ARTICLE 1. Accident Liability Protection [5500. - 5513.]

Cal. Public Utilities Code - PUC 1.

in effect

Cal. Public Utilities Code - PUC § 5500. Section 5500.

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, sporting, or recreational purposes.

Cal. Public Utilities Code - PUC § 5501. Section 5501.

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, sporting, or recreational purposes.

Cal. Public Utilities Code - PUC § 5502. Section 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.

Cal. Public Utilities Code - PUC § 5503. Section 5503.

(a) All commercial air operators shall maintain in force at least one million dollars ($1,000,000) of liability insurance for personal injury, wrongful death, and property damage resulting from the operation of an aircraft pursuant to this article, with additional liability coverage of one hundred thousand dollars ($100,000) for each passenger for any aircraft covered by this article. (b) This section shall become operative on July 1, 2018.

Cal. Public Utilities Code - PUC § 5504. Section 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.

Cal. Public Utilities Code - PUC § 5506. Section 5506.

(a) All commercial air operators 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. (b) All commercial air operators shall also provide the city, county, or city and county a currently effective certificate of insurance evidencing insurance coverage as required in Section 5503. 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. A city, county, or city and county may charge a reasonable fee for purposes of carrying out the provisions of this subdivision. (c) This section shall become operative on July 1, 2018.

Cal. Public Utilities Code - PUC § 5508. Section 5508.

(a) The protection against liability shall be continued in effect so long as the commercial air operator continues to offer his or her services for compensation. The policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the city, county, or city and county, except in the event of cessation of operations as a commercial air operator. (b) This section shall become operative on July 1, 2018.

Cal. Public Utilities Code - PUC § 5510. Section 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.

Cal. Public Utilities Code - PUC § 5511. Section 5511.

(a) Notwithstanding the provisions of Section 5506, a city, county, or city and county 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 adopted therefor by the applicable jurisdiction. (b) This section shall become operative on July 1, 2018.

Cal. Public Utilities Code - PUC § 5512. Section 5512.

(a) Following an administrative hearing, a city, county, or city and county may impose a penalty of not exceeding one thousand dollars ($1,000) upon any commercial air operator who fails to file the evidence of liability protection required by this article. (b) This section shall become operative on July 1, 2018.

Cal. Public Utilities Code - PUC § 5513. Section 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 shall maintain in force at least one million dollars ($1,000,000) 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 ($100,000) 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 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 shall prominently display the license only within the city or county of 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 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.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026