non-Federal Government customers. 
§ 10622. Administration 
(a) IN GENERAL.—The Secretary is responsible for the administration of 
this subchapter. 
(b) DESIGNATION OF QUALIFIED ANTI-TERRORISM TECHNOLOGIES.— 
The Secretary may designate anti-terrorism technologies that qualify for 
protection under the system of risk management set forth in this subchapter 
in accordance with criteria that shall include the following: 
(1) Prior United States Government use or demonstrated substantial 
utility and effectiveness. 
(2) Availability of the technology for immediate deployment in public 
and private settings. 
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(3) 
Existence 
of 
extraordinarily 
large 
or 
extraordinarily 
unquantifiable potential third party liability risk exposure to the Seller 
or other provider of the anti-terrorism technology. 
(4) Substantial likelihood that the anti-terrorism technology will not 
be deployed unless protections under the system of risk management 
provided under this subchapter are extended. 
(5) Magnitude of risk exposure to the public if the anti-terrorism 
technology is not deployed. 
(6) Evaluation of all scientific studies that can be feasibly conducted 
in order to assess the capability of the technology to substantially re-
duce risks of harm. 
(7) Anti-terrorism technology that would be effective in facilitating 
the defense against acts of terrorism, including technologies that pre-
vent, defeat, or respond to the acts. 
(c) REGULATIONS.—The Secretary may issue regulations, after notice 
and comment under section 553 of title 5, necessary to carry out this sub-
chapter. 
§ 10623. Litigation management 
(a) FEDERAL CAUSE OF ACTION.— 
(1) IN GENERAL.—There shall exist a Federal cause of action for 
claims arising out of, relating to, or resulting from, an act of terrorism 
when qualified anti-terrorism technologies have been deployed in de-
fense against, in response to, or in recovery from the act, and the 
claims result, or may result, in loss to the Seller. The substantive law 
for decision in any action shall be derived from the law, including 
choice of law principles, of the State in which the act of terrorism oc-
curred, unless the law is inconsistent with or preempted by Federal 
law. The Federal cause of action shall be brought only for claims for 
injuries that are proximately caused by sellers that provide qualified 
anti-terrorism technology to Federal and non-Federal government cus-
tomers. 
(2) JURISDICTION.—An appropriate district court of the United 
States shall have original and exclusive jurisdiction over all actions for 
any claim for loss of property, personal injury, or death arising out of, 
relating to, or resulting from, an act of terrorism when qualified anti- 
terrorism technologies have been deployed in defense against, in re-
sponse to, or in recovery from the act, and the claims result, or may 
result, in loss to the Seller. 
(b) SPECIAL RULES.—In an action brought under this section for dam-
ages the following provisions apply: 
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(1) PUNITIVE DAMAGES; INTEREST.—No punitive damages intended 
to punish or deter, exemplary damages, or other damages not intended 
to compensate a plaintiff for actual losses may be awarded, nor shall 
any party be liable for interest prior to the judgment. 
(2) NONECONOMIC DAMAGES.— 
(A) DEFINITION OF NONECONOMIC DAMAGES.—In this para-
graph, the term ‘‘noneconomic damages’’ means damages for 
losses for physical and emotional pain, suffering, inconvenience, 
physical impairment, mental anguish, disfigurement, loss of enjoy-
ment of life, loss of society and companionship, loss of consortium, 
hedonic damages, injury to reputation, and any other nonpecu-
niary losses. 
(B) WHEN AWARDED.—Noneconomic damages may be awarded 
against a defendant only in an amount directly proportional to the 
percentage of responsibility of the defendant for the harm to the 
plaintiff, and no plaintiff may recover noneconomic damages un-
less the plaintiff suffered physical harm. 
(c) COLLATERAL SOURCES.—Any recovery by a plaintiff in an action 
under this section shall be reduced by the amount of collateral source com-
pensation, if any, that the plaintiff has received or is entitled to receive as 
a result of the act of terrorism that results or may result in loss to the Sell-
er. 
(d) GOVERNMENT CONTRACTOR DEFENSE.— 
(1) IN GENERAL.—Should a product liability or other lawsuit be filed 
for claims arising out of, relating to, or resulting from, an act of ter-
rorism when qualified anti-terrorism technologies approved by the Sec-
retary, as provided in paragraphs (2) and (3) of this subsection, have 
been deployed in defense against, in response to, or in recovery from 
the act, and the claims result, or may result, in loss to the Seller, there 
shall be a rebuttable presumption that the government contractor’s de-
fense applies in the lawsuit. This presumption shall only be overcome 
by evidence showing that the Seller acted fraudulently or with willful 
misconduct in submitting information to the Secretary during the 
course of the Secretary’s consideration of the technology under this 
subsection. This presumption of the government contractor’s defense 
shall apply regardless of whether the claim against the Seller arises 
from a sale of the product to Federal Government or non-Federal Gov-
ernment customers. 
(2) EXCLUSIVE RESPONSIBILITY.—The Secretary is exclusively re-
sponsible for the review and approval of anti-terrorism technology for 
purposes of establishing a government contractor’s defense in any prod-
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uct liability lawsuit for claims arising out of, relating to, or resulting 
from, an act of terrorism when qualified anti-terrorism technologies ap-
proved by the Secretary, as provided in this paragraph and paragraph 
(3), have been deployed in defense against, in response to, or in recov-
ery from the act, and the claims result, or may result, in loss to the 
Seller. Upon the Seller’s submission to the Secretary for approval of 
anti-terrorism technology, the Secretary shall conduct a comprehensive 
review of the design of the technology and determine whether it will 
perform as intended, conforms to the Seller’s specifications, and is safe 
for use as intended. The Seller shall conduct safety and hazard anal-
yses on the technology and shall supply the Secretary with all such in-
formation relating to the analyses. 
(3) CERTIFICATE.—For anti-terrorism technology reviewed and ap-
proved by the Secretary, the Secretary shall issue a certificate of con-
formance to the Seller and place the anti-terrorism technology on an 
Approved Product List for Homeland Security. 
(e) EXCLUSION.—Nothing in this section shall in any way limit the ability 
of any person to seek any form of recovery from any person, government, 
or other entity that— 
(1) attempts to commit, knowingly participates in, aids and abets, 
or commits any act of terrorism, or any criminal act related to or re-
sulting from the act of terrorism; or 
(2) participates in a conspiracy to commit an act of terrorism or a 
criminal act. 
§ 10624. Risk management 
(a) IN GENERAL.— 
(1) LIABILITY INSURANCE REQUIRED.—The Seller shall obtain liabil-
ity insurance of the types and in the amounts as required under this 
section and certified by the Secretary to satisfy otherwise compensable 
third-party claims arising out of, relating to, or resulting from, an act 
of terrorism when qualified anti-terrorism technologies have been de-
ployed in defense against, in response to, or in recovery from the act. 
(2) MAXIMUM AMOUNT.—For the total claims related to one act of 
terrorism, the Seller is not required to obtain liability insurance of 
more than the maximum amount of liability insurance reasonably avail-
able from private sources on the world market at prices and terms that 
will not unreasonably distort the sales price of Seller’s anti-terrorism 
technologies. 
(3) SCOPE OF COVERAGE.—Liability insurance obtained under this 
subsection shall, in addition to the Seller, protect the following, to the 
extent of their potential liability for involvement in the manufacture, 
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