Drone Federalism Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Drone Federalism Act of 2017''.

SEC. 2. PRESERVATION OF STATE, LOCAL, AND TRIBAL AUTHORITIES WITH 
              RESPECT TO UNMANNED AIRCRAFT SYSTEMS.

    (a) Scope of Preemption for Civil Unmanned Aircraft Regulations.--
In prescribing regulations or standards related to civil unmanned 
aircraft systems, the Administrator shall--
            (1) define the scope of the preemptive effect of such 
        regulations or standards pursuant to section 40103 or 41713 of 
        title 49, United States Code, which shall be limited to the 
        extent necessary to ensure the safety and efficiency of the 
        national airspace system for interstate commerce; and
            (2) preserve, to the greatest extent practicable, 
        legitimate interests of State, local, and tribal governments, 
        including--
                    (A) protecting public safety;
                    (B) protecting personal privacy;
                    (C) protecting property rights;
                    (D) managing land use; and
                    (E) restricting nuisances and noise pollution.
    (b) Reserved Powers.--
            (1) In general.--In prescribing regulations or standards 
        related to civil unmanned aircraft systems, the Administrator 
        shall ensure that the authority of a State, local, or tribal 
        government to issue reasonable restrictions on the time, 
        manner, and place of operation of a civil unmanned aircraft 
        system that is operated below 200 feet above ground level or 
        within 200 feet of a structure is not preempted.
            (2) Reasonable restrictions.--For purposes of paragraph 
        (1), reasonable restrictions on the time, manner, and place of 
        operation of a civil unmanned aircraft system include the 
        following:
                    (A) Limitations on speed.
                    (B) Prohibitions or limitations on operations in 
                the vicinity of schools, parks, roadways, bridges, or 
                other public or private property.
                    (C) Restrictions on operations at certain times of 
                the day or week or on specific occasions such as during 
                parades or sporting events.
                    (D) Prohibitions on operations while the operator 
                is under the influence of drugs or alcohol.
                    (E) Prohibitions on careless or reckless 
                operations.
                    (F) Other prohibitions that protect public safety, 
                personal privacy, or property rights, or that manage 
                land use or restrict noise pollution.

SEC. 3. PRESERVATION OF PRIVATE PROPERTY RIGHTS.

    (a) Affirmation of Applicability of Constitutional Takings Clause 
to Federal Aviation Administration Regulations.--In prescribing 
regulations or standards related to civil unmanned aircraft systems, 
the Administrator shall not authorize the operation of a civil unmanned 
aircraft in the immediate reaches of the airspace above property 
without permission of the property owner.
    (b) Affirmation of Applicability of Constitutional Takings Clause 
Absent Federal Aviation Administration Regulations.--Section 336(a) of 
the FAA Modernization and Reform Act of 2012 (Public Law 112-95; 49 
U.S.C. 40101 note) is amended--
            (1) in paragraph (4), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) when flown in the immediate reaches of the airspace 
        above property (as defined in section 3(c) of the Drone 
        Federalism Act of 2017), the operator has the permission of the 
        property owner.''.
    (c) Definition.--In this section, the term ``immediate reaches of 
the airspace above property'', with respect to the operation of a civil 
unmanned aircraft system, includes--
            (1) any area within 200 feet above the ground level of the 
        property;
            (2) any area within 200 feet above any structure on the 
        property; and
            (3) any area where operation of the aircraft system could 
        interfere with the enjoyment or use of the property.

SEC. 4. PILOT PROGRAM ON FEDERAL PARTNERSHIPS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Administrator shall enter into agreements 
with not more than 10 State, local, or tribal governments to establish 
pilot programs under which--
            (1) the Administrator shall provide technical assistance to 
        such governments in regulating the operation of civil unmanned 
        aircraft systems, including through the use of the latest 
        available technologies; and
            (2) the Administrator and such governments shall coordinate 
        efforts with respect to the enforcement of regulations relating 
        to the operation of civil unmanned aircraft systems.
    (b) Selection.--In selecting among State, local, and tribal 
governments for purposes of establishing pilot programs under 
subsection (a), the Administrator shall seek to enter into agreements 
with--
            (1) governments that vary in their size and intended 
        approach to regulation of civil unmanned aircraft systems; and
            (2) not less than one State government, not less than one 
        county government, not less than one city government, and not 
        less than one tribal government.
    (c) Unmanned Aircraft Systems Traffic Management System.--The 
Administrator shall coordinate with Administrator of the National 
Aeronautics and Space Administration to ensure that participants in 
pilot programs established under subsection (a) are consulted in the 
development of the unmanned aircraft systems traffic management system 
under subsection (a) section 2208 of the FAA Extension, Safety, and 
Security Act of 2016 (Public Law 114-190; 49 U.S.C. 40101 note) and the 
pilot program under subsection (b) of that section.
    (d) Report Required.--Not later than 2 years after establishing the 
pilot programs required by subsection (a), the Administrator shall 
submit to Congress, and make available to the public, a report 
identifying best practices for State, local, and tribal governments to 
regulate the operation of civil unmanned aircraft systems and to 
collaborate with the Federal Aviation Administration with respect to 
the regulation of such systems.

SEC. 5. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed--
            (1) to diminish or expand the preemptive effect of the 
        authority of the Federal Aviation Administration with respect 
        to manned aviation; or
            (2) to affect the civil or criminal jurisdiction of--
                    (A) any Indian tribe relative to any State or local 
                government; or
                    (B) any State or local government relative to any 
                Indian tribe.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
            (2) Civil.--The term ``civil'', with respect to an unmanned 
        aircraft system, means that the unmanned aircraft is not a 
        public aircraft (as defined in section 40102 of title 49, 
        United States Code).
            (3) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (4) Local government.--The term ``local'', with respect to 
        a government, means the government of a subdivision of a State.
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and the territories and 
        possessions of the United States.
            (6) Tribal government.--The term ``tribal'', with respect 
        to a government, means the governing body of an Indian tribe.
            (7) Unmanned aircraft; unmanned aircraft system.--The terms 
        ``unmanned aircraft'' and ``unmanned aircraft system'' have the 
        meanings given those terms in section 331 of the FAA 
        Modernization and Reform Act of 2012 (Public Law 112-95; 49 
        U.S.C. 40101 note).

Summary: Drone Federalism Act of 2017 This bill requires the Federal Aviation Administration, in prescribing regulations or standards related to unmanned aircraft systems, to:  define, and limit the scope of, the preemptive effect of such regulations or standards;  preserve the legitimate interests of state, local, and tribal governments (e.g., protecting public safety);  preserve state, local, and tribal authority to issue certain reasonable restrictions on the operation of a civil unmanned aircraft system within 200 feet of the ground or a structure;  authorize, only with a property owner's permission, the operation of a civil unmanned aircraft in the immediate reaches of the airspace above private property; and  establish pilot programs with state, local, and tribal governments to regulate the operation of civil unmanned aircraft systems, coordinate enforcement efforts with respect to such regulations, and identify best practices.