BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 15 (Padilla) - Aviation: unmanned aircraft systems.
          
          Amended: April 22, 2013         Policy Vote: JUD 5-1, PS 6-1
          Urgency: No                     Mandate: Yes
          Hearing Date: May 13, 2103      Consultant: Jolie Onodera
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 15 would extend existing privacy standards to  
          the use of "unmanned aircraft systems," as defined.  
          Specifically, this bill:
              Requires law enforcement to obtain a search warrant to use  
              an unmanned aircraft system, as specified.
              Clarifies that a constructive invasion of privacy may occur  
              through the use of a device affixed to or contained within  
              an unmanned aircraft system.
              Provides that engaging in prohibited activities, such as  
              intentional eavesdropping or peeping, with devices or  
              instrumentalities affixed to or contained within an unmanned  
              aircraft system, is also prohibited. 
              Provides that an unmanned aircraft system may not be  
              equipped with a weapon.

          Fiscal Impact: 
               Potential minor future increased costs (General Fund*) to  
              the courts to the extent the provisions of this bill result  
              in increased civil and criminal filings. 
              Potential minor increase in felony convictions to state  
              prison for violations of the wobbler offense of  
              eavesdropping by means of a recording device. To the extent  
              more than one felony conviction occurs in any one year,  
              costs would be in excess of $50,000 (General Fund).
              Potential increase in local incarceration costs (Local) to  
              the extent additional misdemeanor convictions result from  
              the provisions of this bill. 
              Unknown costs associated with violations of the prohibition  
              against unmanned aircraft systems equipped with a weapon  
              (currently undefined).
              Non-reimbursable local enforcement costs, offset to a  
              degree by fine revenue.
             *Trial Court Trust Fund








          SB 15 (Padilla)
          Page 1



          Background: An unmanned aerial vehicle, or "drone," is an  
          aircraft without a human pilot that is either controlled  
          remotely or fully automated. The term "unmanned aircraft system"  
          includes the unmanned aircraft itself and associated elements  
          such as the components used to control the aircraft. The  
          Congressional Research Service report, Pilotless Drones:  
          Background and Considerations for Congress Regarding Unmanned  
          Aircraft Operations in the National Airspace System (September  
          2012), noted:

            Growing interest in the use of unmanned aerial vehicles  
            (UAVs), particularly for homeland security and law  
            enforcement applications, has spurred considerable debate  
            over how to accommodate these unmanned aircraft and keep  
            them safely separated from other air traffic. Additionally,  
            the use of these pilotless aircraft, popularly referred to  
            as drones, for aerial surveillance and law enforcement  
            purposes has raised specific concerns regarding privacy and  
            Fourth Amendment rights and potential intrusiveness. These  
            issues have come to the forefront in policy debate in  
            response to provisions in the FAA Modernization and Reform  
            Act of 2012 (P.L. 112-95) that require the Federal Aviation  
            Administration (FAA) to begin integrating unmanned aircraft  
            into the national airspace system by the end of FY2015. 

          In response to the anticipated increase in the use of drones in  
          California, this bill would update several civil and criminal  
          laws relating to privacy to expressly apply to drones.  

          Proposed Law: This bill would define "unmanned aircraft system"  
          as an unmanned aircraft and associated elements, including  
          communication links and the components that control the unmanned  
          aircraft that are required for the pilot in command to operate  
          the unmanned aircraft safely and efficiently within the national  
          airspace system. In addition, this bill:
              Requires law enforcement to obtain a search warrant to use  
              an unmanned aircraft system, as specified.
              Clarifies that a constructive invasion of privacy may occur  
              through the use of a device affixed to or contained within  
              an unmanned aircraft system.
              Provides that engaging in prohibited activities, such as  
              intentional eavesdropping or peeping, with devices or  
              instrumentalities affixed to or contained within an unmanned  








          SB 15 (Padilla)
          Page 2


              aircraft system, is also prohibited. 
              Provides that an unmanned aircraft system may not be  
              equipped with a weapon.

          Related Legislation: AB 1326 (Gorrell) 2013 establishes a sales  
          and use tax exemption for tangible personal property used in  
          unmanned aerial vehicle (UAV) manufacturing, and allows UAV  
          manufacturers an income tax credit based on qualified wages paid  
          to employees. This bill is pending in the Assembly Committee on  
          Revenue and Taxation.

          AB 1327 (Gorrell) 2013 would generally prohibit public agencies  
          from using unmanned aircraft systems, or contracting for the use  
          of unmanned aircraft systems, as specified. This bill is pending  
          in the Assembly Committee on Appropriations.

          AJR 6 (Fox) 2013 would urge the FAA to consider California as  
          one of the six test sites for unmanned aircraft systems and urge  
          integration of those systems into the next generation air  
          transportation system. This bill is pending in the Senate  
          Committee on Transportation and Housing.

          Staff Comments: Under existing law, a person who intentionally  
          eavesdrops on a confidential communication by means of any  
          electronic amplifying or recording device is guilty of an  
          alternate felony/misdemeanor, punishable as a felony by  
          imprisonment in state prison for 16 months, two, or three years,  
          or as a misdemeanor by imprisonment in a county jail for up to  
          one year, a fine not exceeding $2,500, or both. To the extent  
          adding the use of "drones" to commit this crime would be  
          considered an expansion of the scope of this crime, this bill  
          could result in increased state and local incarceration costs  
          related to violations of this section of law, resulting in costs  
          in the range of $28,000 to $60,000 (General Fund) for each  
          additional felony conviction.
          Under existing law, looking through a periscope, telescope,  
          binoculars, camera, motion picture camera, camcorder, or mobile  
          phone into the interior of a bedroom, or various other areas in  
          which an occupant has a reasonable expectation of privacy, with  
          the intent to invade the privacy of one or more persons inside,  
          is a misdemeanor. To the extent adding the use of "drones" to  
          commit these violations would be considered an expansion of the  
          scope of this crime, increased county jail incarceration costs,  
          as well as non-reimbursable local enforcement costs offset to a  








          SB 15 (Padilla)
          Page 3


          degree by fine revenue could result. 

          This bill provides that a drone may not be equipped with a  
          weapon. However, as currently drafted, there is no penalty  
          provision associated with a violation of this provision in order  
          to enforce this prohibition. In addition, there is not a  
          definition of "weapon" to clearly indicate under what  
          circumstances the prohibition would apply. The author has  
          indicated amendments are being drafted to address this issue, as  
          well as other concerns raised in policy committee hearings.