Establishes fully autonomous vehicle pilot program.*

S1677 SCS FISCAL ESTIMATE

LEGISLATIVE FISCAL ESTIMATE

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 1677

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JUNE 25, 2026

SUMMARY

Synopsis:

Establishes fully autonomous vehicle pilot program.

Type of Impact:

Three-year increase in annual State expenditures;
potential three-year increase in annual State revenues; potential three-year
increase in annual local expenditures.�

Agencies Affected:

Department of Transportation; New Jersey Motor Vehicle
Commission; Division of State Police; Office of the Attorney General; Office
of Administrative Law; counties and municipalities.�

Office of
Legislative Services Estimate

Fiscal Impact

Year 1 through Year 3

State Expenditure Increase

Indeterminate

Potential State Revenue Increase

Indeterminate

Potential Local Expenditure Increase

Indeterminate

�

The Office of Legislative Services (OLS) estimates that this bill
may result in an indeterminate increase in State expenditures to the Department
of Transportation and the Motor Vehicle Commission to establish, administer,
and enforce a three-year fully autonomous vehicle pilot program.�

�

Additionally, the OLS estimates that this bill may result in
increased annual State revenues from application fees paid by autonomous
vehicle testers and civil penalties imposed for failure to report certain
cases.� The magnitude of the revenue increases is indeterminate because the
bill leaves the application fee and civil penalty amounts to be determined by
the department and does not specify the number of testers of vehicles that will
take part in the pilot program.�

�

Lastly, the OLS estimates that the bill may result in additional
State and local costs associated with the deployment of smart infrastructure,
including sensor-equipped roads, communication systems, and real-time traffic
management technology.� The magnitude of this impact is indeterminate because
the bill directs the department to identify funding sources and coordinate with
counties and municipalities, but does not require a specific level of
investment.

BILL DESCRIPTION

����� The bill establishes a three-year pilot program to
permit the operation of fully autonomous vehicles in the State under the
supervision of the department, in consultation with the commission.� The bill
requires the department to develop and administer an application and
authorization process for autonomous vehicle testers, including review of
safety certifications, law enforcement interaction plans, first responder
interaction plans, proof of insurance or self-insurance, and payment of an
application fee established by the department. �Application fees are to be used
for operational expenses, maintenance, and implementation of the pilot program.

����� The bill establishes a nine-member task force within
the department to oversee the pilot program. �The task force is required to
meet regularly, issue quarterly reports on program progress, solicit public
feedback, make recommendations concerning State laws and regulations, and
coordinate with the Division of State Police and the Office of the Attorney
General in the Department of Law and Public Safety on safety-related matters.�

����� The bill requires the Department of Transportation to
collect crash and disengagement data from autonomous vehicle testers, publish
crash information on the department�s website every other month, and transmit
certain information to appropriate federal agencies. �The bill authorizes the
department to impose civil penalties on testers that fail to comply with
reporting requirements.�

����� The bill also authorizes the department to suspend,
revoke, or restrict a tester�s authorization when a fully autonomous vehicle is
determined to pose a public safety risk and provides for administrative
hearings regarding those actions.� The bill also requires the department to
establish fully autonomous vehicle testing environments and coordinate with
counties and municipalities to deploy smart infrastructure, including
sensor-equipped roads, communication systems, and real-time traffic management
technology. �The department is required to identify funding sources to support
these activities.� Additionally, the bill establishes consumer disclosure
requirements concerning partially automated driving systems and provides that
violations of certain provisions of the bill constitute violations of the
Consumer Fraud Act, enforceable by the Office of the Attorney General.

����� Finally, the bill requires the department to submit a
final report to the Governor and the Legislature within six months following
completion of the pilot program evaluating the program�s effectiveness, safety
outcomes, and recommendations for future legislation.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� None received.�

OFFICE OF LEGISLATIVE SERVICES

����� The OLS estimates that this bill may result in an
indeterminate increase in State expenditures to the department and the
commission to establish, administer, and enforce a three-year fully autonomous
vehicle pilot program.� Some of the costs may include application review,
authorization of testers, rulemaking, task force support, and preparation of
the final report.� Notably, California�s FY 2013-2014 budget included an
appropriation of $980,000 and two positions for start-up costs related to the
implementation of their autonomous vehicle on public roads program.�

����� Additionally, the OLS estimates that this bill may
result in increased annual State revenues from application fees paid by
autonomous vehicle testers and civil penalties imposed for failure to report
certain cases.� The magnitude of the revenue increases is indeterminate because
the bill leaves the application fee and civil penalty amounts to be determined
by the department and does not specify the number of testers of vehicles that
will take part in the pilot program.�

����� Lastly, the OLS estimates that the bill may result in
additional State and local costs associated with the deployment of smart
infrastructure, including sensor-equipped roads, communication systems, and
real-time traffic management technology.� The magnitude of this impact is
indeterminate because the bill directs the department to identify funding
sources and coordinate with counties and municipalities, but does not require a
specific level of investment.�

Section:

Authorities, Utilities, Transportation and
Communications

Analyst:

Michael D. Walker Jr.

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).