S.Amdt. 3656

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.
______