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.