BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2243|
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                                 THIRD READING


          Bill No:  AB 2243
          Author:   Knight (R), et al.
          Amended:  8/7/12 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  4-0, 7/3/12
          AYES:  Evans, Blakeslee, Corbett, Leno
          NO VOTE RECORDED:  Harman

           ASSEMBLY FLOOR  :  73-0, 5/10/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Space flight:  Space Flight Liability and 
          Immunity Act

           SOURCE  :     Author


           DIGEST  :   This bill provides a limited civil immunity to 
          space flight entities for injuries sustained by a space 
          flight participant if the entities meet certain 
          requirements; including warning the voluntary participant 
          of the inherent risks of space flight and obtaining the 
          participant's informed signed consent.   This bill does not 
          provide immunity for injuries proximately caused by a space 
          flight entity that is grossly negligent, willfully or 
          wantonly disregards the safety of the participant, 
          intentionally causes injury, or has actual knowledge or 
          reasonably should have known of a dangerous condition, as 
          specified.

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           ANALYSIS  :    Existing federal law encourages private sector 
          efforts to provide commercial space flight.  (51 U.S.C.S. 
          Sec. 50901 et seq.)

          Existing federal law provides for the licensing of entities 
          who provide space launch and reentry services.  (51 
          U.S.C.S. Sec. 50905.)

          Existing federal law requires a license holder who provides 
          space launch and reentry services to inform the space 
          flight participant in writing about the risks of the launch 
          and reentry and requires that the space flight participant 
          be informed in writing of relevant information related to 
          the risk or probable loss during each phase of the space 
          flight.  (51 U.S.C.S. Sec. 50905(b)(5).)

          Existing law provides that everyone is responsible, not 
          only for the result of his or her willful acts, but also 
          for an injury to another caused by his or her lack of 
          ordinary care or skill in the management of his or her 
          property or person, except so far as the latter has, 
          willfully or from lack of ordinary care, brought the injury 
          upon himself or herself.  (Civil Code Sec. 1714(a).)

          This bill requires a space flight entity to provide, in 
          addition to any language required to be provided by federal 
          law, a space flight participant with the following warning 
          of inherent risks associated with space flight:

               WARNING AND ACKNOWLEDGMENT:  I understand and 
               acknowledge that, under California law, there is 
               limited civil liability for bodily injury, including 
               death, emotional injury, or property damage, sustained 
               by a participant as a result of the inherent risks 
               associated with space flight activities provided by a 
               space flight entity.  I have given my informed consent 
               to participate in space flight activities after 
               receiving a description of the inherent risks 
               associated with space flight activities, as required 
               by federal law pursuant to Section 50905 of Title 51 
               of the United States Code and Section 460.45 of Title 
               14 of the Code of Federal Regulations.  The consent 
               that I have given acknowledges that the inherent risks 
               associated with space flight activities include, but 

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               are not limited to, risk of bodily injury, including 
               death, emotional injury, and property damage.  I 
               understand and acknowledge that I am participating in 
               space flight activities at my own risk.  I have been 
               given the opportunity to consult with an attorney 
               before signing this statement.

          This bill requires the space flight entity to obtain the 
          participant's written acknowledgment of this warning.

          This bill provides that a space flight entity's failure to 
          comply with the written warning and consent requirements 
          above shall prevent the space flight entity from invoking 
          the limited immunity provided in this bill.

          This bill provides the following definitions:

           "participant" means a space flight participant as defined 
            in Section 50902 of Title 51 of the United States Code;

           "participant injury" means a bodily injury, including 
            death, emotional injury, or property damage, sustained by 
            the participant;

           "space flight activities" means launch services or 
            reentry services; and

           "space flight entity" means any public or private entity 
            that holds, either directly or through a corporate 
            subsidiary or parent, a license, permit, or other 
            authorization issued by the United States Federal 
            Aviation Administration.

          This bill provides that a space flight entity shall not be 
          liable for participant injury arising out of space flight 
          activities if both of the following apply:  (1) the 
          participant has been informed of the risks associated with 
          space flight activities as required by federal law and the 
          written warning and consent requirements contained in this 
          bill; and (2) the participant has given his or her informed 
          consent that he or she is voluntarily participating in 
          space flight activities after having been informed of the 
          risks associated with those activities, as required by 
          federal law and the provisions of the bill.  

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          This bill provides that if the participant provides 
          informed consent to the inherent risks specified in the 
          warning, then a participant, his or her representative, 
          including the heirs, administrators, executors, assignees, 
          next of kin, and estate of the participant, or any person 
          who attempts to bring a claim on behalf of the participant 
          for a participant injury, shall not be authorized to 
          maintain an action against, or recover from, a space flight 
          entity for a participant injury that results from the risks 
          associated with space flight activities.

          This bill provides that a space flight entity is still 
          subject to civil liability if the space flight entity does 
          any of the following:  

           1. Commits an act or omission that constitutes gross 
             negligence or willful or wanton disregard for the safety 
             of the participant, and that act or omission proximately 
             causes a participant injury; 

           2. Intentionally causes a participant injury; or 

           3. Has actual knowledge or reasonably should have known of 
             a dangerous condition on the land or in the facilities 
             or equipment used in space flight activities and the 
             dangerous condition proximately causes injury, damage, 
             or death to the participant.

          This bill specifies that any limitation on legal liability 
          afforded by this bill to a space flight entity is in 
          addition to any other limitations of legal liability 
          otherwise provided by law.

          This bill specifies that it shall be construed to limit the 
          liability of a manufacturer of a part or component used in 
          space flight activities if a defective part or component 
          proximately causes an injury to the participant.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT :   (Verified  8/7/12)


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          Commercial Spaceflight Federation
          Mojave Air & Space Port
          The Spaceship Company
          Virgin Galactic

           ARGUMENTS IN SUPPORT  :    According to the author:

               The first human entered space over 50 years ago, a 
               pursuit that was decades in the making.  Every 
               astronaut since has assumed the immense risk involved 
               in being hurled into orbit to further human 
               development through the exploration of countless 
               scientific experiments producing everything from new 
               consumer products and the expansion of communications 
               to cures for diseases.  Human space flight has been 
               carried-out exclusively by government spaces agencies 
               of the United States and Russia, with expertise 
               provided by the private sector.  With the retirement 
               of the U.S. space shuttle program, innovators in 
               private industry have developed new forms of space 
               transportation vehicles and are being looked upon to 
               fill the void of manned space flight.  Undoubtedly, 
               however, they face the risk of civil suits if anyone 
               is harmed undertaking this inherently dangerous 
               activity.

               In order to promote the emerging industry of private 
               human space travel, California must provide innovators 
               with regulatory latitude and limited indemnification 
               from civil liability to ensure the state's competitive 
               marketplace.

          Supporters of this bill assert that the commercial space 
          flight industry feels vulnerable to law suits that may 
          arise if passengers are injured or die during commercial 
          space flight.  Indeed, the commercial space flight industry 
          is working to get state laws passed that limit their 
          liability for participants injured as a result of the 
          inherent risks associated with commercial space flight.  
          Since California is an industry leader in commercial 
          spaceflight and home to the nation's first licensed 
          commercial spaceport, housed in Mojave, proponents of the 
          bill argue that California must enact similar legislation 
          to remain competitive and not lose industry jobs to the 

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          other states that have enacted limited civil liability laws 
          for commercial space flight.  

          Virgin Galactic and The Spaceship Company, in support, 
          assert that "the human spaceflight industry and the jobs it 
          creates require sensible regulation governing liability."  
          Further, they argue that "the net effect of AB 2243 will be 
          to provide �their companies] with important assurances that 
          are already offered by a growing number of competing states 
          ? and ensure that California remains a center of American 
          aerospace leadership."  They also assert that their 
          "companies have invested �since 2005] approximately $200 
          million in California, and created or supported roughly 500 
          high quality jobs in the state."

          Mojave Air & Space Port, also in support, argues that time 
          "is of the essence" and California "must take all means to 
          insure barriers such as civil liability litigation does not 
          hinder the efforts of those that strive to innovate."  


           ASSEMBLY FLOOR  :  73-0, 5/10/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Pan, Perea, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Cook, Fletcher, Furutani, Jeffries, 
            Norby, Olsen, V. Manuel P�rez


          RJG:nl  8/7/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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