BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 415
          Author:   Knight (R), et.al.
          Amended:  1/22/14
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  6-0, 1/14/14
          AYES:  Evans, Corbett, Jackson, Leno, Monning, Vidak
          NO VOTE RECORDED:  Anderson


          SUBJECT  :    Space flight liability

           SOURCE  :     Author


           DIGEST  :    This bill clarifies that the waiver requirement  
          approved by AB 2243 (Knight, Chapter 416, Statutes of 2012)  
          shall not be construed to be contrary to the public policy of  
          this state.

           ANALYSIS  :    Existing federal law encourages private sector  
          efforts to provide commercial space flight, provides for the  
          licensing of entities that provide space launch and reentry  
          services, and requires a license holder who provides space  
          launch and reentry services (space flight entities) 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. 

          Existing state law:
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          1.Provides that everyone is responsible, not only for the result  
            of his/her willful acts, but also for an injury to another  
            caused by his/her lack of ordinary care or skill in the  
            management of his/her property or person, except so far as the  
            latter has, willfully or from lack of ordinary care, brought  
            the injury upon himself/herself. 

          2.Requires a space flight entity to provide a space flight  
            participant, at minimum and in addition to any language  
            required to be provided by federal law, warning of the  
            inherent risks associated with space flight for which there is  
            limited civil liability under California law, including, but  
            not limited to risk of bodily injury, including death,  
            emotional injury and property damage.  The space flight entity  
            must obtain the participant's signature acknowledging the  
            statutory warning.  

          3.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. 

          4.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:  (a) 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, as specified; and (b) the participant has given  
            his/her informed consent that he/she is voluntarily  
            participating in space flight activities after having been  
            informed of the risks associated with those activities, as  
            specified.  

          5.States that if the participant provides informed consent to  
            the inherent risks, pursuant to the above requirements, then  
            the participant, his/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,  
            are precluded from maintaining an action against, or recover  
            from, a space flight entity for a participant injury that  
            results from the risks associated with space flight  
            activities.  

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          6.Provides that a space flight entity remains subject to civil  
            liability if it:  

                 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; 

                 intentionally causes a participant injury; or 
                 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.   

          7.Specifies that the above provisions providing for the limited  
            immunity of space flight entities shall not 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.  

          8.Provides specified definitions for "participant," "participant  
            injury,"  "space flight activities" and "space flight entity."  
             Specifically, defines "space flight entity" to mean 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, as specified, including, but not  
            limited to, a safety approval and a payload determination. 

          This bill clarifies that the current waiver, approved by AB 2243  
          shall not be construed to be contrary to the public policy of  
          this state.

           Background
           
          In order to promote the emerging commercial space flight  
          industry, various states, including Colorado, Florida, Texas,  
          New Mexico, and Virginia, enacted space flight limited civil  
          liability laws to protect space flight companies from potential  
          lawsuits brought by private citizens who participate in space  
          flights.  In California, space flight liability legislation was  

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          first introduced in AB 2834 (Maze, 2007), but that bill was  
          never referred to a policy committee.  Then, last year, the  
          Legislature passed AB 2243 (Knight, Chapter 416, Statutes of  
          2012), providing limited immunity from civil liability for space  
          flight entities in order to encourage the development of the  
          space flight industry in California.  That bill, however, was  
          largely predicated on the assumption of risk doctrine and  
          incorporated requirements to ensure that the participant knew of  
          and knowingly consented to the risks of space flight.   
          Significantly, AB 2243 expressly stated that it would not limit  
          the liability of a manufacturer of a part or component used in  
          space flight activities if a defective part or component  
          proximately causes injury to the participant.  

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

           SUPPORT  :   (Verified  1/21/14)

          City of Lancaster
          City of Palmdale Commercial Spaceflight Federation
          Firestar Technologies, LLC
          Greater Antelope Valley Association of Realtors
          Mojave Air & Space Port
          SpaceX
          The Spaceship Company, LLC
          Virgin Galactic

           ARGUMENTS IN SUPPORT  :    According to the author, "[i]n order to  
          promote the emerging industry of private human space travel,  
          California needs to change current law to allow companies to  
          remain competitive with commercial spaceflight entities  
          nationwide.  Strengthening the waivers in California is one step  
          closer to providing suppliers and manufacturers protection in  
          the event something goes wrong and additionally, to ensure the  
          state's competitive marketplace."

          AL:d  1/22/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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