BILL ANALYSIS Ó AB 2724 Page 1 GOVERNOR'S VETO AB 2724 (Gatto) As Enrolled September 9, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |54-17 |(June 2, 2016) |SENATE: |25-13 |(August 24, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |47-24 |(August 30, | | | | | | |2016) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 Page 2 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) AB 2724 Page 3 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 AB 2724 Page 4 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 Page 5