BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2243
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2243 (Knight)
          As Amended August 7, 2012
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(May 10, 2012)  |SENATE: |37-0 |(August 23,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    JUD.  

           SUMMARY  :  Provides qualified immunity from liability to a space 
          flight entity for injuries to a space flight participant, so 
          long as a written warning statement is provided to the 
          participant and the injury was not the result of space flight 
          entity's gross negligence or intentional acts, as specified.  
          Specifically,  this bill  :  

          1)Defines "space flight activity" to mean space launch and 
            reentry services, as those terms are defined by federal law.  
            Defines "space flight entity" to mean any public or private 
            entity that holds a federal license to provide space launch 
            and reentry services.  Defines a space flight "participant" to 
            mean, consistent with federal law, any person, other than a 
            crew member, who is carried in a launch vehicle or reentry 
            vehicle.

          2)Requires a space flight entity to have each space flight 
            participant sign a prescribed warning statement acknowledging 
            that the participant understands the inherent risks associated 
            with space flight activity, including death, and also 
            acknowledging that the space flight entity has limited 
            liability for injuries or damages sustained by a participant 
            as a result of these inherent risks. 

          3)Provides that a space flight entity shall not be liable for a 
            participant injury arising out of space flight activities if 
            both of the following apply:

             a)   The participant has been informed of the inherent risks 
               associated with space flight activities, pursuant to the 
               warning and acknowledgement described above.

             b)   The participant has given his or her informed consent 








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               that he or she is voluntarily participating in space flight 
               activities after having been informed of the risks 
               associated with those activities. 

          4)Specifies that if informed consent is given, pursuant to the 
            above, a participant, his or her representative, including 
            heirs, estate, or next-of-kin, or any person who attempts to 
            bring a claim on behalf of the participant, shall not be 
            authorized to maintain an action against, or recover from, a 
            space flight entity for injury, including death, that resulted 
            from the inherent risks associated with space flight activity.

          5)Provides that nothing in this bill shall prevent or limit the 
            liability of a space flight entity if it does any of the 
            following:

             a)   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.

             b)   Intentionally causes a participant injury.

             c)   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 
               conditions proximately causes injury, damage, or death to 
               the participant. 

          6)Specifies that nothing in this bill shall be construed to 
            limit the legal 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. 

          7)Specifies that any limitation on legal liability afforded by 
            this section to a space flight entity is in addition to any 
            other limitations of legal liability otherwise provided by 
            law. 
           
          The Senate amendments:  

          1)Delete legislative findings and declarations.

          2)Amend the prescribed warning statement to clarify that the 
            space flight entity has "limited" liability as opposed to "no" 








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            liability. 
           
          EXISTING LAW  : 

          1)Promotes and encourages, under the federal Commercial Space 
            Launch Amendments Act of 2004, the use of the space 
            environment for peaceful purposes and private sector efforts 
            to provide commercial space flight services.  

          2)Provides, under federal law, for the licensing of persons or 
            entities who wish to provide space launch and reentry services 
            and requires, among other things, that the license holder 
            inform the space flight participant in writing about the risks 
            of the launch and reentry, including the safety record of the 
            launch or reentry vehicle type, and has informed the space 
            flight participant in writing of any relevant information 
            related to risk or probable loss during each phase of the 
            flight.  

          3)Provides that every person is responsible, not only for the 
            result of his or her willful acts, but also for an injury 
            caused to another by his or her want of ordinary care or skill 
            in the management of his or her property or person.  

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version approved by the Senate.
           
          FISCAL EFFECT  :  None 

           COMMENTS  :  In 2004 Congress passed the Commercial Space Launch 
          Amendments Act of 2004 (CSLAA).  This Act was designed to 
          "promote the development of the emerging commercial space flight 
          industry."  CSLAA creates a licensing and regulatory regime 
          designed to foster the growth of this emerging industry; it also 
          recognizes that the inherent dangers of space travel, especially 
          at this early stage of development, creates liability and 
          litigation concerns that could potentially stymie this infant 
          industry.  For example, under CSLAA the federal government 
          indemnified the industry for liability to injured third parties 
          through 2007; thereafter, the industry was required to obtain 
          liability insurance for injuries to third parties.  However 
          protection from third party liability - e.g. property that might 
          be damaged if a space vehicle crashed on takeoff or reentry - 
          did not immunize commercial space flight providers for injuries 
          to passengers who participate in the commercial space flight. 








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          This bill - similar to laws recently enacted in Florida, 
          Virginia, Texas, and New Mexico - would limit the liability of 
          the commercial space flight industry for death or injury arising 
          out of the inherent risks of space flight, so long the 
          participant has informed of those risks and has signed a 
          prescribed statement acknowledging the he or she understands the 
          nature of the risk and the limits of the space flight entity's 
          liability for death or injury.  Nothing in this bill would 
          prevent or limit the liability of a space flight entity for an 
          injury that is caused by gross negligence or a willful or 
          intentional act.  The bill also specifies that the immunity 
          applies only to the provider of the space flight activity; it 
          does not apply to the manufacture of a part or component used in 
          space flight activities. 

          With the retirement of the U.S. space shuttle program, the 
          author claims that innovators in private industry are looking to 
          fill the void, but they are wary of civil suits if anyone is 
          harmed undertaking this inherently dangerous activity.  By 
          providing this emerging industry with limited immunity for 
          injuries that result from the inherent risks of space flight, 
          the author hopes that this measure will ensure California's 
          place in the competitive marketplace.  

           
          Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334 


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