BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 868 (Jackson) - State Remote Piloted Aircraft Act
          
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          |Version: April 26, 2016         |Policy Vote: T. & H. 7 - 2,     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 16, 2016      |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  SB 868 would enact the State Remote Piloted Aircraft  
          Act to establish a regulatory framework for the operation of  
          unmanned aircraft in this state, and authorize the Department of  
          Transportation (Caltrans) to adopt rules and regulations  
          governing the conditions under which remote piloted aircraft  
          (drones) may operate.


          Fiscal  
          Impact:  
           Estimated Caltrans costs in the range of $150,000 to $200,000  
            to develop and adopt rules and regulations governing the  
            operation of drones in California, should the department  
            exercise this authority. (State Highway Account)

           Estimated ongoing costs, potentially in the range of $300,000  
            to $500,000, for additional staff to administer and oversee  







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            state functions related to drone operations, including  
            coordination with state, federal, local, and private entities,  
            conducting training activities, and updating rules and  
            regulations as necessary.  These costs could be higher to the  
            extent Caltrans exercises its authority to act as an  
            enforcement entity (including additional costs for personnel  
            to undergo specified peace officer training), or to  
            participate in specified legal actions that involve state  
            interests related to unmanned aircraft systems.  (State  
            Highway Account) 

           Estimated costs of up to $150,000 annually for additional  
            staff time at the Office of Emergency Services (OES) to  
            develop and adopt any necessary rules and regulations,  
            coordinate with federal and local agencies, and maintain a  
            dedicated web page and public communications capabilities.   
            (General Fund)

           Minor and absorbable costs to the Department of Parks and  
            Recreation (DPR) and the Department of Fish and Wildlife (DFW)  
            to manage enforcement and permitting issues regarding the  
            operation of drones within airspace over the state parks  
            system or the lands and waters managed by DFW, respectively.   
            (Special funds)


          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  








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          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.




          Proposed Law:  
            SB 868 would establish a regulatory framework for the  
          operation of unmanned aircraft systems within the state that  
          would further and protect the public interest in remote piloted  
          aircraft, as specified.  Specifically, this bill would:
           Specify that the State Remote Piloted Aircraft Act should not  
            be construed to limit any power of the state or political  
            subdivision, or preempt local ordinances to regulate drone  
            operations if the regulations or ordinances are consistent  
            with and not in conflict with the bill. 
           Prohibit a person from operating a drone in any of the  
            following circumstances:
               o      Within 500 feet of critical infrastructure  
                 designated by OES regulations, without first obtaining  
                 permission from the owner of that infrastructure.
               o      Within 1000 feet of a heliport without consent from  
                 the heliport owner, or without obtaining an FAA waiver,  
                 exemption, or other authorization.
               o      Within 5 miles of an airport without consent from  
                 the airport owner, or without obtaining an FAA waiver,  
                 exemption, or other authorization.








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               o      Within any other area that OES regulations determine  
                 that unrestricted drone use presents an imminent danger  
                 to public health and safety.
               o      Within airspace overlaying the state parks system  
                 without first obtaining a permit, as specified.
               o      Within the airspace overlaying lands or waters  
                 managed by DFW without first obtaining a permit, as  
                 specified.
               o      Within 500 feet of the State Capitol or other  
                 building housing state legislative offices and chambers  
                 without obtaining a permit from the California Highway  
                 Patrol, or FAA authorization, as specified.
           Authorize a person to operate a drone in any of the following  
            circumstances:
               o      In any airspace designated for taking off or landing  
                 at an airport or heliport when the operator is authorized  
                 and engaged in those activities.
               o      Upon or above any property to which the operator has  
                 a right of entry.
               o      Upon or above any property for which drone operation  
                 has been permitted by the California Film Commission, as  
                 specified.
               o      In any location or airspace deemed necessary by the  
                 operator to avoid imminent danger to the life and safety  
                 of a person or the general public.
           Prohibit a person from weaponizing a drone or operating a  
            weaponized drone.
           Prohibit a person from operating a drone in any a manner that  
            interferes with manned aircraft, is prohibited by federal  
            statutes or regulations, carelessly or recklessly endangers  
            life or property, constitutes a nuisance, violates privacy  
            rights, or constitutes trespass under state law.
           Prohibit a person from operating a drone without complying  
            with all FAA licensing, registration, and marking  
            requirements.
           Require Caltrans to establish the amount of liability  
            insurance or proof of financial responsibility necessary to  
            provide adequate compensation for damages incurred through a  
            commercial drone accident.
           Require every commercial drone operator, and persons using a  
            drone with a commercial operator's permission, to procure  
            adequate protection against liability, as specified.
           Authorize Caltrans to adopt rules and regulations governing  
            the conditions under which drones may be operated in the state  








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            for the purpose of protecting and ensuring general public  
            interest and safety and the safety of drone operators.
           Authorize Caltrans to make and amend any general or special  
            rules, orders, and procedures, and establish minimum standards  
            as deemed necessary.
           Require Caltrans to cooperate and assist the federal  
            government, political subdivisions of the state, and others in  
            the development of drone aeronautics.
           Require Caltrans to keep a copy of all rules and regulations  
            on file with the Secretary of State, and to provide for the  
            publication and general distribution of those items.
           Authorize OES to adopt rules and regulations, and make or  
            amend any general or special rules, orders, and procedures it  
            deems necessary to administer drone operations around critical  
            infrastructure.
           Require OES to coordinate activities with other public  
            entities and to keep a copy of all rules and regulations on  
            file with the Secretary of State, and to provide for the  
            publication and general distribution of those items.
           Authorize Caltrans to do any of the following:
               o      Represent the state in drone matters before federal  
                 and other agencies.
               o      Participate in specified legal proceedings on behalf  
                 of the state or any political subdivision or citizen that  
                 involves state interests in drone aeronautics.
               o      Assist political subdivisions and their law  
                 enforcement agencies in becoming acquainted with and  
                 enforcing Caltrans' regulations on drone operations.
               o      Enter into any contracts necessary for execution of  
                 its relevant powers.
               o      Exercise any powers relative to these provisions in  
                 cooperation with any political subdivision, state agency,  
                 other states, or the federal government.
               o      Enforce provisions of the bill and any relevant  
                 rules and orders, as specified.
           Specify that a violation of the bill's provisions is an  
            infraction punishable with a fine of up to $250, or a  
            misdemeanor punishable by imprisonment up to six months in a  
            county jail, or a fine of up to $1,000, or both.
           Authorize the Director of Caltrans to designate any officer or  
            employee of the department to exercise the powers of arrest to  
            enforce the bill's provisions.  Any persons designated by the  
            Director to enforce these provisions must successfully  
            complete a specified course in the exercise of powers of  








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            arrest.






          Related  
          Legislation:  SB 142 (Jackson), which was vetoed by the Governor  
          last year, would have designated the operation of a drone below  
          the navigable airspace overlying the property of another without  
          permission as trespassing.  The veto message states the  
          following:
               This bill would enact trespass liability for anyone flying  
               a drone less than 350 feet above real property without the  
               express permission of the property owner, whether or not  
               anyone's privacy was violated by the flight.  Drone  
               technology certainly raises novel issues that merit careful  
               examination. This bill, however, while well-intentioned,  
               could expose the occasional hobbyist and the FAA-approved  
               commercial user alike to burdensome litigation and new  
               causes of action.


          SB 170 (Gaines), which was vetoed by the Governor last year,  
          would have prohibited the operation of a drone over a state  
          prison or jail.  The veto message expressed a general objection  
          to the creation of new crimes.

          SB 271 (Gaines), which was vetoed by the Governor in 2015, would  
          have prohibited the operation of a drone over a K-12 school  
          campus or the taking of pictures by a drone of a K-12 campus  
          without permission.  The veto message expressed a general  
          objection to the creation of new crimes.

          AB 14 (Waldron), which failed passage in the Assembly  
          Transportation Committee in 2015, would have established a drone  
          task force to recommend policies regarding drone use. 


          Staff  
          Comments:  This bill authorizes, but does not require Caltrans  
          to adopt regulations and perform other regulatory and  
          enforcement functions related to the operations of drones in  








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          California.  It is unclear whether Caltrans will act to adopt  
          relevant regulations or exercise any of the other general powers  
          of authority specified in the bill.  It seems likely that  
          Caltrans would at least wait until the FAA completes its current  
          rulemaking regarding commercial drone operations before taking  
          any action to adopt its own rules and regulations, if it deems  
          such action necessary. 


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