BILL ANALYSIS Ó AB 1327 Page 1 Date of Hearing: May 15, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1327 (Gorell) - As Amended: April 29, 2013 Policy Committee: Public SafetyVote: 4-2 Local Government 8-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill creates standards for the use of unmanned aerial systems (UAS) - drones - by state and local agencies. FISCAL EFFECT 1)While it is not clear whether and to what extent state agencies are planning to utilize drones in the near future, annual reports to the governor (and the bill should be amended to include the Legislature) from the many agencies that could use drones - Cal-Fire, CHP, Office of Emergency Services, Corrections, Caltrans, Food and Agriculture, Water Resources, Boating and Waterways, Fish and Wildlife, etc. - could cumulatively cost in the range of $200,000. 2)Requiring every public agency that intends to use UAS to provide notice to the public is a reimbursable state mandate that could easily exceed $150,000, given the thousands of local agencies, from local governments, to police departments, to water boards, to mosquito abatement districts. 3)Unknown, likely minor state trial court costs to the extent that new requirements regarding warrants and court orders occupy court time. For example, 100 hours of court time would create new costs of less than $50,000. 4)While it does not appear any local law enforcement agency is currently using drones, (several have investigated, purchased and proposed usage), creating prospective standards that restrict their uses, including making acquisition subject to a AB 1327 Page 2 vote of a city council or county board, and requiring destruction of data, could reduce law enforcement efficiency. The cost of such reduced efficiency is not quantifiable. SUMMARY CONTINUED Specifically, this bill: 1)Defines UAS as unmanned aircraft and associated elements, including communication links and components required to operate safely and efficiently in the national airspace system. 2)Provides a public agency shall not use UAS except as specified as follows: a) A law enforcement agency may use UAS if it has a reasonable expectation UAS will collect evidence relating to criminal activity and it has obtained a warrant based on probable cause. b) A law enforcement agency, without a warrant, may use UAS in emergency situations if there is an imminent threat to life. c) A law enforcement agency, without a warrant, may use UAS to help first responders in situations relating to traffic accidents or to inspect state parks for "illegal vegetation." d) A law enforcement agency may use UAS to block communication signals if it has obtained a court order, as specified. If a government entity determines an emergency situation exists that involves immediate threat of death, and there is insufficient time to obtain a court order, the government entity may interrupt communications, provided the interruption meets the grounds for a court order, and provided the entity applies for a court order without delay. e) A public agency other than a law enforcement agency may use UAS for geological inspections related to the mission of the agency or for the purpose of detecting oil spills. f) CAL-FIRE may use USA for fire-related activities. AB 1327 Page 3 3)Specifies data may not be disseminated outside the collecting agency or provided to a law enforcement agency unless the agency has obtained a warrant. 4)Specifies the acquisition of UAS is subject to the approval of the public agency's legislative body and subject to public disclosure requirements, as specified. 5)Requires a state agency that uses UAS to annually report to the Governor, as specified. 6)Specifies data obtained by a public agency via UAS may not be shared outside the agency and may not be used for a purpose other than that for which it was collected. UAS-obtained data must be destroyed within 10 days, unless retained for training purposes or per a warrant. 7)Prohibits arming UAS. 8)Specifies that this bill is not intended to conflict with or supersede federal law, including rules and regulations of the Federal Aviation Administration, and that nothing in this bill prohibits a local agency from adopting more restrictive policies on UAS. COMMENTS 1)Rationale . The author asserts that the UAS market and utilization of drones is about to take off and that scores of issues surrounding the use of UAS need to be addressed. According to the author, "While the potential benefits of UAVs in our communities and state can be tremendous, there are privacy concerns that must be acknowledged and addressed. AB 1327 establishes boundaries and restrictions that protect the privacy rights of Californians. When used responsibly, UAVs can benefit a number of industries, some of which already use various forms of UAVs. This legislation allows governmental entities to use drones in non-intrusive ways, including agricultural purposes, traffic accident investigation, detection of oil spills, fire prevention, and search and rescue operations. Due to the uncharted territory that will be created by the significant increase of UAVs in the intermediate future, this bill provides protections of the freedoms guaranteed by the Constitution (4th amendment) and AB 1327 Page 4 anticipates the potential privacy vulnerabilities that can surface due to the continual advancement of UAV technology." 2)Some 85 drone bills introduced in 39 states this year, according to a May 7 report in Politico. "Legislators who fear the "surveillance state" are seeking to limit the use of the unmanned, unarmed aircraft in the name of privacy rights, clashing with police and industry organizations that argue the efforts unfairly stigmatize a still-developing, widely misunderstood and potentially useful technology that has an unfortunate link to the killing of terrorists in faraway deserts." 3)Opposition . According to the California State Sheriffs' Association, "While we understand the privacy concerns that may arise from the misuse of unmanned aircraft, we believe that it is inappropriate to impose requirements beyond what is necessary under the Fourth Amendment of the United States Constitution to protect against unreasonable searches. "In addition, AB 1327 would also require law enforcement to destroy information within 10 days of it being obtained by an UAS. Unfortunately, criminal investigations do not neatly fall into timelines. We recognize the desire to protect and keep this data private, but the requirement to purge the data after 10 days will severely hamper investigations for law enforcement. "Finally, this measure seeks to require local legislative approval for law enforcement to purchase or to enter a contract for an UAS. There is no reason why the purchase of such equipment should differ from any other purchase and approval process by individual counties and law enforcement agencies." The American Civil Liberties Union has withdrawn its opposition per the latest amendments. 4)Related Legislation . a) AB 737 (Fox) requires the Governor's Office of Business and Economic Development to prepare and submit a proposal for an unmanned aircraft test site to the FAA on or before May 6, 2013. AB 737 is pending policy hearing in the Senate. AB 1327 Page 5 b) AB 1326 (Gorell) establishes a sales tax exemption for tangible personal property used in UAS manufacturing, and allows UAS manufacturers an income tax credit. AB 1326 is pending in the Assembly Revenue and Taxation Committee; c) SB 15 (Padilla) states a constructive invasion of privacy may occur through the use of a device contained within UAS; amends criminal prohibitions relating to eavesdropping and privacy to include the use of devices affixed to or contained within UAS; prohibits UAS from being equipped with a weapon; requires a search warrant, as specified. SB 15 is pending in Senate Appropriations. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081