- Reminder - To receive 8 CEUs CACM Law Seminar 1. What the Drone?! Understanding, Using & Regulating Drones

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1 What the Drone?! Understanding, Using & Regulating Drones Presenters Jeffrey A. Beaumont, Esq. John R. MacDowell, Esq. - Reminder - To receive 8 CEUs Give your completed sign-out form to a CACM rep outside the doors after this session. Introduction Understanding Drones and Their Technology What are they? The technology driving them The Regulation of Drones Federal State Local 2017 CACM Law Seminar 1

2 Introduction The Use of Drones in CIDs and the Risk They Cause By homeowners By third parties By service providers By management Introduction Regulating Drones in CIDs When to consider CC&R amendments v. rules Striking balance between full use of property v. privacy v. safety Risk management tools Drones What Are They? A.K.A. unmanned aircraft system ( UAS ) FAA Definition An aircraft without human pilot and Controlled from ground Model Aircraft (different from drones ) Capable of sustained flight Can be seen from ground by operator Flown for hobby or recreation purposes 2017 CACM Law Seminar 2

3 Drones What They Are NOT! History/Evolution of Drones 1849: Austrians attack Venice with unmanned balloons 1930 s: First radio control model aircraft 1950 s: Cold War decoy drones 1982: Israel Air Force successful use of drones in battle 2000 s: Disaster-relief use Present: Military use prominent; recreational use growing over 1 million sold in 2015 alone! Current Technology No human pilot Made of light composite materials Radar/GPS positioning tells operator current location Visuals to operator through mounted cameras Internal compass Smartphone apps 2017 CACM Law Seminar 3

4 Evolving Technology Latest patented technologies include: Vision collision Multi-purpose drones Single passenger drones Powerful cameras Commercial use Federal Regulations Current FAA Rules Part 107 Daylight only Max. speed 100 mph Max. alt. 400 ft. Min. weather visibility 3 miles Remote airman certificate Section of Part 107: rules also apply to commercial use Model Aircraft Rules (not subject to Part 107) State Regulations Current & Pending 2015: Civil Code Section (amended) Must have identifying information Rules for pest control operators Senate Bill 271 Proposed Bills Assembly Bill 1662 Assembly Bill CACM Law Seminar 4

5 Local Regulations (City, etc.) City of Poway bans use of drones open space/residential City of Barstow Ord. No City of Los Angeles Ord. No Orange County recommendations General Rule State and local laws may NOT conflict with any FAA or federal laws Overriding interests: safety security privacy Use of Drones in CIDs Why Regulate Over 10 million Californians live in CIDs Over 1 million have purchased drones in 2015 Conflict is foreseeable Overriding Interest: CIDs Safety, security (maybe) and privacy Managing Risk Personal injury/liability claims Violations of governing documents Conflict: owners v boards, owners v owners, boards v third parties 2017 CACM Law Seminar 5

6 Drones are Everywhere: In the Press L.A. city attorney files first criminal charges under new drone ordinance Drones being developed to deliver medical aid, not bombs Drone crash lands at U.S. Open Falling drone injures 11-month old near Pasadena City Hall A boom and sparks : drone crash downs electrical line in California, hundreds lost power Man suspected of flying drone over Trail Head Fire arrested Man lost contact with drone before it sped to White House No-drone signs going up at Golden Gate Bridge Drone Crash Lands at U.S. Open Near Collision with U.S. Skier 2017 CACM Law Seminar 6

7 Personal Injury Caused by Drone Has Society Accepted Drones? Use of Drones in CIDs By homeowners Recreation/hobby Reporting violations Harassment By third parties (e.g., realtors, press, law enforcement, etc.) Photography Surveillance By vendors Inspections/photography By management Inspections/compliance 2017 CACM Law Seminar 7

8 Scenarios Use by homeowner Use by third party Use by vendor Use by management Reasons Boards May Regulate Drones? Regulating Drones in CIDs Why Regulate Drones Overriding interest safety, privacy, etc. Review purpose of CID protect the value, desirability and attractiveness of property safety, welfare, etc.? Foreseeable Risk Yes! Managing the Risk Business Judgment Rule Investigate Take action 2017 CACM Law Seminar 8

9 Regulating Drones in CIDs Homeowners/Residents Amend CC&Rs sample provisions Rules sample provisions Pros and cons Vendors Essential contract terms Third Parties Law enforcement, FAA, legal counsel Managers Management agreement, evaluate risk Risk Management Annual Disclosure to Members CC&Rs/Rules summary Disclosures re-use of drones in community Social Media/Website CC&Rs/Rules Disclosures Signage Balance b/t over-signing community and disclosure to 3 rd parties Insurance Coverage Liability claims Use of drones by board, vendors and management Thank You! 2017 CACM Law Seminar 9

10 Thank you for coming! Please give your CEU sign out form to a CACM representative before leaving CACM Law Seminar 10