I have not read the document IN FULL nor do I have a full-scale license but I have been following this issue for the larger implications. First, this thread so far is full of misconceptions, miscommunications and downright intentional diversion from one ***** in particular. What I have read from of the document, the AMA and others is that any serious RC incident MAY affect a person's full-scale license. Yes it's fear mongering, but it may be rightly so based on the actions of this current administration. It is the same type of fear mongering that gun enthusiasts have when saying that gun registration leads to gun confiscation - except that is a much more valid point.
Remember what started this whole mess. The commercial drone manufacturers were ticked that RC drones where taking money out of their pockets without any sort of licensing or flight operations control that they were subjected to. They went on a rampage to get their requirements cut back. The FAA was between a rock and a hard place and Congress certainly didn't help, nor did AMA. To cut back commercial requirements would mean creating a whole new class of commercial drone with the attendant regulations, studies, impact statements and documentation. The use of hobby drones in commercial endeavors was already illegal but totally unenforceable since even the AMA backed off from pressure on the manufacturers and sellers and even decided to go along with it. FAA as left with only one option, to treat RC as a subset of full-scale operations. And that meant that a severe violation in that subset must spill over into the overarching requirements.
Thank you lilcrankshaft.