BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 2724|
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                                   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:








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          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  








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            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,  








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            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,  








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            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  








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            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 








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          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


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