BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2724 (Gatto) - Unmanned aircraft
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|Version: August 2, 2016 |Policy Vote: T. & H. 7 - 2, |
| | JUD. 5 - 2 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 8, 2016 |Consultant: Mark McKenzie |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 2724 would: (1) require a manufacturer of unmanned
aircraft (drones) to provide information about federal
regulations and registration requirements to purchasers of
drones; (2) require certain drones to be equipped with
geofencing technology that prevents operation in prohibited
areas, as specified; and (3) require drone owners to procure
adequate protection against liability, the amount of which would
be determined by the Department of Transportation (Caltrans).
Fiscal
Impact:
Unknown Caltrans costs, potentially in the range of $150,000
over several fiscal years, to the extent the department adopts
regulations to establish liability insurance requirements.
(State Highway Account or Aeronautics Account) ---see staff
AB 2724 (Gatto) Page 1 of
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comments---
Background: Existing federal regulations require all commercial and
recreational drone owners to register unmanned piloted aircraft
with the Federal Aviation Administration (FAA). In 2012,
Congress passed the FAA Modernization and Reform Act of 2012
(Act). The Act required the FAA to establish a framework for
safely integrating unmanned aircraft systems into the national
airspace no later than September 30, 2015, and authorized the
FAA to establish interim requirements for the commercial
operation of drones. Under the interim rules, drone operators
must meet certain standards and apply for a commercial use
exemption and an FAA Certificate of Authorization (COA) in order
to operate in in "navigable airspace," which is generally above
500 feet. In addition, the Act also provides that certain small
drones (model, hobby, or recreational use aircraft) that are
operated away from airports and air traffic and near the ground
level are exempt from federal regulation, if they are flown for
exclusively recreational, non-commercial purposes. The FAA has
proposed a framework of regulations for the operation of small
unmanned aircraft systems for non-recreational purposes. The
proposed commercial regulations include a 55-pound weight
limitation, line-of-sight operation, a 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. Final rules are expected to be adopted later this
year.
Several local agencies, such as the City of Los Angeles and the
Golden Gate Bridge, Highway, and Transportation District, have
also established drone regulations within their jurisdictions.
Existing state law establishes a Division of Aeronautics within
Caltrans to foster and promote safety in aeronautics and
establish only those regulations that are necessary so that
persons may engage in aeronautics with the least possible
restriction consistent with the safety and rights of others.
The Division of Aeronautics is primarily involved in the siting,
planning, and inspection of public-use airports in the state.
AB 2724 (Gatto) Page 2 of
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Proposed Law:
AB 2724 would enact the Drone Registration Omnibus Negligence
Prevention Enhancement (DRONE) Act. Specifically, this bill
would:
Define "unmanned aircraft" as an aircraft that is operated
without the possibility of direct human intervention from
within or on the aircraft.
Require manufacturers of drones for sale in California to
provide the following with the drone:
o A copy of the FAA safety regulations applicable to
drones.
o A notification of registration requirements, if
registration is required for the drone.
Require a drone equipped with global positioning system (GPS)
capabilities to also be equipped with geofencing technological
capabilities that prohibit the drone from being operated in
any area prohibited by local, state, or federal law.
Require drone owners to procure adequate protection against
liability, as specified.
Require Caltrans to set the amount of liability protection
that is adequate.
Specify that liability requirements would be operative on
January 1, 2020.
Specify that the bill's requirements do not apply to drones
operated pursuant to a current commercial operator exemption
issued pursuant to federal regulations or FAA authorizations.
Related
Legislation: SB 868 (Jackson) would enact the State Remote
Piloted Aircraft Act to establish a regulatory framework for the
operation of unmanned aircraft in this state, and authorize
Caltrans to adopt rules and regulations governing the conditions
under which drones may operate. That bill failed passage in the
Assembly Privacy and Consumer Protection Committee this year.
Staff
Comments: The bill was amended recently to require Caltrans to
establish the amount of liability protection that is adequate
for drone operators. Caltrans does not currently possess staff
expertise in the area of liability insurance, and it is unclear
how Caltrans would determine what level of liability protection
is adequate for drone operation. Staff estimates costs could be
AB 2724 (Gatto) Page 3 of
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minor for Caltrans to simply consult with other state entities
that may possess this expertise, such as the Department of
Insurance (DOI), or to potentially enter into an interagency
agreement with DOI to establish appropriate parameters for
establishing adequate liability protection. To the extent
Caltrans determines that a regulatory process is required, staff
estimates that costs could be in the range of $50,000 to $75,000
per year over two years.
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