the drones are coming - perma€¦ · • according to 2014 ntsb decision: drones = aircraft •...


Drones in American Culture

• Everyone knows TGIFridays – Could you imagine going to this popular American restaurant and getting attacked by a drone?


Love Hurts

• “Mobile Mistletoe” • A drone carrying mistletoe -

intended to spike romance• Instead clipped a

photographer’s nose


Drones Invade America’s Pastime

• Game 3 of 2016 American League Championship Series

• Cleveland Indians starting pitcher, Trevor Bauer, leaves game because of drone-induced injury


What Happened to Trevor Bauer?

https://www.youtube.com/watch?v=-clNBCNxIn8


Drone Concerns in the World of Sports

• Game 3 of the 2015 American League Division Series - drone hovers over Comerica Park (Home of the Detroit Tigers)

• Security concerns • MLB used a radar system in the past and spent

hundreds of thousands of dollars for one game – Radar systems only detect, they don’t stop

drones


Can You Stop the Use of Drones Over Professional Sports Games?

• In 2014, the FAA criminalized the use of drones over large sports stadiums and racetracks

• Punishment for violating the rule: fines and imprisonment for up to a year

• The rule prohibits the use of drones one hour before events until one hour after


Drones in Action• In 2013, Amazon released a

promotional video for Amazon Prime Air

• Delivery to your doorstep within 30 minutes of order


The Drones Are Coming!

• Amazon Prime Air became reality on December 14, 2016

• First drone delivery made in United Kingdom

• Fire Stick and Popcorn in 13 minutes

• But wait until you hear what’s next…

https://www.youtube.com/watch?v=vNySOrI2Ny8


Flying Warehouses! • December 2016: Amazon receives patent for

“Airborne Fulfillment Center”

• Giant flying warehouse

• Stocked with product

• Launchpad for delivery drones


Is that Legal? • Before August 2016,

commercial use of drones was generally prohibited

• Commercial flyers could secure exemptions from the FAA on a case by case basis

• For example, in January of 2015, the FAA lifted the regulations against drones used for news reporting


The Drone Era is Upon Us• On August 29, 2016, the

FAA opened the skies to drones for commercial purposes


Who Controls Drones?

• According to 2014 NTSB Decision: Drones = Aircraft• FAA regulations apply• Rules vary based on purpose of flight


Know Before You Fly

Why are you flying?


Flying For Fun (Hobby or Recreational)

• Drone must weigh under 55 pounds • No flying within five miles of an airport without prior

notification to airport and air traffic control• Must fly less than 400 feet above ground level • Must fly within line of sight • Must yield the right of way to manned aircraft • Must follow community-based safety guidelines

(such as not flying over crowds of people)


Flying for Business• Must weigh less than 55 pounds• Cannot be flown more than 400 feet above ground level• Must be kept within pilot’s visual line of sight• Cannot be flown at speeds exceeding 100 miles per hour• Must be flown during the daytime• Cannot be flown over people• Cannot be flown from a moving vehicle


Flying for BusinessSome restrictions are waivable upon application:• Daylight operation • Visual line of sight aircraft operation • Yielding the right of way • Operation over people• Operation in certain airspace• Visual line of sight aircraft operation

– But not issued to “allow the carriage of property of another by aircraft for compensation or hire”

– Amazon Prime Air will have to wait, for now


Commercial Requirements For Pilots

• “Pilot in command” of a commercial drone must:– Be at least 16 years old – Hold a Remote Pilot Airman Certificate (requires

that the pilot has passed an aeronautical knowledge test)

– Be vetted by Transportation Security Administration before flying


The Role of State and Local Government

• The FAA recognizes that state and local law enforcement agencies “are often in the best position to deter, detect, immediately investigate, and, as appropriate, pursue enforcement actions to stop unauthorized or unsafe [drone] operations”


Drones In New York • New York has industry leader potential

• In 2016, Governor Cuomo committed $5 million to “grow the emerging Unmanned Aerial Systems industry in New York State” with the goal of making New York—particularly Upstate New York—a hub for drone innovation and manufacturing.”

• Proposed legislation should balance concerns with enormous potential


Concerns

• Privacy • Safety • Security


NY Privacy Concerns• Surveillance • Data Retention • Government Use


Proposed Privacy Legislation in New York


Bill No. S00411• Purpose: To control governmental use

• Prohibits: Any person or entity from conducting surveillance of or monitoring any individual inside “locations where a person would have an expectation of privacy”


Bill No. S00411• Exceptions

- Non-governmental use for “lawful purposes, including recreational or hobby purposes”

- Enforcing Controlled Substance Offenses Law pursuant to a search warrant

- To counter a potential terrorist attack- National border patrolling- “Exigent circumstances”


Exigent Circumstances• Exist “if a law enforcement agency possesses reasonable

suspicion that swift action is necessary to prevent imminent danger to life”

• “Conditions requiring the preservation of secrecy, and whereby there is a reasonable likelihood that a continuing investigation would be thwarted by alerting any of the persons subject to surveillance to the fact that such surveillance had occurred”


Bill No. A06713• Purpose: to regulate the use of drones by the state

and political subdivisions• Requires approval of the governing body prior to

purchase/use• Prohibits use by state or local agent unless:

– Landowner consent– Emergency situation– Eavesdropping or surveillance

warrant obtained– Academic or scientific purposes


Bill No. A06713• Also prohibits any drone from being equipped with

lethal or non-lethal weapons

• Data collection/retention provision:– Excess, non-target, illegal data must be deleted

within 24 hours of capture– Improperly collected data cannot be used as

evidence at trial


Bill No. 6597

• Would make it illegal to use a drone to view, broadcast, or record another person at a place and time when a person has a reasonable expectation of privacy


Proposed Safety Legislation in New York


Danger in the Skies


Building That Wall Won’t Stop Drones

https://www.youtube.com/watch?v=EyvLq6SXygk


Bill No. A03597• Purpose: To regulate personal use of drones to

ensure public safety

• Would prohibit use of drones:• above 400 feet• weighing more than 10 pounds • without a visual line of sight of such aircraft• within a restricted airspace• in a reckless manner that is a risk of harm to the

public


Bill No. 6335• Would make it a felony to weaponize a drone• Similar to legislation in other states

– North Carolina also prohibits weaponized drones– Oregon bans drones

capable of firing a bullet or other projectile


Bill No. 6455• Purpose: To establish a state-wide UAV registry

• Registration would include:- description of the UAV- factory number of the drone- name of individual/business operating the drone


Bill No. 6455• Would prohibit operation of a drone without it first

being registered in the database– Would impose a fine of between $25 and $100

for operators found in violation of registration requirements

– Would help to regulate governmental and commercial uses


Recommendations for Improving New York Legislation


Testing Site Rules• New York was one of six research/testing sites

selected by FAA in 2013

• However, no provisions explicitly governing uses for training or testing purposes

• At least, data retention policy on information collected during training/testing may be prudent


Clarity on Law Enforcement Use• Bill 0411 allows government use in “exigent

circumstances”• Exigent circumstances defined with broad language• Specific exceptions may provide clarity• Otherwise, the probability of a law enforcement

agency justifying its use under exigent circumstances or under other broadly defined provisions may increase

• Broad provision allows flexibility for a law enforcement agent in using a UAV, but also creates room for misuse or abuse which could result in the invasion of privacy


For Example…• Texas Government Code §423 provides specific

exceptions for law enforcement agency uses:• Hot Pursuit• Crime Scene Documentation and Investigation• Human Fatality Investigation• Motor Vehicle Investigation• Search for Missing Person• Port Authority Surveillance and Security• Use on Person or Property within 25 miles of the

US Border


Clarity on Law Enforcement Use• Bill 0411 fails to regulate how data collected outside

of its permitted use would be treated

• Does not define surveillance


Data Retention• Bills addressing data retention should define clearly the scope of

permissible data collection• For example, Utah Code § 63G-18 provides that a law enforcement

agency may retain data obtained by drone only if the data:• “Relates to the target”• Is “requisite for the success of the operation”• Is required to be disclosed by a court order• Is received from a “non-governmental actor”• Was collected “inadvertently”• Relates to the commission of a crime• Relates to an emergency and the data would help alleviate the

emergency• Was collected while operating a UAV in a public area outside

municipal boundaries


Data Retention• Utah’s data retention provision may provide too much

leeway for the government actors

• Legislation should avoid ambiguous terms such as “relates to the target” or “inadvertently”

• The provision fails to include any limits on the treatment of the data retained pursuant to the provided exceptions, opening a wide door to potential abuse or misuse


Ensure Privacy• Bill 3597 - regulates personal use of drones but

fails to address privacy issues

• Concentrates on public safety and where a drone may fly– Add a clause on what the drone can do while in its

permitted boundaries (for example, no recording)


Avoid Overregulation• Keep New York drone-friendly

• Bill 3597 seeks to criminalize improper use of drones

• BUT it restricts drones to only 10 pounds, where the FAA permits drones up to 55 pounds – 10 pound limitation may impede on business use

of drones


Civil Remedies for UAV Owners• Bill 0411 provides civil remedies for any aggrieved

party against a law enforcement agency, but not vice versa


Local Government Reaction to Drones


Recommendations for State Agencies and Municipalities

• Drone Usage by Law Enforcement Agency or Municipalities• Acquire FAA’s Certificate of Approval (COA)

• Communications• Involve community in drone-related matters (e.g.

purchase, use guidelines, etc.)• Community support is essential because drones affect

the safety and privacy of residents


Recommendations for State Agencies and Municipalities

• Civil Rights Issues• To minimize any civil rights or privacy concerns,

consult civil rights advocacy groups (e.g. a local ACLU chapter)

• Drone Task Force• Assemble a team to spearhead and streamline

promulgation/implementation of drone regulations• Education

• Develop an education program that teaches the basic FAA rules on recreational use of UAVs

• Develop a website that informs about local no-fly zones


Workers’ Compensation Considerations

• Increasing use of automation in the workforce

• Sector-based applications

• Impact upon risk and liability

• Claims management


Workforce Automation• Everywhere we look, we see an increasing reliance upon

automation in the workforce (manufacturing, data mining and entry, health care services, and even advanced analytics)

• Shifting Paradigm – at a time when Workers’ Compensation (WC) liability and risk seem to be escalating in all directions, increased workplace automation provides a glimmer of hope for Risk Managers who can likely count upon a reduction in overall WC liability due to this trend

• Increased automation reduces Employer’s reliance upon human labor, and, consequently, also reduces the number of workplace injuries.


Sector-based Applications• Transportation & Delivery:

• A Drone is just a vehicle- Local delivery of goods, mail, etc. (online retailers pioneering these efforts)

• Information Technology:• Data sharing & Troubleshooting

- Utilities Providers & Property Managers: remote maintenance


Sector-based Applications cont.• Emergency Response

• Improved dispatch speed, quality of service, reduce need for human labor in high risk environments– EMS: Drone with camera and two-way

communication– Fire: Drones with cameras, fire-fighting capabilities– Police: Drone with camera to monitor area, or

pursue a subject, reduce need for helicopter or motor vehicle pursuit


Risk & Liability• 2 types injuries: (1) Operating a drone; or (2) by a drone

– Operator injuries: repetitive overuse, fine manipulation, O.D.s– Drone injuries: Accidental injuries ranging from minor

lacerations to potentially catastrophic or fatal injuries. (Drones are 50 pounds and 4 feet wide, essentially flying grills)

• Risk – potential costs– Automation likely to reduce number of workers to insure, and

workplace injuries– Drones present unique danger for catastrophic injuries

• Liability – actual costs– Likely a net reduction for Insurers and Employers, as reduction in

claims, particularly in high risk areas, likely outpace any additional liability for drone-related catastrophic injuries.


Claims ManagementInvestigation:

• Immediate Response:- Can’t send an adjuster to the scene, why not

a drone?

• Subsequent surveillance:- Remote, video surveillance. Particularly useful for claimant’s residing in rural areas where in person surveillance is difficult.


Recommendations

• Be Proactive: these claims are coming, and you need a plan

• Form a dedicated drone response team, educate them on the use of drones in your covered sectors

• Prepare a claims management plan that will allow you to take advantage of these new Claims Management tools

the drones are coming - perma€¦ · • according to 2014 ntsb decision: drones = aircraft •...

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