[Congressional Record Volume 162, Number 55 (Tuesday, April 12, 2016)]
[Senate]
[Pages S1922-S1927]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3656. Mr. HATCH submitted an amendment intended to be proposed to 
amendment SA 3464 submitted by Mr. Thune (for himself and Mr. Nelson) 
to the bill H.R. 636, to amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limitations, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 2124 through 2138 and insert the following:

     SEC. 2124. SMALL UNMANNED AIRCRAFT SAFETY STANDARDS.

       (a) In General.--Chapter 448, as amended by section 2122 of 
     this Act, is further amended by inserting after section 44802 
     the following:

     ``SEC. 44803. SMALL UNMANNED AIRCRAFT SAFETY STANDARDS.

       ``(a) Consensus Safety Standards.--Not later than 60 days 
     after the date of enactment of the Federal Aviation 
     Administration Reauthorization Act of 2016, the Director of 
     the National Institute of Standards and Technology and the 
     Administrator of the Federal Aviation Administration, in 
     consultation with government and industry stakeholders and 
     appropriate standards-setting organizations, shall initiate a 
     collaborative process to develop risk-based, consensus 
     industry safety standards related to the safe integration of 
     small unmanned aircraft systems into the national airspace 
     system.
       ``(b) Considerations.--In developing the consensus safety 
     standards under subsection (a), the Director and 
     Administrator shall consider the following:
       ``(1) Technologies or standards related to geographic 
     limitations, altitude limitations, and sense and avoid 
     capabilities.
       ``(2) Using performance-based standards.
       ``(3) Predetermined action to maintain safety in the event 
     that a communications link between a small unmanned aircraft 
     and its operator is lost or compromised.
       ``(4) Detectability and identifiability to pilots, the 
     Federal Aviation Administration, and air traffic controllers, 
     as appropriate.
       ``(5) Means to prevent tampering with or modification of 
     any system, limitation, or other safety mechanism or standard 
     under this section or any other provision of law, including a 
     means to identify any tampering or modification that has been 
     made.
       ``(6) Consensus identification standards under section 
     2105.
       ``(7) Cost benefit and risk analysis to update or modify a 
     small unmanned aircraft system that was commercially 
     distributed prior to the development of the consensus 
     aircraft safety standards so that, to the greatest extent 
     practicable, such systems meet the consensus aircraft safety 
     standards.
       ``(8) Any technology or standard related to small unmanned 
     aircraft systems that promotes aviation safety.
       ``(9) Whether any category of unmanned aircraft systems, 
     based on verified low risk factors, should be exempt from 
     such standards.
       ``(c) Consultation.--In developing the consensus safety 
     standards under subsection (a), the Director and 
     Administrator shall consult with--
       ``(1) the Administrator of the National Aeronautics and 
     Space Administration;
       ``(2) the President of RTCA, Inc.;
       ``(3) the Secretary of Defense;
       ``(4) each operator of a test site under section 44802;
       ``(5) the Center of Excellence for Unmanned Aircraft 
     Systems;
       ``(6) unmanned aircraft systems stakeholders, including 
     manufacturers of varying sizes of such aircraft; and
       ``(7) community-based aviation organizations.
       ``(d) FAA Process and Certification.--Not later than 1 year 
     after the date of enactment of the Federal Aviation 
     Administration Reauthorization Act of 2016, the Administrator 
     of the Federal Aviation Administration shall establish a 
     process for--
       ``(1) the adoption by the Federal Aviation Administration 
     of consensus safety standards for small unmanned aircraft 
     systems developed under subsection (a);
       ``(2) the certification of small unmanned aircraft systems 
     based upon the consensus safety standards developed under 
     subsection (a), which shall allow the Administrator to 
     approve small unmanned aircraft systems for operation within 
     the national airspace system without requiring the type 
     certification process in parts 21 and 23 of title 14, Code of 
     Federal Regulations; and
       ``(3) the certification of a manufacturer of small unmanned 
     aircraft systems, or an employee of such manufacturer, that 
     has demonstrated compliance with the consensus safety 
     standards developed under subsection (a) and met any other 
     qualifying criteria, as determined by the Administrator, to 
     alternatively satisfy the requirements of paragraph (2), 
     which certification--
       ``(A) shall allow small unmanned aircraft systems to 
     operate within the national airspace system without requiring 
     the type certification process in parts 21 and 23 of title 
     14, Code of Federal Regulations; and
       ``(B) may be revoked if the Administrator determines that 
     the manufacturer is not in compliance with requirements set 
     forth by the Administrator.
       ``(e) Review.--The Administrator of the Federal Aviation 
     Administration may require manufacturers to provide the FAA 
     with the following:
       ``(1) The aircraft's operating instructions.
       ``(2) The manufacturer's statement of compliance as 
     described in subsection (f).
       ``(3) A sample aircraft, to be inspected, upon request, by 
     the Federal Aviation Administration to ensure compliance with 
     the consensus safety standards required by the Administrator 
     under subsection (d).
       ``(f) Manufacturer's Statement of Compliance for Small 
     UAS.--A manufacturer's statement of compliance shall--
       ``(1) identify the aircraft make and model, and consensus 
     safety standards used;
       ``(2) state that the aircraft make and model meets the 
     provisions of the standards identified in paragraph (1);
       ``(3) state that the aircraft make and model conforms to 
     the manufacturer's design data and is manufactured in way 
     that ensures consistency in production across units in the 
     production process in order to meet the applicable consensus 
     safety standards;
       ``(4) state that the manufacturer will make available to 
     any interested person--
       ``(A) the aircraft's operating instructions, that meet the 
     standards identified in paragraph (1); and
       ``(B) the aircraft's maintenance and inspection procedures, 
     that meet the standards identified in paragraph (1);
       ``(5) state that the manufacturer will monitor safety-of-
     flight issues to ensure it meets the standards identified in 
     paragraph (1);
       ``(6) state that at the request of the Administrator, the 
     manufacturer will provide access for the Administrator to its 
     facilities; and
       ``(7) state that the manufacturer, in accordance with 
     testing requirements identified by the Federal Aviation 
     Administration, has--
       ``(A) ground and flight tested random samples of the 
     aircraft;
       ``(B) found the sample aircraft performance acceptable; and
       ``(C) determined that the make and model of aircraft is 
     suitable for safe operation.
       ``(g) Prohibition.--It shall be unlawful for any person to 
     introduce or deliver for introduction into interstate 
     commerce any unmanned aircraft system manufactured after the 
     date that the Administrator adopts consensus safety standards 
     under this section,

[[Page S1923]]

     unless the manufacturer has received approval under 
     subsection (d) for that make and model of unmanned aircraft 
     system.
       ``(h) Exclusions.--This section shall not apply to unmanned 
     aircraft systems that are not capable of navigating beyond 
     the visual line of sight of the operator through advanced 
     flight systems and technology, unless the Administrator 
     determines that is necessary to ensure safety of the 
     airspace.''.
       (b) Table of Contents.--The table of contents for chapter 
     448, as amended by section 2122 of this Act, is further 
     amended by inserting after the item relating to section 44802 
     the following:

``44803. Small unmanned aircraft safety standards.''.

     SEC. 2125. UNMANNED AIRCRAFT SYSTEMS IN THE ARCTIC.

       (a) In General.--Chapter 448, as amended by section 2124 of 
     this Act, is further amended by inserting after section 44803 
     the following:

     ``Sec. 44804. Unmanned aircraft systems in the Arctic

       ``(a) In General.--The Secretary of Transportation shall 
     develop a plan and initiate a process to work with relevant 
     Federal agencies and national and international communities 
     to designate permanent areas in the Arctic where small 
     unmanned aircraft may operate 24 hours per day for research 
     and commercial purposes.
       ``(b) Plan Contents.--The plan under subsection (a) shall 
     include the development of processes to facilitate the safe 
     operation of unmanned aircraft beyond line of sight.
       ``(c) Requirements.--Each permanent area designated under 
     subsection (a) shall enable over-water flights from the 
     surface to at least 2,000 feet in altitude, with ingress and 
     egress routes from selected coastal launch sites.
       ``(d) Agreements.--To implement the plan under subsection 
     (a), the Secretary may enter into an agreement with relevant 
     national and international communities.
       ``(e) Aircraft Approval.--Not later than 1 year after the 
     entry into force of an agreement necessary to effectuate the 
     purposes of this section, the Secretary shall work with 
     relevant national and international communities to establish 
     and implement a process, or may apply an applicable process 
     already established, for approving the use of unmanned 
     aircraft in the designated permanent areas in the Arctic 
     without regard to whether an unmanned aircraft is used as a 
     public aircraft, a civil aircraft, or a model aircraft.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents for chapter 
     448, as amended by section 2124 of this Act, is further 
     amended by inserting after the item relating to section 44803 
     the following:

``44804. Unmanned aircraft systems in the Arctic.''.

       (2) Expanding use of unmanned aircraft systems in arctic.--
     Section 332 of the FAA Modernization and Reform Act of 2012 
     (49 U.S.C. 40101 note) is amended by striking subsection (d).

     SEC. 2126. SPECIAL AUTHORITY FOR CERTAIN UNMANNED AIRCRAFT 
                   SYSTEMS.

       (a) In General.--Chapter 448, as amended by section 2125 of 
     this Act, is further amended by inserting after section 44804 
     the following:

     ``Sec. 44805. Special authority for certain unmanned aircraft 
       systems

       ``(a) In General.--Notwithstanding any other requirement of 
     this chapter, the Secretary of Transportation shall use a 
     risk-based approach to determine if certain unmanned aircraft 
     systems may operate safely in the national airspace system 
     notwithstanding completion of the comprehensive plan and 
     rulemaking required by section 332 of the FAA Modernization 
     and Reform Act of 2012 (49 U.S.C. 40101 note) or the guidance 
     required by section 44807.
       ``(b) Assessment of Unmanned Aircraft Systems.--In making 
     the determination under subsection (a), the Secretary shall 
     determine, at a minimum--
       ``(1) which types of unmanned aircraft systems, if any, as 
     a result of their size, weight, speed, operational 
     capability, proximity to airports and populated areas, and 
     operation within or beyond visual line of sight, or operation 
     during the day or night, do not create a hazard to users of 
     the national airspace system or the public; and
       ``(2) whether a certificate under section 44703 or section 
     44704 of this title, or a certificate of waiver or 
     certificate of authorization, is required for the operation 
     of unmanned aircraft systems identified under paragraph (1) 
     of this subsection.
       ``(c) Requirements for Safe Operation.--If the Secretary 
     determines under this section that certain unmanned aircraft 
     systems may operate safely in the national airspace system, 
     the Secretary shall establish requirements for the safe 
     operation of such aircraft systems in the national airspace 
     system, including operation related to research, development, 
     and testing of proprietary systems.
       ``(d) Pilot Certification Exemption.--If the Secretary 
     proposes, under this section, to require an operator of an 
     unmanned aircraft system to hold an airman certificate, a 
     medical certificate, or to have a minimum number of hours 
     operating a manned aircraft, the Secretary shall set forth 
     the reasoning for such proposal and seek public notice and 
     comment before imposing any such requirements.
       ``(e) Sunset.--The authority under this section for the 
     Secretary to determine if certain unmanned aircraft systems 
     may operate safely in the national airspace system terminates 
     effective September 30, 2017.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents for chapter 
     448, as amended by section 2125 of this Act, is further 
     amended by inserting after the item relating to section 44804 
     the following:

``44805. Special rules for certain unmanned aircraft systems.''.

       (2) Special rules for certain unmanned aircraft systems.--
     Section 333 of the FAA Modernization and Reform Act of 2012 
     (49 U.S.C. 40101 note) and the item relating to that section 
     in the table of contents under section 1(b) of that Act (126 
     Stat. 13) are repealed.

     SEC. 2127. ADDITIONAL RULEMAKING AUTHORITY.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) beyond visual line of sight and nighttime operations of 
     unmanned aircraft systems have tremendous potential--
       (A) to enhance research and development both commercially 
     and in academics;
       (B) to spur economic growth and development through 
     innovative applications of this emerging technology; and
       (C) to improve emergency response efforts as it relates to 
     assessing damage to critical infrastructure such as roads, 
     bridges, and utilities, including water and power, ultimately 
     speeding response time;
       (2) advancements in miniaturization of safety technologies, 
     including for aircraft weighing under 4.4 pounds, have 
     increased economic opportunities for using unmanned aircraft 
     systems while reducing kinetic energy and risk compared to 
     unmanned aircraft that may weigh as much as 55 pounds;
       (3) advancements in unmanned technology will have the 
     capacity to ultimately improve manned aircraft safety; and
       (4) integrating unmanned aircraft systems safely into the 
     national airspace, including beyond visual line of sight and 
     nighttime operations on a routine basis should remain a top 
     priority for the Federal Aviation Administration as it 
     pursues additional rulemakings under the amendments made by 
     this section.
       (b) In General.--Chapter 448, as amended by section 2126 of 
     this Act, is further amended by inserting after section 44805 
     the following:

     ``Sec. 44806. Additional rulemaking authority

       ``(a) In General.--Notwithstanding the rulemaking required 
     by section 332 of the FAA Modernization and Reform Act of 
     2012 (49 U.S.C. 40101 note) or the guidance required by 
     section 44807 of this title and subject to subsection (b)(2) 
     of this section and section 44808, the Administrator may 
     issue regulations under which a person may operate certain 
     unmanned aircraft systems (as determined by the 
     Administrator) in the United States--
       ``(1) without an airman certificate;
       ``(2) without an airworthiness certificate for the 
     associated unmanned aircraft; or
       ``(3) that are not registered with the Federal Aviation 
     Administration.
       ``(b) Micro Unmanned Aircraft Systems Operational Rules.--
       ``(1) In general.--Notwithstanding the rulemaking required 
     by section 332 of the FAA Modernization and Reform Act of 
     2012 (49 U.S.C. 40101 note), the Administrator shall issue 
     regulations not later than 270 days after the date of 
     enactment of the Federal Aviation Administration 
     Reauthorization Act of 2016 under which any person may 
     operate a micro unmanned aircraft system classification of 
     unmanned aircraft systems, the aircraft component of which 
     weighs 4.4 pounds or less, including payload, without the 
     person operating the system being required to pass any airman 
     certification requirement, including any requirements under 
     section 44703 of this title, part 61 of title 14, Code of 
     Federal Regulations, or any other rule or regulation relating 
     to airman certification.
       ``(2) Operational rules.--The rulemaking required by 
     paragraph (1) relating to micro unmanned aircraft systems 
     shall consider the following rules, or any appropriate 
     modifications thereof concerning altitude, airspeed, 
     geographic location, and time of day as the Administrator 
     considers appropriate, for operation of such systems:
       ``(A) Operation an altitude of less than 400 feet above 
     ground level.
       ``(B) Operation with an airspeed of not greater than 40 
     knots.
       ``(C) Operation within the visual line of sight of the 
     operator.
       ``(D) Operation during the hours between sunrise and 
     sunset.
       ``(E) Operation not less than 5 statute miles from the 
     geographic center of an airport with an operational air 
     traffic control tower or an airport denoted on a current 
     aeronautical chart published by the Federal Aviation 
     Administration, except that a micro unmanned aircraft system 
     may be operated within 5 statute miles of such an airport if 
     the operator of the system--
       ``(i) provides notice to the airport operator; and
       ``(ii) in the case of an airport with an operational air 
     traffic control tower, receives approval from the air traffic 
     control tower.
       ``(c) Scope of Regulations.--

[[Page S1924]]

       ``(1) In general.--In determining whether a person may 
     operate an unmanned aircraft system under 1 or more of the 
     circumstances described under paragraphs (1) through (3) of 
     subsection (a), the Administrator shall use a risk-based 
     approach and consider, at a minimum, the physical and 
     functional characteristics of the unmanned aircraft system.
       ``(2) Limitation.--The Administrator may only issue 
     regulations under this section for unmanned aircraft systems 
     that the Administrator determines may be operated safely in 
     the national airspace system.
       ``(d) Rules of Construction.--Nothing in this section may 
     be construed--
       ``(1) to prohibit a person from operating an unmanned 
     aircraft system under a circumstance described under 
     paragraphs (1) through (3) of subsection (a) if--
       ``(A) the circumstance is allowed by regulations issued 
     under this section; and
       ``(B) the person operates the unmanned aircraft system in a 
     manner prescribed by the regulations; and
       ``(2) to limit or affect in any way the Administrator's 
     authority to conduct a rulemaking, make a determination, or 
     carry out any activity related to unmanned aircraft or 
     unmanned aircraft systems under any other provision of 
     law.''.
       (c) Table of Contents.--The table of contents for chapter 
     448, as amended by section 2126 of this Act, is further 
     amended by inserting after the item relating to section 44805 
     the following:

``44806. Additional rulemaking authority.''.

     SEC. 2128. GOVERNMENTAL UNMANNED AIRCRAFT SYSTEMS.

       (a) In General.--Chapter 448, as amended by section 2127 of 
     this Act, is further amended by inserting after section 44806 
     the following:

     ``Sec. 44807. Public unmanned aircraft systems

       ``(a) Guidance.--The Secretary of Transportation shall 
     issue guidance regarding the operation of a public unmanned 
     aircraft system--
       ``(1) to streamline the process for the issuance of a 
     certificate of authorization or a certificate of waiver;
       ``(2) to provide for a collaborative process with public 
     agencies to allow for an incremental expansion of access to 
     the national airspace system as technology matures and the 
     necessary safety analyses and data become available, and 
     until standards are completed and technology issues are 
     resolved;
       ``(3) to facilitate the capability of public agencies to 
     develop and use test ranges, subject to operating 
     restrictions required by the Federal Aviation Administration, 
     to test and operate public unmanned aircraft systems; and
       ``(4) to provide guidance on a public agency's 
     responsibilities when operating an unmanned aircraft without 
     a civil airworthiness certificate issued by the 
     Administration.
       ``(b) Standards for Operation and Certification.--The 
     Administrator of the Federal Aviation Administration shall 
     develop and implement operational and certification 
     requirements for the operation of a public unmanned aircraft 
     system in the national airspace system.
       ``(c) Agreements With Government Agencies.--
       ``(1) In general.--The Secretary shall enter into an 
     agreement with each appropriate public agency to simplify the 
     process for issuing a certificate of waiver or a certificate 
     of authorization with respect to an application for 
     authorization to operate a public unmanned aircraft system in 
     the national airspace system.
       ``(2) Contents.--An agreement under paragraph (1) shall--
       ``(A) with respect to an application described in paragraph 
     (1)--
       ``(i) provide for an expedited review of the application;
       ``(ii) require a decision by the Administrator on approval 
     or disapproval not later than 60 business days after the date 
     of submission of the application;
       ``(iii) allow for an expedited appeal if the application is 
     disapproved; and
       ``(iv) if applicable, include verification of the data 
     minimization policy required under subsection (d);
       ``(B) allow for a one-time approval of similar operations 
     carried out during a fixed period of time; and
       ``(C) allow a government public safety agency to operate an 
     unmanned aircraft weighing 25 pounds or less if that unmanned 
     aircraft is operated--
       ``(i) within or beyond the line of sight of the operator;
       ``(ii) less than 400 feet above the ground;
       ``(iii) during daylight conditions;
       ``(iv) within Class G airspace; and
       ``(v) outside of 5 statute miles from any airport, 
     heliport, seaplane base, spaceport, or other location with 
     aviation activities.
       ``(d) Data Minimization for Certain Public Unmanned 
     Aircraft System Operators.--Not later than 180 days after the 
     date of enactment of the Federal Aviation Administration 
     Reauthorization Act of 2016 each Federal agency authorized by 
     the Secretary to operate an unmanned aircraft system shall 
     develop and update a data minimization policy that requires, 
     at a minimum, that--
       ``(1) prior to the deployment of any new unmanned aircraft 
     system technology, and at least every 3 years, existing 
     policies and procedures relating to the collection, use, 
     retention, and dissemination of information obtained by an 
     unmanned aircraft system must be examined to ensure that 
     privacy, civil rights, and civil liberties are protected;
       ``(2) if the unmanned aircraft system is the platform for 
     information collection, information must be collected, used, 
     retained, and disseminated consistent with the Constitution, 
     Federal law, and other applicable regulations and policies, 
     such as the Privacy Act of 1974 (5 U.S.C. 552a);
       ``(3) the Federal agency or person operating on its behalf, 
     only collect information using the unmanned aircraft system, 
     or use unmanned aircraft system-collected information, to the 
     extent that the collection or use is consistent with and 
     relevant to an authorized purpose as determined by the head 
     of a Federal agency and consistent with the law;
       ``(4) any information collected, using an unmanned aircraft 
     or an unmanned aircraft system, that may contain personal 
     information will not be retained by any Federal agency for 
     more than 180 days after the date of collection unless--
       ``(A) the head of the Federal agency determines that 
     retention of the information is directly relevant and 
     necessary to accomplish the specific purpose for which the 
     Federal agency used the unmanned aircraft system;
       ``(B) that Federal agency maintains the information in a 
     system of records under section 552a of title 5; or
       ``(C) the information is required to be retained for a 
     longer period under other applicable law, including 
     regulations;
       ``(5) any information collected, using an unmanned aircraft 
     or unmanned aircraft system, that is not maintained in a 
     system of records under section 552a of title 5, will not be 
     disseminated outside of that Federal agency unless--
       ``(A) dissemination is required by law; or
       ``(B) dissemination satisfies an authorized purpose and 
     complies with that Federal agency's disclosure requirements;
       ``(6) to the extent it does not compromise law enforcement 
     or national security a Federal agency shall--
       ``(A) provide notice to the public regarding where in the 
     national airspace system the Federal agency is authorized to 
     operate the unmanned aircraft system;
       ``(B) keep the public informed about the Federal agency's 
     unmanned aircraft system program, including any changes to 
     that program that would significantly affect privacy, civil 
     rights, or civil liberties;
       ``(C) make available to the public, on an annual basis, a 
     general summary of the Federal agency's unmanned aircraft 
     system operations during the previous fiscal year, 
     including--
       ``(i) a brief description of types or categories of 
     missions flown; and
       ``(ii) the number of times the Federal agency provided 
     assistance to other agencies or to State, local, tribal, or 
     territorial governments; and
       ``(D) make available on a public and searchable Internet 
     website the data minimization policy of the Federal agency;
       ``(7) ensures oversight of the Federal agency's unmanned 
     aircraft system use, including--
       ``(A) the use of audits or assessments that comply with 
     existing Federal agency policies and regulations;
       ``(B) the verification of the existence of rules of conduct 
     and training for Federal Government personnel and contractors 
     who work on programs, and procedures for reporting suspected 
     cases of misuse or abuse of unmanned aircraft system 
     technologies;
       ``(C) the establishment of policies and procedures, or 
     confirmation that policies and procedures are in place, that 
     provide meaningful oversight of individuals who have access 
     to sensitive information, including personal information, 
     collected using an unmanned aircraft system;
       ``(D) ensuring that any data-sharing agreements or 
     policies, data use policies, and record management policies 
     applicable to an unmanned aircraft system conform to 
     applicable laws, regulations, and policies;
       ``(E) the establishment of policies and procedures, or 
     confirmation that policies and procedures are in place, to 
     authorize the use of an unmanned aircraft system in response 
     to a request for unmanned aircraft system assistance in 
     support of Federal, State, local, tribal, or territorial 
     government operations; and
       ``(F) a requirement that State, local, tribal, and 
     territorial government recipients of Federal grant funding 
     for the purchase or use of unmanned aircraft systems for 
     their own operations have in place policies and procedures to 
     safeguard individuals' privacy, civil rights, and civil 
     liberties prior to expending such funds; and
       ``(8) ensures the protection of civil rights and civil 
     liberties, including--
       ``(A) ensuring that policies are in place to prohibit the 
     collection, use, retention, or dissemination of data in any 
     manner that would violate the First Amendment or in any 
     manner that would discriminate against persons based upon 
     their ethnicity, race, gender, national origin, religion, 
     sexual orientation, or gender identity, in violation of law;
       ``(B) ensuring that unmanned aircraft system activities are 
     performed in a manner consistent with the Constitution and 
     applicable laws, Executive Orders, and other Presidential 
     directives; and
       ``(C) ensuring that adequate procedures are in place to 
     receive, investigate, and address,

[[Page S1925]]

     as appropriate, privacy, civil rights, and civil liberties 
     complaints.
       ``(e) Law Enforcement and National Security.--Each Federal 
     agency shall effectuate a requirement under subsection (d) 
     only to the extent it does not compromise law enforcement or 
     national security.
       ``(f) Definition of Federal Agency.--In subsections (d) and 
     (e), the term `Federal agency' has the meaning given the term 
     `agency' in section 552(f) of title 5, United States Code.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents for chapter 
     448, as amended by section 2127 of this Act, is further 
     amended by inserting after the item relating to section 44806 
     the following:

``44807. Public unmanned aircraft systems.''.

       (2) Public unmanned aircraft systems.--Section 334 of the 
     FAA Modernization and reform Act of 2012 (49 U.S.C. 40101 
     note) and the item relating to that section in the table of 
     contents under section 1(b) of that Act (126 Stat. 13) are 
     repealed.

     SEC. 2129. SPECIAL RULES FOR MODEL AIRCRAFT.

       (a) In General.--Chapter 448, as amended by section 2128 of 
     this Act, is further amended by inserting after section 44807 
     the following:

     ``Sec. 44808. Special rules for model aircraft

       ``(a) In General.--Notwithstanding any other provision of 
     law relating to the incorporation of unmanned aircraft 
     systems into Federal Aviation Administration plans and 
     policies, including this chapter, the Administrator of the 
     Federal Aviation Administration may not promulgate any new 
     rule or regulation regarding an unmanned aircraft operating 
     as a model aircraft, or an unmanned aircraft being developed 
     as a model aircraft, if--
       ``(1) the aircraft is flown strictly for hobby or 
     recreational use;
       ``(2) the aircraft is operated in accordance with a 
     community-based set of safety guidelines and within the 
     programming of a nationwide community-based organization;
       ``(3) not flown beyond visual line of sight of persons co-
     located with the operator or in direct communication with the 
     operator;
       ``(4) the aircraft is operated in a manner that does not 
     interfere with and gives way to any manned aircraft;
       ``(5) when flown within 5 miles of an airport, the operator 
     of the aircraft provides the airport operator, where 
     applicable, and the airport air traffic control tower (when 
     an air traffic facility is located at the airport) with prior 
     notice of the operation (model aircraft operators flying from 
     a permanent location within 5 miles of an airport should 
     establish a mutually agreed upon operating procedure with the 
     airport operator and the airport air traffic control tower 
     (when an air traffic facility is located at the airport)), 
     unless the Administrator determines approval should be 
     required;
       ``(6) the aircraft is flown from the surface to not more 
     than 400 feet in altitude, except under special conditions 
     and programs established by a community-based organization; 
     and
       ``(7) the operator has passed an aeronautical knowledge and 
     safety test administered by the Federal Aviation 
     Administration online for the operation of unmanned aircraft 
     systems subject to the requirements of section 44809 or 
     developed and administered by the community-based 
     organization and maintains proof of test passage to be made 
     available to the Administrator or law enforcement upon 
     request.
       ``(b) Updates.--
       ``(1) In general.--The Administrator, in collaboration with 
     government and industry stakeholders, including nationwide 
     community-based organizations, shall initiate a process to 
     update the operational parameters under subsection (a), as 
     appropriate.
       ``(2) Considerations.--In updating an operational parameter 
     under paragraph (1), the Administrator shall consider--
       ``(A) appropriate operational limitations to mitigate 
     aviation safety risk and risk to the uninvolved public;
       ``(B) operations outside the membership, guidelines, and 
     programming of a nationwide community-based organization;
       ``(C) physical characteristics, technical standards, and 
     classes of aircraft operating under this section;
       ``(D) trends in use, enforcement, or incidents involving 
     unmanned aircraft systems; and
       ``(E) ensuring, to the greatest extent practicable, that 
     updates to the operational parameters correspond to, and 
     leverage, advances in technology.
       ``(3) Savings clause.--Nothing in this subsection shall be 
     construed as expanding the authority of the Administrator to 
     require operators of model aircraft under the exemption of 
     this subsection to be required to seek permissive authority 
     of the Administrator prior to operation in the national 
     airspace system.
       ``(c) Statutory Construction.--Nothing in this section 
     shall be construed to limit the authority of the 
     Administrator to pursue enforcement action against persons 
     operating model aircraft.
       ``(d) Model Aircraft Defined.--In this section, the term 
     `model aircraft' means an unmanned aircraft that--
       ``(1) is capable of sustained flight in the atmosphere; and
       ``(2) is limited to weighing not more than 55 pounds, 
     including the weight of anything attached to or carried by 
     the aircraft, unless otherwise approved through a design, 
     construction, inspection, flight test, and operational safety 
     program administered by a community-based organization.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents for chapter 
     448, as amended by section 2128 of this Act, is further 
     amended by inserting after the item relating to section 44807 
     the following:

``44808. Special rules for model aircraft.''.

       (2) Special rule for model aircraft.--Section 336 of the 
     FAA Modernization and Reform Act of 2012 (49 U.S.C. 40101 
     note) and the item relating to that section in the table of 
     contents under section 1(b) of that Act (126 Stat. 13) are 
     repealed.

     SEC. 2130. UNMANNED AIRCRAFT SYSTEMS AERONAUTICAL KNOWLEDGE 
                   AND SAFETY.

       (a) In General.--Chapter 448, as amended by section 2129 of 
     this Act, is further amended by inserting after section 44808 
     the following:

     ``Sec. 44809. Aeronautical knowledge and safety test

       ``(a) In General.--An individual may not operate an 
     unmanned aircraft system unless--
       ``(1) the individual has successfully completed an 
     aeronautical knowledge and safety test under subsection (c);
       ``(2) the individual has authority to operate an unmanned 
     aircraft under other Federal law;
       ``(3) the individual is a holder of an airmen certificate 
     issued under section 44703; or
       ``(4) the individual is operating a model aircraft under 
     section 44808 and has successfully completed an aeronautical 
     knowledge and safety test in accordance with the community-
     based organizations safety program described in that section.
       ``(b) Exception.--This section shall not apply to the 
     operation of an unmanned aircraft system that has been 
     authorized by the Federal Aviation Administration under 
     section 44802, 44805, 44806, or 44807. The Administrator may 
     waive the requirements of this section for operators of 
     aircraft weighing less than 0.55 pounds or for operators 
     under the age of 13 operating the unmanned aircraft system 
     under the supervision of an adult as determined by the 
     Administrator.
       ``(c) Aeronautical Knowledge and Safety Test.--Not later 
     than 180 days after the date of enactment of the Federal 
     Aviation Administration Reauthorization Act of 2016, the 
     Administrator of the Federal Aviation Administration, in 
     consultation with manufacturers of unmanned aircraft systems, 
     other industry stakeholders, and community-based aviation 
     organizations, shall develop an aeronautical knowledge and 
     safety test that can be administered electronically.
       ``(d) Requirements.--The Administrator shall ensure that 
     the aeronautical knowledge and safety test is designed to 
     adequately demonstrate an operator's--
       ``(1) understanding of aeronautical safety knowledge, as 
     applicable; and
       ``(2) knowledge of Federal Aviation Administration 
     regulations and requirements pertaining to the operation of 
     an unmanned aircraft system in the national airspace system.
       ``(e) Record of Compliance.--
       ``(1) In general.--Each operator of an unmanned aircraft 
     system described under subsection (a) shall maintain and make 
     available for inspection, upon request by the Administrator 
     or a Federal, State, or local law enforcement officer, a 
     record of compliance with this section through--
       ``(A) an identification number, issued by the Federal 
     Aviation Administration certifying passage of the 
     aeronautical knowledge and safety test;
       ``(B) if the individual has authority to operate an 
     unmanned aircraft system under other Federal law, the 
     requisite proof of authority under that law; or
       ``(C) an airmen certificate issued under section 44703.
       ``(2) Coordination.--The Administrator may coordinate the 
     identification number under paragraph (1)(A) with an 
     operator's registration number to the extent practicable.
       ``(3) Limitation.--No fine or penalty may be imposed for 
     the initial failure of an operator of an unmanned aircraft 
     system to comply with paragraph (1) unless the Administrator 
     finds that the conduct of the operator actually posed a risk 
     to the national airspace system.''.
       (b) Table of Contents.--The table of contents for chapter 
     448, as amended by section 2129 of this Act, is further 
     amended by inserting after the item relating to section 44808 
     the following:

``44809. Aeronautical knowledge and safety test.''.

     SEC. 2131. SAFETY STATEMENTS.

       (a) In General.--Chapter 448, as amended by section 2130 of 
     this Act, is further amended by inserting after section 44809 
     the following:

     ``Sec. 44810. Safety statements

       ``(a) Prohibition.--Beginning on the date that is 1 year 
     after the date of publication of the guidance under 
     subsection (b)(1), it shall be unlawful for any person to 
     introduce or deliver for initial retail sale or introduction 
     into interstate commerce any unmanned aircraft manufactured 
     unless a safety statement is attached to the unmanned 
     aircraft or accompanying the unmanned aircraft in its 
     packaging.
       ``(b) Safety Statement.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Federal

[[Page S1926]]

     Aviation Administration Reauthorization Act of 2016, the 
     Administrator of the Federal Aviation Administration shall 
     issue guidance for implementing this section.
       ``(2) Requirements.--A safety statement described in 
     subsection (a) shall include--
       ``(A) information about laws and regulations applicable to 
     unmanned aircraft systems;
       ``(B) recommendations for using unmanned aircraft in a 
     manner that promotes the safety of persons and property;
       ``(C) the date that the safety statement was created or 
     last modified; and
       ``(D) language approved by the Administrator regarding the 
     following:
       ``(i) A person may operate the unmanned aircraft as a model 
     aircraft (as defined in section 44808) or otherwise in 
     accordance with Federal Aviation Administration authorization 
     or regulation, including requirements for the completion of 
     the aeronautical knowledge and safety test under section 
     44809.
       ``(ii) The definition of a model aircraft under section 
     44808.
       ``(iii) The requirements regarding a model aircraft under 
     paragraphs (1) through (7) of section 44808(a).
       ``(iv) The Administrator of the Federal Aviation 
     Administration may pursue enforcement action against a person 
     operating model aircraft who endangers the safety of the 
     national airspace system.
       ``(c) Civil Penalty.--A person who violates subsection (a) 
     shall be liable for each violation to the United States 
     Government for a civil penalty described in section 
     46301(a).''.
       (b) Table of Contents.--The table of contents for chapter 
     448, as amended by section 2130 of this Act, is further 
     amended by inserting after the item relating to section 44809 
     the following:

``44810. Safety statements.''.

     SEC. 2132. TREATMENT OF UNMANNED AIRCRAFT OPERATING 
                   UNDERGROUND.

       An unmanned aircraft system that is operated underground 
     for mining purposes shall not be subject to regulation or 
     enforcement by the Federal Aviation Administration under 
     chapter 448 of title 49, United States Code.

     SEC. 2133. ENFORCEMENT.

       (a) UAS Safety Enforcement.--The Administrator of the 
     Federal Aviation Administration shall establish a program to 
     utilize available remote detection and identification 
     technologies for safety oversight, including enforcement 
     actions against operators of unmanned aircraft systems that 
     are not in compliance with applicable Federal aviation laws, 
     including regulations.
       (b) Civil Penalties.--
       (1) In general.--Section 46301 is amended--
       (A) in subsection (a)(1)(A), by inserting ``chapter 448,'' 
     after ``chapter 447 (except sections 44717 and 44719-
     44723),'';
       (B) in subsection (a)(5), by inserting ``chapter 448,'' 
     after ``chapter 447 (except sections 44717-44723),'';
       (C) in subsection (d)(2), by inserting ``chapter 448,'' 
     after ``chapter 447 (except sections 44717 and 44719-
     44723),''; and
       (D) in subsection (f), by inserting ``chapter 448,'' after 
     ``chapter 447 (except 44717 and 44719-44723),''.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to limit the authority of the Administrator to 
     pursue an enforcement action for a violation of this Act, a 
     regulation prescribed or order or authority issued under this 
     Act, or any other applicable provision of aviation safety law 
     or regulation.
       (c) Reporting.--As part of the program, the Administrator 
     shall establish and publicize a mechanism for the public and 
     Federal, State, and local law enforcement to report a 
     suspected abuse or a violation of chapter 448 of title 49, 
     United States Code, for enforcement action.
       (d) Authorization of Appropriations.--To carry out this 
     section, there is authorized to be appropriated $5,000,000 
     for each of the fiscal years 2016 through 2017.

     SEC. 2134. AVIATION EMERGENCY SAFETY PUBLIC SERVICES 
                   DISRUPTION.

       (a) In General.--Chapter 463 is amended--
       (1) in section 46301(d)(2), by inserting ``section 46320,'' 
     after ``section 46319,''; and
       (2) by adding at the end the following:

     ``Sec. 46320. Interference with firefighting, law 
       enforcement, or emergency response activities

       ``(a) Prohibition.--No person may operate an aircraft so as 
     to interfere with firefighting, law enforcement, or emergency 
     response activities.
       ``(b) Definition.--For purposes of this section, an 
     aircraft interferes with the activities specified in 
     subsection (a) when its operation prevents the initiation of, 
     interrupts, or endangers a person or property engaged in 
     those activities.
       ``(c) Civil Penalty.--A person violating subsection (a) 
     shall be liable for a civil penalty of not more than $20,000.
       ``(d) Compromise and Setoff.--The United States Government 
     may deduct the amount of a civil penalty imposed or 
     compromised under this section from the amounts the 
     Government owes the person liable for the penalty.''.
       (b) Table of Contents.--The table of contents for chapter 
     463 is amended by inserting after the item relating to 
     section 46319 the following:

``46320. Interference with firefighting, law enforcement, or emergency 
              response activities.''.

     SEC. 2135. PILOT PROJECT FOR AIRPORT SAFETY AND AIRSPACE 
                   HAZARD MITIGATION.

       (a) In General.--The Administrator of the Federal Aviation 
     Administration shall carry out a pilot program for airspace 
     hazard mitigation at airports and other critical 
     infrastructure.
       (b) Consultation.--In carrying out the pilot program under 
     subsection (a), the Administrator shall work with the 
     Secretary of Defense, Secretary of Homeland Security, and the 
     heads of relevant Federal agencies for the purpose of 
     ensuring technologies that are developed, tested, or deployed 
     by those departments and agencies to mitigate threats posed 
     by errant or hostile unmanned aircraft system operations do 
     not adversely impact or interfere with safe airport 
     operations, navigation, and air traffic services.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated from the Airport and Airway Trust Fund to 
     carry out this section $6,000,000, to remain available until 
     expended.

     SEC. 2136. CONTRIBUTION TO FINANCING OF REGULATORY FUNCTIONS.

       (a) In General.--Chapter 448, as amended by section 2131 of 
     this Act, is further amended by inserting after section 44810 
     the following:

     ``Sec. 44811. Regulatory and administrative fees

       ``(a) In General.--Subject to subsection (b), the 
     Administrator may assess and collect regulatory and 
     administrative fees to recover the costs of regulatory and 
     administrative activities under this chapter related to 
     authorization to operate unmanned aircraft systems for 
     compensation or hire, or in the furtherance of a business 
     enterprise.
       ``(b) Limitations.--Fees authorized under subsection (a) 
     shall be reasonable, cost-based relative to the regulatory or 
     administrative activity, and may not be discriminatory or a 
     deterrent to compliance.
       ``(c) Receipts Credited to Account.--Notwithstanding 
     section 3302 of title 31, all fees and amounts collected 
     under this section shall be credited to the separate account 
     established under section 45303(c). Section 41742 shall not 
     apply to fees and amounts collected under this section.
       ``(d) Regulations.--Not later than 1 year after the date of 
     enactment of the Federal Aviation Administration 
     Reauthorization Act of 2016, the Administrator shall issue 
     regulations to carry out this section.''.
       (b) Table of Contents.--The table of contents for chapter 
     448, as amended by section 2131 of this Act, is further 
     amended by inserting after the item relating to section 44810 
     the following:

``44811. Regulatory and administrative fees.''.

     SEC. 2137. SENSE OF CONGRESS REGARDING SMALL UAS RULEMAKING.

       It is the sense of the Congress that the Administrator of 
     the Federal Aviation Administration and Secretary of 
     Transportation should take every necessary action to expedite 
     final action on the notice of proposed rulemaking dated 
     February 23, 2015 (80 Fed. Reg. 9544), entitled ``Operation 
     and Certification of Small Unmanned Aircraft Systems''.

     SEC. 2138. UNMANNED AIRCRAFT SYSTEMS TRAFFIC MANAGEMENT.

       (a) Research Plan for UTM Development.--
       (1) In general.--The Administrator of the Federal Aviation 
     Administration, in coordination with the Administrator of the 
     National Aeronautics and Space Administration, shall develop 
     a research plan for unmanned aircraft systems traffic 
     management (referred to in this section as ``UTM'') 
     development.
       (2) Requirements.--In developing the research plan under 
     paragraph (1), the Administrator shall--
       (A) identify research goals related to:
       (i) operational parameters related to altitude, geographic 
     coverage, classes of airspace, and critical infrastructure;
       (ii) avionics capability requirements or standards;
       (iii) operator identification and authentication 
     requirements and capabilities;
       (iv) communication protocols with air traffic control 
     facilities that will not interfere with existing 
     responsibility to deconflict manned aircraft in the national 
     airspace system;
       (v) collision avoidance requirements;
       (vi) separation standards for manned and unmanned aircraft; 
     and
       (vii) spectrum needs;
       (B) evaluate options for the administration and management 
     structure for the traffic management of low altitude 
     operations of small unmanned aircraft systems; and
       (C) ensure the plan is consistent with the broader Federal 
     Aviation Administration regulatory and operational framework 
     encompassing all unmanned aircraft systems operations 
     expected to be authorized in the national airspace system.
       (3) Assessment.--The research plan under paragraph (1) 
     shall include an assessment of--
       (A) the ability to allow near-term small unmanned aircraft 
     system operations without need of an automated UTM system;
       (B) the full range of operational capability any automated 
     UTM system should possess;
       (C) the operational characteristics and metrics that would 
     drive incremental adoption of automated capability and 
     procedures consistent with a rising aggregate community 
     demand for service for low altitude operations of small 
     unmanned aircraft systems; and

[[Page S1927]]

       (D) the integration points for small unmanned aircraft 
     system traffic management with the existing national airspace 
     system planning and traffic management systems.
       (4) Deadlines.--The Administrator shall--
       (A) initiate development of the research plan not later 
     than 90 days after the date of enactment of this Act; and
       (B) not later than 180 days after the date of enactment of 
     this Act--
       (i) complete the research plan;
       (ii) submit the research plan to the appropriate committees 
     of Congress; and
       (iii) publish the research plan on the Federal Aviation 
     Administration's Web site.
       (b) Pilot Program.--Not later than 120 days after the date 
     the research plan under subsection (a) is submitted under 
     paragraph (4)(B) of that subsection, the Administrator of the 
     Federal Aviation Administration shall--
       (1) coordinate with the Administrator of the National 
     Aeronautics and Space Administration and the small unmanned 
     aircraft systems industry to develop operational concepts and 
     top-level system requirements for a UTM system pilot program, 
     consistent with subsection (a);
       (2) designate areas encompassing airspace over rural, 
     suburban, and urban areas for operation of the pilot program, 
     as determined necessary;
       (3) issue a solicitation for operational prototype systems 
     that meet the necessary objectives for use in a pilot program 
     to demonstrate, validate, or modify, as appropriate, the 
     requirements developed under paragraph (1);
       (4) give due consideration to the use of the facilities at 
     the National Aeronautics and Space Administration, the test 
     sites under section 44802 of title 49, United States Code, as 
     added by section 2122, the Center of Excellence for Unmanned 
     Aircraft Systems, and the Pathfinder Cooperative Research and 
     Development Agreements, in designating areas under paragraph 
     (2) and in selecting service providers pursuant to the 
     solicitation in paragraph (3); and
       (5) complete the pilot program not later than two years 
     after the date the solicitation under paragraph (3) has been 
     issued.
       (c) Comprehensive Plan.--
       (1) In general.--Not later than 270 days after the date the 
     pilot program under subsection (b) is complete, the 
     Administrator of the Federal Aviation Administration, in 
     coordination with the Administrator of the National 
     Aeronautics and Space Administration, and in consultation 
     with the head of each relevant Federal agency, shall develop 
     a comprehensive plan for the deployment of UTM systems in the 
     national airspace.
       (2) System requirements.--The comprehensive plan under 
     paragraph (1) shall include requirements or standards 
     consistent with established or planned rulemaking for, at a 
     minimum--
       (A) the flight of small unmanned aircraft systems in 
     controlled and uncontrolled airspace;
       (B) communications, as applicable--
       (i) among small unmanned aircraft systems;
       (ii) between small unmanned aircraft systems and manned 
     aircraft operating in the same airspace; and
       (iii) between small unmanned aircraft systems and air 
     traffic control as considered necessary; and
       (C) air traffic management for small unmanned aircraft 
     systems operations.
       (d) System Implementation.--Based on the comprehensive plan 
     under subsection (c), including the requirements under 
     paragraph (2) of that subsection, and the pilot program under 
     subsection (b), the Administrator shall--
       (1) determine and implement a schedule for initiation and 
     evolutionary use of a UTM in the national airspace to safely 
     separate and deconflict manned and unmanned aircraft systems;
       (2) designate UTM system airspace; and
       (3) select service providers to support the UTM system, if 
     deemed appropriate.
                                 ______