By: Nichols, West 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 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.