1. Municipal Drones A Legal Roadmap 500 N. Akard │ 1800 Ross Tower │ Dallas, Texas 75201 | 214.965.9900 │ www.njdhs.com September 9, 2016 Whitt L. Wyatt Direct: 214-665-3366 Email: wwyatt@njdhs.com

2. 2 | 1.Regulatory Overview of Laws Affecting Drone Use 2.New FAA Rules for Small Drones (Part 107) 3.FAA Application Options for Municipal Drones 4.State Regulations and Privacy Concerns 5.Municipal Regulation of Drones 6.FAQ Regarding Municipal Drone Programs 7.Final Thought & Tips for Success TOPIC OUTLINE

3. 3 | WHAT IS A DRONE ANYWAY? An unmanned aircraft system (UAS), commonly referred to as a drone, is an aircraft without a human pilot onboard. The UAS or drone is controlled from an operator on the ground.

4. 4 | FAA/Federal Regulations o General Aircraft & Pilot Regulations o Hobbyist Regulations o New Rule 107 Regulations for Small Drones (<55lbs) o New Rule 107 Waiver Process o 333 Exemption Petition Process State Privacy Laws Municipal Regulation Local Airport Regulation REGULATORY OVERVIEW

5. 5 | 3 Types of Operations o Civil Operation (Cities) o Public Operation o Hobbyist Operation Prior to 8/29/16, civil operations regulated same as manned aircraft: o Extensive pilot training o Pilot Certification o Pre-flight checks and reporting o Flight Plan Submission Only practical way to fly was to file 333 Petition and receive a Special COA (6+ months for consideration) FAA REGULATIONS ( www.faa.gov/uas/)

6. 6 | 14 CFR Part 107-- Effective August 29, 2016: o Provides Safety Regulations for Unmanned Aircraft Drones Weighing Less than 55 Pounds that are Conducting Non-Hobbyist Operations o Designed to Minimize Risks to Other Aircraft, and People and Property on the Ground o Intended to streamline application process online FAA REGULATIONS NEW SMALL UAS RULE (PART 107)

7. 7 | Drones must weigh no more than 55 lbs. and must be registered PIC Certificate Required (Applicants must have already passed an initial aeronautical knowledge test) Commercial UAS operation must take place within operator’s visual line of sight (VLOS) Operation during DAYTIME only Flight is not permitted directly over persons or from moving vehicles Drone operators are not required to coordinate operations with or give notice to airports in Class G airspace (uncontrolled <400ft). PART 107 RULE HIGHLIGHTS

8. 8 | FAA Operation Rules (PART 107 RULES) Hobbyist RulesCity Rules (*Unless Waiver/Exemption) Pilot Requirements No pilot requirements Must have Remote Pilot Airman Cert Must be 16 years old Must pass TSA vetting Aircraft Requirements Must be registered if over 0.55 lbs. Must be less than 55 lbs. Must be registered if over 0.55 lbs. (online) Must undergo pre-flight check to ensure UAS is in condition for safe operation Location Requirements 5 miles from airports w/o prior notification to airport and ATCClass G airspace* Operating Rules Must ALWAYS yield right of way to manned aircraft Must keep the aircraft in sight (visual line-of-sight) UAS must be under 55 lbs. Must follow community-based safety guidelines Must notify airport and air traffic control tower before flying within 5 miles of an airport Must keep the aircraft in sight (visual line-of-sight)* Must fly under 400 feet* Must fly during the day* Must fly at or below 100 mph* Must yield right of way to manned aircraft* Must NOT fly over people* Must NOT fly from a moving vehicle* Example Applications Educational or recreational flying only Flying for commercial use (e.g. providing aerial surveying or photography services) Flying incidental to a business (e.g. doing roof inspections or real estate photography) Legal or Regulatory Basis Public Law 112-95, Section 336 – Special Rule for Model Aircraft FAA Interpretation of the Special Rule for Model Aircraft Title 14 of the Code of Federal Regulation (14 CFR) Part 107

9. 9 | A waiver is required for operations not falling perfectly within conditions outlined by Part 107 Most previously requested Section 333 exemptions permitted under Part 107 - notable exceptions being: o Pilot Certification o Nighttime Flight** o Flying over public infrastructure FAA PART 107 WAIVERS

10. 10 | An operator may apply for a Certificate of Waiver allowing for the drone operation to deviate from the following: Operation from a moving aircraft or vehicle (§107.25) Daylight operation (§107.29) Visual line of sight aircraft operation (§107.31) Visual observer (§107.33) Yielding the right-of-way (§107.37(a)) Operation over people (§107.39) Operation in certain airspace (§107.41) Operating limitations for small drones (§107.51) FAA PART 107 WAIVERS

11. 11 | Apply online at www.faa.gov/uas/www.faa.gov/uas/ Must ALREADY HAVE Remote Pilot Certificate (or equivalent) Must have registered your aircraft FAA “strives” to respond within 90 days. COW/A may include special provisions designed to ensure that the drone operation provides an equivalent of safety as set forth under 107 (i.e., ’deviate’) Scope of waivers unknown at this time. Standard special provisions for 107 waivers will be issued by the FAA in the near future. FAA PART 107 WAIVER PROCESS

12. 12 | Transportation of property for compensation or hire is allowed if: Aircraft, including its attached systems, payload and cargo weight less than 55 lbs. Flight is conducted within visual line of sight and not from a moving aircraft or vehicle; and Flight occurs wholly within the bounds of a State (local/municipal regulation?) NOTE ON TRANSPORTATION OF GOODS

13. 13 | Regulated by Public Law 112-95, Section 336 (www.faa.gov/uas/): Do not need FAA permission to fly a drone for fun or recreation Drone may be used for recreational or educational flying only No pilot requirements Must be less than 55 pounds Must be registered if it weights more than 0.55 pounds Registration number must appear on drone Can operate 5 miles from airports without prior notification to airport and air traffic control ALWAYS yield right-of-way to manned aircraft Drone must be kept in sight (VLOS) Follow all community-based safety guidelines (Municipal Ord?) HOBBYIST RULES

14. 14 | A 333 Exemption Petition (i.e., letter) must contain the following: Identification of the registered aircraft; Identification of the pilot(s); Description of the geographical area of possible flights; Description of the scope of all possible uses; Identify each statute from which an exemption is sought; Description (legal argument) as to why the exemption should be granted; and Evidence/Assurance that each granted exemption will not increase the risk of injury to persons, property or airplanes. Recommend including proposed flight policy FAA APPLICATION: 333 EXEMPTION PETITION

15. 15 | A 333 Exemption is required for: Flying in controlled airspace (Classes B, C, D or E); Flying at night or over people*; or Flying drones weighing more than 55 lbs. Flying within 5 miles of an airport** (see next slide) Current 333 Exemption Holders Grandfathered: Any Current 333 Exemption is valid until it expires – usually 2 years from date of issue. An operator with a 333 Exemption may choose to fly under the conditions and limitations of the Exemption. Current petitions are subject to authorization but presently in limbo. FAA APPLICATION: 333 EXEMPTION PETITION

16. 16 | FAQ from the FAA Website: Review LOA recommendations at: https://www.faa.gov/airports/special_programs/uas_airports/ https://www.faa.gov/airports/special_programs/uas_airports/ Meet with local air traffic control to discuss PRIOR to applying for wavier/exemption NOTE ON AIRPORT REGULATIONS What is required for civil UAS operations on or within 5 nautical miles of [an] airport? The civil UAS operator must have the following: A Section 333 exemption; A "full COA" issued by the FAA that authorizes the UAS to operate from or near your airport; and An executed letter of agreement with the airport sponsor.

17. 17 | Local Governments have 2 options for flying a drone: Fly under new Part 107: Follow all rules under Part 107, including aircraft and pilot requirements; Fly under new Part 107: With permitted waivers; or Obtain Public Certificate of Authorization (COA): Permits nationwide flights in Class G airspace at or below 400 feet, self-certification of the UAS pilot and the option to obtain emergency COAs under special circumstances. FAA REGULATION SUMMARY

18. 18 | Local Government Code Chapter 423: o Solidifies privacy protections for private real property, and the individuals living on that property. o Prohibits any person to use a drone to capture images of an individual or privately owned real property with intent to conduct surveillance on the individual or property and the possession, disclosure, display, distribution or use of such image. o Illegally or incidentally captured images must be destroyed and cannot be disclosed under the Texas Open Records Act and are not subject to other means of legal compulsion for release. STATE REGULATIONS EXAMPLE: TEXAS “PRIVACY ACT”

19. 19 | TEXAS “PRIVACY ACT” Sec. 423.003. OFFENSE: ILLEGAL USE OF UNMANNED AIRCRAFT TO CAPTURE IMAGE. (a) A person commits an offense if the person uses an unmanned aircraft to capture an image of an individual or privately owned real property in this state with the intent to conduct surveillance on the individual or property captured in the image. Sec. 423.004. OFFENSE: POSSESSION, DISCLOSURE, DISPLAY, DISTRIBUTION, OR USE OF IMAGE. A person commits an offense if the person: (1) captures an image in violation of Section 423.003; and423.003 (2) possesses, discloses, displays, distributes, or otherwise uses that image. Sec. 423.005. ILLEGALLY OR INCIDENTALLY CAPTURED IMAGES NOT SUBJECT TO DISCLOSURE. (a)Except as otherwise provided by Subsection (b), an image captured in violation of Section 423.003…423.003 (1)may not be used as evidence in any criminal or juvenile proceeding, civil action, or administrative; (2)is not subject to disclosure, inspection, or copying under Chapter 552; and552 (3) is not subject to discovery, subpoena, or other means of legal compulsion for its release. Sec. 423.006. CIVIL ACTION. (a) An owner or tenant of privately owned real property located in this state may bring against a person who, in violation of Section 423.003, captured an image of the property or the owner or tenant while on the property an action to: (1) enjoin a violation or imminent violation of Section 423.003 or 423.004;423.003423.004 (2) recover a civil penalty ($5,000 capture / $10,000 per disclosure or use)

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21. 21 | Cities can regulate by ordinance areas not pre-empted by FAA: Prohibit operation of UAS equipped with any type of weapon Prohibit the capture or storage of certain images Require insurance coverages for civil operations within a certain distance of an airport Require installation of a functional GPS, altitude indicator and GPS track recorder Require NOTAM filed before any civil operation Require registration of all sUAS in accordance with FAA policy; proof of registration MUNICIPAL REGULATIONS OF PRIVATE DRONE FLIGHTS (PREEMPTION)

22. 22 | 1. Insurance options and costs? 2. Who owns the airspace above a citizen's home? 3. Where can and can't you point the camera? 4. What about release forms and privacy rights? 5. Can you provide a template policy for flying? 6. What should a policy cover? 7. Our Police Department is asking to use our Drone… _should we let them? 8. What about the fire department? 9. What about for a water main break? 10. How do you avoid flying over people? (traffic, buildings, parks) FAQ

23. 23 | FAMILIARIZE YOURSELF WITH DRONES – they are a part of life now Drones are quickly becoming essential tools to serve the public by: Providing more online content for citizens Providing more coverage for City PEG channels Providing access for City employees to monitor City facilities and property Providing potential for additional and more responsive public safety operations Enhancing the City’s image through better marketing Before you get off the ground: Make CMO aware of the program Prepare vetted general public statement of program scope Budget, including data storage costs & policies Public information laws & policies Policy creation and administration Remote Pilot Certification & Renewal Liability issues and insurance costs FINAL THOUGHTS