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Presenting a live 90-minute webinar with interactive Q&A Municipal Regulation and Use of Drones: Navigating New FAA Rules and Federal Preemption Leveraging Opportunities and Overcoming Challenges of Unmanned Aerial Vehicles TUESDAY, JANUARY 24, 2017 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Derke J. Price, Equity Partner, Ancel Glink Diamond Bush DiCianni & Krafthefer , Naperville, Ill. Jeffrey Antonelli, Antonelli Law , Chicago Joanna L. Simon, Morrison & Foerster , San Diego The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .

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Municipal Regulation and Use of Drones Navigating New FAA Rules and Federal Preemption Joanna Simon JoannaSimon@mofo.com Jeff Antonelli jeffrey@antonelli-law.com Derke Price DPrice@ancelglink.com Morrison & Foerster LLP 5

Drone Technology and Uses • Incredibly varied commercial uses Morrison & Foerster LLP 6

Drone Technology and Uses • Incredibly varied municipal uses: • Blue light – police, fire, security • Construction/building • Infrastructure/civil • Agriculture • Conservation Morrison & Foerster LLP 7

Drone Technology and Uses • Varied hardware and software for different goals Morrison & Foerster LLP 8

FAA 2007 Drone Policy • Bottom line: FAA views drones as aircraft, so aircraft rules apply. • “No person may operate a UAS in the National Airspace System without specific authority.” • “All drone operators . . . must apply directly to the FAA for permission to fly.” Morrison & Foerster LLP 9

FAA Modernization Act of 2012 • FAA tasked with developing a plan for “safe integration” of UAS into the NAS • Mandated that the FAA issue a final rule on integrating “small” UAS into the NAS by August 2014 Morrison & Foerster LLP 10

Section 333 Exemption • Standard Conditions • Pilot’s License (Private or Sport) • Operations at speeds less than 45 knots • No higher than 400 feet above ground level • UAS must be within visual line of sight (VLOS) • Operations require a visual observer • Comprehensive preflight inspection of UAS before flight • Pilot training program and experience requirements • Flight must be 5 miles from an airport • Permission from landowner must be obtained • FAA approved flight manuals and maintenance manuals Morrison & Foerster LLP 11

Part 107 • The FAA issued the sUAS rule, Part 107, on June 21, 2016 • Part 107 effective on August 29, 2016 • Section 333 exemptions still valid until expiration, which is typically two years after date of issuance • Operators must choose to operate under Part 107 or their Section 333 exemption for each flight; no mixing and matching Morrison & Foerster LLP 12

Government Operations • Can operate under Part 107 or apply for a public aircraft Certificate of Waiver or Authorization (“COA”) • COA is an authorization issued by the Air Traffic Organization to a public operator for a specific UA activity • FAA conducts a comprehensive operational and technical review. • If necessary provisions or limitations may be imposed as part of the approval to ensure the UA can operate safely with other airspace users. • In most cases, FAA will provide a formal response within 60 days from the time a completed application is submitted. • Public aircraft operators such as law enforcement agencies, state or local governments, or public universities may continue to operate under the terms of their COAs if they already have one. Morrison & Foerster LLP 13

Government Operations • Publicly released COAs available for review. https://www.faa.gov/uas/resour ces/foia_responses/ • Examples: • California Department of Forestry and Fire Protection • Gadsen, Alabama Police Department • Grand Forks Sheriff Department • Lorain County Community College, Ohio • Medina Ohio Police Department Morrison & Foerster LLP 14

Part 107: Preflight Inspection • § 107.49: Remote pilot in command must conduct a preflight check of the small UAS to ensure that it is in a condition for safe operation. • Local weather • Local airspace • Location of persons and property • Other ground hazards • Ensure control links work • Ensure adequate power • Ensure payloads are properly attached • Preflight checklists are available online from manufacturers and other resources Morrison & Foerster LLP 15

Part 107: Operator • Establishes a remote pilot in command position • Must pass initial aeronautical knowledge test or an initial training course if hold a pilot certificate • Must be vetted by TSA • Must be 16 years old • Comply with registration requirements • Reporting obligations (10 days if serious injury, loss of consciousness or property damage of $500) Morrison & Foerster LLP 16

Part 107: Operator • § 107.73: Initial knowledge test covers, among others: • Regulations and airspace classifications • Aviation and weather sources • sUAS loading • Emergency procedures • Crew resource management • Radio communications procedures • Airport operations • Maintenance and inspection • Airman knowledge Testing Centers: https://www.faa.gov/training_testing/testing/media/test_centers.p df Morrison & Foerster LLP 17

Part 107: Operational Limitations • Operational limitations • Less than 55lbs including payload • VLOS • Not over uninvolved people • Daylight only • Class B, C, D and E airspace with ATC permission • Class G airspace no ATC permission required • Transportation of property for hire if: total under 55lbs, VLOS and not from a moving vehicle Morrison & Foerster LLP 18

Operational Limitations: Airspace • Part of the initial knowledge test: OK in Class G; Class B, C, D and E airspace with ATC permission • https://www.faasafety.gov/gslac/ALC/course_content.aspx?cID=42 &sID=505&preview=true • Use available tools to help: B4UFLY / AIRMAP Morrison & Foerster LLP 19

Operational Limitations: Tools Morrison & Foerster LLP 20

Operational Limitations: Tools Morrison & Foerster LLP 21

Operational Limitations: Tools Morrison & Foerster LLP 22

Operational Limitations: Tools Morrison & Foerster LLP 23

Part 107: Waivers • Restrictions that can be waived: • Operation from a moving vehicle or aircraft • Daylight operations. • VLOS. • UAS to Pilot Ratio • Operating limitations • Request a waiver: https://www.faa.gov/uas/reque st_waiver/ • Instructions: https://www.faa.gov/uas/reque st_waiver/media/instructions.p df Morrison & Foerster LLP 24

Two Groups of Issues 1: Regulating drone use by others 2: Governmental use of drones Morrison & Foerster LLP 25

Ever Growing Number of Conflicts Morrison & Foerster LLP 26

Actual Prison Smuggling Attempt Morrison & Foerster LLP 27

Supplemental Regulations • State − Hunting; Law Enforcement • Local Ordinances (including Zoning) − Municipalities/Park Districts/Special Districts • Common law • Civil: trespass • Criminal: unreasonable searches Morrison & Foerster LLP 28

Regulating Commercial Uses Recreational Uses Morrison & Foerster LLP 29

Zoning and Land Use • Commercial Drone Ports • Zoning powers probably still in place Attract Development v. Impact on surrounding property owners Morrison & Foerster LLP 30