COMMONWEALTH OF HOUSE OF REPRESENTATIVES

TRANSPORTATION COMMITTEE PUBLIC HEARING

STATE CAPITOL HARRISBURG, PA

IRVIS OFFICE BUILDING ROOM G-50

TUESDAY, JULY 21, 2 02 0 1:04 P.M.

PRESENTATION ON S.B. 1199 AND H.B. 2699 PERSONAL DELIVERY DRONES

BEFORE: HONORABLE , MAJORITY CHAIRMAN HONORABLE HONORABLE MARCIA M. HAHN HONORABLE AARON D. KAUFER HONORABLE JOHN A. LAWRENCE HONORABLE HONORABLE HONORABLE LOUIS C. SCHMITT, JR. HONORABLE HONORABLE MARTINA A. WHITE HONORABLE MIKE CARROLL, DEMOCRATIC CHAIRMAN HONORABLE MARIA P. DONATUCCI HONORABLE HONORABLE HONORABLE KYLE J. MULLINS HONORABLE HONORABLE JENNIFER O'MARA HONORABLE PERRY S. WARREN

Pennsylvania House of Representatives Commonwealth of Pennsylvania 2

ALSO PRESENT: REPRESENTATIVE MEGHAN SCHROEDER REPRESENTATIVE

COMMITTEE STAFF PRESENT: JOSIAH SHELLY MAJORITY EXECUTIVE DIRECTOR TORREY HOLLIS MAJORITY RESEARCH ANALYST MATTHEW RUCCI MAJORITY RESEARCH ANALYST MICHELLE WHITMYER MAJORITY ADMINISTRATIVE ASSISTANT

MEREDITH BIGGICA DEMOCRATIC EXECUTIVE DIRECTOR 3

I N D E X

TESTIFIERS

* * *

NAME PAGE

REPRESENTATIVE MEGHAN SCHROEDER PRIME SPONSOR OF H.B. 2699...... 5

MARK KOPKO DIRECTOR, OFFICE OF TRANSFORMATIONAL TECHNOLOGY...... 10

SAMUEL MARSHALL PRESIDENT, INSURANCE FEDERATION OF PENNSYLVANIA...... 2 9

SCOTT PAUCHNIK, SR. STATE AND LOCAL AFFAIRS REPRESENTATIVE, FEDEX CORPORATION...... 60

MELISSA MORGAN POLICY ANALYST, PENNSYLVANIA STATE ASSOCIATION OF TOWNSHIP SUPERVISORS...... 89

SUBMITTED WRITTEN TESTIMONY

~k ~k ~k

(See submitted written testimony and handouts online.) 4

1 P R O C E E D I N G S

2 * * *

3 MAJORITY CHAIRMAN HENNESSEY: Good afternoon,

4 everyone. Welcome to this public hearing of the

5 Pennsylvania House of Representatives Transportation

6 Committee on personal delivery devices. The hearing bill

7 is on Senate Bill 1199. The prime sponsor is Senator Ryan

8 Aument. There is a similar bill in the House that is House

9 Bill 2699, and that is prime-sponsored by Representative

10 Meghan Schroeder. She is here today, and she will have a

11 statement for us in a few moments.

12 But welcome, and thanks for being here. Today’s

13 meeting is a combination of both an in-person and a remote

14 meeting. I will ask us here in the room to identify

15 ourselves and then we'll announce who has joined us

16 remotely from their offices. My name is Tim Hennessey.

17 I'm the Republican Chair of the Transportation Committee.

18 DEMOCRATIC CHAIRMAN CARROLL: Mike Carroll,

19 Democratic Chair, Lackawanna and Luzerne Counties.

20 MS. BIGGICA: Meredith Biggica, Executive

21 Director for Chairman Mike Carroll.

22 MR. SHELLY: Josiah Shelly, Executive Director

23 for Chairman Hennessey.

24 REPRESENTATIVE SCHROEDER: Representative Meghan

25 Schroeder from Bucks County. 5

1 REPRESENTATIVE KAUFER: Representative Aaron

2 Kaufer, Luzerne County.

3 REPRESENTATIVE SCHMIDT: Representative Lou

4 Schmidt from Altoona, Blair County.

5 DEMOCRATIC CHAIRMAN CARROLL: Okay. Thank you.

6 We also are joined by Representative Barry Jozwiak of Berks

7 County. I think I ’ve got everybody there. W e ’re also

8 joined virtually by Representatives John Lawrence, Perry

9 Warren, , , , Sara

10 Innamorato, and Lynda Culver. Oh, and Representative Maria

11 Donatucci from . So we have a pretty

12 substantial audience, both live and remotely.

13 If you are participating virtually, the Members

14 who are doing that, and you would like to ask a testifier a

15 question, please email Josiah Shelly, which is

16 [email protected], or Meredith Biggica, the Executive

17 Director for the Democrats, at [email protected].

18 We've also been joined remotely by Representative

19 Jennifer O'Mara of Delaware County.

20 First, I'll call on Representative Schroeder to

21 make some comments about her House Bill 2699.

22 REPRESENTATIVE SCHROEDER: Good afternoon,

23 Chairman Hennessey, Chairman Carroll, and Members of the

24 Transportation Committee. Thank you for holding a hearing

25 today on Senate Bill 1199 and the companion legislation 6

1 that I have introduced in the House, House Bill 2699, to

2 regulate personal delivery devices, or PDDs, in the

3 Commonwealth.

4 Advances in smart and autonomous technologies

5 have never been more important. The arrival of a global

6 pandemic mandates the continued investment, creation, and

7 deployment of innovative technological tools and resources

8 to respond to consumer demand for contact list delivery,

9 support small businesses, create jobs, and enhance the

10 economy.

11 Personal delivery devices, PDDs, are the exact

12 type of technological advancement that can help businesses

13 and residents of the Commonwealth overcome these challenges

14 of these unprecedented times. PDDs are autonomous robots

15 designed to deliver packages from businesses to consumers

16 and from business to business within a small radius of

17 approximately three to five miles. These zero-emission

18 robots reduce congestion and pollution through the use of a

19 combination of sophisticated machine learning, artificial

20 intelligence, and sensors to travel on sidewalks and on the

21 shoulder of some roadways.

22 PDDs are safe, efficient, environmentally

23 friendly, monitored 24/7, equipped with GPS to navigate

24 around obstacles, and are capable of handling steep slopes

25 and curves, steps, and are stable on all terrains. 7

1 Personal delivery devices, PDDs, are designed to

2 deliver essential goods such as take-out food, groceries,

3 and auto parts from point-of-sale to a nearby home or

4 business in the same day without human contact. These are

5 not deliveries that are normally part of the day-to-day

6 package delivery network for companies such as UPS, Amazon,

7 DHL, or FedEx.

8 The purpose of developing and using PDDs is not

9 to displace traditional delivery service but to help

10 supplement operational and service efficiency for retail

11 businesses and ultimately the consumer. In fact, PDDs will

12 likely create new jobs such as high-tech machine experts,

13 software developers, and remote operators. PDDs are

14 uniquely equipped to become a critical resource available

15 to assist in the delivery of goods as customer demand for

16 goods delivered directly to the home or business continues

17 to increase dramatically.

18 The legislation before us today creates the basic

19 rules for the operation of PDDs in the Commonwealth. This

20 legislation includes requirements that businesses operating

21 PDDs submitted operations plan to PennDOT and maintain a

22 minimum of $100,000 in liability insurance on each device.

23 PDDs must obey the rules that govern pedestrian use of

24 sidewalks, including waiting at crosswalks, yielding to

25 vehicular traffic, and foot traffic. 8

1 Additionally, the legislation will establish

2 equipment requirements that enhance public safety such as

3 requiring each PDD to have unique ID number, a braking

4 system, visual lights, and other features to enhance the

5 visibility and awareness of PDDs.

6 Finally, the legislation incorporates a phaseout

7 of PDDs, which specifies that businesses operating PDDs

8 must have an employee accompany each device until the year

9 2022. Then, beginning in the year 2022, they must employ a

10 remote monitor who can control the device if necessary.

11 To date, the States of Arizona, Florida, Idaho,

12 Ohio, Tennessee, Texas, Utah, Virginia, Washington, and

13 Wisconsin have all enacted statutes allowing for deployment

14 and regulation of PDDs.

15 PDDs have quickly become a useful resource to

16 deliver food, medicines, essential goods, and supplies to

17 people's homes.

18 Thank you for holding this hearing today. Given

19 the tremendous positive impact that PDDs could have on our

20 Commonwealth, I hope you will join me in support of this

21 legislation, and I look forward to hearing from our

22 testifiers today. Thank you, Chairman.

23 MAJORITY CHAIRMAN HENNESSEY: Thank you,

24 Representative Schroeder.

25 I should announce that if any of our people show 9

1 up and don't have masks, we have masks available here so

2 they can stay. I ’ll ask all the Members and those watching

3 remotely to please mute your microphones unless you’re

4 asking a question.

5 And with that, I ’ll just say welcome to the

6 future. I think that many of the Members have seen the

7 video that we sent out along with the notice to give you an

8 idea of exactly what’s coming our way and apparently what

9 is already in place either as a pilot program or maybe

10 authorized specifically in several of our States in the

11 union. But, nonetheless, it represents the future,

12 especially for someone as old as me who will probably find

13 them a little bit disconcerting, you know, when I ’m

14 approached by robot coming down the sidewalk. Be that as

15 it may, w e ’ll get used to it. W e ’ll all have to get used

16 to it.

17 But as things happen, when drafters draft these

18 bills, they don’t cover everything. You can’t possibly

19 think of all the questions that people might come up with,

20 and that’s why w e ’re holding this informational hearing, to

21 see if we can solicit some comments with regard to Senate

22 Bill 1199 and House Bill 2699.

23 So, with that, you know, get your questions

24 ready. Our first testifier is Mark Kopko from the

25 Pennsylvania Department of Transportation. He will be 10

1 testifying virtually and then make himself available for

2 questions. He is the Director of the Office of

3 Transformational Technology. Frankly, I will admit that I

4 didn't know we had an office within PennDOT of

5 transformational technology. I'm like that we do, and I'm

6 glad we have someone that can enlighten us as far as what

7 the future holds.

8 So, Mark, if you are available, please sign in

9 and begin your testimony when you're ready.

10 MR. KOPKO: Sure. Good afternoon, everyone, and

11 thank you for the opportunity to speak to you today about

12 Senate Bill 1199 and House Bill 2699.

13 Ensuring public safety has always been the core

14 function of PennDOT. However, with the arrival of a global

15 pandemic, PennDOT, like many organizations, has expanded

16 the way we look at safety. Reducing direct human contact

17 and supplementing the strained supply chain has become

18 critical to stopping the spread of COVID-19.

19 Emerging technologies, such as personal delivery

20 devices, PDDs, offer numerous benefits to overcome the

21 challenges of these unprecedented times. PDDs can be

22 utilized by restaurants and grocers to deliver food to the

23 doors of customers. PDDs can be utilized by logistics

24 companies to support last-mile deliveries. In some States,

25 officials are looking at automated vehicles to deliver 11

1 medical supplies between facilities.

2 PDDs are currently being operating in over a

3 dozen States and jurisdictions including Arizona,

4 California, Ohio, Texas, Virginia, and Washington, D.C.

5 Although these devices offer great potential,

6 especially during the current health crisis, PennDOT feels

7 that the proposed legislation in Senate Bill 1199, as

8 currently drafted, raises some safety concerns, allows for

9 some unintended operations, and overly restricts the

10 ability of local authorities to control operations.

11 PennDOT supports PPDs being regulated like

12 pedestrians. However, to ensure that PDDs operate in a

13 manner that complies with the provisions of Title 75,

14 Chapter 35, PDDs should be added to the definition of a

15 pedestrian. PDDs should be predominately operated on

16 sidewalks and within marked and unmarked crosswalks at

17 intersections. If a sidewalk is not present or if

18 operating a PDD would constitute a hazard, only then should

19 PDDs be permitted to operate on the shoulder or berm of a

20 trafficway.

21 PennDOT and local authorities should have the

22 ability to temporarily restrict operations due to

23 operational or safety reasons, including but not limited to

24 emergency conditions. This is consistent with the

25 legislation within the language of Act 117. 12

1 PennDOT supports the requirements that a business

2 entity should submit an operations plan for PennDOT review.

3 This oversight authority will allow PennDOT to ensure every

4 effort is made to address any public safety and operational

5 concerns, while being flexible enough to adjust for changes

6 and advancements in the technology. However, the plan

7 should include, but not be limited to information on the

8 business entity, a description of the training the agent

9 receives, a list of the jurisdictions in which the PDD will

10 be operated in, a description of the identifiable marker

11 and a list of any devices that an ID will be on, proof of

12 adequate insurance, a description of the PDDs' operational

13 domain design -- this is the operating parameters and

14 limitations of the device -- a description of how an

15 emergency service responder may stop and/or disable the

16 PDD, a description of the types of cargo or goods the PDD

17 will be transporting, and details on the PDD including

18 weight, dimensions, engine type, and intended speed of

19 travel.

20 Business entities should be required to report

21 incidents resulting in personal injury or property damage.

22 PennDOT supports the requirement for an agent to be within

23 30 feet of the PDD but believes it may be overly

24 restrictive to have this requirement in place until 2022.

25 PennDOT and local authorities should have the ability to 13

1 allow for remote operations prior to 2022 if the business

2 entity can demonstrate the ability to safely operate.

3 However, PennDOT and local authorities should have the

4 authority to reinstate the 30-foot requirement if a safety

5 concern arises prior to 2022.

6 Finally, PDDs' operational requirements should be

7 based around their operational design domain. For example,

8 if a business entity plans for their PDD to operate on the

9 shoulder of a roadway in Pittsburgh at speeds of 25 mph,

10 the braking system should be able to bring the PDD to a

11 controlled stop on an incline not just a flat, level

12 surface.

13 PDDs come in all shapes and sizes from Starship's

14 six-wheeled, 55-pound delivery robot to Refraction AI's

15 three-wheeled, 80-pound logistics vehicle, to FedEx's Roxo.

16 Some PDDs travel at a speed comparable to a leisurely walk,

17 while others travel at speeds up to 25 mph. With such

18 diversity in PDDs, PennDOT encourages the Committee and the

19 General assembly to provide PennDOT and local authorities

20 with as much flexibility and oversight as possible. This

21 will allow for the safe deployment of PDDs while allowing

22 for the Commonwealth to continue to be a hub for innovation

23 and automation.

24 Thank you for the opportunity to discuss Senate

25 bill 1199. We at PennDOT appreciate the legislature's 14

1 proactive approach in ensuring that public safety is a top

2 priority. And I ’m happy to answer any questions later on.

3 Thank you.

4 MAJORITY CHAIRMAN HENNESSEY: Thank you, Mark.

5 Since you are our only testifier, I have a couple of

6 questions, and I ’ll kickoff the questioning if I can.

7 How long has your office existed within PennDOT?

8 You know, an Office of Transformational Technology sounds

9 very futuristic. I ’m just wondering how long you guys have

10 been working there as a think tank within PennDOT to plan

11 for this kind of thing.

12 MR. KOPKO: Sure. My office will be a year in

13 August. It was created as a way to bring and elevate up

14 these emerging transportation technologies to a higher

15 level so that it’s not within a specific [inaudible]

16 looking at areas that are crosscutting across multiple

17 [inaudible], so automated vehicles is a perfect example,

18 not only our operator and driver and vehicle services but

19 planning, it hits our Highway Administration, it hits our

20 multimodal. So it’s our job to look at this technology

21 that’s coming towards us in the future, you know, 5 to 10

22 to 15 years out. Knowing that everyone is busy with their

23 day-to-day but not wanting to lose sight of the future,

24 it’s the [inaudible] responsibility to keep a finger on the

25 pulse of what transportation is moving towards and what’s 15

1 in emerging technology so we can work with the existing

2 business areas within the Department and integrate it in

3 processes when it makes sense. But in the meantime,

4 [inaudible] that subject matter expert and help guides the

5 direction of the Department.

6 MAJORITY CHAIRMAN HENNESSEY: Okay. And how many

7 people are within your department or your -­

8 MR. KOPKO: We have a —

9 MAJORITY CHAIRMAN HENNESSEY: — division?

10 MR. KOPKO: We have a complement of four,

11 including myself. We are filling positions right now.

12 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

13 Let me take this opportunity to indicate that

14 Representative Greg Rothman from Cumberland County, who's

15 joined us virtually. Representative Lori Mizgorski from

16 Allegheny County, and Representative Steve Kinsey from

17 Philadelphia County are all on the line.

18 Mark, I think you had indicated there was a

19 number of States across the country that have already

20 authorized robotic devices. Can you tell us, are all of

21 them in pilot projects or are some already authorized

22 across the board? And did they all start out with having

23 this sort of a human chaperone that's called for in the

24 Senate bill that, you know, would be within 30 feet of them

25 essentially for an 18-month period of time, until the 16

1 beginning of 2022?

2 MR. KOPKO: Sure. No, it varies across the

3 board. We tend to see pilot programs a lot of times happen

4 when it happens at the local level, you know, Washington,

5 D.C., San Francisco, and those are perfect examples where

6 they try to ease into it. Some of the States that have

7 passed legislation try to do an all-encompassing that just

8 opens it up. There are some that have as part of it a

9 period where you actually have a chaperone or an agent

10 nearby, and then there's others where it just allows for

11 complete remote operations. But it seems consistent across

12 the board that there is a requirement that someone is

13 monitoring the vehicle at all times and able to take over

14 control when necessary, so a teleoperations type of

15 ability.

16 MAJORITY CHAIRMAN HENNESSEY: Okay. That’s

17 ultimately what’s going to happen. There’s always going to

18 be somebody monitoring from a remote distance.

19 MR. KOPKO: Correct.

20 MAJORITY CHAIRMAN HENNESSEY: What I ’m interested

21 in, how many of the States that have authorized these have

22 done this where the person having control of the iBot is

23 within 30 feet and for what period of time?

24 MR. KOPKO: So I ’m only familiar with it through

25 a pilot program. I believe San Francisco had to have a 17

1 chaperone by the vehicle, and it was a phased-out period

2 just like what is proposed within the bill. But I would

3 have to go back and follow up with you to get the specifics

4 on how long that period actually was.

5 MAJORITY CHAIRMAN HENNESSEY: Okay. Well, thank

6 you. I ’m going to call on Chairman Carroll for a question.

7 Then I ’ll go to Representative Rothman.

8 DEMOCRATIC CHAIRMAN CARROLL: What would be

9 PennDOT’s primary concern with the language in the bill as

10 written?

11 MR. KOPKO: Sure. So, as I mentioned, there’s

12 some safety concerns that we have, not incident reporting

13 is one of those. We believe as it’s written right now

14 Section 3746 regarding reporting of incidents, it wouldn’t

15 be applicable. We would want to know what happens at all

16 times with these vehicles or with these devices. We think

17 ideally, as I mentioned before, that they should

18 predominantly operate on sidewalks, and if there’s some

19 sort of hazard of if there’s no sidewalk present, that’s

20 when you go to a shoulder or a berm. You know, we think

21 that the braking system requirement within the bill is not

22 stringent enough. We think that it’s based around ideal

23 conditions. And a lot of the requirements of the vehicle

24 should be based around its operational design domain, so

25 this is where the vehicle is designed to function and what 18

1 conditions it is. So if it is intended to operate on

2 inclined surfaces, it should be able to brake on inclined

3 surfaces.

4 We think that the way the bill is at least from

5 [inaudible], we believe that there are some unintended

6 operational abilities within it, specifically on -- it

7 would be [inaudible] areas of operations, subpart 3, on a

8 local roadway under the jurisdiction of a local authority

9 with a posted speed limit of no greater than 25 miles per

10 hour.

11 So within the bill within subpart D, part 2, that

12 relates to the Department and says that it can operate on

13 the shoulder and the berms, but it just says local

14 roadways. It doesn't cull out shoulders and berms. And

15 based off of the definition of a PDD saying that it can

16 operate -- it's manufactured for transporting cargo and

17 goes in pedestrian areas [inaudible] berm because it calls

18 out traffic ways. And in the local government area it says

19 on local roadways. We believe it gives the ability for it

20 to actually operate within the lane of travel, which is not

21 what we would want within the Department. We think these

22 should be limited solely to pedestrian, to the shoulder or

23 the berm, but the way it is written right now for local

24 roadways in Senate Bill 1199, we believe it gives

25 flexibility for it actually operate within the travel lane. 19

1 We have some concerns about the way the language

2 is written regarding hazardous materials. Our

3 recommendation is that a personal delivery device may not

4 transport hazardous materials of the type or amount that

5 would require a vehicle to be placarded in accordance with

6 the Department’s regulation. We feel like that might be a

7 better approach versus the way the language is right now,

8 and it almost implies that as long as it’s placarded, it

9 could potentially carry hazardous materials.

10 We think that there’s some restrictions on local

11 authorities under PennDOT that we would like to see, so I

12 mentioned before about temporary restrictions, so a perfect

13 example of this would be instead of prohibiting the

14 operations on a specific roadway, it might be on a case-to-

15 case [inaudible] scenario. So a major winter storm is

16 hitting the Commonwealth. You might want to prohibit the

17 use of these devices for a set period of time so that you

18 can allow for winter operations to occur. You can make

19 sure that sidewalks are clear before they’re resuming.

20 So we don’t want to necessarily go out and

21 prohibit operations on that roadway altogether and post it

22 within the bulletin, as required within the bill, but more

23 for a temporary period where it makes sense from a safety

24 standpoint and where we would hope that the business

25 entities would not want to be operating anyway during this 20

1 time, to temporarily restrict and when the conditions are

2 alleviated, then resume. So having that type of ability

3 would definitely be beneficial.

4 Also, with regards to PennDOT, we have the

5 ability to [inaudible] on specific roadways without

6 consultation with the business entity. On the local side,

7 they cannot prohibit on a specific roadway or pedestrian

8 area without consulting the business entity to make sure

9 that there's a hazard that would require that.

10 It makes sense from the Department with regards

11 to pedestrian areas where you would have to have

12 consultation, but from a roadway standpoint, we feel that

13 that should be up to the respective infrastructure owner-

14 operators, whether it be what it is right now for the

15 Department to have that ability or for the local authority

16 to have that ability without necessarily consultation.

17 DEMOCRATIC CHAIRMAN CARROLL: Thank you.

18 MAJORITY CHAIRMAN HENNESSEY: Any other

19 questions? Okay. Representative Greg Rothman. I'm sorry,

20 Representative Greg Rothman -­

21 REPRESENTATIVE ROTHMAN: Yes.

22 MAJORITY CHAIRMAN HENNESSEY: -- Greg, if you're

23 there, just take -­

24 REPRESENTATIVE ROTHMAN: Mr. Chairman, thank you.

25 MAJORITY CHAIRMAN HENNESSEY: There you are. 21

1 REPRESENTATIVE ROTHMAN: Chairman Hennessey,

2 Chairman Carroll, thank you. And I ’m excited that w e ’re

3 talking about new technology. Literally through new

4 technology and also a new technology that, because of

5 COVID-19 and the pandemic has [inaudible] opportunities to

6 deliver touchless products to our citizens.

7 The sidewalk delivery systems, which is really

8 what w e ’re talking about or the personal delivery devices,

9 I have a few questions about the bill. And I ’m not sure -­

10 I have the Senate version. I don’t have Representative

11 Schroeder’s House version, but if she’s still there, maybe

12 she can address this.

13 But my question is to Mr. Kopko, and thank you

14 for your testimony and thank you for what your office is

15 doing. I think this is very exciting, like we did with

16 autonomous vehicle advancements and platooning, and we have

17 many more advancements on the way. So this is very

18 exciting times for Pennsylvania.

19 But I ’m a little concerned about a section in the

20 bill that calls for -- and you did address in your

21 testimony -- a business plan approval. And I just have

22 some concerns about it. Pennsylvania has done very well in

23 attracting top-tier tech startups and investment in high

24 tech in Pennsylvania because w e ’ve taken the approach that

25 businesses do not have to come to the government to get 22

1 their plans approved. And innovation that requires

2 government approval I believe is in some ways impossible.

3 And so I ’d like to make sure that w e ’re not creating a

4 barrier to innovation. And there are also secondary issues

5 of whether those would be protected from right-to-know

6 requests from competition, seeing what other businesses are

7 doing.

8 And the bill states that the PDDs are to be

9 regulated as pedestrians and not as motor vehicles, and I

10 do appreciate that. And perhaps my colleague from

11 Philadelphia, Chairman Kinsey, may have some questions

12 about our scooter bill, but I ’ll stick to the definition of

13 PDD, which is says to have an automated driving system,

14 which is a technical term used for highly automated

15 vehicles. Is there going to be a separate -- there are

16 separate sections in the Vehicle Code for pedestrians and

17 highly automated vehicles, but are we focusing on more the

18 fact because PDDs can weigh up to 550 pounds or because

19 there’s other confusion going on with the highly automated

20 vehicles.

21 So, I guess, Mark, if you could talk about the

22 business plan requirement and what you envision an entity

23 that wants to do the PDDs, will they have to have -- what

24 will have to be in the business plan? You mentioned -- I

25 think your exact words were "not limited to,” so I just 23

1 want to make sure that they're not required to have any

2 trade secrets or, you know, the technology they're using,

3 so if you could just address that.

4 And I think, Mr. Chairman, I just think I made my

5 point that we should be doing all we can to create high-

6 tech opportunities. But I'll wait for the answer to that.

7 And thank you for allowing me to ask the questions.

8 MAJORITY CHAIRMAN HENNESSEY: You're welcome,

9 Greg. Go ahead, Mark. Do you want to answer the -­

10 MR. KOPKO: With regard to the business plan,

11 it's a sense in the Department that we always try to avoid

12 anything relating to anything confidential or trade

13 secrets. We have a pretty outstanding reputation within

14 the industry right now. I feel between our PennDOT's

15 automated vehicle testing guidance where we require a

16 notice of testing and a corresponding safety and risk

17 mitigation plan to be submitted to receive authorization

18 from the Department, which is a voluntary process, but we

19 have 100 percent compliance within the State. We have all

20 the testers. We work hand-in-hand with them.

21 Through, Representative Rothman, your bill on

22 platooning, we have a plan requirement within that where we

23 have one authorized platooning entity [inaudible] process

24 once again. We try to avoid anything related to

25 proprietary trade secrets for multiple reasons. One, we 24

1 understand the concern from a business entity. Two, once

2 you start to get into that, it starts to get more into the

3 technical side, which is not the expertise of PennDOT or,

4 arguably, any DOT. It’s something more at the Federal

5 level where they tend to deal with.

6 What we tend to focus on is more of [inaudible].

7 We look at the safety of the operations through the

8 training and the safety culture that you have in place and

9 then just have a basic understanding of what’s occurring.

10 So the information that I mentioned within the proposal we

11 don’t think we dive into anything remotely trade secret.

12 Even something that might be close to it on an operational

13 design domain where it can function and in what conditions.

14 You can still provide that high-level [inaudible]

15 requirements. There’s recommendations coming out of groups

16 like the Society of Automotive Engineers, SAE, that they

17 have some working groups that came out with some

18 recommendations on what should go into an operational

19 design domain.

20 We already ask that within our AE testing

21 guidance. It doesn’t necessarily dive down into the

22 technical or tell us how’s your -- you know, how many

23 sensors do you have, what sensors, how does the software

24 stack work or anything along those lines. It’s just more

25 of how do you -- you know, tell us how this vehicle or this 25

1 device is going to function safety, and tell us what steps

2 you've put in place to ensure that. And then tie in some

3 additional information just to let us know what type of

4 operations that's going to occur and things like how should

5 a first responder react if there is an incident and they

6 have to disable to device.

7 We absolutely do not want to get anything

8 proprietary or trade secret. I think we have a pretty

9 proven track record of that with what we currently do with

10 other automated vehicle type of applications within the

11 Commonwealth, and I'm hoping that would hopefully assure

12 industry that we're not going down that path by any means.

13 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

14 Representative Rothman, do you have any other questions?

15 REPRESENTATIVE ROTHMAN: I don't. Thank you.

16 Thank you, Mr. Chairman.

17 MAJORITY CHAIRMAN HENNESSEY: You're welcome.

18 Representative Innamorato, we'll get to your question in

19 just a second. I just want to mention that Representative

20 Ed Neilson from Philadelphia has joined us virtually on

21 this call in this hearing.

22 With that, Representative Innamorato?

23 REPRESENTATIVE INNAMORATO: Great. Thank you so

24 much, Chairman.

25 MAJORITY CHAIRMAN HENNESSEY: You're welcome. 26

1 REPRESENTATIVE INNAMORATO: So my question is

2 around individuals with disabilities. We have these PDD

3 devices on the University of Pittsburgh’s campus last year,

4 and actually, they stopped using them because these devices

5 were put onto sidewalks, and they inhibited the mobility of

6 low-vision individuals and individuals who use wheelchairs

7 and other vulnerable sidewalk users. So I ’m wondering if

8 you can speak to what kind of consideration are baked into

9 this bill that would help address the needs of people with

10 mobility or vision issues that can be in compliance with

11 helping make a safe space for individuals with disabilities

12 and then kind of speak to any sort of consultation that is

13 required from these folks or groups that work with these

14 individuals in permitting these on public sidewalks and

15 rights-of-way.

16 MAJORITY CHAIRMAN HENNESSEY: Mark, before you

17 answer that, are you familiar with this situation, the

18 experience in the University of Pittsburgh, and if not,

19 I ’ll ask Sara if she could just give us a little more

20 detail about -­

21 MR. KOPKO: I am familiar.

22 MAJORITY CHAIRMAN HENNESSEY: You are? Okay.

23 Well, go ahead. Thank you.

24 MR. KOPKO: Yes. Yes. So I believe the

25 situation you’re referring to is the incident with 27

1 Starship. One of their devices impeded an ADA ramp, and

2 then the city requested that they, you know, prohibit

3 operations to address that. So from the Department’s

4 standpoint, the business plan is where we would probably

5 ask a question like that. So w e ’re currently updating our

6 AD testing guidance right now, and w e ’ve added in language

7 about interaction with [inaudible] users. And we would

8 consider that type of language also to be part of that

9 plan. It’s something that the Department, along with

10 consultation with the local authorities, would like to

11 review is how do you ensure that you don’t impede anyone

12 with any type of disability or you keep open ADA ramps or

13 anything type of accessible infrastructure.

14 So that would be a question there. It wouldn’t

15 necessarily get into the proprietary information that

16 Representative Rothman was concerned about. It’s more

17 talking about how their basic operations would work. So it

18 could be just, you know, a simplistic explanation but just

19 give us an idea of how have you taken steps to make sure

20 that that doesn’t impact any of those users.

21 With regarding the groups, associations, or

22 advocacy groups, we feel that once we have these

23 consultations with the local authorities, a lot of times

24 the local authorities have the better relationships with

25 those more localized groups, and that’s where we would hope 28

1 for the locals to bring those into the conversation or at

2 least consult with them as we, in partnership, review any

3 type of business plan that comes into the Department for

4 review to make sure that the answers that are given are

5 satisfactory and make sure that we don't have any type of

6 incidents like you had with the Starship device in 2019.

7 REPRESENTATIVE INNAMORATO: Okay. Great. Thank

8 you.

9 MR. KOPKO: Um-hum.

10 MAJORITY CHAIRMAN HENNESSEY: Mark, I'm sorry,

11 what was the name of this device that you -- I couldn't

12 catch it when you were giving a name to it.

13 MR. KOPKO: Sure. The company's name is

14 Starship. They make a -­

15 MAJORITY CHAIRMAN HENNESSEY: Starship, S-t -­

16 MR. KOPKO: -- device that it's essentially a -­

17 it looks like a cooler basically on six wheels. It's about

18 50 pounds, and, you know, it's a sidewalk delivery device.

19 MAJORITY CHAIRMAN HENNESSEY: Okay. Okay. Do

20 you have any questions? Okay. Thank you very much for

21 your testimony, Mark. I don't see any other questions for

22 right now, so you're off the hook temporarily. You're

23 welcome to stay involved in the call and listen to the

24 other testifiers, but, having said that, I will move to the

25 Insurance Federation of Pennsylvania. We're about to hear 29

1 from Sam Marshall, who’s the President of that

2 organization. And if anybody’s going to give thought to

3 what the possible problems might be in this kind of

4 situation, w e ’d expect it to be the insurance industry.

5 And having read your testimony last night, you raise some

6 interesting questions, and w e ’re all about to hear them.

7 So make yourself comfortable there, Sam, and begin whenever

8 you’re ready. Thanks for being here.

9 MR. MARSHALL: Thanks for having me. And

10 realizing that -- I’m sure everybody read my testimony last

11 night or this morning, I won’t just recite it here, but

12 before coming over, my colleague Noah Karn shared with me a

13 commercial on PDDs from FedEx. And it showed all the

14 virtues of a PDD. You know, it’s a nice, you know, riding

15 along the sidewalk, stopped for a dog, stopped for a

16 basketball, navigated its way around a pothole, and

17 delivered medicine climbing up the steps to a mother in

18 need of medicine for her child and then left. It showed

19 exactly why this is an innovative technology that promises

20 a lot of benefits.

21 Now, it raised a lot of questions because, of

22 course, when it left, it was on the sidewalk. The sidewalk

23 wasn’t big enough for anybody but that. You know, that

24 sort of goes to the concern that was just raised. You

25 know, how do you balance that with the need of somebody on 30

1 a wheelchair on a sidewalk? You know, it showed some of

2 the questions that I'll go through, and that's the balance

3 of what you have to deal with. How do you allow and

4 promote this type of a technology, which is a gamechanger

5 and a good gamechanger, but how do you make sure that this

6 innovation can operate safely and in integration with all

7 of the others who use the existing infrastructure, whether

8 it be sidewalks, sides of the roads, bike lanes, whatever

9 you may have.

10 And that goes to a couple of questions that I

11 think need to be addressed, you know, need to be answered

12 and addressed in the legislation. And the first is a state

13 of readiness for PDDs, whether they are operated by

14 somebody within 18 feet or, you know, I think it's 30 feet

15 in this bill, or they're operated remotely. And,

16 appreciating Representative Schroeder's remark, there's a

17 difference between remote operation and autonomous

18 operation, and that's a question that I have because the

19 terms have been used interchangeably here when describing

20 it, but, you know, speaking as a lawyer, they're very

21 different.

22 You know, and those are -- you know, I think you

23 have to separate, you know, the two areas. If you're going

24 to talk about operating with the operator within 30 feet

25 and allowing that to go forward right now, okay, you can 31

1 see if the technology is there. I don’t know, 30 feet,

2 does that mean within eyeshot? The speed you’re talking

3 about, you know, you’re not going to be -- you know, these

4 things are going 12 miles an hour on a sidewalk and 20

5 miles an hour, 25 miles an hour on a roadway. I don’t know

6 how you stay within 30 feet of that. You know, if you’re

7 moving at 12 miles an hour on the sidewalk, you’re the

8 fastest person on the sidewalk this month. You know, so

9 somehow that’s a question that you want to have. How do

10 you envision these things being operated right now if you

11 were to pass the bill today and that took effect right

12 away?

13 You know, then, you know, next, we talk about

14 them being able to be operated remotely. Somebody’s in

15 control. And you’re talking about that within less than 18

16 months. W e ’re nowhere close to having autonomous vehicles

17 ready to operate on our roads because they don’t

18 necessarily recognize the difference between a dog, a

19 basketball, and a kid. They’re not able to make a -- you

20 know, I mean, ask anybody in the autonomous vehicle field,

21 and they’ll tell you the hardest thing you can ever do is

22 figure out how to make a left-hand turn in traffic.

23 They’re not there. They’re not going to be there for a

24 while, so how is a PDD able to do what an autonomous

25 vehicle isn’t? So that’s a question of are they really 32

1 ready to share the sidewalks and the roadways with

2 pedestrians, bicyclists, motorists, you know, the disabled,

3 you know, the people who use our sidewalks and roadways?

4 You know, there are questions in the bill. You

5 know, the bill says, okay, you know, the PDDs yield and

6 refrain from unreasonably interfering with pedestrians.

7 Not exactly sure what that means, but I ’m also not sure how

8 you yell stop to a remotely operated PDD. It’s a machine.

9 Stop. You know, I ’m not sure who hears that. I ’m not sure

10 who obeys that. I ’m not sure how you accommodate that.

11 You know, those are the types of questions.

12 And I ’d say, you know, if you want to have good

13 regulation -- and that’s what w e ’re talking about here, how

14 to regulate a good and new technology operating on an

15 existing infrastructure, first, you have to know the

16 technology that you’re regulating. And I don’t know that

17 everybody understands all the mechanics of PDDs, who’s

18 making them. I mean, I appreciate FedEx’s, you know,

19 commercials and its innovations but there are a lot of

20 other makers of PDDs. Just where is the technology? Who’s

21 going to be looking at that.

22 You know, and I think in addition to knowing the

23 product, you also have to know the infrastructure on which

24 they’re going to operate. How many sidewalks are really

25 capable of accommodating this? You know, how does that all 33

1 work? And that goes to really the next area of

2 questioning, and, you know, Mark, the predecessor, Mark

3 Kopko, who came just before me, raised it, and I know

4 you’ve had some others comment on it, and that’s the

5 balance between State and local authorities. You know,

6 particularly if these are envisioned as being primarily on

7 sidewalks somewhat surprised me, you know, but that’s

8 really for a local community’s concern. It’s the one who

9 knows the sidewalks.

10 You know, you have a balance here. And I think

11 the bill correctly recognizes that you need both State and

12 local. I think it’s important for PennDOT and I think some

13 of the improvements in terms of the standards that PennDOT

14 mentioned, outlined, I think those are important things to

15 fold into the bill. A plan of operation, it’s not really a

16 business plan but it’s a plan of operation, is an important

17 thing to have. It’s just what’s in it. I ’m not sure what

18 everybody envisions. I think that’s something that PennDOT

19 should set forth. It might require a regulation. It might

20 require a statement of policy.

21 You know, I ’m not sure you can spell out all the

22 details that you would want in a statute because the

23 technology is evolving. Whatever it is now, it’s going to

24 be different two years from now. It’s just the way -- you

25 know, that’s the good thing about technology. It improves. 34

1 But I think you also need to have -- and I think

2 you need to better recognize than the bill does -- the

3 involvement of localities. You know, we talked about it in

4 terms of sidewalks, are they wide enough to accommodate

5 these and share them with -- you know, whether it's

6 disabled or, you know, families with, you know, kids in

7 strollers, you know, people on bikes, people walking dogs.

8 But there's also, you know, just take a look around your

9 own communities.

10 One of the things with this COVID -- and we've

11 talked about the need to limit human interaction as a

12 possible positive of this. By the time these are fully

13 operational, I hope we have a vaccine. I mean, you know,

14 I'm not sure they're -- you know, they didn't come about

15 because of COVID, and I don't know that they're that much

16 more enhanced. But even given that, one of the things

17 you've seen with the COVID crisis is for businesses to

18 operate, there's a lot of sidewalk dining. You know, walk

19 down 2nd Street here in Harrisburg, walk down in your own

20 communities, there's a lot of sidewalk dining. I'm not

21 sure how PDDs interact in a sidewalk scenario where people

22 are browsing, people are doing sidewalk driving, you know,

23 particularly if they're remotely done.

24 And the bill talks about remotely done by

25 somebody licensed in a State somewhere in the country. You 35

1 know, I'm not sure that means, gee, you know what, does

2 that mean one person per PDD and he's watching it on a

3 computer screen in Arizona and he's going to accommodate

4 diners on 2nd Street at 11 o'clock at night? I don't know

5 how that works. That's a question of what you envision

6 doing.

7 And I don't know, you know, it's a question of

8 readiness. You know, I was fascinated that PennDOT said,

9 boy, maybe we want to move it up so you can operate

10 remotely even before 18 months from now. I know we don't

11 have highly autonomous vehicles anywhere near ready. I'm

12 sort of surprised because PDDs are essentially autonomous

13 vehicles. They just don't have a person. They have goods

14 in them, but, you know, it's the same theory if they're

15 really autonomous. I don't know that they're fully ready

16 to roll.

17 I'd also note the bill's a bit conflicted in

18 terms of the role of the locality. You know, it does say

19 that a, you know, locality can set up standards but it has

20 to consult with a PDD first. There are a lot of PDDs out

21 there. Does it have to consult with every manufacturer?

22 What does it have to do? But then it also says that

23 whatever the locality does, it can't regulate PDDs on

24 sidewalks in ways inconsistent with the bill, and it

25 expressly says you can't limit the areas or hours of 36

1 operation.

2 I think that’s exactly what a locality is going

3 to want to do. If you’re encouraging sidewalk dining, if

4 you’re worried about rush hours, I don’t know that you want

5 550-pound -- and that’s before you put anything in them -­

6 but I don’t know that you want 550-pound structures running

7 at 12 miles an hour, which, you know, just speaking as a

8 pedestrian, it’s about three or four times the pace that

9 you walk. I ’m not sure you want them riding on sidewalks.

10 You know, a locality may say, you know what,

11 that’s not what w e ’re trying to do. You know, there are a

12 lot of communities -- I ’m from the Philadelphia area. In

13 Philadelphia w e ’ve done a great deal to encourage

14 pedestrian use. It’s a big part of our economic

15 development there. You know, you need to make sure that

16 the locality has a role in saying, you know what, we want

17 to integrate these in with our pedestrians, in with our

18 motorists. You know, we have a limited infrastructure in

19 most communities, and how do you make sure of that?

20 The third question, the last one I ’d have is on

21 accountability. I think I ’d agree with PennDOT that you

22 want to know if there are any incidents. I also would

23 suggest that if you’re going to go to autonomous or you’re

24 going to go to remote-control, you want to know how many

25 times did somebody have to override a computer control. 37

1 You know, I mean, what is -- you know, that’s knowing the

2 technology that you have. How many times -- I mean, you

3 know, when you talk about insurance, you know, I mean, it

4 talks about here -- I do think in terms of ongoing

5 accountability you do need to have some role of

6 enforcement.

7 You know, I don’t understand how -- you know, I

8 mean, I don’t know how a pedestrian who would say, here,

9 excuse me, PDD, please stop. I ’m trying to walk here, and,

10 you know, I ’ve got kids in a stroller, I ’m in a wheelchair,

11 whatever. You know, I don’t know how you interact with a

12 PDD. I don’t know how a police officer says, whoa, you’re

13 going too fast. I don’t know how that interaction takes

14 place. I ’m sure it does. I ’m sure there’s a way for it to

15 happen, but that’s something that, as a Committee, before

16 you pass enabling legislation, I think you want to know

17 that just out of curiosity, as well as safeguarding

18 constituents and consumers.

19 I do think part of accountability -- and, you

20 know, I ’m an insurance guy, so, you know, I ’m going to

21 mention this, but part of accountability is insurance. I

22 would put the onus of insurance -- and I think the

23 insurance requirement -- I appreciate the fact that it’s

24 there -- don’t let it be squabbling between whoever owns

25 the entity that owns the PDD and whatever agent is 38

1 operating the PDD. They shouldn’t be haggling it out as to

2 who is responsible in a given accident because that’s not

3 fair to the person who got hurt, you know, somebody gets

4 clipped by a PDD. Let them argue that out on their own,

5 but have the owner of the PDD responsible for the PDD.

6 It’s the way it works in -- I mean, it’s the way it

7 works -- I mean, taxis. You know, the taxi has the

8 insurance. It may hassle with the driver later on, but as

9 to the third-party claimant, it’s the business entity who’s

10 responsible.

11 I will acknowledge -- and I think Chairman

12 Hennessey made reference to it -- I know that anytime w e ’re

13 talking about a new form of transportation and we get

14 invited to testify, we always sound like somebody’s

15 grandparent. You know, we can’t understand these new­

16 fangled things -­

17 MAJORITY CHAIRMAN HENNESSEY: We all like our

18 grandparents. They’re liked.

19 MR. MARSHALL: We all love our grandparents, but

20 there’s a time and a place. And, you know, we always come

21 across as the outfit that’s impeding new technology,

22 impeding innovation. You know, I don’t think that’s fair

23 to us. I know it’s not true. I mean, in fact, we embrace

24 new technologies. And we do it in particular in

25 transportation. We try to do it with transportation safety 39

1 measures. I mean, you know, you heard us talk about cell

2 phone usage, and there are means to limit that. I mean,

3 frankly, we wish there was more concern about technology

4 that makes things safer, not just faster or not just a new

5 business opportunity.

6 I would say that to the extent we do come across

7 as very safety-oriented, it's true. We make no apologies

8 for that. You know, and I think that as you bring in these

9 new technologies, whether they be PDDs, whether they be

10 electronic-assisted bikes that'll be the subject of

11 tomorrow's, you know, hearing, whether they be scooters

12 that, you know, Representative Rothman had reference to, we

13 don't have any philosophical argument with them. What we

14 do say is make sure that there's oversight of them because

15 the challenge is you have an infrastructure that wasn't

16 designed for them, didn't envision them. How do you make

17 sure that works?

18 And we would note, you know, anybody who knows

19 the business of insurance, we're pretty heavily regulated

20 ourselves. So a lot of the times when we come up here and

21 we talk about safety concerns, we talk about it in the

22 context of this is what we're asked. This is what you ask

23 of us. We don't shirk from that. We accept that. That's

24 our responsibility. It comes at a cost, but it's a fair

25 cost to protect consumers. And I think that's what we're 40

1 talking about here. We're not against PDDs. We see the

2 role. We see the value. I mean, it's still evolving. But

3 I do think that you want to make sure that as they're going

4 to come onto our roads and our sidewalks at speeds that are

5 pretty fast, you want to make sure that it's done safely

6 and responsibly. And our suggestions have been in that

7 vein. Thank you.

8 MAJORITY CHAIRMAN HENNESSEY: And thank you, Sam.

9 Really I do appreciate the thought processes that are

10 involved in the formulation of questions. That's why we

11 ask you to review them and invite you to testify, the

12 Insurance Federation, you in particular, but the Insurance

13 Federation in general.

14 It would seem to me that you've raised a lot of

15 important questions. Some of those, however, might have

16 been answered or might at least have been to some extent

17 answered by other States and the Insurance Federations,

18 your counterparts, in other States. I'm wondering like if

19 you go to conventions or if you have -- are there papers

20 that circulate within the insurance industry that say this

21 is what has been the experience in Arizona and in

22 California and in Ohio. We've heard that they all have

23 these kind of devices authorized, and I'm just wondering

24 if, you know -­

25 MR. MARSHALL: I'm not a — 41

1 MAJORITY CHAIRMAN HENNESSEY: It’s all new, I

2 know.

3 MR. MARSHALL: I ’m not a convention kind of guy,

4 but if I did go to conventions, I would raise this. It’s

5 still a bit new and frankly, you know, as an industry w e ’re

6 probably catching up a bit. You know, in some States and

7 in some localities, you know, some would say 3 miles an

8 hour. that’s a lot slower than -- it’s 25 percent of 21

9 miles an hour. you know, some of them might -- I think

10 everybody’s still coming to grips with it. You know, I

11 don’t know that the remote -- and, you know, the remote

12 ones are fully operational, you know, to the extent that

13 they’re out there. You know, I think -­

14 MAJORITY CHAIRMAN HENNESSEY: You think there

15 might be pilot programs yet?

16 MR. MARSHALL: And, you know, they’re pilot

17 programs and the like, you know, but I think -- and w e ’re

18 gathering information. Not that many States where they

19 have them. You know, I mean, we have 50 States, so if

20 somebody says, hey, these exist in 12 States already, there

21 are 38 States where they don’t have them. You know, I

22 mean, w e ’re all -- this is the very beginning of it, and

23 it’s a new field. I think FedEx is clearly one of the

24 leaders and I think one of the more responsible ones in

25 terms of the innovations. It’s a matter of -- but from our 42

1 perspective, whether it’s -- you know, with something like

2 this, it’s a matter of accountability, and it’s a matter of

3 knowing how ready they are within our infrastructures, our

4 local infrastructures.

5 You know, the bill talks about being able to stop

6 on a clean, level, flat surface, you know, dry surface.

7 Okay. That’s great in Arizona, not so great in Pittsburgh.

8 You know, these things -- you know, you’re going to want to

9 use them on a cold, rainy, snowy day. That’s when you

10 really don’t want to go down to the store and pick

11 something up. You can say, here, you know, let the FedEx,

12 you know, robot take it to my home. Okay. But that may

13 not be when a sidewalk is quite ready to be traversed.

14 That may not be but the roadway is.

15 It’s a matter of having a better feel for the

16 technology. If somebody tells me that in January, you

17 know, in less than 18 months, less than a year and a half

18 from now that w e ’re ready to have as many of these as the

19 marketplace wants on our sidewalks, you know, operating

20 remotely or autonomously, whichever one it is, you know, I

21 think we need to learn a lot more. I don’t know that

22 there’s a rush to do that. Those are questions that I

23 think the Committee needs to wrestle with.

24 MAJORITY CHAIRMAN HENNESSEY: Okay. We have a

25 question from Representative , and then w e ’ll 43

1 go to Representative Schroeder after him.

2 REPRESENTATIVE KAUFER: Thank you. Thank you,

3 Mr. Marshall. Thanks for being here, much appreciated.

4 Yes, I think Chairman Hennessey asked the first

5 question I had of if you were hearing about any accidents

6 that were happening in other States where this was

7 regulated, if it has become a major concern or anything

8 from the conventions like he mentioned. Is this something

9 that you're hearing a lot on the national level of -­

10 MR. MARSHALL: No, not yet, and I think that

11 reflects -- I mean, it's still -­

12 REPRESENTATIVE KAUFER: Right. It's a new —

13 MR. MARSHALL: It's still very fledgling. I

14 mean, you know, where you get concerned is if all of a

15 sudden -- I mean, if in two years, you know, every evening

16 on 2nd Street in Harrisburg you got, you know, 50 of these

17 things bobbing up and down 2nd Street, you know, bringing

18 pizza or dinner or cocktails or whatever, all, you know, by

19 10 different companies because the city of Harrisburg had

20 no way of regulating them, no way of controlling the

21 numbers, no way of controlling the businesses. You know,

22 we're not there yet. I mean, you know, I think -- you

23 know, these aren't cheap. You know, they're new, the

24 technology is new. We're a little bit a ways before this

25 is a cost-effective way of saying here's your pizza, Sam. 44

1 I mean, it's -- you know, but that'll happen. If done

2 responsibly, that will be a good thing.

3 But, again, it goes to the localities. I mean,

4 you can look here. We have some sidewalks that, you know,

5 are pretty wide and expansive and maybe can handle it, not

6 at all hours but at certain hours and certain sidewalks.

7 We have others that, you know, frankly, they're not all

8 that great for pedestrians, you know, so, you know, you

9 need to do that.

10 I think those are questions that we have in terms

11 of the technology here -­

12 REPRESENTATIVE KAUFER: Yes —

13 MR. MARSHALL: -- still evolving.

14 REPRESENTATIVE KAUFER: — and I think you're

15 hitting a point that I was going to ask as well was, you

16 know, obviously, this is a growing technology. I would

17 expect to see more and more of this, as you were saying.

18 And I wasn't sure if you could explain to me, you know, I

19 know in the bill -- and I think even Representative Rothman

20 commented that these would be treated as pedestrians as

21 opposed to motor vehicles. From your perspective is there

22 a particular reason why they'd be classified one way or the

23 other, as pedestrians and not as motor vehicles according

24 to Section 102?

25 MR. MARSHALL: I mean, I would imagine that the 45

1 reason is for sidewalk usage. I mean, when we get into the

2 actual drafting -- and this is where Josiah and Meredith

3 will say, oh, God, we got to listen to Sam again. But they

4 do become problems when it’s a pedestrian because a

5 pedestrian has a -- you know, in terms of auto insurance,

6 there are liabilities and there are rights that a

7 pedestrian has that are unique. You know, to consider that

8 a pedestrian is FedEx or whoever, you know, the maker or

9 the operator of the machine is, that’s not a -- I mean, I

10 think it’s meant to be pedestrian meaning they can be on

11 sidewalks just like pedestrians. You know, the only thing

12 I ’d note is, I mean, they’re bigger, faster, and maybe less

13 responsive to human voice, you know, commands than your

14 average pedestrian. I mean, you know, none of us are going

15 12 miles an hour or 20 -­

16 REPRESENTATIVE KAUFER: Well, and that makes

17 sense to me of what you’re saying is the pedestrian, for

18 the purpose of being able to be on sidewalks, not for

19 pedestrian for the purpose of insurance -­

20 MR. MARSHALL: Yes.

21 REPRESENTATIVE KAUFER: — which is why I was

22 trying to comprehend that as well, so -­

23 MR. MARSHALL: And there are -- within the motor

24 vehicle financial responsibility law, there are rights that

25 a pedestrian has and obligations that an auto insurer or an 46

1 insured driver owes to a pedestrian that wouldn’t

2 necessarily make sense to owe it to a PDD.

3 REPRESENTATIVE KAUFER: Right. Thank you. Thank

4 you, Chairman.

5 MAJORITY CHAIRMAN HENNESSEY: You’re welcome.

6 Chairman Carroll.

7 DEMOCRATIC CHAIRMAN CARROLL: Thank you, Sam.

8 Thank you so much. Can you reconcile for me -- you just

9 touched on it briefly, Chapter 17 of the Vehicle Code, the

10 5/15/30 limits that exist now, and this language of

11 $100,000 liability coverage. And not being an insurance

12 expert, what does the $100,000 -- how do I reconcile that

13 with the 5/15/30?

14 MR. MARSHALL: The 5/15/30, which is the minimum

15 that you have to have in the world of auto insurance, and

16 it’s generally the amount purchased by, you know, frankly

17 low-income Pennsylvania, you know, and that’s the balance.

18 How do you -- you know, people need to be able to drive,

19 and, you know, how much can they afford. And it’s to

20 protect third parties.

21 This is substantially more, but recognize, you

22 know, frankly, if you’re FedEx and one of your PDDs, you

23 know, God forbid, but gets into a horrendous accident,

24 you’re going to want more than $100,000 of coverage because

25 you’re going to have more than $100,000 of exposure. You 47

1 know, so the number, the amount of insurance is -- you

2 know, I mean, you -­

3 DEMOCRATIC CHAIRMAN CARROLL: Or the use of the

4 phrase "liability coverage” versus "bodily injury” or the

5 other terms that are in Chapter 17.

6 MR. MARSHALL: Seventeen, but that’s because in

7 the world of auto insurance, there are a lot of subsets.

8 You know, there’s first-party, third-party liability,

9 property damage, medical. Here I believe this is meant to

10 refer to just general liability exposure.

11 DEMOCRATIC CHAIRMAN CARROLL: So that language

12 causes you no concern then it sounds like?

13 MR. MARSHALL: No. You know, the only part that

14 causes me concern is there are parts there that talk about

15 when is it the business entity that is solely responsible?

16 You know, adverbs in statutes are always a dangerous thing

17 to begin with, but, you know, who’s responsible, the

18 business entity or the agent? I would recommend make the

19 business entity responsible. It can then hassle it out

20 with the agent. But, you know, as to the pedestrian,

21 whoever it may be, I think it makes a lot more sense that

22 the -- you know, if I get hit by one of these, I don’t want

23 to have to, you know, hassle around, particularly if the

24 agent is somebody who’s operating out of California. I

25 mean, you know, how do I -- you know, I mean, it may not 48

1 even be a registered agent in Pennsylvania. I mean, there

2 are just questions like that. You know, you shouldn't have

3 to go through that discovery process.

4 DEMOCRATIC CHAIRMAN CARROLL: Perfect, thank you.

5 MAJORITY CHAIRMAN HENNESSEY: Another situation

6 that comes to mind is that if I'm driving along and I hit a

7 PDD, then that propels him into someone else, you know, so

8 you have really some -- the possibilities are almost

9 endless in terms of what could go wrong. It's almost

10 amazing that, you know, in the industry, at least what

11 we've seen so far, is that those accidents don't happen

12 because people have thought it out fairly well, not

13 necessarily perfectly but pretty well.

14 MR. MARSHALL: And you know what, but I think

15 that's in part -- you know, in the world of insurance what

16 we really pay most attention to are when the numbers reach

17 a critical point. We're not at that critical point yet

18 with PDDs in terms of their experience, and that's what

19 we're saying in terms of any enabling legislation for them

20 here. You want to make sure that it's flexible enough that

21 you can adapt to what [inaudible] -­

22 MALE SPEAKER: We lost sound, Chairman.

23 MAJORITY CHAIRMAN HENNESSEY: What's that?

24 MALE SPEAKER: There you go. We finally got you

25 back. We lost you there for a while. 49

1 MR. MARSHALL: Well, you missed a really good

2 conversation.

3 MAJORITY CHAIRMAN HENNESSEY: Okay.

4 Representative Schroeder you had a question or some

5 questions?

6 REPRESENTATIVE SCHROEDER: Yes, I just had a

7 quick question. So to get back to the insurance aspect

8 with insurance plans, do you believe that insurance

9 providers can come up with specific insurance plans for

10 this type of new technology, or are you saying that they're

11 not interested in covering new technologies?

12 MR. MARSHALL: No. I suspect a lot of my clients

13 would love nothing more than to, you know, do the insurance

14 for FedEx. We'll certainly provide that coverage. You

15 know, I mean, our concern isn't can we cover, you know, a

16 large company like FedEx. Yes, of course, and FedEx -- you

17 know, and FedEx is probably self-insured for an awful lot

18 of its liability exposure, you know, as any entity of that

19 size would be.

20 MAJORITY CHAIRMAN HENNESSEY: Sam, could you keep

21 closer to the mic, please, because -­

22 MR. MARSHALL: I'm sorry. So, yes, you know,

23 we'll be able to provide that coverage. The real question

24 you have is, you know, for a claimant, whether it's a

25 pedestrian, you know, a bicyclist, or a person in a car who 50

1 gets hit by a PDD, you know, making it clear as to how they

2 proceed with their claim, you know, as between the business

3 entity whether it’s, you know, FedEx or some agent that it

4 retained. I think that’s where you want to make it clear

5 in terms of who’s responsible.

6 REPRESENTATIVE SCHROEDER: Okay. Yes, I was just

7 -- and the comments with Representative Kaufer, what you

8 answered, you know, a bunch of them bustling down the

9 street, I feel like if we had that many bustling down our

10 streets, like our economy’s looking in good shape, so I ’m

11 all about that. But thank you for your answer.

12 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

13 We were joined by Representative from Bucks

14 County virtually. Perry, unmute your computer and fire

15 away. And then w e ’ll go to Ed Neilson after him.

16 REPRESENTATIVE WARREN: So, actually -- hi, Mr.

17 Marshall. I ’m also on the Insurance Committee, so I hear

18 Mr. Marshall testify quite frequently. You pretty much

19 answered my question in his response to Chairman Carroll,

20 but it was what insurance products do you envision insuring

21 these devices, both for user and pedestrian who may be

22 injured. And you seem to revolve around auto insurance

23 policies. But would a homeowner’s policy, for example,

24 maybe come into effect if the device were to strike a

25 resident while riding up the pathway to the front door or 51

1 such? Are there other insurance products that may be drawn

2 into this industry? Thank you.

3 MR. MARSHALL: And the answer is yes. You know,

4 there would be -- you know, I mean -- you know, generally

5 when you’re talking about, for instance, homeowner policy,

6 that’s the homeowner’s liability to third parties. I ’m not

7 sure that we envision a scenario where, you know, somehow,

8 you know, the PDD, you know, is going to be damaged by the

9 homeowner as much as the other way around. But, you know,

10 I mean, that -- you know, you’ll get claims. I mean, if -­

11 you know, your homeowner policy can cover you for damages

12 if you’re riding a bike. If you get clipped by a PDD, your

13 homeowner may pay and then seek recovery from a PDD. And

14 so, you know, there’d be other forms of insurance.

15 My reference to the auto end -- and

16 Representative Kaufer had raised it -- is that there are

17 times in the motor vehicle responsibility law, financial

18 responsibility law, that it refers to a pedestrian as a

19 term of art, and it’s a very specific term in terms of what

20 rights pedestrians have under auto policies and what

21 obligations auto policies have to pedestrians, and that may

22 not coincide with the rights and obligations to a PDD. And

23 that’s where you’d want to make that distinction. It’s one

24 thing to say a PDD has the same operating privileges on

25 sidewalks that a pedestrian does. It’s another thing to 52

1 say it has all the same, you know, avenues of recovery that

2 a pedestrian does.

3 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

4 Representative Warren, do you have any other questions?

5 REPRESENTATIVE WARREN: No. Thank you, Chairman.

6 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

7 Representative Ed Neilson.

8 REPRESENTATIVE NEILSON: Thank you, Chairman. I

9 just want to follow up on Representative Warren. So, Sam,

10 I’m just thinking of my neighborhood in particular and

11 where we are in the city and these things running bike

12 lanes and bikes swerving out to get out of the way because

13 they’re going to have the same rights -- if I ’m

14 understanding the legislation -- as a pedestrian. But I ’m

15 looking at my kids who ride down the sidewalk and somebody

16 swerves out of the way and drives up on one of the

17 neighbor’s hills and lawns and gets hurt. That kid gets

18 hurt, that’s on me, right, even though he swerved out of

19 the PDD, that puts my homeowner’s at risk? Is that what

20 I’m understanding you to say?

21 MR. MARSHALL: Yes, if the kid swerved onto your

22 property, you know, I ’m not sure the likelihood of that,

23 but, yes, that would -- your homeowner policy -- you as the

24 homeowner might be initially liable, and then you’d either

25 recover or you’d use as a defense that it was really the 53

1 PDD's fault.

2 REPRESENTATIVE NEILSON: Yeah, I'm just thinking

3 of like pulling the wagons down and stopping and swerving

4 out of the way to get out of the way of this because our

5 sidewalks, like you said, are all different widths. Some

6 you can walk side-by-side. Some you can't. You know, I

7 mean, it's just -- and everybody walking nowadays, I mean,

8 I live on one of those streets there's a lot of walkers,

9 and I just can't imagine one of these coming down and not

10 interrupting the community itself. Now, Philadelphia, like

11 you said, we're filled with bike lanes. And it's my

12 understanding these may or may not be able to operate in

13 bike lanes. I guess we'll get more from FedEx later when

14 they come and testify because there's a lot of questions

15 here. And I'm as concerned -- and the liability end, I

16 think you answered all those questions, yes, yes, yes.

17 Sam, I did a little investigating on concrete

18 slabs and sidewalks. They're all poured at different

19 lengths and can hold different weights. Is there any

20 concern on that, on who's liable for the destruction of

21 someone's sidewalk? I mean, if my sidewalk is only two

22 inches thick, it can only hold up to 500 pounds

23 structurally is what it says on the PSI requirements. So

24 who's going to cover the damage to that?

25 MR. MARSHALL: You know what, you've done a lot 54

1 more -­

2 REPRESENTATIVE NEILSON: See, there's a lot of —

3 MR. MARSHALL: -- research than me. I didn't

4 know about the -­

5 REPRESENTATIVE NEILSON: — questions here. I

6 just -­

7 MR. MARSHALL: But, you know, I mean, what you

8 touch on, Representative, what you've gone to is the need

9 for the localities to be able to have a role and maybe, you

10 know, frankly, just what you're talking about, the ultimate

11 role. You know, certainly if your neighborhood has

12 sidewalks that can only handle 500 pounds, then you don't

13 want a 550-pound PDD operating on it. If your neighborhood

14 has, you know, a very narrow sidewalk, it may not want a

15 PDD operating on it. That's where it really does become a

16 local concern, and that's our -- and, you know, by the same

17 token, we would talk -- you know, bike lanes.

18 You know, I'll actually not disagree with you but

19 I'll question, I mean, I'm a Philadelphia guy. We don't

20 have that many bike lanes in Philadelphia. We have them on

21 some of the major thoroughfares, but we don't have them -­

22 I mean, if you're in Center City, you have it -- two

23 Philadelphia guys. As you know, we have them on Market

24 Street, but we don't have them on any of the numbered

25 streets. So, you know, you get into a question of -- and, 55

1 you know, our bike lanes are about as wide as a PDD, so,

2 you know, that doesn’t match well with trying to get around

3 each other. You know, there’s not -­

4 REPRESENTATIVE NEILSON: Right. Somebody’s

5 swerving -­

6 MR. MARSHALL: There’s not the same

7 [inaudible] -­

8 REPRESENTATIVE NEILSON: — out into traffic

9 here, and that’s where I ’m a little concerned.

10 MR. MARSHALL: And when you into autonomous or

11 remote-controlled as opposed to somebody being right there,

12 you know, within 30 feet, that’s where it becomes -- you

13 know, that’s a question of how the technology is ready, but

14 it’s also a question -- and you go to sort of what’s our

15 real underlying concern and where you really need the

16 localities. As innovative as these are, they’re only going

17 to work as well as your infrastructure allows. And, you

18 know, w e ’re not going to revamp, you know, our entire

19 sidewalk system to be able to handle statewide 550-pound

20 devices because you’re going to have sidewalks like

21 Representative Neilson’s that just aren’t designed for

22 that. And that’s why you really do need in any legislation

23 a lot more local control and, you know, final say on how

24 these work.

25 REPRESENTATIVE NEILSON: The last thing, at 30 56

1 feet you might as well stand out front of my house. It’s

2 faster to walk than it is to drive one of these around I ’m

3 sure, so, you know, just saying. Thank you, Chairman.

4 MAJORITY CHAIRMAN HENNESSEY: You’re welcome,

5 Eddie. And probably that means that your pizza will arrive

6 a little colder than the normal person’s pizza. I ’m

7 thinking of like -­

8 REPRESENTATIVE NEILSON: That’s why I had a lot

9 of kids, Mr. Chairman. That’s why I got five kids, and

10 three out of five drive, so they can go pick my pizza up.

11 MAJORITY CHAIRMAN HENNESSEY: Okay. One of the

12 things that occurs to me is like trying to navigate the

13 city sidewalks at times that have been disrupted by tree

14 roots, you know, massive oak trees that -- to some extent I

15 guess these robots -- and w e ’ll probably hear from Scott

16 Pauchnik from FedEx they might be able to be more stable

17 navigating those -- I forget what they call it when the

18 sidewalks jut up because of the tree roots and things.

19 MR. MARSHALL: You’re right. And I think

20 actually some of the -- you know, from the, you know,

21 videos that w e ’ve seen, you know, some of the FedEx

22 technology enables you to do that just like it can climb up

23 stairs. I mean, it’s actually the same technology that was

24 originally invented with the Segway, you know, to be able

25 to climb steps and things like that. I mean, that’s very 57

1 true. And that’s a question of, okay, what are the

2 standards for PDDs in terms of the technology that they be

3 able to do that. But a locality is going to have -- you

4 know, I mean, how you navigate, I mean, yes, they’re very

5 uneven sidewalks. There are also sidewalks with a lot of

6 mixed use. You know, what’s the store traffic in front of

7 it versus what’s the neighborhood traffic? And it’s one

8 thing to have a sidewalk going down a residential single­

9 family home area. It’s another thing to have a sidewalk,

10 you know, on 2nd Street, you know, here in Harrisburg with

11 a lot of bars and restaurants spilling out. And those are

12 the concerns that you have.

13 I mean, you know, and, you know, you have a

14 general concern, you know, frankly, Representative

15 Schroeder mentioned, gee, wouldn’t it be great if we had a

16 whole of them. That would be a sign that people were

17 eating a lot at home, but, you know, if you had a whole lot

18 of them and you wanted to have a pedestrian-friendly

19 downtown, that may not work. Frankly, I was surprised that

20 PennDOT said it wants them off of the roads and onto the

21 sidewalks. You know, depending on your community, you may

22 say, God, I actually wanted it exactly the opposite.

23 MAJORITY CHAIRMAN HENNESSEY: Right.

24 MR. MARSHALL: So, you know, that’s a point of

25 local interest. 58

1 MAJORITY CHAIRMAN HENNESSEY: Yes. Are you done?

2 Okay. All right. Yes, thank you. I invited your

3 questions. The reason we wanted you to come in is that you

4 do ask questions. You do think, you know, about the future

5 and what possibilities exist. And it struck me as you were

6 testifying probably there are people out there watching on

7 PCN who will roll their eyes and so, oh, my God, this kind

8 of stuff will never happen. And for most of us, we don't

9 have insurance claims. Thankfully, you don't have to deal

10 with this. But for the person who does get involved in it,

11 it's vitally important that we think it through very

12 carefully. So we appreciate the input that you have. We

13 don't want to put you on the spot.

14 MR. MARSHALL: No, no, I -­

15 MAJORITY CHAIRMAN HENNESSEY: It's sometimes -­

16 MR. MARSHALL: -- always feel welcome and -­

17 MAJORITY CHAIRMAN HENNESSEY: That's what you

18 guys do better than anything else. You think about the

19 scenarios and try to figure out how to avoid them, so we

20 appreciate your testimony.

21 MR. MARSHALL: That's why we're wondering how you

22 yell stop to a remotely controlled vehicle.

23 MAJORITY CHAIRMAN HENNESSEY: Robot, yeah.

24 MR. MARSHALL: The other thing we were wondering,

25 you know, just because we actually do think about this 59

1 stuff -­

2 MAJORITY CHAIRMAN HENNESSEY: There's probably

3 some IT guy out there trying to figure out -­

4 MR. MARSHALL: Trying to -­

5 MAJORITY CHAIRMAN HENNESSEY: -- how to build in

6 recognition of that.

7 MR. MARSHALL: They'll have a way to say, hey,

8 you know, there's going to be a voice recognition but -­

9 MAJORITY CHAIRMAN HENNESSEY: Right.

10 MR. MARSHALL: -- it can't just be any voice that

11 says stop because, you know -- when we first looked at

12 this, we thought, okay, this is going to be the modern

13 equivalent of cow-tipping. You know, that's just what kids

14 are going to do. You know, hey, let me turn over the, you

15 know, the remotely controlled -- and, you know, we were all

16 young once. And those are the kinds of questions that you

17 need to ask and think about before you turn over the

18 sidewalks and the roads to these. Thank you.

19 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you,

20 Sam.

21 Our next testifier is FedEx Corporation in the

22 person of Scott Pauchnik, who's the State and Local Affairs

23 Representative for FedEx. Having set the table for you,

24 Scott, come on up and try to tell us the answer to some of

25 the questions we've already raised. And, by the way, 60

1 thanks for sending the video. As I said earlier, we sent

2 it out to our members so they could see what the future

3 holds for us -­

4 MR. PAUCHNIK: Absolutely.

5 MAJORITY CHAIRMAN HENNESSEY: -- and what w e ’re

6 trying to regulate here.

7 MR. PAUCHNIK: Yes, for sure.

8 MAJORITY CHAIRMAN HENNESSEY: I appreciate that.

9 It’s so much easier to see it on a video and understand how

10 incredible these things are but also to let our minds

11 imagine what other kinds of situations could develop.

12 MR. PAUCHNIK: Yes, and hopefully —

13 MAJORITY CHAIRMAN HENNESSEY: So —

14 MR. PAUCHNIK: Hopefully, moving forward, w e ’ll

15 be able to bring it in to actually show you a demonstration

16 of the PDD, of our own PDD anyway, Roxo.

17 MAJORITY CHAIRMAN HENNESSEY: Okay.

18 MR. PAUCHNIK: So —

19 MAJORITY CHAIRMAN HENNESSEY: Well, w e ’ll look

20 forward to that.

21 MR. PAUCHNIK: Good afternoon, Chairman

22 Hennessey -­

23 MAJORITY CHAIRMAN HENNESSEY: Good afternoon.

24 MR. PAUCHNIK: -- Chairman Carroll. My name’s

25 Scott Pauchnik. I am the State and Local Government 61

1 Affairs Representative for FedEx Corporation, and I

2 represent the Mid-Atlantic region, Pennsylvania, Ohio,

3 Maryland, Delaware, West Virginia. FedEx has a

4 significantly large footprint in the State of Pennsylvania.

5 We have our corporate headquarters for our ground segment

6 located in Moon Township. We employ nearly 16,000

7 Pennsylvanians. And then in addition to that we work with

8 independent service providers, 176 of them here in

9 Pennsylvania, that employ an additional 6,500 employees.

10 So w e ’re looking at nearly 22,000 employees that we have

11 some type of footprint or our hands in in the State of

12 Pennsylvania. So we have not only that, our largest hub,

13 which you had seen before in the Lehigh Valley, the ground

14 hub.

15 As you all know, e-commerce is booming,

16 especially now with the COVID-19 pandemic. We have seen

17 astronomical numbers to the point where our business is

18 busting at the seams. Supply chains are overloaded.

19 Logistics are challenging. And something like what we have

20 before you today, this PDD legislation, can help supplement

21 that and help with that last-mile delivery, which is the

22 most difficult and most expensive in the supply chain.

23 We started in 2019 developing our PDD. Roxo is

24 the name we gave it. Don’t ask me how that happened, but

25 it’s a great name. And Roxo is a bot designed off of DEKA 62

1 Research, the iBot wheelchair model that was designed for

2 veterans coming back who were wounded, it was initially

3 designed. And so it’s a very stable base that Roxo sits

4 on, one that can navigate and traverse different types of

5 terrains, as well as mobilize in inclement weather and

6 climb steps if they are terrace-style steps and climb up

7 over curbs.

8 And it’s worth mentioning now that, you know, one

9 of the things that -- the ADA question as to whether or not

10 it would interfere with the ADA-compliant sidewalks, our

11 bot has the ability to actually go up over the curb, which

12 would not cause any issues with anyone that’s in the ADA

13 portion of the sidewalk.

14 We primarily are looking at Roxo to operate in

15 that general area of the side of the road, and then, when

16 necessary, to get on the sidewalk if there is some type of

17 obstruction while moving forward. W e ’ve had a lot of

18 discussion, and I know Sam had mentioned, you know, how is

19 this really going to work? Well, I ’ll just give you an

20 example. First of all, in an urban setting where you don’t

21 have good sidewalks, you don’t have bike lanes, cars are

22 parked on the road, there’s massive amounts of pedestrians,

23 it’s not quite there yet. So this is more designed for

24 that suburban area -- for now anyway, in the beginning, in

25 phase 1 -- suburban area that has less of that traffic on 63

1 the sides of the road, less of that traffic on the

2 sidewalk, close to a residential area, as well as close to

3 a retail center location.

4 Many of our customers are retail-type businesses.

5 They are looking for a way to take care of the demand that

6 was there well before COVID-19. They came to us in 2019

7 and said we have a demand to get that last-mile delivery,

8 whether that's in today's day you ordered pickup groceries

9 and you forgot to put on there the garlic salt or you

10 forgot to put on lettuce, and Roxo was able to get you that

11 type of product within a half an hour to 45 minutes without

12 you having to find time again on the list of the grocery

13 store's pickup or go to the actual grocery store yourself.

14 So the demand was there prior to COVID-19. It is even more

15 prevalent today after the pandemic.

16 And that's why I'd like to just mention that at

17 first it was a, you know, two- to three-type-year business

18 plan, which has changed to a now-business plan because of

19 the pandemic. So that's why we're before you and trying to

20 really do as much as we can to make sure you understand how

21 important it is that this is maybe part of a post-pandemic

22 or during-the-pandemic legislative response as something as

23 a tool in the toolkit that the consumer can use.

24 I can get a little more details, you know, zero

25 emissions, battery-operated. Our bot is larger in stature. 64

1 It sits at about four feet tall. It takes away that whole,

2 you know, possibility of it, you know, not being -- it’s at

3 eye level, so most people would be able to see it. It has

4 sensors, LiDAR, RADAR, GPS navigation, a number of other

5 proprietary technologies that will allow for it to navigate

6 around the streets, that would allow it to map the streets

7 in ways that we don’t even know today how it’s going to be

8 able to map because it maps so detailed cracks in the road,

9 you know, fire hydrants. You know, once it goes to one

10 location one time, it knows exactly where everything is at,

11 and any changes along the way, w e ’ll make those changes

12 appropriately.

13 As I said, capable of operating in inclement

14 weather. This is, you know, kind of unique to Roxo. You

15 know, I can’t speak on behalf of what else is out there,

16 but I can say that Roxo is able to navigate its way through

17 in rain situations. It has the systems and safety

18 technologies attached to it that would allow for it to do

19 that, as well as winter weather to some degree. Obviously,

20 if there’s a couple feet on the road, then it wouldn’t be

21 able to operate.

22 The advanced machine learning algorithms allow it

23 to not only map that to stop on the voice commands if

24 somebody is in the way, stop and recognize that there is an

25 obstruction. And if that obstruction would cause it to run 65

1 into a problem it could not navigate on its own, they're

2 all teleoperated. In other words, they're all able to be

3 teleoperated. And in this beginning stages of it, they

4 would be teleoperated for the period of time that you have

5 in the legislation, the 18 months, and even probably

6 beyond, until it is able to actually be out on its own.

7 And then after that, it would be monitored consistently and

8 constantly by a teleoperator.

9 It's a job-creator. Again, it's a supplement to

10 the industry. It's something that's new. You know, we

11 have, as Representative Schroeder mentioned in her

12 statement, the -- it would create jobs in the machine

13 maintenance side of things, in teleoperations, as well as

14 many other.

15 Twenty-one States have some type of PDD

16 legislation on the books, okay? Six of those States have

17 something that allows Roxo, our bot, to operate, which is

18 the heavier, much larger model, six of those States,

19 Virginia, Tennessee, Arizona, Texas, Utah, North Carolina.

20 MAJORITY CHAIRMAN HENNESSEY: And are those pilot

21 programs or are they fully legislated?

22 MR. PAUCHNIK: That's fully legislated out to

23 where they can operate.

24 MAJORITY CHAIRMAN HENNESSEY: Interesting.

25 MR. PAUCHNIK: Yes. Yes. And then the rest, the 66

1 rest of the 21 or what’s left over, most of them had

2 legislation moving, but, unfortunately, with the pandemic,

3 they have their abbreviated sessions, Maryland, for

4 instance. They really couldn’t act on it.

5 But the evolution of the PDD is what’s moving

6 everyone in the direction of increasing the weights, of

7 increasing the speeds, of allowing the actual bot to

8 operate, so it’s not necessarily that, you know, a State

9 enacted it because they only wanted to allow 50-pound

10 machines on the sidewalk. It’s more or less that that’s

11 what happened in 2019 or 2018. And now when we go in and

12 say, hey, we have a bot that’s a little bit bigger, does

13 the same thing, it’s got even more advanced technologies,

14 they are considering increasing the weights or, if they

15 don’t have legislation at all, starting off with something

16 that doesn’t have a weight limit or at least something that

17 would accommodate Roxo.

18 So it’s an important system for our ecosystem.

19 It’s an important system for e-commerce. It’s going to

20 revolutionize how products are delivered. I think that

21 this has nothing to do with the delivery service of our

22 regular systems that go through our hubs. This is that

23 last mile from retailer to consumer or retailer to

24 business. The machine, our machine in particular in our

25 business model would have it domiciled at the retail 67

1 location, so that would take away one segment of it having

2 to be on a roadway.

3 And keep in mind that this is all about

4 efficiency as much for us as it is for the consumer and the

5 local authorities. We welcome having discussions with

6 PennDOT. We welcome the local authority rule. We surely

7 don’t want to disrupt anything that’s already out there.

8 And we can’t. We can’t afford to. We can’t put this bot

9 in a situation where it cannot operate because of some of

10 the concerns that were raised earlier.

11 So by being able to have a plan, submit it to

12 PennDOT, work through the issues they have, and in addition

13 to that work with the local authorities, which the

14 legislation speaks to, I think we are poised to be ready to

15 move forward on these. Thank you for your time, and I ’m

16 happy to answer any questions.

17 MAJORITY CHAIRMAN HENNESSEY: Well, thank you

18 very much for your testimony. I ’ll just kick it off. I

19 think I ’ve seen it either in testimony or in news articles

20 that FedEx and others in that field are having trouble

21 finding qualified drivers and so that to some extent this

22 would answer that problem if you could deliver robotically

23 and stuff. I mean, is that the experience that you’re

24 hearing about, that people just, for whatever reason, don’t

25 want to be delivery drivers? 68

1 MR. PAUCHNIK: That's absolutely true. It's not

2 necessarily even that. It's finding a pipeline to get

3 young people excited about the industry because there is so

4 much potential for it. We have hired tens of thousands of

5 drivers since COVID-19 began in March. We've hired tens of

6 thousands of dockworkers and folks to actually work in our

7 warehousing sections. The industry alone was struggling

8 significantly with the recruitment and retention of

9 drivers. And, you know, that's apparent that we were, I

10 believe, 60 to 70,000 drivers short in 2018. Obviously,

11 industry picked up the pace and we were able to cover that,

12 but we're looking at something along the lines of 160 to

13 170,000 drivers short by 2028. And a lot of that has to do

14 just with the age, the aging folks that are actually

15 drivers. I think the median ages upwards of 66, 67 years

16 old. And so there's a real crisis within supply chain and

17 logistics. We are hiring. The industry is hiring.

18 MAJORITY CHAIRMAN HENNESSEY: Okay. One other

19 question. How many other firms even in the delivery field,

20 UPS, whatever, Amazon, how many competitors do you have

21 there? You're all looking for the best robotic vehicle to

22 be developed and maybe we don't come to, you know, one

23 idea. Maybe we end up like we have cars on the roadway, 40

24 or 50 or 60 or however many different makes and models that

25 are out there. 69

1 MR. PAUCHNIK: So —

2 MAJORITY CHAIRMAN HENNESSEY: Who is your

3 competition out there?

4 MR. PAUCHNIK: Yes, so competition, I wouldn’t

5 even call it that right now because this is such a new

6 industry, new part of the industry that there’s plenty to

7 go around if you will. But the others that are out there.

8 Amazon and Starship and FedEx are the three that we know of

9 that are really out in front or at least commonly out in

10 front of this. I ’m sure other logistics companies are

11 working on it as well, but -­

12 MAJORITY CHAIRMAN HENNESSEY: I ’m sorry, who were

13 the three, you and -­

14 MR. PAUCHNIK: Starship, was mentioned earlier,

15 that was working in Oakland, and then also Amazon. And

16 that’s why the legislation, we want to make it as inclusive

17 as possible. It allows for us to not only operate our bot

18 but everyone else is included as well.

19 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

20 Chairman Carroll.

21 DEMOCRATIC CHAIRMAN CARROLL: Thank -­

22 MAJORITY CHAIRMAN HENNESSEY: And then w e ’ll go

23 to Representative Schmitt.

24 DEMOCRATIC CHAIRMAN CARROLL: Thank you, Scott.

25 You said six States -- and you listed them -- have the 550- 70

1 pound Roxo authorization. Are any of those six employing

2 it?

3 MR. PAUCHNIK: Texas. Texas is.

4 DEMOCRATIC CHAIRMAN CARROLL: Okay. So in Texas,

5 then, the operator of the Roxo a FedEx employee or do you

6 guys farm that out to a third party?

7 MR. PAUCHNIK: That's a FedEx employee.

8 DEMOCRATIC CHAIRMAN CARROLL: Okay. And I know

9 you said through the whole hearing so far. Will they stop

10 if I say stop?

11 MR. PAUCHNIK: Yes. Yes, it's designed to do

12 that, absolutely. And -­

13 DEMOCRATIC CHAIRMAN CARROLL: So —

14 MR. PAUCHNIK: And only getting stronger when it

15 comes to, you know, recognizing not only sounds like every

16 sound possible that it would be able to differentiate

17 between, yes.

18 DEMOCRATIC CHAIRMAN CARROLL: Okay. How long

19 have they been operating in Texas? What's the experience

20 there, length?

21 MR. PAUCHNIK: It has been up a year and a half

22 in Texas.

23 DEMOCRATIC CHAIRMAN CARROLL: And what tweaks

24 have you made since it started in Texas to where we are

25 now? 71

1 MR. PAUCHNIK: Well, a lot of it has to do with

2 weather. You know, obviously, it’s different in Texas than

3 it would be here weather-wise, but we've also done some

4 beta testing along those lines in Manchester, New

5 Hampshire, as well as Memphis, Tennessee, to kind of get a

6 little grip on that. So a lot of it is the weather

7 enhancements and the mapping technology, which is something

8 that's proprietary to us that we are, you know, really

9 working on. It'll be as new as the bot is.

10 DEMOCRATIC CHAIRMAN CARROLL: And in Texas you

11 mentioned, you know, the area of Houston would be suburbia

12 it sounded like to me, somewhere where there was a housing

13 development, somewhere close by to a commercial, you know,

14 corridor somewhere?

15 MR. PAUCHNIK: Yes.

16 DEMOCRATIC CHAIRMAN CARROLL: And is that what

17 you've done in Texas as well?

18 MR. PAUCHNIK: Yeah, it's sort of like an initial

19 phase. That's the most practical at this time where we can

20 actually operate and, you know, really fine-tune the bot.

21 Moving forward, we hope to be in an urban area or even

22 somewhat in some cases a rural area where, you know, it

23 would be able to go from that retail location, whether it's

24 two or three retail centers out to, you know, three- to

25 five-mile radius. It's pretty good, and further if we can. 72

1 We ’re hoping -- three to five miles is efficient right now.

2 The bot is able to go nine currently on its batteries and

3 then without going onto a docking station and charging.

4 DEMOCRATIC CHAIRMAN CARROLL: My guess is — and

5 it’s just my guess after studying this last night and

6 hearing today -- that there'll be a vigorous discussion

7 over what sort of involvement local governments will have

8 with respect to where these are going to go. I'll be

9 shocked, truthfully, if we carve out the local governments

10 to the point where anything under 25 miles an hour they're

11 not going to have a say. My suspicion is they're going to

12 have a say. And they probably should have a say for all

13 the reasons that we heard this morning. So I hope that

14 you're open to a conversation that will include local

15 governments.

16 I know we'll hear from PSATS in a minute, but,

17 you know, and suburbia, it may be first-class townships, it

18 may be third-class cities, I'm not quite sure, but I hope

19 you will welcome the involvement at a more vigorous level

20 than the bill envisions now with respect to local

21 involvement. If we start down the path of telling the

22 locals we're going to shut them out, it will be a rocky

23 ride in the House to try and get something like this to the

24 finish line, it seems to me.

25 MR. PAUCHNIK: Yes, we're absolutely happy to 73

1 work with all entities involved. I mean, the biggest thing

2 is we want to make sure that we can plan for the future.

3 In other words, we don't want a local government to

4 completely outlaw us. We're happy to come in, discuss it

5 with them, find a way that makes it work so that their

6 residents and the consumers in their area have the same

7 abilities than others do. That's kind of our biggest

8 concern. And, as you can imagine, the business planning

9 behind that is do we come into Pennsylvania, do we have,

10 you know, a number of these ready to rock 'n roll, or do we

11 have to kind of piecemeal our business plan, which makes it

12 much more difficult.

13 DEMOCRATIC CHAIRMAN CARROLL: Yes, I mean, but at

14 the same time if we try and steamroll the locals, then

15 you're not going to get any authority to begin with, and

16 so -­

17 MR. PAUCHNIK: Right.

18 DEMOCRATIC CHAIRMAN CARROLL: -- you end up in

19 this exact same spot. Just -- and, you know, newsflash,

20 Pennsylvania is never at the front of the line for change,

21 so I think it's going to be incumbent upon you and all to

22 bring folks up to speed, the local government officials,

23 the residents, and the people who use the infrastructure

24 now. They're going to have to come to understand what this

25 all means and how does it affect their usage of sidewalks 74

1 and local and State roads.

2 MR. PAUCHNIK: Happy to work with them.

3 DEMOCRATIC CHAIRMAN CARROLL: So tons of

4 education work to do here. I look forward to the amendment

5 process because, undoubtedly, this will be subjected to,

6 you know, an amendatory process that will hopefully improve

7 this to the point where we can get some buy-in from

8 everyone.

9 MR. PAUCHNIK: Absolutely.

10 DEMOCRATIC CHAIRMAN CARROLL: Thank you.

11 MR. PAUCHNIK: Thank you.

12 MAJORITY CHAIRMAN HENNESSEY: Thank you.

13 Representative Schmitt?

14 REPRESENTATIVE SCHMITT: Thank you, Mr. Chairman.

15 Thank you, Mr. Pauchnik, for coming in this afternoon. I

16 find this technology certainly intriguing. There was a

17 question I had about Senate Bill 1199. Have you had a

18 chance to see that?

19 MR. PAUCHNIK: I have.

20 REPRESENTATIVE SCHMITT: On page 3, it talks

21 about the personal delivery devices, and it says,

22 "authorized operators, the following persons may operate a

23 personal delivery device.” It’s subparagraph 1. ”A

24 business entity or an agent of a business entity,” so I’m

25 assuming that for purposes of this proposed legislation a 75

1 business entity would be considered a person, but that’s

2 not my question. The question I have is, "The following

3 persons may operate a personal delivery device: a business

4 entity or an agent of a business entity that exercises

5 physical control over the navigation and operation of the

6 personal delivery device and it’s within 30 feet of the

7 personal delivery device." Then there’s a second

8 subparagraph.

9 My question applies to both of the subparagraphs.

10 I’m trying to figure out how a business entity can exercise

11 physical control over the navigation and operation of the

12 personal delivery device except through an agent.

13 MR. PAUCHNIK: Right. So the business entity, in

14 our case the business entity and the agent are the same

15 since they are an employee of FedEx that would be operating

16 or be able to operate the tele-operation of it. So maybe,

17 you know, w e ’re happy to work on language that maybe makes

18 that a little clearer, but that is our business model of

19 it. It’s not that w e ’re trying to avoid the liability that

20 was discussed earlier. I mean it’s essentially maybe the

21 details are just in the language.

22 REPRESENTATIVE SCHMITT: So the business entity

23 isn’t necessarily FedEx?

24 MR. PAUCHNIK: No, it would be FedEx.

25 REPRESENTATIVE SCHMITT: It would be FedEx? 76

1 MR. PAUCHNIK: In our case and according to our

2 business model it would be -- FedEx would be the business

3 entity, as well as one of our employees as the agent. And

4 w e ’re not trying to make the employee liable.

5 REPRESENTATIVE SCHMITT: No, I get that. I ’m

6 just trying to figure out how FedEx can exercise physical

7 control over the navigation and operation of the personal

8 delivery device except through an agent.

9 MR. PAUCHNIK: Well, the agent utilizes the

10 teleoperations of the bot to operate it if necessary. And

11 this is also, I believe, where it is the 18-month -­

12 REPRESENTATIVE SCHMITT: Right.

13 MR. PAUCHNIK: — within 30 feet —

14 REPRESENTATIVE SCHMITT: Right.

15 MR. PAUCHNIK: I ’m not sure. I think we were

16 trying to accommodate like I believe a PennDOT maybe

17 request that we do kind of ease into this, and that’s the

18 reason for that.

19 REPRESENTATIVE SCHMITT: Well, yes, and I see

20 that in subparagraph 1. Yes, it is only for the first 18

21 months or so but -­

22 MR. PAUCHNIK: Right.

23 REPRESENTATIVE SCHMITT: -- in subparagraph 2 it

24 says beginning January 1, 2022, a business entity or an

25 agent of a business entity that enables the operation of 77

1 the personal delivery device. And you’re saying FedEx is

2 the business entity.

3 And my question is really when you see one of

4 these coming down the street, it’s a 550-pound machine.

5 It’s coming down the street. Maybe my grandsons are

6 playing, you know, on the sidewalk, and I ’d like to know is

7 there a person that is exercising direct control over the

8 operation and navigation of this machine?

9 MR. PAUCHNIK: Well, look at it this way. Phase

10 1 of it somebody would be with the machine, and that’s

11 where w e ’re at, currently working on that, and that’s what

12 the 18 months allow. We really close to the point where it

13 would be teleoperated, in other words, somebody would have

14 physical direction or physical control over the device.

15 And then the last phase would be the full autonomous where

16 only if something would obstruct it, that it could not

17 navigate itself would a teleoperator be notified or it

18 would also be similar to somebody watching the screen with

19 these out there, and if it indicates that there’s an issue,

20 then they can respond.

21 So, right now, somebody’s with the machine. We

22 move to where it’s teleoperated. And then eventually with

23 all of the AI and technology that’s deployed on these, a

24 full autonomous machine.

25 REPRESENTATIVE SCHMITT: When you get to that 78

1 full autonomous stage, that third stage, would there be an

2 individual, and agent, a human being monitoring?

3 MR. PAUCHNIK: Yes.

4 REPRESENTATIVE SCHMITT: And how would that be

5 done?

6 MR. PAUCHNIK: Well, currently, the way we have

7 it operated would be at like a station where somebody would

8 be watching it via video screen. But I can see, as these

9 begin to grow, they would have these stations built in

10 other parts of the, you know, State or other parts of the

11 country that would be able to continue to monitor those.

12 And at any time, if necessary where the bot got into a

13 situation where it could not navigate, we have employees

14 that would be trained to go out and actually diagnose

15 whatever issues may be and deal with it.

16 REPRESENTATIVE SCHMITT: Okay. Well, thank you

17 very much.

18 MR. PAUCHNIK: Sure.

19 MAJORITY CHAIRMAN HENNESSEY: Okay. Thank you.

20 Representative Ed Neilson.

21 REPRESENTATIVE NEILSON: Thank you, Chairman.

22 MAJORITY CHAIRMAN HENNESSEY: You’re welcome.

23 REPRESENTATIVE NEILSON: Thank you for your

24 testimony. Just a couple questions. You talked about this

25 being a solution for the last mile, and then in the 79

1 legislation as you just pointed out was the operation

2 within 30 feet, an operator within 30 feet of that.

3 Doesn't that contradict that last-mile part?

4 MR. PAUCHNIK: Not necessarily. It's just

5 speaking to how the technology is evolving, and it allows

6 for the actual mapping to occur. So it's helpful to have

7 somebody walk alongside the bot so that it could continue

8 doing its mapping that it needs to do so that next time it

9 comes down the same route, it knows. So it's not

10 necessarily taking away the last mile. It still would have

11 to operate within efficiency parameters and safety measures

12 that we look for in it, so it's still able to operate -­

13 REPRESENTATIVE NEILSON: I kind of like the idea

14 because it allows us to get used to seeing this on our

15 streets as well. I mean, this is going to take people to

16 get comfortable and used to as well, so I think that will

17 help a little bit.

18 As far as you're operating like for a year and a

19 half in Texas, as you testified earlier, has your

20 employment there gone down or up? Like you stated in the

21 beginning that you have 23,000 employees in PA. You see

22 this increasing staff or decreasing? Because I see like

23 one person overseeing 30 robots at a time or something like

24 that. Where does that come in, and where's the training of

25 those employees in other States? Are they licensed? Are 80

1 the operators licensed? Is there any continuing education

2 on their training to make certain -- there were some

3 questions brought up about inspection of the units and how

4 the brakes are inspected and the units are inspected. Are

5 they inspected daily, weekly, monthly? Is that stuff that

6 we should be looking at in this legislation to make certain

7 that kind of stuff happens? A lot of questions there.

8 MR. PAUCHNIK: Sure. Thank you, Representative.

9 REPRESENTATIVE NEILSON: A lot of questions.

10 This is new to all of us, and w e ’re just trying to -­

11 MR. PAUCHNIK: Absolutely.

12 REPRESENTATIVE NEILSON: — get as much

13 information as we can -­

14 MR. PAUCHNIK: Sure.

15 REPRESENTATIVE NEILSON: — because it’s

16 concerning.

17 MR. PAUCHNIK: So on the job front we are

18 increasing jobs in every State across the union and around

19 the world to be honest, and a lot of that has to do with

20 not only the trajectory we were on with e-commerce growing

21 at a rapid pace prior to the pandemic, but the pandemic has

22 obviously put us in a situation where people are buying

23 more goods online and utilizing our delivery services.

24 This is a supplement to that delivery service. It has

25 nothing to do with -- not have a FedEx package from 81

1 whatever one of our customers it may be coming from on it.

2 It is essentially that that item that may be lost or that

3 you forgot to get at the grocery store or -- one good

4 example I like to use is the business entity to business

5 entity, which would be like a mechanic who you take your

6 car to. Obviously, not all your smaller mechanics have the

7 ability to keep all the parts and pieces that they need to

8 fix your vehicle. They would be able to dial -- and

9 currently, I believe the way the process works they would

10 call two or three different auto-parts centers and say,

11 hey, who can get me the parts the quickest, that's who gets

12 the business type thing. Well, in this case, instead of

13 having somebody have to, you know, go and get it or leave

14 their business to go and pick up parts, they can utilize

15 Roxo to bring brakes or whatnot.

16 As far as keeping an eye on the inspection side

17 of it, the maintenance side of things, you know, that's why

18 I believe that we have in the legislation a plan that we

19 need to submit to PennDOT. I think we'll work through

20 those things with the way the plan works and how the

21 machine operates with PennDOT. And so that, I think, would

22 help cover and alleviate some of the concerns that folks

23 have about the actual operation of it. So I hope that

24 answers a couple of the questions.

25 REPRESENTATIVE NEILSON: Yes, that's a couple of 82

1 them. The key to the inspections and stuff like that, my

2 feeling is that we should mandate it within only because to

3 keep everybody on the same playing field, so it’s just like

4 getting our car’s inspection and admission inspections and

5 stuff like that. I mean, there’s stuff that we mandate

6 that somebody comes in and looks at that, so those

7 standards in my opinion should be laid out within this

8 legislation. I ’d ask you to work with PennDOT to do that

9 across the board so we can get industry standards at

10 minimum, and anything above and beyond, maybe they could

11 work that out in regs.

12 You brought up -- first off, the Chairman talked

13 about that video. It was real good, and I was real

14 impressed how that basketball -- because you could see

15 that’s my kid running to that ball and that bot stopping on

16 a dime, that was great. But something else you brought up

17 was weather. Being in Pennsylvania and Texas, two

18 different things. Some people shovel their sidewalks, some

19 people don’t. I mean, weather as a big deal around here.

20 How much operations do you really do in bad weather like

21 snow and stuff like that, ice? How does it know between

22 ice and snow? I mean, you can stop on snow, ice you can’t,

23 stuff like that. Is there any incidents you can bring up

24 to us that you might think of that we should watch out or

25 be aware of that? 83

1 MR. PAUCHNIK: So a lot of that testing has taken

2 place in Manchester, New Hampshire, where DEKA Research is

3 located. And, obviously, if it’s a situation where the

4 roadway or the sidewalk is not passable and really icy

5 conditions, it would not be able to operate. But in a case

6 where you have a dusting, you know, maybe up to -- I think

7 it’s up to two inches of snow right now. W e ’re working on

8 snow tires for Roxo with some, you know, heavy tread on

9 them. And that’s the truth; we are. I mean, again, it’s

10 something that’s evolving constantly. And so we have been

11 testing in those conditions up in the Northeast -­

12 REPRESENTATIVE NEILSON: Great.

13 MR. PAUCHNIK: — to deal with that.

14 REPRESENTATIVE NEILSON: And the last one is

15 something that I asked that you didn’t touch on, the

16 training requirements and how many bots, the limitations of

17 how many bots an operator can operate.

18 MR. PAUCHNIK: Yes, so I don’t believe -- I ’m not

19 sure on how many bots it can operate. I will have to look

20 into that for you. But the training requirement obviously

21 is something that, you know, we take very seriously. Our

22 safety teams are, you know, top-of-the-line when it comes

23 to that. And, yes, there would be training opportunities

24 for people that would be teleoperating. There are examples

25 out there. I can’t tell you who the actual businesses are 84

1 that do PDD training or something to that effect or who

2 actually operate it, but I get some more information on

3 that for the Committee.

4 REPRESENTATIVE NEILSON: And just a side note,

5 this bot is not going to learn my wife’s name, right,

6 because, I mean, I get a lot of FedEx drivers, they know

7 her by name.

8 MAJORITY CHAIRMAN HENNESSEY: You’re in trouble.

9 REPRESENTATIVE NEILSON: Oh, I ’ve been in

10 trouble, Chairman. Thank you.

11 MAJORITY CHAIRMAN HENNESSEY: You’re welcome,

12 Eddie. Chairman Carroll.

13 DEMOCRATIC CHAIRMAN CARROLL: Scott, how do you

14 envision this 30 feet chaperone? How is that going to

15 work? I mean, so the robot is going on the sidewalk or

16 along the side of the road and the operator is walking, in

17 a vehicle? How does that work?

18 MR. PAUCHNIK: Yes, so currently, they’re walking

19 next to it, and that’s the variable speeds of Roxo. It’s

20 not going to come out of the gate going 12 to 25 miles an

21 hour, not at all. That’s not the case. If it’s on the

22 side of the road or up on the sidewalk, it’s obviously

23 going to switch itself to a much lower, you know, speed and

24 kind of -­

25 DEMOCRATIC CHAIRMAN CARROLL: Well, it’s not 85

1 going to switch itself because it's going to be remotely

2 operated.

3 MR. PAUCHNIK: Well, in this case it would be -­

4 that's correct. So they would use it and be able to walk

5 right next to it as it's going down the road. So the 30

6 feet, I don't know where that number really came from, but

7 it's something that allowed us to, you know, be close to

8 the machine. And then in a case where, say, it hits the

9 roadway that it envisions doesn't have any type of traffic,

10 no foot traffic, and we know that there's a lot of places

11 like that, it would be able to pick up its speed. We want

12 to make sure that it has an opportunity to pick up its

13 speed when it needs to, to slow down to two miles an hour

14 if it needs to when navigating around pedestrians or other

15 obstacles.

16 So in the case of 2nd Street, for instance, that

17 was discussed a few times, you know, it's not going to work

18 coming down 2nd Street, so it may, you know, cut up State

19 Street or maybe not State Street because there's a few

20 restaurants there, but it would find a way to get to its

21 destination without having to disrupt what's currently in

22 place. And that's a lot of why we have that discussion and

23 want to have that discussion with the localities, to say,

24 hey, look, this is really -- don't necessarily outlaw us

25 here. Let's talk about why -- you know, we can make this 86

1 work this way, and hopefully come to an agreement on that.

2 DEMOCRATIC CHAIRMAN CARROLL: All right. And

3 then for this 18-month period or however long that is and

4 the person within 30 feet, it will exclusively be operated

5 by that person, not autonomously during that 18-month

6 window?

7 MR. PAUCHNIK: That's correct, and I believe -­

8 well, I don't know that it says that in the legislation,

9 but yes, it pretty much would be.

10 DEMOCRATIC CHAIRMAN CARROLL: Yes. Okay. All

11 right. Thanks.

12 MAJORITY CHAIRMAN HENNESSEY: Thank you, Chairman

13 Carroll.

14 One thing I wanted to point out, the 550-pound

15 weight of, you know, at least around there of Roxy -­

16 MR. PAUCHNIK: Roxo.

17 MAJORITY CHAIRMAN HENNESSEY: — Roxo, that's

18 spread out over four or six or eight tires, so we're

19 talking pounds per square inch. A concrete sidewalk is

20 probably more than capable of doing that pretty much, you

21 know, because that 550 pounds would be spread over six or

22 eight different contact points, you know, on the ground.

23 MR. PAUCHNIK: That's correct, yes. Roxo has six

24 wheels.

25 MAJORITY CHAIRMAN HENNESSEY: One thing that 87

1 occurs to me is that one thing that may be hard to plan for

2 would be like inclement weather. For the most part, I

3 would think the operators would say -- or the owners of the

4 robots would say keep them in, keep them off the streets.

5 But if, for example, you've contracted out to, say, a

6 pharmacy and I call up and say I need that medicine and I

7 need it now, I don't care whether it's six inches of snow

8 or not, and the pharmacy management sends the robot out

9 figuring he doesn't own it, right, what happens when like a

10 snowplow comes along and sends that whole discharge of snow

11 off of the snowplow and hits the thing? Can it clear the

12 windshield and make sure that the lasers for the detectors,

13 sensors can actually see things or, you know, pretty much

14 like the rest of us do when we're driving behind a bus or a

15 tractor-trailer, you almost drive blind for 5 or 10 seconds

16 until you can get past the stuff is being thrown off the

17 wheels, you know?

18 MR. PAUCHNIK: Sure.

19 MAJORITY CHAIRMAN HENNESSEY: How does a robot

20 correct that situation and, you know, manage to keep itself

21 safe?

22 MR. PAUCHNIK: Yes, so it goes back to Chairman

23 Carroll's question about, you know, how does this thing

24 operate, and what are you testing for now? And that's one

25 of them. I should have mentioned that. I apologize. But 88

1 it’s heated lenses. It could be, you know, windshield

2 wipers, everything that we can to make sure that it can

3 operate in those conditions, that that’s a lot of the

4 evolution of the bot is happening right now. That’s kind

5 of where we are making changes constantly.

6 MAJORITY CHAIRMAN HENNESSEY: I ’m thinking, you

7 know, lightheartedly, it took Mercedes-Benz probably 50 or

8 60 years to invent the windshield wipers that actually

9 clean the headlights in snowstorms.

10 Thank you very much. I appreciate your

11 testimony. It’s, I think, probably an exciting time, and

12 w e ’ve got to sit here and wrestle with these kind of

13 questions and try to, you know, think out or maybe outthink

14 the people who are actually doing the computer designs and

15 -- I forget what those technicians are called -- the IT

16 technicians trying to figure out what kind of problems we

17 can throw their way and how interestingly they’ll be able

18 to figure it out.

19 MR. PAUCHNIK: Thank you.

20 MAJORITY CHAIRMAN HENNESSEY: So it’s an exciting

21 industry you’re working in, and thank you for your

22 contributions to this legislation.

23 MR. PAUCHNIK: Absolutely. Thank you.

24 MAJORITY CHAIRMAN HENNESSEY: Seeing no other

25 questions, w e ’ll call upon Melissa Morgan, who’s the Policy 89

1 Analyst for the Pennsylvania State Association of Township

2 Supervisors. She's going to join us remotely. So,

3 Melissa, thank you for being there standing by for the

4 other testimony and questions. Just click to unmute and

5 begin your testimony whenever you're ready.

6 MS. MORGAN: Thank you. Chairman Hennessey,

7 Chairman Carroll, and Members of the House Transportation

8 Committee, I thank you for the opportunity to provide

9 comments on behalf of the 1,454 townships in Pennsylvania

10 represented by the Pennsylvania State Association of

11 Township Supervisors.

12 The Association is a non-partisan, non-profit

13 member service organization. Our member townships

14 represent 5.6 million Pennsylvanians, more residents than

15 any other type of Pennsylvania municipal government and

16 cover 95 percent of the Commonwealth's land mass.

17 Over the last few years, e-commerce, as you've

18 heard about today, has exploded, which has increased the

19 demand on delivery services. And the current pandemic has

20 accelerated this already-growing trend. We understand the

21 need for improved efficiencies and new technology to allow

22 delivery companies to meet this growing demand and

23 understand that a number of companies have developed

24 autonomous devices, essentially delivery robots, to help

25 fulfill this need. These are new devices, and there will 90

1 be areas where it may not be safe to operate them due to

2 sight distances and traffic issues.

3 We appreciate that changes were made in the

4 Senate to an earlier version of Senate Bill 1199 to

5 recognize the importance of local control in evaluating

6 safety issues and, in those specific locations where the

7 operation of these devices would constitute a hazard in

8 pedestrian areas, on the local road, or both, to allow the

9 prohibition of their operation.

10 We believe it is critical, as w e ’ve heard

11 throughout the conversation today, that municipal officials

12 be empowered to exercise local control for public safety

13 purposes. We also like to echo some of the comments heard

14 today that municipal officials must be able to provide for

15 temporary restrictions or prohibitions during a snow or

16 other emergency.

17 As the technology for automated vehicles and

18 delivery devices is developed and is deployed, we also

19 believe that there is a need for more local official

20 representation on the State’s Highly Automated Vehicle

21 Advisory Committee. Current law provides for only one

22 municipal representative, but we believe it is important to

23 have the perspective of different types of communities as

24 the challenges posed in urban, suburban, and rural

25 communities will be different. 91

1 As such, we request that townships have a seat at

2 the table, particularly as we have come to understand that

3 improvements may be needed to local roads to facilitate

4 automated devices such as those that w e ’re talking about

5 today.

6 Under this bill, a device would be regulated as a

7 pedestrian and not as a motor vehicle. We question whether

8 this is appropriate, as "pedestrian" is defined in Title 75

9 as "a natural person afoot." We understand due to the

10 limitation of these devices and their operation in

11 pedestrian areas that they should probably not be regulated

12 as a motor vehicle. However, would it be more appropriate

13 to, let’s say, have a separate category for these PDDs?

14 Finally, while these devices would need to have

15 clearly identifiable markers with the name, contact

16 information, and unique identification of the owner of the

17 personal delivery device, we question whether these markers

18 should also have a unique identifier for the particular

19 device itself. As these devices are implemented to help

20 promote commerce, we appreciate the critical inclusion of

21 local control to keep these devices from becoming a hazard

22 in specific identified areas. And we are happy to work

23 with the sponsor and the Members of the Committee on

24 improvements to the legislation.

25 Thank you for the opportunity to participate 92

1 today. I'm also happy to take any questions that you have.

2 MAJORITY CHAIRMAN HENNESSEY: Thank you, Melissa,

3 for your comments. You had just mentioned something that I

4 was thinking of, and that's a unique identifier for the

5 particular device. You're not talking about serial

6 numbers; you're talking about something that's a visual

7 marker on the robot that people can see. If I'm an

8 oncoming driver, I see and know that this is a robot.

9 MS. MORGAN: Correct, some sort of unique

10 identifier -­

11 MAJORITY CHAIRMAN HENNESSEY: And do you have -­

12 MS. MORGAN: -- maybe similar to a license plate.

13 MAJORITY CHAIRMAN HENNESSEY: Can you give us any

14 suggestions in terms of what that might be, what it might

15 look like?

16 MS. MORGAN: Potentially in terms of like a

17 license plate or you could identify, you know, by letter

18 and number on it potentially, so if you saw something doing

19 something, you can also report that as well and know which

20 one you were talking about.

21 MAJORITY CHAIRMAN HENNESSEY: I thought you were

22 going down the line of some sort of a colored flashing

23 marker like maybe a green flashing light like we have on

24 emergency vehicles, red flashing lights, blue lights.

25 MS. MORGAN: In Senate Bill 1199 there is some 93

1 white light and red light regulation, but we are more

2 looking for like a unique number that a citizen could

3 identify.

4 MAJORITY CHAIRMAN HENNESSEY: Okay. One of the

5 things that strikes me as technology develops is that some

6 of the headlights w e ’re seeing on the newer model cars

7 almost look like blue laser lights or something. I don’t

8 know what the technology is, but they are almost blinding

9 when you’re driving along, especially if it’s the only car

10 coming toward you when you’re driving along at night, your

11 eyes adjust to a certain light level, and then suddenly

12 somebody comes at you with these garish blue lights that

13 almost completely blind you for a couple of seconds. You

14 know, do you have any -- aside from the robot issue, you

15 know, do you guys deal with those kind of issues, PSATS,

16 and any suggestions on how we can control them or limit

17 them or modify some of the new technologies coming down the

18 pike?

19 MS. MORGAN: I mean, not directly in terms of

20 that technology.

21 MAJORITY CHAIRMAN HENNESSEY: Okay.

22 MS. MORGAN: We would be welcome to discuss that

23 with PennDOT or yourself.

24 MAJORITY CHAIRMAN HENNESSEY: Okay. Mike, do you

25 have any questions? 94

1 DEMOCRATIC CHAIRMAN CARROLL: I assume you heard

2 the conversation I had with FedEx a moment ago and my

3 desire to see if there’s a way to reconcile the need for

4 local governments to have buy-in here. Without being able

5 to cite it off the top of my head, it’s probably page 5

6 somewhere, the inability for local governments to have any

7 regulatory ability under 25 miles an hour, is that your

8 understanding of the bill as it’s currently written?

9 MS. MORGAN: In terms of our -- my understanding

10 is that they are able to prohibit it if it would constitute

11 a hazard under 25 miles an hour either in the roadway on

12 the sidewalk.

13 DEMOCRATIC CHAIRMAN CARROLL: Yes, I remember the

14 phrase "as appropriate” somewhere here, and I ’m not sure

15 exactly what "as appropriate" means. Line 23 I guess on

16 page 5. It’s more than once. It’s on 17 and -- so I guess

17 what I ’m after is, as currently written, is this a bill

18 that PSATS could support?

19 MS. MORGAN: Yes. As currently written, we can

20 be okay with it. We definitely would be welcome to

21 clearing up some of the local control wording in there, and

22 if there are those that think it needs to be tightened a

23 little bit, w e ’d be happy to be a part of that

24 conversation.

25 DEMOCRATIC CHAIRMAN CARROLL: Okay. Because I 95

1 guess I was a little bit more concerned in that answer with

2 respect to the willingness of local governments to buy into

3 the language as currently written. So I guess what I ’ll

4 say is that w e ’ll keep the conversation going for the

5 moment.

6 MAJORITY CHAIRMAN HENNESSEY: Okay.

7 DEMOCRATIC CHAIRMAN CARROLL: Thanks.

8 MS. MORGAN: Thank you.

9 MAJORITY CHAIRMAN HENNESSEY: Thank you. Anyone

10 else have any questions here?

11 Okay. One of the benefits of being the last

12 testifier is you don’t have that many questions. A lot of

13 the questions have already been asked of other witnesses.

14 So I don’t think there’s anyone who’s called in and asked

15 to be -- or emailed in and asked to be recognized, so thank

16 you very much, Melissa, for your testimony. Thanks to all

17 our testifiers. And we will adjourn. Thank you.

18

19 (The hearing concluded at 3:04 p.m.) 96

1 I hereby certify that the foregoing proceedings

2 are a true and accurate transcription produced from audio

3 on the said proceedings and that this is a correct

4 transcript of the same.

5

6

7 Christy Snyder

8 Transcriptionist

9 Diaz Transcription Services