By: Nichols  S.B. No. 2425          (In the Senate - Filed March 13, 2025; March 19, 2025, read   first time and referred to Committee on Transportation;   April 7, 2025, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 8, Nays 0; April 7, 2025,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 2425 By:  Nichols     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.                (3)  "Authorization holder" means a person granted   authorization by the department under Section 545.457 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   Society of Automotive Engineers International Standard J3016   (April 2021).                (9)  "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).                (10)  "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).                (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.  APPLICABILITY. The provisions of this   subchapter applicable to an automated motor vehicle apply only to   an automated motor vehicle that is equipped with an automated   driving system that is capable of operating the vehicle with Level 4   automation or Level 5 automation.          Sec. 545.453.  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. Notwithstanding any other law, a traffic or motor vehicle   law adopted by a political subdivision of this state may not be   enforced against an automated motor vehicle to which this   subchapter applies.          (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 to which this subchapter applies if the   commission determines that the exemption will not cause a risk to   public safety.          Sec. 545.454 [545.453].  RULES. The board may adopt rules   necessary to administer this subchapter.          Sec. 545.455.  OPERATOR OF AUTOMATED MOTOR VEHICLE. (a)   When an automated driving system is operating [installed on] a   motor vehicle, the automated driving system is the operator of the   vehicle and shall electronically perform all physical acts required   by a human driver in operation of the vehicle.          (b)  Notwithstanding Subsection (a), 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   545.457, the authorization holder for, the automated motor vehicle:                (1)  [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)  shall be issued any citation for a violation of   traffic or motor vehicle laws related to [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. 545.456  [545.454].  AUTOMATED MOTOR VEHICLE   OPERATION; OFFENSE. (a)  Any vehicle equipped with an automated   driving system may operate in this state, and an [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 for hire or compensation or for   research purposes 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   545.457; 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. 545.457.  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 for hire or compensation or for research purposes 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   545.456(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) on   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. 545.458 [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. 545.459.  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. 545.460.  ENFORCEMENT. (a)  If the department   determines that an automated motor vehicle operating under an   authorization issued by the department under Section 545.457 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) or the department determines that the certification   provided to the department under that subsection is materially   inaccurate, 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:                (1)  the authorization holder subsequently takes the   actions required by Subsections (d)(1) and (2); and                (2)  the department does not determine that the   certification provided under Subdivision (1) is materially   inaccurate.          (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 department may consider relevant citations issued   to an authorization holder for traffic or motor vehicle violations   incurred by an automated motor vehicle when exercising the   department's enforcement authority under this section.           (m)  Except as provided by Section 545.457, 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 545.457.          [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 B, Chapter 1954, Insurance Code, is   amended by adding Section 1954.0515 to read as follows:          Sec. 1954.0515.  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 this subchapter, and the coverage   requirements of this subchapter apply to the automated motor   vehicle.          SECTION 3.  Section 2402.001, Occupations Code, is amended   by amending Subdivisions (1) and (5) 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.                (5)  "Transportation network company" means a   corporation, partnership, sole proprietorship, or other entity   that, for compensation, enables a passenger to prearrange with a   driver, exclusively through the entity's digital network or the   digital network of another entity, a digitally prearranged   ride.  The term does not include an entity that provides:                      (A)  street-hail taxicab services;                      (B)  limousine or other car services arranged by a   method other than through a digital network;                      (C)  shared expense carpool or vanpool   arrangements; or                      (D)  a type of ride service for which:                            (i)  the fee received by the driver does not   exceed the driver's costs of providing the ride; or                            (ii)  the driver receives a fee that exceeds   the driver's costs associated with providing the ride but makes not   more than three round-trips per day between the driver's or   passenger's place of employment and the driver's or passenger's   home.          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 transportation network company holding a permit under this   chapter may use automated motor vehicles to provide digitally   prearranged rides through the company's digital network or the   digital network of another entity.          (b)  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.  (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 545.456(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 8.  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.     * * * * *