Loss, theft, or damage. The policy for the drones specifies recreational use. I do have a Pt. 107 and my drones are registered as Pt. 107 but I do not engage in commercial work.
This law is in conflict with the FAA and will not stand a serious challenge in federal court. Do they do the same thing with cell phones? If I'm taking video of the fair will they confiscate my phone? Can you identify a person who's picture is...