A 3968 — Establishes fully autonomous vehicle pilot program.*

and submits     to(3)   the commission,human indriver a manner and formthe determinedautonomous byvehicle thetester:  commission,     proof(a)   ofcomply liabilitywith insurance,the self-insurance,applicable orprovisions aof suretyTitle bond39 of atthe leastRevised $5,000,000Statutes forand damagesany byother reasonapplicable oflaws, bodilyrules, injury,and death,regulations orof propertythis damageState causedconcerning by the fullyoperation autonomousof a motor vehicle;

and      (3) (b)   comply with the operatorstandards andestablished by the autonomousNational vehicleHighway tester:Traffic Safety Administration regarding fully autonomous vehicles;

and      (a)  (c)   complysatisfy with any provisionother ofrequirement Titleas 39determined ofby the Revisedcommissioner, Statutesin orconsultation anywith otherthe lawchief ofadministrator, thisas Statenecessary concerningto ensure the safe operation of afully motorautonomous vehicle;vehicles in the State.

     (b) e.     complyNotwithstanding withparagraph the(1) standardsof establishedsubsection byd. the National Highway Traffic Safety Administration regarding fully autonomous vehicles;

andof     this (c)  section, satisfyan anyautonomous othervehicle requirementtester asmay determinedoperate bya thefully chiefautonomous administrator,vehicle inwithout consultationa withhuman driver.  However, the Commissionerautonomous ofvehicle Transportation,tester asshall necessarydemonstrate to ensurethe department that the safeautonomous operationvehicle manufacturer has:       (1)   conducted testing of the fully autonomous vehiclesvehicle inwithin the State.proposed operational design domain for a minimum of 50,000 miles and provided the department with an assessment supporting the autonomous vehicle manufacturer’s safety claims;

and      e.   (2)   Thecompleted chiefthe administratorrequired mayminimum immediatelyof prohibit50,000 anmiles operatoron orpublic autonomousroadways vehiclein testerthe fromState operatingwithout amajor fullyincident autonomousthroughout vehicle if the chiefintended administratoroperational determinesdesign thatdomain thewith operation of a fullyhuman autonomousdriver vehiclephysically bylocated in the operatordriver’s orseat autonomousor, vehicleif tester poses a risk to public safety or that the operatorfully or autonomous vehicle testerwas failsinvolved toin complya withmajor theincident provisionswhile ofcompleting P.L.    ,the c.   50,000 (C.        )mile (pendingrequirement, before the Legislaturefully asautonomous thisvehicle bill)was ornot withat thefault requirementsfor of the pilotmajor program.incident.

     f.     AnWhen autonomousthe automated driving system installed on a vehicle testeris thatengaged:  participates     in(1)   the pilotautomated programdriving system shall providebe informationconsidered to the chiefhuman administratordriver thatof the chiefvehicle administratorfor deemsthe topurpose beof appropriateassessing forcompliance measuringwith theapplicable performancetraffic ofor themotor pilotvehicle program. laws Theand autonomousshall vehiclebe testercapable mayof withholdperforming anyall commerciallyphysical valuable,acts confidential,required orby proprietarya information.human driver of a vehicle;

and      3.   (2)   Anythe fullyautomated autonomousdriving vehiclesystem beingshall operatedbe asconsidered partlicensed ofto operate the pilotvehicle. program shall:

     a.   g.    beIn equippedaddition withto satisfying the requirements of this section, a redundantperson safetyshall systemnot operate a fully autonomous vehicle on the public roads of this State to ensuretransport aproperty controlledor stoppassengers in casefurtherance of systema failurecommercial enterprise without a human driver unless:       (1)   the person receives and bemaintains equippedauthorization withto technologyoperate thatfully ensuresautonomous appropriatevehicles motorfrom vehiclethe control;department pursuant to subsection b.

     b.    allow the operator or emergency responders to override autonomous functions through manual controls of anthis emergencysection; stop mechanism and allow operators to take control at any time through various methods, including but not limited to, use of the brake, the accelerator pedal, or steering wheel;

and      c.   (2)   alertthe operatorsperson when fully autonomous vehicle technology has beenprovided disengaged and the operatorNew isJersey requiredDivision toof takeState overPolice controlwith ofa thefirst motorresponder vehicle;interaction plan.

     However, pursuant to subsection a.

of this section, nothing in this subsection shall be construed to permit the testing or operation under the pilot program of a fully autonomous vehicle that requires a person, pursuant to federal or State law, to possess a commercial driver license.

     h.    Upon receipt of an application pursuant to subsection b.

of this section that is complete and accurate, the department shall approve the application and thereby authorize the applicant to operate a fully autonomous vehicle pursuant to this section.  This authorization shall not expire unless suspended or revoked by the department.  However, prior to receiving this authorization, a person shall provide to the department:       (1)   the name, address, and principal contact information for the person applying for authorization;

     (2)   the vehicle information for the fully autonomous vehicle used for operations;

and      (3)   a written statement certifying that each fully autonomous vehicle complies with subsection d.

of this section.

     i.     The authorization holder shall provide to the department an update to the information required pursuant to subsection h.

of this section no later than 30 days after the information materially changes.  The commissioner may immediately suspend or revoke the authorization if the authorization holder fails to comply with this subsection.  The commissioner shall promptly rescind the suspension or revocation upon receiving the updated information.

     j.     The commissioner may immediately prohibit a human driver or autonomous vehicle tester from operating a fully autonomous vehicle if the commissioner determines that the operation of a fully autonomous vehicle by the human driver or autonomous vehicle tester poses a risk to public safety or that the human driver or autonomous vehicle tester fails to comply with the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     k.    The commissioner shall establish guidelines that prohibit the operation of fully autonomous vehicles in the event of extreme weather, emergency service situations, power outages, and any other circumstances as determined by the commissioner.

     l.     An autonomous vehicle tester that participates in the pilot program shall provide information to the commissioner that the commissioner deems to be appropriate for measuring the performance of the pilot program.  The autonomous vehicle tester may withhold any commercially valuable, confidential, or proprietary information.  However, the withholding of such information shall not impede the department’s ability to measure the performance of the pilot program.

       3.    a.  If the commissioner determines that the fully autonomous vehicle operated by an authorization holder is not in safe operational condition and poses a risk to public safety, the commissioner shall provide the authorization holder for the vehicle with a notice of intent to:       (1)   suspend or revoke the authorization;

or      (2)   impose restrictions on the operation of the vehicle.

     b.    For the purposes of this section, the operation of a fully autonomous vehicle shall be deemed a risk to public safety when the operation creates a substantial risk of death or has caused death, serious permanent disfigurement, or protracted loss or impairment of the function of any bodily member or organ.

     c.     The notice of intent issued pursuant to subsection a.

of this section shall:       (1)   summarize the commissioner’s determination and supporting evidence for the determination;

     (2)   provide the authorization holder with a reasonable period of time to:       (a)   correct the issues identified in the commissioner’s determination;

and      (b)   provide to the commissioner the certification required by subsection d.

of this section;

and      (3)   specify which enforcement actions the commissioner will take if the authorization holder fails to provide the required certification within the specified time period.  During this period, the authorization holder may not operate the autonomous vehicle.

     d.    Before the time period specified in a notice of intent expires, the authorization holder shall:       (1)   correct the issues identified by the commissioner in the notice;

and      (2)   provide to the commissioner a certification acknowledging that the issues identified by the commissioner in the notice have been corrected along with an explanation of how the issues have been corrected, such as identifying any operational measures that were implemented.

     e.     The commissioner may extend the period specified in a notice of intent upon a written request for an extension if the commissioner determines that the extension request is reasonable.

     f.     If the authorization holder fails to comply with subsection d.

of this section, the commissioner shall:       (1)   issue a decision, as specified in the notice of intent, that suspends or revokes the authorization, or that imposes restrictions on the operation of the vehicle;

and      (2)   notify the authorization holder of the decision issued by the commissioner.

     g.    Within 10 days of receiving notice of a decision issued by the commissioner pursuant to subsection f.

of this section, an authorization holder may submit a written request to the commissioner for review of the decision.  Within 10 days of the commissioner receiving such a request, the commissioner shall review the decision and issue a final determination to the authorization holder either upholding or rescinding the decision.

     h.    If the commissioner issues a final determination that upholds the decision, an authorization holder may submit a written request for a hearing.  The request shall be submitted within 10 days of the commissioner upholding the commissioner’s decision.  The commissioner shall set a hearing within 10 days of the hearing request and provide the authorization holder, the autonomous vehicle manufacturer, and the manufacturer of the automated driving system the opportunity to present evidence at the hearing.  The hearing shall be conducted by an administrative law judge of the Office of Administrative Law and shall be conducted within 30 days of the commissioner’s final determination upholding the commissioner’s decision.  If a hearing is not held during this period, the authorization issued shall be automatically reinstated or the restriction imposed automatically removed, as applicable.

     i.     The commissioner shall promptly rescind a suspension or revocation, or remove a restriction, if the authorization holder takes the necessary actions, as verified by the commissioner, to comply with subsection d.

of this section.

     4.    A fully autonomous vehicle operated under the pilot program shall:       a.     be equipped with a redundant safety system to ensure a controlled stop in case of system failure and technology that ensures appropriate motor vehicle control;

     b.    allow the human driver or emergency responders to override autonomous functions through manual controls of an emergency stop mechanism and allow human drivers to take control at any time through various methods, including, but not limited to, use of the brake, the accelerator pedal, or steering wheel;

     c.     alert human drivers when the fully autonomous vehicle technology has been disengaged and the human driver is required to take control of the motor vehicle;

     e.   e.     be equipped with crash-avoidance systems, including a camera system and two distinct sensing modalities that are capable of detecting and tracking obstacles in the event of failure of the camera system so that the automated driving system can avoid obstacles while bringing the vehicle to a minimal risk condition, which systems shall be capable of pedestrian detection, automatic emergency braking, and lane keep assist systems;

and      h.    bear a marker that is visible to other drivers and pedestrians to indicate the motor vehicle is a fully autonomous vehicle.vehicle;

       4.   i.     Allbe fullycapable of achieving a minimal risk condition or, when operated by a human driver, issue a request for the autonomous vehicle collisionstester shallto beintervene reported,in alongthe withevent anythe relevantautomated data,driving system fails such that the automated driving system is unable to perform the departmententire withindynamic 48driving hours.task relevant to its intended operational design domain;

       5.   j.     a. be Thecovered departmentby shallmotor establishvehicle newliability fullycoverage autonomousor vehicleself-insurance testingin environments,an includingamount closedequal testbedsto andor open-roadgreater testbeds,than andthe shallamount alsoof makecoverage userequired under the laws of anythis existingState, autonomousand vehicleproof testingof environments.such insurance is submitted to the commission, in a manner and form determined by the commission;

     b.   k.    Thecomply departmentwith shallany identifyapplicable fundingprovision sourcesof toTitle invest39 inof andthe shallRevised coordinateStatutes withor countiesany andother municipalitiesapplicable tolaw deployof smartthis infrastructureState forconcerning fullythe autonomousoperation vehiclesof includingmotor sensorvehicles; equipped roads, communication systems, and real-time traffic management technology.

       6.   l.     a. comply Fullywith autonomousthe vehiclesstandards operatingestablished asby taxisthe shallNational onlyHighway beTraffic permittedSafety toAdministration operateregarding on designated highways, shall be marked as fully autonomous,autonomous shallvehicles; be continuously monitored through data reporting, and shall have communication systems for emergency overrides by authorities.

     b.   m.   Fullywhen autonomousrequired vehiclesby operatingfederal aslaw, commercialbear trucksthe shallrequired operatemanufacturer’s oncertification designatedlabel highwaysindicating underthat, specificat speedthe andtime weightof restrictionsits setmanufacture, by the departmentvehicle andwas shallcertified requireto appropriatecomply licensingwith forall operatorsapplicable ensuringFederal operatorsMotor areVehicle capableSafety ofStandards, manuallyincluding controllingreference to any exemption granted by the vehicle,National ifHighway needed.Traffic Safety Administration;

and      c.   n.    Platooningsatisfy isany authorizedother forrequirements fullydetermined autonomousby vehiclesthe operatingcommissioner, asin commercialconsultation trucks on highways with athe leadchief vehicleadministrator, controlledas bynecessary anto operator. ensure Trucksthe thatsafe employoperation synchronizedof brakingfully andautonomous accelerationvehicles thatin follow the leadState. vehicle may operate at a level five automation and without a human driver.

       7.   5.    Noa.  laterAn thanautonomous sixvehicle monthstester aftershall completionreport ofa thecrash three-yearinvolving pilotany program,of theits commissionfully shallautonomous submitvehicles to the Governordepartment and,no pursuantlater tothan sectionfive 2calendar ofdays P.L.1991,after c.164receiving (C.52:14-19.1),notice toof the Legislature a reportcrash thatif:  evaluates     the(1)   pilot program and includes recommendations for the safecrash integrationoccurred ofon fullya autonomouspublicly-accessible vehiclesroad onin the highwaysState; of this State.

       8.   (2)   Thethe commissionautomated shalldriving adopt,system in consultation with the department,fully andautonomous pursuantvehicle towas theengaged “Administrativefor Procedureany Act,”amount P.L.1968,of c.410time (C.52:14B-1beginning et30 seq.),seconds rulesprior and regulations to effectuate the purposescommencement of P.L.    ,the c.   crash (C.        )through (pending before the Legislatureconclusion asof thisthe bill).crash;

       9.   (3)   This act shall take effect immediately and shall expire upon the submissioncrash ofresulted thein reporta requiredfatality, toany beindividual submittedbeing pursuanttransported to sectiona 7hospital offor P.L.    ,medical c.   treatment, (C.        )an (pendingairbag beforedeployment, theor Legislatureimpact aswith thisa bill).pedestrian;

 and   STATEMENT        This(4)   bill requires the Newnotice Jersey Motor Vehicle Commission (commission), in consultation with the Department of Transportation (department), to establish a three-year pilot program to allow autonomous vehicle testers (testers) to operate fully autonomous vehicles (AVs) in the State. crash      The pilot program is toreceived beat overseenleast by10 acalendar taskdays forceafter madethe upeffective ofdate five members composed of publicP.L.    , safetyc.    officials,(C.        ) transportation(pending experts,before and AV industry representatives, and consumer advocates appointed by the commission,Legislature inas consultationthis withbill). the department.  The task force is required to:  (1) provide quarterly reports to the commission and to the department regarding the status of the pilot program;

(2)     solicitb.    publicThe feedbackreport concerningrequired theby pilotsubsection program;a.

(3)of assistthis thesection commissionshall andcontain departmentall inapplicable establishinginformation responsesrequired andby protocolsthe relatedThird toAmended AVStanding collisions,General cyberattacksOrder against2021-01 AVissued manufacturersby andthe AVs,National majorHighway operationalTraffic disruptionsSafety concerningAdministration AVs, and liabilityshall be submitted in eventa format consistent with the requirements of AVthe collisions;order.

and     (4)c.     coordinateThe withdepartment theshall Newcompile Jerseyand Divisionpost ofon State Police and the Officedepartment’s ofInternet website the Attorneycrash Generaldata tosubmitted developpursuant guidelines to governsubsection pedestriana. and driver security and safety.

    of Testersthis aresection notand permittedupdate this data every other month.  The department shall transmit this data to operatethe AVsNational inHighway Traffic Safety Administration and the StateNational unlessTransportation certainSafety conditionsBoard areevery met. other Specifically,month.  theThe operatordepartment isshall requirednot to: publish beany seatedproprietary inbusiness information, including trade secrets or personally identifying information, when posting the AV’sdata driver’son seat;the department’s Internet website.

monitor     thed.    AV’sAn operation;autonomous vehicle tester that fails to report a crash pursuant to subsection a.

of this section to the department shall be capableliable ofto takingthe immediatedepartment manualfor controla ofcivil penalty, in an amount to be determined by the AV;department, per violation per day.

be  an     employee,6.    independentA contractor,fully orautonomous othervehicle personoperated designatedunder andthe trainedpilot byprogram theshall AVnot testeroperate concerningin thea capabilitiesschool andzone, limitationsa construction zone, or an area with high rates of pedestrian collisions, as determined by the AV;department.

not     be7.    undera.  A motor vehicle dealer or manufacturer that sells, leases, or otherwise transfers a new passenger vehicle that is equipped with a partial automated driving system shall provide the influencebuyer, lessee, or transferee, at or before the time of drugssale, lease, or alcohol;transfer, a written disclosure that:       (1)   identifies each partial automated driving system feature installed on the vehicle by its official name;

and possess     a(2)   validdescribes basicin driver’sclear licenseand orconspicuous otherlanguage appropriate license.  The tester is required to register the AVfunction, capabilities, and submitlimitations proof of liabilityeach insurance,partial self-insurance,automated ordriving asystem suretyfeature, bondincluding of at least $5 million to the commission. requirement     for The Chief Administrator of the commissiondriver (chief administrator) is permitted to immediatelyremain prohibitattentive anand operatorin orcontrol testerof from operating an AV if the chiefvehicle administratorat determinesall thattimes. such operation poses a risk to public safety or that the operator or AV tester fails to comply with the provisions of the bill.

     b.    A testermanufacturer participatingor indealer theshall pilotnot programuse ismarketing requiredmaterials, tolabels, provideadvertisements, theor chiefrepresentations administratorthat withimply certainor informationwould appropriatelead fora measuringreasonable theperson performanceto ofbelieve thethat pilota program,partial butautomated isdriving permittedsystem tofeature withholdrenders commerciallythe valuable,vehicle confidential,capable of fully autonomous operation or proprietarynegates information.the need for a responsible driver.

     Anyc.     AVA beingviolation operatedof underthis thesection pilotshall programbe isconsidered requireda to: violation (1)of bethe equippedNew withJersey aconsumer redundantfraud safetyact, systemP.L.1960, c.39 (C.56:8-1 et seq.), and technologyshall thatbe ensuressubject appropriateto motorenforcement vehicleby control;the Attorney General.

(2)  allow     the8.    operatora.  orThe emergencydepartment respondersshall toestablish overridenew fully autonomous functionsvehicle testing environments, including closed testbeds and allowopen-road operatorstestbeds, toand takeshall controlalso make use of theany AV;existing autonomous vehicle testing environments.

(3)     alertb.    operatorsThe whendepartment AVshall technologyidentify hasfunding beensources disengagedto invest in and theshall operatorcoordinate iswith requiredcounties and municipalities to takedeploy controlsmart ofinfrastructure thefor vehicle;fully autonomous vehicles, including sensor-equipped roads, communication systems, and real-time traffic management technology.

(4)  retain     data9.    recordingsFully beginningautonomous 30vehicles secondsoperating beforeas aautocabs collisionor andtaxis, as those terms are defined in R.S.48:16-1, shall only be capablepermitted to operate on designated highways, pursuant to those provisions of capturingState operationallaw data;governing the operation of taxis that can reasonably apply to the operation of fully autonomous vehicles with the automated driving system engaged.  Such vehicles shall be identifiable as fully autonomous vehicles, shall be continuously monitored through data reporting, and shall have communication systems for emergency overrides by law enforcement or other emergency responders.

(5)       10.  In the absence of a human driver, the autonomous vehicle tester shall be equippedliable withfor:  certain     crash-avoidancea.     systems;any property damages sustained due to improper operation of a fully autonomous vehicle;

(6)     complyb.    withtraffic postedlaw speedviolations, limitsincluding, but not limited to, improper operations of a fully autonomous vehicle that illegally block access on streets, illegally park on or otherwise block sidewalks or bicycle lanes, violate anti-idling regulations, and emitillegally artificialpass noisestop forsigns pedestrianor safety;intersection red-lights;

(7)and meet     industryc.     cybersecuritycrash standardsinjuries andor ensurefatalities thatsustained alldue datato isimproper encrypted;operation of a fully autonomous vehicle.

and  (8)     bear11.  aNo visiblelater markerthan six months after the completion of the three-year pilot program, the department shall submit to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature a report that indicatesevaluates the vehiclepilot isprogram anand AV.includes recommendations for the safe integration of fully autonomous vehicles on the highways of this State.

       Under12.  thea.  bill,Unless allotherwise AVprovided collisionsin areP.L.    , toc.    be(C.        ) reported(pending tobefore the departmentLegislature withinas 48this hours. bill), Additionally,and thenotwithstanding billany requiresother theprovision departmentof law to establishthe newcontrary, AVfully testingautonomous environments,vehicles including closed testbeds and open-roadautomated testbeds,driving andsystems toshall utilizebe existinggoverned AVexclusively testingby environments. P.L.    , Thec.    department(C.        ) is(pending requiredbefore tothe identifyLegislature fundingas sourcesthis tobill).  investThe indepartment andshall tobe coordinatethe withsole counties and municipalitiesexclusive toState deployagency smartthat infrastructuremay forimplement AVs,the includingprovisions sensorof equippedP.L.    , roads,c.    communication(C.        ) systems,(pending andbefore realthe timeLegislature trafficas managementthis technology.bill).

     AVsb.    operatingNo asState taxisagency, arepolitical to: subdivision, operatemunicipality, onor designatedlocal highways;entity may prohibit the operation of fully autonomous vehicles or automated driving systems or otherwise enact or keep in force rules or ordinances that would impose taxes, fees, or other requirements specific to the operation of fully autonomous vehicles or automated driving systems in addition to the requirements of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

be  marked     13.  The department shall adopt, in consultation with the commission, and pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations strictly necessary to effectuate the purposes of P.L.    , c.    (C.        ) (pending before the Legislature as fullythis autonomous;bill).

be  continuously     monitored14.  throughThis dataact reporting;shall take effect immediately and shall expire upon the submission of the report required pursuant to section 11 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

and have communication systems for emergency overrides by authorities.  AVs operating as commercial trucks are to operate on designated highways under specific speed and weight restrictions set by the department and operators are required to have appropriate licensing to handle manual controls if needed.  Finally, platooning is authorized for AVs operating as commercial trucks on highways with a lead vehicle controlled by an operator.  Trucks that employ synchronized braking and acceleration and that follow the lead vehicle may operate as a fully autonomous vehicle without a human driver.

     The commission is required, no later than six months after completion of the three-year pilot program, to submit to the Governor and to the Legislature a report that evaluates the pilot program and includes recommendations for the safe integration of AVs on State highways.