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

89(R) HB 3837 - Introduced version - Bill Text

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.