Space industry liability bill clears Legislature

Legislation to limit the liability of spacecraft manufacturers and their suppliers is heading to the Republican governor, who is expected to sign it into law.

While the proposal was pending in the Legislature, the state had placed on hold its negotiations with space tourism company Virgin Galactic for a long-term lease at New Mexico's spaceport, which has cost taxpayers more than $200 million.

British billionaire Richard Branson's Virgin Galactic plans on flying tourists into space from the nearly complete spaceport in southern New Mexico.

Virgin Galactic, as a space travel operator, already is shielded under a 2010 law from being sued in most cases by passengers or their families if there is an accident during a flight.

The legislation will extend the liability limitations to suppliers and manufacturers of spacecraft and their components.

The restrictions on damage lawsuits will apply only to passengers — not to people and property on the ground.

Other states, including Florida, Texas and Colorado, have agreed to liability limits in hopes of developing commercial space travel industries.