Lawmakers announce deal on spaceport legislation

House and Senate leaders said the agreement was vital for developing a commercial space travel industry at a state-financed spaceport in southern New Mexico.

Virgin Galactic plans to fly tourists into outer space at $200,000-a-ticket from Spaceport America near the community of Truth or Consequences.

Current state law exempts Virgin Galactic from being sued for damages by passengers if there was an accident and they had been informed of the risks of space travel. However, that liability protection doesn't cover the suppliers and manufacturers of spacecraft parts and components.

Top House and Senate leaders said an agreement to limit the liability of parts suppliers was negotiated by trial lawyer representatives and officials of Virgin Galactic at the prodding of lawmakers. The talks have taken place for several months.

"Too much has been invested by both the state and Virgin Galactic to abandon this project," Senate Majority Leader Michael Sanchez, a Belen Democrat and lawyer, said in a statement. "It is in New Mexico's best interests that the spaceport project moves forward quickly, with as much consumer protection as possible."

Legislation that would have exempted parts suppliers and manufacturers from damage lawsuits has stalled in the Legislature for several years despite warnings from government and business officials that commercial space companies will likely go to other states such as Florida without a change in New Mexico's law.