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Associated Press
Virgin Galactic and others plan to launch spaceships from Spaceport America in Upham, N.M. The state has invested heavily in the private venture.

California vies for new space industry

– As several new private ventures to take people on trips to space come closer to becoming reality, California lawmakers are racing other states to woo the new space companies with cushy incentives.

They are debating a bill now in Sacramento that would insulate manufacturers of spaceships and parts suppliers from liability should travelers get injured or killed on a voyage, except in cases such as gross negligence or intentional wrongdoing. Last year, the state enacted a law that shields space tourism companies such as Sir Richard Branson’s Virgin Galactic from similar lawsuits.

“We’re still in the fledgling part of space flight and space travel, and we need people to be able to take a risk,” said California Republican Sen. Steve Knight, who introduced both state bills.

Several other states – including Texas, Florida, Virginia and New Mexico – have passed similar laws, hoping to lure newcomers to the more than $200 billion commercial space flight industry.

California’s latest bill faces opposition from several lawmakers who say the state should not relax its standards since tourists should expect the ships they use to ascend to the heavens are safe. But space tourism companies say the protection is necessary if the state wants to attract and retain the industry’s business.

“Someday, something is going to crash and burn,” said Kathleen Allen, a professor of entrepreneurship at the University of Southern California who researches and advises new space companies. “The question is: Are we going to be able to say that’s a price we pay to stretch and explore and go beyond our current limits?”

Regulatory and economic incentives play a big role in where companies choose to do business, said Andrew Nelson, the chief operating officer of XCOR, which is pursuing space tourism and hoping to conduct flight tests for its Lynx spaceship this year.

Last year, the company – which operates at Mojave Air and Spaceport in Southern California – announced it would place a research and development center and corporate headquarters in Midland, Texas, which offered economic incentives and an attractive regulatory environment, including shielding XCOR’s suppliers.

Nelson said the company passed over Virginia, Florida, Oklahoma and California. XCOR expects the facility will create jobs and boost the local economy by millions of dollars. He said since California doesn’t shield the company’s supply chain and could not offer economic incentives, XCOR ruled the state out despite its talented workforce.

In April, New Mexico enacted a law shielding parts suppliers and manufacturers of space transport companies from liability as an incentive for companies to launch spaceships from Spaceport America, which the state had already spent more than $200 million financing.

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