BILL ANALYSIS Ó
AB 737
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Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Jose Medina, Chair
AB 737 (Fox) - As Amended: April 3, 2013
SUBJECT : Governor's Office of Business and Economic Development:
unmanned aircraft systems: test sites
SUMMARY : Requires the Governor's Office of Business and Economic
Development (GO-Biz) to prepare and submit a proposal for an unmanned
aircraft test site to the Federal Aviation Administration (FAA) on or
before May 6, 2013. Specifically, this bill :
1)Finds and declares, among other things, that:
a) California has sustained significant jobs losses in the
aerospace manufacturing subsector with payrolls dropping 65.9%
between 1990 and 2012, as compared to 34.6% decrease in the rest
of the U.S. 2010 employment in the aerospace industry totaled
109,700 jobs paying $10.7 billion in wages.
b) Federal Aviation and the Modernization and Reform Act of 2012
calls for the designation of six test sites within the U.S. The
expanded use of unmanned vehicle systems has the potential of
creating 100,000 jobs.
c) California has the potential for a successful proposal based
in its highly developed aerospace industry, skilled workforce,
network of education and research institutions, and a tradition
of innovation and entrepreneurship. The development of a
coordinated proposal can only be achieved by bringing the
necessary stakeholders together.
2)Requires GO-Biz to prepare and submit a proposal by May 6, 2013 to
establish a FAA designation in California.
3)Authorizes GO-Biz to consult during its application preparation with
the Governor's State Military Council and other relevant entities
including, but not limited to: the Office of Planning and Research;
the Military Department; Department of Veteran's Affairs; Employment
Development Department; Department of Transportation;
representatives of the aerospace industry; all other applicants for
a California-based test site; local governments; and, education and
training entities.
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4)Requires GO-Biz to coordinate with any local government that submits
a proposal to establish a test site to the FAA.
5)Includes an urgency clause.
EXISTING LAW establishes GO-Biz within the Governor's Office for the
purpose of serving as the lead state entity for economic strategy and
marketing of California on issues relating to business development,
private sector investment, and economic growth. GO-Biz also serves as
the administrative oversight for the California Business Investment
Service and the Office of the Small Business Advocate.
FISCAL EFFECT : Unknown
COMMENTS :
1)Framing the Policy Issues : The FAA has announced the designation of
six national test sites for unmanned aircraft systems. Two,
potentially competing, applications have already been submitted. As
California is home to a large segment of the national aerospace
industry, a federal test site ensures the continued relevance of
this important industry sector in the state. Failing to receive a
designation would support the development of competing aerospace
innovation centers within the state.
This bill calls on GO-Biz, as the state's economic development
leader, to prepare and submit a third application which successfully
brings key stakeholders together and increases California's chances
in receiving one of the six test sites. The analysis provides
greater detail on the federal test site mandate and how unmanned
aircraft systems could affect the California economy.
2)Federal Aviation Administration Modernization and Reform Act of
2012 : On February 14, 2012, President Obama signed the Federal
Aviation Administration Modernization and Reform Act of 2012, which
mandates the integration of civil unmanned aircraft systems (UAS)
into the national airspace. Prior to this act, unmanned aircraft
systems were strictly regulated and effectively banned from civilian
usage.
The act mandates that six test sites be established in order to
develop and enhance the technologies needed to achieve a safe and
routine operation of civil unmanned aircraft systems in the national
airspace system. As described by the FAA, the purpose of the test
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site program is to:
a) Address both civil and public unmanned aircraft systems;
b) Designate safe airspace for integrated manned and unmanned
flight operations in the national airspace system;
c) Develop certification standards and air traffic requirements
for unmanned flight operations at test ranges;
d) Coordinate with and leverage the resources of the National
Aeronautics and Space Administration and the Department of
Defense;
e) Ensure that the program is coordinated with the Next
Generation Air Transportation System; and
f) Provide verification of the safety of unmanned aircraft
systems and related navigation procedures before integration into
the national airspace system.
The FAA has received 50 bids representing 38 states, including two
from California, for one of the six test site designations.
3)Testing Site Application Timeline : The application process is
composed of seven volumes regarding different requirements of the
application, with the last volume due on Monday, May 6, 2013.
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------------------------------------------------------------
| FAA Unmanned Aircraft Systems Testing Site Application |
| Schedule |
------------------------------------------------------------
|------------------------------+------------------------------|
| Scheduled Event | Date Due |
|------------------------------+------------------------------|
|Screening Information Request |Released Thursday, February |
|released by the FAA, |14, 2013 |
|outlining the testing site | |
|requirements and application | |
|process | |
|------------------------------+------------------------------|
|Volume I: Identification of |Due Wednesday, March 6, 2013 |
|Applicant | |
|------------------------------+------------------------------|
|Volume II: Screening |Due Thursday March 28, 2013 |
|Information Request | |
|Compliance | |
|------------------------------+------------------------------|
|Volume III: Ground |Due Thursday, April 11, 2013 |
|Infrastructure, Research | |
|Objectives and Airspace Use | |
|------------------------------+------------------------------|
|Volume IV: Safety |Due Thursday March 28, 2013 |
|------------------------------+------------------------------|
|Volume V: Experience |Due Thursday, March 28, 2013 |
|------------------------------+------------------------------|
|Volume VI: Risk Consideration |Due Thursday March 28, 2013 |
|- Planned Team Composition | |
|and Capability | |
|------------------------------+------------------------------|
|Volume VII - Economic Impact |Due Monday, May 6, 2013 |
|------------------------------+------------------------------|
|Release of FAA developed |Scheduled for Tuesday, June |
|privacy strategy |11, 2013 |
|------------------------------+------------------------------|
|Issuance of Other Transaction |Scheduled for Tuesday, |
|Agreements designating the 6 |December 31, 2013 |
|test site selections | |
-------------------------------------------------------------
4)Evolution of the Civilian UAS Market : While the military is at the
forefront of adopting drone technology, rapid enhancements in recent
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technology have brought to light the utility of civilian drone
usage. Important civilian applications for drones include:
---------------------------------------------------------------
| Wildfire mapping | Weather monitoring |
|-----------------------------+---------------------------------|
| Agricultural monitoring | Aerial imaging/mapping |
|-----------------------------+---------------------------------|
| Disaster management | Freight transportation |
|-----------------------------+---------------------------------|
| Thermal infrared power | Environmental monitoring |
| line surveys | |
|-----------------------------+---------------------------------|
| Law enforcement | Oil and gas exploration |
|-----------------------------+---------------------------------|
| Telecommunications | Television news coverage, |
| | sporting event coverage, |
| |moviemaking |
| | |
---------------------------------------------------------------
The primary market for civilian UAS usage is agricultural
monitoring. UAS technology is especially suited for precision
agriculture. A variety of imaging technologies can be used to scan
for plant health problems, track growth rates and hydration, and
detect pests. UAS technology can also be used for selective
application of pesticides, simultaneously increasing the efficiency
of pesticide usage and decreasing environmental impact. UAS
technology is already widely used in Japan.
Public safety will also be a significant market driver; however, the
agriculture market is estimated to be at least 10 times bigger than
the public safety market. These two market segments are estimated
to make up roughly 90% of future civilian UAS purchases.
1)Aerospace and the California Economy : California is the nation's
aerospace industry leader. In 2010, the aerospace manufacturing
industry was responsible for 109,700 jobs within California,
predominantly in Southern California, and paid wages totaling $10.7
billion annually. The aerospace industry has maintained a sizeable
presence within California, fueled by the presence of suppliers and
a pipeline of highly educated workers from in-state universities,
but over the last two decades this industry sector has experienced
significant sustained job loss.
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2)UAS Manufacturing and the California Economy : UAS integration into
the national airspace system is projected to begin in 2015.
According to a 2013 Economic Impact Report released by the
Association for Unmanned Vehicle Systems International, in the
decade following the integration date, the UAS industry will create
over 100,000 jobs and over $82 billion in total economic impact in
the U.S. California is projected to be the lead beneficiary of this
growth, projecting $14.3 billion in economic impact and the creation
of over 18,000 jobs.
3)Related Legislation : The following is a list of related legislation.
a) AB 1326 (Gorell and Bradford) Unmanned Aerial Vehicle
Manufacturing : This bill provides manufacturers in the unmanned
aerial vehicle industry (UAV) with 3 incentives: (1) an exemption
from the sales and use tax for manufacturing equipment; (2) a tax
credit for qualifying wages and new hires; and (3) an exemption
from the sales and use tax for construction of UAV manufacturing
facilities. Status: Scheduled to be heard by the Assembly
Committee on Revenue and Taxation on April 22, 2013.
b) AB 1327 (Gorell and Bradford) Privacy Rights: Unmanned Aerial
Vehicles : This bill bans all public agency UAV usage except for
searches supported by a warrant, existence of imminent threat to
public safety or other time-limited emergency situations,
geological inspections, inspection of state parks, traffic
investigation, and fire-related activities. Forbids private
parties from using UAV surveillance in secret, and provides a
cause of action for affected parties. Status: Referred to the
Assembly Committee on Public Safety, hearing date not yet set.
c) AJR 6 (Fox) Unmanned Aircraft Systems : This resolution calls
upon the Federal Aviation Administration to consider California
for 1 of the 6 planned test sites for the implementation of civil
unmanned aircraft systems into the national airspace system.
Status: Scheduled to be heard by the Assembly Committee on
Transportation on April 15, 2013.
d) SB 15 (Padilla) Aviation: Unmanned Aircraft Systems : This
bill states that it is the intention of the Legislature to
establish appropriate standards for the use of civil unmanned
aircraft systems that minimize and retain current privacy
standards. Status: Referred to the Senate Committee on Rules on
January 10, 2013.
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REGISTERED SUPPORT / OPPOSITION :
Support
City of Palmdale
Opposition
None received
Analysis Prepared by : Toni Symonds and Zachary Hutsell / J., E.D. &
E. / (916) 319-2090