89R13725 JRR-D

By: Canales H.B. No. 3837

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of autonomous vehicles; creating a criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 502, Transportation Code, is amended by adding Section 502.0433 to read as follows:

Sec. 502.0433. ADDITIONAL REQUIREMENTS RELATING TO AUTONOMOUS VEHICLE. (a) In this section, "autonomous vehicle" has the meaning assigned by Section 545.451.

(b) When a person registers or renews the registration of a motor vehicle under this chapter, the department shall require the person to:

(1) indicate whether the vehicle is an autonomous vehicle; and

(2) if the person indicates that the vehicle is an autonomous vehicle, include the permit number for any permit issued to the person under Subchapter J, Chapter 545.

(c) Notwithstanding any other provision of this chapter, the department may not register or renew the registration of a motor vehicle that a person indicates is an autonomous vehicle if the person does not hold, or the department is unable to verify that the person holds, a permit issued under Subchapter J, Chapter 545. This subsection does not apply to an autonomous vehicle that is exempted from the permit requirements of Subchapter J, Chapter 545, under a rule adopted under Section 545.457.

SECTION 2. Subchapter J, Chapter 545, Transportation Code, is amended to read as follows:

SUBCHAPTER J. OPERATION OF AUTONOMOUS [AUTOMATED MOTOR] VEHICLES

Sec. 545.451. DEFINITIONS. In this subchapter:

(1) "Automated driving system" means hardware and software that, when installed on a motor vehicle and engaged, are collectively capable of performing, without any intervention or supervision by a human operator:

(A) all aspects of the entire dynamic driving task for the vehicle on a sustained basis; and

(B) any fallback maneuvers necessary to respond to a failure of the system.

(2) "Autonomous [Automated motor] vehicle" means a motor vehicle on which an automated driving system is installed that is capable of being operated with Level 4 automation or Level 5 automation.

(3) "Commission" means the Autonomous Vehicle Commission.

(4) "Entire dynamic driving task" means the operational and tactical aspects of operating a vehicle. The term:

(A) includes:

(i) operational aspects, including steering, braking, accelerating, and monitoring the vehicle and the roadway; and

(ii) tactical aspects, including responding to events, determining when to change lanes, turning, using signals, and other related actions; and

(B) does not include strategic aspects, including determining destinations or waypoints.

(5) [(4)] "Human operator" means a natural person in an autonomous [automated motor] vehicle who controls the entire dynamic driving task.

(6) "Level 4 automation" means a standard of automation meeting the criteria for Level 4 specified in the Society of Automotive Engineers International Standard J3016 (April 2021).

(7) "Level 5 automation" means a standard of automation meeting the criteria for Level 5 specified in the Society of Automotive Engineers International Standard J3016 (April 2021).

(8) [(5)] "Owner" has the meaning assigned by Section 502.001.

(9) "Transportation network company" has the meaning assigned by Section 2402.001, Occupations Code.

Sec. 545.452. EXCLUSIVE REGULATION OF [THE] OPERATION OF AUTONOMOUS [AUTOMATED MOTOR] VEHICLES AND AUTOMATED DRIVING SYSTEMS. (a) Unless otherwise provided by this subchapter, the operation of autonomous [automated motor] vehicles, including any commercial use, and automated driving systems is [are] governed exclusively by:

(1) this subchapter; [and]

(2) Section 547.618; and

(3) Chapter 2402, Occupations Code, if the autonomous vehicle is owned by a transportation network company or transportation network company driver.

(b) A political subdivision of this state or a state agency may not impose a franchise or other regulation related to the operation of an autonomous [automated motor] vehicle or automated driving system.

Sec. 545.453. OPERATOR OF AUTONOMOUS [AUTOMATED MOTOR] VEHICLE. (a) When an automated driving system installed on an autonomous [a motor] vehicle is engaged:

(1) the owner of the autonomous vehicle [automated driving system] is considered the operator of the autonomous [automated motor] vehicle solely for the purpose of assessing compliance with applicable traffic or motor vehicle laws, regardless of whether the person is physically present in the vehicle while the vehicle is operating; and

(2) the automated driving system is considered to be licensed to operate the vehicle.

(b) Notwithstanding any other law, a licensed human operator is not required to operate a motor vehicle if an automated driving system installed on the vehicle is engaged.

Sec. 545.454. AUTONOMOUS [AUTOMATED MOTOR] VEHICLE OPERATION; OFFENSE. (a) Subject to Subsection (b), an autonomous [An automated motor] vehicle may operate in this state [with the automated driving system engaged], regardless of whether a human operator is physically present in the vehicle.

(b) An autonomous [automated motor] vehicle may not operate on a highway in this state [with the automated driving system engaged] unless:

(1) the owner of the vehicle:

(A) holds a permit issued under this subchapter; and

(B) has submitted to the department, in the form and manner prescribed by rule of the Public Safety Commission, a plan specifying how a person who provides firefighting, law enforcement, ambulance, medical, or other emergency services should interact with the autonomous vehicle during the provision of those services; and

(2) the vehicle is:

(A) registered with the commission as provided by Section 545.456;

(B) [(1)] capable of operating in compliance with applicable traffic and motor vehicle laws of this state, subject to this subchapter;

(C) [(2)] equipped with a recording device, as defined by Section 547.615(a), installed by the manufacturer of the autonomous [automated motor] vehicle or automated driving system;

(D) [(3)] equipped with an automated driving system in compliance with applicable federal law and federal motor vehicle safety standards;

(E) [(4)] registered and titled in accordance with the laws of this state; and

(F) either:

(i) [(5)] covered by motor vehicle liability coverage or self-insurance in an amount prescribed by commission rule; or

(ii) if the autonomous vehicle is owned by a transportation network company or transportation network company driver, covered by primary automobile insurance in accordance with Chapter 1954, Insurance Code [equal to the amount of coverage that is required under the laws of this state].

(c) A person who is the owner of an autonomous vehicle commits an offense if the autonomous vehicle is operated on a public highway in violation of Subsection (b). An offense under this subsection is a Class A misdemeanor.

Sec. 545.455. AUTONOMOUS VEHICLE PERMIT. (a) An applicant for a permit under this subchapter shall apply to the commission in the form and manner prescribed by commission rule.

(b) The commission shall issue a permit to each applicant that:

(1) meets the eligibility criteria for the permit as prescribed by commission rule; and

(2) pays a fee in an amount determined by commission rule to cover the cost of administering this subchapter.

(c) Commission rules prescribing the eligibility criteria described by Subsection (b)(1) must require an applicant for a permit under this subchapter to include in the application:

(1) whether the applicant holds, or intends to apply for, a permit issued under Chapter 2402, Occupations Code; and

(2) if the applicant holds a permit issued under Chapter 2402, Occupations Code, the permit number for that permit.

(d) To maintain a permit under this subchapter, the holder of the permit shall annually pay the fee described by Subsection (b)(2) to the commission.

Sec. 545.456. REGISTRATION OF AUTONOMOUS VEHICLE WITH COMMISSION. A holder of a permit under this subchapter shall register with the commission, in the form and manner prescribed by commission rule, each autonomous vehicle authorized to operate under the permit.

Sec. 545.457. EXEMPTION FROM PERMIT REQUIREMENTS. (a) Notwithstanding any other provision of this subchapter, the commission by rule may exempt the permit requirements under this subchapter from applying to an autonomous vehicle that is operated solely for personal use if rules are adopted authorizing the sale of autonomous vehicles in this state to the public by a dealer, as defined by Section 2301.002, Occupations Code.

(b) A person operating an autonomous vehicle in accordance with a rule adopted under this section is considered to satisfy the requirements of Sections 545.454(b)(1) and (2)(A) with respect to that vehicle.

Sec. 545.458 [545.455]. DUTIES FOLLOWING COLLISION INVOLVING AUTONOMOUS [AUTOMATED MOTOR] VEHICLE; REPORTING OF COLLISION DATA. (a) In the event of a collision involving an autonomous [automated motor] vehicle:

(1) the holder of the permit under which the autonomous vehicle is operating[, the automated motor vehicle] or any human operator of the autonomous [automated motor] vehicle shall comply with Chapter 550; and

(2) the permit holder described by Subdivision (1) shall notify the commission of the collision, in the form and manner prescribed by commission rule, not later than 48 hours after the collision.

(b) A holder of a permit under this subchapter shall submit to the commission, in the form and manner prescribed by commission rule, any collision data that the permit holder is required to submit to the National Highway Traffic Safety Administration or another federal agency.

Sec. 545.459. ONLINE PORTAL. The commission shall establish and maintain an online portal on the Texas Department of Motor Vehicles' Internet website that, at a minimum, allows a person to:

(1) apply for a permit under this subchapter;

(2) pay the annual fee to maintain the permit;

(3) register with the commission an autonomous vehicle authorized to operate under the permit; and

(4) notify the commission of a collision involving an autonomous vehicle or report collision data required under this subchapter.

Sec. 545.460. ADDITIONAL PROCEDURES; RULES. (a) The commission by rule shall adopt procedures for the revocation or suspension of a permit issued under this subchapter.

(b) The commission shall hold a public hearing if an autonomous vehicle operating under a permit issued under this subchapter is involved in a collision that results in a fatality.

(c) The commission may adopt any other rules or procedures necessary to administer this subchapter.

Sec. 545.461 [545.456]. VEHICLE CLASSIFICATION. An owner [as defined by Section 502.001(31)] may identify the vehicle to the department as an autonomous [automated motor] vehicle or an automated driving system.

SECTION 3. The heading to Section 547.618, Transportation Code, is amended to read as follows:

Sec. 547.618. EQUIPMENT REQUIRED FOR CERTAIN AUTONOMOUS [AUTOMATED MOTOR] VEHICLES.

SECTION 4. Sections 547.618(a) and (b), Transportation Code, are amended to read as follows:

(a) In this section, "autonomous [automated motor] vehicle" and "automated driving system" have the meanings assigned by Section 545.451.

(b) An autonomous [automated motor] vehicle that is designed to be operated exclusively by the automated driving system for all trips is not subject to motor vehicle equipment laws or regulations of this state that:

(1) relate to or support motor vehicle operation by a human driver; and

(2) are not relevant for an automated driving system.

SECTION 5. Subtitle M, Title 7, Transportation Code, is amended by adding Chapter 1007 to read as follows:

CHAPTER 1007. AUTONOMOUS VEHICLE COMMISSION

Sec. 1007.001. DEFINITION. In this chapter, "commission" means the Autonomous Vehicle Commission established under this chapter.

Sec. 1007.002. ESTABLISHMENT; MEMBERSHIP. (a) The Autonomous Vehicle Commission is established.

(b) The commission is composed of 11 voting members and 2 nonvoting members as follows:

(1) the presiding officer of the Connected and Autonomous Vehicle Task Force of the Texas Department of Transportation or a successor task force;

(2) the public safety director of the Department of Public Safety or the director's designee;

(3) the following members appointed by the governor:

(A) two members who represent an entity that manufactures or operates autonomous vehicles with a gross weight rating of less than 10,000 pounds;

(B) two members who represent an entity that manufactures or operates autonomous vehicles with a gross weight rating of 10,000 pounds or more;

(C) one representative of the Texas A&M Transportation Institute;

(D) one representative of the Center for Transportation Research at The University of Texas at Austin; and

(E) one member of the public;

(4) one member of the public appointed by governor from a list submitted by the lieutenant governor;

(5) one member of the public appointed by the governor from a list submitted by the speaker of the house of representatives;

(6) the presiding officer of the standing committee of the senate with primary jurisdiction over business and commerce matters, to serve ex officio as a nonvoting member; and

(7) the presiding officer of the standing committee of the house of representatives with primary jurisdiction over transportation matters, to serve ex officio as a nonvoting member.

(c) Appointed commission members serve for two-year terms.

(d) A vacancy on the commission shall be filled in the same manner as the original appointment.

(e) The commission member described by Subsection (b)(2) shall serve as the presiding officer.

Sec. 1007.003. ADMINISTRATIVE ATTACHMENT; FUNDING. (a) The commission is administratively attached to the department.

(b) The commission shall be funded using existing funds of the department.

(c) Employees of the department shall serve as the staff for the commission, including by administering and enforcing the provisions of Subchapter J, Chapter 545, relating to the commission's duties under that subchapter.

(d) The department shall provide the facilities necessary to assist the commission in carrying out the commission's duties.

Sec. 1007.004. DUTIES. The commission shall oversee the administration and enforcement of the provisions of Subchapter J, Chapter 545, relating to commission duties under that subchapter and is responsible for the adoption of rules relating to those provisions as provided by that subchapter.

Sec. 1007.005. APPLICATION OF SUNSET ACT. The commission is subject to Chapter 325, Government Code (Texas Sunset Act). The commission shall be reviewed during the period in which the department is reviewed under Section 1001.005. Unless continued in existence as provided by Chapter 325, Government Code, the commission is abolished and this subchapter expires on the date on which the department is subject to abolishment under that section.

SECTION 6. Section 17.45, Business & Commerce Code, is amended by adding Subdivision (18) to read as follows:

(18) "Level 4 automation" and "Level 5 automation" have the meanings assigned by Section 545.451, Transportation Code.

SECTION 7. Section 17.46(b), Business & Commerce Code, is amended to read as follows:

(b) Except as provided in Subsection (d) of this section, the term "false, misleading, or deceptive acts or practices" includes, but is not limited to, the following acts:

(1) passing off goods or services as those of another;

(2) causing confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

(3) causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another;

(4) using deceptive representations or designations of geographic origin in connection with goods or services;

(5) representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which the person does not;

(6) representing that goods are original or new if they are deteriorated, reconditioned, reclaimed, used, or secondhand;

(7) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

(8) disparaging the goods, services, or business of another by false or misleading representation of facts;

(9) advertising goods or services with intent not to sell them as advertised;

(10) advertising goods or services with intent not to supply a reasonable expectable public demand, unless the advertisements disclosed a limitation of quantity;

(11) making false or misleading statements of fact concerning the reasons for, existence of, or amount of price reductions;

(12) representing that an agreement confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law;

(13) knowingly making false or misleading statements of fact concerning the need for parts, replacement, or repair service;

(14) misrepresenting the authority of a salesman, representative or agent to negotiate the final terms of a consumer transaction;

(15) basing a charge for the repair of any item in whole or in part on a guaranty or warranty instead of on the value of the actual repairs made or work to be performed on the item without stating separately the charges for the work and the charge for the warranty or guaranty, if any;

(16) disconnecting, turning back, or resetting the odometer of any motor vehicle so as to reduce the number of miles indicated on the odometer gauge;

(17) advertising of any sale by fraudulently representing that a person is going out of business;

(18) advertising, selling, or distributing a card which purports to be a prescription drug identification card issued under Section 4151.152, Insurance Code, in accordance with rules adopted by the commissioner of insurance, which offers a discount on the purchase of health care goods or services from a third party provider, and which is not evidence of insurance coverage, unless:

(A) the discount is authorized under an agreement between the seller of the card and the provider of those goods and services or the discount or card is offered to members of the seller;

(B) the seller does not represent that the card provides insurance coverage of any kind; and

(C) the discount is not false, misleading, or deceptive;

(19) using or employing a chain referral sales plan in connection with the sale or offer to sell of goods, merchandise, or anything of value, which uses the sales technique, plan, arrangement, or agreement in which the buyer or prospective buyer is offered the opportunity to purchase merchandise or goods and in connection with the purchase receives the seller's promise or representation that the buyer shall have the right to receive compensation or consideration in any form for furnishing to the seller the names of other prospective buyers if receipt of the compensation or consideration is contingent upon the occurrence of an event subsequent to the time the buyer purchases the merchandise or goods;

(20) representing that a guaranty or warranty confers or involves rights or remedies which it does not have or involve, provided, however, that nothing in this subchapter shall be construed to expand the implied warranty of merchantability as defined in Sections 2.314 through 2.318 and Sections 2A.212 through 2A.216 to involve obligations in excess of those which are appropriate to the goods;

(21) promoting a pyramid promotional scheme, as defined by Section 17.461;

(22) representing that work or services have been performed on, or parts replaced in, goods when the work or services were not performed or the parts replaced;

(23) filing suit founded upon a written contractual obligation of and signed by the defendant to pay money arising out of or based on a consumer transaction for goods, services, loans, or extensions of credit intended primarily for personal, family, household, or agricultural use in any county other than in the county in which the defendant resides at the time of the commencement of the action or in the county in which the defendant in fact signed the contract; provided, however, that a violation of this subsection shall not occur where it is shown by the person filing such suit that the person neither knew or had reason to know that the county in which such suit was filed was neither the county in which the defendant resides at the commencement of the suit nor the county in which the defendant in fact signed the contract;

(24) failing to disclose information concerning goods or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered had the information been disclosed;

(25) using the term "corporation," "incorporated," or an abbreviation of either of those terms in the name of a business entity that is not incorporated under the laws of this state or another jurisdiction;

(26) selling, offering to sell, or illegally promoting an annuity contract under Chapter 22, Acts of the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil Statutes), with the intent that the annuity contract will be the subject of a salary reduction agreement, as defined by that Act, if the annuity contract is not an eligible qualified investment under that Act;

(27) subject to Section 17.4625, taking advantage of a disaster declared by the governor under Chapter 418, Government Code, or by the president of the United States by:

(A) selling or leasing fuel, food, medicine, lodging, building materials, construction tools, or another necessity at an exorbitant or excessive price; or

(B) demanding an exorbitant or excessive price in connection with the sale or lease of fuel, food, medicine, lodging, building materials, construction tools, or another necessity;

(28) using the translation into a foreign language of a title or other word, including "attorney," "immigration consultant," "immigration expert," "lawyer," "licensed," "notary," and "notary public," in any written or electronic material, including an advertisement, a business card, a letterhead, stationery, a website, or an online video, in reference to a person who is not an attorney in order to imply that the person is authorized to practice law in the United States;

(29) delivering or distributing a solicitation in connection with a good or service that:

(A) represents that the solicitation is sent on behalf of a governmental entity when it is not; or

(B) resembles a governmental notice or form that represents or implies that a criminal penalty may be imposed if the recipient does not remit payment for the good or service;

(30) delivering or distributing a solicitation in connection with a good or service that resembles a check or other negotiable instrument or invoice, unless the portion of the solicitation that resembles a check or other negotiable instrument or invoice includes the following notice, clearly and conspicuously printed in at least 18-point type:

"SPECIMEN-NON-NEGOTIABLE";

(31) in the production, sale, distribution, or promotion of a synthetic substance that produces and is intended to produce an effect when consumed or ingested similar to, or in excess of, the effect of a controlled substance or controlled substance analogue, as those terms are defined by Section 481.002, Health and Safety Code:

(A) making a deceptive representation or designation about the synthetic substance; or

(B) causing confusion or misunderstanding as to the effects the synthetic substance causes when consumed or ingested;

(32) a licensed public insurance adjuster directly or indirectly soliciting employment, as defined by Section 38.01, Penal Code, for an attorney, or a licensed public insurance adjuster entering into a contract with an insured for the primary purpose of referring the insured to an attorney without the intent to actually perform the services customarily provided by a licensed public insurance adjuster, provided that this subdivision may not be construed to prohibit a licensed public insurance adjuster from recommending a particular attorney to an insured;

(33) owning, operating, maintaining, or advertising a massage establishment, as defined by Section 455.001, Occupations Code, that:

(A) is not appropriately licensed under Chapter 455, Occupations Code, or is not in compliance with the applicable licensing and other requirements of that chapter; or

(B) is not in compliance with an applicable local ordinance relating to the licensing or regulation of massage establishments; [or]

(34) a warrantor of a vehicle protection product warranty using, in connection with the product, a name that includes "casualty," "surety," "insurance," "mutual," or any other word descriptive of an insurance business, including property or casualty insurance, or a surety business;

(35) advertising or otherwise representing a technology or other product as capable of converting a motor vehicle to an autonomous vehicle unless the motor vehicle when equipped with the technology or other product is able to be operated with Level 4 automation or Level 5 automation; or

(36) advertising or otherwise representing a motor vehicle as an autonomous vehicle or as self-driving unless the vehicle is able to be operated with Level 4 automation or Level 5 automation.

SECTION 8. Section 17.46, Business & Commerce Code, as amended by this Act, applies only to an act or practice that occurs on or after September 1, 2025. An act or practice that occurs before September 1, 2025, is governed by the law in effect on the date the act or practice occurred, and the former law is continued in effect for that purpose.

SECTION 9. (a) Not later than October 1, 2025, the appropriate appointing authorities shall appoint the members of the Autonomous Vehicle Commission as required by Section 1007.002, Transportation Code, as added by this Act.

(b) Not later than December 1, 2025:

(1) the Autonomous Vehicle Commission shall adopt the rules required by Subchapter J, Chapter 545, Transportation Code, as amended by this Act, and any other rules necessary to administer that subchapter; and

(2) the Public Safety Commission shall adopt the rule required by Section 545.454(b)(1), Transportation Code, as added by this Act.

(c) The Texas Department of Motor Vehicles is not required to comply with Section 502.0433, Transportation Code, as added by this Act, until January 1, 2026.

(d) A person is not required to comply with Subchapter J, Chapter 545, Transportation Code, as amended by this Act, until January 1, 2026.

SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.