2007 California Public Utilities Code Article 1. Accident Liability Protection

CA Codes (puc:5500-5513)

5500.  (a) As used in this article, "commercial air operator" means
any person owning, controlling, operating, renting, or managing
aircraft for any commercial purpose for compensation.  "Commercial
air operator" does not include any person owning, controlling,
operating, renting, managing, furnishing, or otherwise providing
transportation by hot air balloon for entertainment or recreational
purposes.
   (b) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2009, deletes or extends
that date.


5500.  (a) As used in this article, "commercial air operator" means
any person owning, controlling, operating, renting, or managing
aircraft for any commercial purpose for compensation.
   (b) This section shall become operative on January 1, 2009.




5501.  (a) As used in this article, "aircraft" means any contrivance
used for navigation of, or flight in, the air.  "Aircraft" does not
include a hot air balloon furnished or providing transportation for
entertainment or recreational purposes.
   (b) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2009, deletes or extends
that date.


5501.  (a) As used in this article, "aircraft" means any contrivance
used for navigation of, or flight in, the air.
   (b) This section shall become operative on January 1, 2009.




5502.  As used in this article, "person" means any individual, firm,
partnership, private, municipal or public corporation, limited
liability company, company, association, joint stock association,
trustee, receiver, assignee, or other similar representative.




5503.  The Public Utilities Commission shall require every
commercial air operator to procure, and continue in effect so long as
the commercial air operator continues to offer his services for
compensation, adequate protection against liability imposed by law
upon a commercial air operator and also upon any person using,
operating or renting an aircraft with the permission, expressed or
implied, of a commercial air operator for the payment of damages for
personal bodily injuries, including death resulting therefrom, and
property damage as a result of an accident.



5503.5.  Notwithstanding the provisions of Section 5503, the
commission shall require less accident insurance than that required
of commercial air operators pursuant to Section 5503, of persons who
fulfill all the following requirements:
   (a) That conduct nonstop sightseeing flights that begin and end at
the same airport and are conducted within a 25-mile radius of that
airport.
   (b) Engage in passenger-carrying airlift sponsored by a charitable
organization, and for which the passengers make a donation to the
organization.
   (c) The flight is conducted from a public airport adequate for the
aircraft used, or from another airport that has been approved for
the operation by a Federal Aviation Administration inspector.
   (d) Each pilot in command has logged at least 200 hours of flight
time within the previous four years.
   (e) No acrobatic or formation flights are conducted.
   (f) Each aircraft used is certificated in the standard category
and complies with the 100-hour inspection requirement of Title 14,
Code of Federal Regulations, Section 91.169.
   (g) The flight is made under visual flying rules during the day.



5504.  This article does not apply to any person licensed under
Article 1 (commencing with Section 11701) of Chapter 4 of Division 6
of the Food and Agricultural Code with respect to that person's
operation of an aircraft for the purpose  of applying pest control
materials or substances by dusting, spraying, or any other manner
whereby the materials or substances are applied through the medium of
aircraft.  That person is subject to Article 2 (commencing with
Section 11931) of Chapter 5 of Division 6 of the Food and
Agricultural Code with respect to that aircraft operation.



5505.  The commission shall, after a public hearing, set the amount
of liability insurance, required by Section 5503, which is reasonably
necessary to provide adequate compensation for damage incurred
through an accident involving a commercial air operator.




5506.  The protection required under Section 5503 shall be evidenced
either by the deposit with the commission, covering each aircraft
used or to be used in commercial operations for compensation, of:
   (a) A copy of the policy of insurance, issued by a company
licensed to write such insurance in the State; or
   (b) A bond of a surety company licensed to write surety bonds in
the State.
   (c) Such evidence of the qualification of the commercial air
operator as a self-insurer as may be authorized by the commission.



5507.  With the consent of the commission a copy of an insurance
policy, certified by the company issuing it to be a true copy of the
original policy, or a photostatic copy thereof, or an abstract of the
provisions of the policy, or a certificate of insurance issued by
the company issuing the policy, may be filed with the commission in
lieu of the original or a duplicate or counterpart of the policy.




5508.  The protection against liability shall be continued in effect
so long as the commercial air operator continues to offer his
services for compensation.  The policy of insurance or surety bond
shall not be cancelable on less than thirty (30) days written notice
to the commission, except in the event of cessation of operations as
a commercial air operator.



5509.  The commission may establish such rules as are necessary to
enforce this article.



5510.  Any commercial air operator who knowingly refuses or fails to
procure protection against liability, as required by Section 5503,
is guilty of a misdemeanor.



5511.  Notwithstanding the provisions of Section 5506, the
commission shall have the authority to accept policies of insurance
written by nonadmitted insurers subject to Section 1763 of the
Insurance Code of this State, provided that the policies of insurance
shall meet the rules and regulations promulgated therefor by the
commission.



5512.  Following an administrative hearing, the commission may
impose a penalty of not exceeding one thousand dollars (,000) upon
any commercial air operator who fails to file the evidence of
liability protection required by this article.




5513.  (a) Notwithstanding any other provision of this article, any
person owning, controlling, operating, renting, managing, furnishing,
or otherwise providing transportation by hot air balloon for hire,
for entertainment or recreational purposes, shall  maintain in force
at least one million dollars (,000,000) of liability insurance for
personal injury, wrongful death, and property damage resulting from
the operation of a balloon carrying up to 10 passengers, with
additional liability coverage of one hundred thousand dollars
(0,000) for each passenger for any balloon carrying more than 10
passengers.  A notice shall be provided to every passenger that
identifies both the insurer providing a policy of liability insurance
to the person providing that transportation and the amount of
insurance coverage provided by that policy.
   (b) Any person owning, controlling, operating, renting, managing,
furnishing, or otherwise providing transportation by hot air balloon
for hire, for entertainment or recreational purposes, shall comply
with any requirement of a city, county, or city and county that the
person obtain a business license as a condition for operating in that
city, county, or city and county.  Whenever a city, county, or city
and county requires a business license, any person owning,
controlling, operating, renting, managing, furnishing, or otherwise
providing transportation by hot air balloon for hire, for
entertainment or recreational purposes, shall prominently display the
license at the person's primary place of business frequented by
customers and potential customers.  Whenever a city, county, or city
and county requires a business license, the person shall provide to
the city, county, or city and county, a currently effective
certificate of insurance evidencing insurance coverage as required in
subdivision (a).  A new certificate of insurance shall be provided
to the city, county, or city and county, at least annually or
whenever there is a material change in insurance coverage.  A city,
county, or city and county shall give reasonable notice of this
requirement with any business license renewal notification.  Every
business license issued by a city, county, or city and county to any
person owning, controlling, operating, renting, managing, furnishing,
or otherwise providing transportation by hot air balloon for hire,
for entertainment or recreational purposes, and every currently
effective certificate of insurance evidencing insurance coverage,
shall be maintained as a public record.  The city, county, or city
and county may charge a reasonable fee for purposes of carrying out
the provisions of this subdivision.
   (c) Any person who violates subdivision (a) by failing to maintain
insurance in force as required by subdivision (a) is guilty of a
misdemeanor.  Any person who violates subdivision (b) by failing to
obtain and maintain a current valid city, county, or city and county
business license issued by the local government jurisdiction where
the person's primary place of business is located, in accordance with
subdivision (b), is guilty of a misdemeanor.
   (d) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2009, deletes or extends
that date.