BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2724| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2724 Author: Gatto (D) Amended: 8/2/16 in Senate Vote: 21 SENATE TRANS. & HOUSING COMMITTEE: 7-2, 6/21/16 AYES: Beall, Allen, Leyva, McGuire, Mendoza, Roth, Wieckowski NOES: Cannella, Bates NO VOTE RECORDED: Gaines, Galgiani SENATE JUDICIARY COMMITTEE: 5-2, 6/28/16 AYES: Jackson, Hertzberg, Leno, Monning, Wieckowski NOES: Moorlach, Anderson SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/8/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 54-17, 6/2/16 - See last page for vote SUBJECT: Unmanned aircraft SOURCE: Author DIGEST: This bill requires drone manufacturers to provide specific information to drone purchasers, requires drone operators to procure liability insurance by January 1, 2020, and requires specified drones to be equipped with technology which prevents the drone from entering any area prohibited by local, state, or federal law. ANALYSIS: Existing federal regulations: AB 2724 Page 2 1)Requires 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. 2)Requires recreational drone operators to notify airport operators and air traffic controllers if they are flying within five miles of an airport. 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 aircraft that are operated without the possibility of direct human intervention from within or on the aircraft. 2)Requires 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 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 AB 2724 Page 3 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)Drones. 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 one 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 firefighting 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)." (FAA Office of the Chief Counsel; "State and Local Regulation of Unmanned Aircraft Systems (UAS) Fact Sheet," December 17, 2015.) The safety of the public on the ground is also potentially at risk, as drones can crash, AB 2724 Page 4 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. 3)Current drone regulation. The FAA does not permit commercial drone operation except on a case-by-case basis. In February 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 not 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, AB 2724 Page 5 including the East Bay Regional Parks District and the City of Rancho Mirage, have enacted their own rules. Arizona recently enacted a law (SB 1499) making it illegal to operate a drone near law enforcement or emergency operations, or near critical facilities, such as dams, prisons, refineries, courts, and hospitals. 4)Fenced out. This bill requires drone operators to install software to prevent drones from flying in areas prohibited by local, state, or federal law 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 deemed off-limits. 5)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. 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 AB 2724 Page 6 jurisdictionally unclear area, neither clearly authorized nor clearly preempted. As noted above, the fuzzy jurisdictional lines have not prevented the City of Los Angeles, the Golden Gate Bridge Highway and Transportation District, the District of Columbia, and the state of Arizona from imposing their own rules. 6)Insurance. This bill requires drone operators to obtain adequate liability insurance by January 1, 2020, at levels determined by the Department of Transportation (Caltrans). FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, 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) SUPPORT: (Verified8/3/16) California Association of Highway Patrolmen Peace Officer Research Association of California San Diego International Airport OPPOSITION: (Verified8/3/16) American Insurance Association Association of California Insurance Companies Consumer Technology Association Independent Insurance Agents and Brokers of California AB 2724 Page 7 National Association of Mutual Insurance Companies Pacific Association of Domestic Insurance Companies Personal Insurance Federation ASSEMBLY FLOOR: 54-17, 6/2/16 AYES: Achadjian, Alejo, Atkins, Baker, Bloom, Bonta, Brown, Burke, Calderon, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lopez, Maienschein, McCarty, Medina, Melendez, Mullin, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Waldron, Weber, Wilk, Williams, Wood, Rendon NOES: Travis Allen, Arambula, Bigelow, Brough, Chávez, Dahle, Grove, Harper, Jones, Lackey, Levine, Mathis, Obernolte, Olsen, Patterson, Salas, Wagner NO VOTE RECORDED: Bonilla, Campos, Beth Gaines, Kim, Linder, Low, Mayes, Nazarian, Steinorth Prepared by:Randy Chinn / T. & H. / (916) 651-4121 8/10/16 15:58:35 **** END ****