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.