SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commercial UAS Modernization Act''.

SEC. 2. INTERIM RULE FOR THE OPERATION OF SMALL UNMANNED AIRCRAFT FOR 
              COMMERCIAL PURPOSES.

    (a) In General.--Subtitle B of title III of the FAA Modernization 
and Reform Act of 2012 (Public Law 112-95) is amended by adding at the 
end the following:

``SEC. 337. OPERATION OF SMALL UNMANNED AIRCRAFT FOR COMMERCIAL 
              PURPOSES.

    ``(a) In General.--An individual may operate a small unmanned 
aircraft for commercial purposes without an airworthiness certificate 
within the United States, subject to the requirements under subsection 
(b) and the operating restrictions under subsection (c) during the 
period beginning on the date of the enactment of the Commercial UAS 
Modernization Act and ending on the effective date of a final rule 
based on the notice of proposed rulemaking issued on February 23, 2015, 
entitled `Operation and Certification of Small Unmanned Aircraft 
Systems' (80 Fed. Reg. 9544).
    ``(b) General Requirements.--
            ``(1) Liability insurance.--A small unmanned aircraft may 
        not be operated for commercial purposes during the period set 
        forth in subsection (a) unless the Administrator receives an 
        attestation that the owner of such aircraft has a liability 
        insurance policy covering the operation of such aircraft.
            ``(2) Registration.--A small unmanned aircraft may not be 
        operated for commercial purposes unless the owner has 
        registered the aircraft as required by the Federal Aviation 
        Administration.
            ``(3) Testing requirements.--
                    ``(A) Exam development.--Not later than 30 days 
                after the date of the enactment of the Commercial UAS 
                Modernization Act, the Administrator of the Federal 
                Aviation Administration shall develop an initial 
                aeronautical knowledge test that meets the requirements 
                set forth in the notice of proposed rulemaking referred 
                to in subsection (a).
                    ``(B) Requirements.--An individual may not operate 
                a small unmanned aircraft for commercial purposes 
                unless such individual has--
                            ``(i) received a passing grade on the test 
                        developed under subparagraph (A);
                            ``(ii) passed a proficiency test 
                        administered by a test site selected pursuant 
                        to section 332(c); and
                            ``(iii) demonstrated the ability to fly the 
                        aircraft in accordance with the operating 
                        restrictions set forth in subsection (c).
            ``(4) Certification.--A small unmanned aircraft may not be 
        operated for commercial purposes until the operator of a test 
        site selected pursuant to section 332(c), in collaboration with 
        a designated airworthiness representative, certifies that the 
        small unmanned aircraft--
                    ``(A) meets the requirements for small unmanned 
                aircraft set forth in the notice of proposed rulemaking 
                referred to in subsection (a); and
                    ``(B) is capable of operating within the limits 
                described in subsection (c).
    ``(c) Operating Restrictions.--During the period set forth in 
subsection (a), small unmanned aircraft operated for commercial 
purposes--
            ``(1) may only be operated under visual line of sight 
        rules;
            ``(2) may not be operated higher than 500 feet above ground 
        level;
            ``(3) may not be operated unless the operator has prior 
        authorization from the air traffic control facility having 
        jurisdiction over that airspace--
                    ``(A) in Class B, Class C, or Class D airspace; or
                    ``(B) within the lateral boundaries of the surface 
                area of Class E airspace designated for an airport;
            ``(4) may only be operated in daylight conditions;
            ``(5) shall yield right of way to all other users of the 
        National Airspace System;
            ``(6) may not be operated by any individual with any 
        physical or mental condition that the individual knows, or has 
        reason to know, would interfere with the safe operation of the 
        aircraft; and
            ``(7) may only be operated after a preflight inspection (as 
        described in the notice of proposed rulemaking referred to in 
        subsection (a)).
    ``(d) Accident Reporting.--The operator of a small unmanned 
aircraft that is involved in any accident causing personal injury or 
property damage, other than to the small unmanned aircraft, shall 
report such accident to the Federal Aviation Administration not later 
than 2 days after such accident.

``SEC. 338. MICRO UAS OPERATIONS.

    ``(a) Micro UAS Classification.--The Administrator of the Federal 
Aviation Administration shall provide for a micro UAS classification of 
unmanned aircraft systems, the aircraft component of which may not 
weigh more than 4.4 pounds, including payload.
    ``(b) Micro UAS Operational Limitations.--The operation of a micro 
UAS shall be subject to the exemptions under subsection (c) only if the 
micro UAS is operated--
            ``(1) less than 400 feet above ground level;
            ``(2) at an airspeed of not greater than 40 knots;
            ``(3) within the visual line of sight of the operator;
            ``(4) during daylight; and
            ``(5) at least 5 statute miles from the geographic center 
        of an airport as denoted on a current aeronautical chart 
        published by the Federal Aviation Administration, except that 
        upon notice to the airport operator and air traffic control 
        tower, such airport operator may allow an individual to operate 
        a micro UAS within 5 statute miles of a tower-controlled 
        airport.
    ``(c) Micro UAS Exemptions.--
            ``(1) An operator of a micro UAS that complies with the 
        limitations of operation under subsection (b) shall not be 
        required to pass any aeronautical knowledge test or meet any 
        age or experience requirement, including any requirements under 
        section 44703 of title 49, United States Code, part 61 of title 
        14, Code of Federal Regulations, and any other rule or 
        regulation pertaining to airman certification.
            ``(2) A micro UAS and the component parts and equipment of 
        such micro UAS shall not be required to meet airworthiness 
        certification standards or to obtain certificates of 
        airworthiness.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the FAA Modernization and Reform Act of 2012 is amended by inserting 
after the item relating to section 336 the following:

``Sec. 337. Operation of small unmanned aircraft for commercial 
                            purposes.
``Sec. 338. Micro UAS operations.''.

SEC. 3. DEPUTY ASSOCIATE ADMINISTRATOR FOR UNMANNED AIRCRAFT.

    (a) In General.--Subtitle B of title III of the FAA Modernization 
and Reform Act of 2012 (Public Law 112-95), as amended by section 2(a), 
is further amended by adding at the end the following:

``SEC. 339. DEPUTY ASSOCIATE ADMINISTRATOR FOR UNMANNED AIRCRAFT.

    ``(a) Appointment.--The Administrator of the Federal Aviation 
Administration (referred to in this section as the `Administrator') 
shall appoint a Deputy Associate Administrator for Unmanned Aircraft 
(referred to in this section as the `Deputy Associate Administrator'), 
who shall report to the Administrator and to the Secretary of 
Transportation.
    ``(b) Principal Duties.--The Deputy Associate Administrator shall 
create an achievable comprehensive research and development plan for 
the safe integration of unmanned aircraft into the National Airspace 
System that--
            ``(1) takes into account work being done at other Federal 
        agencies, in conjunction with their industry collaborators;
            ``(2) is based on an initial audit of current unmanned 
        aircraft activity across the Federal Government in order to 
        identify gaps and overlaps; and
            ``(3) allows for programmatic exemptions based on previous 
        analysis.
    ``(c) Other Issues.--The Deputy Associate Administrator, in 
consultation with the Administrator, shall develop strategies for 
resolving--
            ``(1) unmanned aircraft spectrum issues;
            ``(2) barriers to unmanned aircraft operating beyond line 
        of sight;
            ``(3) barriers to allowing payload carriage and the 
        feasibility of developing a classification of small UAS air 
        carriers; and
            ``(4) barriers to utilizing automated unmanned aircraft 
        systems.
    ``(d) Exemptions.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of the Commercial UAS Modernization Act, the 
        Deputy Associate Administrator, in consultation with the 
        Administrator, shall expedite and expand exemptions from the 
        interim operating restrictions otherwise applicable to unmanned 
        aircraft under section 337.
            ``(2) Exemptions.--The exemptions authorized under 
        paragraph (1) may include--
                    ``(A) beyond line of sight operations;
                    ``(B) programmatic exemptions based on previous 
                analysis;
                    ``(C) extended visual line of sight and marginal 
                visual flight rules weather conditions; and
                    ``(D) heavier unmanned vehicles.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the FAA Modernization and Reform Act of 2012 is amended by inserting 
after the item relating to section 338, as added by section 2(b), the 
following:

``Sec. 339. Deputy Associate Administrator for Unmanned Aircraft.''.

SEC. 4. JOINT AIRCRAFT SYSTEM RESEARCH AND DEVELOPMENT DATA COLLECTION 
              AND ANALYSIS PROGRAM.

    (a) Establishment.--The Administrator of the Federal Aviation 
Administration shall establish a joint aircraft system research and 
development data collection and analysis program at the William J. 
Hughes Technical Center (referred to in this section as the 
``Center'').
    (b) Research and Development Priorities.--The Director of the 
Center shall set priorities for data collection, analysis, and research 
under the program established under subsection (a), including 
identifying safety standards for detect and avoid, command and control, 
autonomous aircraft systems, and air traffic management for beyond 
visual line of sight operations for such aircraft.
    (c) Use of Test Sites.--The program established under subsection 
(a) shall utilize the 6 unmanned aircraft system test sites of the 
Federal Aviation Administration to--
            (1) conduct research;
            (2) collect data;
            (3) develop quarterly milestones to expedite commercial 
        unmanned aircraft system operations; and
            (4) work with other Federal agencies, the Center of 
        Excellence for Unmanned Aircraft Systems, federally funded 
        research and development centers, industry, academia, and 
        others, as appropriate, to implement commercial unmanned 
        aircraft system operations.
    (d) Air Traffic Management Pilot Program.--
            (1) Implementation.--The Administrator of the Federal 
        Aviation Administration, acting through the Center, and the 
        Administrator of the National Aeronautics and Space 
        Administration, shall implement an air traffic management pilot 
        program to research and test a new regulatory structure for 
        commercial and other operations of small unmanned aircraft in 
        controlled and uncontrolled airspace below 1,200 feet above 
        ground level.
            (2) Management testing.--The Center shall partner with a 
        neutral third party to test the management of small unmanned 
        aircraft in the airspace described in paragraph (1).
    (e) Report.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the Director of 
the Center shall submit a report that summarizes the actions taken 
under subsections (b), (c), and (d) to--
            (1) the Committee on Commerce, Science, and Transportation 
        of the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on Transportation and Infrastructure of 
        the House of Representatives; and
            (4) the Committee on Appropriations of the House of 
        Representatives.
Commercial UAS Modernization Act This bill amends the FAA Modernization and Reform Act of 2012 to permit an individual to operate a small commercial unmanned aircraft without an airworthiness certificate within the United States until the effective date of a final rule based on the notice of proposed rulemaking &quot;Operation and Certification of Small Unmanned Aircraft Systems&quot; issued on February 23, 2015, subject to the following requirements:   the Federal Aviation Administration (FAA) must receive an attestation that the aircraft owner has liability insurance covering its operation;  the owner must register the aircraft; the operator must pass an initial aeronautical knowledge test developed by the FAA and a proficiency test administered by a test site for such aircraft;  the aircraft may be operated for commercial purposes only in daylight conditions, under visual line of sight rules, lower than 500 feet above ground level, and only after a preflight inspection; and  the aircraft shall yield right of way to all other users of the National Airspace System.  Such an aircraft may not be operated: (1) until the operator of a test site certifies that it meets the requirements in the rulemaking notice and can operate within such restrictions; (2) unless the operator has prior authorization from the air traffic control facility having jurisdiction over the Class B, Class C, or Class D airspace or within the lateral boundaries of the surface area of Class E airspace designated for an airport; and (3) by any individual with any physical or mental condition that would interfere with safe operation of the aircraft. The operator of a such an aircraft involved in an accident causing personal injury or property damage must report it to the FAA within two days. The FAA shall provide for a micro UAS classification of unmanned aircraft systems, the aircraft component of which may not weigh more than 4.4 pounds, including payload. The operation of such a micro shall be subject to specified restrictions. The bill directs the FAA to:   appoint a Deputy Associate Administrator for Unmanned Aircraft who shall create a research and development plan for the safe integration of unmanned aircraft into the National Airspace System; establish a joint aircraft system research and development data collection and analysis program at the William J. Hughes Technical Center; and implement an air traffic management pilot program to research and test a new regulatory structure for operations of such aircraft in airspace below 1,200 feet. 
Commercial UAS Modernization Act