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