BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 21, 2016


                ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION


                                   Ed Chau, Chair


          SB  
          868 (Jackson) - As Amended May 31, 2016


          SENATE VOTE:  25-12


          SUBJECT:  State Remote Piloted Aircraft Act


          SUMMARY:  Establishes the State Remote Piloted Aircraft Act,  
          which governs where and how unmanned aircraft systems (UAS) may  
          operate, and establishes state-level regulatory and enforcement  
          authority over UAS for the California Department of  
          Transportation (Caltrans), the California Office of Emergency  
          Services (OES), the California Department of Fish and Wildlife,  
          the California Department of Parks and Recreation, and the  
          California Highway Patrol (CHP).  Specifically, this bill:  


           1) Prohibits the operation of a UAS in the following  
             circumstances, as specified:


              a)    Within 500 feet of critical infrastructure, as  
                designated by Caltrans in consultation with OES, without  
                first obtaining the consent of the owner or operator of  
                the critical infrastructure, unless:










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                  i)        the Federal Aviation Administration (FAA) has  
                    authorized by permit, license, or rule the UAS  
                    operator for a commercial purpose and the UAS operator  
                    complies with the authorization; or


                  ii)       the UAS operator is a journalist acting under  
                    the California Shield Law, which provides protections  
                    to journalists seeking to maintain the confidentiality  
                    of an unnamed source, and the operator does not  
                    unreasonably interfere with or pose an imminent and  
                    credible threat to the safety or security of the  
                    critical infrastructure;


              b)    Within 1,000 feet of a heliport, without first  
                obtaining consent of the owner or operator of the  
                heliport, or without first obtaining a waiver, exemption,  
                or other authorization, whether by permit, license or  
                rule, for its operation from the FAA;


              c)    Within five miles of an airport, without first  
                obtaining consent of the owner or operator of the airport,  
                or without first obtaining a waiver, exemption, or other  
                authorization, whether by permit, license or rule, for its  
                operation from the FAA;


              d)    Within any other area where Caltrans, in consultation  
                with OES, determines that unrestricted use of UAS presents  
                an imminent danger to public health and safety;


              e)    Within the airspace of the state park system, without  
                first obtaining a permit authorizing UAS use, or the unit  
                of the state park system being overflown has, by rule or  
                regulation, authorized the launching, landing, or  
                operation of UAS;








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              f)    Within the airspace of lands or waters managed by the  
                Department of Fish and Wildlife, without first obtaining a  
                permit authorizing UAS use or the Department has, by rule  
                or regulation, authorized the launching, landing, or  
                operation of UAS over those lands or waters; and


              g)    Within 500 feet of the State Capitol or other building  
                housing state legislative offices and chambers, unless the  
                operator has obtained a permit or the CHP has, by rule or  
                regulation, authorized the launching, landing, or  
                operation of UAS within 500 feet of the building, unless:


                  i)        the Federal Aviation Administration (FAA) has  
                    authorized by permit, license, or rule the UAS  
                    operator for a commercial purpose and the UAS operator  
                    complies with the authorization; or


                  ii)       the UAS operator is a journalist acting under  
                    the California Shield Law, which provides protections  
                    to journalists seeking to maintain the confidentiality  
                    of an unnamed source, and the operator does not  
                    unreasonably interfere with or pose an imminent and  
                    credible threat to the safety or security of the State  
                    Capitol.


           1) Notwithstanding the above provisions, this bill authorizes  
             UAS operation:


              a)    In any airspace designated for the taking off or  
                landing of aircraft at an airport or heliport when the UAS  
                operator is both authorized to and engaged in taking off  
                from or landing at that airport or heliport;








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              b)    Upon or above any property to which the UAS operator  
                has a right of entry;


              c)    Above property for which the UAS operator has received  
                a permit from the California Film Commission provided that  
                the UAS operator adheres to all terms and conditions  
                specified in the permit; and


              d)    In any airspace deemed necessary by the operator to  
                avoid imminent danger to the life and safety of another  
                person or the public.


           1) Prohibits the weaponization of UAS and the operation of a  
             weaponized UAS.


           2) Prohibits the operation of a UAS in a manner that:


              a)    Interferes with manned aircraft;


              b)    Is prohibited by federal statute or regulation;


              c)    Is careless or reckless that endangers life or  
                property;


              d)    Constitutes a nuisance, as specified;


              e)    Violates an individual's right to privacy under the  
                California Constitution; and








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              f)    Constitutes trespass under California law.


           1) Requires that UAS must always give way to manned aircraft.


           2) Prohibits the knowing and intentional operation of a UAS,  
             without authorization, in a manner that interferes with the  
             safe operation of amusement parks or ski resorts, as defined.


           3) Requires UAS operators to first comply with all licensing,  
             registration and marking requirements required by the FAA.


           4) Requires every commercial UAS operator and any person using  
             a UAS with permission from a commercial UAS operator to  
             maintain adequate protection against liability for payment of  
             damages for personal bodily injury, including death, and  
             property damage as a result of a UAS accident. 


           5) Requires Caltrans to establish, after a public hearing, the  
             amount of liability insurance reasonably necessary to  
             adequately compensate for damages incurred through a  
             commercial UAS accident. 


           6) Authorizes Caltrans to develop and publicly disclose rules  
             and regulations to govern the conditions under which UAS may  
             be operated for the purpose of protecting the public interest  
             and safety and the safety of UAS operators, and authorizes  
             Caltrans to make and amend general or special rules, orders,  
             and procedures and to establish minimum standards consistent  
             with this bill as needed.  

           7) Requires Caltrans to cooperate with and assist the federal  








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             government, political subdivisions of the state, and others  
             in the development of UAS aeronautics in developing rules and  
             regulations.

           8) Authorizes Caltrans to: 

              a)    Represent the state in UAS matters before federal and  
                other agencies;

              b)    Participate as plaintiff, defendant or intervenor on  
                behalf of the state or any political subdivision or  
                citizen in any controversy that involves the state's  
                interest in UAS aeronautics;

              c)    Assist political subdivisions and their law  
                enforcement agencies in learning and enforcing the  
                Caltrans regulations to be developed under this bill; 

              d)    Enter into any contracts necessary to the execution of  
                Caltrans's powers under this bill; and

              e)    Exercise any of its powers under this bill in  
                cooperation with any political subdivision, state agency,  
                other states or their political subdivisions, or the  
                United States; and

              f)    Enforce the provisions of this bill and the rules and  
                orders Caltrans issues under this bill by injunction or  
                other legal process in federal, state, and local courts or  
                using the federal, state or local administrative hearing  
                process.



           9) Makes a violation of this bill or Caltrans' rules and  
             regulations subject to an infraction with a fine of $250 or  
             subject to a misdemeanor with a fine of not more than $1,000,  
             and imprisonment of up to six months, or both.  









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           10)Authorizes an officer of Caltrans and any peace officer to  
             enforce and assist in the enforcement of this bill, and  
             authorizes Caltrans to designate officers or employees to  
             exercise the powers of arrest to enforce this bill. 



           11)Provides that the provisions of this bill may not be  
             construed to impair or impede any other rights, causes of  
             action, claims, or defenses available under other laws and  
             that the remedies in the bill are cumulative with any other  
             remedies available at law. 



           12)Provides that the provisions of this bill are severable, and  
             that if any part of this bill is found to be invalid, the  
             remaining parts of the bill are unaffected.



           13)Provides that this bill may not be construed to limit any  
             power of the state or a political subdivision to regulate the  
             operation of UAS if the regulations do not conflict with the  
             bill, including any local ordinance that regulates UAS if  
             consistent with these provisions, nor may these provisions be  
             construed as prohibiting, restricting, or permitting the  
             prohibition of the takeoff, operation or landing of UAS,  
             except as specified.



           14)Makes statements of legislative intent regarding the need to  
             further and protect the public interest in remote piloted  
             aircraft.










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          EXISTING LAW:   


          1)Vests, pursuant to federal law, the FAA with the authority to  
            regulate airspace use, management and efficiency, air traffic  
            control, safety, navigational facilities, and aircraft noise.   
            (49 U.S.C. Section 40103, 44502, and 44701-44735)  


           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 CFR Parts 1, 45, 47, 48, 91, and 375)  


           4)Authorizes certain persons who are not peace officers to  
            exercise the powers of arrest under certain  
            circumstances, if they have completed a specific training  
            course prescribed by the Commission on Peace Officer  
            Standards and Training.  (Penal Code Section 830.7)

          5)Establishes a Division of Aeronautics within Caltrans.   
            (Public Utilities Code (PU) Section 21001 et seq.)

          6)Makes a violation of the State Aeronautics Act a misdemeanor  








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            with a penalty of up to six months in jail and/or a fine of  
            not more than $1,000 plus penalty assessments.  (PU 24400)

          FISCAL EFFECT: According to the Senate Appropriations Committee:


          1)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)



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



          3)Minor costs for OES staff to coordinate with Caltrans in  
            developing rules and regulations regarding drone operations  
            near critical infrastructure.  (General Fund)



          4)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.   








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            (Special funds)



          COMMENTS:  


           1)Purpose of the bill  .  This bill seeks to comprehensively  
            regulate UAS use in California by establishing numerous  
            prohibitions, restrictions, and penalties on the use of UAS  
            (also known as drones) in ways that would invade privacy,  
            endanger personal safety, interfere with critical  
            infrastructure or harm nature.  The bill tasks several state  
            agencies with enforcement of these responsibilities and also  
            requires commercial UAS operators to obtain liability  
            insurance in order to mitigate potential harm to people,  
            property, and nature.  This bill is author-sponsored.

           2)Author's statement  . According to the author:  "The development  
            of small unmanned aircraft systems - known as "unmanned aerial  
            vehicles," "remote piloted aircraft," or simply "drones" -  
            promises to revolutionize the way Californians interact with  
            each other and their environment.  Drone technology may  
            transform the way California's farmers and ranchers manage  
            livestock and agricultural resources.  Drone technology could  
            also fundamentally alter the way goods move across the state  
            and greatly improve the capacity of emergency personnel to  
            respond to disasters.

            "However, the lack of clear rules governing the use of this  
            emerging technology threatens to harm California's natural  
            resources and undermine public safety.  To date, the lack of  
            regulation has led to disputes between neighbors concerned  
            about invasions of their privacy, impacts to wildlife,  
            near-collisions with airplanes and helicopters, interference  
            with firefighting efforts, and accidents injuring innocent  
            bystanders.  Some individuals are reportedly modifying drones  
            to carry weapons, and, in at least one instance, a drone was  
            used to land radioactive material on the roof of a government  








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            building.

            "Commonsense rules are needed to ensure that drones are used  
            in a safe and responsible manner, consistent with the values  
            of the people of the State of California.  This bill creates a  
            comprehensive set of sensible and intelligent drone  
            regulations that strike an appropriate balance between  
            protecting public safety and privacy, and encouraging  
            innovation and technology.  

            "SB 868 continues to allow local governments to regulate drone  
            use in their communities, and provides certain exceptions for  
            operators who have received authorization from the Federal  
            Aviation Administration to fly in otherwise restricted areas.   
            SB 868 avoids the threat of frivolous litigation by vesting  
            primary enforcement authority with the Division of Aeronautics  
            within the Department of Transportation.  The bill also  
            directs the Division of Aeronautics to work cooperatively with  
            local governments, state agencies, and the federal government  
            to enforce this regulatory framework."

           3)Growth in commercial and recreational uses of UAS  .  UAS are  
            widely available to the public for recreational use.  Retail  
            UAS devices outfitted with cameras now range in price from  
            roughly $300 to $1,500.  The Consumer Electronics Association  
            estimates that hobbyists in the United States bought 700,000  
            drones in 2015.   



          At the same time, a wide variety of commercial applications for  
            UAS are being rapidly developed and tested.  UAS can give the  
            news media economical and environmentally-friendly access to  
            aerial views of traffic, storms, and other events when  
            compared to the current use of helicopters and other manned  
            aircraft.  UAS can also be used in the agricultural industry  
            to observe and measure crops while conserving resources and  
            avoiding the use of heavy equipment.  And UAS may be a future  
            delivery system for mail-order and Internet companies as well.  








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           4)The growing number of UAS incidents causing injury and damage  .  
             While California has had no fatal drone accident to date,  
            less serious accidents are on the rise.  For example, in  
            October 2015, 647 residents in West Hollywood went without  
            power after a hobbyist UAS flew into a power line.  In  
            September 2015, a falling UAS in Pasadena cut and bruised the  
            head of an 11-month old baby in a stroller during an outdoor  
            movie screening.  Also in 2015, during the North Fire in San  
            Bernardino County, five separate UAS prevented firefighters  
            from dispatching helicopters with water buckets for twenty  
            minutes over a wildfire that leapt onto a Los Angeles-area  
            freeway.  Other incidents include drones falling into the  
            stands at the 2015 U.S. Open, crashing into a moving car in  
            Canada, and hitting a toddler in the UK that left the youth  
            blind in one eye.



            Between December 2013 and September 12, 2015, the Center for  
            the Study of the Drone at Bard College collected records of  
            921 incidents involving drones and manned aircrafts in the  
            national airspace.  158 incidents were classified as instances  
            in which a drone came within 200 feet or less of an airplane,  
            28 of which required a pilot to maneuver the aircraft to avoid  
            a collision with a drone. ("Drone Sightings and Close  
            Encounters: An Analysis," Center for the Study of the Drone at  
            Bard College, December 2015)

             Under federal law, operators are prohibited from flying above  
            400 feet or within five miles of an airport.  More recently,  
            on April 18, 2016, a drone collided with a British Airways  
            plane as it was coming in for landing at London's Heathrow  
            Airport - Europe's busiest air terminal.  

            The FAA's Aerospace Forecast report projects that the number  
            of UAS in the U.S. will increase from 2.5 million in 2016 to 7  
            million in 2020 (4.3 million hobbyist and 2.7 million  
            commercial). 








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           5)Current regulation of UAS  .  Under current federal law, the FAA  
            has broad authority to regulate the national airspace.  State  
            and local jurisdictions may seek a Temporary Flight  
            Restriction from the FAA to protect public safety for certain  
            events, such as the Superbowl.  


            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 UAS into the national  
            airspace, and authorized the FAA to establish interim  
            requirements for the commercial operation of UAS.  While the  
            FAA is not expected to finish its final rulemaking for another  
            year or two, the FAA's interim rules require entities that  
            wish to conduct commercial, governmental, research or  
            educational UAS operations to meet certain standards and apply  
            for a Certificate of Authorization from the FAA in order to  
            operate.


            In February 2015, the FAA proposed regulations on commercial  
            drone users.  Among the proposals was a 55-pound weight  
            limitation, a line-of-sight operation requirement, 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.  The FAA has said it will release  
            the final version of those regulations in Spring 2016, so  
            industry experts expect the FAA to publish its new regulations  
            soon. 

            However, in December 2015, the FAA issued rules requiring any  
            UAS weighing between half a pound and 55 pounds to be  
            registered with the FAA by February 19, 2016.  The new FAA  
            registration rules apply only to "model aircraft," i.e.,  
            recreational UAS.  Upon registration, the FAA issues a unique  
            identifier, which must be affixed to the UAS in a "readily  
            accessible and visible manner."  The unique identifier can  
            then be used to look up the UAS owner in the event of a  








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            problem or accident.  Recent reports indicate that 460,000  
                 drone users have registered with the FAA, with many users  
            likely to have more than one drone.  This number already  
            exceeds the total number of registered airplanes and  
            helicopters in the United States. (Baltimore Sun, "Small  
            Drones in Maryland, Nation, Outnumber Other Kinds of  
            Aircraft," May 31, 2016.)


            The Legislature considered 11 UAS bills in 2015, five of which  
            reached Governor Brown's desk.  Only one bill was signed into  
            law: AB 856 (Calderon), which expanded the scope of physical  
            invasion of privacy claims to include using a UAS to enter the  
            airspace over private property for the purpose of taking  
            photos or other recordings.   Governor Brown vetoed several  
            other UAS bills on the grounds that, "Each of these bills  
            creates a new crime - usually by finding a novel way to  
            characterize and criminalize conduct that is already  
            proscribed.  This multiplication and particularization of  
            criminal behavior creates increasing complexity without  
            commensurate benefit."

            In the meantime, several California cities and special  
            districts have enacted their own ordinances restricting UAS  
            use.  In October 2015, the City of Los Angeles enacted UAS  
            restrictions similar to the FAA's proposed regulations.  In  
            December 2015, the city filed the first criminal charges under  
            the ordinance, citing two UAS operators for interfering with a  
            Los Angeles Police Department helicopter, causing it to change  
            its landing path.  In Northern California, the Golden Gate  
            Bridge Highway and Transportation District banned UAS near the  
            Golden Gate Bridge after a drone crashed on the roadway.   
            Other California jurisdictions that have enacted local UAS  
            ordinances include the City of West Hollywood, the East Bay  
            Regional Parks District and the City of Rancho Mirage.   
            Others, including the City of Encinitas, are considering  
            adopting UAS ordinances. 

           6)The federal preemption issue.   Once the FAA has finished  








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            promulgating regulations governing the commercial use of UAS,  
            a future court may find that those regulations preempt certain  
            state laws - such as the provisions of this bill, if passed -  
            but much remains uncertain.  



          In Montalvo v. Spirit Airlines, the Ninth Circuit held in 2007  
            that federal law preempts state law aviation safety standards  
            in areas in which the FAA has issued "pervasive regulations."   
            In discussing the Montalvo case, the Ninth Circuit found that  
            the specific FAA regulations relevant in the case were  
            "pervasive" in that they were "specific," detail[ed],"  
            "complete," "thorough" and "comprehensive" and that this  
            pervasiveness evidenced Congressional intent to broadly  
            preempt state law.  The Montalvo court held that "federal law  
            occupies the entire field of aviation safety.  Congress'  
            intent to displace state law is implicit in the pervasiveness  
            of the federal regulations, the dominance of the federal  
            interest in this area, and the legislative goal of  
            establishing a single, uniform system of control over air  
            safety."  Montalvo v. Spirit Airlines, 508 F.3d 464, 473 (9th  
            Cir. 2007)  But two years later, in Martin ex rel. Heckman v.  
            Midwest Express Holdings, Inc., the Ninth Circuit limited the  
            scope of FAA preemption and held that state law was only  
            preempted if the specific area covered by the plaintiff's tort  
            claim was the subject of pervasive federal regulations.  (555  
            F.3d 806, 811 (9th Cir. 2009)) 

            The FAA itself recently took a more concrete position on the  
            issue of preemption of state and local UAS regulation.   
            According to a December 17, 2015, FAA white paper entitled,  
            "State and Local Regulation of Unmanned Aircraft Systems  
            (UAS)," the FAA stated that "[l]aws 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." The FAA cited the  
            following as examples:  









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                     Requiring police to obtain a warrant before using  
                 UAS for surveillance;


                     Specifying that UAS may not be used for voyeurism;


                     Prohibiting the use of UAS to hunt or fish or  
                 interfere with someone hunting or fishing; and


                     Banning the weaponization of UAS. 



            However, the FAA fact sheet identifies other areas for which  
            it recommends consultation with the FAA, such as "operational  
            UAS restrictions on flight altitude, flight paths; operational  
            bans; any regulation of navigable airspace.  For example - a  
            city ordinance banning anyone from operating UAS within city  
            limits, within the airspace of the city or within certain  
            distances of landmarks."  

            The FAA fact sheet states further that "federal courts  
            strictly scrutinize state and local regulation of overflight"  
            and that "[s]tate and local restrictions affecting UAS  
            operations should be consistent with the extensive federal  
            statutory and regulatory framework pertaining to control of  
            the airspace, flight management and efficiency, air traffic  
            control, aviation safety, navigational facilities, and the  
            regulation of aircraft noise at its source."

            Many of the provisions of this bill would create no-fly zones,  
            place restrictions on overflight, and impose other operational  
            restrictions, which appear to fall into the above category,  
            which requires consistency with the FAA's extensive federal  
            regulatory framework pertaining to control of airspace and  
            flight management in order to avoid preemption.  









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            Because the FAA regulations have not yet been finalized, it  
            would be difficult - even for the FAA - to determine whether  
            and in what ways the provisions of this bill conflict with the  
            FAA regulatory framework.  A coalition of technology companies  
            and industry associations oppose this bill as premature and  
            likely to be preempted by the FAA's broad authority to  
            regulate navigable airspace.  Industry experts, such as the  
            Association for Unmanned Vehicle Systems International  
            (AUVSI), contend that while state and local governments may  
            have authority to regulate in the area of takeoff and landing  
            of UAS in instances involving public safety and local police  
            power under the Tenth Amendment of the U.S. Constitution, UAS  
            flight path and overflight of both manned and unmanned  
            aircraft are squarely within the FAA's jurisdiction. 

           1)Requiring Caltrans, OES, CHP, and the Departments of Fish and  
            Wildlife and Parks and Recreation to regulate UAS  .  This bill  
            requires the development of implementing regulations by  
            Caltrans and involves several other departments in the  
            oversight of UAS operation in California.  Caltrans currently  
            has a Division of Aeronautics, a 25-person unit, which deals  
            with siting, planning, and inspection issues at public-use  
            airports.  These are airports open to the general public, such  
            as Sacramento Executive Airport, and do not include the large  
            commercial airports, such as Sacramento International Airport.  
             Caltrans is the only state agency with any dealings or  
            familiarity with the FAA, and the author contends Caltrans is  
            therefore the best location to place the broad, new UAS  
            regulatory duties created by this bill.

            SB 868 provides that, along with peace officers, the Director  
            of Caltrans and the department's officers and employees, as  
            designated by Caltrans, may enforce this bill and any rule or  
            order issued under this bill, provided the officer has  
            received the specified POST training.

           2)Requiring commercial UAS operators to carry liability  
            insurance  .  This bill requires every commercial UAS operator,  
            and any person using, operating, or renting a UAS with the  








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            permission of a commercial operator, to maintain liability  
            insurance.  Caltrans is tasked with holding a public hearing  
            on the issue and ultimately determining the amount of  
            insurance necessary to provide adequate compensation for  
            liability or damages incurred involving operation of a UAS.   
            Recreational and other non-commercial drone operators are not  
            required to obtain insurance under this bill, although many  
            may have coverage through existing homeowners' insurance  
            policies.  AB 2724 (Gatto), which this Committee heard and  
            approved earlier this year, requires hobbyist UAS operators to  
            carry adequate liability insurance.   

           3)Arguments in support  . The California State Association of  
            Counties, states in support of this bill, that "the increased  
            use of unmanned aircraft technology in recent years offers a  
            variation of benefits, but also presents a series of  
            challenges for state and local government regulatory  
            authorities.  The lack of clear regulations with this  
            technology has led to multiple problems with the interference  
            with first responders, firefighting efforts, near collisions  
            with aircrafts, and invasion of privacy.  SB 868 takes a  
            critical step in addressing these issues." 

            The League of California Cities (LCC) states in support, that  
            "this measure is a reasonable effort to establish  
            comprehensive state regulation of [UAS]. It thoughtfully makes  
            use of existing enforcement resources by identifying state  
            entities with current law enforcement responsibilities and  
            tasking them with roles in the regulatory process."  LCC  
            states further, that "there is clearly a need for regulations  
            in light of the vacuum represented by weak FAA requirements  
            with respect to recreational [UAS]. The FAA itself has  
            identified a definite role for local ordinances within the  
            regulatory framework on [UAS] in its December 2015 Fact Sheet  
            released by the Office of its General Counsel." 

            The California League of Conservation Voters states in support  
            that "The bill limits the use of drones over state parks and  
            wildlife refuges while empowering land managers to allow drone  








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            use inappropriate circumstances, like conducting wildlife  
            surveys or monitoring the health of particular species.  
            California needs to act swiftly to protect our natural  
            resources, and SB 868 provides a framework to ensure that  
            these resources are preserved for future generations."

            The California Police Chiefs Association states in support  
            that, "[UAS] technology is evolving rapidly and it is  
            important that our laws be updated to protect our citizens'  
            privacy and ensure public safety. SB 868 provides for both by  
            establishing clear state guidelines for [UAS] operations,  
            while empowering law enforcement and state agencies to enforce  
            these rules."

            The City of West Hollywood, states in support that this bill  
            "will complement the City of West Hollywood's recently adopted  
            local ordinance...regulating [UAS].  The new ordinance imposes  
            strict limits on flying [UAS] and specifically prohibits [UAS]  
            from taking photos, video or audio recordings of people where  
            they have a reasonable expectation of privacy, such as their  
            homes or hotel rooms." 

           4)Arguments in opposition  .  A coalition of UAS manufacturers and  
            industry organizations led by the California Chamber of  
            Commerce and the Consumer Technology Association contend that  
            the bill needlessly addresses already prohibited conduct  
            (e.g., eavesdroppers and Peeping Toms), creates a new  
            insurance requirement without justification, and is preempted  
            by federal law.  The coalition states that "to the extent  
            legislation is adopted, it should clarify the scope of  
            existing law and its application to UAS.  State statutes that  
            conflict with federal law, redundantly address  
            already-forbidden conduct, or attach burdensome regulation to  
            UAS operations would undermine innovation and provide a strong  
            disincentive to the UAS industry regarding future  
            developmental and educational activities in California."
             
             The Electronic Frontier Foundation (EFF) opposes this bill and  
            expresses concerns about how this bill would affect the  








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            growing UAS hobbyist community.  EFF contends that this bill  
            makes an artificial distinction between non-commercial and  
            commercial UAS uses, and in doing so "makes operations by  
            non-commercial operators illegal when the very same operations  
            would be legal if they were commercial in nature."  EFF notes  
            that while the bill contains numerous exceptions for  
            commercial operations authorized by the FAA, not every  
            operation authorized by the FAA is commercial.  EFF writes,  
            "The FAA distinguishes between hobby/recreational and  
            non-hobby/non-recreational use, not between commercial and  
            non-commercial. As such, many non-commercial yet  
            FAA-sanctioned operations will be illegal under S.B.  
            868-including operations by non-profits, which the FAA has  
            explicitly said fall under its authority."
           5)Related legislation  .  AB 56 (Quirk) bans the weaponization of  
            drones and regulates the use of UAS by public agencies,  
            including law enforcement.  AB 56 is pending on the Senate  
            Floor.

            AB 1662 (Chau) protects people from hit-and-run UAS accidents  
            by requiring UAS operators to remain at the scene of an  
            accident and provide their name and address along with valid  
            identification to the victim and the police.  AB 1662 is  
            pending in the Senate Public Safety Committee.


            AB 2320 (Calderon/Low) clarifies that using a UAS to enter the  
            airspace within which a person is prohibited from entering  
            under a given protective order is a violation of the  
            protective order, permits a judge to prohibit a registered sex  
            offender from operating a UAS, prohibits operating a UAS in a  
            way that interferes with emergency response in an emergency,  
            prohibits using a UAS to stalk another person, and prohibits  
            using a UAS to deliver contraband into a prison. AB 2320 is  
            pending in the Senate Public Safety Committee.



            AB 2724 (Gatto) requires UAS makers to include with the UAS a  








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            copy of FAA safety regulations, and if the UAS is required to  
            be registered with the FAA, a notice of the registration  
            requirement. The bill also requires UAS with GPS technology to  
            be outfitted with a geo-fencing feature and requires UAS  
            owners to have adequate liability insurance.  AB 2724 is  
            pending in the Senate Transportation & Housing Committee.
           6)Prior legislation  .   AB 856 (Calderon), Chapter 521, Statutes  
            of 2015, expanded the scope of the cause of action in existing  
            law for physical invasion of privacy by making a person liable  
            for physical invasion of privacy when the person knowingly  
            enters "into the airspace" above the land of another person  
            without permission. 

            SB 142 (Jackson) of 2015 would have extended liability for  
            wrongful occupation of real property and damages to a person  
            who without permission operates a UAS below the navigable  
            airspace overlaying the real property.  SB 142 was vetoed by  
            Governor Brown.

            SB 168 (Gaines) of 2015 would have increased fines for UAS  
            interference with firefighting activities and granted civil  
            immunity to public entities, public employees, and unpaid  
            volunteers, and private entities acting within the scope of  
            delegated authority, that damage a UAS in the course of  
            providing a variety of emergency services.  SB 168 was vetoed  
            by Governor Brown.

            SB 170 (Gaines) of 2015 would have made it a felony to use UAS  
            to deliver contraband into a prison or county jail and creates  
            a misdemeanor crime for the use of UAS over a prison or  
            capture images of a prison.  SB 170 was vetoed by Governor  
            Brown.  


            SB 262 (Galgiani) of 2015 would have authorized a law  
            enforcement agency to use a UAS if it complied with the U.S.  
            and California Constitution, federal and state law, and  
            provided the local governing board approved the use.  SB 262  
            was held in the Senate Judiciary Committee.   








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            SB 263 (Gaines) of 2015 would have clarified that using a UAS  
            to enter the airspace within which a person is prohibited from  
            entering under a given protective order is a violation of the  
            protective order.  SB 263 was held in the Senate Public Safety  
            Committee.


            SB 271 (Gaines) of 2015 would have prohibited the use of UAS  
            at or less than 350 feet above a public school campus or to  
            use a UAS to capture images of school campus during school  
            hours without the written permission of the school principal.   
            SB 271 was vetoed by Governor Brown.  


            AB 1256 (Bloom), Chapter 852, Statutes of 2014, created a  
            cause of action for the capture of a visual image or sound  
            recording of another person with the use of an enhanced visual  
            or audio device liable for "constructive" invasion of privacy,  
            and made it illegal, and subject to civil liability, to  
            attempt to obstruct, intimidate, or otherwise interfere with a  
            person who is attempting to enter or exit a school, medical  
            facility, or lodging, as defined.



            AB 2306 (Chau), Chapter 858, Statutes of 2014, expanded a  
            person's potential liability for constructive invasion of  
            privacy, by removing the limitation that the person use a  
            visual or auditory enhancing device, and instead made the  
            person liable when using any device to engage in the specified  
            unlawful activity.
            SB 15 (Padilla) of 2013 would have imposed a search warrant  
            requirement on law enforcement agency use of a UAS in certain  
            circumstances, would have applied existing civil and criminal  
            law to prohibited activities with devices or instrumentalities  
            affixed to, or contained within a UAS, and would have  
            prohibited equipping a UAS with a weapon, and would have  








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            prohibited using a UAS to invade a person's privacy.  SB 15  
            failed passage in the Assembly Public Safety Committee.


           7)Double-referral  .  This bill is double-referred to the Assembly  
            Transportation Committee, where it will be heard if passed by  
            this Committee. 

          REGISTERED SUPPORT / OPPOSITION:





          Support 





          Association of California Water Agencies 


          California League of Conservation Voters


          California Police Chiefs Association


          California Ski Industry Association


          California State Association of Counties


          City of Beverly Hills


          City of Camarillo








                                                                     SB 868


                                                                    Page  24







          City of Palos Verdes Estates


          City of Redding


          City of Santa Maria


          City of Sunnyvale


          City of Thousand Oaks


          City of Torrance


          City of West Hollywood


          League of California Cities


          San Diego County Regional Airport Authority 


          Ventura Council of Governments


          One individual





          Opposition 








                                                                     SB 868


                                                                    Page  25










          3D Robotics


          Academy of Model Aeronautics


          Airware


          American Insurance Association


          Association for Unmanned Vehicle Systems International


          California Chamber of Commerce


          California Manufacturers & Technology Association


          CompTIA


          Consumer Technology Association


          CTIA - The Wireless Association


          DJI


          Electronic Frontier Foundation








                                                                     SB 868


                                                                    Page  26







          GoPro, Inc.


          Personal Insurance Federation of California


          Small UAV Coalition


          State Farm Mutual Automobile Insurance Company


          TechNet


          Yuneec USA Inc.




          Analysis Prepared by:Jennie Bretschneider / P. & C.P. / (916)  
          319-2200