89R16277 JRR-F

By: Nichols S.B. No. 2425

A BILL TO BE ENTITLED

AN ACT

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

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

SECTION 1. Subchapter J, Chapter 545, Transportation Code, is amended to read as follows:

SUBCHAPTER J. OPERATION OF 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) "Automated motor vehicle" means a motor vehicle on which an automated driving system is installed that is:

(A) designed to enable either driverless operation under routine or normal operating conditions within the system's operational design domain or operation by a human driver; and

(B) capable of being operated with Level 4 automation or Level 5 automation.

(3) "Authorization holder" means a person granted authorization by the department under Section 545.456 to operate one or more automated motor vehicles.

(4) "Board" means the board of the Texas Department of Motor Vehicles.

(5) "Department," notwithstanding Section 541.002, means the Texas Department of Motor Vehicles.

(6) "Dynamic ["Entire dynamic] driving task" means the real-time operational and tactical functions required to operate [aspects of operating] a vehicle. The term:

(A) includes:

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

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

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

(7) [(4)] "Human driver [operator]" means a natural person in an automated motor vehicle who controls all or part of the [entire] dynamic driving task.

(8) "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).

(9) "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).

(10) "Minimal risk condition" means a stable and stopped condition of an automated motor vehicle at a position with an acceptable risk given the situation when the decision is taken to enter the condition or, if an acceptable risk is not attainable, the position with the lowest risk.

(11) "Operational design domain" means operating conditions under which an automated driving system or feature of the system is specifically designed to function, including environmental, geographical, and time-of-day restrictions and the requisite presence or absence of certain traffic or roadway characteristics.

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

Sec. 545.452. PROHIBITIONS ON [EXCLUSIVE] REGULATION OF THE OPERATION OF AUTOMATED MOTOR VEHICLES OR [AND] AUTOMATED DRIVING SYSTEMS BY STATE AGENCY OR POLITICAL SUBDIVISION. (a) A state agency may not impose a regulation that discriminates against [Unless otherwise provided by this subchapter, the operation of automated motor vehicles, including any commercial use, and automated driving systems are governed exclusively by]:

(1) a person operating an automated motor vehicle [this subchapter]; or [and]

(2) an automated motor vehicle relative to other types of motor vehicles or with respect to road usage [Section 547.618].

(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 automated motor vehicle or automated driving system.

Sec. 545.453. RULES. The board may adopt rules necessary to administer this subchapter.

Sec. 545.454. OPERATOR OF AUTOMATED MOTOR VEHICLE. (a) When an automated driving system installed on an automated [a] motor vehicle is engaged, [:

[(1)] the authorization holder for [owner of] the automated motor vehicle:

(1) [driving system] is considered the operator of the [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) shall be issued any citation for a violation of traffic or motor vehicle laws related to [the automated driving system is considered to be licensed to operate] the vehicle.

(b) Notwithstanding any other law, neither a licensed human driver nor a license issued under Chapter 521 or 522 [operator] is [not] required to operate an automated [a] motor vehicle if the [an] automated driving system installed on the vehicle is engaged.

Sec. 545.455 [545.454]. AUTOMATED MOTOR VEHICLE OPERATION; OFFENSE. (a) Any vehicle equipped with an automated driving system may operate in this state, provided that an [An] automated motor vehicle may operate in this state with the automated driving system engaged, regardless of whether a human driver [operator] is physically present in the automated motor vehicle.

(b) A person may not operate an [An] automated motor vehicle [may not operate] on a highway or street in this state without a human driver [with the automated driving system engaged] unless:

(1) the person receives and maintains authorization to operate automated motor vehicles from the department under Section 545.456; and

(2) the Department of Public Safety has been provided, 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 automated motor vehicle during the provision of those services, including:

(A) how to communicate with a fleet support specialist who is available during the period in which the vehicle is in operation;

(B) how to safely remove the vehicle from the roadway and safely tow the vehicle;

(C) how to recognize whether the vehicle is being operated with the automated driving system engaged; and

(D) any additional information the person or the manufacturer of the vehicle or the automated driving system considers necessary regarding hazardous conditions or public safety risks associated with the operation of the vehicle.

(c) A person commits an offense if the person operates an automated motor vehicle in violation of Subsection (b). An offense under this subsection is a Class B misdemeanor. If a corporation, an association, a limited liability company, or another business entity is convicted of an offense under this subsection, the entity shall be punished in accordance with Section 12.51, Penal Code.

(d) For purposes of Subsection (c), each day the person operates an automated motor vehicle in violation of Subsection (b) constitutes a separate offense and each vehicle operated by the person in violation of Subsection (b) constitutes a separate offense.

Sec. 545.456. AUTHORIZATION TO OPERATE AUTOMATED MOTOR VEHICLE. (a) The board by rule shall prescribe the form and manner by which a person may apply to the department for authorization to operate automated motor vehicles on highways and streets in this state without a human driver.

(b) The rules adopted under Subsection (a) must require a person to provide the following to the department:

(1) a written statement by the person that includes:

(A) the person's contact information; and

(B) vehicle descriptive information as prescribed by the department;

(2) a written statement by the person or the manufacturer of the vehicle or the automated driving system acknowledging that each automated motor [the] vehicle is:

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

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

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

(D) capable of achieving a minimal risk condition if a failure of the automated driving system occurs that renders the system unable to perform the dynamic driving task relevant to its intended operational design domain;

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

(F) [(5)] covered by motor vehicle liability coverage or self-insurance in an amount equal to or greater than the amount of coverage that is required under the laws of this state; and

(3) a certification acknowledging that the Department of Public Safety has been provided the plan required by Section 545.455(b)(2).

(c) On receipt of an application under this section and verifying that the application complies with the rules adopted under Subsection (a), including satisfying the requirements described by Subsection (b), the department shall approve the application and issue a unique operating number to the applicant authorizing the operation of automated motor vehicles on highways and streets in this state without a human driver.

(d) An authorization issued by the department under this section does not expire and remains active unless suspended, revoked, or canceled by the department.

(e) The person issued an authorization under this section shall provide to the department in the form and manner prescribed by the department an update to a document described by Subsection (b)(1), (2), or (3) not later than the 30th day after the date information in the document changes.

(f) The department may immediately suspend, revoke, or cancel the authorization issued under this section if the authorization holder fails to comply with:

(1) Subsection (e); or

(2) department requests for an updated or current document described by Subsection (b)(1), (2), or (3).

(g) The department shall promptly rescind a suspension, revocation, or cancellation imposed under Subsection (f) on receiving the updated or current document as requested by the department.

(h) A determination under Subsection (f) is not a contested case under Chapter 2001, Government Code.

Sec. 545.457 [545.455]. DUTIES FOLLOWING COLLISION INVOLVING AUTOMATED MOTOR VEHICLE. In the event of a collision involving an automated motor vehicle, the automated motor vehicle, a person on behalf of the automated motor vehicle, or any human driver [operator] of the automated motor vehicle shall comply with Chapter 550.

Sec. 545.458. APPLICABILITY OF COMMERCIAL MOTOR VEHICLES LAWS TO AUTOMATED MOTOR VEHICLE. (a) In this section, "commercial motor vehicle" has the meaning assigned by Section 644.001.

(b) An automated motor vehicle that is a commercial motor vehicle shall operate in accordance with Subtitle F and any other applicable laws or regulations of this state or a political subdivision of this state governing the operation of a commercial motor vehicle, except that any provision of a commercial motor vehicle law that by its nature reasonably applies only to a human driver does not apply to an automated motor vehicle operating with the automated driving system engaged.

Sec. 545.459. ENFORCEMENT. (a) If the department determines that an automated motor vehicle is not in safe operational condition and the operation of the vehicle on a highway or street in this state endangers the public, the department shall provide to the authorization holder for the vehicle a notice of intent to:

(1) suspend, revoke, or cancel the authorization issued under this subchapter for the vehicle; or

(2) impose restrictions on the operation of the vehicle.

(b) A notice of intent under Subsection (a) must:

(1) include a summary of the department's determination and evidence supporting the determination;

(2) provide the authorization holder with a reasonable period to:

(A) correct the issues identified in the department's determination; and

(B) provide to the department the certification described by Subsection (c)(2); and

(3) specify which enforcement actions described by Subsections (a)(1) and (2) the department will take if the authorization holder fails to complete the actions described by Subdivision (2) within the specified period.

(c) Before the expiration of the period specified in a notice of intent provided under Subsection (a), the authorization holder shall:

(1) ensure the issues identified by the department in the notice are corrected; and

(2) provide to the department, in the form and manner prescribed by the department, a certification acknowledging that the issues identified by the department in the notice have been corrected.

(d) The department may extend the period specified in a notice provided under Subsection (a) on a written request for an extension that the department determines is reasonable.

(e) A certification provided under Subsection (c) must include an explanation of how the issues identified by the department in the notice of intent have been corrected, such as identifying specific adjustments made to the automated driving system or operational measures implemented.

(f) If the authorization holder fails to comply with Subsection (c) or the department determines that the certification provided to the department under that subsection is inaccurate, the department shall:

(1) as specified in the notice of intent:

(A) suspend, revoke, or cancel the authorization issued under this subchapter for the vehicle; or

(B) impose restrictions on the operation of the vehicle; and

(2) notify the authorization holder of the action taken by the department under Subdivision (1).

(g) The department shall promptly rescind a suspension, revocation, or cancellation imposed under Subsection (f) or remove a restriction imposed under that subsection if:

(1) the authorization holder subsequently takes the actions required by Subsections (c)(1) and (2); and

(2) the department does not determine that the certification provided under Subdivision (1) is inaccurate.

(h) An authorization holder aggrieved by an action of the department under Subsection (f) may submit a written request for a hearing not later than the 10th day after the date of the department's action under that subsection. The department shall set a hearing not later than the fifth day after the date an authorization holder requests a hearing under this subsection and provide the authorization holder notice of the hearing and the opportunity to present evidence at the hearing. A hearing under this subsection must be conducted by an administrative law judge of the State Office of Administrative Hearings. Chapter 2001, Government Code, applies to a proceeding under this subsection.

(i) Except as provided by Section 545.456, this section provides the exclusive means by which the department may:

(1) suspend, revoke, or cancel an authorization issued under this subchapter for an automated motor vehicle; or

(2) otherwise restrict the operation of an automated motor vehicle.

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

SECTION 2. Section 2402.001, Occupations Code, is amended by amending Subdivision (1) and adding Subdivision (1-a) to read as follows:

(1) "Automated driving system" and "automated motor vehicle" have the meanings assigned by Section 545.451, Transportation Code.

(1-a) "Department" means the Texas Department of Licensing and Regulation.

SECTION 3. Subchapter A, Chapter 2402, Occupations Code, is amended by adding Section 2402.005 to read as follows:

Sec. 2402.005. APPLICABILITY TO AUTOMATED MOTOR VEHICLES. (a) A transportation network company holding a permit under this chapter may use automated motor vehicles to provide digitally prearranged rides through the company's digital network.

(b) A reference in this chapter or a rule adopted under this chapter to a "driver" includes an automated motor vehicle, except that a provision of this chapter or a rule adopted under this chapter that by its nature reasonably applies only to a human driver does not apply to an automated motor vehicle operating with the automated driving system engaged.

SECTION 4. Section 2402.111, Occupations Code, is amended by adding Subsection (d) to read as follows:

(d) Notwithstanding Subsection (a)(2)(A), an automated motor vehicle that is used to provide digitally prearranged rides is not required to have four doors.

SECTION 5. Section 2402.113, Occupations Code, is amended by adding Subsection (e) to read as follows:

(e) This section does not apply to a transportation network company that uses automated motor vehicles to provide digitally prearranged rides through the company's digital network.

SECTION 6. (a) Not later than December 1, 2025:

(1) the board of the Texas Department of Motor Vehicles shall adopt the rules required by Subchapter J, Chapter 545, Transportation Code, as amended by this Act; and

(2) the Public Safety Commission shall adopt the rule required by Section 545.455(b)(2), Transportation Code, as added by this Act.

(b) A person is not required to comply with Subchapter J, Chapter 545, Transportation Code, as amended by this Act, until the 90th day after the effective date of rules adopted by the Public Safety Commission and the board of the Texas Department of Motor Vehicles under Subsection (a) of this section.

SECTION 7. 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.