BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1298
                                                                  Page  1

          Date of Hearing:   August 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1298 (Padilla) - As Amended:  August 7, 2012 

          Policy Committee:                             
          TransportationVote:13-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill conditionally authorizes the operation of autonomous 
          vehicles-those equipped with technology capable of driving the 
          vehicles without the active physical control of or monitoring by 
          a human operator-on public roads.  Specifically, this bill:

          1)Defines manufacturer of autonomous technology and further 
            specifies that a person may modify a conventional vehicle with 
            autonomous technology to make the vehicle an autonomous 
            vehicle. 

          2)Codifies. (a) the intent of the Legislature that current law 
            governing third-party vehicle conversion controls issues of 
            liability arising from the operation of a vehicle modified by 
            a third-party with autonomous technology; (b) that it is not 
            the intent of the Legislature to relieve an original equipment 
            manufacturer (OEM) from liability under existing law where the 
            OEM has participated in or facilitated the adaption of the 
            vehicle; and (c) that is not the intent of the Legislature 
            that enactment of relevant provisions of this bill make the 
            conversion of a vehicle a reasonably foreseeable occurrence to 
            the original manufacturer of the vehicle.

          3)Authorizes an autonomous vehicle to operate on public roads 
            if:

             a)   The vehicle is operated by employees, contractors or 
               others designated by the vehicle manufacturer for testing 
               purposes, the driver is seated in the driver's seat and 
               capable of taking control of the vehicle, and the driver 
               has obtained insurance, as specified by regulations to be 
               adopted by the Department of Motor Vehicles (DMV), as 







                                                                  SB 1298
                                                                  Page  2

               required by this bill, in the amount of $5 million, or

             b)   The manufacturer provides various technical, safety and 
               operational information on the vehicle, including that the 
               vehicle allows the operator to take control of the vehicle 
               in multiple manners and without limitation; and 
               certification that the manufacturer has tested the 
               autonomous technology on public roads and has complied with 
               any testing standards established by DMV.

          4)Requires DMV, by January 1, 2014, to adopt regulations, via 
            public hearing and consistent with certain requirements, 
            concerning the submission and approval of an application to 
            operate an autonomous vehicle, and authorizes DMV, in 
            consultation with the California Highway Patrol (CHP), to 
            adopt additional regulations regarding the safe operation of 
            autonomous vehicles on public roads, including regulations 
            concerning the number of vehicles deployed.

          5)Requires an autonomous technology manufacturer to provide 
            written disclosure to the purchaser of a vehicle equipped with 
            such technology that describes information collected by the 
            technology.

          6)States that federal National Highway Traffic Safety 
            Administration standards trump the requirements of this bill 
            when the two conflict. 

           FISCAL EFFECT 

          1)One-time costs of an unknown amount, but likely in excess of 
            $150,000 in 2012-13 to DMV to adopt regulations via a public 
            process (special fund).

          2)One-time cost of an unknown amount, but likely in the tens of 
            thousands of dollars in 2012-13, to the CHP to consult with 
            DMV on regulatory development.

           COMMENTS  

           1)Rationale  .  The author intends this bill to encourage the 
            development, testing and operation of autonomous vehicles on 
            the state's public roads while creating rules to ensure the 
            testing and operation of such vehicles are conducted safely.

           2)Background.   Neither federal regulation nor California law 







                                                                  SB 1298
                                                                  Page  3

            explicitly address the operation of autonomous vehicles on 
            public roadways.  In the past, such an omission in law was not 
            an issue because driverless cars did not exist.  

            There are several efforts underway to make driverless cars a 
            reality.  Perhaps the most well-known is the Google Driverless 
            Car project, in which Google has operated prototype driverless 
            cars on California public roads.  

            To date, no one has made a driverless car commercially 
            available.  Nonetheless, some are concerned driverless 
            technology is outpacing statutory requirements or that a 
            regulatory response will quash driverless car development.   

            Nevada and Florida recently enacted legislation to allow 
            autonomous vehicle operation.  Hawaii, Oklahoma and Arizona 
            are considering such legislation.

           3)Support.   This bill is supported by Google, the Motor and 
            Equipment Manufacturers Association and others who support the 
            continued development of autonomous vehicles and regulations 
            that ensure their safe operation.

           4)Opposition.   As heard in the Assembly Transportation 
            Committee, this bill was opposed by the Alliance of Automobile 
            Manufacturers, Consumer Alert, and Global Automakers, who 
            express concern that autonomous technology added to the 
            vehicles designed for human operation may be drawn into 
            liability litigation upon an accident caused by the failure of 
            the autonomous technology or its installation and that 
            autonomous technology may collect large amounts of consumer 
            data.  It is not clear that the amendments taken in 
            Transportation Committee have removed this opposition.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081