N.M. guv signs bill to aid spaceport

New Mexico Gov. Susana Martinez, to lure more New Mexico Gov. Susana Martinez, to lure more companies to Spaceport America, signed a liability-waiving measure. (Oct. 17, 2011) Photo Credit: Getty

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ALBUQUERQUE, N.M. -- Gov. Susana Martinez Tuesday signed liability-waiving legislation aimed at saving the state's $209-million investment in a futuristic spaceport and retaining its anchor tenant, British billionaire Richard Branson's Virgin Galactic.

Virgin Galactic and Spaceport America officials had been fighting for years to get the legislation enacted, saying commercial space companies have passed over New Mexico for states with more lenient liability exemptions. And Virgin hinted last year it might abandon plans to launch its $200,000 per-person space flights from New Mexico if the bill failed again this year.

In January, Virgin began paying its $1-million-a-year rent but told the state it was doing so only under protest and without making a commitment to some provisions of its long-term lease. And Virgin Galactic president and CEO George Whitesides last month said the company and the state still had a "laundry list" of issues to resolve.

He did not immediately respond to requests for comment about whether the company was now committed to the long term in New Mexico. But Spaceport America executive director Christine Anderson said she believed Virgin's issues with the state had been resolved.

"They are paying rent. They are happy with the building and they are proceeding with the fit-out," she said.

The legislation is intended to help the state attract more companies to the $209-million project in southern New Mexico by exempting spacecraft parts suppliers from liability lawsuits by passengers. Lawmakers had previously exempted spacecraft operators from liability, but some space companies began passing up Spaceport in favor of states that had extended those protections to suppliers.

Whitesides, in an interview last year, said it was "very concerning" that other space companies were not coming to the spaceport. The company, he said, signed up for a "healthy spaceport" with multiple businesses that could divide the costs. Whitesides said Virgin Galactic would work with lawmakers on the liability legislation and then re-evaluate.

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Other states such as Texas and Florida are developing spaceports. Most of them are revamping old airports or other facilities. New Mexico's is the first to be developed from scratch.

Anderson said Tuesday that she hoped the new law, as well as commercial tax breaks passed as part of a last-minute deal between the legislature and Martinez, will strengthen her recruitment efforts.

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