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  








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            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.








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          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  








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            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.  








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             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