BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2724           Hearing Date:    6/21/2016
           ----------------------------------------------------------------- 
          |Author:   |Gatto                                                 |
          |----------+------------------------------------------------------|
          |Version:  |6/1/2016                                              |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:  |No                     |Fiscal:      |No              |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Randy Chinn                                           |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          

          SUBJECT:  Unmanned aircraft


            DIGEST:  This bill requires: 

          1)Specific information about federal flight regulations to be  
            provided to purchasers of drones 


          2)Drone operators to procure adequate protection against  
            liability 


          3)Certain drones to be equipped with technology to avoid flying  
            within five miles of an airport

          These provisions become operative on January 1, 2020.

          ANALYSIS:
          
          Existing federal regulations require all drone owners to  
          register their drones weighing more than 250 grams, about  
          one-half pound, with the Federal Aviation Administration (FAA).   
          Commercial drone operators, but not recreational drone  
          operators, must also obtain FAA authorization, which is granted  
          on a case-by-case basis.  

          Existing federal regulations require recreational drone  
          operators to notify airport operators and air traffic  
          controllers if they are flying within five miles of an airport.   








          AB 2724 (Gatto)                                       PageB of?
          
          Moreover, these drones are prohibited in certain areas, known as  
          Class B airspace, around major airports without specific  
          permission.

          This bill:

          1)Defines "unmanned aircraft" (e.g., drones) as an aircraft that  
            is operated without the possibility of direct human  
            intervention from within or on the aircraft.
          2)Requires, by January 1, 2020, drone manufacturers to include  
            with the drone a copy of the FAA drone safety regulations and  
            the requirement to register the drone, if applicable.

          3)Requires, by January 1, 2020, that drones equipped with global  
            positioning satellite (GPS) mapping capabilities shall also be  
            equipped with geofencing technological capabilities that  
            prohibit the drone from flying within five miles of an  
            airport.

          4)Requires, by January 1, 2020, that all non-commercial owners  
            of drones procure adequate protection against liability for  
            damages for bodily injury and to property.

          COMMENTS:

          1)Purpose.  According to the author, rapid advances in  
            technology have enabled drone manufacturers to transform  
            drones from weapons of war to everyday toys and tools.   
            Unfortunately, the growing number of amateur enthusiasts who  
            are beginning to take to the skies as the technology becomes  
            both cheaper and more widely available present ever more  
            frequent opportunities for accidents and injuries. Accidents  
            are on the rise and the potential for more catastrophic  
            accidents is looming, according to the author.  Geofencing  
            uses GPS and other technologies to impose geographical limits  
            on drone movement.  The technology has the potential to  
            prevent drones from flying into areas such as airport runways,  
            government properties, and in the vicinity of natural  
            disasters.

          2)Drafting error.  The author's office notes an error in the  
            bill.  The bill provides for implementation on January 1,  
            2020.  However, the author intends for the delayed  
            implementation to apply only to the insurance requirement.   
            The comments below are based on correcting that error.









          AB 2724 (Gatto)                                       PageC of?
          

          3)Background.  Moving beyond hobbyists and the military, drones  
            are increasingly a part of commercial and recreational  
            activities.  In fields as diverse as agriculture, filmmaking,  
            electric utility service, and public safety, drones can  
            monitor, track, and provide surveillance in many useful and  
            previously undoable ways.  Amazon and Google are experimenting  
            with using drones to speed package delivery.  Drones have  
            become easier to use and have become less costly.  This has  
            caused drone sales to take off, so to speak.  The FAA  
            estimated that 1 million drones would be sold during the 2015  
            Christmas season.  According to the retail research firm NPD,  
            drone sales tripled from April 2015 to April 2016.

            Drone technology is improving quickly.  They are getting  
            smaller, faster, cheaper, and easier to fly, as well as having  
            greater range and improved photographic and video  
            capabilities.  

            Drones will play an increasingly visible role in our future.   
            They will be used by many businesses and government entities  
            to do their jobs better and more efficiently, and they'll be  
            used by our friends and neighbors for recreation.  

            The remarkable growth in drone usage creates issues.  Foremost  
            is public safety, as drones can imperil aircraft, as recent  
            incidents with commercial aviation and forest fire-fighting  
            aircraft demonstrate.  The FAA has noted that, "Incidents  
            involving unauthorized and unsafe use of small,  
            remote-controlled aircraft have risen dramatically.  Pilot  
            reports of interactions with suspected unmanned aircraft have  
            increased from 238 sightings in all of 2014 to 780 through  
            August of this year (2015)."<1>  The safety of the public on  
            the ground is also potentially at risk, as drones can crash,  
            be mispiloted, or simply malfunction.  Drones can also be used  
            for harmful purposes, as in the case of transporting  
            contraband into prisons or as a means for conveying explosives  
            or other dangerous materials.  And there are the more  
            conventional concerns about privacy and nuisance behavior.

          4)Current drone regulation.  The FAA does not permit commercial  
            drone operation except on a case-by-case basis.  In February  

          ---------------------------
          <1> FAA Office of the Chief Counsel; "State and Local Regulation  
          of Unmanned Aircraft systems (UAS) Fact Sheet"; December 17,  
          2015.








          AB 2724 (Gatto)                                       PageD of?
          
            2015, the FAA proposed regulations on commercial drone users.   
            Among the proposals was a 55-pound weight limitation,  
            line-of-sight operation, maximum airspeed of 100 mph, a ban on  
            operation over any people, a maximum operating altitude of 500  
            feet, and training and licensing for the operator.  Those  
            rules have not been finalized but are expected this year.  As  
            input to those rules, in April the FAA received a report from  
            its Micro Unmanned Aircraft Systems Aviation Rulemaking  
            Committee with recommendations for rules governing the  
            operation of drones above people.  That panel, composed  
            primarily of aviation industry representatives, recommended  
            that drones weighing less than 250 grams, about one-half  
            pound, can operate without restriction, but that other drones  
            could operate over people depending on the level of risk of  
            injury posed.  

            In December 2015, the FAA required commercial and recreational  
            drone users to register their drones if they weigh more than  
            250 grams.  Recent reports indicate that 460,000 drone users  
            have registered, with many users likely to have more than one  
            drone, exceeding the number of registered airplanes and  
            helicopters. (Baltimore Sun, "Small Drones in Maryland,  
            Nation, Outnumber Other Kinds of Aircraft," May 31, 2016.)

            Several California local governments have enacted their own  
            drone regulations.  In October 2015, the City of Los Angeles  
            enacted drone regulations similar to the FAA proposal.  In  
            December, the city filed the first criminal charges under the  
            ordinance, citing two individuals for operating a drone which  
            interfered with a Los Angeles Police Department air unit,  
            causing it to change its landing path.  In northern  
            California, the Golden Gate Bridge Highway and Transportation  
            District banned drones near the Golden Gate Bridge after a  
            drone crashed on the roadway.  Other California jurisdictions,  
            including the East Bay Regional Parks District and the City of  
            Rancho Mirage, have enacted their own rules.

          5)Fenced out.  This bill requires drone operators to install  
            software to prevent drones from flying within five miles of an  
            airport if the drone is equipped with GPS mapping  
            capabilities.  This technology is not new; several major drone  
            manufacturers installed such software in their higher-end  
            drones beginning last year to prevent them from flying over  
            restricted areas of Washington, D.C.  This technology could be  
            used to prevent drones from flying over other areas which are  









          AB 2724 (Gatto)                                       PageE of?
          
            deemed off-limits.  SB 868 identified several which should be  
            drone-free, such as the state Capitol, state parks, and  
            sensitive infrastructure such as power plants.  The author  
            should consider expanding this provision to require the  
            technology to prevent drones from flying not just near  
            airports but to also include anywhere they are prohibited by  
            law.  The author may also wish to consider removing the  
            prohibition on flying within five miles of an airport.   
            Federal regulations only require notification for flights  
            within five miles of an airport.  The prohibited space is a  
            smaller diameter at ground level, which expands at higher  
            heights, and would be covered in the more general prohibition  
            against flying where it is prohibited by law.

            This bill requires geofencing only for drones equipped with  
            GPS mapping capabilities.  Given the rapidly advancing  
            technology, it may be appropriate to consider requiring all  
            drones subject to registration to be equipped with GPS mapping  
            capabilities, just as cars are required to have certain  
            minimum safety features such as seat belts, airbags, and  
            antilock brakes.  While this would not apply to the smaller  
            consumer-market drones which have also have photographic and  
            video capability, it would help with the bigger commercial  
            market drones which have the potential to do more damage to  
            people, aircraft, and property.

          6)Jurisdiction.  The dividing line between state and federal  
            jurisdiction of drones is fuzzy.  The most recent and directly  
            relevant guidance is perhaps the December 17, 2015, fact sheet  
            issued by the FAA's Office of the Chief Counsel, cited above.   
            It notes that "a navigable airspace free from inconsistent  
            state and local restrictions is essential to the maintenance  
            of a safe and sound air transportation system."  Quoting the  
            fact sheet, "Laws traditionally related to state and local  
            police power - including land use, zoning, privacy, trespass,  
            and law enforcement operations - generally are not subject to  
            federal regulation."  Cited examples include prohibiting  
            drones from being used for voyeurism, prohibitions on using  
            drones for hunting or fishing, and prohibitions on attaching  
            weapons to drones.

            The fact sheet notes that mandating equipment or training for  
            drones related to aviation safety would likely be preempted by  
            federal law.  State drone registration requirements are  
            barred.









          AB 2724 (Gatto)                                       PageF of?
          

            Other areas are less clear.  Operational restrictions on  
            drones, including altitude and flight paths, operational bans,  
            and any regulations of navigable airspace are areas where  
            consultation with the FAA is recommended by the fact sheet.   
            Many of the provisions of this bill create no-fly zones and  
            impose operational restrictions, which fall into this  
            jurisdictionally unclear area, neither clearly authorized nor  
            clearly preempted.

            As noted above, the fuzzy jurisdictional lines have not  
            prevented the City of Los Angeles and the Golden Gate Bridge  
            Highway and Transportation District from imposing their own  
            rules.

          7)Insurance.  This bill requires drone operators to obtain  
            adequate liability insurance, similar to SB 868 (Jackson).   
            However, there is no direction as to how to determine  
            adequacy.  The author may wish to consider specifying that the  
            Department of Transportation shall determine adequate  
            insurance levels, as is done in SB 868.

          8)Harmony.  This bill and SB 868 (Jackson) both deal with the  
            safe operation of drones.  While there is no direct conflict,  
            the authors should consider amending the bills to harmonize  
            their provisions by using the same terminology, enforcement  
            provisions, and definitions.

          9)Double-referral.  This bill has been double referred to the  
            Judiciary Committee.  Given the short timeframe between  
            hearings, any amendments agreed to in this committee will have  
            to be adopted in the Judiciary Committee.

          Related Legislation:
          
          SB 868 (Jackson) - proposes the State Remote Piloted Aircraft  
          Act containing numerous provisions regulating the use of drones.  
           SB 868 is pending before the Assembly Privacy and Consumer  
          Protection Committee.

          AB 856 (Calderon, Chapter 521, Statutes of 2015) - expanded the  
          scope of the cause of action in existing law for physical  
          invasion of privacy by making a person liable for physical  
          invasion of privacy when the person knowingly enters "into the  
          airspace" above the land of another person without permission.









          AB 2724 (Gatto)                                       PageG of?
          

          Assembly Votes

            Floor:    54-17
            P&CP:     10-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  No    Local:  
           No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 15, 2016.)
          
            SUPPORT:  
          Peace Officer Research Association of California
          San Diego International Airport

          OPPOSITION:

          Consumer Technology Association
          ACIC (prior version)
          American Insurance Association (prior version)
          Independent Insurance Agents and Brokers of California (prior  
          version)
          National Association of Mutual Insurance Companies (prior  
          version)
          Pacific Association of Domestic Insurance Companies (prior  
          version)
          Personal Insurance Federation (prior version)




                                      -- END --