BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1298
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  padilla
                                                         VERSION: 4/9/12
          Analysis by:  Carrie Cornwell                  FISCAL:  Yes
          Hearing date:  April 10, 2012







          SUBJECT:

          Autonomous vehicles

          DESCRIPTION:

          This bill explicitly permits autonomous vehicles to operate on 
          California's public roads without a driver present in the 
          vehicle if specified conditions are met.

          ANALYSIS:

          Existing law defines a vehicle as "a device by which any person 
          or property may be propelled, moved, or drawn upon a highway, 
          excepting a device moved exclusively by human power or used 
          exclusively upon stationary rails or tracks."  Existing law 
          provides numerous rules governing the operation of vehicles on 
          the state's public and private roads.  It does not, however, 
          require that a person drive a vehicle.

           This bill  :



          1)Defines "autonomous vehicle" as a vehicle equipped with 
            technology that has the capability to drive the vehicle 
            without the active control or continuous monitoring by a human 
            operator.



          2)Defines the "operator of an autonomous vehicle" as the person 
            who causes the autonomous technology to engage, regardless of 
            whether the person is physically present in the vehicle or 




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            not.



          3)Permits a licensed driver to operate an autonomous vehicle 
            (i.e., turn the self-drive function on) on the state's 
            highways and roads if  either  a) or b) are met.



             a)   To operate the vehicle for testing purposes, an 
               employee, contractor, or other person designated by the 
               manufacturer of the autonomous technology must operate the 
               vehicle from within the vehicle such that he or she has the 
               ability to monitor the vehicle's performance and intervene. 
                Prior to the start of testing, the entity performing the 
               testing must obtain insurance of at least $5 million.  Any 
               entity performing road tests of autonomous vehicles must 
               have completed at least 10,000 miles of prior road testing 
               with the autonomous technology engaged.




             b)    To operate the vehicle in all other circumstances, the 
               manufacturer of the autonomous technology must certify 
               that:



                  i)        The autonomous vehicle has a mechanism to 
                    engage and disengage the autonomous technology, and it 
                    is easily accessible by the operator;


                  ii)       The autonomous vehicle has a visual indicator 
                    "inside the cabin" that shows when the autonomous 
                    technology is engaged;


                  iii)      The autonomous vehicle has an alert system to 
                    let the operator know if an autonomous technology 
                    failure occurs.  When that alert occurs, the system 
                    must either require the operator to take control of 
                    the vehicle, or if the operator cannot, then the 
                    autonomous vehicle must take itself safely out of 




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                    traffic;


                  iv)       If the autonomous technology requires a driver 
                    in the vehicle, the technology allows the driver to 
                    take control from the autonomous vehicle in multiple 
                    manners, including engaging the brake, accelerator, or 
                    steering wheel;


                  v)        The autonomous technology meets all applicable 
                    federal safety standards and performance requirements; 
                    and 


                  vi)       The autonomous technology does not adversely 
                    affect any federally mandated safety features on the 
                    vehicle.



          4)Permits the California Highway Patrol, in consultation with 
            the Department of Motor Vehicles, to recommend to the 
            Legislature additional requirements for the safe operation of 
            autonomous vehicles in California.



          5)Provides that National Highway Traffic Safety Administration 
            (NHTSA) regulations will supersede this bill when they are 
            found to be in conflict with the provisions of this bill.
          
          COMMENTS:

          1.Purpose  .  The author notes that despite the many safety 
            improvements to the automobile since its invention, auto 
            accidents remain a leading cause of death.   The Centers for 
            Disease Control (CDC) report that motor vehicle crashes are 
            the leading cause of death among people 5 through 34 years 
            old.  In 2009, more than 2.3 million adult drivers and 
            passengers were treated in emergency rooms as the result of 
            being injured in motor vehicle crashes nationwide. 

            According to NHTSA, in 2010, a total of 32,885 people died in 
            the United States in car accidents. More than 2,700 of these 
            traffic fatalities were here in California.  Car accidents 




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            also result in a significant economic impact.  A 2005 CDC 
            report found that the lifetime cost of crash-related deaths 
            and injuries among drivers and passengers was $70 billion.

            The author points out that the vast majority of traffic 
            fatalities and injuries are due to human error, noting that a 
            2006 U.S. Department of Transportation study found that some 
            form of driver error occurred in nearly 80% of car accidents.  
            The author asserts that through the use of computers, sensors 
            and other systems, an autonomous vehicle is capable of 
            analyzing the driving environment more quickly and operating 
            the vehicle more safely than a human being.  

            He introduced this bill to enable California to join other 
            states in establishing safe testing and operation standards 
            for autonomous vehicles.  Last year, the Governor of Nevada 
            signed a similar bill into law.  In addition, Florida, Hawaii, 
            Oklahoma, and Arizona are all currently considering autonomous 
            vehicle legislation.   The author and supporters note that as 
            a global technology leader, California is uniquely positioned 
            to be the leader in the deployment of autonomous technology 
            and the manufacture of autonomous vehicles.  He states that 
            this technology will not only save lives, it will create jobs.

           2.No driver in the car  ?  As noted above, existing California law 
            does not require a driver to operate a vehicle.  Heretofore 
            this omission has not mattered, as cars that could drive 
            themselves were futuristic.  Such vehicles now appear to be 
            just a few years away from being commercially available.  The 
            supporters of this bill contend that the bill is necessary to 
            provide a structure and explicit authorization in law so that 
            those investing in the development of autonomous vehicles can 
            do so confident that the end product will be legally drivable 
            here.  Still, the idea of a driverless car raises a number of 
            issues, including:

                 Autonomous vehicles will share the road with cars that 
               have human drivers, because of this and other unavoidable 
               circumstances, accidents will occur that involve the 
               autonomous vehicle.  When an accident occurs, the operator 
               of the autonomous vehicle, which the bill defines to be the 
               person who engaged the autonomous function, could be a 
               great distance away from the vehicle, even in another 
               jurisdiction.  What then would occur in terms of reporting 
               the accident?  Dealing with the disabled vehicle?  
               Discerning fault?  Exchanging insurance information?  




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                 What financial responsibility would an operator versus 
               an owner of an autonomous vehicle bear when such a vehicle 
               was in an accident?

                 If the vehicle commits a violation of state law, how is 
               law enforcement to cite the operator when that person is 
               not present in the vehicle?  Could law enforcement even 
               legally cite the operator?

           1.Federal regulations  .  The federal government has yet to 
            regulate autonomous vehicles in any fashion.  NHTSA, the 
            entity responsible for developing Federal Motor Vehicle Safety 
            Standards, has yet to initiate a process to develop standards 
            for autonomous vehicle technology, and even once it does so, 
            it likely will take several years to finalize those standards. 
             It is not uncommon, however, for federal standards to lag 
            innovation in the auto industry and for manufacturers to add 
            safety improvements to vehicles prior to the development of 
            applicable standards.  This bill states that NHTSA regulations 
            of autonomous vehicles will supersede the provisions of this 
            bill that "are found to be in conflict" with those standards.  
            It is unclear, however, who would make this finding.  In any 
            case, federal law provides that federal motor vehicle 
            standards pre-empt state law.  The committee may wish, 
            therefore, to consider either 1) deleting the language that 
            NHTSA regulations supersede the bill's provisions that are 
            found in conflict with those regulations, or 2) specifying who 
            will deem what provisions are in conflict.
          
           2.Testing and certification  .  This bill provides two sets of 
            rules for the legal operation of autonomous vehicles on 
            California's public roads.  One set is for the testing of the 
            technology and the other is for all other uses of autonomous 
            vehicles.  In the second instance, a manufacturer of the 
            autonomous technology certifies that the technology meets 
            specified safety requirements but does not state to whom the 
            manufacturer makes this certification.  The committee may wish 
            to amend the bill to specify to whom the manufacturer 
            certifies that an autonomous vehicle meets its requirements.
           
          3.Liability issues  .  The bill requires any entity testing 
            autonomous vehicles on California's public roads to obtain "an 
            instrument of insurance, surety bond, or proof of 
            self-insurance" for $5 million.  The bill provides no special 
            or additional financial responsibility for autonomous vehicles 




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            that meet the bill's certification requirement (described in 
            #3b above). DMV enforces existing vehicle financial 
            responsibility laws as part of its vehicle registration 
            duties.  What would be an appropriate level of financial 
            responsibility, how this provision would be enforced, and who 
            or what entities should be the potential beneficiaries of the 
            insurance or bond, are all issues outside the jurisdiction of 
            this committee.  Should the committee pass this bill, the 
            committee may wish to refer this bill to the Rules Committee 
            for potential referral to another policy committee to consider 
            these financial responsibility and liability issues.
          
           4.Barrier to entry  .  This bill requires any entity performing 
            road tests of autonomous vehicles to have completed at least 
            10,000 miles of prior road testing with the autonomous 
            technology engaged.  Once this bill becomes law, however, 
            testing entities will no longer be able to drive autonomous 
            vehicle legally on California's roads in order to attain those 
            10,000 miles.  Thus, while existing testing entities that have 
            achieved 10,000 miles will be able to meet the requirements of 
            the bill, testing entities entering the autonomous vehicles 
            market will not.  New testing entities will face a barrier to 
            entry because there will be no legal way in California to 
            achieve the 10,000 miles.
                
            5.Technical amendment  .   On page 4, delete lines 21- 28 and 
            insert:  "The autonomous vehicle allows the operator, when 
            seated inside the vehicle, to take control in multiple 
            manners, including, without limitation, through the use of the 
            brake, the accelerator pedal, or the steering wheel, and it 
            alerts the operator that the autonomous technology has been 
            disengaged."

          
          POSITIONS:  (Communicated to the committee before noon on 
          Wednesday,                                             April 4, 
          2012)

               SUPPORT:  Google
                         Technology Association of America
                         Engineering Contractors' Association
                         California Fence Contractors' Association
                         California Chapter of the American Fence 
          Association
                         Marin Builders Association
                         Flasher Barricade Association




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               OPPOSED:  None received.