Bill > SB791

This bill requires commercial operators of unmanned aircraft systems (drones) in Oregon to maintain liability insurance, with the amount of required coverage to be determined by the Oregon Department of Aviation. The bill imposes a 5% tax on insurance premiums for drone liability policies, with the revenue to be deposited into the State Aviation Account to establish and maintain an advanced air mobility program. Commercial drone operators must verify that their operators have the required insurance, and the Director of the Oregon Department of Aviation may impose a civil penalty of up to $1,000 for violations. The insurance tax applies to policies insuring Oregon residents, those with Oregon billing addresses, policies originating in the state, or policies for businesses registered in Oregon. The bill specifies that public bodies are exempt from the insurance requirement, and it provides technical amendments to existing tax laws to accommodate the new insurance premium tax. The bill will take effect 91 days after the 2025 legislative session adjourns, with the substantive provisions becoming operative on January 1, 2026, allowing state agencies time to prepare for implementation.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB791