BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 737
                                                                  Page  1

           Date of Hearing:   April 10, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      AB 737 (Fox) - As Amended:  April 3, 2013 

          Policy Committee:                              JEDE Vote:6-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Governor's Office of Business and  
          Economic Development (GO-Biz) to prepare and submit an unmanned  
          aircraft test site application to the Federal Aviation  
          Administration (FAA) on or before May 6, 2013.  Specifically,  
          this bill:  

          1)Authorizes GO-Biz to consult during its application  
            preparation and implementation with the Governor's State  
            Military Council and other relevant departments and private  
            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.

          2)Requires GO-Biz to coordinate with any local government that  
            submits a proposal to the FAA for a test site.

           FISCAL EFFECT  

          Absorbable costs for GO-Biz.

           COMMENTS  

           1)Background.   The FAA has announced the designation of six  
            national test sites for unmanned aircraft systems (UAS).  Two,  
            potentially competing, applications have already been  
            submitted by groups for airports in Ventura County and Kern  
            County.  Currently, GO-Biz is working with these two entities  
            to improve California's chances to be successful in the  








                                                                  AB 737
                                                                  Page  2

            application process.  The bill appears to require a third  
            application.
             
             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.

           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 UAS into the  
            national airspace systems.  Prior to this act, unmanned  
            aircraft systems were strictly regulated and effectively  
            banned from civilian usage.  

            The act requires FAA to establish six test sites to develop  
            and enhance the technologies needed for routine operation of  
            civil unmanned aircraft systems.  The application process is  
            composed of seven volumes, with each volume addressing  
            different applications requirements.  The final volume,  
            "Economic Impact" is due on Monday, May 6th, 2013.  The  
            deadlines for the previous six volumes have already passed.

           3)Related legislation.
           
             a)   AB 1326 (Gorell and Bradford) provides manufacturers in  
               the unmanned aerial vehicle industry with specifies sales  
               and use tax exemptions and income tax credits.  This bill  
               is in the Assembly Committee on Revenue and Taxation.

             b)   AB 1327 (Gorell and Bradford) restricts all public  
               agency UAV usage to specified activities and generally  
               forbids private parties from using UAV for surveillance.   
               This bill is in the Assembly Committee on Public Safety.     


             c)   AJR 6 (Fox) calls upon the FAA to consider California  
               for one of the six planned test sites for the  
               implementation of civil unmanned aircraft systems into the  








                                                                  AB 737
                                                                  Page  3

               national airspace system. This resolution is in the  
               Assembly Committee on Transportation.

             d)   SB 15 (Padilla) states the intention of the Legislature  
               to establish appropriate standards for the use of civil  
               unmanned aircraft systems that minimize and retain current  
               privacy standards.  This bill is in the Senate Committee on  
               Judiciary.
             
          4)There is no registered opposition to this bill.
           

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081