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

89(R) SB 2425 - House Committee Report version - Bill Text

By: Nichols, et al.

S.B. No. 2425

(Capriglione)

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
operating the vehicle with Level 3

automation, Level 4 automation, or Level 5 automation by

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
, regardless of whether the

system is limited to a specific operational design domain
[
; 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 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 3 automation" means a standard of

automation meeting the criteria for Level 3 specified in the SAE

International Standard J3016 (April 2021).

(9)

"Level 4 automation" means a standard of

automation meeting the criteria for Level 4 specified in the SAE

International Standard J3016 (April 2021).

(10)

"Level 5 automation" means a standard of

automation meeting the criteria for Level 5 specified in the SAE

International Standard J3016 (April 2021).

(11)

"Minimal risk condition" means a stable and

stopped condition to which a person or an automated driving system

may bring an automated motor vehicle to reduce the risk of a

collision when a given trip cannot or should not be continued.

(12)

"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

[
(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; EXEMPTION FROM

CERTAIN TRAFFIC OR MOTOR VEHICLE LAWS
. (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.

(c)

The Public Safety Commission by rule may exempt from the

application of a specific traffic or motor vehicle law of this state

automated motor vehicles if the commission determines that the

exemption will not cause a risk to public safety.

Sec. 545.453.
RULES. The board may adopt rules necessary to

administer this subchapter.

Sec. 545.454.
[
OPERATOR OF AUTOMATED MOTOR
] VEHICLE

OPERATORS
. (a) When an automated driving system installed on a

motor vehicle is engaged
, the automated driving system is the

operator of the vehicle, including for purposes of assessing

compliance with applicable traffic or motor vehicle laws.

(b)

When an automated driving system installed on an

automated motor vehicle is engaged,
[
:

[
(1)
] the owner of
, or if the vehicle is operating

under an authorization issued by the department under Section

545.456, the authorization holder for,
the automated
motor vehicle

shall be issued any citation for a violation of traffic or motor

vehicle laws related to the vehicle
[
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)

the automated driving system is considered to be

licensed to operate the vehicle
].

(c)
[
(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 motor vehicle equipped with an

automated driving system may operate in this state.
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)
Subject to Subsection (c), an
[
An
] automated motor

vehicle may not operate on a highway
or street
in this state with

the automated driving system engaged unless the vehicle is:

(1) capable of operating in compliance with applicable

traffic and motor vehicle laws of this state, subject to this

subchapter;

(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;

(3) equipped with an automated driving system in

compliance with applicable federal law
, including
[
and
] federal

motor vehicle safety standards;

(4)
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;

(5)
registered and titled in accordance with the laws

of this state; and

(6)
[
(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
or federal

law, as applicable to the type and use of the vehicle
.

(c)

In addition to satisfying the requirements of

Subsection (b), a person may not operate an automated motor vehicle

to transport property or passengers in furtherance of a commercial

enterprise on a highway or street in this state without a human

driver 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.

(d)

A person commits an offense if the person operates an

automated motor vehicle in violation of Subsection (c). 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.

(e)

For purposes of Subsection (d), each day the person

operates an automated motor vehicle in violation of Subsection (c)

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 to transport property or

passengers in furtherance of a commercial enterprise 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 vehicle is:

(A)

capable of operating in compliance with

applicable traffic and motor vehicle laws of this state, subject to

this subchapter;

(B)

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)

equipped with an automated driving system in

compliance with applicable federal law, including 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)

registered and titled in accordance with the

laws of this state; and

(F)

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 or federal

law, as applicable to the type and use of the vehicle; and

(3)

a certification acknowledging that the Department

of Public Safety has been provided the plan required by Section

545.455(c)(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

material 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) upon

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 VEHICLE

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 operating under an

authorization issued by the department under Section 545.456 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)

For purposes of Subsection (a), the operation of an

automated motor vehicle endangers the public when the operation has

resulted in or is likely to result in serious bodily injury as

defined by Section 1.07, Penal Code.

(c) 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 (d)(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.

(d)

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.

(e)

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.

(f)

A certification provided under Subsection (d) 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.

(g)

If the authorization holder fails to comply with

Subsection (d), the department shall:

(1)

issue a decision, as specified in the notice of

intent, that:

(A)

suspends, revokes, or cancels the

authorization issued under this subchapter for the vehicle; or

(B)

imposes restrictions on the operation of the

vehicle; and

(2)

notify the authorization holder of the decision

issued by the department under Subdivision (1).

(h)

An authorization holder notified of a decision issued

under Subsection (g) may submit a written request to the department

for review of the decision not later than the 10th day after the

date the department issued the decision. Not later than the 10th

day after the date the department receives a request under this

subsection, the department shall review the decision and issue a

final determination to the authorization holder either upholding or

rescinding the decision. If the authorization holder does not

submit a request for review of a decision issued under Subsection

(g) during the period provided by this subsection, the decision

becomes a final determination on the 11th day after the date the

department issued the decision.

(i)

A suspension, revocation, cancellation, or restriction

under this section takes effect on the date of the final

determination of the decision under Subsection (h).

(j)

The department shall promptly rescind a suspension,

revocation, or cancellation under this section or remove a

restriction under this section at any time if the authorization

holder subsequently takes the actions required by Subsections

(d)(1) and (2).

(k)

An authorization holder aggrieved by an action of the

department under Subsection (h) may submit a written request for a

hearing not later than the 10th day after the date of the

department's final determination under that subsection. The

department shall file a request with the State Office of

Administrative Hearings for an expedited hearing not later than the

10th day after the date the authorization holder requests the

hearing. The State Office of Administrative Hearings shall hold a

hearing requested under this subsection not later than the 60th day

after the date of the department's final determination under

Subsection (h). If a hearing is not held during the period required

by this subsection, the authorization issued under this subchapter

shall be automatically reinstated or the restriction imposed

automatically removed, as applicable.

(l)

The contested case provisions of Chapter 2001,

Government Code, including the right to judicial review, apply to a

proceeding under Subsection (k).

(m)

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 operating under an authorization issued by the

department under Section 545.456.

[
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. Subchapter A, Chapter 1954, Insurance Code, is

amended by adding Section 1954.003 to read as follows:

Sec.

1954.003.

APPLICABILITY TO AUTOMATED MOTOR VEHICLES.

An automated motor vehicle, as defined by Section 545.451,

Transportation Code, is considered a transportation network

company driver for purposes of Subchapter B, and the coverage

requirements of that subchapter apply to the automated motor

vehicle.

SECTION 3. 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 4. 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 corporation, partnership, sole proprietorship, or other

entity that, for compensation, enables a passenger to prearrange a

ride in an automated motor vehicle through the entity's digital

network is a transportation network company and is subject to the

requirements of this chapter, except as otherwise provided by this

section.

(b)

A transportation network company holding a permit under

this chapter may use automated motor vehicles owned by the company

or operated under a contract with the company to provide digitally

prearranged rides through the company's digital network.

(c)

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 5. 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 6. 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 or the

digital network of another entity.

SECTION 7. Section 643.054(a-2), Transportation Code, is

amended to read as follows:

(a-2) The department may deny a registration if the

applicant is owned, operated, managed, or otherwise controlled by

or affiliated with a person, including a family member, corporate

officer, entity, or shareholder, that the Department of Public

Safety has determined has:

(1) an unsatisfactory safety rating under 49 C.F.R.

Part 385; or

(2) multiple violations of Chapter 644, a rule adopted

under that chapter, or Subtitle C
, other than Section 545.455(c)
.

SECTION 8. Section 643.058(e), Transportation Code, is

amended to read as follows:

(e) The department may deny a motor carrier's application to

renew a registration if the motor carrier is owned, operated,

managed, or otherwise controlled by or affiliated with a person,

including a family member, corporate officer, entity, or

shareholder, that:

(1) the Department of Public Safety has determined

has:

(A) an unsatisfactory safety rating under 49

C.F.R. Part 385; or

(B) multiple violations of Chapter 644, a rule

adopted under that chapter, or Subtitle C
, other than Section

545.455(c)
;

(2) owned, operated, managed, or otherwise controlled

a motor carrier that the Federal Motor Carrier Safety

Administration has placed out of service for unacceptable safety

compliance; or

(3) has unpaid administrative penalties assessed

under this chapter or Subtitle E.

SECTION 9. Section 643.0585(c), Transportation Code, is

amended to read as follows:

(c) The department may deny a motor carrier's application

for reregistration if the motor carrier is owned, operated,

managed, or otherwise controlled by or affiliated with a person,

including a family member, corporate officer, entity, or

shareholder, that:

(1) the Department of Public Safety has determined

has:

(A) an unsatisfactory safety rating under 49

C.F.R. Part 385; or

(B) multiple violations of Chapter 644, a rule

adopted under that chapter, or Subtitle C
, other than Section

545.455(c)
;

(2) owned, operated, managed, or otherwise controlled

a motor carrier that the Federal Motor Carrier Safety

Administration has placed out of service for unacceptable safety

compliance; or

(3) has unpaid administrative penalties assessed

under this chapter or Subtitle E.

SECTION 10. Section 643.252(b), Transportation Code, is

amended to read as follows:

(b) The Department of Public Safety may request that the

department suspend or revoke a registration issued under this

chapter or place on probation a motor carrier whose registration is

suspended if a motor carrier has:

(1) an unsatisfactory safety rating under 49 C.F.R.

Part 385; or

(2) multiple violations of Chapter 644, a rule adopted

under that chapter, or Subtitle C
, other than Section 545.455(c)
.

SECTION 11. (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(c)(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 12. 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.