BILL ANALYSIS Ó
AB 2724
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GOVERNOR'S VETO
AB
2724 (Gatto)
As Enrolled September 9, 2016
2/3 vote
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|ASSEMBLY: |54-17 |(June 2, 2016) |SENATE: |25-13 |(August 24, |
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|ASSEMBLY: |47-24 |(August 30, | | | |
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Original Committee Reference: P. & C.P.
SUMMARY: Requires unmanned aircraft system (UAS) makers to
provide safety and registration disclosures with the UAS at the
point of sale, requires certain UAS to be outfitted with a
"geofencing" feature that prevents operation within any area
prohibited by local, state, or federal law, and requires UAS
owners to have adequate liability insurance on January 1, 2020.
AB 2724
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The Senate amendments:
1)Specify that the safety and registration disclosures required
by the bill must include a link to the Federal Aviation
Administration (FAA) Web site containing the FAA safety
regulations or best practices applicable to UAS, instead of a
physical copy.
2)Specify that UAS with geofencing features are prohibited from
flying within any area prohibited by local, state, or federal
law, instead of within five miles of an airport.
3)Require the Department of Insurance, in consultation with the
Department of Transportation (Caltrans), to set the amount of
liability protection that is considered adequate under this
bill.
4)Limit the January 1, 2020, operative date of this bill to
apply only to the provision requiring adequate protection
against liability.
5)Make other technical and nonsubstantive changes to the bill.
EXISTING LAW:
1)Vests the FAA with the authority to regulate airspace use,
management and efficiency, air traffic control, safety,
navigational facilities, and aircraft noise. (49 United
States Code (U.S.C.) Sections 40103, 44502, and 44701-44735)
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2)Requires, under the FAA Modernization and Reform Act of 2012,
the FAA to safely integrate UAS operation into the national
airspace system by September 30, 2015, and to develop and
implement certification requirements for the operation of UAS
in the national airspace system. (Public Law Number 112-095)
3)Requires, under FAA rules, as of February 19, 2016, federal
registration of a UAS before first flight outdoors, for any
UAS weighing more than 0.55 pounds (250 grams) and less than
55 pounds (approximately 25 kilos), including payloads such as
on-board cameras, and requires UAS owners to be at least 13
years old to register and to provide name, home address, and
email address. Upon registration, UAS owners receive a
Certificate of Aircraft Registration/Proof of Ownership along
with a unique identification number, which must be marked or
affixed to the UAS. (14 Code of Federal Regulations (CFR)
Parts 1, 45, 47, 48, 91, and 375)
FISCAL EFFECT: According to the Senate Appropriations Committee
analysis of a prior version of this bill, unknown Caltrans
costs, potentially in the range of $150,000 over several fiscal
years, to the extent Caltrans adopts regulations to establish
liability insurance requirements. (State Highway Account or
Aeronautics Account)
COMMENTS: This bill requires drones equipped with GPS (global
positioning system) to also be equipped with geofencing
technology that would prevent their operation in prohibited
areas. It would also require, beginning January 1, 2020, that
drone operators have adequate protection against liability, with
the Department of Insurance being tasked with defining what
level of liability insurance would be "adequate".
Given the increase in the number of UAS and reports of crashes
and near misses, technology known as "geofencing" is being
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developed to prevent drones from flying into unauthorized areas.
Geofencing utilizes GPS and other technologies to impose
geographical limits on drone movement. With geofencing
technology installed, a drone will, by default, not fly into
geofenced areas; it will simply stop and hover at the boundary.
Geofencing technology has the potential to prevent drones from
flying into areas such as airport runways, government
properties, and in the vicinity of natural disasters.
GOVERNOR'S VETO MESSAGE:
I am returning Assembly Bill 2724 without my signature.
This bill mandates that drone hobbyists be covered by adequate
liability insurance when operating drones and requires drone
manufacturers to install "geo-fencing" software on drones that
are equipped with global positioning satellite technology.
This bill creates significant regulatory confusion by creating a
patchwork of federal, state, and local restrictions on airspace.
Moreover, the Federal Aviation Administration will likely
assert federal preemption on the bill's "geo-fencing"
requirements. I believe it's more prudent to explore a more
comprehensive approach that takes into account federal
regulations on this subject. Piecemeal is not the way to go.
Analysis Prepared by:
Jennie Bretschneider / P. & C.P. / (916)
319-2200
FN: 0005126
AB 2724
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